The Reum brothers, Courtney and Carter, are known for their roles on the television show Hatched. They are also behind many household brand names including big names such as Lyft, Pinterest, Warby Parker, and Shake Snack. Their new book, Shortcut Your Startup: Speed Up Success with Unconventional Advice from the Trenches is full of advice and shortcuts for those who want to take a start-up organization and scale it quickly.
In the Introduction of your book, you talk about both how it’s cheaper and easier than ever to start a business but also that the competition is more fierce than ever, too. What are the implications of these market forces?
The effects are twofold. On one hand, an abundance of resources has recently come into existence that—in a vacuum—would make life infinitely easier for any entrepreneur. Obvious examples are Kickstarter, social media marketing, Amazon’s e-commerce platform, data analytics—the list goes on. Obviously, these facilitate the arduous and historically expensive process of starting a business. Just look at the following graph showing the decrease in time needed to scale a brand.
Copyright Reum Brothers, Used by Permission.
The problem with these resources, however, is that everybody has access to them. Since these goods and services simplify business building, more and more people enter the landscape and competition increases. While the increased number of competitors certainly is an implication, a more important one is that it becomes significantly more difficult for the best business to separate itself from the crowd.
Use a Microscope and a Telescope
Another juxtaposition of ideas is from the old saying that you need to have a microscope on one eye and a telescope on another. You also use the speedboat versus sailboat analogy. Talk about this and how aspiring entrepreneurs need to understand the differences and their role.
It’s at the top of nearly every organization’s strategic priority list. Whether due to tepid growth, robust competition, globalization, budget constraints, or a myriad of other reasons, almost every organization is seeking innovation. Looking for the next big thing to transform the business and to improve a customer’s experience is always top of mind for a leadership team.
“Don’t worry about failure; you only have to be right once.” –Drew Houston
Steven Hoffman is Captain and CEO of Founders Space, a Top 10 Incubator in Inc. and the #1 Accelerator for startups coming to Silicon Valley from overseas in Forbes. He is constantly innovating, and he is a serial entrepreneur and investor. From his vantage point, he’s seen what works and what doesn’t. His book, Make Elephants Fly: The Process of Radical Innovation, is a practical guide to help startups achieve breakthrough growth and help more established organizations find a path to successful innovation.
It is a compelling read, filled with great examples to help you achieve faster growth. I recently spoke with Steve about his book.
“Copying is a brilliant business strategy.” –Steven Hoffman
One of your chapters is focused on copying vs. creating. You say, “Copying is a brilliant business strategy.” What role should copying play in radical innovation?
All great innovations are built on top of previous discoveries. Copying is an essential starting point. Steve Jobs copied Palm Pilot when developing the iPhone. Mark Zuckerberg copied Friendster and Myspace when developing Facebook. Brian Chesky copied Craigslist when developing Airbnb. But all these brilliant entrepreneurs innovated radically, and that’s why they were able to breakthrough and become so much bigger than their predecessors.
To innovate, you must start with something, and it helps to pick a business model that works. That’s where copying comes in. Once you’ve identified the customer need, then you must figure out how to radically improve it. There are only two ways to break through:
1) You create a product that is exponentially better. This is what Google did with its search engine. It was ten times better than the preceding search engines.
2) You create something new, something that offers a different value than the competition. This is what Twitter did with its micro-blogging platform. It wasn’t like a typical blog because it limited posts to 140 characters, which created an entirely new experience for readers and bloggers.
This is a guest post by Lior Grossman. Lior is the founder of BookAuthority, designed to help you find the best business books by top industry leaders. Personal note: I was one of the first CEO’s to make a few recommendations on the site.
I firmly believe that reading the right book can open your mind to a whole new world of ideas and opportunities. The right book can inspire and empower you to overcome your challenges and take action. As a leader, I understand I need to expose myself to ideas that are capable of transforming me and the people that I lead.
The world of leadership is evolving, and present-day leaders should seek insights and context to understand this changing world better. Leadership development is a must because what was applicable in the past no longer applies today.
Reading is the one habit that almost all successful people have in common. Bill Gates reads about 50 books every year; Mark Zuckerberg resolved to read 24 books a year; Mark Cuban reads three hours every day, and Warren Buffett spends 80% of his day reading!
Yes, I know. Unlike Mr. Buffett, you cannot afford to spend the majority of your time reading books, and you really don’t have enough time to dedicate to your personal development. However, sharpening your skills can be as easy as updating your reading list, so that when you do find that one precious hour to read, you’ll spend it on a book that will be worth it.
The idea of helping people identify the few books that are worth reading is what led to the creation of BookAuthority – a new website that helps you identify the world’s finest business books, by collecting and aggregating book recommendations from 150 of the most successful people in the world.
To help you find your next read, here is a list of great leadership books recommended by well-known leaders like Warren Buffett and Eric Schmidt:
I recently spoke with Amanda about her work and her new book.
What is driving the need for fearless growth?
We all know growth is essential to a business’s health, but no matter what industry you’re in, you probably feel stress brought on by new technologies, changing customer behaviors and preferences, and new competitors that threaten your business’s ability to grow. Here are a few examples:
The food industry is investing to keep up with sometimes capricious trends in public perception regarding low-fat, low-carbohydrate, non-GMO, gluten-free, organic, alternative sweeteners and grains, and other choices.
The consumer products industry must continuously seek to find new and better ways to interact with their customers digitally. They must respond to changing consumer buying behaviors and even to consumers’ concerns about political, social, and environmental issues.
The entertainment industry is being upended, with companies that formerly were just conduits for content—like Netflix, Amazon, Google (via its YouTube subsidiary), and AT&T (via the Time Warner merger)—now creating their own original series.
The auto industry is changing gears to adapt to the way ride-sharing services, such as Lyft and Uber, are reducing people’s desire to own a car.
The banking industry is scrambling to adjust to new modes of consumer-to-consumer payment (such as Venmo) and new forms of lending and credit assessment.
The transportation and logistics industry is responding to trends in globalization, automation, and the rise of e-commerce giants like Amazon and Alibaba.
Industrial products companies are struggling with decisions about how best to deploy sensors and artificial intelligence to improve their products’ performance and reduce cost.
The energy industry is coping with low oil prices, new government regulations, and emotional consumer sentiment on both sides of the fracking, renewable energy, and coal debates.
If your business hasn’t felt the effect of massive market changes yet, it’s likely that you will soon. And if you wait until disruption occurs, it will be too late to respond effectively.
You must grow your business, but most growth initiatives entail risk of one kind or another. I often hear company leaders saying things like, “Our core business is at risk of disruption. We need to branch out into new businesses to grow, but we don’t have all the capabilities we need—they’re not in our DNA,” or, “We’re in unfamiliar terrain and aren’t sure that customer demand will materialize. There are lots of unknowns.”
To pursue growth, leaders and employees must learn to do things they have never done before, and they must grapple with new threats. All of this adds up to the fact that trying to grow a business in today’s turbulent markets is pretty scary—it’s perfectly reasonable and rational for company leaders to be worried. I developed the new rules of fearless growth to help leaders create organizations that have the courage, speed, and agility to succeed, no matter what the future brings.
“To pursue growth, leaders must grapple with new threats.” -Amanda Setili
What can companies do to grow fearlessly, even when their business environment is changing fast?
When leaders encounter risks in their business environment, the natural human response is to hunker down, tighten the controls, and defend the existing business. What is needed, however, is not tightening controls, but the opposite. You need a fearless approach to learning and adapting to market change, and that means giving up a degree of control—to employees, business partners, and customers—in order to gain control. It’s like learning to ride a bike. At first, the bike seems tipsy and unstable, but once you start going, the movement itself creates stability.