Original author: Imran Khan

Original translation: 1912212.eth, ForesightNews

Start with small problems

Don’t aim for a massive market from the start; focus on solving a small, specific problem. This approach often contradicts VC advice, which tends to push for solving big market problems. Instead, you should concentrate on issues that impact smaller user groups—by using crypto products daily, you can experience these issues firsthand. As thousands of new products are launched, use as many as possible to understand the pain points faced by everyday users. This way, you will identify actionable problems that truly need solving.

Starting small allows you to deeply understand user needs and optimize the product without the noise and complexity of a large market.

Avoid consensus

Avoid chasing ideas that everyone thinks are the next big trend. When an idea becomes widely accepted, the market often becomes saturated. Take Polymarket as an example: they have now validated the prediction market, with hundreds of teams building in this space. The time for innovation is when only Polymarket is active, not after validation. Competing with established players requires a product that is ten times better than existing options to stand out. Instead, focus on areas that have yet to be fully explored, where competition is lower. This allows you more room to experiment and time to develop a unique value proposition.

Build products for a small segment of users

Identify a group of core early adopters—about 25 to 50 passionate users who genuinely care about the problem you are solving. By focusing on their specific needs, you can build a solid foundation and cultivate real supporters. These early users will provide valuable feedback, helping you iterate and improve your product quickly. Over time, this process will naturally expand your user base. If people like what you build, they’ll recommend it to friends and family.

Validate your assumptions with a minimum viable product (MVP)

Before investing a lot of resources (like money and time), validate your core assumptions with a minimum viable product. This simplified version of the product should focus on solving the main pain points you’ve identified. You need to release a product with minimal features but capable of providing enough insights to help you decide whether to invest more or pivot to other ideas. It also allows you to gather user feedback faster and potentially learn something completely unexpected. Moreover, a quick product release can give you an edge over competitors—many might be considering the same idea, and often the first to launch grabs attention.

Launch your idea within 30 days

Time to market is critical. Aim to develop and launch your minimum viable product within 30 days to capitalize on the momentum of your idea and start gathering user data as soon as possible. This rapid deployment process forces you to prioritize core features and avoid the trap of over-planning.

Do unscalable things

In the early stages, personalized contact is more important than building a complete product. Engage directly with users, handle customer support in person, and manually execute transactions that will be automated in the future. These unscalable efforts help you build strong relationships with early users and gain deep insights into their needs and behaviors. This approach not only allows you to build and launch quickly but, more importantly, gets your product into users' hands early.

Don't overbuild; leverage existing tools for simulation

Avoid creating everything from scratch. For crypto entrepreneurs, it’s best to avoid building core infrastructure and instead collaborate with or utilize existing products to simulate your final solution. For example, use ready-made automated market makers (AMMs) like Uniswap or Raydium instead of developing your own AMM for a specific product. This move saves resources and allows you to focus on refining your core product.

Recruit users one by one until you reach 50

Personalized outreach is crucial when building your initial user base. Reach out to potential users one-on-one via email, social media platforms (like Twitter DMs), or community forums. This approach allows you to interact with users willing to use the product and obtain precise, candid feedback about it.

Continuously seek feedback and iterate the product

Maintain ongoing dialogue with users. Regular feedback can reveal insights you may not have considered. Use this feedback to iteratively improve the product, ensuring it continues to meet users’ evolving needs. Establishing this feedback loop is critical, as it keeps you closely aligned with user demands, helping you build a product that people truly love. Alon from Pump.fun once DMed 3,000 Twitter users to gain attention for Pump.

Don't take feedback literally

While user feedback is important, interpret it cautiously. Users may not articulate their needs accurately or may suggest ideas that don’t align with your product vision. You need to exercise judgment, uncover potential issues, and address them in a way that aligns with the product direction.

Achieve stability with 50 to 100 daily active users

The goal is to achieve stable growth in daily active users (DAU), with an initial target of 50 to 100 daily active users. This level of engagement indicates that your product is gaining traction and becoming part of users' daily activities. Monitor user retention and engagement metrics to ensure you are building sustainable growth.

Refine your business model

Once you have a stable user base, you should focus on achieving profitability. Develop a clear business model that outlines how your startup will generate revenue. Whether it's transaction fees, premium features, or token sales, a clear business model is crucial for attracting investors and ensuring long-term viability.

Dig deep into data to find growth opportunities

Data is your ally. Dive deep into your data to understand what drives user acquisition, engagement, and retention. Identify key performance indicators (KPIs) that align with your business goals. Use this data to make informed decisions about marketing strategy, product features, and resource allocation.

Perseverance: Reach out through email, group chat, and social media

Perseverance pays off. Don’t hesitate to reach out multiple times to potential users, partners, or investors. Expand your outreach through multiple channels like email, direct messages, group chats, and social media. Entrepreneurship often requires relentless networking and promotion. Always maintain an Always Be Closing (ABC) mindset.

Celebrate small victories and take timely breaks

Every small milestone is worth celebrating. Whether it’s launching a new feature or reaching a user benchmark, acknowledging progress helps maintain team morale. Additionally, taking short breaks can prevent burnout and keep you and your team efficient in the long run.

Work hard

Nothing can replace the importance of hard work. Building a successful startup requires dedication, long hours, and a willingness to go above and beyond. Your commitment sets the tone for the team and can determine the difference between success and failure. Think about it this way: if your competitors are working 7 to 8 hours a day on their ideas, how many hours are you willing to work to win? Of course, I’m not suggesting you rely solely on overtime to succeed, but use this mindset to motivate yourself to work smarter and achieve victory.

Protect your equity

Especially in the early stages, be cautious about the equity stakes you offer. It may be tempting to give away a lot of equity to secure funding or talent, but maintaining control is crucial for shaping the company’s future. Consider alternative incentives and negotiate terms that align with your long-term vision. Ultimately, founders should retain enough equity to receive a return on the significant time invested in early-stage investments.

Micro-financing will teach you how to be frugal

Securing moderate funding will force you to prioritize core issues and learn to conserve resources. In the very early stages, you should generally raise between $500,000 and $1 million. Operating on a lean budget encourages founders to find creative solutions. This discipline can guide you toward a more sustainable business model and make you more attractive to future investors. Amazon founder Jeff Bezos once used a door as his desk to remind himself to save time and money.

Frugality

Adopt a frugal mindset in all aspects of entrepreneurship. Review every expense, avoid unnecessary operational costs, and focus funds on areas that directly promote growth. Frugality will extend your runway and provide flexibility in the face of unexpected challenges or market changes.

Keep the team lean; hire as little as possible

Be cautious when expanding your team. Every new hire should fill a key role that directly impacts the company's success. A lean team is more agile, easier to manage, and less susceptible to the complexities of large startups. Keeping it lean allows you to pivot quickly and maintain a strong company culture. If you hire too much, the company culture can deteriorate rapidly.