The Entrepreneur’s 2nd Step – 8 Things That Happen When Your 2nd Step is RightSeptember 5, 2016
Marc Andreessen: Prepare Your Mind…September 15, 2016
How do you know if your idea is world changing awesome, just good, or downright bad. One way I vet initial ideas before diving in to the details is to understand the basic market/problem/risk dynamics right at the start.
If you draw a 2×2 matrix for new products. …And on the x-axis you label it, consensus versus non-consensus. And on the y-axis you label it, successful vs failure. The world changing massive money making happens in the successful and non-consensus quadrant. … This is where Home Runs live. Think Google, Facebook, Slack, Uber, Airbnb and the like.
Good businesses that are singles and doubles can live in the successful and consensus quadrant. These can be solid growing, profitable businesses that ultimately succeed by executing better than the competition. Their “Home Run” potential is gone because if something is already consensus, then money and talent will have already flooded in and competition for the profit opportunity will be high. This is where 99.9% of all successful companies live.
So, if you if you're a smart entrepreneur and you’re doing it right, you know your play. Are you in the Home Run quadrant or Singles and Doubles? Once you know, you build, hire, raise capital in line with your play.
If you’re wondering where you land in this matrix and want to talk it through a bit I’m more than happy to hop on a call with you. You can grab time on my calendar here