How to stress test your strategy

From How Would An Entrepreneur Attack Your Business? by Fred Wilson:

This is a question I like to ask our more developed portfolio companies who have built large markets/networks/user bases. I ask them “if you were a startup and you wanted to compete with our company, how would you go about it?”

I think it is very important to understand your weakest flanks/vulnerabilities and then shore them up. If someone will compete with you by coming at the market “mobile only” while you struggle with maintaining a large web and mobile presence, then you should know that. And it probably means you need to rethink your mobile strategy so you can close off that open flank. If someone will compete with you by offering a free version of what you charge $10,000 a month for, then maybe you need to think about a freemium offering to close off that open flank.

One thought on “How to stress test your strategy

  1. Pingback: Why network effects matter so much | A Founder's Notebook

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s