So I’m a GM now :). Learning by writing is my thang so the next few posts will be about all things GM. Hopefully, fellow GMs and my core constituency of product folks will find this interesting and useful! The GM role in tech companies is a broad role that is accountable for a commercial (revenue and or profit) number. A GM has three levers of Product, Sales, and Marketing to achieve this outcome. Coming from a product and engineering background it was instructive to me to understand how sales and marketing differ from the product and engineering function. These are my observations/learnings from the few months on the job!
A16z’s Angela Strange has a very correct take on where financial services are heading. In the future, every company will need to offer financial services in order to compete. Complete vertical integration from click to purchase reduces the most friction for the user, which leads to the best customer experience which leads to a competitive edge. For companies, this is a source of extra high margin that can offset their low margin core business. It also makes the users more sticky – why go anywhere else? I recommend watching the entire presentation in full, very spot on where fintech is headed!
For the last post in 2019, I wanted to look back at this blogging experiment that I’ve been running. The initial impetus for the blog was to use it as a mechanism to get better at writing. I’ve found writing to be a great method to figure out If I truly understand something. As with everything practice makes perfect and blogging is how I practice!
Always ask great questions – that’s the hallmark of a good leader – Every leadership coaching session
If everybody asks questions – who’s got answers? – Me
This post is a rant.
The difference between strategy and tactics is the most misunderstood phenomenon. 90% of the time the two are conflated. I recently read (twice, its that good!) the book 7 Powers: The foundation of business strategy by Hamilton Helmer. I highly recommend getting the paper copy of the book to make notes on and see the visuals. I plan to write some posts applying some of the concepts to industries I’m familiar with, but for today I’d like to talk about a basic framework, two sentences that illuminate the difference between strategy and tacticsRead More »
In the last post, I highlighted that SMB’s are mostly a long tail business with a majority of the market at the smaller end of the spectrum. An insight that I did not appreciate going into this market is the amount of sensitivity to price. The statement that “There are three things that are most important in SMB, price, price and price” is 100% true! With most small businesses being small and not really in it to grow this price sensitivity makes a ton of sense. So if you are a startup in this space you come across an interesting squeeze.Read More »
Small Business is the biggest market in the US and this is the best place to start a company in
This is an oft-repeated quote in many pitch decks, sorry to inform you, dear reader, it depends. After spending a decade in the SMB space, I’ve learned a few things – what follows is an attempt to describe some myths and mistakes. Hopefully, you don’t fall into the same traps!
Myth #1: SMB market is huge in the US and is underserved. This represents a big opportunity
The huge number everybody trots out is ~30M small business in the USA, the engine of growth, big big market, main street America – AMURIKA YEAAAAAH. Alas in practical terms this is a long tail market. This data set from the SUSB is the best place to start. Just by looking at the distribution of firms by employee size it is clear that this is a long tail market. There are a large number of firms that are <10 employees.Read More »
I’m a big fan of frameworks, they help us categorize and make sense of the world around us. As you are building products, frameworks help you systematically approach the process. I’ve always been intrigued by Reid Hoffman’s quote that mapped consumer social products to the seven sins. This was a great framework to map a product strategy to a core human instinct, in this case, vices.
The brilliant odd lots podcast had Richard Koo on to discuss his theory of a balance sheet recession. The central idea is that when a credit bubble bursts and the private sector and consumers both start to deleverage it causes the economy to go into a demand loss spiral, which is a counterintuitive result. If excess leverage caused the bubble then deleveraging and repairing your balance sheet is the most rational individual choice, but this de-levering in aggregate is the wrong choice for the economy as a whole. I would highly recommend reading this paper that goes into some details and also reading his book.
The last post was about what to avoid, this post is about what you can do to make a migration successful.
Sequencing is key
With any large initiative, the natural impulse is to throw a lot of people at it. Avoid this impulse at all costs. At the beginning of the project, it is better to have a small team of your crack developers and senior engineers and PM’s to focus on building a skeleton of what the end state would be like.