Founders should allocate roughly 1% of their time to strategy selection and 99% to execution, discovering which playbook works through direct customer engagement rather than analysis.
Andy advises founders to stop agonizing over which playbook to follow and instead get out to talk to customers, figure out who is willing to buy today, and chase that path—strategy refinement can come later. ✦ AI generated
Andy · a16z Podcast · 2026-08-13 · original ↗
starts at this moment · 37:39
“Why would a founder sort of misjudge what game they're playing?”
I think the biggest mistake that I see founders make at an early stage, honestly, is just spending too much time trying to figure it out, right? It's like too much time on the strategy. And strategy's important, but you should spend like 1% of your time on the strategy. Pick it and then spend 99% of your time trying to execute. So, rather than sit back and say, well, should we do lighthouse or should we do land grab? Get out, talk to your customers. Figure out which ones are willing to buy your product, the features and the services that it delivers today, and then chase that path, right? There's no bonus points for hard-earned revenue. You don't get extra multipliers on your revenue if you get the big logo or something. Go after the customers you can, and then constantly be improving your product and then you can always reassess your strategy.
verbatim transcript · starts at 37:39
37:19trade markets. And so, you then have to treat every one of these with immense care cuz they are huge um ACB opportunities. And And they've obviously I think they're they're arguably the best in the world at doing that. Um so, yeah. That's a good example of that. >> Why why would a founder sort of mis- misjudge what game they're playing? Or how how have you seen founders kind of
37:39misjudge whether they're doing lighthouse or land grab? >> I mean, it sounds way more sexy to sell to JP Morgan Chase than to, you know, Schmitty Schmitty Mormon. >> [laughter] >> I think I think the biggest mistake that I see founders make in an early stage, honestly, is just spending too much time trying to figure it out, right? It's like too much time on the strategy. And
38:00strategy's important, but you should spend like 1% of your time on the strategy. Pick it and then spend 99% of your time trying to execute. So, you know, rather than sit back and say, "Well, you know, should we do lighthouse or should we do land grab?" Get out, talk to your customers. Figure out which ones, you know, are are willing to, you know, buy your product, the features and
38:18the services that it delivers today, and then chase that path, right? There's no bonus points for hard-earned revenue. You know, you don't get extra, you know, multipliers on your revenue if you get the big logo or something. Like go after the customers you can, you know, and then, you know, constantly be improving your product and then, you know, you can always reassess your strategy. You You after the first year, if you get all
38:38your your revenue milestones, you can look at it and say, "Well, could we be more effective doing this?" Maybe. But just don't spend too much time in analysis paralysis mode. >> Yeah, totally agree with that. I totally agree with that. >> Joe, Joe, you had some you had some fun questions for Andy. I It was a lightning round question. >> Yeah, lightning round, okay. >> Lightning round. I'll see what other
38:56ones I can come up off the top of my head, but the first one is maybe like your favorite place you ever weirdest place you ever closed a deal. >> Yeah, I mean, we've had some customers that, you know, have have taken taken us to some some funny places, right? I mean, I've closed deals on fishing trips. I've closed deals, you know, out at shooting ranges. I've closed deals at
- ·Spending too much time on strategy is a common mistake
- ·Allocate just 1% of time to strategy selection
- ·Dedicate 99% of time to execution and testing
- ·Refine strategy later through direct customer engagement
- ·Stop agonizing over which playbook to follow
- ·Get out and talk to potential customers
- ·Identify who is willing to buy today
- ·Chase that proven path forward
- ·No extra multiplier for landing a big logo
- ·Go after the customers you can reach now
- ·Continuously improve your product based on feedback
- ·You can always reassess strategy later