How to Identify Whitespace
The double entendre is 🤌 I hope you enjoy reading this as much as I enjoyed writing it.
[Problem] You’re looking for Whitespace, TAM and Flywheels
For MBAs, “Whitespace,” “TAM,” and “Flywheels” might as well be a three-headed deity.
Land on the right whitespace, with a product that has a TAM of the whole world, follow that up with an MVP to get customer feedback, and surely the flywheel will start to spin itself, you’ll obviously disrupt an industry, get unicorn valuation, and for sure cash out in <10 years so you can retire. Right?
The father of disruptive innovation theory might tell you yes, me on the other hand, I’d say “maybe… but most likely not.”
In my career, I’ve taken three products to market, first as a product manager, next as a salesperson, and most recently, as VP of Marketing and Sales.
In my experience, this MBA-style-thinking, more often than not, delivers inferior products, uphill battles for market share, and decks that dramatically under-estimate the challenges of building the product, building the demand in the market, and getting said product into customer hands; not to mention the iteration cycles it will need to go through in order to actually deliver the intended result (which will likely have changed by the time the product has any real market traction).
Now can this style of innovation work? Yes, absolutely… There’s certainly evidence that supports this style of thinking.
But in my experience, the Facebooks of the world aren't born out of MBA-style thinking (even though they might be born on campuses that foster this type of thinking), they are born in the “but.”
While the world is all jazzed about flywheels, I think there is a much simpler solution to disruptive innovation, that is also, more fun.
[Solution] But all you really need to do is look for great buts
My hubs would tell you my nature is to overcomplicate problems. As such, I’ve tried to make a habit of standing back, and zooming out, when I find myself spiraling down into the land of over-complicating. I stop myself in my tracks and ask “What’s the dumbest, most rudimentary version of this [problem, difficult feeling, tough conversation, etc.]” and typically what this leads me to is a simple truth, and a simple solution.
I think there is something to be gleaned here for aspiring founders, stop overcomplicating stuff. Stop looking for the Whitespace, the TAM, and the flywheel. Instead, do this instead:
Look for great buts, then marry the but you can’t stop thinking about.
Stef, what?
You’ve definitely experienced this before – a new product launches, and you find out about it, and you’re like, “How did I not think of that?” so simple, yet so profound.
As an example, most recently, I had a moment like this with Graza’s Olive Oil in a squeeze tube. Olive oil in a squeeze tube. Absolutely brilliant. In retrospect, it’s actually unbelievable it took this long for someone to come up with it. How many times have you been cooking when your Olive Oil spills out of your glass bottle so quickly it nearly destroys a recipe?
I love cooking with Olive Oil, BUT I hate how it spills out too fast when I use it for my recipes.
That is a nice but. Innovation is lurking in this but.
Here’s some great buts to get your wheels turning:
Is this a rudimentary approach to innovation, yes! But that’s the point. Stop overcomplicating it. You don’t need an MBA to have a great idea. All you need is a great but.
[Summary & Next Steps] Go stare at some buts
Aspiring founder, but not quite set on the idea you want to pursue? That’s quite alright with me. Here’s ONE idea for you: This week, as you move through your usual day to day, I want you to notice when you use the word “but” in conversations with colleagues, friends, etc.
Remember: the best innovations are found in your but. (You’re welcome for that visual 👀).
