10X rule your Startup
Today, we’ll talk about the 10X rule for Startups.
For startups to displace an incumbent, the offer needs to be 10X better than the current alternatives.
So often, startups go to market promising their customer an ROI of 10, 20, or 30% better.
Unfortunately, that’s not enough to win over customers from an established player. Your startup is an unknown quantity so you have to make a compelling offer.
A 10X improvement comes through cost reduction and increased productivity.
If I launch a product that is 5X cheaper and provides 5X more value, then I am offering a 10X improvement.
If your business is struggling, then ask yourself, “how is my offering 10x better than the competition?”
If the answer is, ‘I don’t know’ then that may be part of the challenge you have in closing customers.
Try this. Imagine your product is 5X cheaper and 5X better than the competition? What would it look like and at what price?
Now you have a vision of what to build and how to price it.
Thank you for joining us for the Startup Espresso where we help startups and investors connect for funding.
Let’s go startup something today!
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NOTE: Investor Connect is a program under the Texas Open Angel Network which is a 501(c3) non-profit dedicated to the education around startup funding. Hall Martin is the principal contact, and may be reached at http://www.investorconnect.org/contact.
Hall T. Martin is the Director of Investor Connect which is 501c3 non-profit dedicated to the education of investors for early stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.