| Starting up a new business means taking a dream to | | | | What gets measured gets improved. Start every |
| succeed and throwing yourself into uncertainty and | | | | initiative with objectives and methodology to measure. |
| adversity for 3-5 years. Then, if you get it right, you will | | | | If it meets or exceeds expectations scale it. If it lags |
| become addicted to passion, innovation, and success. | | | | your stated objectives then make immediate |
| This is the objective of sharing these secrets of | | | | adjustments. One of the silent killers of start-ups is |
| success. | | | | complacency in execution. |
| Start with Big Markets | | | | Cut Fast, Scale Fast |
| Big markets are easier to test, attack, and scale to | | | | When you are good at testing and measuring the, next |
| attractive exits. If you are going for venture capital | | | | secret feels natural--cut fast, scale fast. In any start-up, |
| then you automatically have to consider big exits. | | | | self funded or VC funded, you are resource |
| Small or complex B2B markets are challenging. | | | | constrained. That means you do not have the time or |
| Without enormous experience or influence you are | | | | the money to wait for the market to come to you. |
| certain to fail. Generally, the most viable markets are | | | | Create a culture and process that is constantly making |
| direct consumer or emerging markets. Products and | | | | tactical course corrections. |
| services going direct to average consumers allow for | | | | The ultimate advice to an entrepreneur is to fall in love |
| testing and learning in a very large fish bowl of | | | | with no idea, plan, or assumption. |
| opportunity. | | | | Avoid Taking Money at All Cost |
| Find a Friend, A Real Friend | | | | Avoid investor or VC funding as long as possible. This |
| Start-ups are full of stresses, challenges, and problems | | | | may seem unexpected advice, but funding brings on |
| all of which are better handled by teams than | | | | several dangers to a young start-up: |
| individuals. However, make sure that team is correctly | | | | - Dilution |
| balanced. | | | | - Decreased agility |
| Too much high powered experience and you are all | | | | - False sense of comfort |
| show and no go. Too much inexperienced passion and | | | | - Paralyzing fear |
| you are like hamsters on an exercise wheel. A | | | | Once you have taken funding a time bomb begins to |
| start-up team is like a second family, or maybe even a | | | | tick. Investors manage portfolio companies like stocks. |
| first--you had better like each other. | | | | The are constantly re-balancing their risk for maximum |
| Get Ready to Live on Pop-Tarts | | | | performance. Your timeline gets shorter and your |
| Prepare for (hopefully short-term) poverty. The best | | | | hurdles get higher. |
| start-ups are fueled by hunger. Get yourself in a | | | | The longer you wait the more leverage and control |
| financial and mental state to survive during this period. | | | | you will have over your success. And, the bigger your |
| Hunger is good for a business and better for | | | | exit will be. |
| sales--bankruptcy or homelessness is not. | | | | Stay Small |
| Figure out what your minimum livable income is and | | | | Small has so many advantages to a start-up: agility, |
| then try to cut more. Debt elimination is the best | | | | speed, focus, hunger, simplicity. Not to say very |
| start-up preparation. Use your current W-2 | | | | attractive for quick, attractive, accretive exits. |
| employment to build a capital account and practice | | | | Small pertains not only to your company, but to your |
| frugality, before you jump to your start-up 100%. | | | | ideas. Narrow, simple, and focused products and |
| Build Small Tests | | | | services are the quickest to grow. |
| Tests are good. Build lots of small ones. Beta early and | | | | Be Different |
| often. See what concepts and features create | | | | You don't have to (and probably won't be) unique or |
| enthusiasm and which draw criticism or apathy. | | | | first, but you must be different. Having competition is a |
| Don't fall in love with ideas or software. Be willing to | | | | given, maybe even and advantage, it gives consumers |
| relentlessly scrap or archive nonperforming ideas. | | | | and investors a sense of comfort that it is important. |
| Archiving is a highly recommended technique. It is | | | | Now give them the definitely reason to chose you. |
| amazing how many ideas and concepts can be | | | | Say No |
| tweaked and relaunched with amazing | | | | Practice saying no. No to complex partnerships. No to |
| success--becoming more compelling with market | | | | customers with proprietary requests. No to early |
| maturity and technology innovation. | | | | money. No to fear and negativity. |
| Measure and Adjust | | | | |