Startups The things I learned from joining a startup accelerator |
- The things I learned from joining a startup accelerator
- Business Model Canvas vs Lean Canvas: Which Should You Use?
- The company (read start-up) is offering me an equity, based on my performance.
- Exit Strategy for a Small sports club based in India.
- Building an App, OK to use existing LLC for MVP?
- How aggressively should I pursue leads for my new consulting business?
| The things I learned from joining a startup accelerator Posted: 09 Feb 2018 12:03 PM PST This is one part of two. I am still writing the second part. This part is more about what I learned doing the process and the second part will be more about the journey. Hope you like it It can feel super frustrating to jump from source to source, trying to find out information about starting a business. All to no avail. No matter who you are, as soon as you get into the world of entrepreneurship — it's like you've been thrown in a pool with no ability to swim. You sort of know what you're supposed to do; wobble my hands, wait no — too slow, need to go faster, panic. You're drowning. I was there too. August 9th of last year was the first time I've spoken to the world about the first portable pour over coffee maker. It was my pitch to the CUNY accelerator, and looking back, joining was one of the best decisions I've made as a young entrepreneur. Because I learned how to swim. I spent the next four months as the founder of my first company. Many days had me ecstatic, and many nights flamed with fire. Co-founders joining, others leaving. At the end, there was Yaron (co-founder) — together we pitched, and we got the investment. Ah, sweet glory. I'd like to start you off with a 'mini-accelerator', summarizing the important things I learned. This'll be separated into two parts: this first part will be more general and will provide the 7 rules I learned every entrepreneur should know. In the next part I'll get into specifics. Pick the right co-founder/team. This is the first point for a reason (and it'll be the longest one). Your team IS your company, the wrong dynamics is the number one reason for failure, and the right team is the number one reason for success. Most people that start their own companies tend to have 'alpha' personalities and would rather do it all alone. Don't even think about it. You will fail. When choosing teammates you've got to hit some major check-marks: Sit down and figure out the most important skills you're lacking. You're a tech company with no developer? are you f***ing kidding me. Choosing the right skills is actually second to being absolutely sure that this next person understands and believes in your vision. Conflicting views on the future of the company will destroy you. Make sure you're on the same page with the amount of time/money that this person is willing to spend, whether or not you'll be accepting VC funding, or whether they are willing to adapt when (and yes it is a when, not an if) you start running into problems. Jamie Wheal and Steven Kotler coined a term they call ecstasis in their book " Stealing Fire". It is an idea practiced by the top performers who go into alternate states in order to take a step above the rest. When Sergey Brin and Larry Page were looking for someone to join the team — they had access to the most talented people in the world. Skills weren't the problem, they needed someone that could look rise psychologically above the rest, so they placed their candidates in hell week (similar to what you see navy seals go through) and started testing whether the individual retreated to their ego or became one with the google team. They ended up Eric Schmidt. Of course, you are not google — and no one will agree to go through hell weak for you. But in a more practical sense, it's useful to look for mindful & open minded entrepreneurs to become a part of your venture. Don't fall in love with your company, fall in love with the people its for. Two words: design thinking. Your product might be inspired through problems you face in your own, but ultimately, designing your product requires one really important thing: go out and find anyone having the problem you're solving, dig their brain, and be empathetic. You often find entrepreneurs getting a false sense of confidence that they have a great product, when really, the only problem they are solving is their own. Take away any preconceived notions you have and just listen. You're likely to pivot — many times. You can't dwell on having to change routes when so much work has already been done — the best you can do is learn how to make those mistakes faster. If you're pivoting often, that means you are testing your routes and making changes before they kill you. Competition is good. Just do it better. Never let your competition get in your head. See it as a sign that your market is one that is worth going into. Keep pushing and doubling down when things get tough — the weak hands will fall, and you'll gain a huge advantage. Did you know Lyft was a thing way before Uber? The latter clearly became the winner in this battle, simply because their model for ride sharing was — well — better. Learn to separate your emotions. This is a serious remedy that needs to be taken at 3 doses a day, because it saves so much time. If you have someone giving you direct, honest feedback you can just skip the whole part where you dwell over your hard work being "s**t" and go straight to making it amazing. Of course, there's a clear line separating a sturdy critique and just being an ass. Your intention is that line. Unless you're an amazing actor or a psychopath, you can't fake your intention and everyone else will be onto you. Bad, bad vibes. Just be genuine, it'll take you far. When you're down, change your perspective. Things may seem overwhelming, but Rome wasn't built in one day and neither will your company. I like to ask myself a simple "what if" question. Once you imagine changing your circumstances, your brain can't do anything but process the information objectively. I've started to notice this concept when giving a great piece of advice to someone else. I'd be able to be present and sympathetic on a completely objective basis — which is what allowed for me to see the right course of action, yet I would later realize that I wouldn't do what I've suggested when/if I was in the same situation. Just to refer to the third point as an example, the question to ask is "what if I didn't pivot?". You then quickly that the alternative to pivoting is death — not so bad anymore. Don't overwork yourself and burn out, be efficient instead. Get rid of all the clutter. The more you simplify your life — the more attentive you'll be to what's important. Working hard compensates for lacking money, add an extra flavor to the formula and spend more of your time figuring out how to be more efficient. These are the rules you should always keep in the your back pocket. Lots of others miss out on them and get lost in the clutter — do yourself a favor and remember these, they'll save your butt right from the start. Keep on rocking. [link] [comments]  |
| Business Model Canvas vs Lean Canvas: Which Should You Use? Posted: 09 Feb 2018 12:17 PM PST For decades, it was widely believed that the first step in starting a business was to write a business plan. The thinking was that if you wrote a good enough plan, filled with detailed market research and financial projections, your business was guaranteed to succeed. Typical business plans can exceed 40 pages in length; a significant time investment that may take weeks or months to complete. Not surprisingly, many energetic entrepreneurs lose interest somewhere in the middle of writing it. They give up on their idea and never make any real progress on starting their business. The assumption that entrepreneurs must start with a business plan was challenged and over time, lost popularity. Scholars and successful business people discovered that the presence or level of detail of a business plan is a poor method for determining the success of a business. Hungry entrepreneurs were particularly adamant that business plans were unnecessary. Their argument was time spent writing a plan meant less time engaging customers or building product. New tools that emphasized simplicity and validation emerged and gained popularity. Two of the most popular tools are the Business Model Canvas and the Lean Canvas. Both canvases greatly simplify the business planning process. What used to be a 40+ page document can now be expressed on a single page. While both canvases aim to provide simple effective tools for expressing a business model, some differences exist between them. Each focuses on different content, which entrepreneurs with distinct businesses may find more useful for their purposes. The Business Model CanvasThe Business Model Canvas (BMC) is the original all-on-one-page business planning tool. Alexander Osterwalder invented the canvas based upon research he performed on business model design at the University of Lausanne. Strategyzer manages the canvas and promotes its use in business. The idea was to compress the core elements of a firm's complete business model onto a single sheet of paper. The reduced size and complexity makes the business model simple to comprehend, share, and discuss. Rather than requiring everyone involved in a company to spend hours reading a long business plan, the entire model can be understood in a matter of minutes. It can even be printed on a plotter and posted on the wall, sharing it for everyone to contribute and debate. The Business Model Canvas met with positive response from the business, innovation, and startup communities. The document has become a core tool to startup communities across the world. Courses that teach the Business Model Canvas are taught by both academic and continuing education institutions. Dozens of books, videos, and seminars have been published that teach and expand upon the Business Model Canvas. Due to its popularity, it has become a de-facto communication tool in the Calgary innovation community. Organizations including Startup Calgary, 321 Sales Academy, Calgary Technologies Inc, and the Calgary Innovation Coalition have agreed to use Business Model Canvas as the core component in its programs. The Lean CanvasThe Business Model Canvas is an excellent tool for small businesses employing a known business model. However, the tool has some deficiencies when being applied to a business model that has yet to be validated. For new and unproven business models, some areas of the Business Model Canvas are difficult to determine until product-market fit is established. To address this short coming, Ash Maurya invented the Lean Canvas, drawing upon inspiration from the Business Model Canvas. This version of the canvas is better tailored to startups where may elements are unknown. The Lean Canvas follows a similar concept of capturing the entire business plan on to a single page. Both canvases use a similar nine box layout, and contain several similar topics, such as Customers, Value Proposition, Revenue Model, and Cost Model. Maurya then replaces several of the other boxes, emphasizing product-market fit through the Problem, Solution, and Unfair Advantage boxes. In addition, Maurya also provides a recommended order to the canvas, recommending entrepreneurs address specific boxes first. Differences Between the CanvasesWhile both canvases have similar designs and guidelines for use, a number of noteworthy details differ between them. On the left half of the Lean Canvas, Key Partners, Key Resources, and Key Activities replaces Problem, Solution, and Key Metrics respectively. Instead of focusing on the internal structure and processes of the business, the Lean Canvas prioritizes validation of the problem their target customers are experiencing, what a possible solution would be, and how to measure customer engagement. How the business is designed and operated can be dealt with after product-market fit is established. The right half of both the Business Model Canvas and Lean Canvas are virtually the same. The one difference is that Customer Relationships on the Business Model Canvas is replaced with Unfair Advantage on the Lean Canvas. How a business relates to customers is important, but for new business models, validating how it provides superior value to its customers is fundamental. Too often, startups build product without incorporating features that provide both offensive and defensive competitive advantages. They design their product with an un-validated competitive advantage that does not entice customers to buy. Including Unfair Advantage on the canvas forces business owners to consider how their product is superior to competitors and to validate that customers deeply value that advantage. Another notable difference between the canvases is the use of subheadings. Beneath the Problem, Unique Value Proposition, and Customer Segments headings on the Lean Canvas are subheadings for Existing Alternatives, High-level Concept, and Early Adopters. The inclusion of these subheadings adds a useful level of detail and nuance to the Lean Canvas that the Business Model Canvas lacks. These topics are often overlooked by entrepreneurs who are either too impatient or fearful to identify potential competitors and which customer segments should be approached first for beta tests or initial sales. Which Canvas Should I Use?Both canvases are highly useful for business model design and business planning. However, there are situations where use of one is more appropriate. For new startups, or businesses creating a unique business model, the Lean Canvas is an ideal starting place. By focusing on defining customer problems, existing alternatives, and competitive advantage, its encourages creating a business model that stands apart from competitors while creating customer value. It strips away unnecessary complexities of implementation, which should only be addressed if a candidate value proposition is validated. At that point, founders can use the Business Model Canvas to define the resources and activities necessary to take advantage of the opportunity. If the business model is well-known, or only minor innovation is required, founders may dive right in by using the Business Model Canvas. If the core value proposition is already validated, spending time working through a Lean Canvas may just delay progress of the venture and may not reveal any useful insight. Instead, founders can prioritize validating, or optimizing, the operational aspects of the business. This activity can be particularly useful if a core value driver is lower prices or higher margins that competitors. Regardless of which tool is used, the most important activity with respect to business model planning is to just start. A business model, and the resulting business, will not create and grow itself. Founders must put in effort. Both the Business Model Canvas and the Lean Canvas are useful, low-cost tools. Spending time deciding which to use does not advance the business. Founders must get out of the building and starting building an incredible business. Source: Calgary Startup Guide [link] [comments]  |
| The company (read start-up) is offering me an equity, based on my performance. Posted: 10 Feb 2018 02:01 AM PST I work with a start-up in menswear space. The company is amazing and is growing strong. Having spent long years in the industry, I know the company is talking sense. There are some downs, which bother me as well, truth to be told. I am now being offer equity component as well. I am told, it is being offered, based on my performance. I think they want to hold me for long and perhaps, also trying not to increase my comp much. Should I go for the offer? If yes, how do I know what's good? Thanks in advance for help. [link] [comments]  |
| Exit Strategy for a Small sports club based in India. Posted: 09 Feb 2018 03:26 AM PST Hey, I started a chess club in early 2016 with my friend as a co-founder. Each has a 50% ownership and started with a small investment of less than 1000$ each. But today it has grown to be the best in town for what it does. It's been more than two years now, and I notice that my co-founder's interest and commitment has gone down over the past many months. I felt that it's good to exit right now and do something else. I was expecting to ask for a small compensation while going out, say about 3000$ or something. The venture makes around 1500$ a month in gross income, and a profit of around, say, 1000$ a month. I'm yet to talk to my co-founder about this and I have little experience to go about. It would be a great help if you can share your thoughts. Thank you so much! note: All numbers in USD are actually converted INR. edit: Update based on today' meeting with the other partner. It seems the problem arose because we didn't communicate properly. He said that his family situation had been bad the last few months leading to him not being able to focus on the club. I said I'll think about this again and then we can have another meeting. [link] [comments]  |
| Building an App, OK to use existing LLC for MVP? Posted: 09 Feb 2018 11:29 AM PST First, I own and operate a single employee LLC doing development, consulting, etc. I am the only employee. This LLC is my livelihood bringing in all of my income that my family and I live off of. I am in the process of building an MVP for an app idea I've had for some time now. Ideally I would form a new LLC for the MVP but it's an unproven idea, so I'd rather not waste my energy/time/money. The idea is low risk in terms of lawsuits or other reasons I could get sued, so I thought it would be easiest to utilize my existing LLC until the idea is proven, at which point I'd form a new one. Is there anything I'm missing with this approach or issues that may come up that I'm not anticipating? [link] [comments]  |
| How aggressively should I pursue leads for my new consulting business? Posted: 09 Feb 2018 10:03 AM PST So, I have a number of leads for potential clients for my data engineering consulting business. Right now, 1 seems fairly likely to sign for an initial project, that could be quite big for me and my partners; I have a second prospect (actually for a phone app) that I know how I would staff if I could close that. I then have some more tenuous prospects that I could start to work, who I know are at least interested in theory in doing something if it makes sense. At least 2 of those, one family related, one business contact. My warring concerns are that I don't want to bite off more than I can chew, because all of these are clients that would definitely be repeat business; that is balanced with wanting to actually, definitely have some revenue coming in. Any thoughts? [link] [comments]  |
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