RawData has been working away just fine and are finally getting ready to come out and start selling product. One concern that continues to creep up internally is ‘What if _____ happens?’ Followed up quickly with, ‘We only have to do _____ to make it better?’
My biggest concern is that making ‘it’ better costs more money, which is in short supply these days.
There was a study done, retrospectively, on causes of the internet bubble. One of the more repetitive causes of failure was a lack of focus on sales. People spent months and million refining and perfecting a product offering without ever talking to a customer. The mentality was that VC’s are investing hundreds of millions in us, this widget better function 100%. As development continues these companies are burning massive amounts of cash on research only to release to the public, and find out that what had cost millions to get working perfectly did not solve a problem (or it didn’t solve it well enough that people cared to part with money for it).
One of my first companies was genius! We partnered with the local power company and a lighting distributor to go in and change out old lighting in warehouses for more efficient and brighter output lights. After we converted a warehouse the power company would come and do an audit and return close to 1.7x the cost in a rebate check to the warehouse owner. We would take a fraction of the return as our payment for the project and leave the warehouse with better light.
I started a bakery with a good friend. We spent months writing recipes for bread that did not have yeast. As we opened the bakery we had a great line-up of breads. We thought people would want pastries as well so we hired a very expensive pastry chef. She churned out some delicious treats - that did not sell at all. At lunch time the place would be packed for sandwiches - we thought this would be the perfect opportunity to give the pastries away and let people try them. Nothing, we tried changing our line to create the perfect dessert line. No matter what we did we could not get the pastries to sell. Cash got tight and another opportunity was made available to me and I left. The bakery appears to be doing very well today - they just opened some locations downtown. What’s interesting is there new focus seems to be on their sandwiches. Honestly, you need to try a Hagerman’s sandwich - the best you will ever have!
As I sat down with a sandwich I realized some valuable lessons, the one I feel is most applicable - is let the customer tell you what is valuable enought to get him to part with his money. The point Is that if you can sell it broken then you can afford to make it better. If you can’t sell when it’s perfect then you might end up in debt and out of a company in the pursuit of perfection.