3 Things: Connectivity
When people use the term connectivity, they often mean general connectivity. You follow your friend’s vacation on Instagram. You keep in touch with college buddies on Facebook. You congratulate colleagues on LinkedIn. With the help of your smart phone, you know what’s happening in the world.
Entrepreneurs use the term differently.
Because specific action is better than general information, entrepreneurs link connectivity to business outcomes. In particular, successful entrepreneurs rely on physical, peer-to-peer, and distribution connectivity.
Physical
All things equal, entrepreneurs want employees, partners, and collaborators co-located. Physical connectivity dramatically increases the rate of exploration, testing, and execution.
The best example is Silicon Valley.
For decades, Palo Alto has been the best place in the world to build a startup. Within a short drive, you can access Stanford, Sand Hill Rd. (VC Row), and some of the most exciting companies in the world. On any random day, you and your small team can work out of a coffee shop full of entrepreneurs. This collective learning environment is rich, exciting, and valuable.
Others locations — such as Austin, Singapore, Berlin, and Ann Arbor — are physically connected in exciting ways.
Lesson: Physical proximity is important for a thousand small reasons.
Peer-to-Peer
Entrepreneurs should actively seek peer-to-peer connectivity. This connectivity is often digital.
Reddit is a good example of peer-to-peer connectivity. The site fosters deep engagement among its audience. On the platform, entrepreneurs can both learn and contribute. The virtuous loop has its own merit. Over time, you learn who to follow and who to ignore. You can weigh peer feedback and input.
Lesson: Engage the smartest people in your industry, regardless of where they are, and add value as a contributor.
Distribution
The internet has made distribution connectivity necessary and achievable. As Ben Thompson, a well-read technology writer, recently said “the internet enables niche in a massively powerful way.”
Some traditional businesses, like restaurants, can get their brands, but not their products, to a large number of people over the internet. But technology startups can get their brands and their products to a large number of people over the internet.
By understanding distribution, entrepreneurs create pathways to new users and moats against competitors. Be the best at something and ship it widely.
Lesson: Few entrepreneurs deeply understand distribution connectivity. Learn it.
