All In Startup Book Summary
Launching A New Idea When Everything Is On The Line by Diana Kander
The book can be summarized into 4 Key Ideas:
Idea No 1. Startups are about finding customers, not building products.
D. Kander starts the introduction by telling the number 1 reason why most entrepreneurs struggle in their business. She calls it the startup loop on despair.
Startup Loop In Despair works this way
- An entrepreneur gets an idea.
- The entrepreneur builds his idea.
- The entrepreneur brands his idea.
- The entrepreneur goes out looking for his customer.
- And no one buys his product causing him to realize that no one wants to buy his product
- Revisits his idea.
- The entrepreneur repeats steps 1 to 4, spending a lot of time and money without making any progress.
D. Kander emphasized the real reason why a business fails is never due to the founder’s experience, lack of capital, poor location, management, and so on.
The real reason business fails — not enough customers.
So what do you need to do instead?
- An entrepreneur gets an idea.
- The entrepreneur finds potential customers and determines if the product is even worth building.
- If yes, then build the product. If no, repeat 1 and 2 before building the product.
- The entrepreneur brand the product.
Idea No 2. People don’t buy products or services, they buy solutions to their problems.
The only way to find out if your customers have a problem worth solving and whether your idea solves the problem is to directly interact with them.
Idea No 3. Entrepreneurs are detectives, not fortune tellers.
What separates real entrepreneurs from daydreamers and wantrepreneurs is the search for facts.
Don’t waste your time debating with investors, partners, or employees whether your guess is right or wrong. Instead, spend at least amount of time and money gathering evidence that can prove or disprove your assumptions.
Idea No 4. Successful entrepreneurs are luck makers, not risk-takers.
Successful entrepreneurs learned how to minimize risk and generate luck by making a series of small, calculated bets to test their assumptions and find new opportunities.
The book walks around these 4 Key Ideas.
What I love about this book
All In Start Up is that it is in story form — novel in particular. It is so great that I finished the book in one seating. The fastest reading I ever did compare to other business books I’ve read.
This is not your typical how-to book that will list down all the things you need to do. Instead, D. Kander shared her lessons thru the main character Owen Chase and his failing business ReBicycle. Together with his newfound part- mentor and part fling lover, Sam help Owen in finding a migraine problem worth solving and with customers willing the price. And the story begins in the World Series of Poker in Las Vegas.
Yes, poker. D. Kander found that poker and business have a lot of similarities. That’s why
All throughout the story Sam the Mentor will teach Owen the Struggling Entrepreneur about launching a new idea through analogies with the game of poker.
Frankly, I am not into poker. I don’t know anything about poker. If you play poker or at least understand the rules of the game, I am pretty sure that you will enjoy the book 10x. If not, like me, you will still take home a bag of valuable information that you can use whether you are starting a new business or an entrepreneur finding a new product.
Another thing I love about the book is its Table of Contents. You read it right! Just by reading the table of contents is jam-packed! The book has 44 Chapters and each Title is good enough for those looking for a quick overview of what the whole book is all about.
Now let’s go with the highlights in the book in bullet form.
- The real pros were calm, objective, and waiting for the right moment to strike, not just excited to play every hand
- Vanity metrics make you feel good, but it doesn’t really measure anything useful. It doesn’t really depict the health of your company.
- The way to start a successful company is to solve problems that your customers are already experiencing rather than try to convince them that a problem exists.
- You can’t just predict how these irrational human beings will act.
- You can’t really declare guesses to be facts without first interacting with your customers to figure out it you’re right or wrong.
- It’s not about creating a great solution and hoping the market adopts it; it’s about understanding your customers first and creating something that adds value to their lives.
- Put your customers and their need before your vision for a solution.
- Don’t gamble. Use small bets to find opportunities.
- Winning at this tournament wasn’t about luck, it was about reducing the number of times she had to get lucky.
- Even experts need to prepare for a new terrain.
- Companies don’t go out of business because they fail to build a product. Companies go out of business because they fail to build anything that people want.
- People don’t buy visionary products. People buy solutions to their problems!
- If your business is failing from the get-go, it means either (1) you built a solution for a problem that doesn’t exist, (2) your customers don’t know they have the problem or it’s not important enough that they are willing to pay money or (3) your solution doesn’t actually solve the problem.
- You will significantly increase your chances of startup success if you focus on solving only those problems that are causing serious issues for your customers.
- Because it takes skill to win at poker and just lucks to win at slot machines. We’re not here hoping to get lucky. We’re here to use skills to reduce the need for luck and play the other players, not the cards — Sam
- Before I did anything, and I mean anything else, I’d work to figure out who is my customer, what is their problem, and will they buy my product to solve their problem. And you can’t answer any of those questions on your own. Only through interactions with your customers.
- You have to take yourself out of sales mode when trying to identify your customer and their problem.
- Your objective should be to learn like you are a detective. Like someone else who is testing in a theory. Like negative result is just as valuable as a positive. The worst thing you could get is a false positive because that would just waste more of your resources moving forward.
- Clearly, articulate the idea in a way that describes its value.
I will help (customers) solve (problem) by (solution)
- Remember, this isn’t the last thing your business will ever do; it’s the only first thing. So you aren’t thinking about the first million customers, just the first 10 or 100 customers, and the more specific you can make these descriptions, the easier it will be for you to find these people and test your assumptions.
- And you have to say it in a way that doesn’t sell people on a problem but could be proven right or wrong
Part A: I will help people who buy bicycles. (Too Broad)
Part A Improved: I will help people who shop at specialty bike stores (Better and Specific)
Part B: ….solve the problem of expensive bicycles (It was suggested that the problem is about price without a proof (selling of problem))
Part B Better: …solve the problem of not wanting to pay retail at quality road bikes
Part C: …by providing an online store where they can buy quality refurbished bicycles at half the price of new bikes at those retail locations.
- There are two parts to this equation. First, you have to prove that the customer and the problem exist.
- We need to confirm that you’ve found a problem worth solving by answering the following question.
I know I have a problem worth solving because:
- My customers are ________________.
- Their problem is ___________.
- They are currently solving their problem by ___________________.
- They have tried other solutions in the past by ____________________.
- On the scale of 1–10, the seriousness of the problem is ________________.
- They would spend $________ to fix this problem.
- Once you hit that nerve, they aren’t just going to agree with you and walk away. They’ll tell you what they are currently doing to try to solve it. All the things they’ve tried in the past that didn’t work. Even how much money they’ve spent trying to find the solution. When you bring up a migraine problem, you’ll see the customer’s eyes dilate right in front of you, like you just stuck your finger in a serious wound.
- The bigger the pain, the easier it will be to sell the solution.
- Remember to listen. Don’t load questions. Don’t sell them on the problem.
- Hoping and praying for luck is not a strategy.
- You can’t answer any questions about your customers without understanding them, getting to know them, and figuring out their motivation.
- Observing them, trying to figure out why they are doing what they are doing.
- It’s never too late to test your assumptions.
- The secret to customer interviews is non-leading, open-ended questions.
- Ask customers what they are looking for
- The only way to get good at customer interviews is to practice
- Don’t use ‘would you’!
- Those are the worst two words you can start a sentence with! Don’t ask yes or no questions. Make sure you are giving them plenty of opportunities to tell their story. Their true feelings aren’t going to be direct answers to your questions, but in the stories, they tell you around their answers. We don’t care about anything they have to say about the future. Only how they act and feel in the present and the past.
- Finding out your assumptions were wrong is just as valuable as proving them right
- Don’t pivot to a new idea without testing your new assumptions
- Save your chips for when you’ll need the least amount of luck to win
- Successful entrepreneurs recognize failure, fold, and live to fight another day
- People are terrible about predicting the future, and sometimes they plain out lie.
- Make sure people want it before you spend too much time and money creating it
- The ability to face failure and rejection is one of the greatest strengths of successful entrepreneurs.
- Test your assumptions before committing any resources to an idea
- Luck can be engineered if you take emotion out of the equation
- Every successful entrepreneur has more failures than successes
- The harder you work, the luckier you’ll get
- If you spend time trying to gather intelligence, every now and then, you’ll get lucky and strike gold!
- Interviewing your potential customers and learning about their actual problems and needs gives you a much more powerful starting position than guessing about those needs on your own
- Opportunities to find prospective customers are everywhere — you just have to look
- The best feedback from potential customers comes from meticulous interviews
- People sitting down are more likely to talk and endure questions than people walking or standing
- Always qualify your interviews to make sure they are the customer segment you are targeting and not just a random person
- Ask open-ended questions to get them talking
- Potential customers will be a lot more open about their problems if you don’t try to sell them something during the initial interview
- Try to get the potential customer to articulate their pain without leading them in any way
- Problems don’t count unless they’ve spent time and money trying to fix them. It has to be a real need
- Don’t be all business. The more conversational you can be, the more they will share
- Always ask a potential customer if they knew anyone else you could interview
- Recognize the vanity metrics to avoid big losses
- Spend the least amount of resources figuring out if your assumptions are right or wrong
- Keep interviewing customers until you find a migraine problem worth solving
- As an entrepreneur, you should know that sometimes you can have the best hand and not sin. Lose everything. Sometimes you can have a terrible hand and still win. Everybody likes to think that because they’ve got their MBA or Ph.D. or whatever, they can get rid of the luck, but luck is still part of the game.
- People can’t help themselves from sharing when you bring up a migraine problem
- Stay objective in your interviews whether you are getting good or bad news
- Finding a problem worth solving is only half of the equation
- Prove that they will buy the product
- Nothing else matters until you can prove that customers want your product
- Luck makers seek out new experiences and find opportunities wherever they go
- Luck is not a good strategy for poker or business — It’s the outcome of a good strategy
- To prove demand, find the shortest path to ultimate customer action
- The founder of the company should be the one making the calls, doing research. Otherwise, it’s meaningless.
- You’ll just be a lot more likely to act on this information if you gather it yourself
- Never ask, would you? It’s the worst question you could ask because you won’t learn anything.
- The only way to tell if they want it, that it actually relieves their migraine is to get them to actually perform the ultimate action
- What’s the smallest bet you could make, in terms of time and money, to get your customers to give you a preorder or their credit card number or a letter of intent or something?
- If you can get people to buy something without building it and branding it, you’ll know you have something. You’ll know you have the beginning of a real, sustainable, scalable company!
- Prepare for bad luck by building up reserves
- Fear and action are the two greatest threats to your business idea
- Just don’t get frozen with fear. So something, even if it turns out not to have been the right thing
- Understand your tendencies on tilt so that you can compensate for them
- You can’t win unless you play this hand, Owen. Take the shot.
- There is no mistaking it when you uncover migraine worth solving
- Get comfortable with being wrong
- I mean, just because those pros are no longer in the tournament doesn’t mean they aren’t incredible poker players. So I just try to follow their lead and minimize my losses when I am wrong so that I can live to play another hand.
- Don’t go all-in without confirming your assumptions through smaller bets
- Second chances are rare. Make sure you get it right the first time around
- Even when you find a migraine problem, crafting a solution requires vigilance and readjustment
- Don’t commit until you prove that customers want your product and there’s a business model to support it
- The strength of your initial idea or starting hand is always relative