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Going Public Means Never Admitting You’re Wrong

jordanstaniscia.com

11–12 of 12 posts

Re: Going Public Means Never Admitting You’re Wrong

#11
In general, I tend to think of startups as children, in or around their creative prime. They are still leaning, often naïve, and are expected to make a lot of mistakes (and also expected to handle them well). It seems reasonable to apologize often to potential customers because they are taking a risk and experimenting with you and your service/product. You're not so much apologizing as you are thanking them for helping you determine your target customer and their needs.

There are a lot of reasons why mistakes happen, but for many reasons the startup stage is a good time to make mistakes.Especially before reaching critical mass, at least from a business perspective, I believe it's easier to justify upsetting a few thousand people if it means obtaining learnings which can impact tens or hundreds of thousands of the _right_ customers (and help you serve them better) down the road. I think the smartest startups are able to minimize their mistakes by practicing due dilligence and learning from others who have made similar mistakes.

Large, public corporations, in many ways, face a different set of challenges.They are expected to understand their target customer, deliver product(s), maintain revenue growth, all in the face of one other interesting challenge. When you take your company public, a core group of your customers changes roles from consumer to investor. Different customers have different needs and expect different things. Some need fault tolerance, some crave features, some need speed. Because you don't necessarily choose your 'investors' at this stage, there's no saying your expectations will be aligned.

One challenge of running a company is, not all 'ethical' strategies (such as apologizing, if it can be considered as such) result in either maximizing revenue or maximizing customer happiness. When you have millions of customers, I imagine every important decision can be construed as a mistake by some subset of customers.

We live in a Peter Pan world where many startups wants to stay young forever and never sacrifice their ideals. The truth is, a company is about serving customers well, making a promise, and delivering on it. In order to do that, you need to grow with your customer base and respond to the challenges this entails.

Special thanks to zephyrp for editing.

Re: Going Public Means Never Admitting You’re Wrong

#12

When many own one, no one is to blame.

I appreciate and respect what your comment is trying to accomplish, in terms of associating ownership with the sum of its parts. I think this can also lead to an 'escapist' mentality though, where no one takes ownership for mistakes. Perhaps when many own one, many are to blame, instead of the one?
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