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Focus on Focussed Execution

Part of my job is meeting and talking to a ton of startups (Duh). The most common advice I’ve given and heard given to founders is focus on focussed execution.

What does that mean?

When Uber started out, they seeded only the Bay Area. They made sure they have a critical number of users and drivers in the region. Once they did, they raised their next round, and strengthened the Bay Area. Another round, and then they expanded across only a few more cities. Until they exploded and expanded globally.

Take Swiggy too. Started in Koramangala. Raised funds. Got to 1K orders a day in Bengaluru. Raised further funds. Expanded to a few more top market cities. Raised until today not only are they in nearly all major cities in India, but also doing a lot more than just food delivery.

“Monopolize a Market Before You Expand” - Peter Thiel

A key thing to remember about venture funding is that it funds for potential, yes, but also for what has already been executed. An idea amounts to nothing if it is not executed well. Execution needs to be showcased before investors invest for the potential of scaled execution.

While it’s not applicable to all startups, the best advice for a startup is typically to focus on executing in focussed verticals, geographies, and segments. Trying to be everything for everyone all at once leads you to being nothing for no-one. Worse, all your resources, including human and capital, are stretched too thin to be drawn back for emergencies.

My suggestion is that investors like focus. If you’ve executed in a locality, investors fund for the potential of replicating that execution in cities. Post that funding comes for multi-city replication. Post that nationwide, and multi-vertical execution. This will also allow you to find the roadblocks and solve them at a smaller scale before scaling.

Focussed Execution is attractive.

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