Thinks 522

Joerg Wuttke: “My experience in China is that when things get really bad, the technocrats come in, and they do make some reforms that are right. Perhaps there will be a rethink when the domestic economy hits rock bottom; perhaps they will realize in Beijing that they need foreign companies after all. Perhaps they will then open the doors wider again. But today, of course, we are not there yet. For now, China is not getting out of the corner the president has maneuvered the country into. They are prisoners of their own narrative. It’s rather tragic: China was the first to get into the pandemic, and it’s the last to get out. And in the meantime, they’ve been telling the whole world that they’re the best.”

Ortto on product-led growth vs sales-led growth: “In a product-led growth strategy, the product itself is the main vehicle for growth and retention. Every department in the business, including marketing, customer service, and content will be optimizing campaigns and activities towards specific product actions that are proven to bring the customer closer to conversion…Product led vs. sales led growth is an on-going debate in the SaaS community. But it’s becoming increasingly clear that the answer is most likely both.”

WSJ on why startup founders shouldn’t divide ownership equally: “New research finds that early-stage companies formed with an equal ownership split—such as 50% each for two partners or 25% each for four—were less likely to have measurable revenue or employees one year later, says Dave Noack, an assistant professor of entrepreneurship in the Goddard School of Business and Economics at Weber State University in Ogden, Utah. How much of a difference did it make? Companies with an unequal split were 21.7% more likely than other firms to be up and running a year later. “Teams that divide unevenly, with at least one person having founding control, are more likely to launch and reach the marketplace,” says Dr. Noack, who also leads the university’s entrepreneurship center.” I had written about this a couple years ago. “One lesson I have learnt through the years is that a new venture must avoid having equal co-founders. The emphasis is on the word “equal.” Whenever there is more than one founder, the temptation is to ensure that everyone is treated equally – and thus equity and powers should be also divided equally. I used to think the same way in my early days as an entrepreneur. What I realised over time is that this doesn’t work well in reality. The solution is to have one person who is the dominant leader and the final arbiter in decisions.”

Published by

Rajesh Jain

An Entrepreneur based in Mumbai, India.