The power of asking “why” in business

As a business owner, I often find myself reflecting on the reasons behind the decisions we make in entrepreneurship. Recently, I had the opportunity to work with a promising startup seeking my guidance on their flourishing SaaS business. Their journey serves as a valuable reminder that it's perfectly acceptable not to have all the answers, especially when starting. Let me share their story.?

A promising start

The startup that asked for my help developed innovative low-code solutions and generously shared templates with the community, which garnered significant attention and downloads. Encouraged by this response, they decided to transition into a commercial business model, where the free offerings could act as a springboard for cross-selling and upselling opportunities.

Their business model involved collaborating with a vast network of professionals worldwide, a cost-effective and flexible labor force untethered by commitments. Eager to chart their path to success, they contacted me as a mentor, hoping to refine their strategy and secure funding.

The power of the second ‘why’?

As we discussed their software, target market, and team, the conversation inevitably turned to funding. I posed a fundamental question: "Why do you want to raise funds?" Their response was straightforward, "To finance our marketing efforts for scaling up." Such an objective made perfect sense, yet I knew it was only the tip of the iceberg.

Digging deeper, I asked, "Why do you want to fuel marketing for growth, and what precisely are you aiming to achieve?" They had no answer.

And honestly, this situation was not uncommon, and I empathized with their predicament. However, it highlighted a critical issue. Their business goals, strategy, and product were misaligned.

Lessons from my journey

I shared my own experience, recalling a similar misstep when my company secured funding from private equity. At that time, I thought I had thoroughly considered our strategy, but I had merely scratched the surface.

It's crucial to ask the "why" question repeatedly, at least five times or more.

Why make this decision? Why do you need the funding, time, or resources? What will the outcome be? Why is that outcome significant? Why expand the business in a particular country? Why assume the market there resembles others??

The why never stops

My message to the entrepreneurial world is clear: never stop asking questions, and never accept the status quo. Embrace curiosity, and resist the urge to become complacent. In the ever-evolving business landscape, there's always new information, fresh competitors, and unexplored opportunities. So, therefore, keep asking "why?"

Sharing some extra growth tips

Recently, I had the privilege of discussing these insights on the SaaSBazen podcast with Johan de Wit, where we explored the difference between growth for its own sake and pursuing meaningful improvement. I encourage you to listen and share your feedback, as our collective experiences and wisdom can help shape the future of business in exciting and unexpected ways. I will share the link soon.

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Cheers,?

Job