ENTREPRENEURSHIP CHALLENGE | a miniseries:
Entrepreneurship Challenge is a new miniseries that will differ from my typical blog posts. In these posts I will experiment with my interest in entrepreneurship in a hands-on way. Over the next few weeks I will blog about every “challenge” given to me by local entrepreneur Diana Kander. Kander and I connected on Twitter, and after further discussions, she offered to give me entrepreneurship challenges and then meet with me to talk about them. I will comment on my experiences and discuss the lessons I learn about entrepreneurship and media entrepreneurship in this series
About Diana Kander: Kander is a Columbia-based entrepreneur and a Senior Fellow at the Kauffman Foundation. She is also the author of book called “All In Startup” which emphasizes the importance of teaching students about entrepreneurship through hands-on practice.
Giving out free money to people is hard. I know because on Tuesday night I completed my first entrepreneurship challenge from Kander – to hand out five $1 bills to strangers at the Columbia Mall. I also brought along Kara Tabor, a journalism student interested in entrepreneurship. Between the both of us, we had several people turn down our free money. (Kander also challenged us to try to sell a book for $5, but Tabor and I ran out of time and were also slightly afraid of the mall cops). Although we gave away most of the money with varying approaches, the experience was somewhat discouraging. Some people didn’t want what is seemingly the best product imaginable. In fact, most of them wanted to know if there was a catch. Check out this video (Yeah, I know it’s low quality) of me trying to give out one of the dollars. You can here the woman ask if it’s shady at the end.
We later met up with Kander to debrief on the experience. Here are some of my top lessons from our conversation:
1. Build it and they WON’T come
According to Kander, most want-a-preneurs (people who really want to be entrepreneurs but can’t make money) don’t actually talk to customers until after their idea has already been built and marketed. That’s when they realize they don’t have an idea that people want. She told us that our first challenge was meant to simulate the challenge of talking to customers – and she’s right, it’s really hard. The overall takeaway here though is that a “good” idea may not actually make it in the real world. After all some people won’t even take free money.
Journalists are really bad at this entrepreneurship tip because we get caught up in how “good” our content is. But, as much as we all wouldn’t like to admit it, journalism is a business. Especially as online news sites try to find pay models that work online, it is especially important to find out what news consumers want in the first place. However, most news organizations are still of the thought that there is an inherent demand for journalism excellence. Although I, too, believe that there will always be a need for quality journalism, there is a point when great content doesn’t matter if no one sees or wants it. Journalists can learn a lot from this tip. We should be talking to the target audience of a story and then try to shape content around them.
2. Customers buy solutions
This lesson piggybacks off lesson number one. During our meeting, Kander told us that customers buy solutions to their problems, but entrepreneurs don’t always design products around a real problem. In the minds of many entrepreneurs, Kander said, solving a problem means creating a product that doesn’t exist yet. However, this mindset is faulty and explains why there are so many apps in the world that never make any money. Ultimately good ideas don’t make money, ideas that solve a real problem make money. A $1 bill, for instance, doesn’t solve a problem for some customers. Kander said you can only find out consumer problems by talking to people. She recommends pitching an app idea to customers before the app is created and to see what percentage of people will actually try to search in the app store for the product. These are the people who would actually buy the product.
As I touched on in the blog post about the 2014 News Media Report I wrote a couple of weeks ago, there has been explosive growth in some digitally native publications. Many of these publications recognize customer needs first. For example, BuzzFeed has seen huge growth from users because they solve a problem. The site condenses information on the web and packages it in efficient and social ways. I don’t always have time to sort through hundreds of news stories online, but if a news story makes it to BuzzFeed, I will probably read it because it has been condensed to fit my time constraints. The site has its critics, but its success has allowed for increased focus on original reporting. The site has been able to hire a number of Pulitzer-winning journalists to fill its reporting departments. Other journalists can learn from their focus on consumers.
3. Successful entrepreneurs are detectives
Extremely successful entrepreneurs seem pretty lucky, Kander said. Most people couldn’t have looked back and predicted Facebook. However, Kander said the most successful entrepreneurs make small bets and validate each stage of their product and startup before taking huge risks. For example, Facebook tested its early site on college campuses where other social media sites existed because the founders wanted to be sure customers liked their product. Successful entrepreneurs investigate what the customer wants and aren’t disillusioned by how much they like their idea. Before marketing our dollar product, for instance, we would have benefitted from many more rounds of talking to customers.
Most journalists are already doing detective work. They find out information other people haven’t asked about and are always investigating. Journalists should also use these same skills to better serve their audience. Journalists would benefit from making consumers a more active part of their reporting by seeking feedback before and during a story’s production, not just after it has been published.
Stay tuned for an update on my second entrepreneurship challenge. This weekend Tabor and I have been challenged to turn $1 into as much money as we can in an hour.
Do you have any advice? How much money will we make? Tweet me @_SCDarby.