Okay, I’ll admit it - I’m guilty as charged: Everybody is talking about how the current economic climate will influence your startup and the overall (VC) investment landscape. And I did too. Enough. Seriously - it is an interesting time right now, it certainly makes sense to stay on top of the news (and if only to learn that your bank went bankrupt) but at the end of the day (ah, here it is again!) there is little you can do about it.

So - let’s get back to business. Or better: Starting a business. The one point which I discuss with young startups over and over is the magic ‘focus’. When you start a company you often have tons and tons of options (as you start from a blank piece of paper). You could develop a subscription based revenue stream for your premium services; you could add some banners here and there and make some bucks through ad sales; you could pursue this great white-labeling option with company x. So many directions - and so many decisions to make. And all of them heavily influence your ability to focus on the things which really drive your business forward.

To make things even more complicated - the vast majority of startups I meet haven’t clearly defined what they actually want to be. They have a broad and general vision about their product - but hesitate to lock it down to the one, the single one thing which really will set them apart. Unfortunately this is one of the most important things you need to do - you won’t win over a customer by being everything to everyone. The moment you become excellent (and known for) a single thing you have a chance. Only after you found this one sweet spot you can add auxiliary services around it - but don’t forget: You still focus on this single topic. It is what sets your startup apart. Nothing else. Everything else is auxiliary - and will stay that way.

Let me give you an example which might make things a bit clearer: Take Dopplr, the social network for frequent travelers. Dopplr is such a great startup because they focus razor-sharp on a single mission: Build a great tool for people to sync up their travels. Nothing else. Dopplr has a ton of functions, all of which make sense and are great auxiliary services. But nothing, absolutely nothing stands in the way of the single focus of Dopplr: Build the best service for people to sync their travels with their friends.

How do you get there? Here’s what I usually tell a startup facing this problem: Sit down with your core founders team, shut down email, switch your mobile off, get a couple of pizzas and do a soul searching session - ask yourself what single (!) thing you want your company be known for. Write it down in the simplest way you can - if you use any fancy language you are not there. Find something which makes your heart jump, something which makes you want to run out on the street and start telling people about. Only when you find something which you really believe in, you are there. Now - test it. Talk to as many people as you can find. Friends, family, strangers. If they get equally excited about it - you have it.

The moment you have this focus (call it mission, vision, whatever) - everything else will become so much easier, clearer and more focussed. And believe me - it will also help you raise money.

P.S.: Read my post about Saucony and their mission statement here - it’s a great example for the perfect mission.

Posted in Entrepreneurship