Startup Opportunities, 2nd Edition

CHAPTER 7Product

Steve Jobs is famously quoted saying that he didn’t listen to customers because they don’t know what they want. The actual quote is more nuanced.

This is what customers pay us for—to sweat all these details so it’s easy and pleasant for them to use our computers. We’re supposed to be really good at this. That doesn’t mean we don’t listen to customers, but it’s hard for them to tell you what they want when they’ve never seen anything remotely like it. Take desktop video editing. I never got one request from someone who wanted to edit movies on his computer. Yet now that people see it, they say, “Oh my God, that’s great!”¹

Many businesses operate under the principle that the customer knows best and whenever you are working on a new product or idea, you should start with a lot of customer research, focus groups, and market data. Clearly, this conflicts directly with Jobs’ point of view. Thus, many entrepreneurs ignore the conventional wisdom, especially when they are working on new innovations.

Regardless of which approach you take, there are fundamental ways to understand how and why your product will have value, especially if you are trying to enter an existing market and disrupt incumbents.

The 10× Rule

The 10× Rule dictates that your solution should be at least 10 times better than current products to overcome the position of the existing market leader. Being slightly better, faster, stronger, or cost efficient is not enough. Having an idea that someone ...