"It would have been different if we had been debating which plan among several to implement or how to shore up specific weaknesses, but we had nothing." I don't really understand "having nothing" -- you're either creating value or you're not. You guys spotted a real problem, but your v1 solution was meh. There were certainly multiple ways out (and not just tack on gamification), and even if some were long-shots, the…
Why I turned down $500K and shut down my startup
31–40 of 180 posts
Re: Why I turned down $500K and shut down my startup
#32There should have been some guideposts here: who were the power users? what did they love? who were the huge detractors? what was their big issue? how did ContractBeast fit into the ideal world? how were people splitting their work between the old system and ContractBeast? were there network effects for the old system?
Yeah we can look at some sort of short term win and long term gain framework, but it's pretty reductionist to a) only depend on that framework and b) not be able to come up with any solutions to fulfill short term wins.
Re: Why I turned down $500K and shut down my startup
#33Re: Why I turned down $500K and shut down my startup
#34I have to say, I don't agree with this part at all: "But most of the time, customers don’t really want the the features they are asking for. At least not very badly." Customer feedback drives an absurd amount of our roadmap at Cronitor. We have a good idea of the many shortcomings of our product and are constrained primarily by resources in developing it faster. When a customer -- especially somebody on a trial -- pu…
> if i'dve asked people what they wanted, they'd have said faster horses.
is applicable here, much more so than in the battlecries of every company making something no one wants for some hypothetical market that doesn't exist.
While I don't understand the author's biz/space enough to comment situationally, this is a key insight. People almost always miss this. Users want to get to places much faster, and much more confortably in the Ford example. They speak in solutions and it is an entrepreneurs job to translate this into problems, rank them, and provide actionable responses.
The flaw I believe in your example, could be a few things. possibly if you are paid by a customer directly & are more a consultant/contractor than a SaaS provider, well, that's how you get paid. However, generalizing about a feature, especially without behavioural feedback is dangerous. if it is very easy to do, of course do it. However, the risk of a feature is some subset of:
* value to customer
* conviction/data in that value prop. & feedback
* difficulty to achieve
* is it replicable. how valuable is this to all my customers? is it very valuable to a few, or semi-valuable to many/all.
This is again, highest level, even in the last point above you can see the thread fan out.
So, again, i am bot super familiar with the authors company but I agree wholeheartedly with his process of decision making. Consider it is possible that either etsy was a big client, thus worth retaining for markwt goodwill & rev, or that it was quite easy to open an endpoint to data you already had, and thus doesn't discount this methodology
Re: Why I turned down $500K and shut down my startup
#35Can't you just charge them $2.99 for each contract, and go with volume?
Essentially they need to add an extra step to their routine & pay for the lack of convenience. This was likened to ecercise by the author. However, if you expect anyone without a top down authority (also mentioned) to do something that is harder & more expensive, they won't. It's why gym memberships bought on Jan 1 are rarely renewed in Feb or March
edit: so you are correct, paying for what you use is logical especially vs the value. Here it sounded like the customer has high value, but we discount it steeply for lack of immeadiacy.
Re: Why I turned down $500K and shut down my startup
#36I have to say, I don't agree with this part at all: "But most of the time, customers don’t really want the the features they are asking for. At least not very badly." Customer feedback drives an absurd amount of our roadmap at Cronitor. We have a good idea of the many shortcomings of our product and are constrained primarily by resources in developing it faster. When a customer -- especially somebody on a trial -- pu…
the horribly over used Ford quote: > if i'dve asked people what they wanted, they'd have said faster horses. is applicable here, much more so than in the battlecries of every company making something no one wants for some hypothetical market that doesn't exist. While I don't understand the author's biz/space enough to comment situationally, this is a key insight. People almost always miss this. Users want to get to p…
> When someone is shopping for a drill bit, they don't want you to sell them a drill bit. They want you to sell them a hole in their wall.
If you're wondering, most people will put a nail or hook in the hole in their wall, and hang a picture or something. 3M would go on to sell them tape or other wall adhesives instead of a hole in their wall.
Rephrased to correlate to this thread:
> When someone is shopping for document signing software, they don't want you to sell them software. They want you to sell them a set of agreements already negotiated with their business partners.
Don't confuse the tool with the goal.
Re: Why I turned down $500K and shut down my startup
#37After this, I'd never give this guy time or money and I doubt anyone else will either. No matter how shitty you feel about your start-up, if you have a willing team and cash, you should see it through. Being an entrepreneur isn't always about having all of the answers. It's very often about not knowing the answers and figuring things out. Especially if you have a team and cash flow and investors. I think this guy nee…
When your heart isn't in something, there's no way to "get your head back on straight".
He did the right thing.
Re: Why I turned down $500K and shut down my startup
#38That's the key quote in the article. It's a fair decision from his standpoint but I wonder if saying that will lead investors to question his determination in the future (if he tries a new venture). I suppose the investors could also appreciate that he didn't want to waste more of their money if he didn't believe in the product.
Re: Why I turned down $500K and shut down my startup
#39Earlier quoted context omitted.
the horribly over used Ford quote: > if i'dve asked people what they wanted, they'd have said faster horses. is applicable here, much more so than in the battlecries of every company making something no one wants for some hypothetical market that doesn't exist. While I don't understand the author's biz/space enough to comment situationally, this is a key insight. People almost always miss this. Users want to get to p…
The somewhat underused 3M quote (paraphrased): > When someone is shopping for a drill bit, they don't want you to sell them a drill bit. They want you to sell them a hole in their wall. If you're wondering, most people will put a nail or hook in the hole in their wall, and hang a picture or something. 3M would go on to sell them tape or other wall adhesives instead of a hole in their wall. Rephrased to correlate to t…
I've put a fair share of holes in walls and also fastened plenty of material together. No one would buy a drill for one hole in a wall but there is a massive amount of leverage in being able to put thousands in quickly, ect.
> don't confuse the tool with the goal.
I think this is the lens/acid test. For your correlation above, it sounds like it was harder to sell them automated agreements than it was for them to manually produce them. Or at least, the perceived opportunity cost was higher and the cost to educate them otherwise was higher than the authors profit marg.
edit: just looked at your profile; very nice array of quotes you have.
Re: Why I turned down $500K and shut down my startup
#40Earlier quoted context omitted.
Great comment. Fantastic article. I wonder if they considered involving both sides of the contract from the get go. When I've negotiated small-mid size deals with other tech savvy folks, I've often thought a two sided chat style interface that I could use sitting next to someone or if they were across town would be ideal. The way I conceptualized it would be a 3rd party tool for making deals where the main feature is…
I think the primary issue is that when you start redlining, everyone has their workflow and the side that's in the "position of power" will use what they feel like using. "Oh check out this contract at FooBarContracts" (counterparty opens link, copies text into word doc, edits) "Here's the latest DOCX with my revisions."
I bet people involved in frontline sales for (eg. software) would love something like this to exist for fast closes. There are your shadow unpaid product evangelists.