Piecing it together
The inevitable 2x2: Supply x Demand, From Here x To There
Hi all —
Last week I introduced the framing of “from here” vs. “to there”. It seems to fit well with the Supply vs Demand framing I wrote about last year.
If you haven’t been a reader since then, quick recap:
Demand vs. Supply (longer post here):
Demand is what’s actually happening OUT THERE in your customers’ worlds that creates the conditions for them to need to change
Supply is what you build - your product, your marketing, your business
From Here vs. To There (longer post here):
“To there” asks how do we get to a certain end-state. Here’s where we envision ourselves in 5 years, how do we get there?
“From here” asks how do we get from the current state. Here’s what’s real and possible today, what’s the next interesting move?
Thinking about both of these concepts, the consultant in me awakened from a deep, deep slumber. (Which surprised me, because I thought he was dead just like the Old Taylor Swift.)1
Consultant Rob said: “Hey, here are two unrelated concepts, why not put them on a 2x2 matrix and sell it for a million dollars?”
Startup Rob replied: “I don’t know about this, but then again, consultants do seem to SOUND right without needing to BE correct…”
And so I give to you a 2x2 matrix that may or may not make sense:
From Here x Demand: Figure it out
This is where businesses get built. At the intersection of “what’s causing customers to change” and “what’s the near-term market opportunity”. As a founder finding product-market fit, you want to focus here until you’ve got the clarity that you know where and how to compete.
To There x Demand: Sell it
This is where your Go-to-Market lives. It thrives in the context of what customers need and focuses on where they will go with your software. This deeply resonates with customers because it speaks to where they are and where they want to be, without talking a bunch about your product.
From Here x Supply: Build it
Product and engineering in the early stage need to focus on shipping the simplest possible valuable version of your product. “From here” helps them see exactly what is needed in the near term, and focusing directly on that helps them ship the right thing, fast, with space to learn and for the next valuable version to emerge.
To There x Supply: Raise money (& hire)
What could this become? Telling a compelling story here is the path to raising lots of money. Just don’t let this big story distract you, because it will confuse customers, bastardize a sensible product roadmap, and blind your understanding of market needs.
Appendix: A couple of interesting corollaries:
Most startup advice focuses on “to there x supply” which is why it’s all useless and makes me angry.
If you can nail “from here x demand” every other category gets easier; this isn’t true if you start from any other category.
Coherence across these 4 categories is a founder’s superpower.
I was really proud of this hip and timely joke. Then realized this song came out 5 years ago. God help me.