Michael Seibel: Building Product

(Supplement to +The 5 things that kill startups)

Preface

JustinTV made a lot of mistakes, but there were 3 things that allowed them to survive:
  • Founding team was extremely technical, not intimidated by any challenge, able to build fast
  • Didn’t spend a lot of money, very low burn
  • Egos were highly tied to the startup, wasn’t just a “resume item”, felt it reflected their overall life success

What problem are you solving?

  • Most founders just want to talk about their idea
  • But they don’t know why, they don’t know the problem they’re actually solving
  • Pretty early on you need to figure out: “what are we doing, what do we want the result to be?”
  • Most founders have a vague sense of the problem or the solution, but it’s important to nail this down

Can you state the problem clearly?
  • If you can’t state it in 1-2 sentences, you’re doing it wrong

Have you experienced it yourself?
  • Not required, but certainly helpful
  • This is a great hint that you’re onto something

Can you define your problem narrowly?
  • When you get started, you can’t solve this problem for everyone 
  • Who can we help first? Often founders want to skip this step, and solve the “mega-problem”
  • How can validate that this is working?

Is the problem solvable?
  • Example: Poppy was trying to solve “Uber for babysitters”
  • Problem: it’s hard to find babysitters parents trust for infants
  • Problem: the people parents trust to take care of their infants are usually nannies who already work a lot and get paid well
  • Therefore, the supply of potential workers that could solve this problem is very low

Who is your customer?

  • Can’t understand the problem you’re solving until you know who you’re solving it for
  • The answer can’t be “everyone”
  • Even though there are products that “everyone” uses now (e.g. Google), there was a time when this wasn’t the case
  • Who is the ideal first customer? If you don’t have a good answer to this question, you have no idea who you should talk to in order to learn more about this problem
  • A lot of founders build something as if they’re writing a creative novel, with no interaction with anyone on the outside — don’t do this!

How often do they have the problem?
  • Example: car-buying websites — the customer is actually the car seller, not the buyer

How intense is the problem?
  • If you have an infrequent and low-intensity problem, you’re gonna have a lot of trouble finding people who want what you’re building

Are they willing to pay?