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The 2+7 Fact
2 min read

The 2+7 Fact

Life and business have a way of complicating themselves over time. So the goal as an entrepreneur should be start off with as simple a premise as possible, which then over time will evolve and become nuanced, layered and complicated. But if you start with complicated, you end up with chaos.

In the consult sessions that I do with entrepreneurs, for those who are in the idea stage, the goal is to get to a simple goal for the business. If we can arrive at that, then the PMF (usually) isn't too far behind. But simple is difficult to achieve and takes clarity of thought.

There are two business models when it comes to B2B that ring true always.

  1. Are you helping a business save money? (tends to grow rapidly during times of scarcity - like right now) - or
  2. Are you helping a business make more money? (grows when the market is in expansion mode).

There is a SaaS startup that keeps track of all your SaaS Subscriptions across departments, and notifies the accounts department of tools that are under-utilized or not used at all for a while. In effect, it helps the org saves money.

With SaaS, you put your credit card it and forget about it, and sometimes between departments the same tool is purchased multiple times, and sometimes a tool is bought, forgotten and still billed for. The Average enterprise with ~ 1000 employees has 200+ apps, and spends $2844 per employee on SaaS (as of 2019). Anything that helps them save money, will find a market.

When it comes to B2C, the cure is easier to market than prevention. The companies that sell painkillers succeed (and experience pull) compared to companies that sell vitamins (have to push).

It is easier to sell weight loss, than it is to promote good habits, eating healthy, and exercising. When it is a good thing, its called habit (there are books and books about how to cultivate them) and it takes discipline. When it is a bad thing, it's an addiction.

The successful B2C companies all pander to one of the seven deadly sins : pride, greed, wrath, envy, lust, gluttony, and sloth. If you take the Unicorns of the B2C world, you can almost make a 1:1 mapping with the list.

Startups that are out there to change the world for the better - rather than just pander to the vices of the world do take time. Most true innovation in the B2C game, will be considered radical and will face some friction - like medicine usually does. It is an infinite game and requires enormous staying power. If you are one of those startups, then remember that you are playing the long game, and it takes time.

Related Read : The Six levels of Service

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