In a competitive market, how do smart start-ups make it? According to Mark Morel, Chairman and CEO of Whoop!, a technology firm that provides solutions so companies and individuals can easily share mobile content, LISTEN TO THE CUSTOMERS!!!
Everyone says they do it. Why, then, are some small companies going out of business? They don’t have customers. Why? Because they didn’t give the customers what they wanted.
Morel, a serial entrepreneur who has established more than six successful start-ups, recently shared some insights on Bold Ventures Radio about what aspiring entrepreneurs should focus on when getting into the game.
Can you hear me now? Hearing isn’t good enough. To succeed, you truly have to listen to the customer. In the past, Morel has met regularly with a cross section of customers to learn what they really want. With start-ups, it’s easy to do the wrong thing by a customer at the beginning because you’re just getting your footing and you may not even really know your customer. If that happens, show them how you’re going to make it better and what you’ll do to prevent that mistake from happening again. They see you are listening and care about what they want. It takes time and effort to focus on every single customer, but in the end, it creates loyalty and renewed business, driving the value of the company. Once the start-up has more resources, it’s easy to veer away from the goal. If you continue to focus on the customer, you’ll always meet your mark.
What’s in a name? Go through an exercise of defining exactly who you want to be as a company, what you want to provide, to whom you want to provide it and why. Define yourself and stick to it. No need to create a whole new field. You can be a successful start-up in a competitive field if you monitor the competition but stick to who you are, who your customer is and what they want. Mark’s strategy is to create something important in a space, work with great people and listen to the customer in how you implement your idea.
Which came first, the chicken or the egg? Do you you drive the company or do you let the customer? According to Morel, once you create the product or service and identify your customers, you always talk to the sales department, your prospects and your customers before making any changes or doing anything with your resources. This allows you knowledge about what customers truly want from the marketplace. He lives by the mantra, “We’re selling what they’re buying.” A recent Wall Street Journal article illustrates Morel's mantra but also talks about the importance for entrepreneurs to find a balance between following their own vision and intuition and when to rely on crowd feedback.
Is there an “I” in T-E-A-M? No! Morel started his career on Wall Street where he learned the importance of organizational structure. He also saw what he thought was the wrong way to organize an organization...making it about ME/I. It’s not about “me” but rather is about the TEAM. He lives by the goal to be the “dumbest guy in the room.” He surrounds himself with the brightest, most talented and least egocentric people he can find, creating a dynamic, growth-oriented, values-based culture. The "right" people are so critical, SCORE, a resource partner with the Small Business Association that provides professional guidance and information to small or new businesses in order to strengthen local economies, lists people as the number one factor that improve the odds of new business survival.
To prevent big egos from getting onto his team, Morel goes through a long vetting process, allowing each team member to meet or learn about the potential team member to see how they interact, what they bring to the table and what their values are. Usually, during that extensive process, at least one team member, if not more, can identify a potential ego that won’t fit. This eliminates problems down the road.
Where’s the beef (money)? Having successfully built multiple companies, Morel has seen waves of challenges befall the start-up world. Most recently, in this economy, keeping capital is one of the biggest challenges. During the dot-com days, start-ups had an idea about a product but no clue how to establish a revenue model. Mark says VCs are investing now, but they need clear ideas on how their investment will grow. They want to see a plan. No longer are they investing in just a cool idea...a flashy dot-com, an intricate application. They want to see plans, ideas, customer targets, revenue models, etc.
Be the ball. What’s a goal for an entrepreneur? To always reinvest in the industry. Don’t just start a business. Be part of the community that supports that business. In Atlanta’s tech industry for example, the Chamber of Commerce, Georgia Research Alliance, Technology Association of Georgia, the Atlanta Technology Development Center, etc., all support and want to foster the local tech industry. Be part of that community. Support their initiatives. It helps create a more dynamic marketplace which ultimately will help your customer, and it helps brings attention of VCs to the area. Plus, it’s the right thing to do.
What’s the big deal? Everyone wants to be an entrepreneur. They think it’s the ultimate in flexibility; there’s no boss; you set your own schedule and follow your passion. The goal is different for everyone. For Mark, it’s about being able to create something from nothing, to foster it and deliver. It’s about caring for something, caring for the people who are helping you create it and caring for the people to whom you’re giving it. It’s not about me. It’s about the customer.
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