Startup Professionals Musings

DECEMBER 4, 2010

I’m convinced that people who have fun at work are more innovative, as well as happier. I don’t have any big scientific studies to prove this, but in my considerable business experience, I haven’t seen many successes come out of a group of fearful pessimists or unhappy people. As I was looking through the literature, I did find evidence that many strong business leaders, like John D.

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Startup Professionals Musings

DECEMBER 26, 2010

One of the toughest decisions for a startup is how to price their product or service. The alternatives range from giving it away for free (like Twitter), to pricing based on costs, to charging what the market will bear (premium pricing). The implications of the decision you make are huge, defining your brand image, your funding requirements, and your long-term business viability.

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Startup Professionals Musings

DECEMBER 3, 2010

A few angel investors have slipped or fallen from their lofty perch, so entrepreneurs must take great care to validate the character and reputation of every prospective investor. The entrepreneur’s tendency to be in a huge hurry to obtain the funding can end up being disastrous, and play into the hands of these less scrupulous investors. Many entrepreneurs believe all money is created equal.

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Startup Professionals Musings

DECEMBER 6, 2010

By Joe Bockerstette As an angel investor who has considered hundreds of startup opportunities, the concept of a value proposition may be the most misunderstood and taken for granted element that I see in newly formed startups. While entrepreneurs freely throw around the term “value proposition,” they rarely offer a thoughtful explanation for the “value” their business is providing and, more importantly, an understanding of who their real customer is and what valuable benefit their customer perce

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Startup Professionals Musings

DECEMBER 27, 2010

For some great leadership advice, see “ Leadership Lessons of the White House Fellows: Learn How to Inspire Others, Achieve Greatness, and Find Success in Any Organization ”, by Charles P. Garcia. He says, “Too often businesses assume that offering more money is the only way to motivate employees. The reality is that employees value having strong leaders, who motivate them to do their best, just as much if not more.

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Startup Professionals Musings

DECEMBER 20, 2010

Whether it’s a business or personal interaction, multiple studies show that as much as 50-90% of the communication is nonverbal. That means that people who are addicted to text messaging and email may be sending only half the message, and receivers often misinterpret even that half. Yet the use of text messaging for business purposes continues to grow, in concert with more of Gen-Y entering the workplace, and a continuing increase in the global rate of texting by everyone.

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Startup Professionals Musings

DECEMBER 7, 2010

It’s not uncommon for me to see a startup business plan “mission” to be the “premier brand” for their product, yet their marketing budget in the financials is trivial. This combination will almost certainly get your plan tossed by potential investors, who understand all too well the need and cost for marketing in today’s environment. When questioned, founders usually mention word-of-mouth, viral marketing, and a top quality product.

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Startup Professionals Musings

DECEMBER 12, 2010

If you think "I better not start a startup now, because the economy is still bad" you will be making a comparable mistake to the people who thought during the dot-com bubble "all I have to do is a startup, and I'll be rich." In reality, what matters more is who you are, not when you do it. Like Paul Graham says, I see startups succeed or fail every day based on the qualities of the founders.

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Startup Professionals Musings

DECEMBER 13, 2010

If you are new to the startup space and angel investing, you probably don’t realize that some groups of angel investors charge entrepreneurs a fee to pitch to their groups. This practice has caused a rousing debate among key players, with some calling it a scam, and others defending it as necessary to cover expenses. Jason Calacanis, a well-known entrepreneur and angel investor, opened the debate about a year ago in a strongly-worded article on his blog which attacked the practice on ethical gro

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Startup Professionals Musings

DECEMBER 30, 2010

Every startup with any traction quickly reaches a point where they need to hire employees to grow the business. Unfortunately, this always happens when pressures are the highest, and business processes are ill-defined. At this point you need superstars and versatile future executives, yet your in-house hiring processes and focus are at their weakest.

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Startup Professionals Musings

DECEMBER 25, 2010

It’s been a tough business year, but I hope you are all taking some time off this holiday weekend, to celebrate with the family. Even those of you who are not Christian and see Christmas as just another day should still enjoy the holiday spirit, take a break from work, and count your blessings. Yet there will be some entrepreneurs can’t seem to make the decision to take a break.

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Startup Professionals Musings

DECEMBER 31, 2010

The naïve entrepreneur thinks he can relax, after he finally cashes the check from a professional investor, but in reality that’s when the work and the pressure starts. His first reality reset is that now, maybe for the first time, he really has a boss, or several bosses, and often very demanding ones at that. Angel and venture capital investors rarely just give you the cash, and stand back to wait for you to spend it the way you want.

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Startup Professionals Musings

DECEMBER 22, 2010

Entrepreneurs are all about firsts, and the most important is you making a great first impression – on investors, customers, new team members, and strategic partners. Poor first impressions can be avoided, but I’m amazed at the number of unnecessary mistakes I see at those critical first introductions, presentations, and meetings. The key message here is “preparation.

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Startup Professionals Musings

DECEMBER 24, 2010

Entrepreneurs have to know when and how to say ‘no,’ and be good at delivering the message. All startup leaders are besieged with requests for their time, attention, talent, money, or influence, and sometimes even good requests won’t fit into the time and energy you have available. Startups require focus, so you need to say ‘no’ to some things, in order to do the important things well.

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Startup Professionals Musings

DECEMBER 14, 2010

Every organization, no matter how small, has one or more people who are quite simply obnoxious, and they drain energy from everyone and can strangle your company. Sometimes they are also intellectually brilliant, or closely related to the boss, so there is no easy way out. In fact, they may even be the boss. So if you find this article taped to your desk, it may be time to look in the mirror.

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Startup Professionals Musings

DECEMBER 2, 2010

The dictionary definition of a mentor is “an experienced and trusted advisor,” or “leader, tutor or coach.” The definition of a critic sounds similar, “a person who offers reasoned judgment or analysis.” The big difference, of course, is that a mentor looks ahead to help you, while a critic looks backward to tell you what you did wrong. We can all learn from both of these approaches, but in my view the mentor is far more valuable than a critic.

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Startup Professionals Musings

DECEMBER 21, 2010

If you are an entrepreneur for the first time, or entering a new business area, it’s usually worth your time to assemble an Advisory Board of two or three executives who have travelled that road before. But if you select the wrong people, or use them incorrectly, the impact will not be positive for your company or your image. For perspective, you need to remember that boards of advisors, unlike directors, have no formal power or fiduciary duties, but rather serve at the pleasure of you the busin

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Startup Professionals Musings

DECEMBER 8, 2010

Too many entrepreneurs still believe the urban myth that you can sketch your idea on a napkin, and investors will throw money at you. Every investor I know is frustrated with the poor quality of the business plans they get. This is sad, since “how to write a business plan” is a frequent topic found in every business journal, and a common title in the business section of every book store.

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Startup Professionals Musings

DECEMBER 9, 2010

Most startup founders know exactly what they want to design and sell, and they are personally convinced that everyone will buy one. Yet they often fail to realize that their view is likely biased, and will be instantly discounted by potential investors. Business plans with no “industry expert” data on your target opportunity size and growth are routinely rejected.

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Startup Professionals Musings

DECEMBER 16, 2010

The hottest buzzword for startups in 2010 is “pivot.” The term, made popular by entrepreneur and venture advisor Eric Ries in an article on Lessons Learned last year, is properly used to describe successful startups that change direction quickly, but stay grounded in what they've learned. They keep one foot in the past and place one foot in a new possible future.

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Startup Professionals Musings

DECEMBER 23, 2010

Being an entrepreneur these days requires an understanding of a thousand topics, many of which don’t even exist today in traditional learning vehicles, like schools and textbooks. The Internet and its information wave have changed everything – it’s the problem, with constant change, and it’s the solution, if you use it to navigate quickly and self-educate.

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Startup Professionals Musings

DECEMBER 17, 2010

I was surprised when I read recently that Napoleon Hill, in his book “ Think and Grow Rich ” said that he looked at all the great entrepreneurs, and the one thing he found is that they all had a huge sex drive. On the business side, we all know that the sex industry is rife with entrepreneurs, so I wonder if there is a connection? Implying a connection may be an over-simplification of Hill’s classic, but his chapter on “The Mystery of Sex: Transmutation” certainly goes into some depth about how

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Startup Professionals Musings

DECEMBER 19, 2010

I’ve always said that startups are all about execution. Sometimes I encounter self-proclaimed entrepreneurs who have been “thinking” about a concept for many years, and haven’t started yet. Some of these may be visionaries, but none are real entrepreneurs. Entrepreneurs live by the principles discussed by Leonard A. Schlesinger, President of Babson College, in his recently published book titled “ Action Trumps Everything ” which he wrote in conjunction with friends Charlie Kiefer and Paul Brown.

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