The core business logic
Or, the antidote to a lot of business nonsense
Hi all -
I see too many successful companies talking about flashy stuff like branding, storytelling, PR, mission/vision/values, the hot new productivity practice, power posing, etc. And too many people instructing founders to focus on this kind of stuff from Day 1.
We forget that at our stage, successful companies mercilessly focused on figuring out their core business logic. They then became successful, which allowed them to do the flashy stuff and tell everyone a nicer version of history.
So what is the Core Business Logic, and how do you find yours?
It’s really simple. It’s a paragraph that says what your business does, why it does it, and why that makes sense. Why your business is different, why you win.
You could write a draft of yours in 5 minutes.
I think of the core business logic as having four interconnected parts, naturally starting from the demand side:
What’s going on in the world that’s causing people to need to change.
The specific people who need to change, and what options they’re considering.
How your business fits into the options these people have, and why you’re different & better.
Therefore, what you are focusing on & building.
Your core business logic emerges in phases. You learn as you interact with customers, as you observe user behaviors, as you question what you thought you knew. You can test your business logic in sales conversations, customer conversations, partner interactions. As your business logic makes sense, people won’t just nod - they’ll act. Prospects will buy, customers will expand and refer others, partnerships will solidify.
As you figure out your core business logic, everything else becomes easier. You get conviction where your business needs to go. You emerge from the haze of infinite, impossible-to-prioritize options with clarity and direction.
Until you figure out your core business logic, you are wasting time by focusing on much else. Fortunately, the best part of being a startup founder is figuring out your core business logic. Because it’s the realest thing there is in business, and it’s yours to uncover.
And, yes, as your core logic starts clicking, you earn the right to spend time on the flashier stuff like branding, storytelling, visioning, PR, etc.
Do you know your core business logic?