Written by: John Bowman, Executive Contributor
Executive Contributors at Brainz Magazine are handpicked and invited to contribute because of their knowledge and valuable insight within their area of expertise.
You’ve likely heard this same startup advice a hundred different ways: “your startup needs to solve one problem really well,” or “you should start by solving one problem for one customer with one unique solution.” The message is always the same: the path to success starts with narrow focus.
Based on my experience coaching entrepreneurs and as a serial entrepreneur myself, I can confidently say that lack of focus is one of the most common startup killers.
Entrepreneurs are typically very excited about their idea! That excitement comes from a sense of the uniqueness, the creativity, and the inherent “rightness” of their solution. The fire of that excitement has gas thrown on it every time someone realizes their solution could help more people than originally imagined, with more than just that one problem, by adding just one or two new features. And just like that, the project’s complexity starts to grow.
There’s no denying that passion and excitement are critical to startup success. However, focusing that excitement will increase a new business’ chances of success by allowing the entrepreneur to
make the most of their limited resources,
to effectively validate and test their ideas, and
to effectively communicate with the people who matter most.
1. Limited Resources
Whether you are a technical founder building a SaaS solution or a solopreneur launching a new coaching business, one thing is certain: your resources are limited. You could have a hundred dollars or a hundred thousand dollars, but those funds won’t last forever. Your time and effort aren’t infinite. The tools and systems you have at your disposal have their limits. As such, it is critical that you make the most of the resources you have, that you use them in ways that create the greatest opportunity for learning and value.
Complexity undermines that efficiency. Research in psychology and neuroscience debunked the myth of effective multitasking long ago. It simply isn’t possible to perform more than one task at a time, and task-switching uses far more time and energy than you expect. The complexity of your project should match (or be less than) your team’s ability to tackle the required tasks with focus and intent.
2. Validation
The Lean Startup by Eric Ries revolutionized entrepreneurial thinking when it was published in 2009. It brought a level of scientific rigour to the process of building new companies, at the heart of which lie validation and testing.
Founders are responsible for identifying which assumptions they are making about their target customers, about their needs, about what they want and about how they are going to use a new (or iterated) product. Experiments must then be run to validate those assumptions.
An effective experiment is one in which a single element is changed while all other factors stay the same so that the effect of that one change can be measured. That means every extra variable adds complexity to the resulting data, and every new uncontrolled factor adds doubt to the interpretation of those results.
By keeping your startup focused on a single, well-defined target customer, and working to solve one problem, you will be able to quickly and clearly:
Understand and test your assumptions about what problem you are solving and who the best people to solve it for are.
Focus your team’s time, money, and energy on tasks that help confirm or invalidate those assumptions as quickly as possible.
Effectively show which changes are or are not working for your customer as you refine and iterate your product or service.
3. Communication
There is a reason the elevator pitch was once so popular with entrepreneurs and investors: it is a simple, clear way to communicate the value of an idea or company in a limited amount of time. Condensing your story into one or two sentences requires you to strip away any (unnecessary) details that complicate or confuse the message.
You may have an extraordinary idea, and an extraordinary team with extraordinary skills, but if you aren’t able to quickly and clearly convey your idea and its value, it doesn’t matter how good the product or service is: you will fail. Startup success requires you to communicate with your ideal customers, articulate the unique value and benefits of your solution, and solve a problem that is important to them. You also need to convince potential investors, partners, and team members that you and your idea are worthwhile.
Having a clear, well-defined description of who you are helping, what specific problem you are solving, and what unique solution you offer means there are no unnecessary details to cut out. It means you can communicate and connect effectively with the people who matter most to your startup’s success. That focus will allow you to serve your customer in a way no one else can, to build recurring revenue, loyalty, and even advocacy.
One Final Note
Narrowing the focus of your new business can feel like you are limiting your market and growth potential. It is worth remembering that the largest companies in the world started out by doing just one thing very well. That one thing isn’t necessarily what those companies are known for or even still doing.
Focusing on one thing now doesn’t mean that’s what you or your company will always do, it means that you are giving your startup a real chance at success so that you can take advantage of more opportunities in the future.
John Bowman, Executive Contributor Brainz Magazine
John Bowman is an ICF-credentialed business startup coach with more than twenty years of international business, startup, and coaching experience. John collaborates with aspiring and early-stage entrepreneurs to identify strategic opportunities and take action to capitalize on those opportunities. He is passionate about helping people bring their entrepreneurial visions to life and creating conditions that foster long-term success.
John's number one priority at all times is the success of his clients!
