“Build a better mousetrap, and the world will beat a path to your door” is a saying derived from Ralph Waldo Emerson. Apparently many take this metaphor quite literally, with more than 4,400 patents issued by the US Patent Office for new mousetraps, with thousands of more unsuccessful applicants, making mousetraps the “most frequently invented device in U.S. history”. However, you don’t want to be one of these inventors.
The assumption that technical wizardry is sufficient to build a successful business is a common psychological flaw among aspiring tech entrepreneurs. Thus to help you see the light through the fog, let me give you a brief tutorial using the language favoured by engineers – mathematical equations.
T ≠ B
Technology IS NOT a Business
Innovative technology is just a starting point and the skills and talent required for R&D do not always translate into product development know-how.
T+P ≠ B
Technology and Product IS NOT a Business
Productization skills are essential in the new tech business. But even having an innovative product without a good market for it will not result in sales.
T+P+M ≠ B
Technology and Product and Market IS NOT a Business
Arriving at a good market fit with an innovative product that customers are buying is an excellent place to be. But this by itself still does not make for a successful profitable business.
T+P+M+E = B
Technology and Product and Market and Execution IS a Business
Like well-oiled machinery that performs reliably day in and out at a reasonable cost, making something useful for which there is a demand and what could be sold profitably – a well-run successful business pulls all these elements together in a harmonious whole, managed by an experienced team with complementary skills and talents.
So, there you have it! And if you are hungry for more complex math, here is another equation to ponder 🙂
Challenge: Please let me know in the Comments section below how you interpret this “equation”. I am happy to fund a dinner for further discussion with an author of the most interesting comment!