Department stores. Computer software. And even education. Products and services are being broken into their atomic units and optimized for price, selection, features and, most importantly, customer satisfaction. This is an inexorable trend that cannot and should not be stopped.
Roger Ehrenberg in a post called “The Great Unbundling”
This unbundling is happening. But I’m not convinced it’s every consumer’s desire to consume media or purchase clothing a la carte. Or that this is the end state of commerce. Instead, the future is a ...
Last week I wrote about the importance of a financial plan for startups at every stage. It’s a challenge to balance the predictability the board requests and the ambition the company wants.
Often, as startups grow, they adopt two plans: a board plan and a company plan. By creating two plans and presenting each to the right audience, founders can communicate and motivate their teams effectively.
The board plan is the more conservative of the two. Typically, the founding/management team has a high degree ...
Over lunch last week, I asked a Redpoint entrepreneur, who had recently sold his company, how his board could have been more helpful to him. His answer surprised me.
He wished the company had built a financial/operational plan sooner.
Building an financial plan is challenging and it is often perceived as a waste of time because the plan can be so inaccurate. Lots of entrepreneurs tell me their plans are just WAGs - wild assed guesses. And to some degree they are.
But, in the words of this ...
When building a freemium SaaS company or an ecommerce company or any product that requires users to move through a funnel towards an objective, it’s important to track this funnel to understand where the funnel can be improved.
But tracking one funnel may not be enough. The aggregated funnel may be masking conversion differences across customers segments. For example, at Expensify conversion rates to paid vary quite a bit across customer size. But the total conversion-to-paid rate hides these nuances.
It’s critical to understand each segment well. For each, ...
Great products are like ducks. They are calm above the water but paddling furiously below the water. An entrepreneur told me this quip last week and I think it had great wisdom in it.
In other words great products are graceful. They make something complex look effortless.
Great athletes are the same. So are great dancers. And even great entrepreneurs.
The secret within this aphorism is that success is a grind. It is hard work.