Episode 685 | 7 Things You Should Never Do (A Rob Solo Adventure)
Oct 31, 2023
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A solo deep dive reveals seven costly mistakes SaaS founders often make. Discover why two-sided marketplaces and B2C applications can be treacherous waters. Learn the dangers of prematurely launching a second product and the pitfalls of trying to create a new software category. Dive into the complexities of multi-language support and why addressing root causes is crucial. Wrapping it up, Rob shares his unconventional take on launching a portfolio of products to see which one takes off.
Founders should avoid the lottery ticket approach by recognizing that true success requires strategy, effort, and understanding rather than reliance on luck.
It is crucial not to launch a second product when the first stagnates, as this often distracts from resolving core issues and optimizing existing offerings.
Deep dives
Avoiding the Lottery Ticket Mentality
The discussion emphasizes the pitfalls of the lottery ticket approach in entrepreneurship, where individuals are often mesmerized by success stories of a few who achieved quick wealth through luck rather than hard work. This approach leads to survivor bias, as many overlook the numerous failed attempts behind one successful story. The speaker argues against buying into false narratives of overnight success, stressing that genuine entrepreneurial growth requires strategy and persistence rather than relying on chance. The main takeaway is that success should be repeatable and achievable through skill and effort, not merely attributed to luck.
Common Anti-Patterns for Founders
An array of anti-patterns that founders should typically avoid is discussed, particularly focusing on poor strategies like launching a B2C software company or creating a two-sided marketplace. Launching a B2C application exposes founders to high churn, low price points, and demanding users, which can complicate business operations. The discussion elaborates on the difficulties of bootstrapping in two-sided marketplaces, where founders frequently struggle due to the necessity of having both user sides operational from the beginning. By highlighting these mistakes, the speaker encourages founders to adopt proven best practices instead of taking unnecessary risks.
The Dangers of Creating a Second Product Too Soon
The narrative warns against the common inclination to develop a second product when the first one stagnates in growth, equating this thought process to a grass-is-greener mentality. Founders often fail to realize that a shiny new product will not solve underlying issues such as weak product-market fit. The discussion refers to an earlier podcast episode, emphasizing that launching a second product often distracts from understanding and addressing the real challenges facing the initial offering. Instead of seeking novelty, founders should concentrate on optimizing and refining their existing solutions to achieve success.
Learning from Failures Rather than Rushing to Launch
The speaker encourages founders to embrace the learning process associated with product creation rather than rushing to launch multiple products in hopes of finding success. Launching prematurely without mastering foundational skills leads to a lack of comprehension regarding why a product may succeed or fail, often resulting in dependence on luck. The importance of iterating on ideas, collecting feedback, and improving existing products is underscored as crucial for achieving long-term success. By cultivating a mindset focused on iterative growth and understanding, entrepreneurs can turn challenges into opportunities for development and repeatability.
In episode 685, Rob Walling goes solo to share his insights on 7 common mistakes that SaaS founders make. Be sure to listen to the end to hear Rob’s spicy take on launching a portfolio of products to see what sticks.
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Topics we cover:
1:29 – Sign the National Association of Manufacturers Letter, Section 174
3:52 – Compiling a list of things founders shouldn’t do
6:49 – B2C applications, “the worst of all the worlds”
9:42 – Don’t build a second product if your first has stopped growing
10:40 – Defining a new category of software is usually a bad idea
19:59 – Avoid multi-language support
24:13 – Dig deep to find root causes beyond the symptoms
If you have questions about starting or scaling a software business that you’d like for us to cover, please submit your question for an upcoming episode. We’d love to hear from you!