Welcome to the concluding letter of my “How to Start a Startup” mini-series! Today, we’ll focus on the crucial aspect of building a product.
While this discussion chiefly applies to the software realm, many principles are universally applicable to any product.
Remember, the most important factor isn’t simply the idea; it’s you. A good entrepreneur can improve a mediocre concept, while a poor one will struggle regardless of the brilliance of their idea.
You’ve likely heard the advice to invest in yourself repeatedly, and it’s vital. So, if you’re ready, let’s dive into the essential steps for creating a product.
Why Is a Product Important?
A product is your gateway to establishing a business, provided enough people find value in it or are willing to pay for it. But how do you create a product that transforms into a successful business? Here are some guiding principles.
1. Build Frequently
To develop a successful product, you must create several. Look at Mark Zuckerberg, who said:
“I had this hobby of just building these little projects. I had like twelve projects that year [2003]. Most of them were about seeing how people were connected through mutual references.”
For those interested in software, coding is a vital skill. With the ability to build, you can quickly bring your ideas to life rather than relying on others.
What should you be building?
- Something for enjoyment.
- A solution to a problem, like how Drew Houston built Dropbox because he kept forgetting his thumb drive.
Paul Graham wisely noted: “If you’re unsure what to do, just create something.”
2. Create What People Desire
This is a core philosophy at Y Combinator: focus on making what users want. Initially, concentrate on understanding your users deeply.
To clarify, this may sound like principles from the Lean Startup methodology but differs significantly. Most prominent startup founders don’t rely solely on customer feedback but instead solve problems innovatively.
Think From First Principles
Rather than relying on analogy when addressing an issue, dissect it:
Example:
- Problem: It’s 1908; people need faster transport.
- Solution 1 (analogy): We should raise faster horses to meet the demand.
- Solution 2 (first principles): I’m Henry Ford. Instead of improving horses, why not create a better alternative with an internal combustion engine?
Don’t ask potential customers what they want; instead, provide solutions they haven’t envisioned yet.
3. Build for Yourself
The organic method promotes creating a product you yourself would want. Ask, “What problem do I wish someone would solve?”
Stephen Wozniak wanted a great computer, which sparked what became Apple. Similarly, Steve Jobs envisioned the iPhone that he wanted to use.
4. Cater to Others
While creating for yourself is easier, you may want to address the needs of others. Understand how they currently tackle problems and offer improved solutions.
One effective strategy is to convert luxuries into commodities. Historically, cars and computers started as luxury items until they became accessible to the masses.
5. Start Small
Avoid “The Big Launch” strategy at all costs!
Successful startups have humble beginnings:
- Apple sold only 200 Apple I’s to start.
- Facebook began as a platform for Harvard students.
- Uber started with just one black car.
Determine a small target audience and dominate that niche. Expand gradually after achieving initial success.
6. Launch Quickly
Expect that your first iteration won’t be perfect. It’s essential to acknowledge that mistakes will happen, and you’ll require user input.
Introduce a minimal version as soon as possible, allowing room for iterative improvements.
Paul Graham advises: “Your initial plans will almost certainly have flaws, and you’ll discover more by attempting to execute them.”
7. Recruit Users Personally
When initially attracting users, avoid costly marketing methods. Instead, engage directly to understand your audience better.
“Getting up from your computer to find users is hard work, but it significantly boosts your chances of success,” Graham reminds us.
8. Iterate
Congratulations on launching your product! Now, observe user behavior meticulously. What features do they embrace? What aspects frustrate them?
A relevant story: In 2010, Stanford students initiated a social app called Burbn. They shifted focus after realizing users loved the photo-sharing feature, ultimately creating Instagram.
Most startups evolve significantly from their original concept, and the true value of an initial idea is discovering what truly resonates with users.
9. Delight Your Users
What’s your end goal? To create a product that users adore.
Kevin Kelly’s concept of “1,000 true fans” suggests that having a small, passionate audience is far more valuable than a large indifferent one.
How to earn love from your users?
- Provide exceptional customer service.
- Include delightful surprises or “Easter Eggs.”
- Prioritize beautiful and intuitive design.
Ultimately, the goal is to ensure your initial users feel that joining your venture was one of the best decisions they’ve made.
Once you’ve achieved this level of engagement, you’re well on your path to building a thriving business.
In Conclusion
Today, we covered essential approaches for product development:
- Build frequently.
- Focus on user desires.
- Launch swiftly.
- Recruit personally.
- Iterate prudently.
- Aim to wow your users with love.
That’s all for today!
Let me know if you have any other requests or need further adjustments!