Comments on: The Three Constituencies http://www.feld.com/wp/archives/2006/07/the-three-constituencies.html Mon, 22 Mar 2010 05:28:19 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Brad Stewart http://www.feld.com/wp/archives/2006/07/the-three-constituencies.html/comment-page-1#comment-3354 Brad Stewart Sun, 16 Jul 2006 17:18:56 +0000 http://www.feld.com/wp/?p=1165#comment-3354 This reminds me of the basic model we learned in biz school. Price, Quality, and Time. Pick any 2 but if you try all three you're just setting yourself up for disaster. This reminds me of the basic model we learned in biz school. Price, Quality, and Time. Pick any 2 but if you try all three you’re just setting yourself up for disaster.

]]> By: Brad Feld http://www.feld.com/wp/archives/2006/07/the-three-constituencies.html/comment-page-1#comment-3353 Brad Feld Sat, 15 Jul 2006 01:56:01 +0000 http://www.feld.com/wp/?p=1165#comment-3353 Jason - great point. I should have clarified that this is focused only on the consumer Internet stuff. Enterprise software has a different trinity. Jason – great point. I should have clarified that this is focused only on the consumer Internet stuff. Enterprise software has a different trinity.

]]> By: Robb Smith http://www.feld.com/wp/archives/2006/07/the-three-constituencies.html/comment-page-1#comment-3352 Robb Smith Sat, 15 Jul 2006 00:52:48 +0000 http://www.feld.com/wp/?p=1165#comment-3352 In our portfolio, and more often with new entrepreneurs we talk to, we have experienced an analogous effect, characterized generally as the "trying to be too many things" syndrome. We have found that the degree of complexity of intermediation proposed by a new company (i.e., how many different constituencies will they try to serve at once?) is correlated with their lack of understanding of any of them and/or their inexperience in building a successful startup. Laserlike focus on solving a need that is clearly compensated is a reliably prosaic pathway to success. Entrepreneurs usually don't get the luxury of taking a portfolio approach to a market like a VC does. In our portfolio, and more often with new entrepreneurs we talk to, we have experienced an analogous effect, characterized generally as the “trying to be too many things” syndrome. We have found that the degree of complexity of intermediation proposed by a new company (i.e., how many different constituencies will they try to serve at once?) is correlated with their lack of understanding of any of them and/or their inexperience in building a successful startup. Laserlike focus on solving a need that is clearly compensated is a reliably prosaic pathway to success. Entrepreneurs usually don’t get the luxury of taking a portfolio approach to a market like a VC does.

]]> By: Eli Portnoy http://www.feld.com/wp/archives/2006/07/the-three-constituencies.html/comment-page-1#comment-3351 Eli Portnoy Sat, 15 Jul 2006 00:00:55 +0000 http://www.feld.com/wp/?p=1165#comment-3351 Very interesting framework. Our business lives and dies by our own little trinity (Employers, Jobseekers and Advertisers), and it took us close to 5 months to understand the point you are making and another 3 months to be able to change strategy accordingly. Once we began to focus on the right segments, all three of our constituents responded positively, and our revenues have soared. In retrospect these types of insights are obvious, but unfortunately it is not easy to figure them out when engulfed in the day to day workings of the company. Thanks for all the great posts and insights. Very interesting framework. Our business lives and dies by our own little trinity (Employers, Jobseekers and Advertisers), and it took us close to 5 months to understand the point you are making and another 3 months to be able to change strategy accordingly.

Once we began to focus on the right segments, all three of our constituents responded positively, and our revenues have soared.

In retrospect these types of insights are obvious, but unfortunately it is not easy to figure them out when engulfed in the day to day workings of the company.

Thanks for all the great posts and insights.

]]> By: Jason Wood http://www.feld.com/wp/archives/2006/07/the-three-constituencies.html/comment-page-1#comment-3350 Jason Wood Fri, 14 Jul 2006 20:51:18 +0000 http://www.feld.com/wp/?p=1165#comment-3350 Brad, An interesting thought but how does this extend beyond the consumer Internet model? Where would your investments in Newmerix or Rally fit into this paradigm? J Brad,

An interesting thought but how does this extend beyond the consumer Internet model? Where would your investments in Newmerix or Rally fit into this paradigm?

J

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