| ▲ | brap 3 hours ago |
| We keep seeing this. If you had to point out the fundamental problem, what would it be? I think it’s the disconnect. Each persona is an expert in their own field but is completely oblivious to other critical areas. The founder knows how to raise money but doesn’t really understand the customers. The engineer knows the tech but doesn’t really understand what it takes to keep the business afloat. The salesperson knows what customers want but doesn’t really understand what’s possible to make. The investor knows the numbers but doesn’t really understand how poorly the business is run. I suspect if you look at successful startups you’ll often see a very small (1-3) group of founders who are very close, each can do more than one thing really well, and their combined expertise means that together they have very few blindspots. |
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| ▲ | red_admiral 3 hours ago | parent | next [-] |
| To me, the fundamental problem is what Paul Graham pointed out here: https://www.paulgraham.com/startupideas.html "The way to get startup ideas is not to try to think of startup ideas. It's to look for problems, preferably problems you have yourself. Why do so many founders build things no one wants? Because they begin by trying to think of startup ideas. That m.o. is doubly dangerous: it doesn't merely yield few good ideas; it yields bad ideas that sound plausible enough to fool you into working on them." Finding a problem _you have yourself_ also increases the chance that you understand the problem space. |
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| ▲ | whstl 2 hours ago | parent | next [-] | | I dunno, going back to the article, at some point customers are getting exactly what they're asking for: "their kitchens are custom-built, so they need ovens with specific dimensions. Oh, and a rotating base like the one they already have." “My oven at home connects to the fireplace. Does yours?” “I make a lot of wedding cakes, what have you got for me?” “Do you have a Ramadan mode?” Those are all problems. But are they problems worth spending time? I dunno. | | |
| ▲ | gmueckl 10 minutes ago | parent | next [-] | | A lot pf good products are a combination of features that customers need and use and features they think they need and ask for, but never use. But the sales wouldn't be as good without them. It's a bit comical once it becomes apparent, but it is a widespread pattern. | |
| ▲ | singron 2 hours ago | parent | prev | next [-] | | Pre-purchase, the customers are just looking at lists of features. Post-purchase, they realize the ovens burn bread and cake 10% of the time and pizza 100% of the time, and they just want a good working oven that doesn't burn food. It seems like most customers are returning the oven, which would normally be an extremely strong signal that there is a quality problem. In the SaaS world, the equivalent would be churn, but it's not always as straightforward since if users quit before they sign up (e.g. by reading a review or using a free trial), then they don't show up in that metric. | |
| ▲ | dijksterhuis 2 hours ago | parent | prev | next [-] | | > But are they problems worth spending time? They're not problems people need solved. They're problems people think they want solved. need != want. the high street bakers needed reliability with improved efficiency at an affordable price (cost of risk). they didn't need improved efficiency, less reliability and still really expensive. | |
| ▲ | andyfilms1 2 hours ago | parent | prev [-] | | The key difference is the founder built a product in search of a problem to solve, rather than the other way around. The "secret" is just to talk to people in the field they're trying to "revolutionize," and ideally observe them work. Often, people become blind to workflow problems and workarounds become normal process. They never even consider to look for a better way to do something. Those are the opportunities for founders to solve. But what I've seen a lot is founders just arbitrarily coming up with an idea that sounds cool on paper, raising money, and only realizing too late that there is zero actual market fit. |
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| ▲ | __MatrixMan__ 3 hours ago | parent | prev | next [-] | | ...which is why none of the best software is a product or a service. The best software is always a tool, made by people who have a problem for people who have that problem. Occasionally the business types come along and make it worse by turning it into a product or a service. Other times they make bad products and bad services from scratch. The people in this story are focusing at the wrong layer (as are many of us). They need to stop trying to sell ovens and start trying to sell baked goods. Maybe once they're good at that, they can also sell whatever oven they came up with along the way. | |
| ▲ | paulryanrogers 3 hours ago | parent | prev [-] | | > Finding a problem _you have yourself_ also increases the chance that you understand the problem space. If most founders are wealthy, or even reasonably comfortable, it's possible they're too out of touch to identify a problem shared by enough people. | | |
| ▲ | christina97 an hour ago | parent | next [-] | | This may apply to B2C firms, but B2B firms are more likely to be run by people similar to them. | |
| ▲ | __MatrixMan__ 2 hours ago | parent | prev | next [-] | | Which is why income inequality is so insidious. The more successful your rich people are the less effective they become. | |
| ▲ | teiferer 2 hours ago | parent | prev [-] | | Depends what kind of market you are going after. Mass market for end users, sure, your argument applies. But there are lots of other types too. | | |
| ▲ | willturman an hour ago | parent [-] | | > Enterprise sales isn’t about ovens. The handshake comes first. The requirements come later. |
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| ▲ | terminalbraid 3 hours ago | parent | prev | next [-] |
| > The engineer knows the tech but doesn’t really understand what it takes to keep the business afloat. This is assuming there IS a way to keep the business afloat. It's this framing of thinking that has caused more suffering, frustration, and bad will in all the places I've worked at which are just reskins of this article. A business is entitled to it's model but it is not entitled to success. This story which is more than just a strawman or anecdote gets it right: The engineers are doing their job the best they can with unreasonable expectations set by people who do not feel they need to be constrained by reality and just have dollar signs in their eyes. The engineers do not share the same type of blame as everyone else at the company. Their failure was enabling nonsense and greed. |
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| ▲ | icedchai an hour ago | parent [-] | | Yep. I've worked at a couple startups where engineering built a thing, sales was able to sell it but had to give a huge discount. The resulting economics just didn't work. But, each sale was seen on its own as a success even though the generally lost money. Often there was a discount plus some promised bespoke feature that required additional development to close the sale. There was never enough volume and often that additional engineering work never applied to another customer. Nobody wants to say "maybe this deal just isn't worth making" and move on. In a couple of these cases, the company was ultimately sold in a fire sale. The early investors, founders, and employees got nothing. The acquisition is still celebrated as a "success", of course. |
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| ▲ | msteffen 3 hours ago | parent | prev | next [-] |
| I read somewhere that almost every very successful person’s results can be attributed to 2-3 tricks that they consistently apply to great effect. With Elon, I think one of his is “build it as cheaply as possible, and then you can afford to only sell to people who are purely excited about the tech.” I don’t know when he learned this (I actually wonder if it was a lesson he learned from Eberhard/Tarpenning at Tesla, who were only selling the roadster to sports car enthusiasts who cared more about 0-60 than fit & finish, or range, or cost, or anything else). Anyway, my current interpretation is that the pizza guys shouldn’t have sold to pepepizza (or friends and family, probably). I know startups do this all the time, but whenever I’ve seen it, it always seems to turn into a distraction from the Big Idea that is the company’s thesis. Then Big Customer gets hung up on ancillary requirements and Cool Startup doesn’t really get to test their thesis at all. Maybe the key is to stay small, focus on finding people who really care about the new oven tech, and size the company to that market until you’ve solved enough problems to expand to people for whom the cool tech is concern #2 or #3. |
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| ▲ | ryandrake 12 minutes ago | parent | next [-] | | Every startup/SmallCo I worked for seemed to fall into this trap. Sales finally finds a BigCustomer, and the company instantly transforms from a product company into a custom engineering contractor for BigCustomer. We're no longer building our own product vision: We're cramming everything BigCustomer is asking for while they hold a carrot tied to a stick in front of us. We no longer have a general product that can be sold to anyone. We have BigCustomer's wish list and they still haven't bought more than a handful of units. | |
| ▲ | felix-the-cat an hour ago | parent | prev [-] | | > I read somewhere that almost every very successful person’s results can be attributed to 2-3 tricks that they consistently apply to great effect. This entirely. I've been CTO at a handful of startups, most recently one that sold for a very large sum of money — and the successful ones are almost always led by people who keep things dirt simple: focus on the customer, execute quickly, communicate clearly, keep costs low, and keep the technology simple. That's basically it. Just a few simple things, applied relentlessly. The ones that failed were always the total opposite — not listening to their customers, poor communication across the org, blowing their runway on "we need Google-scale infrastructure," switching languages or frameworks halfway through the project, and so on. |
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| ▲ | eapressoandcats 15 minutes ago | parent | prev | next [-] |
| It seems to start with the fact that the founder doesn’t understand the business domain at all: How do people actually buy ovens?
What actually matters for customers, not what do they say matters?
Who are the competitors and why do you think you can actually do better than them in at least some niche?
What culture actually works for an oven producing company? |
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| ▲ | __alexs 2 hours ago | parent | prev | next [-] |
| The problem is that people are not listening to each other. Part of this is just working together is hard, but a bigger part is that there is status associated with being "in charge" of things as founder. The desire to feel like you are controlling the outcome and people need to take instruction and direction from you rather than working together to find a path through the forest. |
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| ▲ | ranyume 3 hours ago | parent | prev | next [-] |
| Your solution is to fire CEOs, shareholders and only make employee-owned businesses? I mean I'm on board. |
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| ▲ | dexterdog 3 hours ago | parent | next [-] | | Sounds great until a hard decision has to be made. | | | |
| ▲ | mpyne 3 hours ago | parent | prev | next [-] | | Nothing is stopping employees from banding together to create these obviously-superior businesses right now and eating the VCs' lunch. Right? | | |
| ▲ | whstl an hour ago | parent [-] | | This is incorrect. Concentration of wealth is definitely stopping them. Most people can’t just stop working and start working for no cash. I might be missing some obvious sarcasm, though! |
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| ▲ | singpolyma3 3 hours ago | parent | prev [-] | | CEOs are employees... | | |
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| ▲ | post-it an hour ago | parent | prev | next [-] |
| The fundamental problem is that reality has a surprising level of detail (as described in an article by the same name). The founder is the same kind of guy that believes the government should just get rid of inefficiencies. |
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| ▲ | lsaret1257 3 hours ago | parent | prev | next [-] |
| Isn’t a large part of fundamental problem the lack of clarity and mental discipline to stay focused on MVP and if it’s clear it’s necessary then pivot but still stay focused? It seems clear to me that real problem is lack of focus and discipline. |
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| ▲ | gedy 2 hours ago | parent [-] | | Yes, but the subtle issue I've seen in companies is "MVP" easily ends up interpreted as: "add this one small thing since it's quick and easy to implement". Then before they know it you've got this mousetrap-like product that goes in all sorts of directions. |
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| ▲ | stickfigure 2 hours ago | parent | prev | next [-] |
| Balance the power between business, engineering, and sales. I suspect this is at least partially why PG likes founders with an even equity split. |
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| ▲ | charm137 2 hours ago | parent | prev [-] |
| There are two fundamental problems: one is the inability to admit mistakes and shed the false aura of omniscience in front of customers, investors or employees. The second (almost a corollary of the first) is overpromising and, as a result, underdelivering because those who face the customers/investors want to appear infallible. |