Entrepreneurs delusional optimism

Daniel Kahneman - Delusion optimism

A refreshing reminder to share for founding entrepreneurs, and one that is far to common of a twin trait among why many startups fail.

Perhaps its more of a virus than a trait, but the truth in Kahneman’s short video is a message to startups and any small business.

He describes how a blurred vision blocks out key warnings from who matters most – your customer, peers, and employees. It’s a direct result of delusional optimism where the founders idea or product is considered the next best thing or a must-have.

Does the idea or product solve a meaningful problem, is enough scale or an audience to will depart with their $$$, are you chasing the startup dream and neglecting the fundamentals of a business?

Kahneman video on Making Smarter Decisions based on his bestselling book Thinking, Fast and Slow, touches on how people, or entrepreneurs in this case, should overcome the cognitive biases and errors that can affect decisions that can sink or catapult a business.

10 Startup Founders Share The Best Advice They Ever Received

Advice from entrepreneurs for startups

A good post from Mashables worthy of a share to you start-up founders and entrepreneurs.

When you’re thinking about starting a company or first in the entrepreneurial trenches, any nugget of advice you can get from someone who’s been there before is like gold.

But as time goes on, you’ll realize that some of those tips are better — and more applicable to your business — than others.

So, to get you started on the right foot, no matter where you are in your startup journey, we asked 10 founders to weigh in on the absolute best advice they received as they built their companies. Take note of these (sometimes surprising) lessons for your own venture.

Other related startup posts you may find of interest:

Continue reading “10 Startup Founders Share The Best Advice They Ever Received”

Want to work for a startup? Start something first

why work at a startup

Conversations I’ve had with a number of entrepreneurs and intrapreneurs are reflective of the type of personalities, mentalities, and overall fit that it takes to either launch a start up, or work for one.

Whether you’ve ever applied to a startup to jump on the next latest great idea, have a love for the startup culture, or have your own ideas in incubation dreaming to get financing and launch full time, this post touches on a few key areas of the type of ‘fit’ the startup cultures seek and cultivate.

Steve Blank, one of the fathers of the Lean Startup revolution, defines a startup as lean organization formed to search for a repeatable and scalable business model. And what does that mean? Well, that the company either doesn’t have a working product, it has a working product that no one will buy (meaning cannot get past the first barrier of market adoption), or it has a product that sells but can’t figure out how to market and sell the product profitably.

Translation: Working at a startup is nothing short of chaos. You’re trying to make something from nothing (at worst) or trying to fix all of the things that exist but that aren’t working (at best). Oh, and ideally before you run out of money.

Given all of this insanity that goes on, how do you prove to a hiring manager at a startup that you have what it takes? How will he or she know that you’re the kind of person who understands the highs as well as the lows and who can push through the dips that you’ll inevitably experience working at a startup?

It’s pretty simple, actually:

Start something first.

Starting something is hard work and pretty thankless most of the time.

Starting something is hard work and pretty thankless most of the time. You’re building stuff, you’re trying stuff, and most of this stuff won’t work the first —or second, or third — time. Talk about discouraging.

But that’s exactly the point. If you’ve gone through the process of starting something meaningful, you’ll know how it feels to try things, fail, bang your head against the wall and try a few more things that will probably also fail. (I know, maybe I should change my pen name to Debbie Downer.)

So, if you haven’t experienced the fear, stress and frustration of starting something, then get to work. There is no better way to build up the mental toughness that’s needed to succeed at a startup.

Not sure where to start? Here a bunch of ideas for you so you can focus less on the idea and more on the getting started:

1. Start a Networking Group or Meetup

With platforms like Meetup, it’s easier than ever to organize a group around your area of interest, whether it’s cooking, coding or college basketball. Of course, organizing is the easy part. Recruiting people, running meetings or events and promoting the group is hard work. And you might fail. But that’s the whole point of this, isn’t it?

2. Start Blogging

Contrary to popular belief, blogging is hard work. It’s one thing to write a couple of posts a month on a blog using a vanilla theme. It’s another (and much more challenging) thing to post good content consistently, add custom features to your blog, perform search engine optimization, and systematically improve it so you attract more readers and followers. Think a startup would be impressed if you did all of those things? Yep.

3. Build an App

Got coding skills? If there are specific startups you’re targeting in your job search, see if they have an API that you could build a Web or mobile app around. Then, show up to your interview with a working prototype, and expect to raise some eyebrows in a good way. If you don’t know how to code, don’t let that discourage you. There are lots of great sites for resources as CodeAcademyTreehouse where you can learn to code at your own pace.

4. Write an Ebook

Writing a good ebook requires commitment and lots of effort and that’s before you even publish it, when you need to get down to business marketing and selling it. I’ve gone through this process myself, having written an ebook about careers in venture capital. If you think you might take this path, check out the things I wished I had known before I wrote my ebook so that you don’t make the same mistakes I did.

5. Teach a Class

Everyone is an expert at something. So, pick your subject and use a platform like Udemy or Skillshare to teach a class on that topic. It’s a challenge to create compelling content and recruit students for a class, trust me, because I’ve done it myself. Aside from helping you build the tenacity that you’ll need to start your own business, teaching a class is also a great networking opportunity and positions you as an authority within your area of expertise. Bonus points for sure.

6. Throw Ideas @ The Wall

One of my own I’ve added to John’s top 5 list, is don’t fear the limitation of money or time to test your concept. Take the basics of your idea, and throw it at the wall to see if and what sticks.

Look at the global talent pool of designers, programmers, accountants, virtual assistants, business advisors, and even lawyers that offer exceptional and affordable talent (yes, it does exist), to bring your MVP or beta concept to life to validate its potential. (I’ve had a lawyer who worked enterprise contracts for Pepsi, hired for legal contract reviews for less than $300).

99designs, elance.com, odesk.com and others are a few good places to start to search for the talents you need. Or perhaps you’re seeking more sweat for equity to bring aboard the right partner, then consider founders2be. Yet if you don’t have the next best social 3.0 idea and want to go more traditional, browse around and connect with suppliers on alibaba.com.

Now, what are you going to start?

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Credit and republished from John Gannon, author of The Daily Muse.

Key learnings from Startup School 2013

key learnings from starting an online business

Y Combinator put on a solid performance on October 13th where thousands of programmers, engineers, designers, marketers and entrepreneurs joined a line up of amazing speakers at the Flin Center for Startup School 2013.

Having had my run at a few startup ventures, much of key takeaways from mentors hit close to home. These are the key takeaways.

Phil Libin, Found @ Evernote

  • His 3rd company before hitting it big with Evernote
  • ‘Let’s build something we LOVE!’
  • Cultivate a group of cofounders early
  • Don’t even make friends with people you wouldn’t start a company with!
  • Being your own boss (while consulting) sucks! You aren’t creating long-term value
  • Don’t be clear with structuring. Be innovative with your product
  • Not fun day to day, but fun month by month
  • No exit strategy. Build something you don’t want to sell
  • Make something for yourselves

Dan Siroker, Founder @ Optimizely

  • 2005: Time from start to first paying customers
  • 2010: We had our first paying customer before we wrote a line of code
  • Every candidate: Are they better than the mean?
  • Bottleneck: A/B testing requests a developer
  • Hard to prioritize 1, 2, 3, if you aren’t the market
  • Asking good questions > giving advice
  • Repeat tight feedback loops
  • Entrepreneurs write the algorithm (to success)

Ron Conway, Partner, SV Angel

  • Invest in people first
  • 40% of startups in SV Angel go out of business.
  • The founders who iterate until it works are the unsung heros
  • Never argue with the metrics
  • Find investors who add value
  • Social apps. change the way people communicate
  • If the product takes off, it’s a good product
  • Move quickly. One term sheet = forcing function
  • Follow up to get agreement on paper
  • Product focus = crucial
  • Be decisive
  • Hire fast. Fire fast. Even if its a cofounder
  • Recognize deficiencies
  • Recent change code < design

Chris Dixon, Partner @ A16Z

  • Good ideas that look bad, look for the sweet spot in the middle
  • You need to know a secret. Something you know that most people don’t.
  • Draw from your experiences
  • To us, it was as obvious as this bottle of water
  • Unbundle functions
  • Powerful people will dismiss it as a toy
  • People vote with their time. Did it start as a hobby?
  • Does it challenge social norms?
  • Best indicator: Domain expertise

Diane Green @ VMWare

  • We had a big vision
  • Don’t fix up the office
  • Find a small milestone that adds value
  • Keep your options open
  • With the right people, a board is invaluable
  • Having a deadline helps with almost everything
  • Make people’s lives easier!!!

Balaji Srinivasan, Founder @ Counsyl

  • Let’s talk about exits…
  • Voice / stay and make a difference VERSUS Exist / leave and try somewhere else
  • Exist gives VOICE its strength. People leaving makes voice an option.
  • Silicon Valley is reinventing every industry. The backlash is beginning.
  • Show people what a world run by Silicon Valley would be like, without disrupting.
  • Opt-out. Mobile makes EXITS less risky.

Chase Adams, Founder @ Watsi

  • Do good + Do well.
  • Do you think all the startups TC wires about are this secretly crappy
  • Earn trust
  • Worst part of being a non-profit: nobody says no.
  • Make the world smaller = make the world better
  • Find something to work on that you care about more than yourself.

Jack Dorsey, Founder @ Twitter, Square

  • Ware are not here to do what’s already been done. Don’t worry about rejection.
  • Don’t build someone else’s dream.
  • Praise > blame
  • Do the hard things when it’s going well.
  • Small details matter
  • Create a note called ‘Daily’. Check it daily. Add do’s and don’ts. It will help you focus.
  • You. You’re the future. You have the ideas. That’s your task. Sometimes you win. Sometimes you lose. But it’s up to you to make what you want to see the world.

Mark Zuckerberg, Founder @ Facebook

  • I built stuff I wanted
  • We didn’t realize we were going to be the ones.
  • We cared more. For everyone else, it was a hobby.
  • Be determined
  • I know nothing when I started
  • That mistake cost me billions…but it’s fine.
  • When hiring: Would I work for that person?
  • I never believed startups were glamorous
  • Throw yourself in. What’s the worst that could happen?
  • Pick the #1 thing that matters.
  • When a problem arises. Lockdown!!!

 Nathan Blecharzyk, Founder @ Airbnb

  • You’ll fail more than you succeed
  • Everyone experience should be addictive
  • Choosing partners: Most important.
  • Something positive happened (a sign)
  • Work through it.
  • After a couple of beers, I agreed…
  • Motto: 3 clicks to book it
  • Before you quite, give it 100%
  • Lifecycle of a startup…Shoot high, low, low, low, low, flat, low, blip, low, adoption and the skys the limit.
  • It looks really easy. Persevere.
  • Do thins that don’t scale.

The above is a repost summary from Gregory Koberger @ startupnotes.org.

Roots of a Startup

Roots of a startup

Richard Branson, one of my more admired entrepreneurs, surprisingly never set out to be a businessman and instead followed his guiding-light as a teenager to launch a magazine startup that evolved into the Virgin empire we’re familiar with today.

Its a familiar story hearing of entrepreneurs who begun with similar beginnings. Those with a passionate vision in mind, a solution to a problem, or pursued the path of fulfilment vs. chasing the golden ladder and paycheque that many of use were bred to pursue.

Even my entrepreneurial DNA has led me down the path of the startup addiction, having founded a digital marketing agency, mentoring and coaching bootstrapped startups and fortune 500’s, to taking digital epiphanies from concept to market….with some kept warm on the back-burning similar to where Alibaba.com’s path to success.

Build a business, not a startup

Reflecting on over 15 years of digital business adventures (and ventures), and looking at the successes and ‘learning experiences’ from a variety of clients and brands, I found a few common threads that were all too apparent in the make or break of a new digital business startup. And this is what I’ve become familiar with as the roots of a startup.

With most things in our ecosystem, both in life and business, everything that grows or advances into something bigger and better, requires foundation.

It’s a bit cliche, but still one of those basic ingredients I’ve found most often neglected by startups and entrepreneurs, and repetitious reasons for why many startups fail.

Don’t just take my word, the influential ancient Chinese book the art of war, is a masterpiece on strategy that can be applied to help startups build a strong foundation to win those small and large milestones and battles through their startup journey.

The simplistic takeaway from this is that a foundation for your startup is comprises of the following roots, which will help you provide the support to drive your new startup venture forward. And when vision gets cloudy or roadblocks and failures occur, the foundation is your support to fall on to revisit.

For any startup, its a healthy habit to revisit the foundation on a monthly or quarterly term. Not to re-hash or over analyze, but more of a check-in to ensure your startup strategy and team is still aligned. Think about it…just as in touring the country in a car, you check your GPS or map from time to time to ensure you’re still on in the right direction you mapped out…and if not, ask yourself or your team “why”…and ask it repeatedly if you’re to uncover the root cause that caused your direction or path to become miss-aligned. Again – build a business…one that solves a need or purpose…not a startup.

The Roots

Often I found lacking in many startups is a compressive foundation of entrepreneurship. Many venture down their path with cultivating a new spin on something old (or new), or as in the case of many computer engineers and programmers I’ve met, simply building something for the sake of the challenge or diving-in with tunnel vision…if I build it, it will be cool and they will come.

The startup foundation that appears to separate success from failure; albeit I’ve seen some really great ideas sadly fail from lack of foundation to drive any solid execution, where these foundational roots can be summed up to…

  • Vision and concept

  • Product development and viability

  • Targeted exposure and revenue

  • Adoption and scale

  • Distribution channels, and partnerships

  • Synergy, structure and business design

I’ll get into each one of these foundation roots in separate posts, but for now it gives you a 30,000 foot view of the typical roots that prevail in many successful startups.

Unfortunately many bootstrapped startups dive immediately into building and launching their ideas into market (which isn’t always a bad thing), but tend to neglect the startup roots as an after-thought.

Lets not forget the same roots apply to intraprenuership within the corporate world. Somewhat different approaches and control over each root, but nevertheless they are influential in an organizations growth – ex. think Apple.com’s historical path.

There are no shortcuts to circumventing these roots…and yet why would you. But as the wicked cocktail of time, money and aspiration is drunk, those who venture down the startup path can learn and accelerate much quicker from the experience and validated learnings where many seasoned and successful entrepreneurs or advisors have already tried, failed, succeed and accomplished over the years.

To find advisors to help guide and steer you, just look around your local community for other success stories, network at key events or connect online through community portals that can help introduce you to advisors who want to give back and help…though sometimes at the cost of equity.

Consider the fast-track access to these validated learnings and experience through local or popular incubator programs. Incubator programs are designed to support and nurture the development of a startup through the functional roots described above, and can offer an array of support and services.

I’ve found the biggest perk is the exclusive access to a network of contacts most wouldn’t have an easy time accessing, such as face time with angels and VC’s, and those who have travelled and succeed down the beaten entrepreneurial path and won.

Those digital stars who get it, will invest in themselves for their startup through these incubator type programs. The whole point of joining is to access the services of the different startup ecosystems, and the knowledge to be applied. (Not to mention statistically the success of most startups is far greater from those who join these programs).

Not familiar with a startup ecosystem? A startup ecosystem is simply formed groups of people in their various stages of their business success, and various types of companies, all interacting as a system to help new startups.

Corporate world calls these as elite networks, consortiums, board directors, etc.

But in the startup world, consider these startup ecosystems via incubator programs or accelerator programs as a group where each focus on specific area of the business functions, and/or businesses at various stages in their development stages.

Water the Roots

When I refer to watering the roots, it simply implies taking risk.

The roots of a startup need investment of time and effort to grow. And to achieve this you need to take both small and larger risks.

I’m sure you’ve heard friends or peers pitch the next big idea, but only to fail to even start the journey down its path. Its either a lack of will-power, motivation or drive to take small steps to water the roots of their idea. Talk is cheap.

Watering the startup roots is the necessity to produce the failures, and the learnings from these failures to advance forward, pivot or even stop.

How else will you validate your product or idea, or know you’re targeting the right audience, or if you can monetize your concept, or continually pump time and money into something that will never be.

Watering the roots aims to tweak your startup towards the right direction, grow the business all while intelligently positioning your risk and exposure.

For example, take your startups product or concept. You’re bootstrapping with little to no investment, or maybe you were fortunate to obtain some seed capital for equity.

How you water startup roots of product development and viability will be viewed on how you can mitigate risk of financial investment and time to get your product into a viable product your audience is willing to part ways with their money in return for what you offer.

Do you spend months building the perfect product, thinking it will be a 90% perfect fit with your audience? Did you even talk with your intended audience and get their insights? But how can you if you’re spending 6 months to build your product?

Following this traditional failed startup path tends to lead to either a) folding up your business as you’re broke or cannot invest further time and money until you can get your audience to see the value in parting ways with their hard earned money, or b) you’ll seek further equity to buy you more time to validate the market fit.

In this scenario, watering the product development roots is where I advise the startup to engage in a product feedback loop to build only the basic acceptable product (BAP)….or popularized by the MVP (minimum viable product).

The BAP or MVP will help the startup quickly and efficiently build only the minimum requirements that the intended audience will find value and acceptance.

Then test this with various cross sections of your audience, and take objective views of the feedback and inputs.

This feedback will help become your guiding light on what do address next. Not that all feedback is good feedback, but the testing the BAP will provide you the crucial initial insights to either advance to the next round of development to move towards that market fit, or if a pivot is required.

A startup may realize their initial product idea or vision was blurred. But ongoing testing, learning and optimization will answer any doubts and questions.

And when a pivot is required (turning point), embrace it as many successful house-hold named startups are not where they are today without making a number of different pivots. Think Groupon, Angry Birds or Apple.

These pivots, or turning points, may be the product itself, or the target audience, or the business or monetization model or virtually any one of the roots described above.

A pivot of your product or vision will point you in a new direction towards the success market fit, while reducing time and money spent on something that was never meant to be.

And remember, the outcome of your BAP is to get as close to the “right fit” with your audience, where your market is willing to spend their time, money and evangelize your product or brand.

But for now I hope you find value in the sharing of my experience in the digital space and with startups. Where extreme uncertainty prevails in the startup world, take heart in the roots of a startup to help you launch or elevate your next digital business.

Be sure to share your experiences and tips with others and comment below. I’ll aim to respond and share back with others.