Page 111 - 6 Secrets to Startup Success

90 6 SECRETS TO STARTUP SUCCESS

gathering efforts. A talented marketing consultant can conduct surveys
or focus groups in a more detached manner than you, and these pro-
fessionals can research available data more efficiently, unfettered by
your hopes and biases. They can also help you overcome the fact that
customers aren’t always able to articulate their deeper motivations.
They will say they prefer low-calorie ice cream then take the high-
cal stuff home in their shopping bag.

One more word about learning in advance: Don’t overdo it. In the
absence of real customers, your data collection will reach a point of
diminishing returns. Be sure to do your homework and examine your
beliefs about the market you are about to enter, but save a healthy
chunk of your time, money, and energy for the rich learning that will
come only after your products are out there and the clock is running.
In Chapter Six, I’ll explore more thoroughly how to set up feedback
and learning loops after you launch to continuously build a better un-
derstanding of your customer base and your overall market.

HIRE IT – If you don’t have direct experience in your target market,
consider hiring or partnering with somebody who does. In his study
of 850 technology startups, Edward Roberts of MIT found that
“companies that had a marketing person or salesperson at the be-
ginning did better than those that did not. Having a marketing or
salesperson (with specific industry expertise) as a cofounder seems
to be critical.”10 If you can find the right person—an important
“if ”—you can add immediately valuable market expertise to your
team, freeing you to focus your energy in areas where you are more
likely to shine.

Another approach is to tap an outside sales adviser or marketing
consultant on a temporary basis. You can scale the role to meet your
specific needs without committing a full salary or giving up ownership
in your business. More than ever, because of macro-economic chal-
lenges, a lot of highly talented marketing and sales professionals are
on the sidelines, acting as free agents, available to help startups better
understand their markets. As a bonus, if the person is a great fit, you
can opt to bring him or her on board full-time down the road.

American Management Association • www.amanet.org