Jussi Salovaara’s Post

Yesterday, Jussi Salovaara made this insightful post about how critical it is for startups to pick a large, urgent and valuable problem. It kept me thinking for a while about the problem we are solving at ReLowCode. My answers to his questions are here. I'd greatly appreciate all the feedback my network can provide on this. No need to sugarcoat it, I think I can take it. In a sentence, we are creating a tool that allows SMBs to build custom web applications easily and quickly. So the problem we are tackling is: LARGE because over 50% of SMBs lack data expertise for growth, often investing in costly, underutilized software that misaligns with their needs (AWS research). URGENT because If not solved quickly, businesses may continue to overspend on ineffective software, struggle with inefficient processes and lose competitive edge due to suboptimal technology solutions. VALUABLE because SMBs operate on limited budgets and need to quickly develop and deploy applications to respond to market changes and customer needs. We estimate a company can save over $100K in development costs by using our solution instead of traditional software development. What aspects of these ideas resonate most with your current needs or pain points?

Good advice for founders and uni spin outs :)

Product-market fit (PMF) goes way beyond finding a suitable product for a market. Product-market fit, according to startup coach and investor Marc Andreessen, "is being in a good market with a product that can satisfy that market." The problem is that many people believe they have found their product market fit after they make their first sale. But let's examine what product-market fit should look like. That is, according to Marc, 1. Customers are quickly adopting and purchasing your product 2. Usage is rapidly increasing, needing infrastructure expansion. 3. Positive cash flow is building up in the company’s accounts. 4. You are hiring more people, especially in sales and customer service. 5. Media Reporters are eager for interviews about your hot new product. 6. Investment bankers are showing interest, which could indicate a high valuation. 7. Marc also makes a lighthearted remark about getting loads of “rich people” privileges like free meals every time you go out. So, it's not just thinking that you have the product the market needs, there needs to be evidence that your estimation is correct.

If you don’t think you need traction and can just raise off an idea — you need a reality check.
 Traction is more than just progress—it's proof.
 And in the eyes of investors, especially here in the Northwest, traction isn't just important, it's everything. So, how do you demonstrate traction to potential investors? 1. Show Growth: Not just in user numbers, but in engagement, revenue, and repeat customers. 2. Highlight Customer Feedback: Real quotes from real users can be incredibly powerful. 3. Explain Your Metrics: Don't just present numbers. Explain what they mean for your business's future and how they indicate potential for scale. 4. Discuss Your Churn Rate: Be honest about it. But detail what you're doing to improve it. This shows investors you're not just you are actively addressing your challenges. In a market flooded with potential investments, traction sets you apart.

Am I strange for being so obsessed with the mechanics and principles of product-market fit? IMO... EVERYONE should be obsessed with this topic. Even if you're post-PMF, even if you're not a founder. Why? Because I don't think you can *really* understand business unless you deeply understand how product-market fit works. Product-market fit is the core of business. To get to the core of how product-market fit works, you have to answer two simple but important questions: 1. How would you draw a system diagram to depict the mechanics of product-market fit, when it works? How does this thing work as a system? 2. What is the nature of the process by which something goes from "not working" -> "working" -> "deeply working"? Without solid answers to these two questions, I don't know if you can really answer *any* important business question, like: "How can we scale without becoming a calcified, cash-incinerating bureaucracy?" And if you DO understand the mechanics of product-market fit, the 0-1 stage goes from being *magical* to being something that is actually approachable, and perhaps less failure-prone. I believe with my whole soul that if more people understood this product-market fit thing, we'd instantly have a better world. With innovators and risk-takers failing less, serving better, and technological progress aimed at bigger and bigger problems. And fewer founders getting their souls crushed. This is why I put my soul into this, and open-source as much as I possibly can -- **everyone** needs to understand product-market fit

Are you using a well trained dog to find business opportunities?🤔🔄 Analysis paralysis is a state of overthinking or overanalyzing a situation to the point where a decision or action is never taken, effectively paralyzing the outcome. 🛑🚫 When speaking with network and partners, I observe three distinct camps: ☄ Early Adopters 🚀✨ – Those who embrace cutting-edge software, apps, and hardware, scaling exponentially and setting trends. 🚜 Safe-Players 🛡️📈 – Those who follow a common way of working, moving towards new tech only after Early Adopters have tested and proven the investment works. 💾 Stagnates 🐌⏳ – Those who stick to old methods, resulting in inefficiency, business growth plateau, high employee churn or difficulties in attracting new talent, and client dissatisfaction. It's crucial to do a self-check to see if you are caught in a vicious circle of stagnation. 🔍🔄 If you want to get a questionnaire and recommendations on how to improve your current state - just leave a comment, DM me or get it here https://shorturl.at/BRnGO 📝✅

What I'm building next - New Post Wrote about: - leaving Capital - building personal conviction - what being "ready" meant to me - picking "boring" problems and markets - why we're excited about solving state and local compliance problems - talking to 100+ customers before writing a single line of code - the up and downs of of recruiting co-founders (and how Steven Schmatz and I ended up deciding to do this together) and more... Finally sharing a little bit more about what our team has been working on and how we got here. More to come in the future. Full piece below:

When 80% of a startup's revenue comes from 20% of your customers, conventional wisdom says you should be a jolly happy founder. The real life lessons point quite the opposite. That's why the famous 80-20 Pareto principle is a real double-edged sword. Why so you may ask? Because you are over-relying on a few customers. If a major client decides to pivot their strategy, faces financial setbacks, or simply shifts their business elsewhere, the impact on our revenue could be profound. It's akin to placing most of our eggs in a few baskets, leaving us exposed to the uncertainties of external forces. A study of Fortune 500 companies found that overreliance on a small number of customers was a common factor in business failures. In the tech industry, companies that have diversified their client portfolios have shown more resilience during economic downturns. The other, lesser-known challenge is what it signals to investors. When 80% of your revenue comes from 20% of your customers, it shows you are too concentrated and you lack scale in your customer acquisition. And you are in a comfort zone. All this is not investor-friendly, when you go knock on doors for money. Instead of relying on a few big clients, segment your target audience and create strategies to attract and retain a more extensive and varied customer base. #Shahriarsuncommonsense

The cleverer you are, the more likely it is that nobody gets what you do. This is what I find with those that I work with. Inventors, tech geniuses and scientists tend to be particularly bad at simplifying what they do. Those who consult and see opportunities in business development or marketing then become the jack of all trades on LinkedIn. Founders seeking funding are usually pretty bad at understanding what investors are interested in. And what they see as fluff. Does this ring true for you? If so, I can almost definitely help you to simplify your service offering for the masses. Because I'm a simple sort of chap. Who doesn't understand your niche, your business, the problem you solve, or your target market. I just keep asking questions until I do. And then explain your business/service offering in a sentence or two. Because if you can't explain it simply... ...you don't understand it well enough. And that gem was straight from the mouth of Albert Einstein. And he knew what he was talking about! So if you are struggling to explain what you do or get funding, get in touch and let's have a chat.