Statistics show that 90 percent of startups fail, with 10 percent failing within the first year. But don’t let the statistics scare you away. Joining us on the latest episode of The Small Business Show is George Deeb, Author, Forbes Contributor, and Managing Partner at Red Rocket Ventures, who says you just need to “KEEP IT SIMPLE… STUPID.”
Key Takeaways
1. Deeb stresses that startups must concentrate on their core offering without getting distracted by peripheral ideas or opportunities. By honing in on what the company does best, startups can develop a robust and transparent value proposition that sets them apart from competitors. He advises against chasing after trends or attempting to diversify too early, which can dilute efforts and lead to a lack of direction. The mantra here is to build a solid foundation before branching out.
2. Additionally, Deeb highlights the importance of conducting a comprehensive annual strategic review, where startups assess industry trends, competitive dynamics, and internal performance. This review allows businesses to decide whether to introduce new components or adjust their approach. However, Deeb cautions that once this plan is established, startups should adhere to it closely throughout the year, avoiding impulsive changes that can disrupt momentum and dilute focus.
3. Drawing from his vast experience, Deeb shares a cautionary tale of a startup that tried to tackle too many different markets simultaneously—ranging from AI to e-commerce and B2B services. This lack of focus, he explains, often leads to a scenario where a company is spread too thin, unable to master any single area, and ultimately fails. Deeb underscores the importance of selecting one area of expertise and excelling in it rather than attempting to be a “Jack of all trades, master of none.”
4. The KISS (Keep It Simple, Stupid) principle should permeate every level and department of a startup. According to Deeb, this mindset needs to be part of the company’s DNA—from marketing strategies to operational execution and technology development. By instilling this approach in all departments, a startup ensures everyone is aligned and working towards the same clear, focused goals. This unity of purpose is crucial for maintaining efficiency and avoiding distractions that could derail progress.
5. While the KISS method is broadly applicable, Deeb acknowledges that a more flexible approach may be necessary in certain fast-paced, groundbreaking industries like artificial intelligence. In these cases, where the landscape is rapidly evolving, and the first mover often wins, startups might need to explore multiple avenues simultaneously to secure their position. However, Deeb emphasizes that such scenarios are rare, and most startups are better off sticking to a focused, streamlined strategy.
"You really need to focus on something specific when you're starting out, because you need to have something to excel at. Trying to do too many things at once is a recipe for failure." – George Deeb
