Dharmesh Shah emphasizes that startup founders should focus on their customers and market when defining their product positioning instead of catering to investors or media trends. He points out the current trend of startups labeling themselves as "AI-first." This term, while popular, has lost its meaning as many companies adopt it without clearly communicating the value it brings to customers. He uses the example of the early "mobile first" companies that floundered because they didn't clarify how their mobile focus benefited users. Shah suggests that founders should articulate their offerings from the customer's perspective. He contrasts two approaches to describing a vendor contract review system: one centered on being "AI-first," which sounds technical but doesn't convey clear benefits, and another that highlights the product's protective role in a more relatable way. This second approach, which emphasizes how the product operates quietly in the background while safeguarding the business, is more effective in conveying value. By prioritizing customer understanding, founders can also appeal to investors, as a clear value proposition resonates with both audiences.