With startups, it is the execution that matters, not the idea
Tuesday, January 5th, 2010Daniel Chu asks “Will you share your venture idea with others?” He then lists the pros and cons:
Benefits:
* You will get lots of feedback, mostly in the form of disbelief or rejection. However, that’s what you need to shape your business, and that’s what every business gets on a daily basis.
* You can practice your pitch before you do it in front of VCs.
* You may unintentionally find your partners / board of directors.
Risks:
* You will get discouraged and eventually give up on the idea.
* Others will steal your idea and implement it before you.
* Your competitor will find a way to destroy you before you are ready to launch.
I posted the following as a comment over there.
“Others will steal your idea and implement it before you.”
My sense is that the risk of this is typically exaggerated. I know you know this, so my comments here are not directed at you, but allow me to expand on this thought, perhaps to start a conversation.
Startups tend to be experiments – how can anyone steal the result of an experiment before the final results are known? Suppose, early in 1928, Sir Alexander Fleming told someone “I’m looking at the lifecycle of staphylococci”. Could someone then see the potential for killing staphylococci? That would be quite a jump. The big discovery happened by accident, but in an environment where Fleming and his assistants were looking for something new. It’s worth noting that at least 3 other researchers, starting 30 years earlier, in the 1890s, had already noted the negative effects that some mold could have on the growth of bacteria. And yet those previous researchers never realized the potential of what they were looking at. Assuming we all want to be the equivalent of Fleming (that is, we all want to be the ones to come up with the world-changing discovery) then we need to think about what he had that the previous researchers did not. For one thing, he had an openness to accidents. For another, he had a great crew and/or circle of former assistants – Merlin Price gave him important feedback at a crucial time.
Fleming did not know that penicillin existed until he found it. So he wasn’t looking for it. But when he accidentally stumbled across it, he had the insight to realize its importance.
A lot of big breakthroughs arise by accident while people are pursuing something else. An excellent current example would be Twitter. Roll the clock back to 2005 – Odeo launches their service for podcasting. The service does not take off. They are frustrated. They ask themselves, “How can we popularize these podcasts?” They start thinking about a messaging service, something lighter and easier than blogging. They talk to some folks who’ve been thinking about the potential of cell phones. They start a service. It soon becomes much bigger than Odeo. They are smart enough to realize the potential of what they’ve got.
What idea could you steal from either of these folks, before the moment that they realized the potential of what they had? The “lifecycle of staphylococci”? Who cares? It is a boring subject. Podcasting? Who cares? Lots of people tried podcasting startups, none of them made any serious money.
Until those folks realized the importance of what they had, there was nothing interesting to steal, and after they realized the importance of what they had, they had the advantage of being way ahead of everyone else.
I think all any startup can really aim for is be like Fleming’s lab in 1928 – go looking in an area that should have some potential, keep an open mind about what you’ll find, surround yourself with excellent people like Merlin Price, and be ready to change direction when you discover something unexpected and yet amazing.
I wrote that comment last night. I may have been guilty of underestimating the risks of someone stealing your idea. However, startups are mostly about execution. Most of the time, when you hear an entrepreneur claiming that others stole their idea, all it means is that that entrepreneur had terrible execution. It is important that we avoid becoming John Pratt:
I cannot tell you how painful it is to watch 5 assholes take your idea and run with it and not even give you credit. I hate all 5 of them for that. If I see them, I may punch each one of them in the face.
Can anyone read that and avoid the conclusion that Pratt is a terrible entrepreneur? Rage, accusations and self-pity, all condensed into a short online rant, and then followed up, in the comments, with insults aimed at everyone who read his rant? I read those words and conclude the man lacked the emotional stability to be a successful entrepreneur. Any risky venture will have its share of setbacks which must be born stoically – facing ruin an entrepreneur should aspire to the same calm resolve with which Robert Scott faced his death in Antarctica:
We took risks, we knew we took them; things have come out against us, and therefore we have no cause for complaint, but bow to the will of Providence, determined still to do our best to the last.
I should add, it is rare to have truly unique idea, especially in the area of the web. What I’ve seen, over the last 8 years, is this recurring pattern: the possibility of a new kind of site/service begins to emerge. The people I know realize it and become excited by it. We begin working on the software. 4 to 6 months later we are ready to launch. At exactly the same, several hundred other startups emerge, all with roughly the same idea. They, too, had the idea about the same time we did, and they too have spent the last 4 to 6 months working on their site/service.
I’ve seen this pattern recur with blogging software, RSS readers, podcasting, file storage, calendar software, online social networks, and video sales. Every year there was a new idea, and a race to be among the first to come out with that idea.
Rather than trying to avoid competition, one should expect it. You won’t be successful because of your uniquely creative idea, you will be successful (or not) because of your execution. And your energy should go toward executing well, rather than trying to keep your idea a secret. Again, I might draw a parallel with Robert Scott’s expedition to Antarctica. He and his team never expected to be in a race to be the first to the pole, but when they arrived in Antarctica they soon learned that a Norwegian team was nearby, also attempting to be first to the South Pole.
Scott received the news on 22 February, during the first depot-laying expedition. According to Cherry-Garrard, the first reaction of Scott and his party was to rush over to the Bay of Whales and have it out with Amundsen. However, Scott recorded the event calmly in his journal. “One thing only fixes itself in my mind. The proper, as well as the wiser, course is for us to proceed exactly as though this had not happened. To go forward and do our best for the honour of our country without fear or panic.”
To go forward and do your best, without fear or panic, is good advice for any startup.