Startups Tuesday Operational Roundtable - A Forum to Ask About Legal, Accounting, Project Management, or How to Get Started |
- Tuesday Operational Roundtable - A Forum to Ask About Legal, Accounting, Project Management, or How to Get Started
- Why I Hate NPS With a Passion
- How transparent should a startup CEO be with their staff?
- No sales, looking for guidance.
- BlackBeast Pro eGPU update
- Is San Francisco all that great?
- What are things you need to sacrifice to build a multi million dollar company?
- Product just keeps getting delayed. Issues with in-house developers. Everything is a mess right now. Advice/Insight needed
- Is a whitepaper still used by startups to convey its roadmap and features?
- What is the best way to create an app (digital agency, independants, employees...)
- Tech stack for on-demand service
| Posted: 26 Nov 2019 05:05 AM PST Welcome to this week's Operational Roundtable Thread. Ask about anything related to legal, accounting, project management, or how to get started. Don't be shy. The purpose of this is to learn and share ideas and methodologies with one another. Any question is a good question! If you are answering questions, remember to be kind and supportive. Many are just starting out and have no idea what they are doing. That's okay! We all knew nothing before we knew something. You can also find more support using instant chat on the /r/startups discord. [link] [comments]  |
| Posted: 26 Nov 2019 06:52 PM PST See full post with images: https://loopinput.com/why-i-hate-nps-with-a-passion/The Tale of Two ProductsAfter purchasing a product on an online e-commerce store, customers are asked the typical NPS survey question "On a scale of 0-10, how likely is it that you would recommend [product name] to your friends, family or business associates?" for two different products. Product A Customer Ratings: [6,6,6,6,6,6,6,6,10,10] (Average Customer Rating 6.8) Product B Customer Ratings: [0,0,0,0,9] (Average Customer Rating 1.8) Their ratings are listed above. Look at the two data sets. Consider carefully. Which product do you think has a higher NPS (Net Promoter Score). The answer is their NPS is exactly the same. Wait that's unbelievable… the first product has an average customer rating of 6.8/10 while the second has an average customer rating of 1.8/10. How is that possible? What is NPS?Welcome to the wonderful world of NPS, one of the most misguided scoring calculations ever invented. Before we start, what is NPS (Net Promoter Score) and how is it calculated? Take your data set of ratings between 0-10. Divide these ratings into three groups. Anyone with a rating of 7 or 8 is a "Passive." Throw these scores out. Anyone with a score of 9 or 10 is a "promoter" and anyone with a score of 0-6 is a "detractor." Take your % of detractors out of the total ratings and subtract it from your % of promoters out of the total ratings. Whatever % comes out of that, negative or positive, turns into your NPS score. That's it, you're done. So, if 50% of respondents were promoters and 10% were detractors, your NPS is 40. Well sounds straightforward enough… what's wrong with that? NPS ExampleIn the above example, product A has two 10s (promoters) and eight 6s (detractors). So you subtract the % of detractors (80%) from the % of promoters (20%) to get -60% as a total which turns into an NPS of -60. Product B has one 9 (promoter) and four 0s (detractors). So you subtract the % of detractors (80%) from the % of promoters (20%) to get -60.0% as a total which turns into an NPS of -60. So product A has a final NPS of -60 and product B has a final NPS of -60. The products have the exact same NPS. Why NPS SucksArbitrary First-In Data GroupingWhen working with ratings you will almost always have to lose some accuracy to achieve an average "rating." Often this involves rounding a final number. Rounding is a form of data grouping. When you are saying 49.469 will be rounded to 49.47 you are grouping data based on a set of parameters or rules. Usually this is done at the very last possible stage to avoid, as much as possible, abstracting out the detail in data too early to prevent inaccuracies. The sooner in the process you group the data, the more divergent comparable data sets will become in the final calculation because you stack small inconsistencies into bigger and bigger ones, creating a cascading chain of building inaccuracies. That is why most scoring systems round at the last possible step before producing a score. Additionally, the wider the range of this "grouping" the more inaccurate, and less reflective of the original data set, your final rating becomes. NPS has one of the widest groupings imaginable. Every rating between 0-6 is considered exactly the same. That's right, 60% of all possible ratings are grouped and considered "equivalent." A further, less egregious, grouping happens when 7 is considered equivalent to 8 and 9 is considered equivalent to 10. No Consideration for Predictive Accuracy or Volume of Data SetNPS does not employ any mechanism of considering the volume or number of data points when creating a calculation. So a data set with one 0 and one 10 is considered exactly equivalent to a data set with one million 0's and one million 10's. This is also a weakness shared with traditional averaging. The average of the above two data sets (one with two data points and the other with two million data points) will also come out to be exactly the same. What is the solution to this? The solution is to produce two scores, one an average that does not take into consideration the number of data points and the other a Wilson score which does weight the number of data points. If you want a more thorough explanation of Wilson scores here is a great blog on the topic: http://www.evanmiller.org/how-not-to-sort-by-average-rating.html but the jist of it is that a Wilson score takes into consideration the number of data points and predictive accuracy into consideration. But if using Wilson scores is too complicated for you, the solution is to just use averages. In Defense of NPSNPS is about net detractors and net promoters! It's about the intangibles!Argument: The entire point of NPS is that it is about net promoters and net detractors. Net promoters will spread the good word about your product and net detractors will spread the bad word about your product. The net neutrals will say nothing so they have no influence! Response: This is predicated on the assumption that someone that rates your business or product a 6 will be just as much of a vocal detractor as someone that rates your business or product a 0. So instead of assuming that the amount that someone promotes or detracts your business is correlated linearly with their rating, you are putting people into an arbitrary bracket and assuming that those brackets map to peoples' behavior non-linearly with no evidence to back that fact. NPS is easyArgument: Everyone uses NPS because it is easy to calculate! None of this complicated Wilson score mumbo jumbo! Response: So is an average rating. When in doubt go with an average rating. NPS provides a poor return on complexity by both simultaneously adding complexity and butchering data sets. Calculating an average is both easier than NPS (you just add every rating together and divide by the number of ratings) and does not butcher the data set. NPS is powerful because of the survey question. "On a scale of 0-10, how likely is it that you would recommend [product name] to your friends, family or business associates?"Argument: the true power of NPS is that you are calculating your viral coefficient! The survey question is the critical piece! Response: There is no reason that you can't ask this question and calculate your scores from the results in a different way. Just because you ask this specific survey question, you do not have to use NPS to calculate the results. Additionally, NPS survey question does not add anything that other loyalty-related questions cannot provide. According to a study by Hayes (https://businessoverbroadway.com/wp-content/uploads/2011/01/QP_June_2008_True_Test_Of_Loyalty.pdf), there is no evidence that the "likelihood to recommend" question is a better predictor of business growth than other customer-loyalty questions (e.g., overall satisfaction, likelihood to purchase again) and the "likelihood to recommend" question does not measure anything different from other conventional loyalty-related questions. [link] [comments]  |
| How transparent should a startup CEO be with their staff? Posted: 26 Nov 2019 07:44 PM PST I've been at a startup for 2 years and am finding it odd that the CEO refuses to tell us how much funding the company has (when asked). He says the company has "a whole lot of money to play with" but will not give specifics even though we, the staff, are all investors in the company. Also says any funding that we read about online will not be accurate. Is this normal startup behavior? [link] [comments]  |
| No sales, looking for guidance. Posted: 26 Nov 2019 07:33 AM PST Hey all, first time poster, active lurker. I recently started with a startup company - I am the only sales person. Since I started on the first of the month, I've made 1 sale. I've gotten 4 or 5 others on our trials, and that's it. Currently there is no marketing being done, I work from home and cold call. My calls range from 55-85 calls per day. Not really gaining any traction. The CEO and I speak randomly, I've been paid once, this week I'll be paid again. Feeling kind of wasteful and not really knowing what to do. He's busy most of the time with family and back end stuff. I know how to cold call, convert to appointments and sell a product. This is a brand new industry to me, so I'm learning from YouTube, reading and the owner and his wife. My question is-do I just keep trucking? Do I reach out and ask him for guidance? Look for new opportunity? I'm no perfect sales person-but I have sold for 5+ years, obviously can improve on a lot. Please share recommendations. Also, I cold call, set appointments, demo then walk them through the purchase. Not sure it matters or not. Looking forward to advice and recommendations, thanks all. Edit:added more detail [link] [comments]  |
| Posted: 27 Nov 2019 12:25 AM PST Hi everyone. I am Tobias Lagarhus of the Norwegian company Lagarhus Products. Today we have reached big milestones of our upcoming all-in-one docking station "BlackBeast Pro" and can't wait to share it with you! For people who are not familiar with our product there will be a short summary at the end of this post. Our docking station, BlackBeast Pro, will launch at Kickstarter January 7, 2020 at 08:00 PT (Pacific Time)! Everyone who signs up early will receive great perks when the campaign starts. Referring your friends to sign up will give you the chance to win a BlackBeast Pro. Winners will be announced after the campaign. We have redesigned the entire website with technical specifications, new images and better information. Further on we will release real videos from benchmarks and reviews ahead of Kickstarter. We are also opening an affiliate program for people who want to earn a commission based on converted followers. Please see http://blackbeastpro.com/affiliate for more information. BlackBeast Pro is a docking station which delivers desktop class performance on your laptop with no compromises. Unlimited customization possibilities let you install your favorite graphic card and hard drive while having all the ports you need to implement your desired workflow and charging your laptop simultaneously. Please see https://www.blackbeastpro.com/ for more information and signup. Best regards Tobias Lagarhus [link] [comments]  |
| Is San Francisco all that great? Posted: 26 Nov 2019 06:45 AM PST Hi everyone, I've been working on a startup full-time since January 2018 with my brother-in-law. We are based out of Puerto Rico and have had a tough time with our startup (we live in the country and have to travel 3 hours to our customers every 3-4 days), have been living off of credit cards and $750 a month, but we love what we do. We know someone from SF who is down to let us stake out in their garage, and we are considering the move. Question is, in your experience, is SF worth it? [link] [comments]  |
| What are things you need to sacrifice to build a multi million dollar company? Posted: 26 Nov 2019 02:36 AM PST Does one have to give up traveling to build a multi million dollar company? Can I start my start up while traveling? Or do I have to give up that up in order to build a multi million dollar? I know it's not easy but just wondering if that's possible because I've given up everything else such as social life, shopping and more? Are there other things one needs to give up to achieve this goal? [link] [comments]  |
| Posted: 26 Nov 2019 05:29 AM PST Good ol entrepreneurship! We have mobile app launching early 2020 but we had one small beta test that's it. There's a lot to reiterate on the app but there have been issues with the developers. We outsourced one to build our MVP and the app didn't even work as it was supposed to. Bummer. So i went to hire another one and this developer didn't work out either. I'm now finding myself pushing back the app launch date because the damn thing doesn't even work. As much as i want to be on the launch timeline prepared, I'm ready to just hold everything back, learn development myself. This shit is getting out of hand and I'm ready to just take matter into my own hands. If it's anyone who wants the product imagined, it's gotta be me right. So my question is, should i just hold off launch for maybe a year or X months and learn to code myself or go through another hiring process for a developer. Appreciate it reddit thanks! [link] [comments]  |
| Is a whitepaper still used by startups to convey its roadmap and features? Posted: 26 Nov 2019 08:50 AM PST I'm about to launch a new website for my start up to raise a seed round in early 2020. I have an MVP/Demo available to play around with on the site but it just shows what I was able to do, rather then what has been wiremapped and thought through. I'd like to use a whitepaper to show what could be done with an investment which would give us the ability to hire programmers to help me create the alpha. Is a whitepaper the best way to do it? [link] [comments]  |
| What is the best way to create an app (digital agency, independants, employees...) Posted: 26 Nov 2019 07:03 AM PST Hello everyone !I want to build an app for my business, quite complex, like Meetup.com. For what I've seen, it could cost 70 000€ in a digital agency. I wanted to ask you guys what is the cheapest and best way to make an app on Android, my business is all about this app. Just to know, that the goal is to make it available on a website and Iphone in the future. I've seen on Fiverr developers do this, but I'm not sure about the quality and the delay, since it's quite a huge amount of work for one man. Or should I recruit a team from the beginning ? I don't want to find a co-founder, because it would be a stressful process, could lead to conflict, super risky and I find it unnecessary since I can easily deleguate the dev work to an employee. My idea was to start with a digital agency and then build up a team to maintain it, what do you think ? [link] [comments]  |
| Tech stack for on-demand service Posted: 26 Nov 2019 02:24 AM PST Has anyone used a white label solution for on-demand service to share their experiences. I have been checking for the best ways for a non-tech person to start working on such an app. Can any devs/IT guys here also suggest tech stack needed for an on-demand service or point towards websites where such advise is available. Thanks [link] [comments]  |
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