The 10x rule 🌟 Why better is not enough

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The 10x rule 🌟 Why better is not enough
Having a superior solution is not good enough.
The special barriers startups face force you to build at least ten times better products.
Why Your Startup Needs to Be 10x Better
In this episode of 'Feel the Boot', host Lance Cottrell breaks down why startups need to be substantially better than their competition, particularly in the B2B context.
He explains the elements such as the high cost of switching, the immaturity of a startup product, and the typical risk of a startup failing, that force a startup to deliver a solution ten times better than the competitors.
Read the article ftb.bz/99B
Listen to the podcast ftb.bz/Podcast
See the rest of the Founder Insights ftb.bz/Insight
Schedule advising with me ftb.bz/advising
00:00 Introduction to the 10X Rule in Startups
01:34 Why Being Just 'Better' Isn't Enough
02:43 Understanding Switching Costs
03:37 Challenges of an Immature Solution
04:52 The Reality of Startup Failure
06:36 Conclusion and Next Steps
Lance Cottrell has been an active startup advisor and startup mentor for over a decade.
He has helped countless startups navigate the key decisions of their journey, like when to take venture capital investment and negotiating term sheets.
He works with many companies in accelerators like Y Combinator and Founder Institute.
He provides help with startup funding including raising venture capital and angel investment.
He can help you achieve liquidity for your company at a high valuation.
Feel the Boot is a startup vlog of tips and advice for early-stage founders.

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Опубликовано:

8 июл 2024

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Комментарии : 15

@FeeltheBoot 7 месяцев назад

If you want to talk with Lance about your startup, there are a few options here ftb.bz/advising

@christianburke418 4 месяца назад

These VCs are tough customers, but they are also very logical. I would certainly like to see an example of a 10x company. I also feel blessed that I don't need a VC at this time. Months from now, I will be assembling 1 system a day out of my three-car garage for a profit of $500,000 a year. With the first years profit I will hire 5 employees so that I can produce 10 a day for a profit of $5,00,0000, and then move up from there. Unfortunately, at the moment I am making a lot of little adjustments to the manufacturing process, so that I can ship a nice, sweet machine. I would like to be the start-up that no one saw coming. SphereMotor, the future of electricity.

@FeeltheBoot 4 месяца назад

Some examples of 10x companies (when they were starting) might be: Apple iPhone Apple iTunes/iPod AirBNB Ford Amazon Google Tesla Uber Netflix I would love to hear some other examples!

@christianburke418 4 месяца назад

@@FeeltheBoot These are great example of 10x companies, the only problem is that they took a while to get there. Also, with all the investments out there, landing on one of these companies is like hitting the lottery.

@FeeltheBoot 4 месяца назад

@@christianburke418 You are correct that they usually take years to hit major success. However, all of those could make a strong case for why they had a huge advantage over the incumbents. I know that for every 10 of those I back, I am lucky to get one big win, but that one has the potential to be life-changing for even a small investment.

@christianburke418 4 месяца назад

@@FeeltheBoot Corporations like Facebook, Amazon, Uber and many others owe their success to their partnership with Google. Google gives them preference on the search engines. As for Apple, the Iphone was invented by a guy that most people have never heard of. The Iphone has been a real game changer for Apple.

@GardenerEarthGuy 7 месяцев назад

I have a Florida Pest Control Operator License for Lawn & Ornamental- it's not an easy state license to hold and allows one to start a lawn spray business. How can I network with investors?

@FeeltheBoot 7 месяцев назад

It is not difficult to find angel investors online through LinkedIn, Signal, Crunchbase, AngelList, and such. The question is whether your business is appropriate for that kind of investment. Do you have a realistic plan to grow to at least $100m annual revenue within 7 years? If not, then you might be a fit for other kinds of investment, but not typical angel/VC.

@GardenerEarthGuy 7 месяцев назад

@@FeeltheBoot More like one million- where does one find an investor/partner for something small? Thank you for listening.

@FeeltheBoot 7 месяцев назад

@@GardenerEarthGuy At that size, you are better off looking for a partner (usually through personal networking) or a small business loan.

@GardenerEarthGuy 7 месяцев назад

@@FeeltheBoot thank you for your time

@mob_pho 7 месяцев назад

x10 is too high. Wrong theory. Realistically was Facebook 1.5x 2x 5x or 10x better than MySpace? If you look at old comparison videos, it was almost even - 1.1x The sub points you make, I agree with though.

@FeeltheBoot 7 месяцев назад

As I mentioned in the episode, this applies primarily to B2B sales more than consumer services. The cost of trying a new free social media platform is extremely low. However, Facebook had some strategic approaches that made it far more valuable to its early users than MySpace. They did a great job of ensuring each university had a high enough density of users before they were allowed on the platform.

@mob_pho 7 месяцев назад

@@FeeltheBoot 👍 I did not understand your last sentence. If they were users, that means they were already on the platform. Do you mean potential users? Do you mean before expanding to other universities or the public?

@FeeltheBoot 7 месяцев назад

I could have written that more clearly. 🤓 I was not a user in the early days, but as I understand, their strategy was to allow active users at one university to invite people at other universities that were not yet active on the platform. Facebook would not enable all the pending accounts at a university until some fraction had already accepted invitations. I think it was something like 50%. That ensured a robust number of friends already on the platform when your account was activated.