Posts Tagged ‘groupon’
If you work just for money, you’ll never make it, but if you love what you’re doing and you always put the customer first, success will be yours.
Ray Kroc, founder of McDonald’s said. Google founders loved their search engine. Today Google seems to love money more than anything.
Google Catalogs, Google Answers, Google Wave and even the most recent, hyped up Google Buzz feature on a growing list of Google flops, with, on average, 200 projects that are being worked upon at any time at Google.
A seeming common denominator of all its failed attempts is its chase of existing and successful business models or competitors. Google Wave was to reinvent email; Google Buzz was to be a direct response to Twitter; Google Answers was to counter Yahoo! Answers and so on.
Since 2001, Google embarked on acquisition of middle and small size companies, in its bid to enhance the range of its services both vertically and horizontally. More than 80 acquired companies and 10 years later, yet its strategy, approach and mentality have hardly changed.
In a certain sense, Google stopped innovating. Many of its failures could be somewhat explained away by looking at how it tries to go about chasing others’ success. An enlightening interview with a Google exec revealed some crucial points – scope of work, team size and usage of infrastructure, etc. – of how Google cannot, for example, build an Instagr.am equivalent.
Of course, Google did and does good things. Adwords, Adsense, Analytics, Android and its transformation of online advertising using acquired DoubleClick technology, have done and will continue bringing value to businesses and end users.
But, is the value offered by Google justified by the growing number and impact of its flops?
It all boils down to a company’s DNA. Google’s DNA is search, and it built around it, growing and becoming successful. Now it tries to “go out” of its DNA and diversify, not an unusual drive for a company of its size and track record. It needs t keep in mind, however, that similar attitude brought down other big and successful companies in the past. Instead, what it could do is to make its own search smarter and richer (in relevancy, targetting and search result contents).
The usual question that Google and other failed/successful entrepreneurs/businesses ask themselves daily is, “Should we Innovate or Copy?” The word “Innovation” became a cliché, despite the fact that innovation wars lead nowhere and hurt everyone.
Perhaps it is time we start to mInnovate.
Many aspiring entrepreneurs, without having previously started a business, already have a fixed set of conceptions about embarking on a new venture. The most wide-spread and misconceved of those are:
- I need lot of money to start a business (many ways to start-up with no money or with a bit of bootstraping)
- I will get rich soon (although some successful startup founders get rich and advise others how to get rich, it will require time till your business gets traction and starts making profit for itself and for you; brace yourself to get rich slowly, in the best of cases)
- I need to have a well-conceived and thorough business plan (it is true that business plan is an important fact, but many consultancy and web service providers started off without one)
- I need a unique and great idea to build upon (it is far more important that the idea addresses an open need or delivers in a better, more efficient or more affordable manner that currently available on the market; Betamax vs. VHS story)
- I am the boss and I know better (your employees, your customers, your shareholders, and most importantly, your competition will affect and have sawy on your decisions)
- It will take lot of time till my business makes profit (while number crunching to project profit is useful, it is by no means sufficient; focus on customer needs and offering value is what will eventually bring profit; some take lot of time and other take a year or two)
- I will have more time and freedom (nothing can be further from truth; this is your business and every idea, problem and solution – especially at the beginning stage – will have to go through you, worry you, make you sometimes anxious and other times happy)
- I have this nice/cool product/service and will surely get customers/market share (Apple Newton, Motorola Iridium, and many of top dot-coms were built with this idealogy and resulted in failure)
- I am the boss and I can pay myself as much as I want (while there is much debate about how much a founder’s salary must be, it is obvious that a founder needs to share love with employees if he expects their loyalty, devotion and passion in work)
- I need to take a bold risk in order to succeed (was Bill Gates a risk taker? you rather need to be flexible and adopt to realities, solving problems as you go)
The misconceptions above (and any of their combinations) usher in a bad start, difficult and eventually unsustainable growth of businesses.