By Shivaji Dasgupta
Whether a self-propelling inspiration or a self-destruction toolkit, the jury can indeed be out on Noah Kagan’s DIY prescription. Although the intent is consistently bullish and occasionally action-provoking, the overt simplification must be viewed with suitable caution. Especially in this ‘fake it till you make it’ era of projective entrepreneurism, that has been the bane of many.
The narrative begins with a simple three-step process for business success. To find a problem that can be solved, to then craft a million dollar-plus business solution backed by market research and, finally, to spend no money to validate the prospect. Kagan speaks eloquently about the many who have benefitted from this wisdom—Michael Osborne in real estate, Jennifer Jones with cookies, Daniel Reifenberg in the tutoring business, among others. Each, especially himself, has conquered the monumental two-tier barrier of ‘Fear of Starting’ and ‘Fear of Asking’.
True to the overall oscillation between depth and triviality, the origins of some great businesses are overly simplified. Apple (two guys wanting a computer kit to carry), Facebook (a weekend project), Google (research project), and Airbnb (living rooms doubling as bedrooms). His very own AppSumo makes this venerable list, a good place to get deals on software. Throughout the narrative this pattern continues—the postponement of hard-nosed analysis for catchy colloquialism.
Rediscovering the creator’s courage is certainly a compelling starting point for Part 1 (Start It) and Kagan refers liberally to his flawed, albeit insightful, corporate journey, being fired by Mark Zuckerberg, a badge he gloatingly cherishes. A focus on ‘Now’ and not ‘How’ is a valuable input as a bias for immediacy is aptly established. Freedom Number is a delightful notion, essentially the necessary earnings for a normal life, in turn acting as a springboard for ambitious flight. As is the unlimited upside of asking, reiterating that nothing arrives unless specifically sought. Rejection goals also make good sense, with failure acting as an instigator of success.
Part 2 focuses on ‘Build It’, with two Russian Roulette-like portions—One Minute Business Model and 48 Hour Business Challenge. On finding million-dollar ideas, Kagan wisely observes the perils of building a business without accurately verifying whether there are paying customers. Customers, invariably seeking sincere solutions and not cute ideas, and when trying to build a business, you clearly need somebody to sell to, as articulated by his quest to build a ‘Groupon for Geeks’. Truthfully, the abiding focus on customer centricity overriding the manufacturer’s bias is a compelling takeout in this tech-obsessed passage of civilisation.
Being a positive problem seeker flows well from this premise, and also the good habit of solving one’s own problems. Entrepreneur Shane Heath’s experiments with masala chai in India leading to the innovative MUD/WTR, a potent brew sans the perils of coffee. Equally sensible is the advice to latch on to bestsellers, an experiential accessory to say Nike or Apple guaranteed to garner critical mass. Similarly, marketplaces become a great place to hang out as an existing momentum is more likely to brew success than untapped base camps. To get a million dollars worth of customers, one does need to find existing demand and then satisfy it.
The One Minute Business Model descends to rudimentary relationship between revenue, cost, profit and scale, with a frightening caveat that marketing costs, et al, are crucial but beyond the domain of this book’s deliberately restrictive worldview. However, the point about pivoting and evolving revenue models highlights the need for flexibility in pricing. In sum, a no-frills approach to decoding numbers, immune to the rigour of quantitative realities.
As further proof of concept, the 48 Hour Business Challenge is elucidated, the need to have three paid-up customers within this time frame as primary validation. His point about prepaid is thoughtful, to establish the ample distinction between mere interest and decisive action. Therefore, a bias for sincere preselling, ideally in a marketplace and taking full advantage of modern digital techniques.
Part 3 of the book is termed ‘Grow It’, with the romantic intent of making money while you sleep. Kagan voraciously christens social media as an agent for growth, suggesting wisely that communities are built through generosity. We need to carve our own unique angle in order to engage with an audience. Core, medium and large being the three segments of digital recipients, with depth of content in inverse proportion. Being a guide and not guru is sagely wisdom, in the quest to build scalable currency.
Subsequently, Kagan refers to email marketing as the route map to profit, and the monarch of customer communications. Necessary focus is placed on the need to solicit in a charming and engaging fashion, as demonstrated by his copywriter friend Medhora for Kernest, an app dealing in fonts. The positioning of the email list as way more powerful than YouTube followers and Instagram subscribers underscores the need for high quality meaningful relationships, reminiscent of the direct marketing versus advertising debates of the pre-digital age. In an Indian context, email may well be substituted by WhatsApp, given operating realities, but the larger point is well made about keeping the first 100 customers delighted. Delivered operationally by a growth playbook and a single hyper-focused exact goal, deeply usable props.
Towards the closing overs, Kagan talks about his spiritual reboot post a sojourn in Maharishi Mahesh Yogi’s ashram, a la The Beatles. Hallelujah being defined by the difference between doing what he thought he should be doing versus what he really wanted to do. Thus, being the entrepreneur he wished to be versus being the CEO he had to become. This led to shifts in his business model, based on the core tenets of freedom and to overcome the fears in any journey of choice.
A heady mix of entertaining spiel interspersed with doable wisdom, Million Dollar Weekend cannot be taken too seriously if it has to be taken seriously. Some thoughts are truly golden and a few ideas magically simple, often let down by the flighty anecdotal evidence. But assuredly a good weekend read, whether you make a million dollars or not.
Book details:
Million Dollar Weekend: The Surprisingly Simple Way to Launch a 7-Figure Business in 48 Hours
Noah Kagan
Penguin Random House
Pp 240, Rs 899
The author is an autonomous brand consultant and writer