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We have already established that a great idea/product is something that your users absolutely need, or at least love. Therefore, a great execution is building the distribution network of that great idea/product. A distribution network that is growing and has momentum.
So how does one guarantee great execution? A good place to start is making sure we have the right metric in our rubric. Are we measuring the number of users who signed up? Or are we measuring the number of users that made a purchase?
This sounds trivial but it is really is not, my first startup was a peer-to-peer payday lending platform. For the first few weeks, we measured the number of users that signed up, then we went a little higher to the numbers of loans, then we used the amount of money being loaned out per week until we realized that these only gave a partial view of the state of the company; what about the defaults? the lenders? So we started measuring loan cycles, from the moment a lender made the money available to the time he received his returns.
What we had to do became a lot clearer with that framework and we started seeing real growth until some other stuff happened and yo boy decided to check out.
Ultimately, a great idea is a great product, great execution is when the company built around the product makes money.
Speaking of this, Elon Musk has a really neat way to put it and I’m paraphrasing: a product is a solution to your users problem, therefore a company becomes a group of people who gather around to find and offer a solution to said users’ problem.
See you next week.