The Delta 4 Framework That Will Help You Unlock a Pot of Gold

“As a product, if you try becoming everything for everyone before you become something for someone, you end up becoming nothing for no one.” — Kunal Shah

The globe is marching towards the startup economy as many startups are estimated to perform astounding well in the coming decade.

Moreover, we are in the most efficient state in terms of effective utilization of products and services if we compare it to the past. Similarly, there are more efficient utilities that lie ahead of us.

Delta four (Δ4) framework comes into the picture when you want to self-analyze your idea at a very early stage. It lays the ground for whether or not even the initial stages of your startup/idea/product are worth your efforts in terms of time and ergonomics (money).

If you are a founder, a solopreneur, or a learner, this article may help you to delve into his mind and fetch a few golden ideas to unlock the pot of gold. You can find the original video for reference in the footnotes.

This concept is brought out by Kunal Shah. He is the founder of CRED, a unicorn in India with a valuation of $2.2 billion in April.

The Framework

On multiple occasions, Kunal Shah was asked if any startup is bound to fail or pass, he invented this framework.

According to him, there should be a gap between the problem that people are facing and the solution that you are willing to offer to the problem.

To start with, ask a simple question What goods and services were more efficient 10 years ago?

Efficiency Scoring

Note down the difference between past and present efficient states. Let this difference be: Δ

Anytime when Δ is greater than 4, three things happen

#1. An irreversible behaviour

Consumers will never go back to the inefficient state or old ways.

#2. High tolerance

Even if the Δ4 product cause inconvenience, the consumer will tolerate it.

#3. UBP (Unique Bragworthy Proposition) > USP

Your product is most likely to get introduced to your audience by word of mouth. People love to brag about the product that is disrupting the current state, helping them with their pain points.

For example, Notion, a workspace productivity tool recently valued at $2 billion helps to bring teams, work documents, and information to one place. This helps streamline the workflows more efficiently.

In what cases Δ 1 can become Δ 4?

None, it just means that the startup/product/idea is not sustainable. Giving out coupons and discounts may help in the long run, but it is sooner or later bound to get corroded.

Factors regarding Δ 4 framework that may not work

1. Readiness

Is the market ready for the product that you are willing to launch? For instance, if you create an app but don’t have a smartphone to use that app, it will be of no use.

2. Learning Effort

When it takes time to learn, our native language seems to be the easiest for us. That doesn’t mean everybody has to speak the same language that you do to communicate with you. No matter how much of a Δ4 language one introduces, English will always be a universal language

3. Configurations

You will not replace your current system with a Δ4. Because you already did your micro configurations and automation that it becomes harder or nearly impossible to make the same changes on the new but efficient systems.

4. Branded Lanes (Verbs)

Whenever a brand becomes a verb, it is hard or next to impossible to get replaced

Eg. Whenever people want to look up something on the internet, they say let’s google it! Same with Uber: Let’s uber!

Key Notes

  • Plan extensively before you build a product. Fast failing is secondary
  • People will find your product if it is a disruptive one. You don’t need to advertise the product. Eg. Notion
  • Ask 5 founders whether your product is Δ4
  • When two Δ 1 companies compete, a Δ4 company wins, and in most cases, a single Δ4 company makes two Δ 1 companies compete with each other.

The Future

Experts predict the Internet will become ‘like electricity’ — less visible, yet more deeply embedded in people’s lives for good and ill — Pew Research Center

The world continues marching towards hyperconnectivity. Information nowadays flows from one end of the globe to another within a matter of seconds with the help of the internet.

While there is a potential threat that middlemen could go out of jobs, catching up on these skills and finding a pot of gold will unlock the next level of wealth creation


Link to the video:

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