Paying attention to Details, its all in the Details

By : Mr.Mufaddal Zakirhusain

Pop Quiz

When starting a business, which is the most important? 1) Be laser focused 2) Develop a detailed plan – and stick to it 3) Raise large amount of capital 4) Hire only A players 5) None of the above 6) All of the Above

Decision Making • Are decisions opinion driven or data driven ?

• Are decisions informed by vision ?

• Is optionality increased or decreased by decisions ?

• Is the right question being asked ?

• How much data is required for knowledge or insight?

• What are the potential outcomes ?

• What is the right acceptable level of risk?

• Does the range of options affect outcomes?

• Are we measuring the right factors?

• How long is our decision loop ?

Key Rules of Measurement • Measurement drives behavior

• Data should drive decision making

• Measure your competitors not just yourself

• Understand your Battlespace

• Data drives knowledge , knowledge drives advantage

• Superior Situational Awareness starts with superior data collection

OODA Loops

• Operate inside your competitors loop by gaining angles

Spirally Developed Strategy Code & Fix

1. Develop a Vision of the Future 2. Check Strategy 3. Select Battleground Market 4. Understand your competitors 5. Generate Tactics 6. Find & Win Lighthouse Customers 7. Adjust with Feedback 8. Dominate the Battlespace 9. Find the next Battleground 10.Repeat steps 2-9 until the war is won 11.Prepare for the next war

Measurement and Feedback Loops

• Benchmark yourself – Time & Resources, Goals and Objectives

• Observe your customers - what are their priorities, requirements and decision process

• Track your competitors – understand their value proposition

• Understand your range of moves – find the one right question to answer

• Plan your move – judo your competitors strength

• Force Action – make competitors play your game

• Review results – learn from failures, pursue success

• Adjust strategy – Be flexible , stay fluid

In the Beginning

Which details Don’t Matter

• Business Plan

• Business Models & Financials

• Work Environment

• Venture Brand

• Capital

Business Plan / Presentation

• The best business plans are “Directional correct”

• Strategy counts more than minutia

• Spirally develop business models

• Slick – Sucks

Business Models & Financials

1. Many of the best startups had fuzzy business models

2. Focus on demand , not monetization

3. Burn vs …Profits, Scale vs ..Margins

4. Worry about the board that stares at spreadsheets

Work Environment

• The performance of a startup is inversely related to the quality of its office

Venture Brand

• Buy Partners not Associates

• Most Venture Funds profits are driven by one or two partners

Capital

• Raise only what you need

• Too much cash makes you fat , dumb and stupid

• No Pain , No Gain

• Desperation drives Innovation

• Capital finds great entrepreneurs and ideas

In the beginning,

Which Details really matter?

1. Vision

2. Product Design

3. Strategic Positioning

4. People

5. Distribution & Adoption

6. Customers

7. Defensible Position

8. Exit Strategies

Vision

• Clarity of Vision – Clarity of purpose

Strategic Positioning

• Define New Markets or Destroy Old Markets

• Don’t evolve or improve

Customers

• Know which customers to avoid, ignore or fire

Defensible Position

• Science • Loyalty • Brand • Layers of Defense

Exit Strategy

• Turn yourself into a sharp knife , find a street fight and throw yourself into the middle

Venture Capital Conventional Wisdom

• Focus , Focus , Focus

• The VC’s job is to reduce Risk

• Bet on the jockey not the horse

• You can never raise enough money

• Concentrate on the financial numbers

• Be realistic

• Hire only A players

The VC’s job is to Reduce Risk

• VC’s job is to increase opportunities and maximize value

Bet on the jockey not the horse

• You need both

Concentrate on the (financial) numbers

• Concentrate on the product and adoption

Be Realistic

Distort Reality

Hire only A players

Final Thoughts

• Spend as much time picking your partners as you would your spouse

• Product rules

• Attack your competitors at their strength

• Never undersetimate your competition

• Push to your failure point

• Never be satisfied