They [Y Combinator] talk a lot about focusing heavily on the product, as opposed to marketing it. I at least get the impression from them that making something people want is what it’s all about, and that if you manage to do so, you’ll have success.
Well, it’s an important fact that most startups fail by not making something people want, so “make something people want” is the best 4-word advice, but you also need a customer acquisition mechanism and it can be fatal if you can’t find one.
In fact I think difficulty with customer acquisition, i.e. customer acquisition costs tanking the business’s unit economics, is the second biggest startup killer after not making something people want.
Paul Graham made the point that these days when you want to judge a startup idea, you’re actually judging the idea pair (what you’re doing that people want, how you acquire customers).
Paul Graham made the point that these days when you want to judge a startup idea, you’re actually judging the idea pair (what you’re doing that people want, how you acquire customers).
Huh, I didn’t realize that. Thanks for pointing it out. I read most of his essays, and a lot of YCs stuff more generally, but I don’t recall much talk about customer acquisition. Anything come to mind that you can link me to?
Well, it’s an important fact that most startups fail by not making something people want, so “make something people want” is the best 4-word advice, but you also need a customer acquisition mechanism and it can be fatal if you can’t find one.
In fact I think difficulty with customer acquisition, i.e. customer acquisition costs tanking the business’s unit economics, is the second biggest startup killer after not making something people want.
Paul Graham made the point that these days when you want to judge a startup idea, you’re actually judging the idea pair (what you’re doing that people want, how you acquire customers).
Huh, I didn’t realize that. Thanks for pointing it out. I read most of his essays, and a lot of YCs stuff more generally, but I don’t recall much talk about customer acquisition. Anything come to mind that you can link me to?
http://www.paulgraham.com/ds.html
Tons of amazingly insightful points packed into a small essay. I was paraphrasing the “Vector” section.
Another good concept from that post is the “Collison Installation”. I also like to call it manhandling your traction.
Thanks! Yup, I definitely misunderstood YC’s message. I’m glad we talked this through.