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Living in an RV : Day 10

I've lived in my RV for 10 days now. I have only gone back to the condo to get clothes, and to sleep one night (basically I picked a loud parking spot that was 10 feet from the condo and it was 5am so I just went inside instead of driving to a quiet spot). A lot of things have panned out as expected, but there have also been some big surprises.

I could go on and on, but you probably get the idea. I totally love living in this RV. It's a great feeling to drive over to my mom's house and have her say "Oh, you didn't happen to bring those tickets, did you?" and to just be able to walk into my house and get them.

My parents are really into the RV thing, which is funny. They're always a bit skeptical about my schemes. My dad helped me take out the CRT TV and the Microwave which I replaced with a flat panel and a flash bake oven. My mom made me nice curtains. I'm trying hard to resist the urge to totally trick out the RV. The carpet smells a bit musty so I might put in granite tile or bamboo floors. I think that would be neat.

Optimizing Product/Market Fit: First Be Proactive. Then Be Reactive.

On DROdio

I just read this post about how the startup Level Up has raised $41MM but may now be running out of cash, and according to the article is down to half its previous employee count.  It got me thinking about a big mistake I see startups make, which is over-extending before finding true product/market fit.

I was well aware of this danger at Socialize, and we still made that mistake.  At one point in early 2012, we were up to 16 employees.  When we sold to ShareThis, we were down to six.  It's not that six employees was too few -- it was exactly the right number and type of employees for the stage of our company -- it's that sixteen was way too many.  We didn't absolutely need that many people to build and sell our product, even though we felt at the time that we did.  The six employees that ended up forming the core of our company in the year before we sold it were all very key employees and are incredibly productive, and that's what we needed to find product/market fit.  

So if a CEO is acutely aware of the issue and still falls into the trap, I can't imagine what the siren call of rapid expansion does to CEOs who aren't watching out for it.  But it is possible to get around it:  On the opposite side of the spectrum you see companies like instagram that sold for $1 billion with just a dozen employees.

So I've come up with a mental framework to optimize the outcome of a new startup dealing with this issue.

Daniel's Framework For Optimizing Product/Market Fit:

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