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.
With the consumerization of enterprise software can we do something similar? can we get derive a systematic framework that represents emotion in the enterprise world?Read More »
There is recession talk everywhere with tips on what to do. Time to put my hat in the ring 🙂 Following the scouts’ motto of “always be prepared“, how to go about planning? Where to start?
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Business success contains the seeds of its own destruction. The more Successful you are, the more people want a chunk of your business and then another chunk and then another until there is nothing ― Andrew S. Grove, Only the Paranoid Survive
So who should LiveNation be paranoid about? Who are its competitors?
As we saw the last post, LiveNation can be thought of a vertically integrated full-service live entertainment company. A comparable public competitor is the Madison Square Garden Company (MSG). They also describe themselves as the premier live entertainment company. Via their 10kRead More »
In the last post, I talked about getting into the habit of reading 10k’s. Time to dogfood my own advice :), for this post, I wanted to look at a completely new industry than the usual fodder. LiveNation is my first pick (NYSE:LYV). Latest 10K for 2018.
What are the goals of this exercise?
- Understand the business model and a bit about the industry the company is in
- What are the key growth levers for the business? What is the flywheel/network effect?
- Who is the customer? What are the customer groups?
- A brief look at the numbers
- And finally – What is the competitive advantage of the business?
So let us begin!Read More »