Criteria For a Successful Startup

July 30th, 2010 § 2 comments § permalink

Every successful entrepreneur has his own criteria for measuring the success factor of an idea for starting a business. There is also value in studying how others make decisions. Norm Brodsky, a veteran entrepreneur who founded and built half a dozen large companies, uses a simple approach when starting a business.

According to Brodsky, three factors must be at play when venturing out:

An Established Concept

Education can be expensive. Educating the masses can be really expensive, not to mention a daunting task for a business to undertake. Stick with something people are familiar with.

Focusing on an established concept does not lessen your ability to create innovative and revolutionary products. Take Apple for example. They’ve been doing the same thing since day one – developing technology that is intuitively simple, functional and beautiful. The iPad, the iPhone, the Touch – these are all familiar devices. The market does not need a crashcourse on what these devices are and what they do. Yet, they are truly remarkable products that challenge our accepted perception of what technology is able to do, how it’s able to do it – and its aesthetics. Human-centered design has been around for centuries, yet Apple continues to push the envelope.

Takeaway – Instead of painfully searching for the “next big wow thing”, identify a familiar or understood industry/product and build upon it. Just look at what Aaron Patzer did with mint.com – genius!

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Mediocrity Fears Excellence

July 9th, 2010 § 1 comment § permalink

Mediocrity is intimidated by that which is better. Mediocrity does not strive for improvement. Mediocrity does not believe in change. Mediocrity loves the comfortable. Mediocrity attempts to silence the more excellent. But the best will always rise to the top.

The future belongs to those that trample over mediocrity.

We Need More Forms, Hoops & Procedures; How to Kill Your Business the Bittersweet Way

July 1st, 2010 § 0 comments § permalink

A simple theory of input-output in economics states that as more resources are added (the input) such as staff, raw material, time and technology, then productivity (the output) will increase as well.

There does come a tipping point when the production curve makes a downward dash. As input is increased beyond the tipping point, it will begin have an adverse effect on productivity, causing production to decrease quantitatively and qualitatively.

If 5 workers are assigned to lay shingles on a roof of a single-family home, they will get the job done much quicker than with 2 workers. If 20 workers were assigned to the same project, productivity would decrease as communication becomes more complex, task assignment is unaccounted for, worker mobility is limited, etc.

The same holds true in any other system and context.

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