The BIG company scene: Paperwork, cubicles and months of progress hindered by meetings and bureaucracy. Decisions are eventually made in the glory of making someone with a cash interest smile. There are many software companies that have grown into a Pizza the Hut creature oozing with some vile inability to serve the needs of the market.
So, in a coffee shop at a Seattle 2.0 event or some other place of inspiration an idea is born with a group of talented people willing to take on the pizza monster. They build their product into the night, often fueled by Mountain Dew and Sour Patch Kids, until they are ready to launch or in other words – “With his sling ready, he went out to meet Goliath.”
What Big Companies Do:
Develop new solutions that expand on what they have
Sell pretty much anything (even crap) into accounts where they have an existing relationship
What BIG Companies Can’t Do:
Make investments in new products at the expense of quarterly revenue
Sell stuff into accounts where they don’t have sales coverage
Misperceptions BIG companies Have About Startups:
They do not believe a startup could out-execute them, even in a niche
They do not believe that startup products with far fewer features but a radically improved customer experience can win
TKO WIN for David – The Startup
Two Ears – One Mouth:
Successful startups know that listening to their market creates relationships, which then creates traction; the golden key for success. Social media, email and even cell phones have shaped the way communication happens giving nimble startups a chance to engage with customers at lightening speed. A tweet to test the market’s reception to new features and ideas is pretty fancy indeed!
Customized Customer Experience:
The product doesn’t have reflect the back-bending customer experience of Starbucks: “Tripple Ristretto, two splashes of hazelnut syrup extra foam latte, extra hot with cinnamon sprinkled on the top, two straws and double sleeves …” However, startups automatically get the ace of product flexibility as they are typically small, nimble and have developed close relationships with their customers.
“The importance of using technology to understanding your customers and deliver a personalized experience …” – Venture Blog
Big companies often cast huge nets and try to make new features that are generic, adding onto a product that was onetime specific to the behaviors of the targeted customer. Staying course in a niche market means the product will be tailored to fit and provide solutions to specific problems. In other words, startups can design and sell band-aids while big companies sell and convince customers they need full body casts.
Rockstar Loyal Customers & Evangelists
Startup teams create relationships with their customers, those customers often feel as if they are part of the team. Feedback is given freely and the relationship turns a target market customer into an evangelist for the startup.
And so, “He reached into his bag and took out a stone, which he slung at Goliath. It hit him on the forehead and Goliath fell face downward on the ground.” BAM! Go startups!