BRAVE: The Startup 10x Strategy and the Moats That Keep You Winning - E645

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Why should founders focus on a single 10x advantage and how does it shape their strategy?

Jeremy Au 0:00
A lot of us are using Chat GPT for marketing purposes. Instead of hiring somebody for sixty thousand dollars a year. They can just pay $600 a year to get marketing done by AI. That is a hundred X difference in cost for an equivalent amount of quality. Because the fresh graduate would be about $60,000 per year. But AI says it's about $600 per year. 100x difference. The company adopts AI rather than hiring a fresh graduate to do marketing. Welcome to Brave. Learn from Southeast Asia's best tech leaders. Build the future, learn from our past, and stay human in between. No BS on Success. I'm Jeremy O, venture capitalist, Sierra founder, Harvard MBA, science fiction nerd, and dad of two daughters. Every week, we debate startup news, interview change makers, answer listener questions, and share personal insights.
Jeremy Au 0:57
Join our movement of over 40,000 members and get transcripts, resources, and community at www.bravesea.com. Stay well and stay brave. And so 10x is something that is part of the technology piece of why these Davids versus Goliath are always going for that 10x kill shot, right? Against Goliath. In terms of being 10x better, there's only three ways to do it: better, faster, or cheaper. A product can be better. It can be a product that does the job better than what it is. So for example, when you look at ChatGPT in America, when ChatGPT is being done, it is not a better product because in America everybody understands English and everybody's able to write English. So ChatGPT does not really generate a much better product.
Jeremy Au 1:47
The way that AI is being sold in Southeast Asia, in Vietnam, for example, is being sold as 10x better because it's able to write English much better than the average person in Vietnam. And so the AI SAS is positioning themselves to deliver better quality than the status norm. So the same product, which is AI, is being sold differently. Your product can be faster instead of waiting ten days for a marketing person to get it done. You can get it done in ten minutes using AI, right? So is it faster as a product? Speed is important, right? Or it can be cheaper. Right? The product can be exactly the same but cheaper. So imagine if somebody sold Bubble tea and normally cost ten dollars, but now you're selling this bubble tea for five dollars.
Jeremy Au 2:35
Now a lot of people will buy, even though the taste is similar, quality is about same around amount of turnaround time. For when you order, but if it's half the price. Then People will buy the cheaper bubble tea, right? So a product can either be better, faster, or cheaper. And I always tell people that When you're thinking about it, especially for startups, most products should really try to focus. Are you focusing on better quality? Are you focused on speed? Are you focused on cost? Obviously, when you are Goliaths fighting other Goliaths, then your job would be to create 10 different products. This product is slightly better as a shampoo. This product is slightly better. more convenient and faster to use is a shampoo bottle.
Jeremy Au 3:15
This product model of shampoo is slightly cheaper, right? So you create SKUs of products for all of the different types of attributes, but they're not very different from each other. When we think about startups, Most products will try to go for the kill shot. But they'll say, this is 10 times better. Is it 10 times faster? Is it 10 times cheaper? It's very important for us to think about because most startups don't have the ability to be better, faster, and cheaper, 10x on every dimension. It's difficult to do that. Okay? And so when we think about it, but of course there are exceptions to the norm. But let's just talk about it piece by piece. For example, Spotify is 10x better. How is it 10x better as quality?
Jeremy Au 3:55
Historically, when I was growing up, It was very difficult to buy music. I had to buy CD rooms for the music they had. And some of you may remember those CD rooms. If I wanted to listen to music, I would also go to Napster or Kazah or BitTorrent basically to be able to listen to the songs individually that we want.

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