Multiple Eggs in Multiple Baskets?
Or do startups & entrepreneurs need one single focus? (MultipleBasketStartups.com)
Smart investors don’t invest in only one company; they invest in many companies — to diversify their portfolio, to mitigate risk, and to increase the odds of having MULTIPLE winners…
So why is it so uncommon (and/or frowned upon?) for that same line of thinking to apply to startups — both the actual startup company and the individual entrepreneur? Or, as I will get around to proposing and elaborating on in a future post, why aren’t there more incubator/accelerator models that actually encourage the simultaneous pursuit of multiple ventures that share resources (particularly key personnel!) and benefit from the economies of scale from MULTIPLE EGGS IN MULTIPLE BASKETS?
Some of us can obviously multi-task more effectively than others. And some of us enjoy variety more than others do. But, whether we realize it or not, we ALL have plenty of experience dividing our time and focusing our efforts in multiple directions — because it wasn’t too long ago that we were all required to do it regularly…
P.S. And the “Multiple Eggs” in “Multiple Baskets” thing isn’t just for individual entrepreneurs — I think it should apply to fully-functional startups in virtually ANY stage…
Whether it’s proactively anticipating a future pivot and starting it now or an entirely different concept, when else can you start a startup and benefit from so many shared resources and economies of scale — avoiding all the traditional time-consuming parts of starting a startup — finding office space, interviewing/hiring, all the learning curves, etc. — you already did all that! Amortize that Shit! (over Multiple Eggs / Multiple Baskets!)
I’VE ALWAYS THOUGHT…
“Why don’t more startups proactively anticipate their pivots!?” If we know the first iteration is rarely successful, why wait until your back is against a wall to test Plan B? Why not use economies of scale and shared resources to simultaneously build/launch your next pivot (or 3!?) BEFORE you’re actually forced to? I mean, you’ll A-B test different subject lines in an email campaign but you won’t A-B test your core product?!? [And B2C startups? Depending on what your product is, I think you could (should?) be simultaneously launching 2, 3, 4, or 12 products — or even brands!]
- Additional Landing Pages are Easy.
- Additional Domain Names are ~$10.
- A few extra clicks and your Facebook Advertising guru has just created an entirely new custom audience for ad-targeting — a group that has no idea that everyone in a different [location? age bracket? whatever!] is seeing ads for a similar product but with a different name, a different price-point, and/or a different value proposition or marketing spin.
- Learning Curves suck.
- The amount of time/money you spend to do ANYTHING the first time is SOOOO MUCH MORE than the 2nd, 3rd, 4th time.
- Or, heck, take one of our “ViralWhatever.com IDEA+++ Starter Startups” and incubate it WITHIN YOUR STARTUP! Talk to us!
P.S. If you are a company that has spent a lot of time and money to perfect your logistics / fulfillment / shipping operations… or your social media / digital marketing / customer acquisition process… or your [insert whatever you are GREAT at!]… then WHY would you NOT spread that expertise, those sunk/fixed costs across another startup / another product / another business unit (the terminology doesn’t matter!)?!?! And/or become a Partner / Co-Founder / Whatever with another startup that would place TREMENDOUS value on not needing to re-invent the wheel (that you have already spent time/money inventing)?!?