Work ON your business, not IN your business

There is always something to do in your day to day business. Your mobile rings, an urgent email comes in, your computer proposes some updates, you have to hunt a non paying customer, the printer refuses to work, you have to answer an urgent RFP, your accountant needs some information from you, you urgently need to clean up your desk and there are some unopened letters waiting for you.

It’s tempting to be absorbed in the day to day rush. Especially if it’s your company. Even with an army of employees that know their job really good, it’s still very very tempting to dive into your business. At the end, you know best, don’t you? You founded this company, so you are a pro in every aspect of your company. You know best how to bake the bread, serve the meal, write the code or repair the engine.

Eh eh. You shouldn’t.

If you did start up a company in order to work into it, then why the hell did you start up a company? You are much better off as an employee in that case. No risk, no worries at night, no cash flow to monitor, no upset customers and no payroll. Just bake the bread, serve the meal, write the code or repair the engine. And that’s perfectly fine if that is what drives you. If you want to work in a company, never start up one, go work into an existing one.

If you start up a company, you should work on it. Not in it. Working on your business like: growing your business. Marketing. Monitoring cash flow. Bookkeeping. Differentiation. Taking a step backwards and rethinking your business. Blogging. Trying out new ideas. Calling customers for feedback. Hiring top talent. Updating your website. Improving on a day to day basis. Changing your products in this changing world. Taking risks. Setting up procedures. Speaking on conferences. Cold calling. Traveling. Analyzing new opportunities. All of that. But please, don’t bake bread whole day!

HOW TO PREVENT YOU, FOUNDER, FROM WORKING IN YOUR BUSINESS, IN STEAD OF ON YOUR BUSINESS?

Simple. Act as if you are a 100 times bigger. Are you a startup with 2 people +  yourself? Then act as if you are 200. It’s very very very tempting to bake bread all day with those 2 people. But if you do so, you’ll remain exactly that: a company of 2 + 1. If the 3 of you bake break, nobody is growing your business. If you act as if you are 200 people, eventually, you’ll grow to 200 people. You can help 2 people, but you can’t help 200 people on a day to day basis. They will have to bake the bread on their own, while you grow the business! By acting 100 times bigger, you can become 100 times bigger. Think big. Your company is now scalable. As long as you are absorbed by the day to day business of your company, you will never grow.

Do you want to found a company? Then realize that you won’t bake a lot of bread yourself anymore (if you want your company to grow). Do you like baking break so much? Then unsubscribe from this blog, and read a blog on how to bake bread.

Time does not scale

Everyone has just 24 hours a day. So why do some people earn a million $ per month, while some earn near to zero? Why do some people keep on growing, while others “get stuck”? Because the first group has understood one key thing in life. It’s probably one of the biggest differences between successful, ever growing and rich people, and the others. It’s a recipe that can help you in all aspects of your live. It’s plain common sense. But few people actually do it. Here it is:

Successful people spend nearly all of their time on scalable things.

Scalable things, what’s that? Scalable things can keep on growing without or with very little effort. Like money on your bank account that brings yearly interest. Like a blog where the number of readers can grow infinitely. Like an eBook that can sell 1 million times. Like a house that you rent out, and will bring you monthly recurring revenue for the rest of your life. Like an iPhone application with several thousands of downloads. Like the number of visitors on your eCommerce website. For scalable things, once it’s in place, whether you have 1 or 100 or 1 billion of users/customers/clients/fans/followers/…, the extra effort is small. Blogging for 10,000 readers does not require more effort then blogging for 1.

Successful people don’t work more then average people. They work smarter. The use the same number of hours per day, to do much more valuable things. Same input, more output.

Yes, sure. You can earn more money by working more hours. If you work 10 hours in stead of 8, you will earn 25% more. If you work 12 hours instead of 8, you will earn 50% more. But then? Where does it stop? Will you work 20 hours per day? Time does not scale. Instead of working more, work smarter. Spend your hours on things that scale.

Now, here is the other side if the coin. Scaling things takes time, effort, stamina, risk, sweat, and so on. And that scares people off. The more easy way is to go for the quick and direct return (the non scalable things). Growing a business for example, means a huge upfront time investment. It’s not easy. Or blogging. The first 6 months to 1 year, you are blogging for 2 people (probably your mom and your best friend). That’s not really motivating. Neither it brings in any money. That’s why there are so many blogs started without being continued after a few months. But there you can make the difference. That’s an opportunity! The few ones who keep on going and spend their time in something scalable, will eventually start scaling. If every 3 months your nr of followers would double, then you would have 16 followers after 1 year of blogging. Hmm, not so exciting. But 4096 readers after 3 years of blogging…and 65536 readers after 4 years of blogging. Sounds better, eh?! (OK, this example is just plain math, but you get the idea of scaling and the upfront time investment). And 65K people that are interested in what you have to say on your blog…well, that’s the wet dream of every marketeer! You just scaled to something you can monetize!

People want quick success stories, preferably without too much effort. Quick money or an instant list of tens of thousands of followers on Twitter. That won’t happen. (Anyone who claims to have the secret recipe to make quick money without much effort, is lying to you.) But you can start now by investing your time in things that might scale over time. It won’t be easy, it won’t be quick, it will ask lots of your effort and short term loss in income and status, but I believe anyone can scale something.

Pssst…if you liked this blog post, I would be very thankful if you could share it! It takes you just a click here below.

25 things that are NOT needed to go live with your product

You want to launch a (software) product. Great. Here below 25 things that are not needed to go live with your product and find paying customers. “Not needed”, “go live” and “paying customers” in the same sentence? Yep!

  1. Advanced search functionality. Keep it simple. You are not Google.
  2. A captcha. Integrate this thing once you have spam. Moreover, a captcha blocks your first users from signing up.
  3. Fancy ajax because “that is faster and Google does it“. Don’t worry: performance will not be a problem the first months. Once you have 10K users, you might hit your first performance issues. First focus is finding those users, not solving potential future performance problems.
  4. A funny “404 page not found”. Put time and effort in value adding things for which people are willing to pay money. They won’t pay you for a funny 404 page.
  5. A perfect layout. A “good enough” layout will do for now. Sure, your app needs to look decent enough, but an OK UI and standard css frameworks like Twitter Bootstrap will bring you already very far. Don’t focus too much on pixels, focus on which problem you solve. Done is better than perfect.
  6. Video upload. If your users need to be able to post a video, let them include an HTML snippet from Youtube or Vimeo. Done you are, and live you go!
  7. Sign up with Twitter or Facebook. If you solve a real problem, people will take the time to make a new account for your software.
  8. Automatic billing. Do that manually the first few months. Start automating once it becomes a pain in the *ss. The first few months, you’ll have so few invoices to send out that automating this would be silly.
  9. A mobile version of your site or mobile app (except if mobile is your main business of course). Everyone wants an iPone app for their product. You also. But do it once you have a user base.
  10. 100% unit tested code. Of course, tests are useful. But is that the thing where you want to spend time on, when you are even not sure yet if people are willing to pay for your product? Get 100 users, and then go for the perfect test suite.
  11. A super sexy API. Is a nice to have, and you can (and probably should) add that, but after going live first.
  12. A/B testing. Not needed to go live.
  13. User preferences and settings. Try to get users first, before giving them settings.
  14. Keyboard shortcuts like Gmail does.
  15. A 100% integrated blog. Go for WordPress or Tumblr.
  16. Custom icon sets, tailor made for your app. Just get any of these.
  17. A logo. Indeed, NOT needed to go live. Twitspark, a promising Belgian startup, didn’t have any logo long after they went live. They had their logo designed after having the first customers! It’s not about your logo, it’s about solving a problem that people are willing to pay for.
  18. HTTPS and SSL. Do it soon after going live since it’s important, but it should not postpone a go live (and so the chance to get sign ups and being paid already).
  19. Drag and drop functionality. Super sexy…but really needed?
  20. An office. Our web and mobile software development company Zorros still does not have an office 2 years after go live. But we do have a lot of paying customers. That’s what count at the end.
  21. Multi language application. Translating your app seems less time consuming than one could imagine, but it’s a lot of work. Moreover, your app is less flexible and agile, since every new feature or change needs to be rolled out in different languages.
  22. HTML5 and CSS3: is not a must, is nice to have. Customers won’t sign up because you add a sexy shading. They will sign up if you solve their problem.
  23. A WordPress plugin. Not needed.
  24. An Amazon S3 server in order to scale: not needed.
  25. Custom analytic solutions: not needed. Just use plain Google Analytics to get started.

No doubt, it would be nice to have all those things. And that’s just it: they are nice to have. Not a must to have. Focus number 1 is finding paying customers. And in order to do that, you’d better go live and find those customers, before spending all your time and effort on these nice to haves. Now go live!

Any examples of things where you did spend time on, but were not necessary to go live? Leave a comment!

Make a living from what you love

You only live once. You work 5 days per week.

WOULDN’T IT BE NICE IF YOUR HOBBY WOULD BE YOUR JOB? OR DO YOU PREFER TO KEEP ON WORKING 5 DAYS A WEEK, 45 YEARS LONG, FOR SOMETHING THAT YOU ARE NOT PASSIONATE ABOUT?

My hobby (I have others too of course…): building, designing, growing, bootstrapping web and mobile software. I love to solve a particular problem using software. Making things simple for other people and solving peoples day to day problems via the use of the internet, hell yeah! After having worked for months on something, my head spins off its axis if people are using software I invented, wrote, designed and put on this world. That’s why I decided to make my living from this. On a daily basis, I’m paid to do my hobby. Ain’t that nice?!

Turn your hobby into a job” does sound so cliché. But clichés are often just plain truth. People who are occupied with something they like on a daily basis, are just more happy people. More joy of life, passion, they are happy to get up in the morning. They don’t have to, they want to.

Think about any of your interests/hobbies/passions. Horse riding, cooking, salsa dancing, programming, learning other languages. Anything. Now…imagine someone pays you for something related to your hobby/interest/passion. HOW FREAKING AWSOME WOULD THAT BE?!!!

Isn’t it silly to have to oblige yourself every morning to get up, brush your teeths, push yourself in your car, drive to work and watching the clock several times during the working day? Isn’t it insane to long for those ‘2 weeks vacation’ per year, and afterwards work again for a whole year, longing for the next vacations?

Not any hobby/interest/passion is OK to turn into a business though. Nobody will pay me for “watching Friends TV series” just because it’s my hobby. In short:

The best business to be into, is the common space between what you like, and what people are willing to pay for. There are many things that I love to do, but nobody will every pay me for it. There are many things that people want to pay for, but I don’t like them at all. But there are quite some things that I’m passionate about, and people are willing to pay me for that.

If you start a business, make sure your are passionate about it. Starting a business is not a sprint, it’s a marathon. It takes time and persistence. You’ll go through difficult times, working on sunny sunday afternoons while everyone is BBQ-ing, earning fewer money then all of your friends. Without love for your business, it will be difficult to keep going.

What’s your hobby? Can you make a business around it? Are people willing to pay you for anything related?

Why I should have switched sooner to English

5 days ago I started blogging in English in stead of Dutch (my native language) after some people told me I should do so. I should have done this way sooner. Look at this:

 

Moreover, I got over 10 new Twitter followers since that day (hey, you should too!) and quite some Feedburner RSS subscriptions.

What I’ll do over the next month is to translate the 10 most popular Dutch articles from this blog into English, so they reach a bigger audience than the few Dutch speaking people on this earth.

Thank you to read this blog, and don’t forget to share it on Twitter/Facebook/LinkedIn if you like it, get in touch if you need anything from me (except money) and leave a comment if you want to share something.

10 tips to make your product launch a big failure

 

Wondering how to make your product launch a huge failure? Read on… [WARNING: IRONIC ARTICLE]

  1. Don’t worry about marketing, your product will go viral. A good product is enough, the word will spread automatically. Just develop it, put it online, and then wait. You will soon see thousands if not billions of sign ups.
  2. Just build your product without any upfront marketing research. Ideally, your product is not solving any pain or any problem, but is just a piece of code hosted on a server.
  3. Strive for the perfect product: put every pixel of your product on it’s perfect position before launching, go for a 100% test coverage, and refactor all of your code several times. Also, make sure you use all of the latest sexy web technologies everywhere you can, ideally without asking yourself if they add any value to your customers.
  4. Don’t charge any money for your product, and attract the cheap clients that want a lot from you, but don’t want to pay for it. Give it away for free, and don’t ask yourself how you will ever make money from it.
  5. Don’t blog about your product prior to go live! It might result in your blog or product name appearing in the search results of Google, which of course you absolutely want to avoid! Just build the product in silence, and don’t blog about topics that might interest potential users.
  6. Don’t build an audience on Twitter, Facebook or LinkedIn! Best is to hide away in silence. Be a black cat in a dark forrest, so by preference nobody will ever notice you.
  7. Please add tons of features: add settings, optional fields, graphs, ajax, … add every feature that will scare off someone that is looking for a simple solution. Simple solutions are no good.
  8. Go for the big markets like “online ERP software” or “general project management software”. Compete with Microsoft, Oracle, Groupon or 37signals!
  9. Spend a loooot of time on your logo, your company name, your domain name. Ideally in long brainstorm sessions and meetings. Don’t worry if your product actually solves any problem for any niche market, but optimise, finetuine and brainstorm for weeks (or months) about your logo, name and domain name!
  10. Try to reach everyone on this earth with your product. Don’t be specific. Keep it generic, and solve every single pain in this world with your huge product. Avoid narrowing down to any particular “niche” or subgroup of people in this world. Try to be the next Facebook. Aim high. You are not happy with a small tiny product that brings you 30K in monthly recurring revenue, right? A bubble of stock market shares and a worldwide user coverage, that’s what you should target!

Do you have any more recipes for the ideal product failure? Leave them in a comment!

It’s not about ideas, it’s about execution

Ideas are cheap. I have 101 ideas. An online software for Real Estate Managers (my father is one of those, and is complaining from time to time about his administration), a “what shall we eat today” subscription website (my wife asks me every day what we shall eat today), or a “financial coach program” subscription website (I consider myself as a good investor of my own time and money with high ROI).

Developing a software product is super easy these days. There are awesome frameworks like Ruby on Rails or awesome teams using Ruby on Rails that can do that for you. Server and bandwidth are cheap. Unless you are inventing a software to launch rockets to the moon, or a search engine that can beat Google, you can consider the development of your platform as the most easy part of starting up a product company / SaaS business / eCommerce shop / ….

However…just having ideas won’t bring you far. And a very sexy product without a market or without marketing either. Execution is everything.

Most success stories are existing ideas with better execution. Almost every single idea is already taken. But that does not mean that you can’t do it better. Try to find a space where there is more room for competition. Then execute better. That means:

  • Blog more then the competition.
  • Constantly talk about the client’s problem you solve.
  • Better SEO.
  • Put a face on your product, stay human.
  • Better support to your first customers
  • Build a simple product with few features! People love simplicity. Don’t overdo your competition with lots features.
  • Public and simple pricing of your product. Don’t scare off your customers with a sales guy.
  • A simple sign up process.
  • Bi-weekly releases and tiny product updates. It makes your customers so excited.
  • Make sure you can onboard a customer in 10 minutes (100% SaaS) to a few days (some products require some basic integration setup with the client’s backend, but still that doesn’t mean sending an army of consultants for several months).

There are a lot of ideas covered by companies that:

  • Don’t put public pricing on their site.
  • Have a wrong infrastructure that needs an on-boarding process of weeks if not months.
  • Don’t bother about SEO.
  • Have a 90’s looking product sales website.
  • Release updates every year instead of every week.
  • Make it hard for the customer to sign up.
  • …and still they have customers and are making good profit!

Those companies are solving the right problem, but in the wrong way. I call them low competition markets. There is competition, but you know you can do better with little effort.

Don’t search for the uncovered niche market. You won’t find it. If you feel that you are in a low competition market, then go for it and execute better then competition.

Hey, if you like this post, you should tweet it! Writing this blog post took an hour, tweeting it will take you a second…

Developers, please think wider

Hey developers. Do we really need the next twitter add on, the next backup solution, or the next code editor? Maybe. But for sure, this is also the domain where you can expect tons of competition from people just like you: developers. Avoid a tunnel vision…

If you want your product to take off, you need to solve a problem” is what you hear. “Bonus points if you can scratch your own itch.” And that’s 100% right.

So most developers that want to grow their SaaS or software business are looking around for problems that they can solve. The first things they come up with: we need a better code editor, a backup solution or a web project management software.

Well, let that be exactly the thing that the world does not need! You are solving a problem in an over-crowded space with thousands if not millions of candidates with the right skillset to solve that same problem.

Think wider. There are 1001 problems that

  1. can be solved with software
  2. in markets where people are not thinking technical

What about child care? Older people? Doctors? Car dealers? Children? Runners? Small retailers? Accountants? People getting married soon? Football players? Much less competition if you target one of those niches.

Moreover, developers are less likely to pay for software. They can either build something easy themselves (and it will be more fitting their needs), they will look for free alternatives, or they will find other ways to make use of your software “for free”.

 

Switch to English

Yeap. I had many people telling me to continue this blog in English. Hey…why not!

Notes:

  • English is not my native language.
  • I should be able to make myself clear.
  • Please forgive me any typos or strange constructions.
  • It’s the content that matters not the typos.

10 must haves alvorens je product te bouwen

Het is leuk en spanned om bij je volgende eureka-ik-heb-een-goed-idee gevoel meteen software te gaan (laten) schrijven en een website op te zetten. Icoontjes kiezen, server configureren, functionele specs uitschrijven, enkele designers of software ontwikkelaars aanwerven. Dat is echter de easy part. Software schrijven of laten schrijven is niet moeilijk (maar wel time consuming en het kost geld). Users vinden die betalen voor je product is veel moeilijker. Dus doe dat eerst. Verkoop eerst iets, en bouw het dan pas! Hieronder 10 zaken die je moet hebben alvorens je als een gek achter je computer kruipt.

  1. Betalende klanten. Indien je geen betalende klanten kunt vinden voor go live…dan heb je waarschijnlijk helemaal geen oplossing voor een probleem bevonden. Dan heb je een fictief probleem opgelost. Betalende klanten betekent hier: mensen vaarvan je met zekerheid weet dat ze van je product zouden gebruik maken zodra het live is. Zorg dat je die vindt voor go live, en niet na. Het zou jammer zijn 3 maand van je leven te verspillen aan het bouwen van een product waar niemand op zit te wachten.
  2. Een differentiatior. Elk product bestaat al. Maar dat neemt niet weg dat je je niet kan differentiëren door het anders aan te pakken. Anders dan de concurrentie. Hoe ben jij anders dan die 100 anderen met hetzelfde idee? Live gaan zonder de vraag te kunnen beantwoorden “waarom moeten klanten voor mij kiezen en niet voor iemand anders?” is geen goed idee.
  3. Een niche. Je kan als startup niet mikken op een “ERP pakket voor groot en klein“. Dat is zo algemeen, dat je helemaal niet geloofwaardig overkomt. Het is een onbegonnen opdracht om als startup zonder duidelijke niche klanten binnen te halen. Het vraagt veel meer energie, geld, tijd en moeite om jezelf te markeren en te positioneren zonder niche. Een niche als “online planningspakket voor aannemers en bouwbedrijven” is veel geloofwaardiger en eenvoudiger te marketen. Het is veel makkelijker om nummer één te zijn in een kleine niche, dan nummer 1000 in een markt met wereldwijde concurrentie.
  4. Een probleem. Indien je niet in één zin kan zeggen welk probleem je oplost, good luck.
  5. Een open geest. Iets lanceren is een iteratief proces. Je oorspronkelijk schitterende idee, blijkt na enkele gesprekken met klanten plots minder schitterend. Je krijgt kritiek op je eerste versie. Deze kritiek is super! De klanten vertellen je wat er niet en wel goed is aan je initiële idee of product! Feedback, gratis en voor niets. Denk niet dat je de waarheid in pacht hebt door koppig aan je eerste idee te blijven vasthouden en dat te gaan opdringen (verkopen). In plaats daar van: schaaf je idee bij, en bij, en bij, zodat het voldoet aan de vraag van de markt en niet aan je persoonlijk voorkeur.
  6. Weinig stuff. Yep, je hebt weinig nodig om mee van start te gaan. Meer nog: je MOET weinig hebben om wendbaar te blijven. Weinig werknemers, weinig bureau, weinig medewerkers, weinig IT infrastructuur, weinig stock, weinig leasingwagens, weinig contracten, weinig businesskaartjes. Waarom. Omdat je wendbaar moet blijven! Agile. Flexiebel. Zie vorige puntje. Indien je teveel in huis haalt, is elke wending moeilijker. Je bent logger. Je kan je idee niet meer zo flexiebel bijschaven. Je staat schaakmat in je eigen dingen.
  7. Een eenvoudige organisatie. Naast weinig, moet je alles ook eenvoudig houden. Dat wil zeggen: die dingen die je wél in huis haalt, hou die SIMPEL. Velen gaan vanaf dag één over-automatiseren en interne processen optimaliseren. Een geïntegreerd facturatiesysteem, een flow voor klachten van klanten af te handelen, … . Hou dat simpel. Schrijf aub geen document met een stappenplan voor verkoop naar nieuwe klanten. Bel en mail gewoon wat personen op, en leer daaruit. Trial en error. Neem niemand aan tenzij je écht niet anders kan.
  8. Bakken motivate. U kent het fenonmeen wel: een lucky bastard die plots hét gouden idee had terwijl ie in een roeibootje zat te filosoferen, en op 1-2-3 multimiljonair is geworden. Wat niemand weet, is dat de meeste ondernemers vaak al verschillende pogingen gedaan hebben en jarenlang aan het proberen zijn. Een “overnight success” is een mythe. Indien je geen bakken motivatie en passie hebt voor ondernemen, wordt het moeilijk.
  9. Enkele mentors. Je bent jong en geboren met het internet en een iPhone in je hand, dus de ideale persoon om een online product te lanceren. Leuk. Maar vergeet niet dat ondernemen daar eigenlijk niets mee te maken heeft. Ondernemen is van alle tijden. De basispatronen zijn dezelfde, los van technologie, sector of tijdsgeest. Omring jezelf met enkele ervaren rotten die zich al bewezen hebben, en laat vooral hén aan het woord. Trek je stoute schoenen aan, en schrijf ze aan, bel ze op voor een kort gesprek. “Ja maar, die gaan geen tijd voor me hebben!“. Wrong! Uiteraard hebben die tijd voor een jonge ondernemen zoals jij. ZE HERKENNEN ZICH NAMELIJK 100% IN JOU! Ze hebben daar ook gestaan. En ze geven maar al te graag wat advies aan mensen die in hun voetsporen treden. Je leert enorm veel bij in zo’n gesprek. Probeer zo’n 5 personen elk jaar één uurtje te zien. (Noot: omring je wel met de juiste personen. Een bankdirecteur die je 50 pagina’s dikke business plan samen met je wil doornemen, is tijdverlies. Een gesprek met een ondernemer die op 5 jaar van nul naar 1 miljoen euro omzet per jaar is gegroeid, is goud waard).
  10. Een geduldige familie. Yep. Ook zij investeren in je idee of startup. Want tijdens de koffiekoeken op zondagochtend zit jij nog met je hoofd bij je startup. In het weekend ga je naar beurzen. Heel het gezin moet plots effe stil zijn op de achtergrond indien er een klant belt. Overleg (en overtuig :-) je familie over je toekomstige startup.

Welke zaken passen nog in dit rijtje?

Pssst, hey, volg me op twitter :-)