Fast and cheap and unsuccessful

New entrepreneurs. Committed to a diet of macaroni, peanut butter and cases of Mountain Dew for late night 'ideation' sessions. They tell me they're going to be better... because they're faster and cheaper. 

Copying what has been done before in a way that is faster or cheaper is a formula for long-term failure.

Faster and cheaper is not better. Better is better.  

Instead, the success formula is a disruption - a new way to look at things, a new way to define your market. Faster and cheaper is a natural order of established markets, so start-ups dedicated to this proposition will be overrun. Even if you go 'all-in', spend all the angel's money, live a life of sleep-deprived sacrifice to build the mousetrap, there is no guarantee of success if all you are chasing is a faster or cheaper way to do an old thing. Faster and cheaper are only useful long-term when they are outgrowths of the new and differentiated.

If all your new idea offers is a faster or cheaper way to do an old thing, think again.  

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On worry and inaction

Jeremy Kloubec, a former colleague of mine now with consulting organization Infosys, writes recently about the dire unrealized predictions facing the VC community just a year ago. He details the shifts in the industry and partially credits the architects of the still-nascent recovery programs.

His comments reminded me of something my mother often said: "95% of things you worry about never come to pass."

Of course, its that 5% that keep us up at night.

As it pertains to our business life, if, as Peter Drucker is credited with stating, "the best way to predict the future is to create it", then 100% of our angst can be squeezed to 5% insignificance by the simple act of doing. Dire warnings and worry generally come with the same highly unlikely assumption: "If things do not change, ..." That peculiar assumption ignores the fact that humans - particularly capitalist humans - are not given to inaction. Even our base 'fight or flight' instinct indicates an action of one type or another. Change is inevitable.

And so it is with this crisis. We're not out of it, not by a long shot, and our myriad collective and individual actions will differ in effectiveness and certainly create new crises even as they create new solutions. But our reactions to events and the actions we take are all we've got and will continue to alter the linear path.

If history is any guide, that's more than enough.

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