I have been consulting to venture-backed technology companies for a dozen years. Across nearly all of the 40-some-odd organizations I've worked with, there are many similarities.
I came across three well-healed traits this week when meeting with the CEO of a gaming company.
- Many companies believe in a "spray and pray" strategy of go-to-market planning
- Some entrepreneurs still think that "if I built it, customers will come"
- Most entrepreneurs love to learn. Few love to be taught
I was referred to this CEO by a friend. Let's call him Jeff. Jeff had started his company about 5 years ago, and had raised about $10 million in venture funding. They had, what they thought, was a cool idea, and launched the product. Unfortunately, the product did not catch on, and they ran through most of their funding before abandoning the product and laying off most of the staff of about 20 people.
As entrepreneurs are a breed that rarely gives up, the CEO re-trenched and began developing several new games to launch in the market--hoping that at least one of them would be a hit.
He was implementing a "spray and pray" strategy of introducing ideas and hoping someone would be attracted to them.
When I met with him this week, he told the tale of his product launch, ending with "and we don't know why it didn't catch on."
It was clear that he had no problem NOT learning from his mistakes. Rather than spend the time figuring out WHY he failed, he went head-first into trying something different, for difference sake, rather than learning and growing from his efforts.
He had a "If we build it, they will come" mentality. I call this "development in a cave."
I talked with him about how I work with organizations to identify the core value and values of an organization to increase the odds that a start-up will get the attention it deserves in the marketplace. I suggested a "learn from the past, target a better future" approach of research and strategy before action.
It was clear that my ideas were falling on deaf ears. He told me they didn't have the money to "brand" as he called it. All of his resources needed to be spent on product development--not research or strategy.
I left the meeting knowing that it was useless to try to teach him the basics of business marketing. But I was not about to give up.
You see, I know that most entrepreneurs love to learn, and few love to be taught.
I sent him a thank you note for our conversation, with an attachment of a series of case studies from other companies I had helped. I didn't ask him to read them, nor did I try to directly convince him to change his business philosophy.
Three days later, I got an email saying he'd like me to meet with he and his venture company to talk about a "re-think" of their strategy,