Andreesen Horowitz on Product Market Fit

Posted by Andy in Entrepreneurism and tagged with , , ,

Andreesen Horowitz recently syndicated an article written by Tren Griffin of 25iq.com. The topic was Product Market Fit, and Griffin does an outstanding job of detailing 12 important points, drawing quotes from some of Silicon Valley’s biggest names.

You should read the whole article here or here, but I’ve put together a quick 30 second synopsis. I highlighted some of the points that resonated with my personal experiences over years of marketing B2B and B2C products. I think it’s easy for many of us to forget some of these high-level concepts when we’re grinding it out in the weeds.

(Note: Bold headlines are my personal takeaways, and the quotes are straight from Griffin’s article.)

  1. The Market always wins. “When a great team meets a lousy market, market wins. When a lousy team meets a great market, market wins. When a great team meets a great market, something special happens.”
  2. All the marketing tactics in the world – pricing, branding, lead nurturing, content, etc – are useless if no one needs the product. “If you address a market that really wants your product — if the dogs are eating the dog food — then you can screw up almost everything in the company and you will succeed. Conversely, if you’re really good at execution but the dogs don’t want to eat the dog food, you have no chance of winning.”
  3. If you take your blinders off, you can usually know if you have a fit without looking at the numbers.“You can always feel when product/market fit isn’t happening. The customers aren’t quite getting value out of the product, word of mouth isn’t spreading, usage isn’t growing that fast, press reviews are kind of ‘blah’, the sales cycle takes too long, and lots of deals never close.”
  4. You have a product market fit if you don’t actually need to market the product. “You know you have fit if your product grows exponentially with no marketing. That is only possible if you have huge word of mouth. Word of mouth is only possible if you have delighted your customer.”
  5. The market will tell you when you have a product they want, not the other way around. “In a great market — a market with lots of real potential customers — the market pulls product out of the startup.”
  6. The “Idea” is 5% of the battle. You win when the idea you want to build evolves into the product the market wants to buy.“First to market seldom matters. Rather, first to product/market fit is almost always the long-term winner.”
  7. You never win at launch. You win when launch turns into scale.  “Getting product right means finding product/market fit. It does not mean launching the product. It means getting to the point where the market accepts your product and wants more of it.”

I’m sure everyone will takeaway something different from Griffin’s article. Give it a read and let me know what you think.

Will John Kasich Challenge Trump in 2020?

Posted by Andy in Politics and tagged with

I was scrolling through some morning shows on Sunday and stopped when I saw a familiar face I had forgotten about. There was John Kasich live on CNN from the Munich Security Summit.

Election 2020 was still on my brain from a discussion I had earlier in the week about Mark Cuban. An idea crossed my mind. So I reached out to my left-leaning political expert in Phoenix to get his thoughts. We were in lockstep agreement. And then I turned to a right-leaning friend in Seattle. And he agreed with me as well.  Once is an occurrence, two times coincidence, three times a trend.

Here’s what we were thinking. John Kasich will run against Trump for the 2020 Republican Nomination. This is why it’ll happen and why he’ll win.

  1. It doesn’t happen often, but it’s not unheard of in years when the sitting president seems vulnerable in the General Election. In 1976 Reagan ran against Ford in the Republican primaries. In 1980 Ted Kennedy ran against Jimmy Carter in the Democratic primaries. In 1992 Pat Buchanan challenged H.W. Bush. Each sitting President survived his primary but lost the election to a challenger from another party.
  2. It’s unlikely any GOP Senators and Representatives will challenge a sitting President of their own party. Running as an outsider is one thing. Dividing your own Congress – when you already have a majority – is not a smart political move. Kasich is a Governor. He has nothing to lose by challenging for the nomination.
  3. His liabilities in a 12 person race are minimized in a 2 person race. For all his strengths, charisma is not one of them. And while Cruz and Trump were trying to out-nasty each other, Kasich became an afterthought. He could not get enough attention in a wild and crazy circus. He was like the smart guy at a party where people were doing kegstands and jump off roofs into pools. No one notices the smart guy. But in a race against Trump, the narrative changes. It’s now Good vs Evil and he’s the super hero wearing the cape. He gets to own the “anti-Trump” side of the Republican Party just for being able to breathe. Then he has a puncher’s chance at going after Trump voters because…
  4. The people in the states where won Trump the Presidency will either be richer or poorer than when they voted before. If they’re poorer, they’ll switch in a heartbeat. They will have no allegiance if their situation is no better than it was previously.
  5. He can lob subtle grenades from the sideline. Again, while people like Cruz, McConnell and Ryan have to somewhat toe the line with support for the President, Kasich does not. He can spend the next three years setting up his policy attacks with a media that might like to have a friendlier person to work with.

Thoughts? Objections? Agreements? Email me.

Mark Cuban 2020?

Posted by Andy in Politics and tagged with , ,

Mark Cuban set about to troll President Trump, in what was surely the only newsworthy event from the NBA’s Celebrity All-Star game.

Source: USA Today

But wait a minute, does a Mark Cuban presidency make sense? Have the times changed so greatly, that this something we should consider? Let’s speculate a little for fun.

  1. He’s not beholden to a single ideology. Cuban has self-identified as a Republican. Living in Dallas, that makes perfect sense. But he also has called himself fiercely independent and supported Hillary Clinton in 2016. So while so many want to force people into binary positions of Democrat or Republican, it’s fair to say that Cuban has pro-business values while also respecting the social causes and rights of all Americans. That’s a pretty good set of qualities for a leader of the free world.
  2. He identifies with everybody. He’s a Billionaire who really did scrap and claw from a middle class upbringing. He became a reasonably successful millionaire, then managed to see the future, leveraging some simple technology deals into a $6 billion payday for his company. He is the guy the middle class high school student can look to and say, “I can do that too.”
  3. He’d be able to assemble an incredible cabinet and set of advisors. Cuban runs in entrepreneurial circles, regularly engaging with the best and brightest minds around. But he’s also part of the business establishment, being part of venture capital groups and working with the key influencers in many industries. And most importantly, he seems to value the input and opinions of others to help him make his decisions. That’s someone who could recruit a top-notch team.

So, could he win?

Well, that would probably be up to the Democrats in power today. Will the DNC have the same pollsters and strategists who mishandled the Clinton campaign running their 2020 program? So for the sake of argument, let’s say the DNC didn’t get in the way of a populist Mark Cuban campaign in the primaries and just let it play out.

Primaries:

I don’t know enough to know who the leading Democratic challengers will be. I assume Elizabeth Warren will be a front runner. So let’s focus the conversation on Cuban vs Warren and a bunch of wild cards.

  1. Cuban has his own financial resources and doesn’t need to rely on donations from fringe groups. He can buy a talented team and build a ground game. I don’t know if Warren could raise the same amount of money.
  2. He’ll win Texas, and probably all the midwest and rust belt states that Obama and Trump won. That’s a good starting point.
  3. Can he take Warren in New York, California and Florida? I don’t know.
  4. I don’t think he has an issue with women voters. He seems to have mainstream appeal across all genders.

General Election:

  1. There will never be an election in which more Democrats come out to support whoever is running against Trump. So he’ll have that going for him.
  2. After 4 years of being beaten up by Trump, every media outlet in the world would be giving Cuban free air time.
  3. He can be a unicorn – a Democrat who wins Texas. Assuming Democrats also win New York and California, he’s almost halfway home at that point.
  4. Then he wins the middle of the country, the people who didn’t get what they were promised by the current President.

It’s a far out scenario, but reasonable at the same time. The question is if it’s a job he’d actually want.

Stories You Missed – January 2017

Posted by Andy in Marketing and tagged with ,

We all can’t read everything, and our Facebook feeds are now overrun with political arguing. So to make things easy for you, I’ve assembled some of the stories from last month about tech, marketing, sports and Seattle that you may find interesting.

  1. Three Sounders FC Departments Honored with 2016 MLS Club and Executive Awards: Congrats to the team members who don’t wear jerseys. Sounders FC tied for the lead among all clubs with its three awards: Corporate Partnerships Team of the Year, Marketing Team of the Year and Public Relations Team of the Year. I don’t know how these awards are judged, but if you enjoy your time at Sounders games, these groups probably play a big role.
  2. After Buyouts, Layoffs, 23 Staffers Exit ‘Seattle Times’: Well if you think that the national newscasts are a series of partisan wonks arguing talking points back and forth, then you won’t like this article. The newspapers still can’t figure out a business model, which means more cuts to local journalists. If you have an idea for how to save local news, you’re running out of time to share it.
  3. Dramatic video footage shows drone circling and then crashing into Seattle’s Space Needle: Well I guess this is why we can’t let everyone just fly their drones around all the time…
  4. The latest Amazon-occupied building sale shows how far Seattle real estate has come in last decade: If you think your house or apartment is expensive, imagine trying to buy an office building in Seattle these days. One of Amazon’s 290,000 square foot office buildings just sold for $269 million – or about $925 a square foot. That compares to $1.85 Million for your 2000 square foot house.
  5. Venture Investment in Seattle Area Companies Falls 27 Percent in 2016: It was a mixed bag of news about how much money investors poured into Seattle companies in 2016. On the downside, for the full year, investors poured just over $1.5 billion into 282 local deals, down 27 percent and 23 percent, respectively, from 2015. But on the upside, the fourth quarter of 2016 saw 77 local deals completed, totaling $561.3 million, compared to 81 deals totaling $190.6 million in the same period of 2015, and the final six months of 2016 saw a combined 157 deals, up 26 percent from the first half of the year, and $919.7 million invested, up 58 percent.

Oh and the Seahawks lost. But we don’t need to rehash that.

Have a good story to share? Email me and let me know.

Should We Provide Free College Tuition

Posted by Andy in Uncategorized and tagged with , ,

I’m seeing this topic brought up more and more. College is too expensive and even the middle class can’t afford it anymore. And those who come out of school with a mountain of debt will never be able to own a house, much less have enough discretionary income from the low paying jobs they’ll earn with their degree.

So the easy answer is to make college cheaper – or even provide college for free. It works in countries like Sweden, so could it work here?

Well the 1st thing that would have to happen would be a gigantic increase in taxes. Someone still has to pay the professors, administrators, janitors, etc… who make the school run.

But suppose in the short-term, we had a hybrid model that solves a specific problem for one sector of U.S. Business.

Let’s provide education that is free – but on loan – to people who choose to enter a track specific for math, science, engineering or computer programming. Here’s how it would work.

  1. Test into a program for aptitude or potential ability in the subjects, not existing grades or knowledge. Any age.
  2. Choose a specialized track includes some General Education but really focuses on the technical subject matter.
  3. Like the military, mandate required service time to pay off the loan. One suggestion: within 8 years of graduation, require 2 years of part-time teaching at a community college, high school or workshop level. This will help with the burden that we have a lack of professionals who can teach these subject matters. It also gives graduates a full 6 years to get their career situated and mature as adults who can mentor others.
  4.  If the graduate has made enough money to pay off the loan, they can spend money rather than time in service. That money would be able to hire others who wanted to teach.
  5. The tech companies would be asked to underwrite some portion of the project. You’d want to make the numbers work so that overall, the cost of recruiting technical talent would decrease even after their financial commitment. They’d be investing smart money to grow the labor pool rather than paying premium salaries and recruiting commissions in a battle for scarce resources.

I don’t know how the numbers would net out, but I’m not in government. Maybe someone will read this and see if the math works.

Any other thoughts? Email me.

A Conspiracy Theorist’s Predictions for the 2017 NFL Playoffs

Posted by Andy in Creative Writing, Sports and tagged with , ,

We all know the NFL playoffs aren’t rigged. But if they WERE being written by a team of storytellers in New York, here’s how it would go down.

Houston: No NFL team has ever won a Super Bowl in the year their city hosted the game. The host city needs the tourist revenue. So no Houston this year. 1st round out.

Oakland: Their QB is out so they should have no chance. BUT, that wasn’t supposed to happen. The NFL needs the Raiders to become America’s favorite team so that either Oakland or Las Vegas will build them a new Billion Dollar stadium. Oakland is going to the Super Bowl behind a rookie QB who has never started an NFL game. Cinderella plus history + need for stadium = NFL preference.

Seattle: This is a tough one. The NFL finally had a team full of interesting characters a few years ago. Richard, Marshawn, Earl, Russell, Kam, and everyone’s favorite grandpa coaching them. But then something happened and the storytellers saw their characters go off script. Beast Mode quit, the goody-two-shoes QB married 50 Cent’s ex, Earl got hurt and spoke of retirement, Sherman seems to have lost his cool. This isn’t a team the NFL loves anymore. This is the team that goes down inexplicably this year.

Detroit: The Cavaliers, Cubs, Indians, Donald Trump… notice a trend? The world is conspiring to provide some relief to the Rust Belt. Detroit gets a cinderella win this year, even though they stink.

Miami: No one cares about the Dolphins, including Miami. If a team loses a playoff game and no one in the city notices, did they actually lose? Doesn’t matter. 1st round out.

Pittsburgh: I’m pretty sure the Rooneys and Maras have a deal with the NFL that one of them gets to win the Super Bowl every 4-5 years. They also fit well into the Rust Belt conversation. I see them to the AFC Championship where they do what is best for the league and lose to Oakland.

Giants: The Giants vs Cowboys rivalry is going to be THE rivalry for the next 3 years. But it starts in earnest next year. This year is the appetizer where we learn how important the regular season will be to each team. The Cowboys get a bye, the Giants go down in the best game of the 1st round. OR, they win a few games and end up losing to Dallas in the NFC Championship where home field matters. This is a tough one.

Green Bay: Is it the end of an era? Or is this the transition year where Aaron Rodgers gets a new cast of characters to make great? Once Tom Brady is gone, Aaron Rodgers will have another 5-7 years. I think Green Bay gets a win but goes on a Super Bowl drought until Rodgers’ final year when he gets to have his Peyton Manning Swan Song. OR, they have to bow to New York and let the Giants vs Cowboys NFC Championship game take shape.

New England: Every year, they could be the team that wins it all. They’re the guys you know will get there one or two of every three years. And this year they are simply going to need to take one for the league and let Oakland get to the Super Bowl. It’s just good business sense to let Oakland beat them.

Kansas City: Blah. No one outside of Kansas City cares about Kansas City. A league that saw TV ratings go down this year needs a HUGE Championship weekend and Super Bowl. Neither of those lead to Kansas City success. Out as soon as possible.

Atlanta: The Falcons have managed to get tax payer money to get a new stadium built. That was rewarded with a trip to the playoffs. But the idea of Aaron Rodgers vs Dak Prescott is too good to pass up.

Dallas: GOD the NFL needed Dallas this year. It’s a ratings bonanza. Kids love Dak and Zeke. Old guys love Dez and Whiten. This is NFL gold. Pencil them in to go all the way to the Super Bowl.

Round 1:

AFC: Oakland (5) over Houston (4) and Pittsburgh (3) over Miami (6)

NFC: Detroit (6) over Seattle (3) and Green Bay (4) over New York (5) (or vice versa)

Round 2:

AFC: Oakland (5) over New England (1) and Pittsburgh (3) over Kansas City (2)

NFC: Dallas (1) over Detroit (6) and Green Bay or New York (4 or 5) over Atlanta (2)

Championship Round:

AFC: Oakland (5) over Pittsburgh (3) in a classic AFL battle that makes the old people happy.

NFC: Dallas (1) over Green Bay or New York (4 or 5) in a classic NFL battle that makes old and new young people happy.

Super Bowl: TBD.

 

My Facebook Feed’s Predictions for 2017 (Part 1)

Posted by Andy in Uncategorized

It’s the time of year when I get to reflect and think about the years immediately behind and ahead of me. I like to try to make some predictions to myself; not for clickbait or blog views, but so I can try to avoid being in a state of surprise and reaction as the year unfolds.

This year, I don’t have to do that. Thanks to the election of Donald Trump, I can simply look at my Facebook feed and see what everyone believes will happen. Between my friends and the media, 2017 has already been decided. So according to Facebook, here are some things the consensus has agreed upon will absolutely happen.

  1. We’re all going to become Russians: Apparently we already are Russian, we just didn’t know it. Russia controls our elections and our President. The policies that will be implemented in 2017 will be strictly designed to benefit Vladimir Putin.
  2. The KKK will reign supreme: According to my Facebook feed, a Trump Presidency means that it will be gosh darn near socially unacceptable for me to associate with members of different races. It stinks that I suddenly won’t be allowed to hang out with my friends who aren’t white.
  3. The Supreme Court will have 3 new members who believe Hitler was too liberal: It seems to be widely agreed upon that a Trump Presidency will surely lead to a new Supreme Court makeup in which 2 older Democrats and an empty seat will be filled by people who hate freedom and promote persecuting personal freedoms. That is certainly disappointing.
  4. No one who makes less than $120,000 a year will have Health Care: From what I’ve read on Facebook, with the repeal of ObamaCare almost everyone will lose their Health Insurance, even people who have other types of Health Insurance.
  5. Nuclear war with China is imminent: Now this scares me a lot, but makes the rest of the list pretty irrelevant. I live on the west coast near a Navy base. We must be high on the early target list. So, I guess the other things won’t matter since I’ll be part of a giant mushroom cloud.

This all nets out to a pretty depressing look into 2017. But I like to be more optimistic than this. So I think my resolution in 2017 is to ignore Facebook and watch channels like Bloomberg instead.

My Unsolicited Opinions on the College Football Playoff

Posted by Andy in Big Businesses, Sports and tagged with ,

In no particular order…

  1. There’s an irony that we’re arguing about whether we need 2, 4 or 8 teams for a proper playoff. If this was the old days, Alabama would go win the Sugar Bowl, finish 14-0, and there wouldn’t be a discussion about it.
  2. You can’t make Conference Championships part of the parameters for making the College Football Playoff if the Conference Championship criteria is based on arbitrary regional divisions. Get rid of the divisions and have the best 2 teams in the conference play for the title. Otherwise the designation is just ceremonial.
  3. In the world of, “Things that would never happen,” I would actually prefer that all of the Conferences be constrained to 10 teams (taking us back to a Power 6) and that each Conference had a schedule where everyone played each other. Then you don’t need a meaningless Conference championship game because…
  4. …By the way, did anyone else notice that no one attended the Conference Championship games? Stadiums were 1/2 empty.
  5. So if you didn’t need Conference Championship games anymore, that weekend would be your 1st round of the 8 team playoff. 6 Conference Champions and 2 wild cards. Now that would be a fun weekend of football.

Ok, so if you implemented my plan, your top 8 this year would be something like: 1) Alabama (SEC champ)    2) Clemson (ACC champ)   3) Washington (PAC 12 champ)   4) Penn St  (Big 10 champ)   5) Oklahoma (Big 12 Champ)    6) Someone like Louisville, Pittsburgh, etc… (Champ of the new Big East)   7) Ohio St (Wild Card)    8) Michigan (Wild card).

Winners go on to the New Years Eve Final 4. Losers get to play in the other New Years 6.

Now that’d been an entertaining round of football. Once it was re-seeded, that weekend would have been fun to watch. Way better than having to slog through Florida, Colorado or Wisconsin posing their way in fake Championship games.

But again, no one asked me. So at least we get 4 really good teams. That’s better than nothing. Unless you are Penn St or Michigan…

A Possible Answer to Why NFL TV Ratings are Down

Posted by Andy in Big Businesses, Sports and tagged with , , ,

It’s being well documents that the NFL’s TV ratings are down. There are hundreds of explanations, from the poorer quality of play, a general disgust for the Commissioner, a weariness of all the concussions and injuries, or even backlash at the National Anthem protests. I’ll throw my supposition on the list – Fantasy Football.

I posit that the growth of Fantasy Football caused people who normally wouldn’t tune into a Jacksonville vs Cleveland debacle, got sucked into a few games to see what their QB or WR looked like in real life. The NFL had stars like Dez Bryant, Russell Wilson, Arian Foster, Marshawn Lynch and more. Guys who were on your fantasy team and were guaranteed to score a touchdown or do something cool every game.

But the game evolved. Teams stopped feeding running backs the ball 35 times a game. Instead of having one or two studs to watch on every team, coaches started implementing systems of running back by committee. Plus, wide receivers get hurt every week. Your average fan can’t keep track of the 2nd string tailback and 4th WR for the Lions.

So Fantasy Football becomes less interesting because your lineup has a bunch of guys you don’t care about. And then you add all the other reasons not to watch football, and you realize that there are a lot of other things to do on Sunday. And Thursday. And Monday. And whenever else the NFL is trying to cram a game down my eye sockets.

So too much football on TV + lower quality football + players no one cares about + a decline in the reason new people were watching other teams in the first place = apathy and depressed ratings. It will be interesting to see how the NFL responds.

What is Performance Psychology?

Posted by Andy in Human Behavior and tagged with , ,

Russel Wilson has one on staff. Most college and pro teams have several. But what does a Performance Psychologist actually do?

Elizabeth Boyer, PhD, describes it this way:

  • Develop strategies to build consistency and satisfaction in sport and life
  • Identify solutions for challenges and concerns.
  • Get support to successfully navigate set backs, injuries, and transitions.

You can learn more about this field by checking out her site, Northwest Performance Psychology.