# Best of longform.asmartbear.com on Kiwi News Page: https://news.kiwistand.com/source/longform.asmartbear.com 19 stories from longform.asmartbear.com have been shared on Kiwi News since 3 May 2023, with 45 upvotes and 6 comments in total. The latest was shared on 2 February 2025. They are listed below, most upvoted first. Summaries are AI summaries of the linked article. ## 1. Profitable on day one! - Kiwi News: https://news.kiwistand.com/stories/Profitable-on-day-one?index=0x66d062a74e19fc70af939605b3d74855b0d26fa78a2fc9732c4764401e265febefd607ac - Source: https://longform.asmartbear.com/ramen-profitable - Shared 29 August 2024, 8 upvotes, 2 comments Jason Cohen argues that a business is not profitable just because its revenue covers its direct costs, and that founders who call a company "profitable from day one" are misusing the word. He proposes a stronger test: a company is profitable when it would still be profitable if a high-quality operator sold it and hired people at market rates to do the work. He says a founder earning less than the job they left, or paying themselves nothing, does not meet that test. He adds that most new businesses take a long time to become profitable, citing his own company WP Engine, which took nine months to start and then two years of chaos, and Smart Bear, which took 2.5 years before hiring its first employee. ## 2. It's a torturous chaos until it isn't - Kiwi News: https://news.kiwistand.com/stories/Its-a-torturous-chaos-until-it-isnt?index=0x6626687ec53075311b4047ed1a62f47341c7bad6db1dfbddbf4997ee8c96b76c5eb747f6 - Source: https://longform.asmartbear.com/chaos-at-start - Shared 22 April 2024, 5 upvotes, 2 comments The essay argues that the early years of startups, and of other long-odds ventures, are chaotic and painful whether or not they eventually succeed, so the hardship alone cannot tell a successful path from a failing one. It cites HubSpot, which ended 2006 with 3 customers and 2007 with 48, and co-founder Dharmesh Shah's chart showing slow linear growth for three years before fast growth for five. It also points to rejection histories, such as Robert Pirsig's book being turned down by 121 publishers before its 1974 publication, and to J.K. Rowling being rejected 12 times. ## 3. Tech Support is sales - Kiwi News: https://news.kiwistand.com/stories/Tech-Support-is-sales?index=0x6720049ada27f768db35942fb29916f7693b731bbf60663d04d2d278e0a3e0e2f816868e - Source: https://longform.asmartbear.com/tech-support-is-sales?__readwiseLocation= - Shared 28 October 2024, 5 upvotes, 0 comments Tech support should be treated as a sales and product development channel, not a cost center, according to an article that draws on the author's experience at Smart Bear. The author says the company made millions of dollars in individual and enterprise sales without a traditional sales function, because its tech support helped customers succeed with their jobs. The article also argues that support conversations reveal product insights, such as the questions that led Smart Bear to focus on peer code review rather than "version control data mining." ## 4. Avoid blundering: 80% of a winning strategy - Kiwi News: https://news.kiwistand.com/stories/Avoid-blundering-80percent-of-a-winning-strategy?index=0x660d689663c10822c97563672f0ad545a411ec6d5a3e5b09a0b2a36eeb75c4047cf2daeb - Source: https://longform.asmartbear.com/avoid-blundering - Shared 3 April 2024, 4 upvotes, 0 comments The article argues that most startup failures, like most amateur chess and tennis losses, come from avoidable blunders rather than from the absence of a good strategy. The author tested this in about twenty chess games with similarly rated opponents, where the player who made more blunders lost 86% of the time, rising to 81% of decisive predictions when mistakes were added to a weighted error score. It then applies the idea to startups, separating proximate causes such as running out of cash from underlying self-inflicted errors such as not talking to customers or not selecting a target audience. ## 5. Reputation isn’t as powerful as you imagine - Kiwi News: https://news.kiwistand.com/stories/Reputation-isnt-as-powerful-as-you-imagine?index=0x6559cb06b71c0e5056254856f594a0cf7eeef76a24bff2a3a9d5f4aaaec4d89265b8f4ea - Source: https://longform.asmartbear.com/reputation - Shared 19 November 2023, 4 upvotes, 0 comments Jason Cohen argues that his blog's reputation was a real but limited advantage when launching WPEngine, a WordPress hosting company. His announcement drew only two signups despite about 18,000 subscribers and traffic from Twitter and HackerNews, and the company had 50 paying customers before the post went live. The blog did help him recruit Aaron Brazell, a WordPress core contributor, who joined because the blog revealed Cohen's attitude, perspective and credentials. ## 6. Why Startups Don’t Grow Exponentially (Not Even Facebook And Slack) - Kiwi News: https://news.kiwistand.com/stories/Why-Startups-Dont-Grow-Exponentially-Not-Even-Facebook-And-Slack?index=0x6452758101e2c1881afc6ef624fe282b0637b83d969fe951788b39ba4f55e4c49205a5d0 - Source: https://longform.asmartbear.com/exponential-growth - Shared 3 May 2023, 3 upvotes, 0 comments Growth at fast-growing startups is better described as quadratic than exponential, according to the article, which argues that high-growth companies add roughly linear increments over time. It cites Facebook, where monthly active users were essentially linear for nearly twenty years, and Dropbox, which reached 100 million registered users five years after its 2007 founding with growth of nearly exactly 100 million per year. For HubSpot, the article notes that annual revenue gains rose from $17M to $23M, $28M and $34M, a pattern it describes as quadratic rather than the 41% CAGR the company's slide implied. ## 7. On the (un?)importance of design - Kiwi News: https://news.kiwistand.com/stories/On-the-unimportance-of-design?index=0x6795fd52c6155b03a1e994677eafe653457f42e4bf4aa08095f247a177d1b899939a9161 - Source: https://longform.asmartbear.com/design - Shared 26 January 2025, 2 upvotes, 2 comments Jason Cohen argues that design matters only when it is central to a startup's strategy, and that companies must decide where they stand and act consistently on it. He reports that WP Engine's 2011 website redesign produced no change in bounce rate, time-on-site, or sales conversion rate, though customers and staff said they preferred the new site. Cohen contrasts Hipmunk, where design was its only competitive advantage, with ITWatchDogs, whose ugly website grew steadily while its message stayed clear. He also cites Smart Bear, which doubled revenue and profit yearly for about five years despite a poor design. ## 8. Pricing determines your business model - Kiwi News: https://news.kiwistand.com/stories/Pricing-determines-your-business-model?index=0x655a38e3b2e193ecd490d68a304b81b59f496185913e897aca24d3bcbbdf593a0eb38f74 - Source: https://longform.asmartbear.com/pricing-determines-your-business-model - Shared 19 November 2023, 2 upvotes, 0 comments The article argues that pricing cannot be deferred because it shapes the product and business model from the start, so price should be discussed in customer development interviews. It contends that price affects product/market fit as much as any feature. Each price tier implies different constraints: at $0/mo, growth is prioritized over revenue and ventures often need funding, with WhatsApp (sold for $19B with 55 employees) cited as an example. At $100/mo, the article calls the zone attractive for bootstrapped companies, since 200-300 customers can yield solid profit. ## 9. Product-Market Fit: Experience & Data - Kiwi News: https://news.kiwistand.com/stories/Product-Market-Fit-Experience-and-Data?index=0x6550cc19411895b255215716c9616253d1748a86f7dd4e59d2235c7242aa096014580001 - Source: https://longform.asmartbear.com/product-market-fit - Shared 12 November 2023, 2 upvotes, 0 comments The article defines Product/Market Fit as a shift from struggling to win each customer to being overwhelmed by demand, and it argues that this shift shows up as a linear growth curve with a sudden change in slope rather than exponential growth. The author, who says he built several companies and angel-invested in dozens more, sets the threshold at cancellation under 3% per month for B2B or 5% per month for B2C, and at least $20,000 per month in revenue or at least 200 new weekly active users added per month. Examples cited include ConvertKit, Pallyy, HubSpot, Slack, Facebook and Airbnb, with the article arguing that high cancellation caps growth, as shown by Buffer's leveling off in 2020. ## 10. The Startup Drake Equation - Kiwi News: https://news.kiwistand.com/stories/The-Startup-Drake-Equation?index=0x679f6437bc85dd2b185d13c32580d3563a01d2fa3222105683c969ae3ac5e07d8723917b - Source: https://longform.asmartbear.com/startup-drake-equation - Shared 2 February 2025, 1 upvote, 0 comments Startups fail by default because success requires many factors to go right at once, and the failure of any single factor is fatal. Adapting Frank Drake's 1961 equation for estimating alien civilizations, a Startup Drake Equation lists twelve such factors, from product demand and customer acquisition to funding, co-founder fit and luck. It recommends reducing risk by becoming extremely strong in a few areas, choosing easy, profitable markets such as dentist offices over indie hackers, and designing products to avoid one's weaknesses, such as offering 48-hour response times to a founder with a day job. ## 11. The Code is your Enemy - Kiwi News: https://news.kiwistand.com/stories/The-Code-is-your-Enemy?index=0x66f6cca114e553844d92a1cf126a2b9f28a2003ae1b4c253383336fe56d8fd8ce91a5876 - Source: https://longform.asmartbear.com/code-is-your-enemy - Shared 27 September 2024, 1 upvote, 0 comments Jason Cohen argues that technical founders often fail because they focus on building code and design instead of the customer-facing work that makes a startup viable. He says most startups fail for reasons unrelated to code quality, such as too few visitors, no paying customers, or problems customers don't feel. He recommends talking to 50 potential customers and confirming they would actually buy, and getting people to visit the website daily. He also says these business tasks are the high-risk parts of a startup and should be tackled first. ## 12. Human + Fallible = Love; Corporate + Sterile = Refund - Kiwi News: https://news.kiwistand.com/stories/Human-Fallible-Love-Corporate-Sterile-Refund?index=0x66dca1c01e4918af33e4c12e7d283f70666ff48b95ff08134f9b382d1a0351cd75925733 - Source: https://longform.asmartbear.com/authentic - Shared 7 September 2024, 1 upvote, 0 comments Jason Cohen argues that people forgive sincere human error from companies but grow adversarial toward sterile, corporate customer relationships, and that startups are especially well placed to exploit this. He says the new expectation is not that providers never fail, but that they care, try hard, and treat customers well when they inevitably fail. Cohen recommends that companies show their humanity consistently through communication, explain what steps they have taken after mistakes, and avoid insincere, legally vetted apologies. He also suggests discovering a distinct voice by criticizing others, deciding what you are not, and copying something you love. ## 13. Not disruptive, and proud of it - Kiwi News: https://news.kiwistand.com/stories/Not-disruptive-and-proud-of-it?index=0x66840e878aabb50934b26df1e882dd50e741bd63ea1b1f08dcc946b28061b72b8bbeb0f1 - Source: https://longform.asmartbear.com/disruptive - Shared 2 July 2024, 1 upvote, 0 comments Jason Cohen argues that companies should focus on building something people want rather than setting out to be disruptive, since disruption is more often a side effect of success than a goal. He says disruptive products are rare and usually expensive, and that disruptors often fail to profit, citing Xerox PARC and AT&T Bell Labs, which invented the mouse and Unix but made no money from them. He describes his own companies, Smart Bear and ITWatchDogs, as modest successes built on solving specific pain points, and notes that modest goals are more likely to succeed. ## 14. The "Talk vs Walk" workshop - Kiwi News: https://news.kiwistand.com/stories/The-Talk-vs-Walk-workshop?index=0x664612ebbf00e63368b9afbee0ceed5dcca131557c2d455bba7417838382f87fdc938d48 - Source: https://longform.asmartbear.com/talk-vs-walk - Shared 16 May 2024, 1 upvote, 0 comments The "Talk vs Walk" workshop is a write-storming exercise, invented at WP Engine, that plots a company's claims against its practices to find ways for Marketing and Product to sell better and build better products. Participants first place sticky notes independently on a chart with a "Talk" axis (how loudly a claim is made) and a "Walk" axis (how well it is delivered in practice), then debate placements as a group. The author cites Leigh Thompson's Creative Conspiracy for the claim that no published study shows a face-to-face brainstorming group outperforming a write-storming group. Disagreements over placement are described as useful, with "Enterprise-Grade Security" offered as an example that was ultimately placed on the far right of the walk axis. ## 15. AI startups require new strategies: This time it’s actually different - Kiwi News: https://news.kiwistand.com/stories/AI-startups-require-new-strategies-This-time-its-actually-different?index=0x65eec6b1df00a3648c741a07fca24988987836ee272d0da3c38b0f5a5889679626fdeb1f - Source: https://longform.asmartbear.com/ai-startups - Shared 11 March 2024, 1 upvote, 0 comments The typical advantages startups hold over incumbents, such as speed and risk tolerance, largely do not apply in AI, so AI startups need different strategies to compete. The article argues that incumbents already have the technology, customer data and talent, and that they are rushing to adopt AI rather than ignoring it as incumbents did in past disruptions like mobile and the internet. It adds that since everyone can access the same core models from OpenAI, Anthropic, Cohere, Llama, Bloom and Mistral, differentiation through distribution and data strategy is required, and that most AI startups will fail as a result. ## 16. The fundamental forces of scale - Kiwi News: https://news.kiwistand.com/stories/The-fundamental-forces-of-scale?index=0x65e861f98eaa6d7b3affdf451096634925c0c5b8dc1abcf0f4453413c23cc7f7637d06b1 - Source: https://longform.asmartbear.com/scale - Shared 6 March 2024, 1 upvote, 0 comments Forces of scale make larger companies slower and harder to execute, but more effective when they are harnessed and leveraged. Two drivers explain this: rare events become common at scale, so 1,000 servers failing once every three years means a failure per day, and complex systems have interacting parts that exceed human comprehension. Robustness carries a cost, since a team of four is not four times as productive as a team of one, and a website made reliable with redundant servers, a shared database and a load balancer costs more than four times the original. ## 17. The roadmap to Product/Market Fit… maybe - Kiwi News: https://news.kiwistand.com/stories/The-roadmap-to-ProductMarket-Fit-maybe?index=0x658c3cf7d02eaa05d8f38b4829d680ab9c2766d3794aa0a7eeaad12959a4e11c99f8c8aa - Source: https://longform.asmartbear.com/product-market-fit-formula - Shared 27 December 2023, 1 upvote, 0 comments This excerpt, from a Product/Market Fit roadmap by an author drawing on WP Engine's path to becoming a unicorn, argues that the progression from idea to Product/Market Fit runs through personal fit, market fit, customer fit, and other stages, though the author notes it often does not unfold this neatly. It says passion is necessary but not sufficient, and that a founder needs a unique leverage-and-path combination, illustrated by Scott Adams, to gain a competitive edge. On market fit, it offers six questions for testing a working theory of customers, including whether they are plausible, self-aware, lucrative, liquid, eager, and enduring, and it cites Smart Bear, Slack, WhatsApp and Flickr as companies that pivoted after reality contradicted their initial theory. ## 18. Your customers hate MVPs. Make a SLC instead. - Kiwi News: https://news.kiwistand.com/stories/Your-customers-hate-MVPs-Make-a-SLC-instead?index=0x655cdca912ea24a4b3afe521ae282f1b0c28b1e48fbbb814bcea24ae95089bb7e8e617b7 - Source: https://longform.asmartbear.com/slc - Shared 21 November 2023, 1 upvote, 0 comments The article argues that the MVP (Minimum Viable Product) approach is selfish and harms customers, and it proposes SLC (Simple, Lovable, Complete) as a better way to build a first product version. It claims customers hate MVPs because they are "too M and rarely V," and it cites Google Docs, WhatsApp, Snapchat and Twitter as early products that were simple, complete and loved. It also argues that SLC products can evolve over time, and that products aiming to delight customers may ultimately create meaning, which the author says few companies pursue. ## 19. Excuse me, is there a problem? - Kiwi News: https://news.kiwistand.com/stories/Excuse-me-is-there-a-problem?index=0x6550e561b7a675101f217a90f1a505f95fd5edb15fd4e26e0a6bda4ea2495a9d768d2298 - Source: https://longform.asmartbear.com/problem - Shared 12 November 2023, 1 upvote, 0 comments The article argues that many startups fail even after identifying a real problem and building a product that solves it, because solving a problem is not enough to build a successful company. It presents a model with checkpoints, including whether enough people have the problem, whether they know they have it and care, and whether they have budget to solve it. For the first checkpoint, it estimates that a sustainable small company needs about 1,000 paying customers, which by its Fermi estimate requires roughly 10 million impressions at a 1% click-through rate and 1% conversion to paying. It also says businesses need only about 100,000 potential customers because they pay more and convert at higher rates.