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Don’t be cocky, don’t be flashy, there’s always someone better than you

– Tony Hsiesh, Zappos

Entrepreneurship is a strange world, the more I delve into it – I realise there is so much more to learn. Often these learnings are in the simple strategies and thought processes. But the beauty of these is in using these learnings/knowledge at the right time.

The first part of this quote puts someone straight back in their place – particularly if a certain humility is not being displayed. However, i do believe that the heart of this quote lies in the second part – ‘There’s always someone better than you’.

A key part of being an entrepreneur or the initial days of pitching ideas hone the concept of USP – unique selling point. The focus of a USP is a huge part of a startup which makes us constantly focus on being different. It is a fair ask because most of the investors will want to know how we are different and what makes us stand out in the test of time.

The business world, naturally is very competitive – we all have heard the stats – <75% of the startups succeed. And most of the times, it is not just because of the lack of ideas or money. There certainly are more factors at play.

Someone Better than You!

I have met entrepreneurs who believe beyond conviction that there is absolutely no one better than them. Either the approach is great or the commitment is great.

Although I admire the belief and conviction, I still find it hard to compare that in a real world context where there is no dearth of amazing talent.

I would like to tackle the ideas behind ‘someone better than you’ in the areas of external competition, hiring in startups and constant need for innovation in this discussion.

1. Competition

Every founder I have spoken to has often come back and said ‘Oh, we are far better than our competitors, they don’t do X, Y and Z properly’. I think it is brilliant to identify what our competitors are doing wrong so that we can build on those and provide the customers what they really need.

At the same time, it is really important to understand why our competitors are being used. As important as the shortcomings is understanding why customers are willing to pay for our competitor’s products. What value are they getting?

Let’s look at it this way -people are not foolish, they are working with a supplier/business because some of their needs are being met. The motivation for them to switch suppliers and perhaps come to you is when there’s a better value proposition for them.

Granted that we won’t be able to provide this to the customer in every segment, after all the competitor too has their own USP. But it is certainly a good line of thought to understand what drives the customers and might move them over the tipping point.

2. Hiring/ Recruitment

One of the tougher parts of being an entrepreneur is moving from the role of being an expert to a business strategist. This is particularly difficult because most owner/founders tend to be experts in a particular segment. It is very hard to expect a new recruit to fill in all areas of expertise that the founder has.

I have been in interviews with founders where I’ve felt very uncomfortable with the questions asked and naturally dissuaded me from considering working with them. Most times, this is to do with the expectations which tend to be a bit unrealistic.

When it comes to hiring in startups, it is very important for founders to note that the hiring is for a person’s value and experience. They can never be a replacement of the founder and be expected to do the exact same things. The hire / recruit is expected to lead in their own dimension, but in the view of overall strategy.

However, this is not an easy decision/process to go through. This is one of the reasons why some startups hire a CEO who can work through the big picture while a founder can focus on the specific segments where they can add real value.

3. Operations and Logistics

For a large company, it is often easier to get better deals because of the size of businesses. As a startup, it is often ludicrous to engage a supplier with a carrot of large deals.

Suppliers too have their demands and know how to balance these requirements. There is often a larger advantage in taking these relationships beyond the transactional value. It is  short term approach to try and get the best deal/value for money in every situation.

Instead, a focus on long term relationships and partnerships can yield more business value as startup grows. As we can see, the theme of this article is ‘There’s someone better’.

It is not the easiest thing to digest, but at the same time a humble approach like this can open windows of opportunity in the competitive segment.

Don’t be cocky, don’t be flashy, there’s always someone better than you

– Tony Hsiesh, Zappos