In the leadup to Vivek Wadhwa’s TechCrunch article today on Silicon Valley’s gender problem, I saw him twittering with my friend and former colleague Susan Wu (now CEO of Ohai) about the topic. Susan wrote:

There’s implict & explicit gender discrimination. It’s the implicit, subconscious, unstudied stuff that is the most difficult to overcome.“  and “it’s the unconscious, unexamined biases that are most pernicious. just because you dont ‘discriminate’ doesn’t mean you aren’t

It was upsetting to hear Susan, who has been on both sides of the entrepreneur/VC fence, echo comments I had heard from others, like Caterina Fake, in past.  Startups are hard enough as it is without some discrimination bullshit being dumped on top.  Part of me is proud to have a female co-founder and CTO, and it is important because so many of our customers will be women, but really I just feel lucky because she’s an incredible partner — super-smart, determined, practical, and she makes me a better entrepreneur.

Wadhwa’s article has good intentions but how he framed his thoughts bugged me. It felt a little too politically correct; I liked the thoughts from Sharon Vosmek in the article and “funded female” in the comments.  Here are some thoughts of my own:

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Targeting Matters!

by Giff on February 6, 2010

The other day, Cindy Alvarez (product manager at KISSmetrics and author of a great blog), wrote a post called “Anybody, As Long As It’s Not You” , saying:

“Who should give you feedback on your early-stage product mockups/demo? Anybody, as long as it’s not you. OK, sure, there’s probably an “ideal” audience to show your product to.  But it probably doesn’t matter.”

demographicsOn Twitter, I commented about the importance of demographics / targeting, and Cindy responded that many products are not very specialized, so anybody’s feedback is a useful first step.  I won’t disagree with her — it *is* a useful first step. Still, I need to bang on a few points.  I touched on this the other day with my thoughts on product-market fit, and find myself hung up on the line “it probably doesn’t matter“.

First, most startups cannot design for ‘everyman”. Instead, you usually have a particular problem (or form of entertainment) in mind, which usually means you have a particular kind of customer in mind, even if broadly defined.  This is especially true with enterprise products (how big? what industry verticals? how high in the organization?), but it applies to a ton of consumer applications as well.

You might be creating a product that the whole world could use, but the reality is that you are going to start with a group of early adopters of one kind or another.  As a startup, your marketing resources are going to be limited so you need to focus your energies, otherwise you will waste time with an ineffective (and possibly expensive) shotgun approach or simply play a “hit and hope” game praying for viral adoption and media buzz. #notgood!

So yes, talk to lots of people, but categorize and filter your feedback based on what kind of people they are.  You are not just testing your product, you are also trying to answer the questions: who are my primary customers? who are my very first customers?

If you can even roughly answer these questions, you can figure out how these people learn about new products and structure your customer acquisition strategies accordingly.  Yes, it all needs to be tested and measured, but you want to pick a smart place to start. #focuswin!

I’ll pick startup examples out of a hat: Stardoll needed to test their product with teenage girls, not 40 year old men.  Smartbear needed programmers, not marketers.  Gilt Group needed fashionable urban women, not midwest farmers. At the start, Facebook cared about college kids not baby boomers. KISSMetrics wants Internet entrepreneurs, not retirees.  Foursquare needs social media geeks and young urbanites.  There are exceptions to all of this, but I bet you find it harder to think of them than the opposite.

As Steve Blank says, “get outside the building” and test your assumptions for success, but do not focus exclusively on product and forget about customer acquisition.  Your need to pivot might come from the problem you are trying to solve OR your product design OR your expected demographic. You need to test all of the above!

PS. where I see demographics being a little less important is usability testing. Yes, you want to test your primary customer, but watching *anyone* get confused as they try to use your software is painfully illuminating.

Final note: I’m not trying to put words in Cindy’s mouth because she *was* just talking about a first step, not ignoring this stuff.  I just felt the need to pound on the topic, perhaps not unlike the apes at the start of 2001: A Space Odyssey.

UPDATE:

I’m interested in gathering other opinions on the topic, posting them here, and seeing if I can’t advance my own thoughts.

  • Eric Ries: my $.02: targeting is something you discover, not something you decide. it’s important, but not if it keeps you in the bldg” andI’ve literally been the situation of: To customer: “get out of my way, I’m trying to talk to my target market”"
  • Jason Cohen of A Smart Bear: “maybe you don’t know the perfect customer, but you can cut out a lot of folks, and that’s important.  It’s a similar argument to listening to feedback from people using the tool for free versus paying for.  With freemium you have many more people using for free than not, and usually that means their feedback overwhelms the others.  But frequently those willing to pay have different needs, and those are in the end the most important ones.”

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Can business schools teach entrepreneurship?

February 1, 2010

I can’t help but weigh in on the “MBA – startup” meme going around.  First, context on my background: I chose not get an MBA. Before my current startup, I worked for 4 VC-backed companies (founded by others) in various sales/marketing/bizdev roles, and bootstrapped and sold 1 company of my own.  I did feel a [...]

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Thoughts on Product-Market Fit

January 30, 2010
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Here are a few thoughts on product-market fit that came up when I was chatting this evening with Brant Cooper of Market by Numbers.

Revenue & Testing
To me, “lean startup” and “product-market fit” boil down to rigorously and continuously testing your assumptions as early as possible, and holding off heavy investments in scalability and growth until [...]

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Two zinger quotes

January 28, 2010

Ran across these two quotes today that brought a smile:
“By the time a big company gets the committee to organize the subcommittee to pick a meeting date, your startup could have made 20 decisions, reversed five of them and implemented the fifteen that worked.” — Steve Blank, Speed and Tempo
“the running joke [on raising VC] [...]

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When it comes to startups, products and services don’t mix

January 26, 2010
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This post is about dancing with the devil (i.e. consulting) as you pursue your dreams and try to pay the bills.  I believe that it is near impossible to build a successful software product while maintaining a services business. (UPDATE: I should clarify that I am talking about the period *before* you have a successful [...]

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Tale of Two Twitters: Information vs Social

January 23, 2010
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I was reading Dave Hornik’s latest post over at VentureBlog and stopped at this sentence: “To P&G, Twitter is a great broadcast medium — it is best for one to many communications that are short bursts of timely information.”
I’ve heard others call Twitter an “information network, not a social network” and gather that Twitter itself [...]

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Customer Development Update (and why I’m sticking with 1-on-1 talks)

January 20, 2010
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Conversations with prospective customers is an unending process. Here is a quick update (first post) on some of those efforts with Aprizi:
First, conversations have gotten a lot more concrete as we’ve honed our thoughts. We started out talking about people’s challenges and a wide array of features. The first wave of discussions [...]

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Great startup lawyers

January 18, 2010
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My reaction to the recent Venture Hacks post on lawyers was that we need to help entrepreneurs find good attorneys!  They are out there — I am certainly happy with my current attorney, Brian Hutchings at Gunderson, and when I was selling the first company I founded, my attorney at Fenwick was indispensable.
So today I [...]

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Angels: Development or Momentum?

January 15, 2010

Aprizi is not in a mad rush to raise a seed round, but it is something we want to do and I have been thinking about when to start expanding the conversation beyond a few folks who already know me.  An interesting question arose last night when I mentioned to another entrepreneur that I was [...]

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