3Ps Framework
Problem, Product, Profit – essential parts of every startup. Seymur shares his knowledge on how to build a startup successfully
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“Investors are shifting their interest from unicorns to camels — startups that can weather the challenges and stand on their own feet.”
– Seymur Rasulov
3Ps Framework – Problem, Product, Profit
There are a lot of great recommendations from startup experts like Sam Altman, Paul Graham, Michael Seibel, and others. You can find all the information on Google.
But a few weeks ago, I noticed a LinkedIn post about startup building. A framework I was not familiar with — the 3Ps.
It was written by Seymur Rasulov – an entrepreneur, CEO & Co-founder of Whelp & SmilePay.
I decided to talk with him about this framework and show it to all the readers of Exponential Founder.
Here is our discussion that will be precious for aspiring founders & entrepreneurs who are currently building a startup.
Your LinkedIn looks impressive. You are an entrepreneur and a founder of multiple startups. But how would you introduce yourself? What is your longer version of the introduction?
Dovydas, no one likes long introductions. I will do a short introduction for you. I love what Mark Twain said: “I didn't have time to write a short letter, so I wrote a long letter.”
I think being precise is very important when it comes to being an entrepreneur. I have a belief that sounds like: “Let's do it together.” I don't want to do anything on my own. I want to do projects with someone, with my co-founder, with partners, with stakeholders. And I think that's where the magic of entrepreneurship lies, where you start doing things together, and someone completes what you don't have. My co-founder brings the knowledge and experience that I don't have, I bring to the table the things that he doesn't have.
So short introduction for you with one sentence:
I'm an entrepreneur who loves building products or services that bring value to consumers by solving their problems, and I want to do it together with amazing, great people.
All right, 3Ps. What is this Framework?
So the three Ps stands for the Problem, the Product, and the Profit.
The 1st P is the Problem.
Often, aspiring founders make the mistake of starting with a solution in mind and then searching for a problem that fits. This reverse engineering approach isn't ideal.
You should experience the problem yourself. You should have the people around you experience that problem. And the number of people experiencing that problem could be or should be as large as possible. That's how you're going to scale up, and then you would look into the problem and how you can solve it.
It doesn't have to be a billion-dollar problem. It could be just a tiny part of a whole system. Let me give you an example. We've seen machines that print receipts in grocery stores. The issue is that you have to open, insert, and remove the receipt constantly. When the machine runs out of receipts, the cashier has to retrieve one from a box, causing delays for customers. As an entrepreneur, you should consider a solution that automates the receipt process or even offers a receiptless option. It's frustrating when the machine stops working while you're in the middle of shopping with a full cart, limited time for parking, a child needing the bathroom, and other challenges. By identifying and addressing this common problem, you can provide a valuable solution.
I dislike waiting on hold for customer service calls. The worst part is the terrible songs they play, which bring back negative memories and emotions. Especially on rainy, dark days, it's depressing. So, I decided that there had to be a better way. Instead of calling, I prefer using apps like WhatsApp or Telegram to interact with customer support. Many others share this preference for quick, automated interactions without speaking to a live agent. This is how Whelp came up. Our goal is to automate 80-90% of the customer support process for businesses, allowing users to get most of their tasks done without human intervention.
That’s it. The problem should be something you and others have experienced and continue to face. It causes frustration, leading people to seek alternative solutions.
The 2nd P is the Product.
While solving a problem is crucial, you can't do it without a product or solution. One key aspect here is to seek feedback from potential customers throughout the development stages. However, it's important to balance incorporating feedback and maintaining your vision. Not every suggestion should be implemented; otherwise, you risk becoming a product customized for a specific customer.
When we were building our startup, we made the mistake of solely relying on our own perspective. We spent months developing a product without seeking external input. During our first customer meeting, we realized we had created something resembling an airplane when the customer simply wanted a bicycle. This taught us the value of involving potential users early on and applying feedback selectively, keeping our vision intact.
For example, If you approach Turkish Airlines with $500k and ask them to take you to the moon, they would most likely decline. This doesn't make them a bad airline, it's simply not within their mission or vision. The same would apply to other airlines like Qatar, Emirates, Air China, Air Asia, and Air Malaysia. Each company has its own focus and limitations. Similarly, when building your product, you need to have a clear vision and framework. Not everything suggested by customers will fit within that frame, and that's okay. You should seek feedback but stay true to your journey. Remember, your product won't be for everyone, just like different people have preferences for wine or spirits. Be prepared to receive both positive and negative feedback and have the courage to consider it. Feedback is valuable, and while you should digest it, it doesn't mean you have to follow it blindly. Building a product requires careful consideration to avoid starting from scratch later on.
Feedback is a gift if you know how to use it. This is something I learned from pitch coach Gleb Maltsev.
The 3rd P is the Profit.
Many startups will start on the wrong foot. They will say: oh, I will build this product that many people will use, and I will try to make money by bringing advertising in. I will have my banners there, and I will raise investment. Wrong, Wrong, Wrong. I made that mistake. It's a wrong approach. You need to take money, even if it's the tiniest money, even if it's like 99 cents.
Building a sustainable business means having a clear path to profitability. While it's understandable to focus on growth initially, investors are now emphasizing profitability more. Even if you may not be profitable from day one, it's crucial to establish a break-even point and a plan for future profitability. Investors are shifting their interest from unicorns to camels — startups that can weather the challenges and stand on their own feet.
Remember, profitability is essential because, without it, your venture could become an expensive hobby. While some companies like Uber and YouTube have managed to delay profitability, the current investment landscape favors businesses that can demonstrate a clear path to sustainable earnings.
Think of yourself as a camel, resilient and capable of going the distance.
So, when embarking on your entrepreneurial journey, always consider the 3Ps: Problem, Product, and Profit. Identify a problem that resonates with you and others, build a product while incorporating valuable feedback, and strive for profitability to ensure long-term success.
What advice could you give to aspiring startup founders?
In 2015, I started a soft skills workshop training company.
In 2019, I started a company called Whelp. We help companies to automate their customer support and help them save time and money. And, of course, improve customer efficiency and customer engagement.
In 2022, I started a company called SmilePay. It was a facial recognition payment company. Within 0.2 seconds, you could basically pay with your face, no cards, no phone, no device, no receipt, no cash, nothing. You walk to the store, grab the item, smile at the camera, and boom, done.
I'm mentioning all this because these are not something to brag about. These are actually signs of retraction, and that is something you shouldn't do. The reason I'm mentioning this is that “I did it; you don't do it.”
So the audience is tuning in and reading your newsletter. They need to understand, we all need to understand, that focus is the most important thing, and unfortunately, I'm seeing it at the age of 30, when I have made all the mistakes. You cannot be split into two main areas, you need to know how to focus on the right things.
That's why I think for young people it's important to try many things until the age of 23, 24, or 25 and after that settle down with one thing and try it for the next 5 years.
You mentioned that you're still in the process of doing many different things. So, how do you focus?
It's a great challenge. My co-founder hates me for that because when I always come up with an idea, he says: “again? Are you going to do this again? Can we just focus? “ So that's a challenge.
To overcome this challenge, it is essential to train and discipline yourself. Think of it as taming your inner passion and directing it towards a specific objective. Similar to taming animals in Minecraft, where they become your followers, you need to tame and train your inner drive, recognizing the need for concentration on a single project. However, even while staying focused, you also understand the importance of staying informed about industry trends, such as AI, FinTech, and others. You constantly educate yourself in these areas, utilizing any spare moment to read articles or newsletters from reliable sources like TechCrunch or EU-startups. By subscribing to various newsletters, you receive bite-sized knowledge that keeps you updated with current happenings. This approach allows you to maintain a broad understanding of multiple fields while diving deeper into one specific area. It's like the shape of the letter "T," where the vertical stem represents in-depth knowledge in a chosen field (such as customer support automation in my case), while the horizontal bar represents a broader awareness of FinTech, e-commerce, AI, Web3, and Machine Learning.
Blitz questions:
What product are you obsessively using right now?
CashApp – I love it!
Which book are you reading right now?
I will start reading Four Thousand Weeks: Time Management for Mortals.
But I recommend reading Innovation Stack for every aspiring founder! (Seymur shared a PDF version of this book, if you want to get a copy, reply to this email or send me a message).
What are you bullish on?
I’m a big believer in AI. I’m betting on this technology.
What are you bearish on?
It’s my personal opinion, and I’m happy to be wrong about it, but I think that Metaverse will not last long. I don’t believe in it.
📍 You can connect with Seymur on LinkedIn.
And that’s a wrap about today’s topic, “3Ps Framework”.
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