80/20 Rule for Startups

Last week I was at the Startup Event at Olympia in London. One of the guest seminar speakers was Brad Rosser, currently a Business Angel and running a successful property investment service. Brad previously worked along side Sir Richard Branson helping to build the Virgin empire.

One interesting view he had, in particular relating to internet/technology startups was the fact that you should concentrate at launching when 80% ready.

I find this concept very interesting, I am sure a lot of entrepreneurs are like me and are striving for perfection, wanting to add on that extra AJAX element or killer feature that will blow the competition out of the water. Brad’s view is that when faced with the decision to start launching now or holding off and waiting for the perfect product you should always get the product out there. I have to say I totally agree.

I am not saying I agree with launching a product with the label Beta when it isn’t even ready for initial testing but if your product is at a stage when users can start benefiting from it then it is time to bring it to market.

Talking from my experience a lot of founders (including myself) tend to focus heavily on the backend when launching a new business venture. Brad’s view is, particularly at launch the entrepreneur should pour all energies in to the front end promotional aspects of building the brand and getting it in front of the people that matter.

Of course you will also have the added benefit of using your early adopter feedback to make further improvements, additional features that you may not yet of even thought of. You will be surprised what directions your creative mind may go in when reacting to feedback from these initial users.