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The following video transcript is generated automatically by a computer algorithm that learns and gets better on a daily basis. Please accept our apologies if some content below doesn’t make sense:

Welcome to the Daily Dose podcast. This is the podcast where we pick out things from the news and social media that’s interesting to us as entrepreneurs and as business nerds. I’m James and I’m joined by my co-host, Marcello Marcello. Why don’t you kick us off with our first topic?

Hey, how are you, James? Good. Yeah. So we pick this from Twitter. It’s a thread saying that first time founders are obsessed with product and second time founders are obsessed with distribution. So what’s more important? Yeah. That’s on an open debate. So, yeah. What are your initial takes? Because, you know, I get deep into this.

Yeah. Yeah. So, yeah, no, I, I, I definitely agree with this guy. Jeff Morris Junior was the guy on Twitter who was who posted this. I think it’s because when you first when you first start thinking about entrepreneurship and when you even first learnt about it, you know, when you’re sort of younger. However it is that you came across it in the first place. You’re like, wow, this is this is this is amazing. There’s this giant sort of world has opened up in front of you and your brain immediately starts getting ideas, ideas, ideas, ideas. You know, I kid, you know, the classic ones are all we can start a nightclub or start a restaurant. Let’s do it. You know, the only sells cookies or something like that. And so the thing that always pops into your head is ideas, ideas, ideas and. Those ideas are essentially product ideas that very rarely sort of distribution ideas. Right. And so you get. Instantly sort of in love with your you know, your favourite idea. And so you get obsessed with it and you just go on that deep dive with the idea and continue trying to make it the most perfect, amazing products ever. And what what people typically find is is like, you know, if they’re anything like me or or if if they’re not incredibly lucky, whereby they’re first thing they ever tried. Just. Absolutely. Fliess, you find that actually most people aren’t as obsessed with this thing as you are. And you can spend lots time and effort on creating this thing. And then you can take it to the market and you find out, you know, just like crickets. There’s just absolute silence. What you when you try and do it. Classic, classic. And so and so next next time round, you try, you kind of go you’ve learnt a bit of a lesson you go wrong on. I I don’t want to throw as much of myself and my ego and my effort into sort of crafting this perfect product, if it if it’s just gonna be crickets again. Like what? What what’s weird? What what can I change about this? And then the obvious next answers that is is like, okay, well. Let’s start with a market first. Is there anyone else out there who, you know, even likes the same kind of things or does the same kind of things? And, you know, your mind starts ticking across, too. OK. Well, how how would I get this product that I’ve just imagined into someone’s hands? And then, as you’re sort of thinking progresses, as you try various different things, like eventually, you know, you get to the point where it is kind of like, I don’t care what the product is like, just. Is there a group of people out there who have got a problem that I could service? Can I can I reach them easily, quickly, cheaply? Can I help solve their problem easily, quickly, cheaply? You know, there’s still your basic checklist and. How how how do I find them? And so if I start an audience, then like, OK. Given this audience I’ve had like what sort of products or services can I try with them to try and get it over the over the line? Have you. Have you had experience with, you know, sort of products or ideas where you’ve sort of taken it to market and it’s just been upset?

Yeah, I’m a lot. So I, I, I agree with his stance. I think it’s common. Come on. You know, sequence of events that initially you get more get interested on the product and then you learnt by experience that you need sales basically. So yeah, I would say probably distribution is more important.

And as you said, you probably test the market first. So have an idea of the product, but build a prototype of that broked that you think is gonna be like the end product, test the market and learn, get feedback from the customers or you can print customers or Aradale up there or whatever and yeah, adapt your product.

It may be a band of being something else, but it’s still within the same category. Bodh could be way better because you listen to the audience and just adapted to what they needed. So all companies need sales. So you need to make sure you have those sales. Otherwise you will be put out of business.

But with that said, though, there are certain exceptions. So I would say then my second comment would be that it depends on the industry. So if it’s let’s say it’s not the same consumer goods, you can gather a lot of feedback you’ve got. I. You can build prototypes by denying industries like rockets. You can get as much feedback. And you need to have a clear and a vision or even an ultimate wiler. Yeah. It’s not something that you can you cannot build a car that kind of works. So car safety, you know, like a plane. And it takes years to build. So you you will onboard into that long, capital intensive journey to build something that better works as expected and usually cost more a functional goal less than design. Or, you know, arbitrary what people will like or fashionable, you know, not go out of trend or this and that, like social media sites or clothing or decent that. So, yeah, what I would say that’s the exception. Like industry in general, ASOL, these maybe even robotics. And there’s not I mean, robotics is a very wide spectrum, but all a heavy industry stuff. It should be more pro driven than distribution because usually distribution, maybe you have just one buyer. Like the government or or like you if you are serving the NHS or big pharma companies. So, yeah. Oh, but those are usually not for first time entrepreneurs.

So yeah, for sure. So I think another point here is that. As well as approaching things you can approaching from a product, direct direction, you can approach things from a distribution direction. One thing that I found, the way that sort of my head has changed over the years is that I was very I always thought that like a bit if you start a business or if you sort of want to create new business as an entrepreneur, that has to be very sort of innovative. Husby, something brand new to the market, something the markets never see before or, you know, like amazing Whiz-Bang. You know, if you’re sort of treating yourself like an inventor, really, like, you know, it’s like I’m going to you know, I’ve invented this amazing new thing and I’m now going to take it to market and do whatever. And that’s the kind of like innovation or sort of invention, product, focus, staff, things, so you might still have a big focus on distribution. But effectively, what you’re trying to do is you’re trying to take something brand new and educate the market as to the reasons why they might want to buy this thing, this products or service that hasn’t existed. And I think what a lot of entrepreneurs come to you over time is they they start thinking about things from the opposite direction, which is like, OK, well, let’s let’s look at what already works in the market, because then you’ve got a proven market. You’ve got a group of people who are already spending money to solve that problem or are already buying these classes of products. Can I just can I start an equivalent company or can I start an equivalent business where I am serving those exact same people and solving exactly the same problem that they’re already, you know, paying money to solve, but with a slight angle on it? A slight twist so they can position myself relative to my competitors so that they want to choose me over my competitors, be that a price or a luxury or whatever the angle that you’re coming at it from or even you just you create something which is an exact copy or something is already in the market. Issue out, execute the people who are already in the market in some fashion or you have some leverage like some cost saving thing, which they don’t have. So you’re able to sort of bring it to the market cheaper than they’re able to do. And so that’s very much kind of like a distribution in Asian kind of mindset as opposed to a product or service innovation kind of mindset. Yeah. How many salesmen?

It’s a good point. I think adding to that to wrap it up. I think there are these two concepts that either on successful approaches to probe distribution. So either you create a product that it’s a high order of magnitude better than anything else out there, like 10 times or 20 times better. So it will have sales because he’s continually better and then you get differentiated a lot or that approach approaches that you can do an incremental improvement on something that works. I’m done. It’s out there. But that incremental improvement helps a lot of people. So let’s say you increment is like the technology on five GS, for example, in telecom.

So a lot of people use Mollet. So if you add any incremental improvement there, you will have like billions of people. Therefore, it’s worth pursuing it. And it’s big deal. So on any mass adopted product, any incremental improvement, you have a market there, you have an opportunity or just go radical way, make something way better and you can capture lots of market share. So I would say you can think it that way as well.

Mm hmm. So that was Jeff Morris, Junior on Twitter. First time founders are obsessed with product set and time founders are obsessed with distribution.

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