COMPLETE GUIDE OF FOUNDING A BUSINESS
Also known as: How To Startup.
Below are some of key ideas and strategy on how to build, manage and grow a startup towards an all conquering big corp with big revenue by Sam Altman.
He is the man of Y-Combinator Incubator with impressive line of successful startup. If an incubator has a Dropbox level startup is impressive enough, YC has a line of Dropbox level startup success.
Which means his writing and all is a gold!
If his writing about building a startup has been compiled and edited thoroughly like a guide book and put in one place accessible for all? It is a city of gold!
Said writing entitled Startup Playbook can be accessed here: http://playbook.samaltman.com/
And below are my personal snippets from said post:
- Your goal as a startup is to make something users love. If you do that, then you have to figure out how to get a lot more users.
- It’s much better to first make a product a small number of users love than a product that a large number of users like.
- To have a successful startup, you need: a great idea (including a great market), a great team, a great product, and great execution.
- 3 question to ask:
- What are you building?
- Why are you building it?
- Who desperately need that product?
- The first two is about the idea. It needs to:
- Clear to the founder
- Founder can communicate it clearly
- Simply great
The desperate user is about market. In the best case, you yourself are the target user. In the second best case, you understand the target user extremely well.
If a company already has users, we ask how many and how fast that number is growing. We try to figure out why it’s not growing faster, and we especially try to figure out if users really love the product. Usually this means they’re telling their friends to use the product without prompting from the company. We also ask if the company is generating revenue, and if not, why not.
If the company doesn’t yet have users, we try to figure out the minimum thing to build first to test the hypothesis—i.e., if we work backwards from the perfect experience, we try to figure out what kernel to start with.
- It’s important to let your idea evolve as you get feedback from users.
- We also ask how the company will one day be a monopoly ... Instead, we’re looking for businesses that get more powerful with scale and that are difficult to copy.
- Finally, we ask about the market. We ask how big it is today, how fast it’s growing, and why it’s going to be big in ten years.
- We greatly prefer something new to something derivative. Most really big companies start with something fundamentally new (one acceptable definition of new is 10x better.)
What if you don’t have an idea but want to start a startup? Maybe you shouldn’t. (me goes: HAHAHA!)
...So it’s better not to try too actively to force yourself to come up with startup ideas. Instead, learn about a lot of different things. Practice noticing problems, things that seem inefficient, and major technological shifts. Work on projects you find interesting. Go out of your way to hang around smart, interesting people. At some point, ideas will emerge.
And thats only on Great Idea section of his playbook. There are 3 other bigger section namely Great Team, Great Product and Great Execution.
Please take time to at least go through once his Startup Playbook write up if there is even at least a peanut of ambition in you to build a startup that one day will rule the world.
At least, we will know what we really dealing with.
We will know what we do not know yet. And that is really powerful to us to make informed decision before we even start.
And thank you very Sir Sam Altman. That is really a huge help for us fledgling fellow aspiring founders of yet to born-and-die-repeatedly startup.