Don’t Forget the Big Green Button… and Other Entrepreneurial Advice
By: Pierre-Louis Bescond
Tags: Lessons Learned, Startup Lessons, Entrepreneurship, Frenchtech

Entrepreneurship is probably the hardest path when it comes to a professional career. Many are called, but few are chosen. I interact with both large companies and early start-ups on a daily basis and I have observed some contradictions in the way some start-ups are developing their business model which, undoubtedly, lead them to bankruptcy.

With many tech incubators and a few brilliant unicorns, France has a dynamic environment for entrepreneurs, but it sometimes leads these young companies to a dead-end in fast-track mode!

Three deadly mistakes I usually see are:

#1 Forgetting the “B.G.B.” (Big Green Button)

Do you know what is great with photocopiers? 99% of the time, you only need one simple copy of a document and the “Big Green Button” is your path to get it.

Step 1: Put your document in the photocopier

Step 2: Press the Big Green Button

Done!

Start-ups are mostly built on one (supposed) killer feature; this is the core of their engine, IP, value proposal, etc.

But sometimes, by trying to match early customers' demands, this killer feature gets lost. Here is an example of how:

You are a young entrepreneur who has created a beautiful and simple app to generate inspection reports aimed to field workers. Before using your app, internal auditors, inspectors, supervisors had to take pictures with their phones, write comments on a notepad and, back to their desk, assemble all of this material into a document before transmitting it. And it did not feel effective... at all… It takes time before the report is ready, some information is forgotten as time goes by before the report is issued, etc. So you designed a simple app that allows users to: * create a new report

* insert pictures on the go

* instantly link comments to the picture

* send it to your mailbox for a last review before sending it widely Plain Simple! Big Green Button principle! And your first beta-testers love it! So do your first clients! And they are so happy with it than they start to think of some “cool features” that would ease their work: “It would be great to add a speech-to-text functionality!”

“Can we add the GPS location of where the pictures are taken?”

“Could we use an API link to our ERP to add customers information?”

“Can we add some kind of report workflow approval system? … and it would be nice to get a chat system so people can comment the document during the review process!” And the list goes on… And you are happy to include all of these functionalities to please your early customers! And your simple and beautiful app has become: A MONSTER!

It has become an app where the true “killer feature” is now lost in a mess of average functionalities and this is how new potential customers will understand it.

#2 Chasing rewards instead of Customers

Photo by Sung Jin Cho on Unsplash

“We won the 1st prize of [insert Big_Corporate_Name] Innovation Program and ranked in the Top 3 of an [Even_Bigger_Corporate_Name] hackathon.” “I was part of the 30 under 30 by Forbes on Tech Disruptors.” “We have [insert the name of a more or less famous data-guru living in his mother’s garage in San Francisco] as part of our board of investors.”

Yes, awards and famous names bring visibility to your project and even some kind of confidence for potential investors or clients but they never convert into profitability in the long-term.

I remember having early discussions with a start-up that had a few (if not only one!) clients. They have been pitching their technical solution during a dedicated session and I was a firm believer we could implement their product in our Group, worldwide.

We entered into discussions. The feeling was great and they came to visit our plants to assess the feasibility with their existing prototype: early-stage results were promising and both parties were really looking forward to this partnership! (aka “The honeymoon period”)

It was now only a matter of getting a commercial offer for a first device and then test it in real conditions before we would order larger volumes. Start-up: your call!

And we waited… waited… a lot… we sent reminders… and almost begged to get an offer…

Myself, waiting, circa 2020, not colorized ;-)

During this “waiting period”, this start-up was showing at every possible tech event, getting prizes, pitching relentlessly how great their solution was, posting on LinkedIn and Twitter how successful they were.

Three months later, they called me back to see if we were still open to test their solution but, as you can guess, some other players entered the game in between:

A “Worldwide_reputed_electronic_company” (yes, it does not sound as sexy as a start-up) approached us with a solution that was technically not as evolved as the start-up one but we had a commercial proposal within 48 hours, a 6 weeks delivery promise and all the support we were requesting for tests in situ to make the trial successful.

It did not take long before the start-up went bankrupted and stopped posting on Twitter and LinkedIn...

French culture and professional environment do grant a lot of credit to diploma and it reinforces the wrong belief that prizes will undoubtfully and ultimately lead to profit. It does not!

My two cents on this example: “Big_Corporate_Companies” organizing this awards system are the real winners:

They do not spend much compared to their financial capacity (in some cases, they might even claim for taxes rebates as they support R&D work)

compared to their financial capacity (in some cases, they might even claim for taxes rebates as they support R&D work) They are the ones who get a lot of visibility … think of all the start-ups which are posting on every possible media how happy they are to be part of the event.

… think of all the start-ups which are posting on every possible media how happy they are to be part of the event. They spot talents who, for their vast majority, will be looking for a job in the months to come (aka “personal pivot”).

who, for their vast majority, will be looking for a job in the months to come (aka “personal pivot”). They identify the best ideas and even absorb the most promising (and threatening!) projects.

When I asked the “Forbes 30 under 30 tech disruptor” how many products he had sold before closing its project, the answer was under 30 as well: 2! (no kidding!)

#3 Believing they are the first ones to have this idea

Photo by KS KYUNG on Unsplash

Most of the start-ups I know are perfectly aware of the competition around them, knowing every flaw of their challengers’ solution to point out how good their own proposal is.

But I am sometimes amazed to see the kind “tunnel vision” of some start-ups when they enter the market.

I remember getting in touch with a young entrepreneur through my alumni network. He was really reluctant to share what is project was about before we would meet in person so I was expecting a true, disruptive solution!

We meet at the incubator where he is currently working and he ends up showing me his revolutionary idea: a virtual business cards app! (no need to say that it was not the actual concept but let’s pretend it is!)

He is persuaded that there is a true business model beyond simplifying the exchange of professional contact details. Well, maybe… but the most important part is that I know quite well the incubator where he is working and I gently ask him if he is aware of what “B-Cards”, another start-up two floors above his level is developing?

He has no clue as he has been focusing on his project for the last 3 months to get a first MVP. Needless to say that “B-Cards” has developed the very same concept with an already fully-functional app, some first clients, etc. Only two levels above him!

And, believe me or not, I am always surprised to see how some start-uppers can be so focused on their idea that they do not explore the existing competition. Sometimes, they feel that their technology or idea goes beyond the existing solutions on the market but, from a client’s perspective, you really need to disrupt a concept to actually sounds different.

And, again, do not get me wrong, I wanted to share these experiences to spread some awareness for young entrepreneurs. I understand how hard it is to launch a business and I felt I could help a little on this difficult journey!