Matt's Recipe for Startups

I do not claim that this is a new recipe, but one of my belief's is that people (mostly me) place too much emphasis on "new" while thinking about startups and not enough focus on solving people's problems. The goal is not to do something that nobody has ever thought of, but to find a meaningful problem that you can help people overcome. Somebody has thought of pretty much everything, and pushing further into the unknown is generally unadviseable unless you have some deep pockets with a massive timeline financing you.

With no claim of novelty, here is my recipe:

1) find meaningful problem (meaning = big problem for few people OR little problem for many people)
2) do as little work as humanly possible to build a solution for the problem
3) validate that your solution addresses the problem with actual customers
4) repeat (but finding and solving a more meaningful problem with each iteration)

I will go on the record as saying this: if nobody has thought of your idea, it probably sucks. I am not wed to my recipe, but I do believe that it is important to overcome this harmful belief that you have to be in unchartered territory to build something meaningful.

Some interesting articles...

Innovating on New Business Models 1/6/2010 07:44 PM

"In the quest to come up with the next great product, many businesses ignore a possibly even greater source of differentiation--the next great business model." http://www.forbes.com/2009/12/18/innovation-business-model-leadership-managing-products.html?partner=msn​

Does your company innovate with business models? What percentage of your company's revenue comes from ventures started in the last 20% of your company's life?

Unshackling Employees 1/13/2010 09:11 AM

http://blogs.wsj.com/management/2009/08/07/unshackling-employees/?mod=rss_WSJBlog

"…humanity’s most adaptable social system—democracies and markets—are those that extend the greatest freedom to their constituents. In a democracy, you don’t need anyone’s permission to form a new political party, publish a politically charged article, or organize a “tea party.” And in open markets, individuals are free to buy and invest as they see fit. When compared to the typical corporate leviathan, these systems are remarkably under-managed."

Reading List 1/13/2010 09:15 AM

Three books that have affected me deeply are Art of the Start by Guy Kawasaki, Discover your Strengths by Marcus Buckingham, and Orbiting the Giant Hairball by Gordon MacKenzie.

Failure and Innovation 1/17/2010 03:38 PM

http://www.fastcompany.com/blog/valeria-maltoni/customer-conversation/innovation-and-failure
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You Cannot Analyze Your Way to Innovation 1/17/2010 03:42 PM

"This is a fascinating time, and there's an interesting battle coming. One of these smallish design firms might combine the best of the analytical from the business world and the best intuitive thinking from the design world and become gigantic. There would be massive traction for it. It wouldn't be the first time that a little company in a garage saw things differently."

http://www.fastcompany.com/blog/linda-tischler/design-times/whats-thwarting-american-innovation-too-much-science-says-roger-mar?nav=inform-rl​

Writing Business Plans 1/19/2010 12:05 PM

Video from GSB:

http://www.youtube.com/user/stanfordbusiness#p/search/0/yG6_6UbprFw

For some great podcasts, check out their ecorner:

http://ecorner.stanford.edu/podcasts.html​

Why experiment? 1/21/2010 05:18 PM

http://www.businessweek.com/print/innovate/content/dec2009/id2009122_190843.htm​

I wish I could write like this:

"It is no longer about displaying a screen shot to gauge input on a new UI layout. Rather, it's about demonstrating a willingness to experiment in the first place and then providing a vehicle to experiment with the value proposition itself and the business model that enables it."

What is a business model 1/28/2010 03:06 PM

http://blogs.hbr.org/cs/2010/01/is_your_business_model_a_myste_1.html


Why would someone want to buy something from you?
How will you make money selling it?
What, exactly, are the important things you need to do to pull off the plan?
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Straight from the horse's mouth 2/11/2010 11:49 AM

Jason Fried, the guy behind 37 signals, the company behind ruby on rails, dishes out some wisdom in a fun video.

Have a great idea, break it in half.
Putting a price on something forces you to make it good.

http://bigthink.com/jasonfried
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What really matters 2/11/2010 05:06 PM

http://www.scribd.com/doc/23639635/What-Really-Matters-When-Starting-a-Consumer-Internet-Company

According to a little overnight success called Scribd. ​

Bob Parson's Rules 2/15/2010 07:06 PM

So, the guy who brought you the godaddy commercials is an interesting character. Former Marine, part geek part purveyor of business porn, he has figured out how to win in a commodity marketplace. Check out his rules at:

http://www.godaddymobile.com/Entertainment/Bobs16Rules.aspx?ci=17135&isc=gda224x&cookiecheck=1&isc=gda224x ​

MORE intelligence from Bob Parson's 2/18/2010 10:23 AM

I am not sure if I am merely delluded by the...marketing strategy of this man, but he makes more sense to me than most. Check out this video (not sure if it is safe for work...but GO FOR IT).

http://www.bobparsons.me/index.php?ci=14968&id=-1&targetGuid=b18d3b48-19c1-47bf-accf-f0fbe8123be0 ​

Rise of the Innovation Ninja 2/23/2010 04:50 PM

http://www.ideachampions.com/weblogs/archives/2010/02/_every_once_in.shtml​

Be Lucky 3/1/2010 02:39 PM

I have no idea where this article came from (Ross?), but it is great.

http://www.telegraph.co.uk/technology/3304496/Be-lucky-its-an-easy-skill-to-learn.html

Enjoy, and be lucky.

Matt
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P&L for Newbies 3/16/2010 02:54 PM

http://www.businessinsider.com/the-profit-and-loss-statement-2010-3

Fred Wilson is a VC and is a big name in the startup world. He provided this dumbed down explanation for P&L that can help people outside of the business world understand what people inside the business world care about. ​