Why Technology Based Disruption Will Always Prevail
It’s hard to calibrate precisely, but, when you review the past startups, successes and failures among tech companies, the overriding pattern to me is that of standard deviation. Along with the number of absolute releases by a given team, it’s easy to predict success or failure. By releases, I mean publicly accessible, no holds bared, open to everybody kind of releases.
This isn’t some closed release, invite only scheme. Standard deviation and the number of derivatives away from the norm will always be a moving target, of course. And the appetite of the investment community around how many derivatives from the norm your plan needs to be to compete will always fluctuate, even if the optimal number has been previously established.
Given the atmosphere of competition, increasing tech savvy and related trends, it’s easy to see how investments will continue to play a major role in the digital landscape. The rare exceptions will be things like Craigslist or PlentyofFish where the business manages to grow and become something despite the crazy competition and massive resource inequality. When you raise money, it’s perfectly normal to start operating on the basis of the next monthly or quarterly meeting, and even out the personal style of the management team.
What are the commonalities among those startups who do well, or who are bootstrapped and achieve massive success?
There are a few keys in both of these situations, but, there is a primary key which trumps all others. I have seen so many companies win by simply having the most operational productivity, it’s a bit unreal. There are a few ways to measure this, from page speed when downloading the user interface to interacting with the application directly, the truth is, nobody ever wants a slow loading web page.
Despite the studies that showcase what the average customer experience may be, your business will never be at a disadvantage for investing in speed. Similarly, if your site is the only one in the category which offers 100% functionality with 25% less hoops, you will win over the long term, all else being equal.