When Less really is More

I’ve been doing some home renovations recently, which meant that my kitchen was out of action for several weeks, giving me an excuse to visit a number of local restaurants for the first time. This experience made me realise that as with most other things in life, when it comes to restaurant menus, less is definitely more – the fewer the items, and the simpler the design, the more likely I will enjoy the meal.

At the risk of drawing a very long bow, I see there is a lesson here for anyone involved in product development, content marketing, or service-based solutions: the more choice we lavish on our customers, the more likely we are to confuse or overwhelm them, and ultimately disappoint or even lose them as customers.

As consumers, we are increasingly accustomed to having multiple and seemingly endless choices. While this can make for healthy competition (as long as it can support and sustain market efficiencies), sometimes the fewer options we have the more invested we are in our decisions.

In the case of a restaurant menu, having fewer choices is actually a good thing – either because we are more likely to think carefully before ordering, or because we are being guided to choose between items that have been purposely selected and assembled (curated?) by the chef. Plus, if we make a wrong or poor decision, there may be less to choose from the next time!

So, I found I really appreciated menus that had only 2-3 entrees, no more than 4 main dishes, and a discrete dessert selection. (OK, so the wine list can know no bounds….) Also, if the maitre d’ or waiters have to spend too much time explaining the menu structure, then it tells me more often than not that the restaurant hasn’t got it right.

When you think about it, the notion of “less is more” makes complete sense in this context:

  • If a restaurant has too many items, then not all of them can be of equal quality – how can the kitchen specialise in such a wide variety of dishes?
  • The best ingredients are usually those in season, and preferably locally sourced – which should be a natural constraint on the menu selection
  • Faced with limited choices, there is actually less risk of “menu anxiety” – whereas, agonising over a long list of dishes, or spending time ploughing through an over-elaborate menu can actually diminish the appetite…

I would also be more willing to let the chef decide for me, because a more focused menu should mean that the restaurant is more able to play to its strengths – this concept of the chef as curator should sit at the heart of product portfolios, content selection strategies and customer service options, while still making the customer still feel they have made an informed choice or purchasing decision.

Over the years, I have had the privilege to dine out in major cities and tourist destinations around the world. Some of the most memorable dining experiences I have had usually come down to a specific dish served in a particular restaurant – local speciality, seasonal ingredient, signature recipe, etc. – to which I have often gone back for more because it created such a lasting impression first time around, and because I know my choice will never fail to disappoint. (Of course, there is also the Proustian echo of associating food with a significant time or place….but let’s not over complicate the theory.)

If only everything else could be as reassuringly simple and consistent as a well-designed menu and a well-prepared meal.

Are Start-Ups a young persons’ game?

Last week’s Lean StartUp Melbourne meeting was devoted to the AngelCube accelerator program. Given some of the high-profile start-ups that have come through this process, it was hardly surprising that nearly 400 people turned up to hear various AngelCube alumni share their personal experience (as well as to enjoy some free beer and pizza, courtesy of the evening’s sponsors: inspire9, BlueChilli, Kussowski Brothers and PwC).

First up, there were lightning talks by 3 successful program graduates: the team behind fantasy sports app developer C8 Apps, Ash Davies from self-publishing platform Tablo, and Phil Bosua, the technical genius at LIFX who designed the WiFi-controlled LED bulb. All of them vouched for the benefits of the AngelCube program, and offered key learnings – such as “fail hard, fail fast, fail forward”, and the value of having a disciplined weekly cycle of iterative product builds. Access to quality mentors was also a key factor.

Then Indi from OutTrippin joined the guys for a Q&A panel session, facilitated by AngelCube co-founder Nathan Sampimon.

Some of the accelerator program insights on the night were quite revealing –

  • it’s all about product-market fit
  • a solo founder will usually struggle on their own
  • be prepared to either pitch or pivot at the weekly program reviews
  • the $20,000 seed funding (for 10% of your business) doesn’t go far…
  • a B2B concept is less likely to be accepted to the program (due to longer sales cycles)
  • the model is founded on lean methodologies, frequent iteration and getting to an MVP
  • people with at least one start-up project behind them tend to do better
  • the AngelCube angels are investing in the team as much as the idea

But are start-ups really only for young(er) people? This question has been posed by Dan Mumby, from Melbourne’s StartUp Foundation, which offers a different sort of program aimed at would-be entrepreneurs who may have all the trappings of middle age: family, job, mortgage…. which means they have different personal and financial risks to consider.

On the other hand, as at least one AngelCube participant said, if you are serious about founding a start-up, “your first job is to quit your job”.

Another, broader challenge facing the local start-up community is a lack of serious investor interest. According to one panel member, “In Australia, getting funding is a joke unless you are literally digging for gold”. This may change with the launch of VentureCrowd an early-stage equity funding platform. (But it looks like it will be a struggle – at the time of writing, none of the 20 or so deals publicly showing up on VentureCrowd’s website have attracted any funding.)

An alternative funding model, based on the sweat equity principle, is a venture bank, like New Enterprise Services that essentially matches ideas with expertise through a risk-sharing process.

I always recall the advice I was given by one serial entrepreneur when I asked him whether start-ups are for everyone (regardless of age). He replied: “Unless you can afford to invest at least $20,000 in your idea, and support yourself for at least 6 months while you develop it, then maybe it’s not for you.”

Interlude: Looking for some design inspiration

I’m currently working on a start-up project in the area of performance management. Part of the challenge is designing a user interface that combines the visual language of iconography with universally appropriate contextual metaphors, without lapsing into mere skeumorphism.

Having read some of the criticisms of Apple’s iOS7 logos and user frustration with the “improved functionality” of Apple’s new operating system, I found myself turning to the design philosophy of Paul Rand, who created the famous IBM rebus – the genius of which lies in the way it deployed human and natural components to depict a major computer brand. Rand said that simplicity wasn’t his goal, more a result of the design process. He also said design is simple, which is why it is so complex, and that design is everything.

So, while I ponder the application of human factors to a new product design, and as I search for some inspiration, I came across this animated version of Rand’s logo by Chris Rush.

From student hacker to start-up mogul – an audience with Jonathan Teo

“The man with the Midas touch…”

Jonathan Teo, tech VC with a Midas touch, has been back in Australia recently, and found time to stop by Lean Startup Melbourne for a Q&A with Michelle Bourke in front of an audience of 350 members of the local startup scene.

With a track record that includes Twitter, Instagram and Snapchat in his portfolio of start-up investments, Teo is obviously someone who deserves to be taken seriously, but the candour and humility with which he talked about his experience made for a very down-to-earth evening with such a high-profile investor.

As usual, the event was hosted by Inspire9, with generous support from Kussowski Brothers, Startup Victoria, Products Are Hard, BlueChilli, Investors’ Organisation, Startup Weekend and National Australia Bank.

Teo’s backstory has been told elsewhere (childhood in Singapore, college in Sydney, post-grad at Stanford, Google engineer, venture capitalist…) but the combination of having a great mentor, working in the (then) emerging technology of cloud computing, and some “right time, right place” good fortune has provided him with a powerful platform from which to join the upper echelons of silicon valley VCs.

“The Secrets of My Success”

Naturally, people wanted to know the key to his investing success. Rather than referring to some “special sauce”, Teo pointed to some simple principles:

  • Relationships – strong relationships are essential, both within the founding team, and across the right networks and insiders
  • Self awareness – many founders don’t see their own capability gaps, and therefore can overlook inherent weaknesses in their business
  • Key metrics – know what run-rates the business needs to achieve to meet its performance goals (cash burn rate, retention levels, acquisition costs, daily and consecutive customer usage)

In particular, Teo stressed that new distribution models form the lens for assessing new investment opportunities.

“Show me the money!”

During a discussion about bringing in investors, Teo was pretty sanguine – what works for some start-ups, won’t work for others. If you can self-fund, then do so; if you do need to tap external funding, start with friends and family (who will generally be more patient than professional investors); and if you have to bring in VC’s, make sure you know the trade-offs. He also suggested that crowdfunding is great for consumer plays, but ultimately valuations are determined by demand.

“New Thang”

When asked where “the next big thing” was going to come from, Teo was understandably coy (or simply discreet), and politely suggested it could emerge from somewhere in the audience. What he did offer were some thoughts on emerging trends that will influence future start-ups:

  • Fewer mass-market consumer products – according to Teo, “only China can support a purely domestic consumer play”
  • Less focus on patents, more emphasis on survival – not that IP isn’t important, just that the cost and effort of securing patents mustn’t outweigh the need to generate revenue in the early stages
  • Content niches – unique content is key to attracting advertisers and subscribers, and when combined with rich user data makes for compelling communication and network apps
  • The human touch – products that bring a more human digital experience will gain traction

Finally, Teo predicted the growth of disposable hardware – not sure I agree with this one, but I understand what he is getting at. Personally, I’d be more interested in recyclable hardware, and greater user-serviceable and customisable components.

Declaration: Thanks to the hosts and sponsors, I along with everyone else enjoyed the bounteous gift of free pizza laid on by the organisers.