It’s almost impossible to predict the future, whether it be the financial or tech future. There is so much great innovation out there, but when will it reach widespread market distribution? As mentioned in a previous blog, the world has been waiting for electric cars for several years and we are still waiting… we are still not ready it seems. BetterPlace failed to distribute their products to the mass market.
Time and history will be our judge, but as Winston Churchill stated, ‘history will (hopefully) be kind to us, for we intend to write it.’
Ultimately the larger the cost of your product the slower
the pace of distribution. Facebook and Twitter went viral because they
were free, whereas eToro requires a cash investment. Robots and Space travel
require extortionate product costs and after 5 decades we are still
waiting for both to reach a viable sustainable commercial marketplace. Supersonic commercial air flights
were scrapped 10 years ago as they were not economically viable,
amazingly we have still been travelling at pretty much the same air speed for 20-30 years.
Very successful enterprise startups tend to have iterative
sales models. They achieve a 50-100% growth rate year over year for
several years. So the strategy should be to get the smallest customer
that is also a good reference customer and build from there. Building
the business will take time, but under a realistic scope of growth, this
also will reassure your investors and build further VC interest over
time. Most sales models fail because people miscalculate the sales
cycle. They underestimate just how long it takes to land the ideal
clients. So get the smallest, best customers you can, quickly. Jump the
easy hurdles first. Then you’ll know more about how to deal with the
larger enterprise customers.
We are now living in the programmable world.
There are all these gadgets available to make our lives easier, ‘soon
we’ll be able to choreograph them to respond to our needs.’ The key word
here is soon.
How soon will these practical gadgets reach us?
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