There is a fear that has no name. But most startup founders experience it.
Perhaps, it is the fear that kills most startups. And no, it is not the fear of failure. It is a fear much more visceral. I call it Beachhead Phobia.
In our acceleration program, we teach all founders the concept of the Beachhead. It is the most important tool for finding product-market fit.
We teach our startups to focus all their resources on a single homogeneous segment that has a desperate need for their product. The desperation usually arises from the fact the segment is new and fast-growing. Consequently, the Beachhead has not yet found a solution that adequately solves their problem. This makes the Beachhead willing to test an early product from an unknown startup.
The beachhead is borrowed from military strategy. Here, invading forces must focus all their resources on a single spot on the beach to conquer enemy territory.
All successful startups find a Beachhead. But before they do, startups typically begin with a very broad customer definition. Then they learn that customers are different and want different things. This eventually leads startups to focus on a Beachhead. Once, startups dominate the Beachhead, they slowly broaden their focus again.
The puzzling thing is that even though all successful startups go through this process, all founders fight it. And after having accelerated startups for a decade, I see what is going on.
The fog of startup
When launching a startup, founders feel the intoxicating promise of infinite opportunity. The sense arises from the “fog-of-startup”. We want to be the next big startup success. But we are not completely sure how to get there. The space between the current situation and the future aspiration is the fog-of-startup.
In the fog-of-startup, we expect advantageous things will happen. Perhaps, a famous VC will flood us with cash. Or a big company will start distributing our product. Or a celebrity will endorse us. But our biggest hope is that we will immediately get flooded by customers from around the globe.
To keep this dream alive, we communicate in the biggest and broadest terms possible. We call our product the one-stop shop. Or the platform. Or the go-to software. We claim to be born global and be blitz scaling.
Accordingly, we launch and prepare champagne bottles. But instead of servers crashing due to insane customer demand. Things get murky. Some people sign up. But not nearly the numbers we hoped. The “fog of startup” has been lifted and it hid no miracles.
At this point, many founders make a fatal mistake. We surmise that we did not communicate to enough people. Not enough people understood the brilliance of our product. So, we respond by painting an even broader picture. We might state that our product is relevant for all industries or all consumers. Surely, this will make us seem bigger and relevant to more people.
But it does not have the intended effect. The response turns even murkier.
At this point, we get worried. Maybe we did something wrong. So, we seek advice (and funding). At some point, we encounter people who know about startups. That could be investors, other founders, and advisors. These people will tell us to “focus”. But at first, this advice seems strange.
Because we already focus all of our time on our startup. So, the advice seems patronizing and unnecessary. Sometimes, those providing the advice manage to convey that the focus is related to customers. But since launch, we have done little else than answering requests for features and bug reports from customers.
At some point, lucky founders encounter the concept of the Beachhead. The logic is clear. We must focus on a single homogenous segment to whom we can offer a perfect product. Once, we have conquered this Beachhead, we can focus on the next adjacent segment.
In other words, we must abandon the one-stop shop for all companies. Instead, we must offer a unique product for a specific person, in a specific type of company, with a specific problem, to be used in a specific use case.
We get it. But then we feel it. The fear that has no name. So, I dubbed it Beachhead Phobia .
Successful founders realize they must focus on a Beachhead. Still, most founders hesitate. The reason is the unpleasant sensation when contemplating the change. That sensation is Beachhead Phobia.
The sensation stems from the fact that the advice seemingly conflicts with several common beliefs.
The first belief is that VCs only invest in billion-dollar markets. Consequently, many founders articulate their market in the widest possible terms. Unfortunately, these founders confuse different time perspectives. When VCs talk about billion-dollar markets, they mean markets 10 years from now. But when we advise founders to focus on a Beachhead, we mean for the next six months.
The second belief is that “thinking small” means lowering our ambition and impact. Many founders are avid readers of books with titles like: The magic of thinking big. In addition, our personalities compel us to make a “dent in the universe”.
Going from declaring that you serve all companies everywhere! to serving a small group of specific people in specific companies, simply feels unambitious. But again, we confuse time perspectives. Anyone who succeeds in anything big, first succeeds in something small. The Beachhead is just the first step.
The third belief is not a belief. It is a feeling. And for this reason, it is the strongest cause for Beachhead Phobia. It is the psychological truth that it feels much worse to be rejected by someone specific than to be ignored by a crowd.
During our program, we ask founders to name and list the Beachhead. If a startup claims their Beachhead is HR managers in SMEs. Then we ask the founders to make a list with names of the exact HR managers they plan to sell to. And then create a “perfect” value proposition for these people.
Creating a specific value proposition to a specific person infinitely increases the chance of a positive response. Any woman using dating apps can attest to this. And so can you (even if you are not a women using dating apps).
The problem is that contacting a specific person with a tailored message feels wildly uncomfortable. Why? Because suddenly our actions are measurable, and rejection becomes impossible to ignore.
In a nightclub, it feels much worse to approach a specific person and be rejected, than to be ignored on the dancefloor.
On the dancefloor, we can convince ourselves that someone attractive will soon appear. But approaching a specific person with a personalized compliment and be rejected, ruins the night.
But the best founders overcome Beachhead Phobia. They target the Beachhead, get rejected, learn from it, adjust their value proposition, and do it again. They feel visceral pain with every invalidation of their assumptions, but they never succumb to the fear. And neither will you.
You want to learn more about Beachhead, visit Accelerace and Overkill Ventures. We accelerate and invest in startups.