In this week’s edition, we discuss
How to Craft Your Startup Strategy (Yes, You Need to) Lessons Learned from Building and Selling a Dotcom Business
Let’s do it.
Every Startup Needs a Strategy – But How Do You Formulate One?
If you ask 1,000 entrepreneurs to define “strategy,” 999 of them will say it’s “the blueprint for reaching your long-term goals.” In effect, it is an agreement of what you will and will not do to grow your startup.
To help you reach this understanding, strategist Svyatoslav Biryulin shares his simple five-question structure:
What are your key markets?— Define your target market, their needs, where they live or work, how many there are, and how much are they willing to spend to address their need? What is the need of the customer? Needs are conscious or unconscious desires that your customers have. Define these, and you have your possible solution. What are your customer values? Customer value is about what the company offers its customers to satisfy their needs. What are your most important assets? Resources are not unlimited, so focus on the assets you must build and develop first. What are your key processes? – Listing priority processes means that these processes should not be underestimated. And leaders must provide all the resources necessary for these processes.
👉 Dive deep into these questions: 5 Crucial Questions to Strategize Your Startup
The rise, sale and fall of the dotcom business
Today JP Stonestreet is a blogger and youtuber with millions of views. But by the early 2000s, he was swept up in the dotcom boom. Here, he shares the story of Quotecatcher.com, and what he learned from the whirlwind experience:
By the spring of 2008, we were generating approximately $100K in monthly revenue from online lead generation.
At that point, our vision of building a better widget was working well enough to attract the attention of a larger competitor in Silicon Valley who made an offer to buy us. However, we were growing fast, and thought we could hold out long enough for a sale that would allow us to retire, so we turned them down.
In that time we learned a painful lesson: When a bigger competitor makes an offer to buy you, and you decline, it makes them very sad. Vengeful, even.
👉 Read this great story here: What I Learned From Building and Selling a Dotcom Business and Then Watching It Die