I’ve spent the weekend watching a hockey tournament of seven and eight year olds. What I noticed throughout the games is something every hockey spectator sees: when the players stay in their zone, there is a much better chance of winning. Conversely, when everyone chases the puck (the prize) around, you’re likely to lose.
So what does this have to do with the world of startup companies and business in general? More than you realize.
In 1998, I went to work for a consulting company. My first client was a company providing software that helped online advertisers, portals and producers, depending on which day you spoke with them. Every time they spoke with someone new, they walked out of the meeting with a different product definition and focus. It was so bad that they never launched a website or finished their collateral because they were so concerned if they publicly said what they did, they would lose a sale. As you may have guessed, they never did get many sales. Their saving grace was their timing. By 2000, they had showed their technology to enough people that Excite@Home purchased their technology. A lucky break, but not the growth plans or the financial exit they had dreamed about when they launched the company.
Anyone who has read Al Ries and Jack Trout’s books on marketing and positioning know a pillar of their philosophy is the need to focus. I don’t think the world is as black and white as their teachings imply. If that was the case, The Lego Group would not be making millions of dollars from Lego video games. (Unrelated, if you know the person who came up with that idea, I’d like to shake his/her hand.)
Although I don’t think all of Ries and Trout’s immutable laws totally apply to business-to-business companies, they do in degrees. In today’s technology industry, it is not only a good idea, but necessary for a company to extend its product offerings.
However, this is not a reason or an excuse not to focus. In fact, if you don’t have clear positioning, you won’t be able to effectively modify or incorporate changes. At the same time, a business and product roadmap are essential to ensure your new offering can be sold and positioned along with your current offerings.
When claiming a position in the marketplace, think about your differentiator and real value. Know the difference between a value proposition and a characteristic. Here’s a hint: “easy to use” is never a value; it is a characteristic. No one purchases something because they have always been looking for an easy-to-use interface for their end users. They purchase because they have a need. If you can fill it and it happens to be easy to use so their end users won’t complain about it, all the better.
Here is the ever-so short checklist for focusing:
1) What is your real value? – how does someone really save or make money through your product/solution?
2) What makes you different? – not your aesthetics, but what do you deliver that no one else has?
3) If you want to expand your positioning, does your new offering fit your position in the marketplace? – if not, should you really do this? If you believe the addition is a must, should it be under the same company name?
4) What are you trying to achieve? – if it is only immediate revenue without how to replicate sales, you may make a goal now, but you’ll lose the overall game
Always remember, you must at least try to shoot to score – in other words, don’t spend too much time trying to create the “perfect set-up” so you never get around to actually starting to market. Like everything, your focus will improve with practice.
Continue the conversation by following Kris Bondi on Twitter @kbondi.
Fork In The Road 