Irrational Complexity

I just got back from the gym, and tonight I saw what I see every time I go for a workout. A very out of shape person doing some kind of ridiculously complex exercise for a particular body part. Which any experienced trainer will know is clearly a waste of time.

The reality of weight training is that the entire body can be trained incredibly well with 5 simple exercises:

Bench press

Chin ups

Squats

Shoulder press

Running

Everything else really is only for the hardcore and professional sports people. Problem is this truth doesn’t sell books, personal training sessions or gym memberships at locations which look like a NASA astronaut training facility. Success in gym programs is more about eating well and doing simple exercises which well executed with good frequency.

There is actually an important human psychology associated with such behaviour in the gym. We think there is some kind of secret formula. That success is associated with a complex algorithm which we must try and find, unlock and use. That success in the gym is rare because it is difficult to know how to do it.  That when we find these special trick techniques, our success will come much quicker. That we’ll be transformed overnight.

As humans in the 21st century we have a preference for irrational complexity. We know the truth, but we’d rather pretend it isn’t so. We’ve been so shaped by the media and a lack of hands on experience that we often believe success is hidden behind secret walls. And so we look for get fit quick schemes (Get rich quick scheme anyone?) rather than a get fit slow routine, which requires a consistent diet and a lot of sweat.

It’s pretty much the same in startup land. There aren’t great deal of tricks out there either. The formula is hard work, a lot of sweat, serving customers well and using the age old business maxims which were written about by Adam Smith over 200 years ago.

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Niche Marketing & Startups

Once upon a time I used to think that entrepreneurs had to be smart enough to develop a niche strategy. A nice smart strategy which will keep them hidden from the big ugly and powerful incumbents and other startups. A strategy to extract sneaky revenue.

I learned how wrong I was the hard way. I was way to clever with my first startup 1-bil (an anti stress drink). We developed an incredibly clever niche distribution strategy aiming for 5 star hotels, business class travelers on airlines and airports. What we called a ‘sneezer strategy’ of niche distribution to grow from. The category influencers.

Anti stress drink

Turns out niche strategies limit the number of doors we can knock on. It limits the number of people we can sell to. It limits the angles of success we can have. It limits the number of rejections we can have (and we’ll get plenty) When we get a rejected from our core strategic market, we lose confidence, we count how many points of distribution we have left and start to struggle and lose faith. We invent our own failure.

The niche market is great for well resourced companeis doing innovative stuff. Not so for startups. It’s very counter intuitive. Entrepreneurs need to learn the truth about niche marketing. And the truth is this:

Gaining traction with any new product or company is inherently difficult. We ought sell to anyone who’ll buy our stuff. Get the message out to as many people as possible. Take all the revenue we can get and what will transpire is a niche strategy anyway due to natural startup dynamics. We’ll get rejected 9 out of 10 times on average. We’ll end up in a market niche, from which we’ll have to grow and expand from anyway. Starting with a niche in mind, really just limits our probability of success.

The startup lesson is this: Find your niche through market dynamics, don’t target it.

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