Just read a GREAT interview with Seth Godin, who is about to launch a book entitled, “The Dip: a little book that teaches you when to quit (and when to stick)“.
For the record, I don’t think it’s time for Jobster to quit (or for me to quit Jobster). Recently, I’ve been asked to direct the product vision for our subscription recruiting application, which is used by hundreds of customers ranging from the enterprise on down. The application has evolved over a few years and has a wide array of features and initiatives. I’m eager to attack each of these with as little bias as I can to see whether they are providing the value we need ‘em to be. I think there are some features in our subscription app that need a little extra love and there are some that aren’t getting used that probably ought to get removed (with the ultimate goal of increasing our user’s value).
If a VC walked up to me tomorrow and said, “Here’s a pile of money. We need you to do something great in the recruiting space, and you’re going to have to compete with the likes of Monster.com,” I’d see that as a real opportunity. Monster and their ilk are well past the point where they are capable of startup-style innovation, and (more importantly) have a lot of revenue to risk if they shifted directions. And, beyond the competition that’s out there, there is an army of recruiters and small-biz hiring managers who are REALLY frustrated with the solutions that are out there.
While the opportunity is clear, it remains to be seen whether Jobster has the recipe to capitalize on that opportunity (though I’m pretty optimistic about it).
Jobster has some tremendous advantages over a “brand-new” startup. We’ve got a team of talented people already in place, solid infrastructure, and a lot of wisdom about the industry. And we have a pile of customers that are using our tools.
The one disadvantage we have is the same one that Monster and the more established players out there have. We have business model that’s bringing in revenue. We have years of legacy code that we have to deal with. We have tons of features, initiatives, and business processes in play, some of which are really valuable, but ALL of which demand attention and resources.
One of the key things that Jobster (and ALL startups) need to be willing to do is quit. We need to be willing to quit initiatives that aren’t working and quit ideas that no longer make sense. People can be adamant about holding on to their beliefs– Startup teams need to be doggedly agnostic about their beliefs (did you know that Flickr started out as an online game? How’s THAT for quitting).
And, most importantly, we need to be willing to quit ideas in a complete enough way that it frees up resources and eliminates the opportunity cost that Godin talks about.
“Smart quitters understand the idea of opportunity cost. The work you’re doing on project X right now is keeping you from pushing through the Dip on project Y. If you fire your worst clients, if you quit your deadest tactics, if you stop working with the people who return the least, then you free up an astounding number of resources. Direct those resources at a Dip worth conquering and your odds of success go way up.”
Great quote.
