Start-ups vs. Established Businesses

(Established) Businesses are all about 3 fundamental things:

  1. Production (be it building hardware, software or whatever),
  2. Operations (i.e. administration, human resources, management) and
  3. Marketing and Sales

Money is made in ONLY step 3 (Marketing and Sales). Operations is ONLY about moving (effectively and efficiently) from Stage 1 (production) to Stage 3 (Marketing and sales).

Start-ups are also quite similar but different in ONE key aspect from established businesses:

  1. Production,
  2. Operations, and
  3. Learning & Discovery (of customers & market)

The customers are unknown in start-ups and as Steve Blank in “The Four Steps to the Epiphany” asserts the emphasis for start-ups in early phases MUST be on Learning & Discovery (of your market, your customers, what problems they TRULY value and so on).

Only after a start-up has truly figured this one out, does it transit to Marketing and Sales.

Hazem Awad

www.hazemawad.com

 

Want to make a successful startup?

Doing a startup is a process and the process for success is well known. There are still many, many uncertainties and challenges and that is why startups are so exciting. 

  1. http://blog.pmarca.com/2007/06/the_pmarca_guid_1.html
  2. http://blog.pmarca.com/2007/06/the_pmarca_guid_2.html
  3. http://blog.pmarca.com/2007/06/the-pmarca-gu-1.html
  4. http://blog.pmarca.com/2007/06/the-pmarca-gu-2.html
  5. http://blog.pmarca.com/2007/06/the-pmarca-gu-3.html
  6. http://blog.pmarca.com/2007/07/the-pmarca-guid.html
  7. http://blog.pmarca.com/2007/07/why-a-startups-.html
  8. http://blog.pmarca.com/2007/08/the-pmarca-guid.html
    http://blog.pmarca.com/2007/08/the-pmarca-gu-1.html

 Hazem Awad, www.hazemawad.com