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wrdeer says...

I don't subscribe to everything  Jason Fried says  over at 37signals, I do however  use bascamp from time to time and  I do think his blog is worth checking out  http://37signals.com/svn

I liked his short summary of the less is more philosophy with respect to competitive advantage so I'm posting it here.

I will do a more detailed analysis of the arguments over on the Urban Ascetic blog when I get the chance.

Less

I want to talk about the concept of less. And more specifically the idea of using less as a competitive advantage.

Conventional wisdom says to beat your competitors you need to one-up them. If they have 4 features, you need 5. Or 15. Or 25. If they’re spending X, you need to spend XX. If they have 20, you need 30.

While this strategy may still work for some, it’s expensive, resource intensive, difficult, defensive, and not very satisfying. And I don’t think it’s good for customers either. It’s a very Cold War mentality — always trying to one-up. When everyone tries to one-up, we all end up with too much. There’s already too much “more” — what we need are simple solutions to simple, common problems, not huger solutions to huger problems.

What I’d like to suggest is a different approach. Instead of one-upping, try one-downing. Instead of outdoing, try underdoing. Do less than your competitors to beat them.

I want to discuss five things you need less of that you’re likely to think you need more of.

1. Less Money Times have changed. All other people’s money gets you these days is into debt. And that’s not a great place to start anything from. You don’t need money for hardware — hardware is cheap. You don’t need money for software — software is free. You don’t need money for marketing — there are a variety of ways get your message out online to a huge audience for next to free. Money doesn’t buy you time and money doesn’t buy you passion (and passion is something you need a boatload of). All money buys you are salaries. And salaries buy you people.

2. Less People For companies trying to build new web-based businesses and web-apps, all you need to start is three people. Three people to launch a product. A programmer, a designer, and a “sweeper” — someone who can move between the worlds and also gets common sense business and marketing. Don’t scale up your headcount to match your proposed feature set and vision, instead scale down your feature set and initial vision to match your headcount. The less people you have the less time you have.

3. Less Time Your competitors have 10 people at 40 hours a week (400 hours). You have 3 people at 40 hours a week (120 hours). Sounds like a disadvantage, right? Nope. It’s a huge advantage. The majority of time you spend working is wasted time. Too many meetings, too much planning, too much thinking, too much writing official documents. The more time you have the more time you have to waste — and it’s likely you’ll waste more than you use. When you have less time, you’ll spend it more wisely. Think about time as money: If you only have $500 in the bank, you’re not going to spend $400 on a TV. You’re going to be careful about spending your money. If you have 40 hours instead of 400, you’re going to spend that time more wisely. More value per hour for your less time.

Further, people are often wishing there were more hours in the day, more days in the week, and more weeks in the month. You don’t need more time, you need less time. In fact, instead of working 40, 50, or 60 hours a week, consider capping your time on your core development to 20 or 30 hours a week. You’ll likely get more real work done.

4. Less Abstractions The best way to deal with less time is to do less paper work, less busy work, less abstracted work. This means do less stuff that isn’t real. Less boxes and arrows. Less charts. Less documentation. Less stuff that is abstracted from the real thing — the real product your actual customers will see.

And the #1 abstraction to do away with is the functional spec. I won’t repeat myself — just read Getting Real: No functional spec.

5. Less Software All this less stuff leads to one key point: Less Software. When you have less money, less people, less time, and less abstractions, you’re going to be forced into developing Less Software. And that’s a great thing. Less Software allows you to distribute your time and energy across less features. More attention to less stuff will make that less stuff better. 100% of your time across 20 things via 100% of your time across 10 things will result in a very strong 10 things. And that’s the kind of software that is satisfying to build, and satisfying to use: simple, focused, useful software that’s really polished. And that’s how you win these days.

6. More Constraints I said I’d discuss five things you need less of, but there is one thing you need more of: Constraints. All this less is really about more constraints. That’s where you’re forced to be creative. That’s where you’re squeezed to make better use of your money, your people, your time. And out of this squeeze will come better software, more satisfying software, and simpler solutions. The truth is this: There are a million simple problems that need to be solved before you should even consider trying to solve the complex ones. Less software solves simpler problems. Let your competitors kill themselves trying to solve the big complex problems. Solving those problems are really hard, really expensive, and riddled with bad odds. Stay simple, build simple, and solve simple.

Filed under: Less

JPM says...

Setting up a virtual business is no easy task. The cost of doing so may be little, but there is a lot of effort to it. This is exactly how I plan to operate AVCION Capital - as a virtual business. And for that, all the information, files, documents - soft IP will have to be protected. If I were a consultant - this is of more importance than anything, as that is my leverage tool. Here are a few things I've learnt along the way, and I thought I'd share them with you...

Keep ALL files in one single location & backup regularly - If you work on two different computers, you will most likely have two copies of a document. Avoid this, either by syncing or using only one computer - and backing up to the cloud, or some secure location (frequently). By using only one computer, you only have to worry about backing up. By using two or more, you need to worry about syncing all files. My solution to this is DropBox (they have apps to install on Windows/Mac as well as a web-based interface, in case you cant install - use the DropBox Portable).

Keep Your Business & Personal Files Separate - If you're running a virtual operation, you need to keep your files in separate folders. You dont want to accidentally provide access to your business files only to share the wrong personal diary! It's healthy.

Email - I could write a entire book on Gmail and the use of email. It serves as a record, database, knowledge, blogging platform, chat, collaboration. No other software has such great features (yet). Add to this the integration with Google Calendar, Google Docs, Google Tasks and Google Chat - and you have a killer communication platform. Go for Google Apps for Domains - this way, you can user your own domain / website to manage your entire virtual enterprise.

Use Tag/Label, Filter, Shortcuts in Gmail - a big time saver for organizing your emails, enabling them to be searched faster, tracking conversations threads.

Blog - I've learnt one important thing from blogging and that is expression of thought. Depending on the field of your specialization, I can only suggest having a blog. I use Posterous for lifestreaming (faster blogging). I use WordPress to create a private membership site - that publishes everything regarding my operations, track record, newsletter, updates, alerts etc to my members/clients/partners. You can have a mix of both.

Aggregate - I gather information, bookmark and research stuff using Google Reader (by subscribing to an interesting site's rss - you create a database aka archive that can be searched later on). I use a private site on Posterous to gather information using their bookmarklet. I also use Gmail+toread.cc again to keep a copy of any full webpage that I want to visit or read about later (this again, is being replace by Posterous). In the past I used to send copies of pdf,zips,docs, etc to Gmail - using it as a backup option, now DropBox takes this care of this - I just wish DropBox had an email to feature (like Drop.io)

Share - I distribute information/links on Twitter now. If I see something interesting, a bookmarklet - allows me to share the site as a shortened URL with a short comment. The short message gets distributed to those who follow me (targetted broadcasting i.e. narrowcasting), whilst also appearing on a public domain (twitter site) - means if anyone is searching for something - they can also see what i've shared. 

Bookmarks - I no longer use delicious, instead, bookmarks I like to revisit are stored locally, and synced using xmarks.com (addon for mac & pc). But since sites can go down in the future, I like to keep a copy of the text with me. Gmail+toread.cc / Posterous serves the purpose.

Network - with all the social media hype going on - I only found LinkedIn useful. I found it useful, because I know that people who at least update their profile - are serious about some kind of professional relationship. You can meet an interesting set of people. I just wish LinkedIn had a built in CRM feature (with Gmail Integration). Read Never Eat Alone. Dump Facebook.

Measure - Always measure whatever you do. There's a saying by famous Management Guru Peter Drucker - if you can't measure it, you can't manage it.

Accounting - which is based on the above point. Gotta keep those books uptodate - use Xero.com - a New Zealand based group, offering web-based accounting. Good enough for now. (I needn't say this, but get a good accountant! Luckily, I work with some great guys in my bank - who are willing to help me keep the books!)

This is just the "start"... let me know what you'd like me to cover.

Filed under: less

Jerry says...

One more thing that’s cool about underdoing the competition: You get to streamline your documentation.

For example, this Sony Handycam manual (PDF) has 40 pages. Compare that to the quickstart guide that comes with a Flip camera:

Wow, an instruction manual that actually gets read. Impressive. In fact, it’s almost like the instruction manual is an ad for the product. “It’s so simple this is all we have to say about it.” And I bet there’s a lot less support documentation needed too.

Related: The Flip takes 13% of the camcorder market by doing less [SvN]

True, that!

Filed under: less