Paul Graham, the world-renowned venture capitalist, points out a trap most first-time founders fall into. They build products that look impressive rather than products that actually sell.
I completely agree. I went through that exact phase myself, spending time trying to build something that looked plausible and fancy rather than something that genuinely helped people.
Graham says that whether founders are pitching to investors or promoting on social media, they usually focus on how they will come across rather than what the other person actually wants. That is exactly why Y Combinator, the legendary incubator behind global giants like Airbnb, ruthlessly trains its founders on how to build products that sell, not products that just look good.
The Golden Rule of Pitching
During Y Combinator's pitch coaching, founders are told to keep every single pitch as concise as possible, between 30 seconds and 2 minutes.
Michael Seibel nailed this perfectly. To summarize his core message: countless companies come in to pitch their business, but far too often, they have no idea how to explain what they do simply and ask for investment. If you are a founder, this is a non-negotiable skill you have to master immediately.
He gives two core rules.
 |
| If you can't explain your business to your mom in three sentences, start over |
The first is the 30-second pitch. You must be ready to deliver this at any given moment, whether they want to invest or not, or even if you are just explaining it to your parents. This is your ultimate weapon.
The second is the 2-minute pitch. This is for people who show a bit more interest, when you want investment, want to work together, or need a deeper conversation. Some people practice 10-minute or 30-minute pitches, but that is a complete waste of time. Two minutes is more than enough. Seibel always tells founders: the more you talk, the higher the chance you will say something the listener hates. Keep your words short, and your results will be better.
The Three-Sentence Framework
The 30-second pitch is incredibly simple. You only need three sentences. No need to cram in a ton of information.
The first sentence is what your company does. This is where almost everyone stumbles when meeting someone new. You must explain it so simply and directly that the other person can understand it with zero prior context. Assume they know absolutely nothing, and make it as simple as humanly possible.
I always tell founders to use the Mom Test. If you cannot explain what you do to your mother in a single sentence, rewrite it. There is always a one-sentence explanation even your parents can grasp. Start there. Basic words are perfectly fine. You can just say "We are a service that lets you rent out spare rooms, like Airbnb." Simple. There is no need to say "We are a marketplace trading spaces like Airbnb." That only forces the listener to ask for even more explanation. Simple language is everything.
The second sentence is your market size. Spend a few hours researching the industry and the size of the market your product belongs to. Investors love hearing that you are operating in a multi-billion dollar market. If you were Airbnb, you could reference the hotel market, the vacation rental market, or the online hotel booking market. This is all findable through a basic Google search. The investor will immediately think, "If this goes well, it could become a massive company." Do not skip this sentence.
The third sentence is your traction. Give concrete numbers. "We launched in January, we are growing 30% every month, and our current revenue, profit, and user numbers are X." If you have not launched yet and traction is hard to show, demonstrate that your company moves fast. Say something like, "We formed the team in January, launched the beta in March, and officially launched in April." Prove that you are a fast-moving startup that makes mistakes and learns quickly, not a slow, bloated corporation.
Sell Simply, Or Lose Them
The core of Michael Seibel's advice is that you must be able to explain your business in just three sentences. You do not need to wrap it in grand, impressive packaging. In fact, trying to dress it up with difficult jargon only prevents customers and investors from understanding what you actually do.
This is exactly why explaining what you do in a single, clear sentence is so critical.
And the same logic applies to entrepreneurs using YouTube, blogs, or social media to promote their business. If you are making a YouTube video, focus on one clear topic. That topic must directly address the specific desires and curiosities of the viewers you are targeting. And it must be simple enough that even your mom could follow along.
From a viewer's perspective, the moment they hear "a marketplace trading spaces" instead of "a service that lets you rent out spare rooms," they want to tune out. In a world where people consume content through Shorts and quick scrolls, the moment you explain something in a complicated way, most people will move on instantly.
Launch the 1.0, Let the Market Build the Rest
The goal is not to make a product that looks impressive. It is to make a product that sells. And a product that sells is not created inside your imagination. It is built through the reactions of the market and real customers.
Paul Graham gave brilliant advice on this.
 |
| Ship it fast. Let your users tell you what to build next |
"Build something clean and simple that you would want to use yourself. Launch version 1.0 as fast as possible, then keep improving the software by listening to your users. The customer is always right, but they are right about different things. The least sophisticated users will show you what needs to be simplified and clarified, while the most sophisticated users will tell you what features need to be added."
Your products and services must be released in their absolute simplest form. Then you continuously upgrade them based on how the market responds.
DoorDash, the massive American delivery platform, started in an almost unbelievably simple way. In their early days, they took orders through Google Sheets and did the deliveries themselves. Even though they had Computer Science degrees from Stanford, they did not design a complex system from the start. They started incredibly simple and improved through real customer feedback.
My Own Unpolished Start
When I created my first product, I did the same thing. My very first product was a 45-page e-book. It was not wildly magnificent, but I squeezed out every ounce of knowledge I had. I honestly could not write more than 45 pages. Because I had only ever worked as a network engineer before starting this blog, I had no experience in this business, so the book naturally had to be short.
But by selling that 45-page book, I built real experience. If I had chased perfection, it would have taken drastically longer. But once I just put it out there, I got actual customers who read it. Watching their reactions, I immediately updated the content and kept improving.
Right now, I am building my own knowledge platform through vibe coding. It is not perfect yet either, but I plan to open it as quickly as possible.
You do not need to be perfect. You do not need to look fancy. You just need to put it out into the world and improve it based on how people actually respond.
If you are feeling unsure about your business because it is not perfectly polished yet, just put it out there first. People will not ignore your business because it is imperfect. Embrace that imperfection, and use the feedback aggressively to win.
Curious about the real stories behind big tech, crypto, and everyday economics? 👉👉👉Subscribe to The Techtonic for your weekly dose of easy-to-read business trends.
Latest Insight: [Why Better Headlines Always Beat Better Products]
Post a Comment