Lessons Learned from Shutdown Startups - Part 1: Seeing The Matrix for Product Leaders

Lessons Learned from Shutdown Startups - Part 1: Seeing The Matrix for Product Leaders

In the fast-paced world of startups, there are valuable lessons to be learned from those that didn't survive. Rdio, for example, understood the power of recommendations from people you know. They recognized that solid recommendations build trust and word-of-mouth, making them a winning differentiation in a noisy market.

Similarly, product leaders need to have a clear vision and strategy, supported by data. While data helps with iteration, true success comes from having a well-articulated strategy and the ability to adapt and change when necessary. These "Re-inventers" are like unicorns, rare and highly sought after.

Product builders, like bonsai masters, understand the importance of pruning and cutting to strengthen the core of their product. They know that outsourcing their story or any component of their competitive advantage is a mistake. A prototype, on the other hand, is worth a hundred meetings. It grounds product discussions and ensures that time is not wasted on ideas that won't work.

Consumer products succeed because of how people feel about themselves while using them. Ego analytics, surprise and delight, and hooks that appeal to our laziness, vanity, and selfishness are the secret to success. Maya Angelou once said, "people will never forget how you made them feel," and this sentiment holds true for product experiences.

In a world where everyone is busy and skeptical of anything new, products must capitalize on this truth. Perceived performance matters more than actual performance, and designers play a crucial role in achieving this. By asking three simple questions on every screen - "how did I get here?," "what do I do now?," and "where do I go next?" - flaws in the object model, UX, onboarding, and orientation can be revealed.

Disruptive products are often simple point solutions that do one thing incredibly well. As customers begin to bring these solutions together, 10x better and simpler point solutions emerge. Surprise, delight, and intrigue are the most powerful and affordable drivers of product growth.

Launching a product without polishing the few things that distinguish it the most can lead to burning early adopters and missed opportunities. A great minimal viable product (MVP) should prioritize top customer needs and few customer wants. Optimize for the problems you want to have, and focus on the parts that distinguish your product the most.

Partnering with incredible designers can make all the difference for product leaders and founders. These designers bring creativity and innovation to the table, elevating the overall product experience.

Timing is important when it comes to sharing news about a product. It's essential to share it when you're ready for the attention, rather than agonizing over the timing. The best new products take us back to the way things once were, but with more scale and efficiency. They provide a sensation from the past while enjoying the benefits of the modern world.

Actionable Advice:

1. Focus on building trust and word-of-mouth through solid recommendations. Leverage the power of personal connections to differentiate your product.

2. Have a clear vision and strategy, supported by data. Be willing to adapt and change when necessary to stay ahead of the competition.

3. Prioritize the core elements that distinguish your product the most. Launch a polished MVP that addresses top customer needs and focuses on what sets you apart.

In conclusion, the lessons learned from shutdown startups and the insights gained from product leaders can guide us in building successful and sustainable products. By understanding the importance of recommendations, having a clear vision, and focusing on what truly matters, we can create products that resonate with customers and stand the test of time.