Which way is up
Starting from Zero is scary.
One of the things we encountered in the early days of Quokka Brew is the concept of “Which way is up?”
When you are launching a brand or product in an industry where you are not an expert you will sometimes run into this problem where you don’t know what positive progress looks like. Where you so desperately want to improve X, Y, or Z, but lack the understanding of what better even looks like (and how to separate better from worse).
What makes matters even more confusing is that there for each startup there is no one path that must be followed. Yes, there may have been a path or method that worked 10 years ago, but times have changed. The world is different now, more than ever before, and with it the playbook has been lit a flame. Which brings me back to my original question, which way is up?
Up is a very relative term. For each founder “up” means a very different thing, it could be higher revenues, higher profits, more customers, increased AOV, or a new product. Alternatively, “up” can also mean down sizing your company, cutting SKUs, or realigning your company vision to fit the current direction of the markets.
Up also has a very convoluted, “keeping up with the Jone’s” type aura surrounding it, with common questions being how much money did you raise, how many doors are you in, or what is your revenue (while ignoring profitability)? With sometimes you question yourself and think “did we not raise enough?” or “oh man, are we not in enough doors?” or “oh wow, they are doing some much more in revenue than us.”
Who decided that these are the “up’s” that matter? I am not saying they are not important, I analyze all three of these metrics on a near weekly basis, but they can give a very twisted view on what “up” is.
Which brings me to my framework of how to find your up.
Ignore everyone. If you try to fight the same fight as everyone else the big guys with a hell of a lot more money then you are going to steal your lunch money and buy some Chipotle with it. Think outside the box, think about how can this model be reinvented, or why is everyone doing it this way? Find a way to try to stand out, don’t just run head first off a cliff.
Test. If you can find a way to stand out, validate your idea. Now, this doesn’t mean calling your industry vet friend and picking his brain. These older guys typically have a hard-set view of what “the model” is and will think you are an idiot if you do it any other way (that is fine, being an idiot is what they call you until you beat them). Do real-world tests, go out talk to stores, talk to consumers, try to poke holes in your ideas, and see if it actually works.
Iterate. Once you validate your differentiator or unique aspect, never stop thinking about how you can improve it. Don’t get too comfortable, always try to find a way to improve Being stationery isn’t bad, but being stationary during a stampede is a death wish.