Sometime last year, I found this post by Keith Rabois on Twitter. After reading the tweet 5+ times, I was convinced that it covered almost all the ‘ingredients’ for startup success.
In this piece, I'd try to distill the two main concepts he talked about:
Integrate a fragmented industry.
Build up NPS.
Integrate a fragmented industry: A fragmented industry is one where many companies are still competing for market dominance and no company or groups can claim a strong hold on market share. A good example of this is The taxi industry before Uber.
Build up NPS: NPS stands for Net promoter score.
In a business community I belong to, someone gave a very clear perspective on NPS, better than I even understood it, so I won't bother paraphrasing. He said it is:
"The measure how loyal customers are to a particular company or business.
When a particular company has low NPS, it's easier for new entrants to enter into the industry or market and beat the incumbents
As the names sounds, it also implies how willing such customers are to promote or recommend a particular company's product or service (that they use) voluntarily to others
It shows source of threat to incumbents and that they ought to work to increase customer loyalty by earning it through service.
It shows an opportunity to new entrants, and implies lower barrier to entry and more adoption if they introduce a better product that currently offered by incumbents.”
In summary, all I've said here is: find an industry that has no winner yet, usually, there may no winner because incumbents still haven't found a business model that works perfectly. It's your duty to figure it out. Next build up NPS, this could be through community building, excellent product experience, branding, social engineering etc. Good luck!
Please share this with someone. Till tomorrow.
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