Posts Tagged ‘startup’

Why Entrepreneurs Fail

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Image by bootload via Flickr

Why 99% of Entrepreneurs Fail: Because they don’t do anything.

There are three types of amateur entrepreneurs out there, and in my young life, I’ve been every single one of them. By coming to terms with my failures, I’m more prepared to classify which type of amateur entrepreneur I am, and thus preventing myself from failing in the same way again.

  • Type 1 Amateur Entrepreneur: All ideas, no implementation.
    Let’s admit it. All of us have at some point thought of the brilliant, billion dollar idea. We brainstormed it out, thought about how rich and successful we’d be from having thought of the idea, then dreamt about living lavishly in a penthouse overlooking Central Park with enough money to feed every starving child in Africa. I’ve done it, and I know you have too. The problem lays in the fact that most self-proclaimed entrepreneurs are great at dreaming and envisioning their business idea, yet they lack the capability (and even willpower) needed to see it through. In my honest opinion, these people cannot be considered legitimate entrepreneurs if all they know is dreaming and allocating the task of implementation to others.
  • Type 2 Amateur Entrepreneur: Lots of ideas and half assed implementations.
    These entrepreneurs think of good ideas and have the willpower needed to start working. However, they take the “fail fast” mentality way too far – they’ll launch a prototype of their project, put in almost no effort in getting it noticed, then call it a failure. Or even worse, I know of some entrepreneurs who dedicate months of their time working on a startup idea, but never end up launching. If you’re going to fail, at least make people think that you spent your time semi-wisely. Alternatively, type 2 amateur entrepreneurs have multiple ideas that they’re simultaneously working on, and figure that they’ll get rich from at least one of them. To you and me, this is obviously flawed logic. But at one point, I was a type 2 amateur entrepreneur.

  • Type 3 Amateur Entrepreneur: Lots of ideas, lots of implementations, and absolutely no focus.
    Type 3 entrepreneurs are marginally better than type 1 and 2 combined, but they have absolutely no time for anything other than their work. They make a solid attempt to see their business idea through, but get distracted by the idea of another growth opportunity. I feel bad for these people more than anything – they try harder than both type 1 and 2 entrepreneurs, yet they often see just as devastating results. (and mostly on their psychological well-being)

I usually hang out at #1, maybe once or twice at #2 – never #3 for some reason.

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Rules for Start-ups

I’m not sure who’s article kicked it all off – but I recently found a few all buzzing around the same topic.  It is very interesting to me – because I am involved in a new star-up called “e-Me Ventures” and we discuss some of these things weekly, if not daily!

The first one is by Jason Calacanis and is called “How to save money running a startup (17 really good tips)“.  Jason is known as a good guy, a little “over-the-top” at times and definitely into quality.

I really like #4 and #5:

Don’t buy a phone system. No one will use it. No one at Mahalo has a desk phone except the admin folks. Everyone else is on IRC, chat, and their cell phone. Everyone has a cell phone, folks would rather get calls on it, and 99% of communication is NOT on the phone. Savings? At least $500 a year per person… 50 people over three years? $75-100k

Buy cheap tables and expensive chairs. Tables are a complete rip off. We buy stainless steel restaurant tables that are $100 and $600 Areon chairs. Total cost per workstation? $700. Compare that to buying a $500-$1,500 cube/designer workstation. The chair is the only thing that matters… invest in it.

That article lead me to read this one at Found/Read called “My 10 “Un-Tips” for Starting-Up Right“.  This has a little more fundamental advice.

In the Found/Read article – there was a link to “36 Startup Tips: From Software Engineering to PR and More!“.  This was broken into sections and my favorites were:

 Tip 4: Ask tough questions during the interview
here is nothing worse than being soft during an interview with a prospective employee and hiring the wrong person into the company as a result. This is bad for you, but more importantly bad for the person. In the end you will end up parting ways, but it would be best to just not make this mistake to begin with. So be tough and ask a lot of technical questions during the interview.

Tip 2: Sponsor/attend a few high impact conferences
Tech, SWSX and Defrag are our top picks so far. Make sure there is a fit between the conference and your product. Check out who else is sponsoring, and get feedback and blog posts from last year’s attendees before signing up.

And lastly a post from Mark Cuban called “A Couple of My Rules for Startups” backs up others (plus pokes fun at Jason).

 1. Don’t start a company unless its an obsession and something you love.

2. If you have an exit strategy, its not an obsession.

6. An expresso machine ? Are you kidding me ? Shoot yourself before you spend money on an expresso machine. Coffee is for closers. Sodas are free. Lunch is a chance to get out of the office and talk. There are 24 hours in a day, and if people like their jobs, they will find ways to use as much of it as possible to do their jobs.

11. NEVER EVER EVER hire a PR firm. A PR firm will call or email people in the publications, shows and websites you already watch, listen to and read. Those people publish their emails. Whenever you consume any information related to your field, get the email of the person publishing it and send them an email introducing yourself and the company. Their job is to find new stuff. They will welcome hearing from the founder instead of some PR flack. Once you establish communications with that person, make yourself available to answer their questions about the industry and be a source for them. If you are smart, they will use you.

These are all really good articles.  Really gives you a sense of what people are thinking an how they choose to begin their company.

Everything 2.0

“Everything 2.0″ :: Wow, that about sums it up. I guess our job is done. :)

Seriously, I came across this web page called “Everything 2.0″ was blown away. Although I cannot figure out what “Authority” means (I think it is the metric software they use) – but even if we only look at the unique page view stat – WOW.

The top five start at 350,000+ and go up to 1.2 million. To put that in perspective, that is the approx. number we get in a month on Gazette Online – EACH DAY.

As you scroll down the page – there is some other cool stuff too…just more to think about.

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