Mike Russell

Another observation from last week’s startup conference: the continuing importance of differentiation … *especially* in any difficult economic conditions.

• Several startups seemed to be similar to existing services/products (or even others at the conference). They didn’t answer the question “how is this different?” Or “why should I invest in (or buy) this compared to others?”
• Service providers for startups were also attending. At least 3 that approached me were providing contract development services. I asked all 3 the same question: “what makes your services distinct or different from what others provide?” The answers? Essentially the *same* … meaning no differentiation.

Have you established sufficient differentiation for yourself or your business?

It’s hard (speaking from experience 😉 but critical to getting and keeping income (if a job) or revenue (if a business) …

There are lots of resources out there if you want to DIY it. One of the best general references (still) is Perry Marshall’s book 80/20 Sales and Marketing (https://amzn.to/3A3ACkf).

If you need help sorting through options or to attend an upcoming free brain trust to hone your differentiation, let me know.

Attended a big in-person startup conference this week … as might be expected, a significant theme was AI.

The consensus of VCs, speakers, entrepreneurs: we have only seen the start of the AI wave.

It may well grow to tsunami level …

Learn how to surf it now so you don’t wipe out later 🙂

That is a question being asked a lot (and worried about a lot). But it is the wrong question … at least until AI reaches full human capabilities 😉

Most humans cannot compete with AI in areas that AI excels.

The better questions:

1. How can AI complement humans? Make them more effective? Be used as a tool?
2. How can humans excel in areas where AI does not? Go beyond “competing” with AI?
3. How can you leverage your “human” to advantage against AI?
4. Can you compete with someone who is thoughtfully leveraging AI? (suggested by Mark Riffey)

How are you answering those questions in your business or your work?

If you are a leader, how are you helping others answer those questions?

Is it sunset?

Or sunrise on a better day?

Up to you … not AI!

P.S. I’ll be running a brain trust collaborative event on this soon … let me know if you want the link to participate.

What should be our reaction to all the AI/ChatGPT frenzy?

Ariel Simpson said it well in a comment to my post last week about AI-enabled leadership training:

“I love this concept. Asking whether or not AI is a “threat” to modern workers is so short-sighted. It’s a tool! Let’s equip leaders to use this tool well and responsibly, without losing out on the benefits the tool offers.”

AI will only be a threat if you ignore it. Or do nothing. Or wait until the dust has settled.

Not taking action now is the risky move, not the action itself.

No one can tell you *exactly* how things will fall out.

You can, however, up your leadership game and help your team to take your best shots now to figure it out.

If you’d like to discuss how to do that, you can set a time (click here) to discuss your needs, or if you prefer, contact me via email (click here).

Consider this: in normal times, 80% of businesses get the leftovers in the market, if anything is even left over:

➳ The 80% get only 20%
➳ 20% of businesses get 80%
➳ 4% achieve 64%
➳ And just 0.8% achieve 51%

❗ This means about 1 in every 100 businesses get HALF …

Those are the “normal” 80/20 curve effects.

That was before the now AI-enabled tipping point of major change, before COVID changed the workplace in many ways, before societal changes affected how people work over the last few years …

It may well be becoming a 95/5 ratio right now.

Meaning 95% of businesses will get just 5%, while the top 5% get 95%.

It might even become 99/1 … and those on the bottom end of the curve will have little left indeed.

Some are making comparisons to when electricity was introduced, and the impacts on both business and life (e.g., Do most people now depend on a kerosene lamp for light at home or work? Use animals or people to power machines? A washboard for cleaning clothes?).

Many businesses and industries were both destroyed and created almost overnight.

This isn’t about being an alarmist, but being a realist.

Don’t get caught in the 80% … or 95% … or 99% that get scraps.

The time for evaluation and any needed action is now, not in a year or two when others have seized the opportunity. And this is a time of opportunity.

👉 We’re here to help. If you want to explore further, you can set a time to talk (link here) or, if you prefer, contact me via LinkedIn message or email (link here)

📩 If you’d like information like this via email instead of the hit or miss of LinkedIn feeds, send me your email and I’ll add you to the list.

Whatever you do, make sure you “do” …