So, how do I learn to think differently? Your examples of what are an order of magnitude better, from my very technical point of view, really aren't that much better than the competition; for example: AirBNB has given me nightmares trying to stay at locations, whereas with a chain hotel I get a very bland, but very expected experience. I don't have individuals yelling at me because I didn't put a towel in a hamper. Cell phones with smart cameras don't come across as an order of magnitude better, at least to me. We regularly see professionals and hobbyists using, well, professional equipment. Is it an order of magnitude better because you simply don't need an added device in your daily, day to day life? Do you see where I'm struggling here? I guess my problem is that I see "order of magnitude better" as this gigantic leap forward, but the examples given all seem relatively minor and straightforward (and very very logical progressions). Otherwise, I understand what you're saying: be better than the best and you'll get investors knocking at your door, instead of you knocking at theirs.
The point is there are multiple axes that you can become an order of magnitude better - product, price, distribution, overall business model, brand, etc. IMHO you learn to think differently by asking yourself "how can I be an order of magnitude better, not just marginally better?" I heard a startup pitch me today saying "our solution is marginally better." Literally, that's what they said! And I immediately thought that unless that "marginal gain" is something that means 10x to your customer, you're going nowhere. Hope that helps.
These companies focused on the average Joe's perception of 10x (as they are the largest segment) and not professionals. For the average joe the improvements were enough to get them to switch. You don't need to impress everyone, just the majority
Great content as usual! I think the "10x" consideration should be reflected in the startups vision as well as especially taken into account, when it's about the product market fit and related switching costs. Regarding the adaptation of something that fits into the stated description, one of or clinical partners once said: The advantage of being ahead of the competition also comes with the obligation to pick up the market at its current state of the art. - Which I think is a good transition to the market entry strategy. By the way, smartphones already got 5 cameras? WTF? :)
Does the order of magnitude better need to be quantifiable? Can I have my offering being an order of magnitude better in terms of intangibles like better control or peace of mind, with evidence of that emotional benefit?
Hi Steve. Although I'm just 14, I know a lot about the startup industry and I also have dreams of launching my own Startup, especially in the EV industry. But by the time I expect to start working my idea, I believe the EV market would be WAY more competitive than it is now, if the order of magnitude of my product is good enough, do you think my startup could even become better than those big names out there? ( I expect to establish my company in 2035, in England)
Yep. Totally understand. And think about how that's like a lot of customers. "Sorry, I don't have the budget." But I've seen many circumstances that if the startup can deliver breakthrough gains, people find the budget and make it happen.
Is it right to pitch an investor when you can explain them that u can't start the startup without their money , basically u need funds just to get start
Not really. You need to explain the big problem, the solution you are thinking about, and evidence that people care deeply about the problem/soultion. Watch more Doses particularly around meeting with Customers and Understand Assumptions.
@@stevebarsh7727 Exactly my point what if i can explain every point of yours to them , but that's the thing we cannot start anything without funding . So now cam we pitch
@@classicalchirag1478 What evidence do you have that the idea will work? You usually need little to no cash to start generating evidence. What's your "hypothesis?" Whare are your critical assumptions you will be successful? This video may give you ideas on how to come up with answers using little money -- ruclips.net/video/zrPY9r2WKEU/видео.html&ab_channel=Dreamit
Phone example is not correct. Correct example should compare same priced phones. If one is a bit better, surely it is huuuge benefit. They do not buy flagship phones not only because they are only marginally better, but also and mostly because they cost 2, 3, 4, 5 times more.
Hi, thanks for sharing! I would like to know how to find out if the order of magnitude of my product is really 10x better if it automates a system that is currently performed manually? How can we estimate if others have not solved the problem as yet? Should we estimate based on future competition? Or should we just focus on overall benefits of automating the system?
Estimate against what’s out there today - either manual or automated. And be careful to gauge exactly HOW you are an order of magnitude better for the customer or user? 10x faster? 10x cheaper? 10x better because of a huge benefit delivered? Thx for watching!
This channel has become my go-to resource for quality info as a new founder. It’s helped so much in crafting my early pitches
Glad to hear it. Thanks for watching!
Getting ready to pitch in 15 min! Going to use OoM in my pitch! Wish me luck....cover me....I'm going in!
How did it go?
How did it go
I like the phone analogy.
Cool. That's a Dreamit fav example. Thanks for watching!
So, how do I learn to think differently? Your examples of what are an order of magnitude better, from my very technical point of view, really aren't that much better than the competition; for example:
AirBNB has given me nightmares trying to stay at locations, whereas with a chain hotel I get a very bland, but very expected experience. I don't have individuals yelling at me because I didn't put a towel in a hamper.
Cell phones with smart cameras don't come across as an order of magnitude better, at least to me. We regularly see professionals and hobbyists using, well, professional equipment. Is it an order of magnitude better because you simply don't need an added device in your daily, day to day life?
Do you see where I'm struggling here? I guess my problem is that I see "order of magnitude better" as this gigantic leap forward, but the examples given all seem relatively minor and straightforward (and very very logical progressions).
Otherwise, I understand what you're saying: be better than the best and you'll get investors knocking at your door, instead of you knocking at theirs.
The point is there are multiple axes that you can become an order of magnitude better - product, price, distribution, overall business model, brand, etc. IMHO you learn to think differently by asking yourself "how can I be an order of magnitude better, not just marginally better?" I heard a startup pitch me today saying "our solution is marginally better." Literally, that's what they said! And I immediately thought that unless that "marginal gain" is something that means 10x to your customer, you're going nowhere. Hope that helps.
These companies focused on the average Joe's perception of 10x (as they are the largest segment) and not professionals. For the average joe the improvements were enough to get them to switch.
You don't need to impress everyone, just the majority
Wonderful, when you used the phone example that was a masterstroke of explanation
So glad that resonated with you! Thx for watching!
any suggestions for wording this for energy generation?
Great content as usual!
I think the "10x" consideration should be reflected in the startups vision as well as especially taken into account, when it's about the product market fit and related switching costs.
Regarding the adaptation of something that fits into the stated description, one of or clinical partners once said: The advantage of being ahead of the competition also comes with the obligation to pick up the market at its current state of the art. - Which I think is a good transition to the market entry strategy.
By the way, smartphones already got 5 cameras? WTF? :)
All good points. 5 cameras - crazy!! Thanks for watching (again!)!
I'm from India..ur content outstanding
Thanks for the great information on this video, definitely will help us to improve the way we pitch our product for customers/investors
Glad you found it helpful. Thanks for tuning in!
Thank you .
You're welcome. Thanks for watching! - Steve
Does the order of magnitude better need to be quantifiable? Can I have my offering being an order of magnitude better in terms of intangibles like better control or peace of mind, with evidence of that emotional benefit?
I'm sorry. I use uber and airbb. They never were 10x cheaper. Uber is more expensive in NYC most of the time. Please explain. Thanks
Hi Steve. Although I'm just 14, I know a lot about the startup industry and I also have dreams of launching my own Startup, especially in the EV industry. But by the time I expect to start working my idea, I believe the EV market would be WAY more competitive than it is now, if the order of magnitude of my product is good enough, do you think my startup could even become better than those big names out there? ( I expect to establish my company in 2035, in England)
Perfect..
Gracias! Thanks for watching!
Great
Glad you liked it. Thanks for tuning in!
That order of magnitude idea must be really discouraging for most startups. That's a tough metric.
We’re an order of magnitude better at speed of processing, because our customers care about speed of training and inference in neural networks.
You do not need to be 10x better priced. In many cases even 2x better prices us huuuuuuuuge advantage.
U know why i dint purchase new one? Not bcz i dont want to upgrade. But i dont have enough money for it
Yep. Totally understand. And think about how that's like a lot of customers. "Sorry, I don't have the budget." But I've seen many circumstances that if the startup can deliver breakthrough gains, people find the budget and make it happen.
@@stevebarsh7727 Ya.agreed
Is it right to pitch an investor when you can explain them that u can't start the startup without their money , basically u need funds just to get start
Not really. You need to explain the big problem, the solution you are thinking about, and evidence that people care deeply about the problem/soultion. Watch more Doses particularly around meeting with Customers and Understand Assumptions.
@@stevebarsh7727 Exactly my point what if i can explain every point of yours to them , but that's the thing we cannot start anything without funding . So now cam we pitch
@@classicalchirag1478 What evidence do you have that the idea will work? You usually need little to no cash to start generating evidence. What's your "hypothesis?" Whare are your critical assumptions you will be successful? This video may give you ideas on how to come up with answers using little money -- ruclips.net/video/zrPY9r2WKEU/видео.html&ab_channel=Dreamit
Tam can be used while considering how much funding do u need??
@@classicalchirag1478 No, not really. TAM just shows that you can build a big company as you are going after a really big market.
Phone example is not correct. Correct example should compare same priced phones. If one is a bit better, surely it is huuuge benefit.
They do not buy flagship phones not only because they are only marginally better, but also and mostly because they cost 2, 3, 4, 5 times more.
Hi, thanks for sharing! I would like to know how to find out if the order of magnitude of my product is really 10x better if it automates a system that is currently performed manually? How can we estimate if others have not solved the problem as yet? Should we estimate based on future competition? Or should we just focus on overall benefits of automating the system?
Estimate against what’s out there today - either manual or automated. And be careful to gauge exactly HOW you are an order of magnitude better for the customer or user? 10x faster? 10x cheaper? 10x better because of a huge benefit delivered? Thx for watching!