(Lack of) Speed Kills

I’m working with an entrepreneur who has developed software that helps enterprise-level companies save time and money. She believes that she has the best product on the market and based on the feedback I have heard from others, I don’t doubt her. For about the past year, I have tried to get her to focus on speed and I think it’s finally sinking in. Allow me to explain.

For several months I’ve been suggesting to her that she puts most of her focus on sales and marketing. Her product is done, but as with any software product, it is never really done. And since she is a perfectionist, she wants the product to be perfect. If there’s one thing I have learned from meeting so many successful entrepreneurs (especially those in web-based businesses) it is the philosophy of ready, fire, aim. Those that wait to aim before firing are lucky if they get acquired for scraps by a company that fired as soon as they had the chance. Don’t get me wrong, I think that a quality, functioning product is critical—but if you keep waiting to market the product until it is perfect, the world and opportunity will pass you by. 

When I met with her recently, she told me about a new entrant to the market. Her early assessment was that their product was not as good as hers. I believed her but, I told her, it really doesn’t matter. You see, she believes that this new entrant raised money which, even with an inferior product, puts them at a distinct advantage. She has had opportunities herself to raise money, but she wants to wait until she has more traction (e.g., trials, sales) so that the valuation will be better. I have been suggesting not to wait to raise money and now, with this new competitor, I believe that she is starting to understand why.

Her new competitor can now hire salespeople who can get meetings, some of which will turn into sales. They can also invest in advertising and other marketing, such as PR, which will ensure that their solution is known by the targeted audience.

So if we fast-forward to a year from now and my budding entrepreneur is now getting in front of prospects, she is likely to hear something like, “Um, yes, I do think you have a better product. But we already started using your competitor and I really don’t see us switching. But good luck!”

Sometimes it’s about the sizzle, not the steak.

And almost every time, the fastest one wins.