What do a dating app, Uber, a nightclub, and Airbnb all have in common? “If your customers come to this product, and there aren't enough other people around, then they're just going to bounce,” says Andrew Chen, a general partner at the high-profile Silicon Valley VC firm Andreessen Horowitz, who sits on the boards of Clubhouse, Substack, and a dozen other buzzy tech startups. These companies require what's called a network effect: They become more valuable as more people use them. (After all, nobody hangs out at an empty club.) That means founders need to attract an active and connected base of users quickly, or they may fail to attract anyone at all.
This isn't easy, but it is possible-and one strategy to make it happen applies to any business aiming to foster a community. It's the subject of Chen's new book, The Cold Start Problem. Here, he explains how to attract the masses by starting with the few.
When a company is new, how should it begin to build a community?
In my job as a venture capital investor, I see a lot of startups launch by going to big blogs and getting press. As a result, you get a lot of different users showing up-but none of the users know each other. You might get 1,000 users or 10,000 users. But if they're not in the product at the same time to connect with each other, those 1,000 users aren't that valuable. It turns out that the quality of users, and how interconnected they are, matters a lot.
Denne historien er fra March 2022-utgaven av Entrepreneur.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra March 2022-utgaven av Entrepreneur.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
How to Succeed With Gen Z Workers
People often say that younger employees are different. But are they? We asked six business leaders what they've learned, and how their teams thrive.
There's No Perfect Answer
I worked the same job for 19 years. I hated it, but it paid the bills. Then, in 2017, I entertained an exciting but terrifying question: Could I be an entrepreneur? I wasn't sure, so I needed something that felt like a guarantee. I searched for signs that would feel like a big, clear \"yes!\" Instead, what I found was a tarot card deck.
10 HOTTEST TRENDS for 2025
Want to buy a brand that buzzes? Here's what to know.
BUILD YOUR MONEY MACHINE
A franchise isn't just a franchise. It should be a Money Machine, creating profit even while you're out of the office. Here's how.
The Top Franchises for Veterans
Are you a military vet looking to become a franchisee, or just want to support a brand that supports the troops? Check out these 150 brands.
20 LEADERS WHO ARE DEFINING ENTREPRENEURSHIP TODAY
In a year of disruption, we wanted to know: Whose work will define the years to come? We reviewed hundreds of names and picked 20 leaders across a range of industries and sizes. Meet them on the following pages, and see what it takes to thrive in 2025 and beyond.
How to Become a Main Street Millionaire
It started when I bought one little laundromat. Now I have a whole portfolio of small local businesses that bring in tens of millions in revenue a year. Here's why following my playbook could be your ticket to financial freedom-and saving America's local small businesses.
Want to Better Serve Your Clients? Become Them.
As a designer for brands, starting my own product company gave me a dose of humilityand it changed the way I relate to clients.
I've Been a Publicist for 17 Years.Don't Hire Me.
Entrepreneurs often think they need PR. Most don't. Here's why you're probably better off not hiring someone like me.
The CEO's Advice to the MVP
Kickstarter CEO Everette Taylor knows the formula for a successful launch. NBA champ Jaylen Brown recently launched a shoe and athleisure brand. They have a lot to teach each other.
