Once we know what the machinery for our business looks like from the point of view of your vision leading up to your strategy and then leading up to your execution and then how you go about focusing on each of those things, it’s important to realize that what you’re focusing on today is a multiplier, yes, but it won’t produce success overnight.
So a lot of people, I see people getting caught up with things like Facebook likes or click through rate or a landing page, and when they go about it and make things happen and they come out with these results and they assume that these results are synonymous for success, you are not successful if you’re landing page is converting well. You’re successful because your landing page is converting at a specific enough conversion rate that you are profitable. If that conversion rate is too low, you might actually be losing money.
So overnight success is not something that happens. Success is the result of a multitude of things that happen and generally we take a look at success and break it down into certain milestones and certain startups tend to raise capital which kind of helps them achieve those milestone so that they don’t raise too much money and get complaisant or not enough money and don’t have the resources to make their vision come true. So success is the result of a few milestones and we could take a look at a few key milestones especially at the early stage.
So when you get started and you’re figuring out all of these things, you’re figuring out your value proposition, you’re figuring out what you’re going to be focusing on for the first year you’re building a product, maybe you’re finding suppliers. This time we talk about this time as being the pre-product market fit time. This just means that you haven’t yet figured out specifically what things or what features your products needs to have, this will be the problems of your customers and obviously, when we’re talking about your customers, we’re talking about your customers during year one, so probably you’re looking for early adopters because in terms of products, people don’t buy products from day one, right? There’s certain people that wait for reviews to come out, there’s certain types of people that love to be the first one in line to get the new iPhone, there’s different types of people.
So when you get started with this new project, growth is flat because you’re not getting any acquisition of those users. You don’t yet know who those users are. You’re figuring out how your product fits with the problem of those users and you start becoming successful when your product fits exactly with the problems of that market or audience and the solution is delivered in the most efficient and profitable way possible. So you know, obviously, when you step back and look at this definition, you know for a fact that this simply won’t happen overnight.
What you might be able to accomplish overnight is confirm that there is a market for this or confirm that there is a problem and that you might need to figure out a good way to go about solving that problem but overnight success doesn’t exist. You need to look at your progress and segment it into milestones and when you go out and you execute, you need to be aware of how your execution affects this progress and how in the grand scheme of things, it fits with you eventually reaching product market fit.
Once you reach that fit and it’s time that you start making the revenue that you’ve been going after, that means that your product is hitting the audience in the right way or the right audience and with the right message and you’re starting to convert a portion of those people into customers.
At that point, you can start thinking about conversion optimization, right? You can start thinking about doing things more efficiently or more scalably or what have you. These things, when we’re talking about placing the horse before the cart, this is a prime area where this matters because for example, when we’re talking about conversion optimization, you’re not optimizing your website for conversions before you proceed to conversion, I mean you’re setting up the web page so that it might convert but you’re only going to start optimizing once you’ve got sales and once you understand what drive those sales and once you understand the elements that will increase those conversions.
And once you figured that out, it’s just a matter of driving the things that work best and just leveraging those things perhaps through technology, perhaps through marketing, perhaps through sales, promotions, what have you and just driving the things that work for you and multiplying those events more and more and more and usually what will happen is that once this happens, you actually have a startup that’s growing because you’ve taken the time to build a product that speaks to your customers, you found those customers, you’ve optimize the way that you speak to those customers, you’ve optimize the way that you charge those customers and then you found the best places to speak to those customers and you drive all of your efforts in those optimized areas that will optimize your potential and that will optimize your execution.
So as you move forward, all of these things get fine tuned and you need to realize that that success where most people are is not available until you’ve reached a certain level and reach a certain milestones.