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Startups in stealth mode need one piece of advice.

humbledmba.com

11–20 of 68 posts

Re: Startups in stealth mode need one piece of advice.

#11
post #2

I can't keep count of the number of people who I talk to on a daily basis online or in person, at networking events, etc... that acts as if their idea is so revolutionary that they must keep it to themselves. This is utter bullshit. In all the time I've been an entrepreneur (over a decade), I've built many successful businesses, sold my companies, etc.. I've never had the problem of anyone stealing my idea except on…

I'd go even further and suggest that the current plaintiffs have proven they could not have made FB. Their focus on "getting credit" signals that they wouldn't have been as focused as Zuck on "making something cool".

From the posts on their engineering blog, it sounds like (esp in the early days) that was clearly the focus -- make something cool, get people to play with it.

Re: Startups in stealth mode need one piece of advice.

#12

Very good points all around. One thing I'd add: IP- and idea-defense isn't always the strategy behind the stealth tactic. Oftentimes, companies are stealthy just to generate hype. It's a marketing ploy, plain and simple, usually correlated with an invite-three-friends beta a few weeks after some tantalizing tidbits about the company are "revealed" on TechCrunch. That said, marketing gimmicry like this often makes me…

When I think a company is limiting invites to generate buzz, it totally turns me off.

OTOH, when I can tell it's because they don't want to overload their systems, or are still clearly building something, I don't mind. It's really just that a "beta" is now a marketing ploy; my paragraph above is really discussing what used to be an "alpha".

So to me, beta = marketing, I hate it. Alpha = testing, I love it. I'm not very good at telling them apart, tho, b/c they both call themselves beta (damn you gmail!)

Re: Startups in stealth mode need one piece of advice.

#13
I totally agree with his point that stealth mode is a pointless waste of time.

But some of his reasons only apply if what you're after is to be "The [Well Known Digital Property] Guy", ala Mark "The Facebook Guy!" Zuckerberg. For instance, if all you want is to get an independant company going selling enough units to building companies to help them manage their inventory of nails, so you don't have to work for someone else, having a small market is fine.

Secrecy is just as unimportant, but for different reasons.

Re: Startups in stealth mode need one piece of advice.

#14
Never doing soomething is rarely a sound strategy.

Just like all other aspects of business, there can be solid reasoning behind staying stealth mode. I'll agree that this USUALLY isnt the case for most people who go stealth, but to say that it is ALWAYS poor strategy is simplistic and trivializes the idea of having any business strategy pre-launch.

Re: Startups in stealth mode need one piece of advice.

#15
While I agree with most of the article, I also think it's important who you choose to get advice from. Some people just don't get it. They'll discourage you without giving real constructive advice. Though I've never met PG in person, it seems like that's PG gift - the ability to give good feedback and direction on a product. But not everybody has that gift. My preferred path is to talk with tons of people to brainstorm thoughts that could lead to real product. Once you got a good product idea, brainstorm and start building it with a team. Then, get some good advice. you don't need to go totally public, but you need some good advice. Keep iterating. There will be a time where you go public and get feedback from lots more people. Also, I think it depends on the product. Sometimes you'll incubate a bit longer, sometimes shorter. Sometimes you'll need public feedback quicker, sometimes later. Early advice and feedback doesn't always means advice/feedback from everybody you meet.

Re: Startups in stealth mode need one piece of advice.

#16
The first milestone in the success of a startup is getting the product out the door and the second being getting revenue. Stealth mode and empty signup/landing pages are just there to create hype and buzz. If you ask anyone in the valley what matters, it's execution.

So let's leave all these empty promises and expectations at the door and bring transparency and openness to the table. That's where startups get people, like users and investors, listening and contributing in a big, big way.

Re: Startups in stealth mode need one piece of advice.

#17
Gee, it must be fun to call entrepreneurs silly.

My view is that the article is 99 44/100%, fresh, soft, still steaming, and actually destructive, BS.

The whole post is based on what is apparently deliberately both an obscure and even ambiguous use of the word 'idea'. So, with such deliberate obscurity and ambiguity, all he has is a way to insult entrepreneurs so that all he has is that steaming pile.

Details:

So, at the beginning of his post, to him an 'idea' is something worth protecting as intellectual property.

There actually are ideas worth protecting: Sometimes they are protected by Top Secret in the US DoD, via the USPTO, and by trade secret law. In research, the first person with a really good idea can win a valuable prize, e.g., a Nobel. Flatly, protecting ideas is not all just foolishness.

Then during his post he bends his idea to mean just some general description from 100,000 feet up that would need no protection and likely could not get any from, say, the USPTO.

So, by the end of his post, to him an 'idea' is something as vague as, say,

Facebook but for dog lovers, "with nearly all romantic angle", and, to keep quality up, need an invitation to get in.

Yes, for such an 'idea', to quote J. Doerr at KP, "execution is everything" and for a good reason: The idea is trivial; anyone could think up such ideas at a rate of one a minute for most of an hour.

Now we come to the real weakness in the author: He's missing the standard, old 'paradigm' of an entrepreneur with a good 'idea':

Start with a problem that millions, maybe hundreds of millions, of people have and would very much like to have solved or at least solved much better than at present.

Since some millions of people have the problem, the 'idea' of solving the problem is obvious. In that case, just why is the problem not solved?

Simple: No one knows how to solve it.

The classic example is one pill taken once to cure any cancer. And, that's not the 'idea'. Instead the 'idea' would be how to make the pill, and that would need protection. In terms of entrepreneurship, the pill is the 'secret sauce', and the word 'secret' is well chosen.

So, the author is deliberately confusing a trivial idea, one pill to cure cancer, with a difficult idea, how to make such a pill. Silly author with a silly post.

Q. But your example is from biomedical. The article and HN are concerned with software.

A. Oh, poor one: There are plenty of big problems that can be solved by software and a good idea where the idea is quite difficult to construct but much better than anything else available or obvious.

So, the big problem of the author is that he does not understand the possibility of such ideas.

So, he has

1.) Execution is more important than the idea

For a trivial idea, yes. However, if the idea was actually how to make a one pill cure for any cancer, then the idea was all that was important and, believe me, "execution" will be only very routine.

2.) Someone else has the exact same idea.

Nonsense. Absolutely 100% total nonsense. I've published papers in the peer-reviewed research literature where the standard requirement is "new, correct, and significant". Note the "new". And I got a Ph.D. from a good research university, and there the main requirement was "an original contribution to knowledge worthy of publication". Note the "original".

3.) Totally unique ideas generally don't make it

Nonsense. What he means is, say, a new product, of a very different kind in all respects, e.g., one that requires customers to do something quite new, for a new need for new customers in a new market generally doesn't make it. Right.

But a one pill cure for cancer, which would be "totally unique", would have to fight customers off with rings of guards, literally.

4.) The most likely cause of failure is your incompetence, not losing to the competition

Yup, insult the entrepreneur again.

5.) You desperately need real feedback

Yup, insult the entrepreneur again.

6.) First mover advantage is just silliness

Nonsense: A first mover advantage is just that, an "advantage" and not "silliness".

Net, the author wants to insult entrepreneurs and doesn't understand what a really good 'idea' actually is.

Re: Startups in stealth mode need one piece of advice.

#18
Impossible to apply general advice like this to every situation. As usual, reality is "it depends"

Here's a legitimate reason to keep your product or service stealth: when you're in customer development mode and you have plenty of customers to represent your possible target markets and therefore plenty of feedback, and therefore more feedback and exposure would be redundant and likely mean disappointed customers. Why burn through a lot of potential customers when you're not ready presenting them with a bad first time impression.

Re: Startups in stealth mode need one piece of advice.

#19

Gee, it must be fun to call entrepreneurs silly. My view is that the article is 99 44/100%, fresh, soft, still steaming, and actually destructive, BS. The whole post is based on what is apparently deliberately both an obscure and even ambiguous use of the word 'idea'. So, with such deliberate obscurity and ambiguity, all he has is a way to insult entrepreneurs so that all he has is that steaming pile. Details: So, at…

Umm actually the guys who coined the term "first mover advantage" actually wrote a paper explaining why they were wrong. They published it in the harvard business review so u should be able to find it via google.

Re: Startups in stealth mode need one piece of advice.

#20
Depends on what you mean by "stealth".

If stealth means spending over a year and a boatload of cash developing a product without ever getting any feedback from any potential customers, then yeah, that's likely a dead end.

If stealth, however, means meeting quietly with a small (but representative) group of potential customers while you work the kinks out of your project before launch, then I think that is a smart strategy. There's nothing wrong with giving yourself as much of a head start as possible.

As a general rule, I don't talk about my ideas/project with other developers. I especially don't discuss it with industry people who may be my future competitors. What I might discuss are things like the overarching problem I'm attempting to solve. I may even describe some of the very basic mechanisms, or ask questions that hint at the philosophy behind my approach.

I know HN can be fiercely against the notion that ideas matter at all, but most successful businesses have their "secret sauce" and it's not smart to just give it away before you're primed to leverage it to your benefit. I mean, front page today is an article about Coke's secret recipe; sometimes, the what really does matter as much as the how.

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