

The Pmarca Guide to Startups, part 4: The only thing that matters (2007) - teej
http://blog.pmarca.com/2007/06/the-pmarca-gu-2.html

======
leecho0
Hey quick feature request for hn, can we have a tag thing for well written
pieces like these that are actually about startups as opposed to fluff pieces
that I can find on digg/slashdot/reddit?

------
Hexstream
Doesn't this fall down on its face as soon as you have a competitor with a
team or product significantly better than yours? I wouldn't base my strategy
on not having very much competition.

"In a great market -- a market with lots of real potential customers -- the
market pulls product out of the startup.

The market needs to be fulfilled and the market will be fulfilled, by the
first viable product that comes along.

The product doesn't need to be great; it just has to basically work. And, the
market doesn't care how good the team is, as long as the team can produce that
viable product.

In short, customers are knocking down your door to get the product; the main
goal is to actually answer the phone and respond to all the emails from people
who want to buy."

~~~
edw519
"Doesn't this fall down on its face as soon as you have a competitor with a
team or product significantly better than yours?"

No. For many reasons:

\- If they're significantly better, they won't be for long.

\- If the pie is big enough, there will still be plenty of business even if
your slice is relatively small

\- Imperfections in the market (friction) will give lagging competitors a
chance to catch up

\- Many commercial customers will buy anything but what their competitors are
buying. There _has_ to be more than one offering.

\- If the market is big enough, underdogs can still find their niche, which
may be bigger than entire markets for other products.

Bottom line: Lots of customers makes up for every other problem just like a
rising water level in a stream covers even the most jagged rocks.

------
staunch
Marc really needs to start writing again. Really really.

------
edw519
This highlights one big advantage of bootstrapping over taking investment.
Since you are being funded by customers, you're less likely to make a big
mistake by missing your market. If you're not making what the market wants,
you won't be around long enough to screw up that badly.

~~~
swombat
Not only that, but bootstrapping, and building a v1.0 that's the smallest
thing that's useful, and then iterating over that while listening to your
customers.

Basically, use the product development process as a way to find out about the
market. Basically, use it as a way to acquire what Eric Ries calls "Validated
learning about customers":
[http://startuplessonslearned.blogspot.com/2009/04/validated-...](http://startuplessonslearned.blogspot.com/2009/04/validated-
learning-about-customers.html)

