The Idea Equation
An article on how to cut the amount of time you work on your startup idea in half and dramatically speed up the whole “see results” part of the process. We’ll also start a dog grooming businesses tentatively called Groomingdales before we’re done.
I love when people own things.
Not like when people own a house or an NFT or that one guy who claims he owns the moon (and sells real estate on it).
When people building things own a moment.
I think of an idea as an equation with three terms. When you do a good job, the equation tells you what you can own.
💡 Idea = (who it’s for + what it’ll help them do) + (who it’s not for + what it won’t do) + (how likely the customer is to share + what they’ll say when they do)
The terms play off each other. If you do a great job on the first and second, the third - which is the single most important variable for you to succeed - becomes straightforward. If you’re lazy with the first two terms, the third becomes difficult. And expensive. Creative agencies put their kids through college because of companies that did a bad job defining their customer and are hoping a fresh coat of paint will fix their houses’ rotting infrastructure.
Let’s do one
You want to start a pet grooming company in NYC. You’re calling it Barks and Rec because I decided I like that more than Groomingdales since writing that earlier sentence. You got a dog during Covid and noticed that seemingly everyone else did, too. You also noticed that grooming that dog is now expensive (average price $200) and and a pain in the ass (no available appointments). So, after everyone in the dog park said things like “you can’t afford to not start this business!”, you’re trying it.
Here’s how most people think:
“We’ll have to charge less than competitors to start, otherwise how will we get customers? We’ll also be more flexible with drop off and pick ups. Then, after a few months, word will spread.”
People’s instincts are to do more than the competition and charge less.
But when you plug this into the idea equation, there’s... nothing there. No clarity around who it’s for (aside from people with dogs looking for groomers) or who it’s not for. And the reason people will share is a race to the bottom - price and availability.
Let’s fix it.
To start, flip your instincts - how could you do less and charge more?
By choosing who it’s for and who it isn’t. Let’s say you’ve got a Doodle, and you’ve noticed there are a TON of doodles near you. They have hair, so they usually get shaved tight - what’s called a summer cut. They’ve got lots of energy, so they’re always in the park. They’re also expensive - they indicate the owner is willing to spend money on a dog.
So, an idea worth testing might be Doodle Crew Cuts. Crew cuts for Doodles every two months. You don’t cut any other type of dog, which opens up availability. You don’t do any other type of cut, which makes your execution simple.
💡 Idea = (who it’s for + what it’ll help them do) + (who it’s not for + what it won’t do) + (how likely the customer is to share + what they’ll say when they do)
💡 Idea = (Doodle owners in NYC + help them get their dog cut and feel like part of a tribe) + (not for anyone without a doodle, not for anyone who wants anything but a crew cut every 2 months) + (HIGHLY likely to share - doodles are in the park all the time, doodles play together, owners of the same breed talk about breed-specific problems)
Before you’ve got a brand, you’ll build trust through specificity.
Who it’s for and, more importantly, who it’s not for, will take pressure off classic brand “stuff.” Design, marketing, website don’t really matter if you’re clear on who it’s for and what it’ll help them do.
So, how can you get tighter on the customer you’re working with? Which customers can you remove to amplify what you make for the customers you keep?
Start one with the equation in mind: Who it’s for, who it isn’t for, and how it’ll grow.