tag:blogger.com,1999:blog-37678449026633536602024-03-04T23:12:11.426-08:00Entrepreneurial innovationThoughts, topics, events, articles and questions relevant to enhance entrepreneurial innovation.Anonymoushttp://www.blogger.com/profile/08359615102122187053noreply@blogger.comBlogger67125tag:blogger.com,1999:blog-3767844902663353660.post-31503545181548959062016-02-22T03:59:00.000-08:002016-02-22T04:14:27.245-08:00Experienced mentor teams accelerate development in high-tech ventures<div class="MsoNormal" style="text-align: justify;">
<em style="background-color: #fefdfa; color: #5c5c5c; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: 13px; line-height: 18.2px; text-align: start;">By Thomas Klem Andersen, Published on February 22nd 2016</em></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "cambria" , serif; font-size: 12pt;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "cambria" , serif; font-size: 12pt;">During
the past two years <a href="http://sciondtu.dk/">Scion DTU</a> has developed the mentoring program <a href="http://sciondtu.dk/innovation-og-netvaerk-projekter/mentorhjaelp/">Scion TeamMentoring</a> in collaboration with the MIT Venture Mentoring Service (VMS MIT) in
Boston. In Scion Team Mentoring +60 experienced business professionals have helped
37 technology-based companies accelerate their development.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEir2EjQobOJxOlpvZ-CWeykcgESz6COPPM4L0XSUWKoVdVYAjdf87jFTrmAX2CwM-JJDrCx_EyWEVNjKZM1SSAaJo0CI9dz7qde_i_139G1HgOjqkUK8laIxxquWyDRahn-RoZwjujVrzI/s1600/Mentees+februar+2016.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="300" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEir2EjQobOJxOlpvZ-CWeykcgESz6COPPM4L0XSUWKoVdVYAjdf87jFTrmAX2CwM-JJDrCx_EyWEVNjKZM1SSAaJo0CI9dz7qde_i_139G1HgOjqkUK8laIxxquWyDRahn-RoZwjujVrzI/s400/Mentees+februar+2016.png" width="400" /></a></div>
<br />
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "cambria" , serif; font-size: 12.0pt;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "cambria" , serif; font-size: 12.0pt;">The mentor
program differs primarily because an entire team of mentors is involved in each
mentoring session. This model is based on solid experience as MIT VMS has been
around for 16 years and provides mentoring to about 200 entrepreneurs annually
with a mentor network consisting of 180 mentors. One of the reasons that MIT
VMS is the successful mentoring program it is today is the meticulous care
invested in building the mentor network:<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<blockquote class="tr_bq" style="text-align: justify;">
<span style="font-family: "cambria" , serif; font-size: 12pt;">“A key to success for MIT VMS is vetting the
mentors. This involves extensive screening and a rigorous interview with
program executives to ensure they have relevant business experience. They also
have to be willing to, openly collaborate in a team-mentoring environment,
which is quite a foreign concept to almost everybody. People are used to just
one-on-one mentoring”</span> </blockquote>
<blockquote class="tr_bq" style="text-align: justify;">
<span style="font-family: "cambria" , serif; font-size: 12pt;">- Jerome Smith, mentor Co-director to MIT VMS</span></blockquote>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<b><span lang="EN-US" style="font-family: "cambria" , serif; font-size: 12.0pt;">A need for qualified mentoring among
technology-based SMEs<o:p></o:p></span></b></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "cambria" , serif; font-size: 12.0pt;">Scion
DTU's hardware focused environment houses +200 companies. Several of them are
high-tech SMEs, who have placed themselves close to the Technical University of
Denmark in a development environment where innovation is on top of the agenda.
Among these companies, we experience a demand for qualified advice from
experienced business people.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "cambria" , serif; font-size: 12.0pt;">SMEs has
to cover the same tasks as larger companies. No matter the size, someone needs
to be in charge of product development, production, sales, service and
management. If there are only few employees few will have to play several
roles. In addition - high-tech companies are often run by engineers and engineers
are technically very competent, but who do not necessarily have the same business
skills. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "cambria" , serif; font-size: 12.0pt;"><br /></span></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgNZr8IzUxWZ0di9wutWJIfLOVYSj7O4jSgscI7GTs2GpT4W28q60v7dbhNPpAPNqeBnBTnHZtCqXkKnxAYOjPJdu24HVIO3jM48fYxu2GVlwcOh7rW18rEosQXXRilCLRdOk-9igArzH4/s1600/Mentorer.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="268" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgNZr8IzUxWZ0di9wutWJIfLOVYSj7O4jSgscI7GTs2GpT4W28q60v7dbhNPpAPNqeBnBTnHZtCqXkKnxAYOjPJdu24HVIO3jM48fYxu2GVlwcOh7rW18rEosQXXRilCLRdOk-9igArzH4/s320/Mentorer.png" width="320" /></a></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<blockquote class="tr_bq" style="margin-left: 65.2pt; text-align: justify;">
<span lang="EN-US" style="font-family: "cambria" , serif; font-size: 12.0pt;">A fledgling venture is more likely to thrive
when an idea, good business planning, and an entrepreneur are matched with
proven skills and experience</span></blockquote>
<div class="MsoNormal" style="margin-left: 65.2pt; text-align: justify;">
<span style="font-family: "cambria" , serif; font-size: 12pt;">- One of the Core Principles of MIT VMS</span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "cambria" , serif; font-size: 12.0pt;">For the
manager of an SME it can take a while to realize all the tasks needing to be
taken care of in order to build a healthy and sustainable business. When
resources are scarce, and the ones that are available are technically
specialized you need qualified advice within the areas outside your own
expertise. Here is what one of the companies at Scion DTU says:<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<blockquote class="tr_bq" style="margin-left: 65.2pt; text-align: justify;">
<span lang="EN-US" style="font-family: "cambria" , serif; font-size: 12.0pt;">"Our mentoring process has been an amazing journey. To begin with,
I was unsure if growth was possible, and whether or not it was relevant for us
at all. With the mentor teams’ help, we have redesigned the organizational
structure and we have grown 60% within one and a half years. I am now confident
that we are on the right track to secure the future of the company. The
sparring I have received has been a tremendous help!</span> </blockquote>
<blockquote class="tr_bq" style="margin-left: 65.2pt; text-align: justify;">
<span style="font-family: "cambria" , serif; font-size: 12pt;">- Christian Mammen, Director of JJ X-Ray</span></blockquote>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgcX7hhFZQEuYSz7UFU7JGS5-sydBhc_kLY8FIB5wIOojTqVq14Xi-do_PKwQEZU08CE5M3CkpkdcB3ONt-7qe7MP3ZhEEcrFYK4aVd_am3AfDF2-lWJIYMTS_Ay_5wfpqWUgvL8-WJBuU/s1600/MIT+VMS.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="171" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgcX7hhFZQEuYSz7UFU7JGS5-sydBhc_kLY8FIB5wIOojTqVq14Xi-do_PKwQEZU08CE5M3CkpkdcB3ONt-7qe7MP3ZhEEcrFYK4aVd_am3AfDF2-lWJIYMTS_Ay_5wfpqWUgvL8-WJBuU/s400/MIT+VMS.png" width="400" /></a></div>
<br />
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<b><span lang="EN-US" style="font-family: "cambria" , serif; font-size: 12.0pt;">Mentor teams and a comprehensive framework
makes all the difference<o:p></o:p></span></b></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "cambria" , serif; font-size: 12.0pt;">Like MIT
VMS, in the Scion Team Mentoring program we also group mentors in teams for
each company and offer a structured framework for the collaboration between
mentors and mentees.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "cambria" , serif; font-size: 12.0pt;">There are
many advantages to putting mentors together in teams. The challenges of
companies in Scion DTU are diverse and they change quickly. There is rarely one
person who has the answers to all questions a company face. When we put mentors
together in teams with complementary skills, we can offer a competence mix that
can handle multiple challenges. For this reason a mentor team really can accelerate
the development of a technology-based SME.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "cambria" , serif; font-size: 12.0pt;">The composition
of teams can be adjusted on an ongoing basis as the company's challenges
changes. Mentoring does not cease if a mentor exits a team or cannot attend a
meeting, and the meetings themselves become extremely dynamic, as the mentors
have different perspectives on the same issues.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<blockquote class="tr_bq" style="margin-left: 65.2pt; text-align: justify;">
<span lang="EN-US" style="font-family: "cambria" , serif; font-size: 12.0pt;">"Once again a super meeting! Our mentor team contributed with sharp
analyzes of the product, particularly in relation to how the business model can
be improved. It is excellent with a mixed mentor team - we get topics covered from
all angles"</span></blockquote>
<div class="MsoNormal" style="margin-left: 65.2pt; text-align: justify;">
<span style="font-family: "cambria" , serif; font-size: 12pt;">- Gustav Erik Skands, Director of SBT Aqua</span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "cambria" , serif; font-size: 12.0pt;">A mentor
team works somewhat like a flexible advisory board that can offer 360-degree
sparring but without the formal relationship which characterizes an advisory
board or a professional board. We find that a mentor team can help a company avoid
many time-consuming and costly mistakes that can be committed at all stages of
the company life cycle.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjdP6bkQO1KYsRNYGNDNOKI5Zyn2sGD2wtUTIwXVOQU_1Bw9zlADyw4GAqRQmtCs7g73xH3tfgeOsDUZ0bfmo1BOtGZclPTJivvx_grEPJHmY0d7rVJjDWlMs7KP35cR3CkHQuzKteEqSc/s1600/Mentor-proces.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjdP6bkQO1KYsRNYGNDNOKI5Zyn2sGD2wtUTIwXVOQU_1Bw9zlADyw4GAqRQmtCs7g73xH3tfgeOsDUZ0bfmo1BOtGZclPTJivvx_grEPJHmY0d7rVJjDWlMs7KP35cR3CkHQuzKteEqSc/s400/Mentor-proces.png" width="400" /></a></div>
<br />
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "cambria" , serif; font-size: 12.0pt;">It obviously
requires a little extra when coordinating a meeting between this many people
where the mentor competencies has to match the company's challenges. There is a
risk that an otherwise good match between company and mentors doesn’t lead to
anything for the simple reason that both mentors and mentees are too busy to
coordinate meetings, prepare agendas, or write decision summaries.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "cambria" , serif; font-size: 12.0pt;">In Scion
DTU, we take responsibility for the coordination, the structure and the process
of mentoring. We have well described guidelines for companies and mentors, and
we have solid and proven procedures for matchmaking and coordination of
meetings. In this way we ensure effective and valuable mentor meetings for both
companies and mentors. It is important for us that no one is wasting their time.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<b><span lang="EN-US" style="font-family: "cambria" , serif; font-size: 12.0pt;">A strong and committed network of mentors<o:p></o:p></span></b></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "cambria" , serif; font-size: 12.0pt;">We
started from scratch in 2014 and scaled the program gradually to the +60 highly
qualified mentors we are today. MIT VMS stressed that the gradual scaling was
important to ensure the quality of the program. The Mentors in Scion Team
Mentoring are people with solid professional, industry or business experience.
They are serial entrepreneurs who have been there themselves, managers with
years of experience in management, operations and development who understand
what it takes to get a business to thrive. There are specialists in sales,
marketing, legal issues, HR, finance and industry experts within hardware,
cleantech, medtech and life science. </span><span style="font-family: Cambria, serif; font-size: 12pt;">They
can challenge the companies in relation to <a href="https://www.linkedin.com/pulse/abc-value-based-pricing-thomas-klem-andersen?trk=mp-reader-card">pricing</a>, <a href="https://www.linkedin.com/pulse/secret-b2b-selling-thomas-klem-andersen?trk=mp-reader-card">B2B selling</a>, <a href="https://www.linkedin.com/pulse/why-testing-commercial-feasibility-crucial-you-thomas-klem-andersen?trk=mp-reader-card">commercialfeasibility</a> and <a href="https://www.linkedin.com/pulse/why-testing-commercial-feasibility-crucial-you-thomas-klem-andersen?trk=mp-reader-card">market validation</a> among many other things. What is most unique to
our mentor program is that we have mentors who are experienced in product
development and production, which is required for our hardware based companies.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "cambria" , serif; font-size: 12.0pt;">Mentors
in Scion Team Mentoring show great enthusiasm and they create tremendous value
for the companies who participate. The mentors are excited about the
opportunity to offer their experience and thus help SMEs in their development.
Of course it is also exciting for mentors, to keep abreast of new technologies
that are emerging in the industrial growth layer and they expanding their
network by meeting other mentors in the respective mentor teams they are part
of.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<blockquote class="tr_bq" style="margin-left: 65.2pt; text-align: justify;">
<span lang="EN-US" style="font-family: "cambria" , serif; font-size: 12.0pt;">"You get really inspired by the energy of startups. They must have
more than 24 hours in their day. I can bring that energy with me back into the
large corporation where I work: Well of course we take the US market in a year!
Conversely, I can help the startups become a little more realistic in their
approach to the market. Their energy has to transform into concrete results –
it shouldn’t be exhausted in a blaze, just because it's fun to run fast"</span> </blockquote>
<blockquote class="tr_bq" style="margin-left: 65.2pt; text-align: justify;">
<span style="font-family: "cambria" , serif; font-size: 12pt;">-Dorte Thulstrup, Regulatory Affairs Manager at Phillips Healthcare</span></blockquote>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<br />
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "cambria" , serif; font-size: 12.0pt;">We look
forward to setting the stage for even more mentoring for high tech companies in
2016!<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "cambria" , serif; font-size: 12.0pt;"><br /></span></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjq1psLnBqJrFfUGGlTgcwz0ADoXNpZEbhVXcm3xgtPaG2-hdbmOqpFoJ3ofwO_lOmxp5yKWffVJg7x336GSUfOCz4LBoCq6xot5InV6MODH7Xp27wW9hG0ritbcWB90SVEaCGUoYEvPSY/s1600/Scion+Team+Mentoring+med+Scion+logo.PNG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjq1psLnBqJrFfUGGlTgcwz0ADoXNpZEbhVXcm3xgtPaG2-hdbmOqpFoJ3ofwO_lOmxp5yKWffVJg7x336GSUfOCz4LBoCq6xot5InV6MODH7Xp27wW9hG0ritbcWB90SVEaCGUoYEvPSY/s1600/Scion+Team+Mentoring+med+Scion+logo.PNG" /></a></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US" style="font-family: "cambria" , serif; font-size: 12.0pt;"><br /></span></div>
Anonymoushttp://www.blogger.com/profile/08359615102122187053noreply@blogger.com0tag:blogger.com,1999:blog-3767844902663353660.post-43802034072208147212015-12-04T05:58:00.001-08:002016-02-22T04:42:45.200-08:00The secret to succesful B2B selling<div style="line-height: normal; margin: 0cm 0cm 0pt;">
<span style="font-size: 14.6667px;">By Thomas Klem Andersen, December 4th 2015</span><br />
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-size: 11.0pt; mso-ansi-language: EN-US;"><br /></span></b>
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-size: 11.0pt; mso-ansi-language: EN-US;">Explain
why it matters</span></b></div>
<div style="line-height: normal; margin: 0cm 0cm 0pt;">
<span lang="EN-US" style="font-size: 11.0pt; mso-ansi-language: EN-US;">It’s often a challenge to
explain what we do and why it matters to people. When it comes to our selves we
tend to focus on function/role and when it comes to our products we tend to
focus on features and we forget to explain why those are super interesting.
Variations on this refrain is “I’m an accountant…” or “This computer has 1,2
GHz…”. Boring right? What you are really selling is the value that this role or
these features provides. They will let you do something cheaper, faster,
smarter, different, less, etc.</span></div>
<div style="line-height: normal; margin: 0cm 0cm 0pt;">
<br /></div>
<div style="line-height: normal; margin: 0cm 0cm 0pt;">
<span lang="EN-US" style="font-size: 11.0pt; mso-ansi-language: EN-US;">The product itself is not
interesting to people. More often than not, they will be too busy or too
absorbed in habitual ways of doing things to bother listen to you.</span><br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjwQX54ZEWJRW6wmZ-EgSO2VG-7MKFr94a1Hwp9QbdWZx72UlpCiDChfuNWXwXqYzK0YcmrqxlOznq5a_wawvAKteGfOhCkQNrZkykQ7VNdzPxFkhVYDdcoNzybpSI79wDQ12RuI7sAQQI/s1600/Machine-Gun-Salesman-001-1024x745.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="290" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjwQX54ZEWJRW6wmZ-EgSO2VG-7MKFr94a1Hwp9QbdWZx72UlpCiDChfuNWXwXqYzK0YcmrqxlOznq5a_wawvAKteGfOhCkQNrZkykQ7VNdzPxFkhVYDdcoNzybpSI79wDQ12RuI7sAQQI/s400/Machine-Gun-Salesman-001-1024x745.jpg" width="400" /></a></div>
<br /></div>
<div style="line-height: normal; margin: 0cm 0cm 0pt;">
<span lang="EN-US" style="font-size: 11.0pt; mso-ansi-language: EN-US;">Your target customer doesn’t
care if your fancy plate is round or square as long as it is full!</span></div>
<div style="line-height: normal; margin: 0cm 0cm 0pt;">
<br /></div>
<div style="line-height: normal; margin: 0cm 0cm 0pt;">
<span lang="EN-US" style="font-size: 11.0pt; mso-ansi-language: EN-US;">You need to convince your potential
customer that the ground is burning underneath her feet and that you can provide
a preferred alternative! </span></div>
<div style="line-height: normal; margin: 0cm 0cm 0pt;">
<br /></div>
<div style="line-height: normal; margin: 0cm 0cm 0pt;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-size: 11.0pt; mso-ansi-language: EN-US;">Help
your customer to succeed</span></b></div>
<div style="line-height: normal; margin: 0cm 0cm 0pt;">
<span lang="EN-US" style="font-size: 11.0pt; mso-ansi-language: EN-US;">You don’t want to let your
selling proces be driven by hunger or neediness. You don’t want it to to be
driven by manipulation either, which might happen if your main focus is you and
how you’ll meet your sales KPI´s. Rather your selling process should be driven
by your ambition to help your customers to success. If that is your outset your
sales meetings will be about the customer, the customer’s needs and whether
your solution might be the right one to help your customer meet them. Your
meetings will be much more calm and honest. You’ll earn more and feel better at
the same time.</span></div>
<div style="line-height: normal; margin: 0cm 0cm 0pt;">
<br /></div>
<div style="line-height: normal; margin: 0cm 0cm 0pt;">
<span lang="EN-US" style="font-size: 11.0pt; mso-ansi-language: EN-US;">Your primary initial objective
will be to ask your customer to help you help them by clarifying their needs. <span style="mso-spacerun: yes;"> </span></span></div>
<div style="line-height: normal; margin: 0cm 0cm 0pt;">
<br /></div>
<div style="line-height: normal; margin: 0cm 0cm 0pt;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-size: 11.0pt; mso-ansi-language: EN-US;">Spend
your time well and involve the right people</span></b></div>
<div style="line-height: normal; margin: 0cm 0cm 0pt;">
<span lang="EN-US" style="font-size: 11.0pt; mso-ansi-language: EN-US;">Let’s get into the nitty gritty
of the actual sales process. So you have the customer meeting scheduled… It’s
important that you stay in control of the process. This is the trick to close
the deal.</span></div>
<div style="line-height: normal; margin: 0cm 0cm 0pt;">
<br /></div>
<div style="line-height: normal; margin: 0cm 0cm 0pt;">
<span lang="EN-US" style="font-size: 11.0pt; mso-ansi-language: EN-US;">In order to do this you should
divide the customer meeting in two. On the first meeting you talk to the
stakeholder who owns a particular problem and on the second meeting you present
your solution to the problem owner AND the decision maker!</span></div>
<div style="line-height: normal; margin: 0cm 0cm 0pt;">
<br /></div>
<div style="line-height: normal; margin: 0cm 0cm 0pt;">
<span lang="EN-US" style="font-size: 11.0pt; mso-ansi-language: EN-US;">On the first meeting you go
through two phases: </span></div>
<div style="line-height: normal; margin: 0cm 0cm 0pt;">
<br /></div>
<div style="line-height: normal; margin: 0cm 0cm 0pt;">
<span lang="EN-US" style="font-size: 11.0pt; mso-ansi-language: EN-US;">1. The gentleman’s phase</span></div>
<div style="line-height: normal; margin: 0cm 0cm 0pt;">
<span lang="EN-US" style="font-size: 11.0pt; mso-ansi-language: EN-US;">Like a true gentleman you
honsetly present yourself but without neglecting your merits. This is when you establish
trust and earn your position as potential partner. You make it clear to your
customer that you are here to help them:</span></div>
<div style="line-height: normal; margin: 0cm 0cm 0pt;">
<br /></div>
<div style="line-height: normal; margin: 0cm 0cm 0pt 65.2pt;">
<i style="mso-bidi-font-style: normal;"><span lang="EN-US" style="font-size: 11.0pt; mso-ansi-language: EN-US;">”My ambition today is in colaboration with you to
assess what the right solution is for your company. To this aim I’d like to begin
with asking a few questions. Is that alright with you?”</span></i></div>
<div style="line-height: normal; margin: 0cm 0cm 0pt;">
<br /></div>
<div style="line-height: normal; margin: 0cm 0cm 0pt;">
<span lang="EN-US" style="font-size: 11.0pt; mso-ansi-language: EN-US;">1.1 The opportunity phase </span></div>
<div style="line-height: normal; margin: 0cm 0cm 0pt;">
<span lang="EN-US" style="font-size: 11.0pt; mso-ansi-language: EN-US;">The questions you ask you can
structure in accordance with the CORE model: </span></div>
<ul style="direction: ltr; list-style-type: disc;">
<li style="color: black; font-family: "Arial",sans-serif; font-size: 11pt; font-style: normal; font-weight: normal;"><div style="color: black; font-family: "Arial",sans-serif; font-size: 10pt; font-style: normal; font-weight: normal; line-height: normal; margin-bottom: 0pt; margin-top: 0cm; mso-list: l0 level1 lfo2;">
<b style="mso-bidi-font-weight: normal;"><span style="font-size: 11.0pt;">C</span></b><span style="font-size: 11.0pt;">ontext: Get
the big picture and start a dialogue about relevant problem areas.</span></div>
</li>
<li style="color: black; font-family: "Arial",sans-serif; font-size: 11pt; font-style: normal; font-weight: normal;"><div style="color: black; font-family: "Arial",sans-serif; font-size: 10pt; font-style: normal; font-weight: normal; line-height: normal; margin-bottom: 0pt; margin-top: 0cm; mso-list: l0 level1 lfo2;">
<b style="mso-bidi-font-weight: normal;"><span style="font-size: 11.0pt;">O</span></b><span style="font-size: 11.0pt;">bstructions:
Explore potential problems and evaluate whether the problems that you can
provide solutions for are present. What are the related costs?</span></div>
</li>
<li style="color: black; font-family: "Arial",sans-serif; font-size: 11pt; font-style: normal; font-weight: normal;"><div style="color: black; font-family: "Arial",sans-serif; font-size: 10pt; font-style: normal; font-weight: normal; line-height: normal; margin-bottom: 0pt; margin-top: 0cm; mso-list: l0 level1 lfo2;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-size: 11.0pt; mso-ansi-language: EN-US;">R</span></b><span lang="EN-US" style="font-size: 11.0pt; mso-ansi-language: EN-US;">esults: Determine
the specific consequences of the identified problems.</span></div>
</li>
<li style="color: black; font-family: "Arial",sans-serif; font-size: 11pt; font-style: normal; font-weight: normal;"><div style="color: black; font-family: "Arial",sans-serif; font-size: 10pt; font-style: normal; font-weight: normal; line-height: normal; margin-bottom: 0pt; margin-top: 0cm; mso-list: l0 level1 lfo2;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-size: 11.0pt; mso-ansi-language: EN-US;">E</span></b><span lang="EN-US" style="font-size: 11.0pt; mso-ansi-language: EN-US;">xpressed Needs: Let
the customer confirm that it would be valuable to solve the problem. </span></div>
</li>
</ul>
<div style="line-height: normal; margin: 0cm 0cm 0pt;">
<br /></div>
<div style="line-height: normal; margin: 0cm 0cm 0pt;">
<span lang="EN-US" style="font-size: 11.0pt; mso-ansi-language: EN-US;">Nice and slowly you build a
business case and get your customer to describe a problem for which you can
offer a valuable solution. </span></div>
<div style="line-height: normal; margin: 0cm 0cm 0pt;">
<br /></div>
<div style="line-height: normal; margin: 0cm 0cm 0pt;">
<span lang="EN-US" style="font-size: 11.0pt; mso-ansi-language: EN-US;">Your success criteria is to
schedule a second meeting where the key decision makers can participate. This
second meeting is crucial, because a written proposal or a telephone
conversation can easily give rise to misunderstandings and jeopardize the
communication at a critical stage.</span></div>
<div style="line-height: normal; margin: 0cm 0cm 0pt;">
<br /></div>
<div style="line-height: normal; margin: 0cm 0cm 0pt 65.2pt;">
<i style="mso-bidi-font-style: normal;"><span style="font-size: 11.0pt;">”I won’t send
you a written proposal, but I will prepare a presentation for you and others
who will have to take part in this decision. </span></i><i style="mso-bidi-font-style: normal;"><span lang="EN-US" style="font-size: 11.0pt; mso-ansi-language: EN-US;">It’s
an important decision and we need to make sure that it make the right one.” </span></i></div>
<div style="line-height: normal; margin: 0cm 0cm 0pt;">
<br /></div>
<div style="line-height: normal; margin: 0cm 0cm 0pt;">
<span lang="EN-US" style="font-size: 11.0pt; mso-ansi-language: EN-US;">The mindset you’ll need to
have in order to secure this second meeting is that you are both equally important
partners in a negotiation and therefore you need to frame it accordingly. They
need to comit as do you. </span><span style="font-size: 11.0pt;">Your time is
equally valuable. </span></div>
<div style="line-height: normal; margin: 0cm 0cm 0pt;">
<br /></div>
<div style="line-height: normal; margin: 0cm 0cm 0pt 65.2pt;">
<i style="mso-bidi-font-style: normal;"><span lang="EN-US" style="font-size: 11.0pt; mso-ansi-language: EN-US;">”At this point we also need something from you… We
need a ”go” from your boss or whoever will have to make the final decision,
that your company is interested in seeing a solution proposal for this
particular problem.”</span></i></div>
<div style="line-height: normal; margin: 0cm 0cm 0pt;">
<br /></div>
<div style="line-height: normal; margin: 0cm 0cm 0pt;">
<span lang="EN-US" style="font-size: 11.0pt; mso-ansi-language: EN-US;">If it is not possible to have
the decision maker at this second meeting you need to seriously consider if you
want to buy this lottery ticket by sending a proposal or spend your time
somewhere else. This of course depends on how many interesting leads you have. </span></div>
<div style="line-height: normal; margin: 0cm 0cm 0pt;">
<br /></div>
<div style="line-height: normal; margin: 0cm 0cm 0pt 65.2pt;">
<i style="mso-bidi-font-style: normal;"><span lang="EN-US" style="font-size: 11.0pt; mso-ansi-language: EN-US;">”What is holding you back from saying yes to this? …so
if we can fix this such and such will you arrange the meeting or buy the solution?”</span></i></div>
<div style="line-height: normal; margin: 0cm 0cm 0pt;">
<br /></div>
<div style="line-height: normal; margin: 0cm 0cm 0pt;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-size: 11.0pt; mso-ansi-language: EN-US;">Respect
the three essential principles of selling</span></b></div>
<div style="line-height: normal; margin: 0cm 0cm 0pt;">
<span lang="EN-US" style="font-size: 11.0pt; mso-ansi-language: EN-US;">Thoughout this entire process,
in order to to sell well, you need to keep an eye on three essential
principples for selling. These are the fire triangle of selling:</span></div>
<div style="line-height: normal; margin: 0cm 0cm 0pt;">
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhwkgLuEc_fMfuBpoknZpvHyu2MaueluewWDWzlniYcdj1gkvMAFw2xaa2Yc8yOCNuA1_1h1UILuo_iLnTj01a-PxjTVUnkPKPS587cysDgyf_75pSEfhmm5rFaToVcS0QndQvgCXYoS9A/s1600/Fire+triangle+of+selling.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="290" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhwkgLuEc_fMfuBpoknZpvHyu2MaueluewWDWzlniYcdj1gkvMAFw2xaa2Yc8yOCNuA1_1h1UILuo_iLnTj01a-PxjTVUnkPKPS587cysDgyf_75pSEfhmm5rFaToVcS0QndQvgCXYoS9A/s400/Fire+triangle+of+selling.png" width="400" /></a></div>
<br /></div>
<div style="line-height: normal; margin: 0cm 0cm 0pt;">
<span lang="EN-US" style="font-size: 11.0pt; mso-ansi-language: EN-US;">With all this in mind, you
should consider inverting the traditional sales process. Traditionally you
spend the most time presenting your product and closing the deal. With the
explorative mindset described above in which the ambition is to help your
customer to success you’ll have to divide your time like this and in the
following order: Introducing (40%), exploring (30%), presenting (20%), closing
(10%). </span></div>
<div style="line-height: normal; margin: 0cm 0cm 0pt;">
<br /></div>
<div style="line-height: normal; margin: 0cm 0cm 0pt;">
<span lang="EN-US" style="font-size: 11.0pt; mso-ansi-language: EN-US;">Now go help your costumers be successful!</span></div>
Anonymoushttp://www.blogger.com/profile/08359615102122187053noreply@blogger.com0tag:blogger.com,1999:blog-3767844902663353660.post-3102805124257718222015-10-26T08:09:00.000-07:002015-10-26T08:09:52.409-07:00The ABC of value based pricing<div class="MsoNormal">
<a href="https://www.blogger.com/null" name="_GoBack"></a><b><span lang="EN-US">Value based pricing<o:p></o:p></span></b></div>
<div class="MsoNormal">
<span lang="EN-US">Last week <a href="https://www.linkedin.com/profile/view?id=AAkAAAAMSsMBT0gQQL1FOGZV2jyJwdEUUoImGFU&authType=NAME_SEARCH&authToken=4hqi&locale=en_US&trk=tyah&trkInfo=clickedVertical%3Amynetwork%2CclickedEntityId%3A805571%2CauthType%3ANAME_SEARCH%2Cidx%3A1-1-1%2CtarId%3A1445870472804%2Ctas%3Acasper%20m%C3%B8nsted">Casper Mønsted</a>
from <a href="http://incentive.dk/">Incentive</a> gave a really interesting
talk on pricing and offered 1:1 coaching on pricing issues for the participants
in <a href="http://sciondtu.dk/danish-tech-challenge/">Danish Tech Challenge</a>.<o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-US"><br /></span></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiYJCAhDc_eVebmrX1WmtAf6NRwFYmFr7dtNbD6WvqVsIJFhOs9G9qrbpU3CmKlJZgauUVlWRaG9YnpGa85SdhZ_UB1rqy57oVdLweocj7I_GcAXI1t5LKIJyCiCqE7In3c_v7jPcL4dWo/s1600/097.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiYJCAhDc_eVebmrX1WmtAf6NRwFYmFr7dtNbD6WvqVsIJFhOs9G9qrbpU3CmKlJZgauUVlWRaG9YnpGa85SdhZ_UB1rqy57oVdLweocj7I_GcAXI1t5LKIJyCiCqE7In3c_v7jPcL4dWo/s320/097.JPG" width="320" /></a></div>
<div class="MsoNormal">
<span lang="EN-US"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-US"> <o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-US">Here’s what I took with me from his talk:<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US">You need to consider four aspects when pricing
your product or service. <o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoListParagraphCxSpFirst" style="text-indent: -18pt;">
<!--[if !supportLists]--><span lang="EN-US">1.<span style="font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span lang="EN-US">The
pricing strategy (which is the overall price model)<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="text-indent: -18pt;">
<!--[if !supportLists]--><span lang="EN-US">2.<span style="font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span lang="EN-US">Optimizing
the price (basing the price on experienced value, price differentiation, price
regulation and estimating the experienced value for customers)<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="text-indent: -18pt;">
<!--[if !supportLists]--><span lang="EN-US">3.<span style="font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span lang="EN-US">The
pricing processes (control and monitoring, definition of roles and responsibilities)<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpLast" style="text-indent: -18pt;">
<!--[if !supportLists]--><span lang="EN-US">4.<span style="font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span lang="EN-US">Realizing
the price (mapping and optimization of discounts and discount policies)<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US">There are three basic ways of determining your
pricing: <o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<br /></div>
<table border="1" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: none; mso-border-alt: solid windowtext .5pt; mso-padding-alt: 0cm 5.4pt 0cm 5.4pt; mso-yfti-tbllook: 1184;">
<tbody>
<tr>
<td style="background: #B3E7FF; border: solid windowtext 1.0pt; mso-background-themecolor: accent1; mso-background-themetint: 51; mso-border-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 40.85pt;" valign="top" width="54">
<div class="MsoNormal">
<br /></div>
</td>
<td style="background: #B3E7FF; border-left: none; border: solid windowtext 1.0pt; mso-background-themecolor: accent1; mso-background-themetint: 51; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 134.65pt;" valign="top" width="180">
<div align="center" class="MsoNormal" style="text-align: center;">
<b><span lang="EN-US">Cost based<o:p></o:p></span></b></div>
</td>
<td style="background: #B3E7FF; border-left: none; border: solid windowtext 1.0pt; mso-background-themecolor: accent1; mso-background-themetint: 51; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 5.0cm;" valign="top" width="189">
<div align="center" class="MsoNormal" style="text-align: center;">
<b><span lang="EN-US">Competition based<o:p></o:p></span></b></div>
</td>
<td style="background: #B3E7FF; border-left: none; border: solid windowtext 1.0pt; mso-background-themecolor: accent1; mso-background-themetint: 51; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 141.05pt;" valign="top" width="188">
<div align="center" class="MsoNormal" style="text-align: center;">
<b><span lang="EN-US">Value based<o:p></o:p></span></b></div>
</td>
</tr>
<tr>
<td style="background: #B3E7FF; border-top: none; border: solid windowtext 1.0pt; mso-background-themecolor: accent1; mso-background-themetint: 51; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 40.85pt;" valign="top" width="54">
<div class="MsoNormal">
<b><span lang="EN-US">Pros<o:p></o:p></span></b></div>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 134.65pt;" valign="top" width="180">
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US">Easy to calculate<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US">Avoids loss on products<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 5.0cm;" valign="top" width="189">
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US">Easy to estimate<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US">Secures competitive prices<o:p></o:p></span></div>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 141.05pt;" valign="top" width="188">
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US">Maximizes profit<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="background: #B3E7FF; border-top: none; border: solid windowtext 1.0pt; mso-background-themecolor: accent1; mso-background-themetint: 51; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 40.85pt;" valign="top" width="54">
<div class="MsoNormal">
<b><span lang="EN-US">Cons<o:p></o:p></span></b></div>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 134.65pt;" valign="top" width="180">
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US">Doesn’t leverage knowledge about the customer<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US">Doesn’t leverage knowledge about competitors<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US">Doesn’t maximize profit<o:p></o:p></span></div>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 5.0cm;" valign="top" width="189">
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US">Doesn’t leverage knowledge about the customer<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US">Doesn’t maximize profit<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 141.05pt;" valign="top" width="188">
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US">Can be complex<o:p></o:p></span></div>
</td>
</tr>
</tbody></table>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US">According to Casper Mønsted value based pricing
should always be preferred. Otherwise you risk cheating yourself. The value you
provide might be much greater than the price you take and the cost of
production.<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US">To base your price on value you have to understand
the value you are creating for your customers. And your customers might be
diverse and experience different value from your product, which is why you
should consider differentiating your pricing.<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US">Compared to cost based pricing where the price
is calculated on the basis of the cost of production value based pricing is
calculated from the perspective of the experienced value of the customer.<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b><span lang="EN-US">Price differentiation:
Can you put a price on water?<o:p></o:p></span></b></div>
<div class="MsoNormal">
<span lang="EN-US">A simple example is the price of water which
varies dramatically when comparing tab water, water bought at a super market (AquAdor)
as opposed to 7-eleven (Kildevæld) or a five star restaurant (bling H2O).<o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-US"><br /></span></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjakmWRzMZju2g_RtYHfbbGMaY7IKTUkHE_3OVIAWJw-NPAdocLCQnJVIJNSENAynwXNRSXXQm7OsavP3zK71M2RAM0ykYz3W1Ke_QupR7Keu-KFM0nituhdO0CR7nd8m6H7UaHPP8Xz6Q/s1600/Price+on+water.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="239" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjakmWRzMZju2g_RtYHfbbGMaY7IKTUkHE_3OVIAWJw-NPAdocLCQnJVIJNSENAynwXNRSXXQm7OsavP3zK71M2RAM0ykYz3W1Ke_QupR7Keu-KFM0nituhdO0CR7nd8m6H7UaHPP8Xz6Q/s320/Price+on+water.jpg" width="320" /></a></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-US">Another illustrative example of price
differentiation is Microsofts office package which are sold in three different
packagings with different prices (home&student, home&office,
professional) but with the same costs of production. The experienced value is
different because many companies can’t do without the office package but
private persons can.<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US">A small feature change can mean a significant
value leap that some customers are willing to pay for. A good example for this
is the Weber charcoal grill which can be bought in two versions the budget
model without ash tray and premium model with ash tray. This is a small
difference in cost of production, which creates a value difference that makes
tangible price differentiation possible ($100 vs. $150).<o:p></o:p></span></div>
<div class="separator" style="clear: both; text-align: center;">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgm_6kg9-iAkNabnKkcZYA8vJkOK8KnOL-x0Oz1Fqv41Na_qdToE7k28n77rpIoACAi4uWfjPD5EA_72i9GTKTFnXxuZo0qJ3Ir9Nbr6w8cU5bIvhG976WjuFdYC89Mo6g08HYcWl_zKAk/s1600/Weber+char+coal+grill+with+ash+tray.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgm_6kg9-iAkNabnKkcZYA8vJkOK8KnOL-x0Oz1Fqv41Na_qdToE7k28n77rpIoACAi4uWfjPD5EA_72i9GTKTFnXxuZo0qJ3Ir9Nbr6w8cU5bIvhG976WjuFdYC89Mo6g08HYcWl_zKAk/s1600/Weber+char+coal+grill+with+ash+tray.jpg" /></a></div>
<br />
<div class="MsoNormal">
<span lang="EN-US"><br /></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b><span lang="EN-US">The ABC of value based
pricing<o:p></o:p></span></b></div>
<div class="MsoListParagraphCxSpFirst" style="text-indent: -18pt;">
<!--[if !supportLists]--><span lang="EN-US">1.<span style="font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span lang="EN-US">Identify
the advantages of your product from the customers perspective.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="text-indent: -18pt;">
<!--[if !supportLists]--><span lang="EN-US">2.<span style="font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span lang="EN-US">Estimate
the value of the advantages.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="text-indent: -18pt;">
<!--[if !supportLists]--><span lang="EN-US">3.<span style="font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span lang="EN-US">Set
the price so that the value of the advanteges exceeds the price.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="text-indent: -18pt;">
<!--[if !supportLists]--><span lang="EN-US">4.<span style="font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span lang="EN-US">Repeat
1-3 for different customer segments.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpLast">
<br /></div>
<div class="MsoNormal">
<b><span lang="EN-US">What you need to do to
master value based pricing:<o:p></o:p></span></b></div>
<div class="MsoListParagraphCxSpFirst" style="text-indent: -18pt;">
<!--[if !supportLists]--><span lang="EN-US" style="font-family: Symbol; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span lang="EN-US">Map
out what your customers are willing to pay<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="text-indent: -18pt;">
<!--[if !supportLists]--><span lang="EN-US" style="font-family: Symbol; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span lang="EN-US">Ask
your customers in surveys<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="text-indent: -18pt;">
<!--[if !supportLists]--><span lang="EN-US" style="font-family: Symbol; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span lang="EN-US">Know
the value drivers of your product and map the value creation<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<span lang="EN-US">Are the value drivers of your
product delivery time, quick service after purchase, warranty, service and
support prior to purchase, high reliability, low noise level, product
aesthetics (visual design), the possibility to buy add-on service, low energy
consumption size and dimensions? <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="text-indent: -18pt;">
<!--[if !supportLists]--><span lang="EN-US" style="font-family: Symbol; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span lang="EN-US">Calculate
the cost reductions your product makes possible<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="text-indent: -18pt;">
<!--[if !supportLists]--><span lang="EN-US" style="font-family: Symbol; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span lang="EN-US">Analyze
sales data<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="text-indent: -18pt;">
<!--[if !supportLists]--><span lang="EN-US" style="font-family: Symbol; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span lang="EN-US">Ask
distributors or industry experts<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpLast">
<br /></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b><span lang="EN-US">As yourself the
following questions:<o:p></o:p></span></b></div>
<div class="MsoListParagraph" style="text-indent: -18pt;">
<!--[if !supportLists]--><span lang="EN-US" style="font-family: Symbol; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span lang="EN-US">What’s
my product? (remember service), know the value drivers, remember the entire
package (incl. service)<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoListParagraph" style="text-indent: -18pt;">
<!--[if !supportLists]--><span lang="EN-US" style="font-family: Symbol; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span lang="EN-US">Who
are my competitors? How’s your product different from theirs, how do they price
their products? How will they respond to your pricing?<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoListParagraph" style="text-indent: -18pt;">
<!--[if !supportLists]--><span lang="EN-US" style="font-family: Symbol; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span lang="EN-US">Who
are my customers? Does your product deliver different value to different
customer segments? Can this be used for price differentiation? <o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoListParagraph" style="text-indent: -18pt;">
<!--[if !supportLists]--><span lang="EN-US" style="font-family: Symbol; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span lang="EN-US">Will
my price be experienced as fair? Can you explain your pricing? Which reference
price do your customers have?<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b>Price differentiation</b><b> </b></div>
<table border="1" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: none; mso-border-alt: solid windowtext .5pt; mso-padding-alt: 0cm 5.4pt 0cm 5.4pt; mso-yfti-tbllook: 1184;">
<tbody>
<tr>
<td style="background: #B3E7FF; border: solid windowtext 1.0pt; mso-background-themecolor: accent1; mso-background-themetint: 51; mso-border-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 114.55pt;" valign="top" width="153">
<div class="MsoNormal">
<br /></div>
</td>
<td style="background: #B3E7FF; border-left: none; border: solid windowtext 1.0pt; mso-background-themecolor: accent1; mso-background-themetint: 51; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 114.55pt;" valign="top" width="153">
<div class="MsoNormal">
<b><span lang="EN-US">Premium<o:p></o:p></span></b></div>
</td>
<td style="background: #B3E7FF; border-left: none; border: solid windowtext 1.0pt; mso-background-themecolor: accent1; mso-background-themetint: 51; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 114.6pt;" valign="top" width="153">
<div class="MsoNormal">
<b><span lang="EN-US">Standard<o:p></o:p></span></b></div>
</td>
<td style="background: #B3E7FF; border-left: none; border: solid windowtext 1.0pt; mso-background-themecolor: accent1; mso-background-themetint: 51; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 114.6pt;" valign="top" width="153">
<div class="MsoNormal">
<b><span lang="EN-US">Budget<o:p></o:p></span></b></div>
</td>
</tr>
<tr>
<td style="background: #B3E7FF; border-top: none; border: solid windowtext 1.0pt; mso-background-themecolor: accent1; mso-background-themetint: 51; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 114.55pt;" valign="top" width="153">
<div class="MsoNormal">
<b><span lang="EN-US">Characteristics<o:p></o:p></span></b></div>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 114.55pt;" valign="top" width="153">
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US">All inclusive<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US">Few people buy this, but the package exists
as an anchor and benchmark for the price you actually want people to pay.<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 114.6pt;" valign="top" width="153">
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US">The typical package<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US">The package you want people to buy<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US">Has to have the most important features<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 114.6pt;" valign="top" width="153">
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US">Low fidelity<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US">There are good reasons to choose the standard
model<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
</td>
</tr>
<tr>
<td style="background: #B3E7FF; border-top: none; border: solid windowtext 1.0pt; mso-background-themecolor: accent1; mso-background-themetint: 51; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 114.55pt;" valign="top" width="153">
<div class="MsoNormal">
<b><span lang="EN-US">Price ratio<o:p></o:p></span></b></div>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 114.55pt;" valign="top" width="153">
<div class="MsoNormal">
<span lang="EN-US">15<o:p></o:p></span></div>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 114.6pt;" valign="top" width="153">
<div class="MsoNormal">
<span lang="EN-US">5<o:p></o:p></span></div>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 114.6pt;" valign="top" width="153">
<div class="MsoNormal">
<span lang="EN-US">3<o:p></o:p></span></div>
</td>
</tr>
</tbody></table>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US">When differentiating price always create the
reference for comparison yourself, otherwise your customers will find one
themselves, and that one you can’t control. And make sure that the price your
customers see first is the premium price, so that becomes the anchor and
benchmark for your lower prices. <o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US">Pricing is important for any business. Give it
the consideration it deserves and price it smart!<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<br />
<div class="MsoNormal">
<br /></div>
Anonymoushttp://www.blogger.com/profile/08359615102122187053noreply@blogger.com0tag:blogger.com,1999:blog-3767844902663353660.post-74275348380933489692015-09-28T00:42:00.000-07:002015-10-02T06:19:40.196-07:00Prototyping -what and how?<div class="MsoNormal">
<em style="background-color: #fefdfa; color: #5c5c5c; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: 13px; line-height: 18.2px;">By Thomas Klem Andersen, Published on september 28th 2015</em></div>
<div class="MsoNormal">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11.0pt; mso-ansi-language: EN-US;"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11.0pt; mso-ansi-language: EN-US;">Last week <a href="http://www.skylab.dtu.dk/">DTU Skylab</a> hosted an inspiring event on prototyping. Here are
some insights that helped me wrap my head aorund the concept.<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11.0pt; mso-ansi-language: EN-US;">We so often get sucked into the trance of specifications and feature
building forgetting actual user needs in the process. Engineers tend to
build maximum viable products before testing them in the market and thereby
risk building products that no one will ever use.<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11.0pt; mso-ansi-language: EN-US;">Instead you should ask yourselves: What’s the least we can do to satisfy
people using only the most needed features? That will be your <a href="https://en.wikipedia.org/wiki/Minimum_viable_product">minimum viable product</a> (MVP). You need to identify what it is you want to validate and then
focus on that. What is the least we can do in order to validate the most
critical assumptions of our value proposition? Next you find the people having
the need our are building a solution for and go test whether you are actually
solving their problem.<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11.0pt; mso-ansi-language: EN-US;"><img src="http://www.boardofinnovation.com/wp-content/uploads/2013/04/paperprotoyping.jpg" height="140" width="400" /></span></div>
<div class="MsoNormal">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11.0pt; mso-ansi-language: EN-US;"><br /></span></div>
<div class="MsoNormal">
<b><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11.0pt; mso-ansi-language: EN-US;">What is it and what is it not?<o:p></o:p></span></b></div>
<div class="MsoNormal">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11.0pt; mso-ansi-language: EN-US;">When talking about prototypes most people associate with it an early
version of the final product which looks like the final product and have some
of the same functionalities. Today however the entrepreneurial gospel seems to
be that you should prototype as soon as possible and that you can do so successfully
in very low fidelity (which is the case with the MVP).<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11.0pt; mso-ansi-language: EN-US;">At the Danish product development company <a href="http://kapacitet.as/">Kapacitet </a>they distinguish between
functional models and prototypes. Whereas a prototype in their terminology has
all the functionalities, the right size, the right materials but is not
produced with the right production methods a functional model has some of the
key functions but does not necessarily look like the end product.<o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11.0pt; mso-ansi-language: EN-US;">A functional model can let you test some key assumptions about your
value proposition before even building the first version of the final product.
As such it can help you reduce risk, save time and money and fail fast if
failure is inevitable. <o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11.0pt; mso-ansi-language: EN-US;">According to <strong><span style="border: none windowtext 1.0pt; font-weight: normal; mso-bidi-font-weight: bold; mso-border-alt: none windowtext 0cm; padding: 0cm;">Thomas Olund Kristensen, R&D Engineer at</span><span style="border: none windowtext 1.0pt; mso-border-alt: none windowtext 0cm; padding: 0cm;"> </span></strong>Kapacitet you should test commercial feasibility
long before you finish your technical development. To emphasize this Anders
shared the following ratio: If an idea is worth $1, and the development $100,
the advertising is worth $1000 in matter of importance. You have to be quite
confident that you have customers before you finish your technical development.
You might spend a whole lot of money building something for which you can’t
find any customers for in the end.<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11.0pt; mso-ansi-language: EN-US;">Serial entrepreneur <a href="https://www.linkedin.com/profile/view?id=AAkAABPypS4BHueo6CFvDH0axkZtw-C33x8ZyZI&authType=NAME_SEARCH&authToken=SX4G&locale=en_US&trk=tyah&trkInfo=clickedVertical%3Amynetwork%2CclickedEntityId%3A334669102%2CauthType%3ANAME_SEARCH%2Cidx%3A1-1-1%2CtarId%3A1443425806149%2Ctas%3AJakob%20Konradsen">Jakob Konradsen</a> from DTU (<a href="http://www.slideshare.net/mathiasrw/le-vego-concept-on-1p">Le Vego</a>,<a href="http://signup.novipel.com/"> NoviPel</a>, <a href="https://www.eupry.com/">Eupry</a>) agress
with Thomas and introduces a thrid concept to the development vocabulary: Pretotyping.
Pretotyping is all about testing commercial and technical assumptions as early
as possible and even before you are able to present a prototype. <o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11.0pt; mso-ansi-language: EN-US;">“If you can’t sell the product without a prototype you shouldn’t even
build the product. You need to be able to convince people in a 30 sec pitch and
you can go far with just a powerpoint slide.” Jakob Konradsen<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11.0pt; mso-ansi-language: EN-US;">When pretotyping a simple powepoint slide can serve as your MVP to test
commercial feasibility. Jakob elaborated further by saying that engineers are
very perfectionistic in relation to technical solutions. In his view better is
the enemy of good. No matter how much time you use, there will always be a new
version of the product. You’ll never be finished developing.. At one point you
just need to stop and take it to the market and see if it can make it.<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11.0pt; mso-ansi-language: EN-US;">In the case of the startup Eupry (monitoring of vaccines in the cold
chain). Jakov and the team test a very early model in Nigeria expecting Africa
to be their prime market. The test showed them that the African market is
incredibly hard to penetrade because of conflicts of interest between their product
and the users (not the buyers). It proved to be too large of a challenge and
Eupry pivoted to a new local market: Danish doctors and they have now tested
that there is a market feasible market for them in Denmark. <o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b><span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11.0pt; mso-ansi-language: EN-US;">Available tools<o:p></o:p></span></b></div>
<div class="MsoNormal">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11.0pt; mso-ansi-language: EN-US;"><a href="http://www.dtu.dk/english/Service/Phonebook/Person?id=16868&tab=1">Michael Kai Petersen</a>, associate professor at DTU Compute stressed that
today there’s there’s so much infrastructure to build on top of when working on
entrepreneurial projects. You really don’t have to start from scratch. <o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
</div>
<ul>
<li><span style="font-family: 'Times New Roman', serif; font-size: 11pt; text-indent: -18pt;">The business model canvas is great to take all elements around the idea
into consideration.</span><span style="font-family: 'Times New Roman', serif; font-size: 11pt;">Prototyping is about making mockups of the business model as well as the
technical solution.</span></li>
<li><span style="font-family: 'Times New Roman', serif; font-size: 11pt;">Arduino and electric imp are great for electronic prototyping</span><span style="font-family: 'Times New Roman', serif; font-size: 11pt;"> </span></li>
<li><span style="font-family: 'Times New Roman', serif; font-size: 11pt;">3D printing lets you print early versions to present to partners and
customers and they will get it right away.</span><span style="font-family: 'Times New Roman', serif; font-size: 11pt;"> </span></li>
<li><span style="font-family: 'Times New Roman', serif; font-size: 11pt;">CNC milling lets you build robust physical products fast and easily.</span><span style="font-family: 'Times New Roman', serif; font-size: 11pt;"> </span></li>
<li><span style="font-family: 'Times New Roman', serif; font-size: 11pt;">Fablabs rants you access to these resspurces. According to </span><strong style="font-family: 'Times New Roman', serif; font-size: 11pt;"><span style="border: none windowtext 1.0pt; color: #323232; font-weight: normal; mso-bidi-font-weight: bold; mso-border-alt: none windowtext 0cm; padding: 0cm;">Nicolas Padfield</span></strong><span class="apple-converted-space" style="font-family: 'Times New Roman', serif; font-size: 11pt;"><span style="color: #323232;">, lab leader at RUC Fablab, Fablabs are going to do for
things </span>what the internet did for communication. They are the frontrunners
of a democratization of production.</span><span style="font-family: 'Times New Roman', serif; font-size: 11pt;"> </span></li>
<li><span style="font-family: 'Times New Roman', serif; font-size: 11pt;">“Pop” lets you sketch out mockup apps on your smart phone.</span><span style="font-family: 'Times New Roman', serif; font-size: 11pt;"> </span></li>
</ul>
<br />
<div class="MsoNormal">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11.0pt; mso-ansi-language: EN-US;">But even with all these ressources readily available the prototyping
tool of choice for Michael Kai Petersen is still pencil and paper.<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11.0pt; mso-ansi-language: EN-US;">So now there’s no excuse. Go build stuff!<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<br /></div>
<table border="1" cellpadding="0" cellspacing="0" class="MsoTableMediumShading1Accent1" style="border-collapse: collapse; border: none; mso-border-alt: solid #009DE2 1.0pt; mso-border-themecolor: accent1; mso-border-themetint: 191; mso-padding-alt: 0cm 5.4pt 0cm 5.4pt; mso-yfti-tbllook: 1184;">
<tbody>
<tr>
<td style="background: #005C84; border-right: none; border: solid #009DE2 1.0pt; mso-background-themecolor: accent1; mso-border-themecolor: accent1; mso-border-themetint: 191; padding: 0cm 5.4pt 0cm 5.4pt; width: 152.75pt;" valign="top" width="204"><div class="MsoNormal">
<b><span lang="EN-US" style="color: white; font-family: "Times New Roman","serif"; font-size: 11.0pt; mso-ansi-language: EN-US; mso-themecolor: background1;">Pretotyping<o:p></o:p></span></b></div>
</td>
<td style="background: #005C84; border-bottom: solid #009DE2 1.0pt; border-left: none; border-right: none; border-top: solid #009DE2 1.0pt; mso-background-themecolor: accent1; mso-border-bottom-themecolor: accent1; mso-border-bottom-themetint: 191; mso-border-top-themecolor: accent1; mso-border-top-themetint: 191; padding: 0cm 5.4pt 0cm 5.4pt; width: 152.75pt;" valign="top" width="204"><div class="MsoNormal">
<b><span lang="EN-US" style="color: white; font-family: "Times New Roman","serif"; font-size: 11.0pt; mso-ansi-language: EN-US; mso-themecolor: background1;">Funcional
modeling<o:p></o:p></span></b></div>
</td>
<td style="background: #005C84; border-left: none; border: solid #009DE2 1.0pt; mso-background-themecolor: accent1; mso-border-themecolor: accent1; mso-border-themetint: 191; padding: 0cm 5.4pt 0cm 5.4pt; width: 152.8pt;" valign="top" width="204"><div class="MsoNormal">
<b><span lang="EN-US" style="color: white; font-family: "Times New Roman","serif"; font-size: 11.0pt; mso-ansi-language: EN-US; mso-themecolor: background1;">Prototyping<o:p></o:p></span></b></div>
</td>
</tr>
<tr>
<td style="background: #A1E2FF; border-bottom: solid #009DE2 1.0pt; border-left: solid #009DE2 1.0pt; border-right: none; border-top: none; mso-background-themecolor: accent1; mso-background-themetint: 63; mso-border-bottom-themecolor: accent1; mso-border-bottom-themetint: 191; mso-border-left-themecolor: accent1; mso-border-left-themetint: 191; mso-border-top-alt: solid #009DE2 1.0pt; mso-border-top-themecolor: accent1; mso-border-top-themetint: 191; padding: 0cm 5.4pt 0cm 5.4pt; width: 152.75pt;" valign="top" width="204"><div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11.0pt; mso-ansi-language: EN-US; mso-bidi-font-weight: bold;">Prior to technical
development<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11.0pt; mso-ansi-language: EN-US; mso-bidi-font-weight: bold;">Commercial feasibility<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11.0pt; mso-ansi-language: EN-US; mso-bidi-font-weight: bold;">Low fidelity<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11.0pt; mso-ansi-language: EN-US; mso-bidi-font-weight: bold;">Hand held functionality
(concierge etc.)<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11.0pt; mso-ansi-language: EN-US; mso-bidi-font-weight: bold;">Pretending to have the
product<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11.0pt; mso-ansi-language: EN-US; mso-bidi-font-weight: bold;">Fake it ‘till you make it<b><o:p></o:p></b></span></div>
</td>
<td style="background: #A1E2FF; border-bottom: solid #009DE2 1.0pt; border: none; mso-background-themecolor: accent1; mso-background-themetint: 63; mso-border-bottom-themecolor: accent1; mso-border-bottom-themetint: 191; mso-border-top-alt: solid #009DE2 1.0pt; mso-border-top-themecolor: accent1; mso-border-top-themetint: 191; padding: 0cm 5.4pt 0cm 5.4pt; width: 152.75pt;" valign="top" width="204"><div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11.0pt; mso-ansi-language: EN-US;">During technical development<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11.0pt; mso-ansi-language: EN-US;">Technical feasibilty<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11.0pt; mso-ansi-language: EN-US;">Modeling functional parts<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11.0pt; mso-ansi-language: EN-US;">Make fragments to test<o:p></o:p></span></div>
</td>
<td style="background: #A1E2FF; border-bottom: solid #009DE2 1.0pt; border-left: none; border-right: solid #009DE2 1.0pt; border-top: none; mso-background-themecolor: accent1; mso-background-themetint: 63; mso-border-bottom-themecolor: accent1; mso-border-bottom-themetint: 191; mso-border-right-themecolor: accent1; mso-border-right-themetint: 191; mso-border-top-alt: solid #009DE2 1.0pt; mso-border-top-themecolor: accent1; mso-border-top-themetint: 191; padding: 0cm 5.4pt 0cm 5.4pt; width: 152.8pt;" valign="top" width="204"><div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11.0pt; mso-ansi-language: EN-US;">After tech-development, before production<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11.0pt; mso-ansi-language: EN-US;">Usability<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11.0pt; mso-ansi-language: EN-US;">High fidelity<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11.0pt; mso-ansi-language: EN-US;">1<sup>st</sup> version of final product<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11.0pt; mso-ansi-language: EN-US;">Present to sell<o:p></o:p></span></div>
</td>
</tr>
</tbody></table>
<br />
<div class="MsoNormal">
<br /></div>
Anonymoushttp://www.blogger.com/profile/08359615102122187053noreply@blogger.com0tag:blogger.com,1999:blog-3767844902663353660.post-1614185724095503852015-09-15T01:43:00.000-07:002015-09-17T08:14:34.592-07:00Test commercial feasibility and do the easy stuff first<div class="MsoNormal">
<span lang="EN-US" style="font-size: 11.0pt; mso-ansi-language: EN-US;"><em style="background-color: #fefdfa; color: #5c5c5c; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: 13px; line-height: 18.2px;">By Thomas Klem Andersen, Published on september 14th 2015</em></span><br />
<span lang="EN-US" style="font-size: 11.0pt; mso-ansi-language: EN-US;"><br /></span>
<span lang="EN-US" style="font-size: 11.0pt; mso-ansi-language: EN-US;">This week <a href="https://www.linkedin.com/profile/view?id=AAkAAAAci5IBCQP-IGV80El8naXSjHzRhHVJG9U&authType=NAME_SEARCH&authToken=Xgxq&locale=en_US&trk=tyah&trkInfo=clickedVertical%3Amynetwork%2CclickedEntityId%3A1870738%2CauthType%3ANAME_SEARCH%2Cidx%3A1-1-1%2CtarId%3A1442305743979%2Ctas%3Ajakob">Jakob Svagin</a> from
<a href="http://www.sciondtu.dk/netvaerk-innovation/">Scion DTU</a> and <a href="https://www.linkedin.com/profile/view?id=AAkAAAEqRwMBlMhyjgpCOJ9Ju5Ys0QU2r2c7CTo&authType=NAME_SEARCH&authToken=f853&locale=en_US&trk=tyah&trkInfo=clickedVertical%3Amynetwork%2CclickedEntityId%3A19547907%2CauthType%3ANAME_SEARCH%2Cidx%3A1-1-1%2CtarId%3A1442305880312%2Ctas%3Aandreas%20cl">Andreas Cleve Lohmann</a> from <a href="http://www.meetup.com/copenhagenleanstartup/">Copenhagen Lean Startup circle</a> are
challenging the <a href="http://www.sciondtu.dk/netvaerk-innovation/dtc/dtcvirksomheder/">participating hardware startups</a> in <a href="http://www.sciondtu.dk/netvaerk-innovation/dtc/">Danish Tech Challenge</a> on their
value propositions and market assumptions. Here are some insights from the kick
off talk yesterday when the lean-rubber hit the road.<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhAEHtobDymOkpFypgSMcZTCseXts8dfwksKiLWVUEgwfO0FlET4aJDYKrcGKc7plgluKAIevgEVgryp2pBCSu-eZgzchnf56AtvyW5_BdPSeqKb81VkHEDS0E4eiU-kKfD3LV_PGelRIg/s1600/Mentortr%25C3%25A6f+og+customer+validation+048.JPG" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhAEHtobDymOkpFypgSMcZTCseXts8dfwksKiLWVUEgwfO0FlET4aJDYKrcGKc7plgluKAIevgEVgryp2pBCSu-eZgzchnf56AtvyW5_BdPSeqKb81VkHEDS0E4eiU-kKfD3LV_PGelRIg/s320/Mentortr%25C3%25A6f+og+customer+validation+048.JPG" width="320" /></a></div>
<div class="MsoNormal">
<span lang="EN-US" style="font-size: 11.0pt; mso-ansi-language: EN-US;">Running lean is different than
“just doing it” (a mystic approach to entrepreneurship based on intuition) and
the approach of traditional innovation management (an approach based on plans,
specs and waterfall processes with way too long feedback loops). Running lean
is neither about chance or planning rather it’s about optimizing learning under
circumstances characterized by extreme uncertainty.<o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-US" style="font-size: 11.0pt; mso-ansi-language: EN-US;"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-US" style="font-size: 11.0pt; mso-ansi-language: EN-US;">You have to build to test. And
there’s a bunch of things you can do without even building anything because it’s
crucial that you test your entire business model and not just the technical feasibility.
Sure you need to test your technical solution. But you need to conduct
commercial experiments and generate commercial data as well. </span></div>
<div class="MsoNormal">
<span lang="EN-US" style="font-size: 11.0pt; mso-ansi-language: EN-US;"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-US" style="font-size: 11.0pt; mso-ansi-language: EN-US;">Recognize that
your big vision is based on assumptions and they all need to be tested. Test
your value hypothesis, your market hypothesis, your growth hypothesis – which include
sales channels, partners and customers. These are all part of the uncertain
context which your technical innovation needs to adapt to in order to achieve problem-solution
fit and product-market fit.<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi-ZQltkgnjdY5fF9RXnNufVR_Wt57aDQGPLUr19EJtMOrFqDEI8dd7iTYqacwxBDaOP0g0XP_u7uNaqBg-BGSknxWFEY1SVJyCTzG4a5BohkLx65rm4WBOXlfKbnbJroGVIWvY4ZhOL7E/s1600/Mentortr%25C3%25A6f+og+customer+validation+073.JPG" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi-ZQltkgnjdY5fF9RXnNufVR_Wt57aDQGPLUr19EJtMOrFqDEI8dd7iTYqacwxBDaOP0g0XP_u7uNaqBg-BGSknxWFEY1SVJyCTzG4a5BohkLx65rm4WBOXlfKbnbJroGVIWvY4ZhOL7E/s320/Mentortr%25C3%25A6f+og+customer+validation+073.JPG" width="320" /></a></div>
<div class="MsoNormal">
<span lang="EN-US" style="font-size: 11.0pt; mso-ansi-language: EN-US;">You should build minimum
viable products (MVP’s) of your actual product. But you should also build and
hack MVP’s for how you interact with key partners, suppliers, users and customers.
You can do that very early on and long time before you finish your product
development (if you ever do). It’s never fun to be sold a bad product, but it’s
always fun to be part of building something that can become big, so have an
inclusive mindset from the start.<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US" style="font-size: 11.0pt; mso-ansi-language: EN-US;">Most likely your potential customers
aren’t out there actively looking for you. So the questions you need to ask
yourselves are: <o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoListParagraphCxSpFirst" style="text-indent: -18pt;">
</div>
<ul>
<li><span lang="EN-US" style="font-family: Symbol; font-size: 11pt; text-indent: -18pt;"><span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;"> </span></span><span lang="EN-US" style="font-size: 11pt; text-indent: -18pt;">How can you make them care?</span></li>
<li><span lang="EN-US" style="font-family: Symbol; font-size: 11pt; text-indent: -18pt;"><span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;"> </span></span><span lang="EN-US" style="font-size: 11pt; text-indent: -18pt;">Why is your product valuable to them?</span></li>
<li><span lang="EN-US" style="font-family: Symbol; font-size: 11pt; text-indent: -18pt;"><span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;"> </span></span><span lang="EN-US" style="font-size: 11pt; text-indent: -18pt;">Do you know their criteria for buying?</span></li>
</ul>
<!--[if !supportLists]--><br />
<div class="MsoNormal">
<br /></div>
<br />
<div class="MsoNormal">
<span lang="EN-US" style="font-size: 11.0pt; mso-ansi-language: EN-US;">Your technical product development
might take six months or longer. But testing commercial feasibility can be done
in a matter of days and is essential to developing a sustainable business model.
So go do the easy stuff first!<o:p></o:p></span><br />
<span lang="EN-US" style="font-size: 11.0pt; mso-ansi-language: EN-US;"><br /></span>
<div class="separator" style="clear: both;">
<span lang="EN-US" style="font-size: 11.0pt; mso-ansi-language: EN-US;"></span><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhc0jaSIJAiJ7iMRxBd-XtbZ32MhEWnghaFzORVP3M7tQ5aJHLBl7pNgyx1Cr3rdZtTafK7wihjDuIYx1-5aqZmDMZ7eOcDsMn4QuZMCB9WhHLqfYVNInibPzbtpGd68wZAspr1twIk7NU/s640/blogger-image--1553753389.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhc0jaSIJAiJ7iMRxBd-XtbZ32MhEWnghaFzORVP3M7tQ5aJHLBl7pNgyx1Cr3rdZtTafK7wihjDuIYx1-5aqZmDMZ7eOcDsMn4QuZMCB9WhHLqfYVNInibPzbtpGd68wZAspr1twIk7NU/s320/blogger-image--1553753389.jpg" width="320" /></a></div>
<span lang="EN-US" style="font-size: 11.0pt; mso-ansi-language: EN-US;"><br /></span>
<span lang="EN-US" style="font-size: 11.0pt; mso-ansi-language: EN-US;"><br /></span></div>
<div class="separator" style="clear: both; text-align: center;">
</div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhJI_JlhRyAlDSPyBfpecqDAN7cFYELUSefp260DtMjDO9gBf8T9eyk2hPxrK_4fgrr7phY8YXcsiWKW3klDdV6nNUQWj8227Sz8Sj9t4V4hqIqvVWt6jsPTzrtj9xqRdDm-1je8BXsh8o/s1600/DTC-2015-logo.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="226" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhJI_JlhRyAlDSPyBfpecqDAN7cFYELUSefp260DtMjDO9gBf8T9eyk2hPxrK_4fgrr7phY8YXcsiWKW3klDdV6nNUQWj8227Sz8Sj9t4V4hqIqvVWt6jsPTzrtj9xqRdDm-1je8BXsh8o/s320/DTC-2015-logo.png" width="320" /></a></div>
<div class="separator" style="clear: both; text-align: center;">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US" style="font-size: 11.0pt; mso-ansi-language: EN-US;"><br /></span></div>
Anonymoushttp://www.blogger.com/profile/08359615102122187053noreply@blogger.com0tag:blogger.com,1999:blog-3767844902663353660.post-31722637685588739802014-10-13T05:47:00.000-07:002014-10-13T05:49:16.007-07:00The fallacy of secrecy<div class="MsoNormal" style="line-height: 18.75pt; margin-bottom: 18.0pt; mso-margin-top-alt: auto;">
<span lang="EN-US" style="color: #777777; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">Excerpt from <a href="http://fi.co/posts/9601">Founder Institute blogpost</a> by Joe Garza on 9/24 2014 <o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 18.75pt; margin-bottom: 18.0pt; mso-margin-top-alt: auto;">
<span lang="EN-US" style="color: #777777; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">While it is common among founders
to be hesitant about divulging their startup secrets, the truth of the matter
is that your company can benefit greatly from telling people what your idea is
about and what you hope to achieve. Read on to find out why.<o:p></o:p></span></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiD3mgmhmKMr44iaxOgs9XQexCk-139_mPpMLOHzto6iM_pMHhMPpCAa4Z1PIOA5jOcmzBX1g8pRmWtTF6yLOgC5TylwT_PKQ4_7KD-0u-DWd4rCsZe3IiDuBtuXxqjN8idbSPG8EZdk2w/s1600/Secrecy.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiD3mgmhmKMr44iaxOgs9XQexCk-139_mPpMLOHzto6iM_pMHhMPpCAa4Z1PIOA5jOcmzBX1g8pRmWtTF6yLOgC5TylwT_PKQ4_7KD-0u-DWd4rCsZe3IiDuBtuXxqjN8idbSPG8EZdk2w/s1600/Secrecy.jpg" height="272" width="400" /></a></div>
<div class="MsoNormal" style="line-height: 18.75pt; margin-bottom: 18.0pt; mso-margin-top-alt: auto;">
<b><span style="color: #777777; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;"><a href="http://fi.co/posts/937" target="_blank"><u><span lang="EN-US" style="color: #327ba7; mso-ansi-language: EN-US; mso-ascii-font-family: Cambria; mso-ascii-theme-font: major-latin; mso-hansi-font-family: Cambria; mso-hansi-theme-font: major-latin;">In this exclusive video, Adeo Ressi, Founder and CEO
of the Founder Institute, explains why "Nobody is Going to Steal Your
Stupid Startup Idea".</span></u></a></span></b><span lang="EN-US" style="color: #777777; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;"><o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 19.5pt; mso-outline-level: 3;">
<b><span lang="EN-US" style="color: #464646; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">Myth #1: “I Should Save My Startup Idea
Until It’s Refined”<o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 18.75pt; margin-bottom: 18.0pt; mso-margin-top-alt: auto;">
<b><span lang="EN-US" style="color: #777777; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">Reality: You
should share your idea with everyone you meet.</span></b><span lang="EN-US" style="color: #777777; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;"> If you plan on pitching your idea
to potential investors, why not practice beforehand? By sharing your idea with
as many people as possible, you can get feedback early on to prevent wasting
time on an idea that won’t sell. In a </span><span style="color: #777777; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;"><a href="https://twitter.com/courtneyseiter" target="_blank"><u><span lang="EN-US" style="color: #327ba7; mso-ansi-language: EN-US; mso-ascii-font-family: Cambria; mso-ascii-theme-font: major-latin; mso-hansi-font-family: Cambria; mso-hansi-theme-font: major-latin;">Courtney Seiter</span></u></a></span><span lang="EN-US" style="color: #777777; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">-penned article titled </span><span style="color: #777777; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;"><a href="http://open.bufferapp.com/one-will-steal-startup-idea/" target="_blank"><u><span lang="EN-US" style="color: #327ba7; mso-ansi-language: EN-US; mso-ascii-font-family: Cambria; mso-ascii-theme-font: major-latin; mso-hansi-font-family: Cambria; mso-hansi-theme-font: major-latin;">Why No One Will Steal Your
Startup Idea</span></u></a></span><span lang="EN-US" style="color: #777777; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">,
Buffer CEO and Co-Founder </span><span style="color: #777777; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;"><a href="https://twitter.com/joelgascoigne" target="_blank"><u><span lang="EN-US" style="color: #327ba7; mso-ansi-language: EN-US; mso-ascii-font-family: Cambria; mso-ascii-theme-font: major-latin; mso-hansi-font-family: Cambria; mso-hansi-theme-font: major-latin;">Joel Gascoigne</span></u></a></span><span lang="EN-US" style="color: #777777; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;"> says:<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 65.2pt;">
<i><span lang="EN-US" style="color: #464646; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">When you build a startup, you’re
basically creating something that doesn't exist already. In order to figure out
if your idea is actually going to work, it’s essential that you share it with
people. You’re going to have to do it sooner or later. The longer you leave it,
the more risk there is that you spend a long time working on it, and then
eventually you put it out there and find out it’s not something that resonates.<o:p></o:p></span></i></div>
<div class="MsoNormal" style="line-height: 19.5pt; mso-outline-level: 3;">
<br /></div>
<div class="MsoNormal" style="line-height: 19.5pt; mso-outline-level: 3;">
<b><span lang="EN-US" style="color: #464646; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">Myth #2: “My Startup Idea Is Too Unique
To Be Shared”<o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 18.75pt; margin-bottom: 18.0pt; mso-margin-top-alt: auto;">
<b><span lang="EN-US" style="color: #777777; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">Reality: No,
it’s not.</span></b><span lang="EN-US" style="color: #777777; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;"> Just look at the countless
companies that offer the same product. If you have an idea for a startup,
there’s a very good chance that there are a multitude of other entrepreneurs
working on the exact same concept. But don’t let that deter you, as you should
focus less on the idea itself and more on how you plan to execute it. Here’s
what </span><span style="color: #777777; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;"><a href="https://twitter.com/cory" target="_blank"><u><span lang="EN-US" style="color: #327ba7; mso-ansi-language: EN-US; mso-ascii-font-family: Cambria; mso-ascii-theme-font: major-latin; mso-hansi-font-family: Cambria; mso-hansi-theme-font: major-latin;">Cory Levy</span></u></a></span><span lang="EN-US" style="color: #777777; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">, Co-Founder at </span><span style="color: #777777; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;"><a href="http://whatis1.com/app/" target="_blank"><u><span lang="EN-US" style="color: #327ba7; mso-ansi-language: EN-US; mso-ascii-font-family: Cambria; mso-ascii-theme-font: major-latin; mso-hansi-font-family: Cambria; mso-hansi-theme-font: major-latin;">One, Inc.</span></u></a></span><span lang="EN-US" style="color: #777777; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">, has to say in a Linkedin article
titled </span><span style="color: #777777; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;"><a href="https://www.linkedin.com/pulse/article/20140819172010-12603294-startup-secrets-should-i-hide-my-business-idea" target="_blank"><u><span lang="EN-US" style="color: #327ba7; mso-ansi-language: EN-US; mso-ascii-font-family: Cambria; mso-ascii-theme-font: major-latin; mso-hansi-font-family: Cambria; mso-hansi-theme-font: major-latin;">Startup Secrets: Should I
Hide My Business Idea?</span></u></a></span><span lang="EN-US" style="color: #777777; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">:<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 65.2pt;">
<i><span lang="EN-US" style="color: #464646; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">Ideas are a dime a dozen; it’s the
execution that will set you apart from the rest. Chances are that there are
people developing the same thing that you’re working on now. We plan to compete
not by keeping our idea secret, but by building the best possible team and by
creating the best solution to the problem we are solving.<o:p></o:p></span></i></div>
<div class="MsoNormal" style="line-height: 19.5pt; mso-outline-level: 3;">
<br /></div>
<div class="MsoNormal" style="line-height: 19.5pt; mso-outline-level: 3;">
<b><span lang="EN-US" style="color: #464646; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">Myth #3: “People Will Steal My Startup
Idea If I Tell Them What It Is”<o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 18.75pt; margin-bottom: 18.0pt; mso-margin-top-alt: auto;">
<b><span lang="EN-US" style="color: #777777; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">Reality: Most
likely not.</span></b><span lang="EN-US" style="color: #777777; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;"> The
chances of someone stealing your idea are pretty slim. In fact, sharing your
idea with others is a great way to drum up interest in your company and makes
getting help easier. Still not convinced? Here’s what serial entrepreneur </span><span style="color: #777777; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;"><a href="https://twitter.com/amuse" target="_blank"><u><span lang="EN-US" style="color: #327ba7; mso-ansi-language: EN-US; mso-ascii-font-family: Cambria; mso-ascii-theme-font: major-latin; mso-hansi-font-family: Cambria; mso-hansi-theme-font: major-latin;">Alexander Muse</span></u></a></span><span lang="EN-US" style="color: #777777; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;"> has to say in a Startup Muse
article titled </span><span style="color: #777777; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;"><a href="http://www.startupmuse.com/2014/02/should-you-share-your-idea/" target="_blank"><u><span lang="EN-US" style="color: #327ba7; mso-ansi-language: EN-US; mso-ascii-font-family: Cambria; mso-ascii-theme-font: major-latin; mso-hansi-font-family: Cambria; mso-hansi-theme-font: major-latin;">Should you share your idea?</span></u></a></span><span lang="EN-US" style="color: #777777; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">:<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 65.2pt;">
<i><span lang="EN-US" style="color: #464646; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">If you keep your ideas a secret it will
be impossible for anyone to actually help you. Could someone steal your idea?
Of course, but as I’ve said before your potential competitors are more likely
to become partners. You’re far more passionate about your idea that anyone else
– and most people want to partner with people with passion.<o:p></o:p></span></i></div>
<div class="MsoNormal" style="margin-left: 65.2pt;">
<i><span lang="EN-US" style="color: #464646; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;"><br /></span></i></div>
<div class="MsoNormal" style="line-height: 18.75pt; margin-bottom: 18.0pt; mso-margin-top-alt: auto;">
<span lang="EN-US" style="color: #777777; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">If you’re still reticent about
sharing your idea with others, take into account the multitude of opportunities
that your company can benefit from by simply divulging what it is you do and
how you’re going to do it. And remember:<o:p></o:p></span></div>
<div class="MsoNormal">
<i><span lang="EN-US" style="color: #464646; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">If someone does take your idea, they
will never have the passion you have for it because they didn’t come up with
it.” - Joel Gascoigne<o:p></o:p></span></i></div>
<div class="MsoNormal" style="line-height: 31.5pt; margin-bottom: 3.75pt; margin-left: 0cm; margin-right: 0cm; margin-top: 3.75pt; mso-outline-level: 1;">
</div>
<div class="MsoNormal">
<br /></div>
Anonymoushttp://www.blogger.com/profile/08359615102122187053noreply@blogger.com0tag:blogger.com,1999:blog-3767844902663353660.post-61723248362143788642014-08-12T02:27:00.000-07:002014-08-20T06:38:27.372-07:00Investment issues for hardware startups <div class="MsoNormal">
<a href="https://www.blogger.com/null" name="_GoBack"></a><br /></div>
<div class="MsoNormal">
<a href="http://sktainnopartners.com/how-to-raise-seed-investments-for-a-hardware-startup/">SKTA Innopartners blogpost</a> by Ilgiz Akhmetshin, August 6
2014<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="background: white; color: #3c3c3c; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">It is
widely accepted that the hardware startup funding ecosystem is broken. There
are a lot of reasons why investors hesitate to invest in hardware (and even
more so in semiconductors): <o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoListParagraphCxSpFirst" style="text-indent: -18pt;">
<!--[if !supportLists]--><span style="color: #3c3c3c; font-family: Symbol; font-size: 11.0pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="background: white; color: #3c3c3c; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">High R&D expenses<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="text-indent: -18pt;">
<!--[if !supportLists]--><span style="color: #3c3c3c; font-family: Symbol; font-size: 11.0pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="background: white; color: #3c3c3c; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">Longer time-to-market<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="text-indent: -18pt;">
<!--[if !supportLists]--><span style="color: #3c3c3c; font-family: Symbol; font-size: 11.0pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="background: white; color: #3c3c3c; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">Expensive proof of concept<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="text-indent: -18pt;">
<!--[if !supportLists]--><span style="color: #3c3c3c; font-family: Symbol; font-size: 11.0pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="background: white; color: #3c3c3c; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">Potential manufacturing issues<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpLast" style="text-indent: -18pt;">
<!--[if !supportLists]--><span style="color: #3c3c3c; font-family: Symbol; font-size: 11.0pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="background: white; color: #3c3c3c; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">Expensive to scale, etc. <o:p></o:p></span></div>
<div class="MsoNormal">
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg-vkiTafsm0i4r8f2ozn_7yRq0j2BMy_QdeZSpArjlpOjkB1brdyDLWhiPUWvBATwEYXuHyc_44TfTKpEtypGuHYVLYVdm37yZ8thHURcqOwIdDSJTz88UrROE8ACK9V9bM5I1nBzZHV4/s1600/Nuts,+bolts+&+money.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg-vkiTafsm0i4r8f2ozn_7yRq0j2BMy_QdeZSpArjlpOjkB1brdyDLWhiPUWvBATwEYXuHyc_44TfTKpEtypGuHYVLYVdm37yZ8thHURcqOwIdDSJTz88UrROE8ACK9V9bM5I1nBzZHV4/s1600/Nuts,+bolts+&+money.jpg" height="211" width="320" /></a></div>
<br />
<br /></div>
<div class="MsoNormal">
<span style="background: white; color: #3c3c3c; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">Therefore,
most VCs won’t consider investing in semiconductor companies. Given
these reasons, even with the best material or the ultimate chip, fundraising
is very tricky, if not impossible. A typical semiconductor startup
requires about $5M of seed funding to validate the design and to get to
proof-of-concept on an FPGA and then an additional $20M to launch the
product. Although this number may vary from one startup to another, it
will always be order of magnitude more costly and take longer to reach
commercial viability than a software startup. Usually, entrepreneurs can
invest their own money or raise angel funding to get started. However,
to become venturable, a hardware startup requires much more. Here are a
few ways of raising additional money. <o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b><span style="background: white; border: none windowtext 1.0pt; color: #3c3c3c; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-border-alt: none windowtext 0cm; mso-hansi-theme-font: major-latin; padding: 0cm;">Venture
Capital</span></b><span style="background: white; color: #3c3c3c; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;"> <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="background: white; color: #3c3c3c; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">Although
there are a number of VCs who have recently invested in consumer hardware
(e.g. </span><span style="font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><a href="http://www.menloventures.com/portfolio"><span style="background: white; border: none windowtext 1.0pt; color: #fe5e08; mso-bidi-font-family: Arial; mso-border-alt: none windowtext 0cm; padding: 0cm; text-decoration: none; text-underline: none;">Menlo
Ventures</span></a></span><span style="background: white; color: #3c3c3c; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">, </span><span style="font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><a href="http://www.kpcb.com/companies"><span style="background: white; border: none windowtext 1.0pt; color: #fe5e08; mso-bidi-font-family: Arial; mso-border-alt: none windowtext 0cm; padding: 0cm; text-decoration: none; text-underline: none;">Highland Capital Partners</span></a></span><span style="background: white; color: #3c3c3c; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">, </span><span style="font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><a href="http://www.samsungventures.com/"><span style="background: white; border: none windowtext 1.0pt; color: #fe5e08; mso-bidi-font-family: Arial; mso-border-alt: none windowtext 0cm; padding: 0cm; text-decoration: none; text-underline: none;">Samsung
Ventures America</span></a></span><span style="background: white; color: #3c3c3c; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">), extraordinarily
few will invest in the early stages. Early stage semiconductor companies may
not have much more than a concept and some gross calculations. Armed with only
this, it’s much too early to seek VC funding for a
traditional Series A round. To become “venturable”, they will have to find
$1M-$5M to get first prototypes or at least simulations run. <o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b><span style="background: white; border: none windowtext 1.0pt; color: #3c3c3c; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-border-alt: none windowtext 0cm; mso-hansi-theme-font: major-latin; padding: 0cm;">Crowdfunding</span></b><span style="background: white; color: #3c3c3c; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;"> <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="background: white; color: #3c3c3c; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">Recent
success of hardware startups on </span><span style="font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><a href="http://www.kickstarter.com/"><span style="background: white; border: none windowtext 1.0pt; color: #fe5e08; mso-bidi-font-family: Arial; mso-border-alt: none windowtext 0cm; padding: 0cm; text-decoration: none; text-underline: none;">Kickstarter</span></a></span><span style="background: white; color: #3c3c3c; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;"> (</span><span style="font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><a href="http://www.kickstarter.com/projects/597507018/pebble-e-paper-watch-for-iphone-and-android?ref=most-funded"><span style="background: white; border: none windowtext 1.0pt; color: #fe5e08; mso-bidi-font-family: Arial; mso-border-alt: none windowtext 0cm; padding: 0cm; text-decoration: none; text-underline: none;">Pebble – $10.3M</span></a></span><span style="background: white; color: #3c3c3c; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">; </span><span style="font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><a href="http://www.kickstarter.com/projects/formlabs/form-1-an-affordable-professional-3d-printer?ref=most-funded"><span style="background: white; border: none windowtext 1.0pt; color: #fe5e08; mso-bidi-font-family: Arial; mso-border-alt: none windowtext 0cm; padding: 0cm; text-decoration: none; text-underline: none;">Form 1 – $3M</span></a></span><span style="background: white; color: #3c3c3c; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">), or </span><span style="font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><a href="http://www.indiegogo.com/"><span style="background: white; border: none windowtext 1.0pt; color: #fe5e08; mso-bidi-font-family: Arial; mso-border-alt: none windowtext 0cm; padding: 0cm; text-decoration: none; text-underline: none;">Indiegogo </span></a></span><span style="background: white; color: #3c3c3c; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">(</span><span style="font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><a href="http://www.indiegogo.com/projects/ubuntu-edge--35/piad"><span style="background: white; border: none windowtext 1.0pt; color: #fe5e08; mso-bidi-font-family: Arial; mso-border-alt: none windowtext 0cm; padding: 0cm; text-decoration: none; text-underline: none;">Ubuntu Edge – $7.4M</span></a></span><span style="background: white; color: #3c3c3c; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">; </span><span style="font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><a href="http://www.indiegogo.com/projects/scanadu-scout-the-first-medical-tricorder/piad"><span style="background: white; border: none windowtext 1.0pt; color: #fe5e08; mso-bidi-font-family: Arial; mso-border-alt: none windowtext 0cm; padding: 0cm; text-decoration: none; text-underline: none;">Scandau – $1.6M</span></a></span><span style="background: white; color: #3c3c3c; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">) prove crowdfunding can be a viable
source of startup funding that does not dilute founders’ equity. Moreover,
projects not only get funding, but also PR and a customer base. However,
crowdfunding is only viable for consumer electronics and devices. We
should keep in mind that Kickstarter’s and Indiegogo’s models work this
way:</span><span style="font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 22.95pt; margin-left: 22.5pt; mso-list: l1 level1 lfo1; tab-stops: list 36.0pt; text-indent: -18.0pt; vertical-align: baseline;">
<!--[if !supportLists]--><span style="color: #3c3c3c; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Cambria; mso-bidi-theme-font: major-latin; mso-fareast-font-family: Cambria; mso-fareast-theme-font: major-latin; mso-hansi-theme-font: major-latin;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="color: #3c3c3c; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">Backers pre-order products or services from a startup<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 22.95pt; margin-left: 22.5pt; mso-list: l1 level1 lfo1; tab-stops: list 36.0pt; text-indent: -18.0pt; vertical-align: baseline;">
<!--[if !supportLists]--><span style="color: #3c3c3c; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Cambria; mso-bidi-theme-font: major-latin; mso-fareast-font-family: Cambria; mso-fareast-theme-font: major-latin; mso-hansi-theme-font: major-latin;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="color: #3c3c3c; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">The startup uses this money to start manufacturing<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 22.95pt; margin-left: 22.5pt; mso-list: l1 level1 lfo1; tab-stops: list 36.0pt; text-indent: -18.0pt; vertical-align: baseline;">
<!--[if !supportLists]--><span style="color: #3c3c3c; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Cambria; mso-bidi-theme-font: major-latin; mso-fareast-font-family: Cambria; mso-fareast-theme-font: major-latin; mso-hansi-theme-font: major-latin;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="color: #3c3c3c; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">Backers receive pre-ordered goods or services<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 22.95pt; margin-left: 22.5pt; vertical-align: baseline;">
<br /></div>
<div class="MsoNormal">
<span style="background: white; color: #3c3c3c; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">This
works perfectly for consumer devices, but won’t work for any upstream hardware.
There is hardly any consumer who needs a single next-generation bluetooth chip
if it is not integrated somewhere. Other crowdfunding options include </span><span style="font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><a href="http://gust.com/"><span style="background: white; border: none windowtext 1.0pt; color: #fe5e08; mso-bidi-font-family: Arial; mso-border-alt: none windowtext 0cm; padding: 0cm; text-decoration: none; text-underline: none;">gust.com</span></a></span><span style="background: white; color: #3c3c3c; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">, </span><span style="font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><a href="http://angel.co/"><span style="background: white; border: none windowtext 1.0pt; color: #fe5e08; mso-bidi-font-family: Arial; mso-border-alt: none windowtext 0cm; padding: 0cm; text-decoration: none; text-underline: none;">angel.co</span></a></span><span style="background: white; color: #3c3c3c; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;"> and </span><span style="font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><a href="http://f6s.com/"><span style="background: white; border: none windowtext 1.0pt; color: #fe5e08; mso-bidi-font-family: Arial; mso-border-alt: none windowtext 0cm; padding: 0cm; text-decoration: none; text-underline: none;">f6s.com</span></a></span><span style="background: white; color: #3c3c3c; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">. When
the </span><span style="font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><a href="http://www.businessweek.com/articles/2013-06-04/what-jobs-act-a-white-house-crowdfunding-crowd-is-doing-fine-without-it"><span style="background: white; border: none windowtext 1.0pt; color: #fe5e08; mso-bidi-font-family: Arial; mso-border-alt: none windowtext 0cm; padding: 0cm; text-decoration: none; text-underline: none;">JOBS Act takes effect</span></a></span><span style="background: white; color: #3c3c3c; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">, everyone may invest in startups via
crowdfunding platforms (today, it is limited only to accredited investors who
meet special accreditation requirements). Even though these platforms bring
more potential investors to the table, it is unlikely that b2b oriented
startups will be able to benefit from this opportunity. Consumers are not moved
to invest in “holy grail technology”, such as </span><span style="font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><a href="http://en.wikipedia.org/wiki/Extreme_ultraviolet_lithography"><span style="background: white; border: none windowtext 1.0pt; color: #fe5e08; mso-bidi-font-family: Arial; mso-border-alt: none windowtext 0cm; padding: 0cm; text-decoration: none; text-underline: none;">EUV light</span></a></span><span style="background: white; color: #3c3c3c; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;"> sources, for example, because they don’t understand the
device and the benefits to solving the lithography problem are too far removed.<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b><span style="background: white; border: none windowtext 1.0pt; color: #3c3c3c; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-border-alt: none windowtext 0cm; mso-hansi-theme-font: major-latin; padding: 0cm;">Seed funds /
Accelerators / Incubators</span></b><span style="background: white; color: #3c3c3c; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;"> <o:p></o:p></span></div>
<br />
<div class="MsoNormal">
<span style="background: white; color: #3c3c3c; font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">There
are quite a few startup accelerators that focus on hardware. Some of them are
affiliated with major semiconductor or hardware manufacturers. This partnership
can be beneficial for startups in multiple aspects; strategic partners can
bring industry and technical expertise, seed funding and opportunities to scale
up (<a href="http://sktainnopartners.com/how-to-raise-seed-investments-for-a-hardware-startup/">Read the original post to see a list of US based hardware accelerators</a>).<o:p></o:p></span></div>
Anonymoushttp://www.blogger.com/profile/08359615102122187053noreply@blogger.com0tag:blogger.com,1999:blog-3767844902663353660.post-3395799018337986622014-07-10T10:08:00.000-07:002014-07-14T00:04:35.191-07:00University Spin back powered by Lean Startup and BMC<style>
<!--
/* Font Definitions */
@font-face
{font-family:Cambria;
panose-1:2 4 5 3 5 4 6 3 2 4;
mso-font-charset:0;
mso-generic-font-family:auto;
mso-font-pitch:variable;
mso-font-signature:3 0 0 0 1 0;}
/* Style Definitions */
p.MsoNormal, li.MsoNormal, div.MsoNormal
{mso-style-parent:"";
margin:0cm;
margin-bottom:.0001pt;
mso-pagination:widow-orphan;
font-size:12.0pt;
font-family:"Times New Roman";
mso-ascii-font-family:Cambria;
mso-ascii-theme-font:minor-latin;
mso-fareast-font-family:Cambria;
mso-fareast-theme-font:minor-latin;
mso-hansi-font-family:Cambria;
mso-hansi-theme-font:minor-latin;
mso-bidi-font-family:"Times New Roman";
mso-bidi-theme-font:minor-bidi;}
a:link, span.MsoHyperlink
{color:blue;
text-decoration:underline;
text-underline:single;}
a:visited, span.MsoHyperlinkFollowed
{mso-style-noshow:yes;
color:purple;
text-decoration:underline;
text-underline:single;}
@page Section1
{size:595.0pt 842.0pt;
margin:72.0pt 90.0pt 72.0pt 90.0pt;
mso-header-margin:35.4pt;
mso-footer-margin:35.4pt;
mso-paper-source:0;}
div.Section1
{page:Section1;}
-->
</style>
<br />
<div class="MsoNormal">
<span style="font-size: 11.0pt;">By Thomas Klem Andersen, Published on July 10 2014 </span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: 11.0pt;">At </span><a href="http://www.sciondtu.com/"><span style="font-size: 11.0pt;">Scion DTU</span></a><span style="font-size: 11.0pt;"> I am involved in the facilitation of 20 collaborative
development projects beteween technical researchers and high tech companies in
the science park environment.</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: 11.0pt;">The aim is to ’spin back’
technology based companies to the Technical University of Denmark (<a href="http://www.dtu.dk/english">DTU</a>). </span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: 11.0pt;">The companies ranges from dealing
with metal spinding to drones and Laser based skin treatment and they are now
colaborating with eight different departments at the University: Space,
Photonics, Chemistry, Management, Chemical and biochemical Engineering,
Compute, Civil engineering and Mechanical engineering. </span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: 11.0pt;">However the initiative is not
just about <span style="mso-spacerun: yes;"> </span>knowledge and
tech-transfer but is integrated with business development (provided by </span><a href="http://keystones.dk/en"><span style="font-size: 11.0pt;">Keystones</span></a><span style="font-size: 11.0pt;"> & </span><a href="http://en.1stmile.dk/"><span style="font-size: 11.0pt;">1st Mile</span></a><span style="font-size: 11.0pt;">)
and process facilitation (provided by Scion DTU). </span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: 11.0pt;">In this context we just
hosted a master class about the </span><a href="http://theleanstartup.com/"><span style="font-size: 11.0pt;">Lean Startup</span></a><span style="font-size: 11.0pt;">
framework and the </span><a href="http://www.businessmodelgeneration.com/"><span style="font-size: 11.0pt;">Business Model Canvas</span></a><span style="font-size: 11.0pt;"> tool in collaboration with the </span><span style="font-size: 11.0pt;"><a href="http://www.meetup.com/Copenhagenleanstartup/">Copenhagen Lean Startup Circle</a> represented by Andreas Cleve Lohmann (@andreascleve) and Sebastian Schwermer (@schwermer)</span><span style="font-size: 11.0pt;">.</span></div>
<div class="MsoNormal">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiTTVhAf_2h7XwBqi0kEZUtGnmAVXwpt1Rt8Wy7geC1YVY0-O2ZcXXl4ZIlQ9ajkyx8ESkcpbOEXug7-sMYAW3lNpl_uXh3rHQTTNCv3YMxspfdNvXibK30OOMPSLOgUVZ3mXYDz8LUjHo/s1600/Lean+Startup.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiTTVhAf_2h7XwBqi0kEZUtGnmAVXwpt1Rt8Wy7geC1YVY0-O2ZcXXl4ZIlQ9ajkyx8ESkcpbOEXug7-sMYAW3lNpl_uXh3rHQTTNCv3YMxspfdNvXibK30OOMPSLOgUVZ3mXYDz8LUjHo/s1600/Lean+Startup.png" height="236" width="320" /></a></div>
<div class="MsoNormal">
<span style="font-size: 11.0pt;"><br /></span>
<span style="font-size: 11.0pt;">Many entrepreneurs break
their neck and waste vast amounts of time and money in the process. The reason
is that product innovation is incredibly hard because you are navigating in a
field characterized by limited knowledge, extreme uncertainty and high risk.</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: 11.0pt;">For this reason the Lean Startup
framework focuses on how systematically to mitigate risk when bringing a new
product to the market. This approach is increadibly valuable for the 20
development projects we are facilitating, as they need to focus on the market
as well to make sure that the value of the collaborations is also realized
outside the laboratory.</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: 11.0pt;">What is required from the
Lean Startup perspective is systematic learning.<span style="mso-spacerun: yes;"> </span>The Lean Startup methodology is all about maximizing
learning to develop a sustainable and scalable business model as fast as
possible with the least amount of effort in order to save time and money.</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: 11.0pt;">This is done through a
build-measure-learn cycle, where you break down the initial assumptions
underlying your vision to testable hypotheses and build the absolute minimum
you need in order to test them.</span><br />
<span style="font-size: 11.0pt;"><br /></span></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjL1DkXgO6ruWDaBw9wz5oCe9vTYVjM__yQyg4cUI33TooEa78l_r5fWJjunzdItwHDbxwi-0uhNWIDUD523aFcLu0tyQEj6Ywb-sVKIdaRGpZp2QJylWVtEBnIYzyJhZ1O0_6H-v8r5_I/s1600/Build+Measure+Lean.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjL1DkXgO6ruWDaBw9wz5oCe9vTYVjM__yQyg4cUI33TooEa78l_r5fWJjunzdItwHDbxwi-0uhNWIDUD523aFcLu0tyQEj6Ywb-sVKIdaRGpZp2QJylWVtEBnIYzyJhZ1O0_6H-v8r5_I/s1600/Build+Measure+Lean.jpg" /></a></div>
<div class="MsoNormal">
<span style="font-size: 11.0pt;"><br /></span>
<span style="font-size: 11.0pt;">The Business Model Canvas
(BMC) is very useful for this particular purpose as it organizes the crucial
elements of your business model and (ideally) lets you see them for what
they are: Hypotheses that should be tested and addapted to reach optimal
market-fit. </span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: 11.0pt;">We look forward to be working
with the canvas and the Lean Startup framework together with the 20 companies
in the spin-back program!</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: 11.0pt;">For more on Lean Startup: </span><a href="http://entrepreneurialinnovation.blogspot.dk/2013/11/destillates-from-lean-reinvented-at.html"><span style="font-size: 11.0pt;">Lean reinvented?</span></a><span style="font-size: 11.0pt;"> </span><a href="http://entrepreneurialinnovation.blogspot.dk/2013/10/pretotyping-leaner-than-lean.html"><span style="font-size: 11.0pt;">Pretotyping –leaner than Lean?</span></a><span style="font-size: 11.0pt;"> </span><a href="http://entrepreneurialinnovation.blogspot.dk/2014/01/a-secret-sauce-for-running-lean.html"><span style="font-size: 11.0pt;">A secret sauce for Running Lean?</span></a><span style="font-size: 11.0pt;"></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<br /></div>
Anonymoushttp://www.blogger.com/profile/08359615102122187053noreply@blogger.com0tag:blogger.com,1999:blog-3767844902663353660.post-5681134542235499202014-04-07T01:28:00.001-07:002014-04-24T07:39:59.755-07:00Open Innovation and strategic incentive management<div class="Body1">
<span style="font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 12.0pt; mso-hansi-theme-font: minor-latin;">By Thomas Klem Andersen, Published on April 7 2014</span><br />
<span style="font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 12.0pt; mso-hansi-theme-font: minor-latin;"><br /></span>
<span style="font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 12.0pt; mso-hansi-theme-font: minor-latin;">On March 18th the Swedish Science & Technology Park IDEON hosted a
one-day seminar focusing on practical experience in the area of Open
Innovation. <b><o:p></o:p></b></span></div>
<div class="Body1">
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiCmP7jDlyKILXzhX67TyQRiQppwlNl4IJnr3Ov5E7SqWQH6m9L7LBbsCXDC5qfwz9T5x0tDAle9Vj1dSbu0fZlQCP5eU0rs2h5forPEDzKppRlpzteJ3-Tp-DyBPh6zumyArguJXCOe5Q/s1600/Open+Inspiration+(TM),+illustration+by+Thomas+Klem+Andersen.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiCmP7jDlyKILXzhX67TyQRiQppwlNl4IJnr3Ov5E7SqWQH6m9L7LBbsCXDC5qfwz9T5x0tDAle9Vj1dSbu0fZlQCP5eU0rs2h5forPEDzKppRlpzteJ3-Tp-DyBPh6zumyArguJXCOe5Q/s1600/Open+Inspiration+(TM),+illustration+by+Thomas+Klem+Andersen.JPG" height="320" width="240" /></a></div>
<br /></div>
<div class="Body1">
<span style="font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 12.0pt; mso-hansi-theme-font: minor-latin;">Here’s a few statements from the event to chant as morning prayer
if you want to build a motivation for opening up your innovation activities:<o:p></o:p></span></div>
<div class="Body1">
<br /></div>
<div class="Body1" style="margin-left: 21.0pt; mso-list: l1 level1 lfo1; text-indent: -18.0pt;">
<!--[if !supportLists]--><span style="font-family: "Cambria","serif"; font-size: 11.0pt; mso-bidi-font-family: Cambria; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Cambria;">-<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 12.0pt; mso-hansi-theme-font: minor-latin;">An insignificant number of the world’s
talents work within your company<o:p></o:p></span></div>
<div class="Body1" style="margin-left: 21.0pt; mso-list: l1 level1 lfo1; text-indent: -18.0pt;">
<!--[if !supportLists]--><span style="font-family: "Cambria","serif"; font-size: 11.0pt; mso-bidi-font-family: Cambria; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Cambria;">-<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 12.0pt; mso-hansi-theme-font: minor-latin;">Change will happen <o:p></o:p></span></div>
<div class="Body1" style="margin-left: 21.0pt; mso-list: l1 level1 lfo1; text-indent: -18.0pt;">
<!--[if !supportLists]--><span style="font-family: "Cambria","serif"; font-size: 11.0pt; mso-bidi-font-family: Cambria; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Cambria;">-<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 12.0pt; mso-hansi-theme-font: minor-latin;">Commodification creeps up on you and reduces
margins<o:p></o:p></span></div>
<div class="Body1" style="margin-left: 21.0pt; mso-list: l1 level1 lfo1; text-indent: -18.0pt;">
<!--[if !supportLists]--><span style="font-family: "Cambria","serif"; font-size: 11.0pt; mso-bidi-font-family: Cambria; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Cambria;">-<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 12.0pt; mso-hansi-theme-font: minor-latin;">Customers expect you to improve<o:p></o:p></span></div>
<div class="Body1" style="margin-left: 21.0pt; mso-list: l1 level1 lfo1; text-indent: -18.0pt;">
<!--[if !supportLists]--><span style="font-family: "Cambria","serif"; font-size: 11.0pt; mso-bidi-font-family: Cambria; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Cambria;">-<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 12.0pt; mso-hansi-theme-font: minor-latin;">Competitors work hard to improve faster than
you<o:p></o:p></span></div>
<div class="Body1" style="margin-left: 21.0pt; mso-list: l1 level1 lfo1; text-indent: -18.0pt;">
<!--[if !supportLists]--><span style="font-family: "Cambria","serif"; font-size: 11.0pt; mso-bidi-font-family: Cambria; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Cambria;">-<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 12.0pt; mso-hansi-theme-font: minor-latin;">Your product or service will eventually
decline<o:p></o:p></span></div>
<div class="Body1">
<br /></div>
<div class="Body1">
<span style="font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 12.0pt; mso-hansi-theme-font: minor-latin;">Accordingly in Roy Sandbach’s words: Innovation is the key to
growth and indeed even survival. As the world looks today you better not lock your
innovation initiatives away in your R&D department behind blinded windows
for the sake of secrecy. The same goes for new ventures not opening up for
partners and partnerships fearing for the safety of their supposed original
ideas. Chances are that competition and technology will be far ahead of you and
opportunity windows long gone before you pick up momentum on your own.<o:p></o:p></span></div>
<div class="Body1">
<br /></div>
<div class="Body1">
<b><span style="font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 12.0pt; mso-hansi-theme-font: minor-latin;">Lessons learned:<o:p></o:p></span></b></div>
<div class="Body1" style="margin-left: 21.0pt; mso-list: l0 level1 lfo2; text-indent: -18.0pt;">
<!--[if !supportLists]--><span style="font-family: "Cambria","serif"; font-size: 11.0pt; mso-bidi-font-family: Cambria; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Cambria;">-<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 12.0pt; mso-hansi-theme-font: minor-latin;">Don’t think of your venture or established
company as an independent entity capable of reaching commercial succes in and
of itself.<o:p></o:p></span></div>
<div class="Body1" style="margin-left: 21.0pt; mso-list: l0 level1 lfo2; text-indent: -18.0pt;">
<!--[if !supportLists]--><span style="font-family: "Cambria","serif"; font-size: 11.0pt; mso-bidi-font-family: Cambria; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Cambria;">-<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 12.0pt; mso-hansi-theme-font: minor-latin;">Build strategic relationships and
partnerships to enhance your innovation capability.<o:p></o:p></span></div>
<div class="Body1" style="margin-left: 21.0pt; mso-list: l0 level1 lfo2; text-indent: -18.0pt;">
<!--[if !supportLists]--><span style="font-family: "Cambria","serif"; font-size: 11.0pt; mso-bidi-font-family: Cambria; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Cambria;">-<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 12.0pt; mso-hansi-theme-font: minor-latin;">Design for complementarity in your
partnerships to remove trust barriers and align incentives.<o:p></o:p></span></div>
<div class="Body1" style="margin-left: 21.0pt; mso-list: l0 level1 lfo2; text-indent: -18.0pt;">
<!--[if !supportLists]--><span style="font-family: "Cambria","serif"; font-size: 11.0pt; mso-bidi-font-family: Cambria; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Cambria;">-<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 12.0pt; mso-hansi-theme-font: minor-latin;">Focusing on complementarity enables you to
further strengthen your core competencies and core IP letting you maintain your
competetive edge. <o:p></o:p></span></div>
<div class="Body1">
</div>
<div class="Body1" style="margin-left: 21.0pt; mso-list: l0 level1 lfo2; text-indent: -18.0pt;">
<!--[if !supportLists]--><span style="font-family: "Cambria","serif"; font-size: 11.0pt; mso-bidi-font-family: Cambria; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Cambria;">-<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="font-family: "Cambria","serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 12.0pt; mso-hansi-theme-font: minor-latin;">Hence ’opening up’ is all about strategic incentive
management and win win scenarios. <o:p></o:p></span></div>
Anonymoushttp://www.blogger.com/profile/08359615102122187053noreply@blogger.com0tag:blogger.com,1999:blog-3767844902663353660.post-37065806434815001062014-03-10T02:00:00.000-07:002014-03-10T02:00:01.605-07:00Our Dangerous Obsession With The MVP
<style>
<!--
/* Font Definitions */
@font-face
{font-family:Times;
panose-1:2 0 5 0 0 0 0 0 0 0;
mso-font-charset:0;
mso-generic-font-family:auto;
mso-font-pitch:variable;
mso-font-signature:3 0 0 0 1 0;}
@font-face
{font-family:Cambria;
panose-1:2 4 5 3 5 4 6 3 2 4;
mso-font-charset:0;
mso-generic-font-family:auto;
mso-font-pitch:variable;
mso-font-signature:3 0 0 0 1 0;}
/* Style Definitions */
p.MsoNormal, li.MsoNormal, div.MsoNormal
{mso-style-parent:"";
margin:0cm;
margin-bottom:.0001pt;
mso-pagination:widow-orphan;
font-size:12.0pt;
font-family:"Times New Roman";
mso-ascii-font-family:Cambria;
mso-ascii-theme-font:minor-latin;
mso-fareast-font-family:Cambria;
mso-fareast-theme-font:minor-latin;
mso-hansi-font-family:Cambria;
mso-hansi-theme-font:minor-latin;
mso-bidi-font-family:"Times New Roman";
mso-bidi-theme-font:minor-bidi;}
h1
{mso-style-link:"Heading 1 Char";
margin:0cm;
margin-bottom:.0001pt;
mso-pagination:widow-orphan;
mso-outline-level:1;
font-size:24.0pt;
mso-bidi-font-size:10.0pt;
font-family:"Times New Roman";
mso-ascii-font-family:Times;
mso-hansi-font-family:Times;
mso-bidi-font-family:"Times New Roman";
mso-bidi-theme-font:minor-bidi;
font-weight:bold;
mso-bidi-font-weight:normal;}
a:link, span.MsoHyperlink
{color:blue;
text-decoration:underline;
text-underline:single;}
a:visited, span.MsoHyperlinkFollowed
{mso-style-noshow:yes;
color:purple;
text-decoration:underline;
text-underline:single;}
p
{margin:0cm;
margin-bottom:.0001pt;
mso-pagination:widow-orphan;
font-size:10.0pt;
font-family:"Times New Roman";
mso-ascii-font-family:Times;
mso-fareast-font-family:Cambria;
mso-fareast-theme-font:minor-latin;
mso-hansi-font-family:Times;
mso-bidi-font-family:"Times New Roman";}
span.Heading1Char
{mso-style-name:"Heading 1 Char";
mso-style-locked:yes;
mso-style-link:"Heading 1";
mso-ansi-font-size:24.0pt;
font-family:Times;
mso-ascii-font-family:Times;
mso-hansi-font-family:Times;
mso-font-kerning:18.0pt;
font-weight:bold;
mso-bidi-font-weight:normal;}
span.twitter-handle
{mso-style-name:twitter-handle;}
@page Section1
{size:595.0pt 842.0pt;
margin:72.0pt 90.0pt 72.0pt 90.0pt;
mso-header-margin:36.0pt;
mso-footer-margin:36.0pt;
mso-paper-source:0;}
div.Section1
{page:Section1;}
-->
</style>
<br />
<div class="MsoNormal">
<b><span style="font-size: 11.0pt; mso-bidi-font-size: 10.0pt;"><a href="http://techcrunch.com/2014/03/01/our-dangerous-obsession-with-the-mvp/">TechCrunch blog post </a>March 1, 2014 by Bill Aulet (<a href="http://twitter.com/BillAulet">@BillAulet</a>)</span></b></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<strong><span style="font-family: Cambria; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 12.0pt; mso-hansi-theme-font: minor-latin;">Editor’s note: </span></strong><em><span style="font-family: Cambria; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 12.0pt; mso-hansi-theme-font: minor-latin;">Bill Aulet is the managing director of the <a href="https://entrepreneurship.mit.edu/">Martin Trust Center for MIT
Entrepreneurship</a> and a senior lecturer at the <a href="http://sloan.mit.edu/">MIT Sloan School of Management</a>. He is the
author of the recently released book, <a href="http://www.disciplinedentrepreneurship.com/">Disciplined Entrepreneurship:
24 Steps to a Successful Startup</a>. </span></em></div>
<div class="MsoNormal">
<br /></div>
<div style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt;">
<span style="font-family: Cambria; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 10.0pt; mso-hansi-theme-font: minor-latin;">Building
stuff does not make you a startup.</span></div>
<div style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt;">
<br /></div>
<div style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt;">
<span style="font-family: Cambria; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 10.0pt; mso-hansi-theme-font: minor-latin;">“But don’t
we need to build stuff and iterate quickly?” I get asked a lot.</span></div>
<div style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt;">
<br /></div>
<div style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt;">
<span style="font-family: Cambria; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 10.0pt; mso-hansi-theme-font: minor-latin;">Well, sure.
Once upon a time, when companies used the “old-school” waterfall model to
develop products, pushing entrepreneurs to think in terms of building a minimum
viable product as quickly as possible made sense. It substantially accelerated
the development process. By narrowing the product scope to core features, you
start the customer feedback loop quicker and you can more rapidly iterate based
on that feedback.</span></div>
<div style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt;">
<br /></div>
<div style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt;">
<span style="font-family: Cambria; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 10.0pt; mso-hansi-theme-font: minor-latin;">But the
pendulum has swung too far toward building stuff and away from spending some
time getting to know your customer first. And the result is that more startups
are building blindly, without focus, as well as falling victim to the “IKEA effect.”</span></div>
<div style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt;">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjP2vb1bHZgt0MH_0oCn8lfZ4EC3Ld4FCvOU-Onrd-MUjvwWAi4WKI0lqx2gkRqylwT7ZLoqOutGczKYD6SHb0a7Ei6la4vgVHVQNBh0QUD4Sy0WMvoOxiMiuSGtR2HvAOOubPf2foiRXo/s1600/The+MVP+Pendulum.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjP2vb1bHZgt0MH_0oCn8lfZ4EC3Ld4FCvOU-Onrd-MUjvwWAi4WKI0lqx2gkRqylwT7ZLoqOutGczKYD6SHb0a7Ei6la4vgVHVQNBh0QUD4Sy0WMvoOxiMiuSGtR2HvAOOubPf2foiRXo/s1600/The+MVP+Pendulum.png" height="278" width="400" /></a></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">The IKEA effect, coined by
Michael Norton, Daniel Mochon, and Dan Ariely, is that when you make something
yourself, you value it way more than you should. The <a href="http://hbr.org/web/2009/hbr-list/ikea-effect-when-labor-leads-to-love">trio
did tests showing that amateur origami makers</a> valued their creations as
equal to those made by experts – even though the expert-created pieces were
objectively of a much higher quality. The phrase is named after the well-known
Swedish furniture chain where “some assembly required” is an understatement. As
a result, as soon as we build something, we all tend to move increasingly from
inquiry mode to advocacy mode at the very time where the former is needed and
the latter can blind us.</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: 11.0pt; mso-bidi-font-size: 10.0pt;">As
soon as we build something, we all tend to move increasingly from inquiry mode
to advocacy mode at the very time where the former is needed and the latter can
blind us.</span></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">One of our recent alumni teams,
who will remain nameless for reasons you’ll quickly see, is absolutely in love
with the technology they have created. They have developed some impressive
award-winning technology which has the promise to significantly improve the
Human Computer Interface. They have built a demo that is in high demand, and
each time someone expresses interest in a piece of their technology, they get
excited and add some more to address the interested party’s desire. With their
demo and impressive technological skills, they have gotten money from business
plan competitions and investors, which I think is possibly the worst thing that
could have happened to them.</span></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">Neither the “someone” watching
their demo at a conference nor the business plan judges nor the investors are
paying customers. What the team calls an “MVP” is simply a sexy proof of concept.
They say they are testing hypotheses, but the hypotheses they are testing
relate to technological feasibility. They claim they are “pivoting” – which
means they have run out of business ideas but not money – on a regular basis.
And as a result, they’re not making progress.</span></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">Why are they devoting all their
time and money to building when, as a startup, they have precious few
resources? Because they built it themselves, and they love it, and they’ll be
darned if you tell them their MVP isn’t attracting any paying customers and
that they should instead focus on an honest dialogue about customer needs. They
are too beholden to the IKEA effect. They claim to be in inquiry mode but
really are much more in advocacy mode for what they have developed.</span></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">Compare this to another recent
alumni team, <a href="http://www.finsix.com/">FINsix</a>. The company <a href="http://techland.time.com/2014/01/09/new-laptop-charger-fits-in-your-pocket-has-apple-acquisition-written-all-over-it/">won
recognition and a slew of awards last month at CES for its product</a>, a
miniature laptop power adapter that is a quarter the size of today’s power
bricks.</span></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">But when they first showed up in
my class, they only had a promising technology from the labs. I’m sure that
power supply geeks will be impressed by Very High Frequency (VHF) switching
that is 1000x faster and with a 10x reduction in converter size. “The
elimination of heavy components, like magnetic core transformers, enables
superior resistance to mechanical shock and vibration,” according to their
website, which sounds like a good thing, too.</span></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">However, none of that helps a
well-defined group of customers address a pain that they’re willing to pay
money to address. FINsix recognized that, and so rather than build, build,
build, they took some time to learn about customer needs.</span></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">“We were able to test the [VHF
switching] concept with many different markets using an electronic brochure and
extensive surveying to determine our beachhead market of laptop power
suppliers,” co-founder and CEO Vanessa Green told me. A brochure.</span></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">There is a lot less emotional
investment in an electronic brochure than an MVP that the engineers build. And
their analysis allowed them to consider a range of markets, from cell phones to
LED lighting, before determining that laptop power adapters were the best way
to gain a core group of paying customers that would sustain the company so that
it can develop more products.</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: 11.0pt; mso-bidi-font-size: 10.0pt;">You
can’t develop the right product for your customer if you fall in love with a
prototype that nobody wants to buy.</span></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">Had they fallen in love with
their technology, or the first prototype they built, they may never have gotten
to the point of selling a consumer laptop charger. Think that app makers
are immune to the dangers of an MVP? Sure, an app has less initial investment
required, but otherwise, a business is a business. It’s easier to spin the
roulette wheel when you don’t need as much upfront or sustaining capital, but
that doesn’t mean you have a solid startup.</span></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">You can’t build great products
in the dark, without a well-defined customer. And you can’t develop the right
product for your customer if you fall in love with a prototype that nobody
wants to buy.</span></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">So unless your end game is
hoping that before the money runs out a competitor will buy you for your
engineers or technology, you need to stop obsessively building, and start an
honest dialogue with potential customers about their needs. It may not be as
fun as tinkering with a “product,” but it is far less stressful than playing
the acquisition lottery. That is what we call “disciplined entrepreneurship”
where you can have both great technology and great marketing, leading to epic
products. It is a false dichotomy to think you can only have great technology
or great marketing, as some commenters have recently claimed <a href="http://fpgacomputing.blogspot.com/2013/11/the-stanford-startup-and-mit-startup.html">in
a myopic comparison of Stanford and MIT graduates</a>.</span></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">Think I’m a conservative East
Coast entrepreneurship instructor who’s behind the times? Last week when I was
in San Francisco and chatted with <a href="http://www.crunchbase.com/person/david-bergeron">David Bergeron</a> of <a href="http://www.crunchbase.com/company/t3-advisors">T3 Advisors</a> and Cory
Sistrunk and Ed Hall of Rapt Studio, they were right on the same page. “The MVP
mentality has unintentionally taken us away from ‘user-centered design’ and a
focus on the customer,” they told me. “We <a href="http://www.youtube.com/watch?v=sioZd3AxmnE&sns=em">have to focus on
the WHY</a> before we can focus on the HOW and WHAT.”</span></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">For the entrepreneur, stop
obsessing about your MVP. Your first question, before HOW and WHAT, has
to be “FOR WHOM?”</span></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<br /></div>
<div style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt;">
<br /></div>
<div class="MsoNormal">
<br /></div>
Anonymoushttp://www.blogger.com/profile/08359615102122187053noreply@blogger.com0tag:blogger.com,1999:blog-3767844902663353660.post-73297388036101136502014-03-03T02:30:00.000-08:002014-03-03T02:30:00.368-08:00The Hardware Startup Movement
<style>
<!--
/* Font Definitions */
@font-face
{font-family:Cambria;
panose-1:2 4 5 3 5 4 6 3 2 4;
mso-font-charset:0;
mso-generic-font-family:auto;
mso-font-pitch:variable;
mso-font-signature:3 0 0 0 1 0;}
/* Style Definitions */
p.MsoNormal, li.MsoNormal, div.MsoNormal
{mso-style-parent:"";
margin:0cm;
margin-bottom:.0001pt;
mso-pagination:widow-orphan;
font-size:12.0pt;
font-family:"Times New Roman";
mso-ascii-font-family:Cambria;
mso-ascii-theme-font:minor-latin;
mso-fareast-font-family:Cambria;
mso-fareast-theme-font:minor-latin;
mso-hansi-font-family:Cambria;
mso-hansi-theme-font:minor-latin;
mso-bidi-font-family:"Times New Roman";
mso-bidi-theme-font:minor-bidi;}
@page Section1
{size:595.0pt 842.0pt;
margin:72.0pt 90.0pt 72.0pt 90.0pt;
mso-header-margin:36.0pt;
mso-footer-margin:36.0pt;
mso-paper-source:0;}
div.Section1
{page:Section1;}
--></style><br />
<div class="MsoNormal">
<span style="font-size: 11.0pt; mso-bidi-font-size: 12.0pt;">Excerpts from an <a href="http://undercurrent.com/blog/the-hardware-startup-movement">Undercurrent blog post</a> May 15 2012 </span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: 11.0pt; mso-bidi-font-size: 12.0pt;">The <a href="http://snarkmarket.com/2011/7320"><span style="color: windowtext; text-decoration: none; text-underline: none;">reigning model</span></a> for
entrepreneurs seems to be: </span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal" style="text-align: center;">
<span style="font-size: 11.0pt; mso-bidi-font-size: 12.0pt;">(1)
make software-based (predominately, web-based) tools and (2) scale it up.</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: 11.0pt; mso-bidi-font-size: 12.0pt;">We
see few entrepreneurs pursuing hardware startups, and for good reason.
Challenging the Samsungs, Apples, and GEs of the world seems onerous without
generous capital, long lead times, IP, and research budgets.</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: 11.0pt; mso-bidi-font-size: 12.0pt;">Today,
software is an easier course of action for entrepreneurs. The barriers to entry
are low, with frameworks (Rails, Jquery) and services (Heroku, AWS) making it
dead simple for anyone to take on the technical burden of building an app.
Equipment is easy: a laptop and server. Combine this with the lean startup
ideology and a small, young team can build just about anything within a
reasonable timeframe.</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: 11.0pt; mso-bidi-font-size: 12.0pt;">What's
interesting is that the same dynamics are beginning to shape hardware too. The
forces that made software so alluring to entrepreneurs are finally permeating
to hardware: open source platforms, lower capital requirements, and easier
development.</span></div>
<div class="MsoNormal">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgVm3VV3iAqEoYep1v-tJEO21dElL_-10k5wkXY1QvGmORF5QR-QoHGno4tkLINnxqVZtWjk8z0tRyABkNFmUOT3qzgKqJ-b7MPdBRtAo4HM-DtSkwnNTgpvKo5zlT5rWbHjAH6F0-yXZI/s1600/Bolt.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgVm3VV3iAqEoYep1v-tJEO21dElL_-10k5wkXY1QvGmORF5QR-QoHGno4tkLINnxqVZtWjk8z0tRyABkNFmUOT3qzgKqJ-b7MPdBRtAo4HM-DtSkwnNTgpvKo5zlT5rWbHjAH6F0-yXZI/s1600/Bolt.png" /></a></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;"><span style="font-size: 11.0pt; mso-bidi-font-size: 12.0pt;">Open Source Hardware</span></b></div>
<div class="MsoNormal">
<span style="font-size: 11.0pt; mso-bidi-font-size: 12.0pt;">While
open source software platforms have been commonplace for decades, we're finally
seeing significant progress in hardware. It's allowing for amateurs to build
and manufacture products without significant professional expertise, akin to
emergence of web frameworks that democratized web development over the past
decade. Recent <a href="http://www.adafruit.com/pt/fooeastignite2010.pdf"><span style="color: windowtext; text-decoration: none; text-underline: none;">estimates</span></a> approximate
350 open source hardware projects, the most significant including <a href="http://www.arduino.cc/"><span style="color: windowtext; text-decoration: none; text-underline: none;">Arduino</span></a> (physical computing
platform), <a href="http://www.makerbot.com/"><span style="color: windowtext; text-decoration: none; text-underline: none;">Makerbot</span></a> (3D
printing), and <a href="http://www.sparkfun.com/"><span style="color: windowtext; text-decoration: none; text-underline: none;">Sparkfun</span></a> (electronics).</span></div>
<div class="MsoNormal">
<span style="font-size: 11.0pt; mso-bidi-font-size: 12.0pt;">Many
hardware developers are opening up their designs (e.g., CAD files) and firmware
to allow for a sort of remix culture for hardware. We're not at the point of
"APIs" for hardware, but small communities are quickly building
amazing open source projects. <a href="http://www.wikispeed.com/"><span style="color: windowtext; text-decoration: none; text-underline: none;">Wikispeed</span></a>,
an open-source car, and <a href="http://opensourceecology.org/"><span style="color: windowtext; text-decoration: none; text-underline: none;">Open-source
Ecology</span></a>, industrial machinery, are great examples of this.It's
fueled by the thriving maker movement, a return to making physical
stuff by a growing population of hobbyists and engineers.</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;"><span style="font-size: 11.0pt; mso-bidi-font-size: 12.0pt;">Personal fabrication</span></b></div>
<div class="MsoNormal">
<span style="font-size: 11.0pt; mso-bidi-font-size: 12.0pt;">Hardware
startups can operate on the same principles as lean software startups, quickly
iterating and operating with only a few thousands of dollars in
capital. Prototyping was always problematic—a one-batch run of a product
can be incredibly costly to fabricate, yet it's a necessity to secure funding.
While traditional manufacturing requires labor-intensive tooling and setup, new
technologies such as <a href="http://en.wikipedia.org/wiki/3D_printing"><span style="color: windowtext; text-decoration: none; text-underline: none;">additive
manufacturing</span></a> and <a href="http://en.wikipedia.org/wiki/Numerical_control"><span style="color: windowtext; text-decoration: none; text-underline: none;">CNC tools</span></a> operate
like desktop printers, taking in files and outputting physical objects. Every
garage is a potential high tech factory, making it much easier for an
entrepreneur to move from hardware idea to finished product.</span></div>
<div class="MsoNormal">
<span style="font-size: 11.0pt; mso-bidi-font-size: 12.0pt;">Makerbot,
a $2,000 3D plastic printer, democratizes manufacturing at the consumer level.
The company has managed to drop materials costs down to pennies per cubic
centimeter, a big difference from the industrial printers running at $300,000
per machine and $100 per cubic centimeter of plastic. Mid-tier priced equipment
allows for "Kinko's of manufacturing." <a href="http://www.techshop.ws/"><span style="color: windowtext; text-decoration: none; text-underline: none;">Techshop</span></a>, <a href="http://fab.cba.mit.edu/"><span style="color: windowtext; text-decoration: none; text-underline: none;">Fablab</span></a>, and <a href="http://www.100kgarages.com/"><span style="color: windowtext; text-decoration: none; text-underline: none;">100K Garages</span></a> are all examples of
small, decentralized manufacturing operations where individuals can fabricate
prototypes and end products without approaching traditional factories.</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;"><span style="font-size: 11.0pt; mso-bidi-font-size: 12.0pt;">Long Tail Manufacturing</span></b></div>
<div class="MsoNormal">
<span style="font-size: 11.0pt; mso-bidi-font-size: 12.0pt;">As
with software, lower costs and easier manufacturing will allow access to new
markets for hardware. We're predicting a long tail of manufacturing—niche
hardware products made possible by low volume fabrication, on-demand manufacturing
(and consequently, no inventory), and a shorter learning curve. Economies of
scale is no longer an issue.</span></div>
<div class="MsoNormal">
<span style="font-size: 11.0pt; mso-bidi-font-size: 12.0pt;">This
is substantiated by the numerous hardware projects on Kickstarter without mass
appeal, but sustainable at lower volumes due to greatly reduced costs. </span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: 11.0pt; mso-bidi-font-size: 12.0pt;">Realizing
this future and its potential has a lot to do with the maker movement.
Education seems to be the biggest hurdle, as technology is finally at a place
where cost and capability are not barriers to entry. </span></div>
<div class="MsoNormal">
<br /></div>
Anonymoushttp://www.blogger.com/profile/08359615102122187053noreply@blogger.com0tag:blogger.com,1999:blog-3767844902663353660.post-57805562192805137472014-02-26T02:30:00.000-08:002014-02-26T09:38:45.656-08:00Do you run your business or does it run you?
<style>
<!--
/* Font Definitions */
@font-face
{font-family:Cambria;
panose-1:2 4 5 3 5 4 6 3 2 4;
mso-font-charset:0;
mso-generic-font-family:auto;
mso-font-pitch:variable;
mso-font-signature:3 0 0 0 1 0;}
/* Style Definitions */
p.MsoNormal, li.MsoNormal, div.MsoNormal
{mso-style-parent:"";
margin:0cm;
margin-bottom:.0001pt;
mso-pagination:widow-orphan;
font-size:12.0pt;
font-family:"Times New Roman";
mso-ascii-font-family:Cambria;
mso-ascii-theme-font:minor-latin;
mso-fareast-font-family:Cambria;
mso-fareast-theme-font:minor-latin;
mso-hansi-font-family:Cambria;
mso-hansi-theme-font:minor-latin;
mso-bidi-font-family:"Times New Roman";
mso-bidi-theme-font:minor-bidi;}
@page Section1
{size:612.0pt 792.0pt;
margin:72.0pt 90.0pt 72.0pt 90.0pt;
mso-header-margin:36.0pt;
mso-footer-margin:36.0pt;
mso-paper-source:0;}
div.Section1
{page:Section1;}
-->
</style>
<div class="MsoNormal" style="margin-bottom: 12.0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-size: 11.0pt; mso-bidi-font-size: 10.0pt;"><a href="http://www.startupsmart.com.au/leadership/management/do-you-run-your-business-or-does-it-run-you/2013091010677.html"><span style="color: blue;">Startupsmart-blog post</span></a> by By Amanda
Jesnoewski, Tuesday, 10 September 2013 | </span></b><span style="font-size: 11.0pt; mso-bidi-font-size: 10.0pt;"><br />
<br />
It's one of those questions that can make us squirm isn’t it? Because while we
want to be the one running our business, more often than not it’s our business
that’s running us.</span></div>
<div class="MsoNormal">
<span style="font-size: 11.0pt; mso-bidi-font-size: 10.0pt;">It
dictates how much work we do, when we have a day off and when (or if) we get a
holiday. So how do you make sure you maintain control?</span></div>
<div class="MsoNormal">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiUflM2e5XTmaytbK0-haIYtNMw5q6EUso5u6xSP4irQVX-HKp_n9Dj48u29g_0lU3Iw7GWTzbb2qlBhSf5aGqgGIwIb3ZM4DI6Su7jN9i4BVSEXWODdICwpAvPpDiKsDMrAoNkTyKXZt8/s1600/rat+race.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiUflM2e5XTmaytbK0-haIYtNMw5q6EUso5u6xSP4irQVX-HKp_n9Dj48u29g_0lU3Iw7GWTzbb2qlBhSf5aGqgGIwIb3ZM4DI6Su7jN9i4BVSEXWODdICwpAvPpDiKsDMrAoNkTyKXZt8/s1600/rat+race.jpg" height="187" width="320" /></a></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
</div>
<style>
<!--
/* Font Definitions */
@font-face
{font-family:Cambria;
panose-1:2 4 5 3 5 4 6 3 2 4;
mso-font-charset:0;
mso-generic-font-family:auto;
mso-font-pitch:variable;
mso-font-signature:3 0 0 0 1 0;}
/* Style Definitions */
p.MsoNormal, li.MsoNormal, div.MsoNormal
{mso-style-parent:"";
margin:0cm;
margin-bottom:.0001pt;
mso-pagination:widow-orphan;
font-size:12.0pt;
font-family:"Times New Roman";
mso-ascii-font-family:Cambria;
mso-ascii-theme-font:minor-latin;
mso-fareast-font-family:Cambria;
mso-fareast-theme-font:minor-latin;
mso-hansi-font-family:Cambria;
mso-hansi-theme-font:minor-latin;
mso-bidi-font-family:"Times New Roman";
mso-bidi-theme-font:minor-bidi;}
@page Section1
{size:595.0pt 842.0pt;
margin:72.0pt 90.0pt 72.0pt 90.0pt;
mso-header-margin:36.0pt;
mso-footer-margin:36.0pt;
mso-paper-source:0;}
div.Section1
{page:Section1;}
-->
</style>
<div class="MsoNormal" style="margin-bottom: 12.0pt;">
<span style="font-size: 11.0pt; mso-bidi-font-size: 10.0pt;">Here are four tips to make sure you stay the boss of
your business:<br style="mso-special-character: line-break;" />
<br style="mso-special-character: line-break;" />
</span></div>
<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;"><span style="font-size: 11.0pt; mso-bidi-font-size: 10.0pt;">1. Set boundaries<br />
</span></b><span style="font-size: 11.0pt; mso-bidi-font-size: 10.0pt;">Clearly
defined boundaries are vital to ensuring you maintain control of your business. </span></div>
<div class="MsoNormal" style="margin-bottom: 12.0pt;">
<span style="font-size: 11.0pt; mso-bidi-font-size: 10.0pt;">Establish your publicly perceived work hours and
your actual work hours. Work out your sacred times that are specifically for
family and personal time where no work is allowed. Prioritise what is most
important and make sure that goes on your schedule first.<br style="mso-special-character: line-break;" />
<br style="mso-special-character: line-break;" />
</span></div>
<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;"><span style="font-size: 11.0pt; mso-bidi-font-size: 10.0pt;">2. Get a life<br />
</span></b><span style="font-size: 11.0pt; mso-bidi-font-size: 10.0pt;">Build a
life outside your business too. Many of us have gone into business following
our passion which can make this even harder - because work is fun and enjoyable
to us.</span></div>
<div class="MsoNormal" style="margin-bottom: 12.0pt;">
<span style="font-size: 11.0pt; mso-bidi-font-size: 10.0pt;">Still, we need to make time to explore all that life
has to offer: To enjoy our hobbies, relax on holiday, go out with friends and
family and try new things - without thinking about the next sale or deadline.<br style="mso-special-character: line-break;" />
<br style="mso-special-character: line-break;" />
</span></div>
<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;"><span style="font-size: 11.0pt; mso-bidi-font-size: 10.0pt;">3. Keep business
communication in business hours<br />
</span></b><span style="font-size: 11.0pt; mso-bidi-font-size: 10.0pt;">When
clients and business associates see you contacting them at all hours of the
night and morning, they assume you are always working. Some will even begin to
expect you to be available to them at any time of the day - and it's hard to
change that once a pattern is established.</span></div>
<div class="MsoNormal" style="margin-bottom: 12.0pt;">
<span style="font-size: 11.0pt; mso-bidi-font-size: 10.0pt;">So while you may be working to all hours, try not to
let clients see it, stick to your publicly displayed work hours so your
downtime is well respected.<br />
<br />
If you prefer to write your emails out at night or early in the morning, then
schedule them to send or keep them in your draft folder until the next morning.<br style="mso-special-character: line-break;" />
<br style="mso-special-character: line-break;" />
</span></div>
<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;"><span style="font-size: 11.0pt; mso-bidi-font-size: 10.0pt;">4. Give up some control<br />
</span></b><span style="font-size: 11.0pt; mso-bidi-font-size: 10.0pt;">As business
owners we often fall into the trap of thinking no-one can do it quite like we
do. We're faster, better, more experienced and more thorough.</span></div>
<div class="MsoNormal">
<span style="font-size: 11.0pt; mso-bidi-font-size: 10.0pt;">While
it may be true on some levels, you need to ask yourself what you really want.
Is it to be the quickest, fastest or best at a task or to have the freedom,
lifestyle and flexibility that comes when you free up more of your time? To own
the work or own the system that other people are working for you?<br />
<br />
<br />
So ask yourself honestly, who is in control of your business right now?</span><span style="font-size: 11.0pt; mso-bidi-font-size: 12.0pt;"></span></div>
<span style="font-size: x-small;"><span style="font-family: Arial;"><o:p></o:p></span></span>Anonymoushttp://www.blogger.com/profile/08359615102122187053noreply@blogger.com0tag:blogger.com,1999:blog-3767844902663353660.post-50714691623036331822014-02-17T00:01:00.000-08:002014-02-17T00:01:00.951-08:00The metrics that really matter for hardware startups
<style>
<!--
/* Font Definitions */
@font-face
{font-family:Cambria;
panose-1:2 4 5 3 5 4 6 3 2 4;
mso-font-charset:0;
mso-generic-font-family:auto;
mso-font-pitch:variable;
mso-font-signature:3 0 0 0 1 0;}
/* Style Definitions */
p.MsoNormal, li.MsoNormal, div.MsoNormal
{mso-style-parent:"";
margin:0cm;
margin-bottom:.0001pt;
mso-pagination:widow-orphan;
font-size:12.0pt;
font-family:"Times New Roman";
mso-ascii-font-family:Cambria;
mso-ascii-theme-font:minor-latin;
mso-fareast-font-family:Cambria;
mso-fareast-theme-font:minor-latin;
mso-hansi-font-family:Cambria;
mso-hansi-theme-font:minor-latin;
mso-bidi-font-family:"Times New Roman";
mso-bidi-theme-font:minor-bidi;}
p.MsoListParagraph, li.MsoListParagraph, div.MsoListParagraph
{margin-top:0cm;
margin-right:0cm;
margin-bottom:0cm;
margin-left:36.0pt;
margin-bottom:.0001pt;
mso-add-space:auto;
mso-pagination:widow-orphan;
font-size:12.0pt;
font-family:"Times New Roman";
mso-ascii-font-family:Cambria;
mso-ascii-theme-font:minor-latin;
mso-fareast-font-family:Cambria;
mso-fareast-theme-font:minor-latin;
mso-hansi-font-family:Cambria;
mso-hansi-theme-font:minor-latin;
mso-bidi-font-family:"Times New Roman";
mso-bidi-theme-font:minor-bidi;}
p.MsoListParagraphCxSpFirst, li.MsoListParagraphCxSpFirst, div.MsoListParagraphCxSpFirst
{mso-style-type:export-only;
margin-top:0cm;
margin-right:0cm;
margin-bottom:0cm;
margin-left:36.0pt;
margin-bottom:.0001pt;
mso-add-space:auto;
mso-pagination:widow-orphan;
font-size:12.0pt;
font-family:"Times New Roman";
mso-ascii-font-family:Cambria;
mso-ascii-theme-font:minor-latin;
mso-fareast-font-family:Cambria;
mso-fareast-theme-font:minor-latin;
mso-hansi-font-family:Cambria;
mso-hansi-theme-font:minor-latin;
mso-bidi-font-family:"Times New Roman";
mso-bidi-theme-font:minor-bidi;}
p.MsoListParagraphCxSpMiddle, li.MsoListParagraphCxSpMiddle, div.MsoListParagraphCxSpMiddle
{mso-style-type:export-only;
margin-top:0cm;
margin-right:0cm;
margin-bottom:0cm;
margin-left:36.0pt;
margin-bottom:.0001pt;
mso-add-space:auto;
mso-pagination:widow-orphan;
font-size:12.0pt;
font-family:"Times New Roman";
mso-ascii-font-family:Cambria;
mso-ascii-theme-font:minor-latin;
mso-fareast-font-family:Cambria;
mso-fareast-theme-font:minor-latin;
mso-hansi-font-family:Cambria;
mso-hansi-theme-font:minor-latin;
mso-bidi-font-family:"Times New Roman";
mso-bidi-theme-font:minor-bidi;}
p.MsoListParagraphCxSpLast, li.MsoListParagraphCxSpLast, div.MsoListParagraphCxSpLast
{mso-style-type:export-only;
margin-top:0cm;
margin-right:0cm;
margin-bottom:0cm;
margin-left:36.0pt;
margin-bottom:.0001pt;
mso-add-space:auto;
mso-pagination:widow-orphan;
font-size:12.0pt;
font-family:"Times New Roman";
mso-ascii-font-family:Cambria;
mso-ascii-theme-font:minor-latin;
mso-fareast-font-family:Cambria;
mso-fareast-theme-font:minor-latin;
mso-hansi-font-family:Cambria;
mso-hansi-theme-font:minor-latin;
mso-bidi-font-family:"Times New Roman";
mso-bidi-theme-font:minor-bidi;}
@page Section1
{size:595.0pt 842.0pt;
margin:72.0pt 90.0pt 72.0pt 90.0pt;
mso-header-margin:36.0pt;
mso-footer-margin:36.0pt;
mso-paper-source:0;}
div.Section1
{page:Section1;}
/* List Definitions */
@list l0
{mso-list-id:391664210;
mso-list-type:hybrid;
mso-list-template-ids:-1090067580 67698703 67698713 67698715 67698703 67698713 67698715 67698703 67698713 67698715;}
@list l0:level1
{mso-level-tab-stop:none;
mso-level-number-position:left;
text-indent:-18.0pt;}
@list l1
{mso-list-id:1798136308;
mso-list-type:hybrid;
mso-list-template-ids:-904119492 67698703 67698713 67698715 67698703 67698713 67698715 67698703 67698713 67698715;}
@list l1:level1
{mso-level-tab-stop:none;
mso-level-number-position:left;
text-indent:-18.0pt;}
ol
{margin-bottom:0cm;}
ul
{margin-bottom:0cm;}
-->
</style>
<br />
<div class="MsoNormal">
<b>Blogpost by <a href="http://marcbarros.com/">Marc Barros from Marcbarros.com</a></b><a href="http://img.svbtle.com/5asy66eqzrwsug.jpg"><span style="color: windowtext; text-decoration: none; text-underline: none;"></span></a></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
The hardware revolution is not only challenging the
existence of billion dollar brands, but altering the very metrics we use to
define their success. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Previously held hostage by retail, consumer hardware
companies used to measure their business by the number of units sold, growth in
revenue, points of distribution, and gross margins. Mainly because the hardware
experience ended when the product was shipped to retail, hardware companies
used the only metric they could track: Sales.</div>
<div class="MsoNormal">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhGB8Zs3bxYLgo8EJ3L8e1XUKpAgOfPBlcuDXbExx-hImx6taJS0WMPZ8EVWOiQG5kVuNZohZtSFaGO7QRFKACloav4k_7J1ORbPXndqUCodh9JLTc3r9IbfSmifrqkYpKLsfLpSs0a3jw/s1600/Metrics.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhGB8Zs3bxYLgo8EJ3L8e1XUKpAgOfPBlcuDXbExx-hImx6taJS0WMPZ8EVWOiQG5kVuNZohZtSFaGO7QRFKACloav4k_7J1ORbPXndqUCodh9JLTc3r9IbfSmifrqkYpKLsfLpSs0a3jw/s1600/Metrics.jpg" height="300" width="400" /></a></div>
<div class="MsoNormal">
</div>
<div class="MsoNormal">
At <a href="http://contour.com/"><span style="color: windowtext; text-decoration: none; text-underline: none;">Contour</span></a> I got stuck in
this same trap, and because of it, I build the company in the wrong order. We
often prioritized our retail channels over our customers, and so we focused on
channel growth without really understanding our customers, how often they used
the product, and how to profitably reach more of them. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
The good news for hardware startups is that these metrics
are now irrelevant. The new expectation is that hardware ships with amazing
software, and that means you can track your customers after they buy the
product. This is new for hardware and opens up fantastic opportunities to
measure lifetime customer relationships, metrics that were previously
impossible. </div>
<div class="MsoNormal">
The bad news is that this will expose hardware’s dirty
little secret: Customers buy and then stop using your product. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
If you are building or investing in a consumer hardware
startup you should be thinking about the following metrics.</div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;">Cash Is King</b> <br />
Hardware is a cash-flow business. It takes cash to build your product and when
ready, cash to build your brand. It’s why I’m a big believer that your hardware
<a href="http://marcbarros.com/hardware-mvp-fastest-path-to-cash"><span style="color: windowtext; text-decoration: none; text-underline: none;">MVP is about
the fastest path to cash.</span></a></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
When getting to market all you care about is how much cash
it takes to start shipping your MVP. Whether you raise capital or pre-sell your
product through Kickstarter, most hardware products should get to market for
under $500K. If you have been around the block you can raise additional capital
upfront to make a more robust MVP, but otherwise you want to get your MVP
selling as soon as possible to start driving positive cash flows.</div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Once your product is shipping, and for the entire life cycle
of your company, you care deeply about the cash float between when you get paid
and when you pay your supplier. If your supplier provides 60-90 days of credit
and on average you collect payment in less time (known as your average days
outstanding), you are in good shape. But if not, this float gets very expensive
to fund. Banks will only provide cents on the dollar against existing assets,
while equity requires you to give up big chunks of your company just to fund
customer demand. </div>
<div class="MsoNormal">
Running out of cash is a very expensive problem to fix. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;">Reaching Market Fit</b>
<br />
This is an incredibly important milestone for hardware startups. Not only is it
the point people can’t stop buying your product, but it’s also the point you
understand how to replicate a profitable business model.</div>
<div class="MsoNormal">
Not everyone will agree, but growth is not the most
important metric in reaching market fit. Although growth is great for getting
investors excited, it doesn’t help you fully understand what is and is not
working in your business. In trying to reach market fit you should care about
deeply understanding your customers, why they buy the product, and what works
to grow your customer base.</div>
<div class="MsoNormal">
In addition to cash you will want to track three more
metrics:</div>
<div class="MsoNormal">
<br /></div>
<div class="MsoListParagraph" style="mso-list: l1 level1 lfo1; text-indent: -18.0pt;">
<span style="mso-bidi-font-family: Cambria; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;">1.<span style="font: 7.0pt "Times New Roman";">
</span></span></span>Customer Love <br />
I’m a big believer in <a href="http://www.amazon.com/dp/B00D9TP5EU"><span style="color: windowtext; text-decoration: none; text-underline: none;">Net Promoter
Score (NPS)</span></a>. It is the single metric you should use to measure your
customer even when you only have a few hundred of them.</div>
<div class="MsoNormal">
<br /></div>
<div class="MsoListParagraph" style="mso-list: l1 level1 lfo1; text-indent: -18.0pt;">
<span style="mso-bidi-font-family: Cambria; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;">2.<span style="font: 7.0pt "Times New Roman";">
</span></span></span>Customer Engagement <br />
You want customers who can’t stop using your product because it will help you
learn even faster about why they bought the product, how they use it, and which
features you should be prioritizing. You can track this metric in a variety of
ways, but make sure you pick a single metric that tells you how often they
are/aren’t using your product.</div>
<div class="MsoNormal">
<br /></div>
<div class="MsoListParagraph" style="mso-list: l1 level1 lfo1; text-indent: -18.0pt;">
<span style="mso-bidi-font-family: Cambria; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;">3.<span style="font: 7.0pt "Times New Roman";">
</span></span></span>Customer Acquisition Cost <br />
One of the most expensive parts in building a hardware company is reaching new
customers. You want to understand what is and isn’t working in reaching new
customers, especially early on when you are experimenting with every kind of
marketing channel you can think of. Don’t make the mistake in ignoring how much
it <a href="http://marcbarros.com/the-real-cost-of-retail"><span style="color: windowtext; text-decoration: none; text-underline: none;">costs you to
reach a customer through retail</span></a>. Your true customer acquisition cost
is what you spend in sales/marketing and the margin you give up in selling
through retail. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;">Growing Your Company</b>
<br />
Once you reach market fit you are ready to build a company. It’s a point that
most hardware startups never reach and a point most entrepreneurs will find
less exciting because once you get here, you spend most of your time repeating
the same 18-month cycle: Introduce a new product, advertise it, repeat. </div>
<div class="MsoNormal">
On top of the cash, customer love, customer engagement, and
cost to reach a new customer you should care about four more metrics:</div>
<div class="MsoNormal">
<br /></div>
<div class="MsoListParagraph" style="mso-list: l0 level1 lfo2; text-indent: -18.0pt;">
<span style="mso-bidi-font-family: Cambria; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;">1.<span style="font: 7.0pt "Times New Roman";">
</span></span></span>Market Share <br />
You have to be the brand of choice or you risk losing your very existence.
Investors don’t fund number two without a clear path to how you become number
one in the market.</div>
<div class="MsoNormal">
<br /></div>
<div class="MsoListParagraph" style="mso-list: l0 level1 lfo2; text-indent: -18.0pt;">
<span style="mso-bidi-font-family: Cambria; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;">2.<span style="font: 7.0pt "Times New Roman";">
</span></span></span>Number of Customers <br />
You care about customers, not units. Reaching 100K annual customers with a
single product is important, reaching 2M puts you in a small class, and passing
tens of millions makes you one of the largest hardware players in the world. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoListParagraph" style="mso-list: l0 level1 lfo2; text-indent: -18.0pt;">
<span style="mso-bidi-font-family: Cambria; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;">3.<span style="font: 7.0pt "Times New Roman";">
</span></span></span>Lifetime Value <br />
People get it wrong when they ask how much of your revenue is from hardware vs.
software. The real question is how much is your customer spending with you over
time? Whether it’s from buying another unit, accessories, or paying for your
software doesn’t matter. What matters is that you can continue to drive more
revenue (and profits) from existing customers. Apple and Amazon both
demonstrate how important this metric is. The larger the number, the stronger
the business. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoListParagraph" style="mso-list: l0 level1 lfo2; text-indent: -18.0pt;">
<span style="mso-bidi-font-family: Cambria; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;">4.<span style="font: 7.0pt "Times New Roman";">
</span></span></span>Profits <br />
In hardware profits ultimately drive everything. Not only are they important
for raising working capital, but they allow you to properly re-invest in the
business. A handful of investors will fund losses as you build a massive
empire, but most will demand you are profitable as you scale your business. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;">Conclusion </b><br />
Picking the right metrics for your hardware startup matters. What you track
will shape the decisions you make. Getting these metrics wrong, will leave you
with a company you can’t fund. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
No longer held hostage by retail, hardware startups can
begin measuring their business by the only metric that really matters: their customers.</div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<em>Image Credit: <a href="http://commons.wikimedia.org/wiki/File:TapeMeasure.jpg">Louise Docker</a></em> </div>
<div class="MsoNormal">
<br /></div>
Anonymoushttp://www.blogger.com/profile/08359615102122187053noreply@blogger.com0tag:blogger.com,1999:blog-3767844902663353660.post-37509661777465159212014-02-11T01:08:00.000-08:002014-02-11T01:29:26.034-08:00Bootstrap with a service before launching your product<br />
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">Excerpt from a Havard Business Review <a href="http://blogs.hbr.org/2014/02/start-ups-before-you-launch-your-product-start-with-a-service/"><span style="color: blue;">blog
postby Sramana Mitra</span></a> | 11:00 AM February 3, 2014 </span></b><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><o:p></o:p></span><br />
<u1:p></u1:p>
<br />
<span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">Raising funding for startups in Silicon Valley
is a low probability game. Fewer than 1% who try actually succeed.</span><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><o:p></o:p></span><br />
<u1:p></u1:p>
<br />
<span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">Outside the Valley, the startup eco-systems are
mostly immature, and the probability gets even lower.</span><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><o:p></o:p></span><br />
<u1:p></u1:p>
<br />
<span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">The bar to raise seed funding is getting higher
and higher. Seed investors are mostly operating as growth investors, expecting
that the entrepreneur will somehow manage to bridge the gap and bring a concept
to realization. In fact, what these investors really want is to invest in
businesses that have traction, not just validation.</span><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><o:p></o:p></span><br />
<u1:p></u1:p>
<br />
<span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">In short, they want to come to the rescue of
victory.</span><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><o:p></o:p></span><br />
<u1:p></u1:p>
<br />
<span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">As an entrepreneur, how do you go from concept
to traction? How do you bridge the seed capital gap? What do you do if you are
full of dreams, but stuck in the gap between concept and seed?</span><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><o:p></o:p></span><br />
<u1:p></u1:p>
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiHs8IRC3ZhJ6Xz8T-CXD34uPWgdYPsy5eHlSfE4JAIG_tB68Gqvby41Jmigvjobg6k2w_Mq3e65WMqaKB3-WqoRDSHvgNJH8IlTBd5KK9hNjXeW3MjZzbkenFC_seY3RKnEvWkAG9zCRU/s1600/Bootstrapping2.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiHs8IRC3ZhJ6Xz8T-CXD34uPWgdYPsy5eHlSfE4JAIG_tB68Gqvby41Jmigvjobg6k2w_Mq3e65WMqaKB3-WqoRDSHvgNJH8IlTBd5KK9hNjXeW3MjZzbkenFC_seY3RKnEvWkAG9zCRU/s1600/Bootstrapping2.jpg" /></a><span style="font-family: "Cambria","serif"; font-size: 11pt; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><o:p><span style="font-family: Times New Roman; font-size: small;"> </span></o:p></span></div>
<br />
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">Offering a service is one of the best ways to <a href="http://en.wikipedia.org/wiki/Bootstrapping"><span style="color: blue;">bootstrap</span></a><br />
</span></b><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">This remains a controversial point of view. Most
industry observers take the position that companies get distracted if they try
to bootstrap a product with a service. But from where I sit, bootstrapping
products with services is a tried and true method.</span><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><o:p></o:p></span><br />
<br />
<span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">In our incubation methodology at </span><span style="font-family: "Cambria","serif"; font-size: 11pt; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><a href="http://1m1m.sramanamitra.com/"><span lang="EN-US" style="mso-ansi-language: EN-US; mso-bidi-font-family: Arial;"><span style="color: blue;">1M/1M</span></span></a></span><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">, we actively encourage entrepreneurs to engage in
services businesses. In particular, we encourage them to immerse themselves
with customers, learn their problems, and do some services projects that not
only generate cash, but also generate customer intimacy and trust. Through
these kinds of dialogues, entrepreneurs diagnose real pain-points in customers,
and end up building products that customers are willing to pay for.</span><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><o:p></o:p></span><br />
<u1:p></u1:p>
<br />
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">A couple of examples:</span></b><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><br />
</span><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">AgilOne, a company that provides cloud-based
predictive customer analytics, was founded by Omer Artun in 2006. Initially, the
company relied entirely on services to get close to customers, understand and
address their problems, and in the process generate revenues. Today, AgilOne’s
product is a software-as-a-service platform. Much of what the company learned
about its customers in the services mode has been developed into its product,
although a good percentage of revenues still comes from services.</span><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><o:p></o:p></span><br />
<u1:p></u1:p>
<br />
<span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">Andy Chou, a PhD student at Stanford, also
bootstrapped his company, Coverity, using services. Andy’s research was
financed by DARPA at the university. The technology allows automated cleaning
up of large code-bases, and was licensed back to the company by Stanford.</span><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><o:p></o:p></span><br />
<u1:p></u1:p>
<br />
<span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">Andy recounts his funding story: “We talked to
all of the VCs and told them that if they wanted to invest in us, we would only
consider certain types of deals. We presented them with our range of acceptable
terms and indicated that if we did not receive offers in those ranges, we were
content to continue bootstrapping the company as we had a solid clientele. We
were in a sweet position where we had revenues and did not need to receive
additional investments to succeed. As a result, we got a good deal from
Benchmark Capital. They invested $22.3 million in us in 2007.”</span><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><o:p></o:p></span><br />
<u1:p></u1:p>
<br />
<span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">Both of these companies bootstrapped to
profitability via services. Not only is this a viable method of getting your
startup off the ground, it’s a proven method of reaching profitability, as
well. In some cases, it can take you to the enviable position of having VCs
like Sequoia or Benchmark knock on your door. In other cases, you could even
have investment bankers come calling, wanting to take you public, and a whole
slew of late-stage investors wanting to shower you with funds. All those are
desirable outcomes.</span><br />
<span style="font-family: Cambria;"></span><br />
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span lang="EN-US" style="color: #5c5c5c; font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;">For
other ways to bootstrap find inspiration in this blog post: </span><span style="color: #5c5c5c; font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;"><a href="http://www.alleywatch.com/2013/05/how-to-bootstrap-your-startup/"><span lang="EN-US" style="mso-ansi-language: EN-US;"><span style="color: blue;">How to bootstrap your startup</span></span></a></span><span lang="EN-US" style="color: #5c5c5c; font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin;"> by George Deeb</span><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><o:p></o:p></span></div>
Anonymoushttp://www.blogger.com/profile/08359615102122187053noreply@blogger.com0tag:blogger.com,1999:blog-3767844902663353660.post-54388505440941200492014-02-03T04:50:00.000-08:002014-02-03T04:51:04.574-08:00A world of experience in the form of advice<span lang="EN-US" style="font-size: 11pt; mso-fareast-font-family: "Arial Unicode MS";">Whether you're engaged in a startup or a maturing company,
you most likely often find yourself operating in circumstances chara</span><span lang="EN-US" style="font-size: 11pt;">cterized by extreme uncertainty regardless if
your challenges concern </span><span lang="EN-US" style="font-size: 11pt; mso-fareast-font-family: "Arial Unicode MS";">acquiring </span><span lang="EN-US" style="font-size: 11pt;">new customers, refining your value proposition,
attracting capital etc.<o:p></o:p></span><br />
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span lang="EN-US" style="font-size: 11pt; mso-fareast-font-family: "Arial Unicode MS";">A skil</span><span lang="EN-US" style="font-size: 11pt;">lful
way to deal with uncertainty</span><span lang="EN-US" style="font-size: 11pt; mso-fareast-font-family: "Arial Unicode MS";"> is to plan for fast learning and
systematically test your </span><span lang="EN-US" style="font-size: 11pt;">assumptions
</span><span lang="EN-US" style="font-size: 11pt; mso-fareast-font-family: "Arial Unicode MS";">in
order to </span><span lang="EN-US" style="font-size: 11pt;">either validate or
change them</span><span lang="EN-US" style="font-size: 11pt; mso-fareast-font-family: "Arial Unicode MS";">. A simple and extremely useful way to do this is to talk
to those who</span><span lang="EN-US" style="font-size: 11pt;">m</span><span lang="EN-US" style="font-size: 11pt; mso-fareast-font-family: "Arial Unicode MS";">
you expect to be your primary customers.<span style="mso-spacerun: yes;">
</span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span lang="EN-US" style="font-size: 11pt; mso-fareast-font-family: "Arial Unicode MS";">Another powerful way to accelerate learning is to establi</span><span lang="EN-US" style="font-size: 11pt;">sh a relationship to accomplished</span><span lang="EN-US" style="font-size: 11pt; mso-fareast-font-family: "Arial Unicode MS";">
individuals who </span><span lang="EN-US" style="font-size: 11pt;">are willing to
lend their experience</span><span lang="EN-US" style="font-size: 11pt; mso-fareast-font-family: "Arial Unicode MS";"> and insight to the venture you are
undertaking. That is</span><span lang="EN-US" style="font-size: 11pt;">;</span><span lang="EN-US" style="font-size: 11pt; mso-fareast-font-family: "Arial Unicode MS";">
entering a mentor relationship. If you </span><span lang="EN-US" style="font-size: 11pt;">manage to </span><span lang="EN-US" style="font-size: 11pt; mso-fareast-font-family: "Arial Unicode MS";">build trustful relations to
mentors they will apply the world of their experience to your venture in the
form of </span><span lang="EN-US" style="font-size: 11pt;">valuable </span><span lang="EN-US" style="font-size: 11pt; mso-fareast-font-family: "Arial Unicode MS";">advice.<o:p></o:p></span></div>
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEidOIT4AjhbCpr7YasqN6XfskGTrc6MM-7YGh-QZ1IHJqBERya4mGaxcrx0nvVzVMUGdYHyRtWU02R6S7WVzXBAHZRuc3XhcyqUvLnI11aE1kKZEwJGfgzbbgP1T-VLMDyT_bplPDsF9WU/s1600/En+hj%C3%A6lpende+h%C3%A5nd.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEidOIT4AjhbCpr7YasqN6XfskGTrc6MM-7YGh-QZ1IHJqBERya4mGaxcrx0nvVzVMUGdYHyRtWU02R6S7WVzXBAHZRuc3XhcyqUvLnI11aE1kKZEwJGfgzbbgP1T-VLMDyT_bplPDsF9WU/s1600/En+hj%C3%A6lpende+h%C3%A5nd.jpg" /></a></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span lang="EN-US" style="font-size: 11pt;">However good
mentor relationships don’t just evolve by themselves. So what do you need to
consider to build such relationships? Here are 10 basic principles formulated
by <a href="https://www.blogger.com/profile/02310305711437204301"><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Arial","sans-serif"; mso-ansi-font-size: 11.0pt; mso-bidi-font-family: "Times New Roman";"><span style="color: blue;">Martin
Zwilling</span></span></b></a> on his<span lang="EN-US" style="font-family: "Times New Roman","serif"; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"> <a href="http://blog.startupprofessionals.com/2013/12/10-steps-to-productive-mentor-mentee.html"><span style="font-family: Arial;"><span style="color: blue;"><b style="mso-bidi-font-weight: normal;"><span style="mso-ansi-font-size: 11.0pt; mso-ascii-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman";">Startup Professionals </span></b><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Arial","sans-serif"; mso-ansi-font-size: 11.0pt; mso-bidi-font-family: "Times New Roman";">blog</span></b></span></span></a>
for</span> both the mentor and mentee to remember to get the most out of any mentoring
relationship: <o:p></o:p></span></div>
<br />
<ol start="1" style="margin-top: 0cm;" type="1">
<li class="MsoNormal" style="margin: 0cm 0cm 0pt; mso-list: l0 level1 lfo1;"><span lang="EN-US" style="font-size: 11pt; mso-fareast-font-family: "Arial Unicode MS";">Good
mentoring requires <b style="mso-bidi-font-weight: normal;">building a
relationship first</b>. A positive business or personal relationship between
two people normally requires a high degree of shared values, common
interests, and mutual respect. Remember that good relationships take some
time to develop, so don’t assume that your first discussion will seal the
deal. <o:p></o:p></span></li>
<li class="MsoNormal" style="margin: 0cm 0cm 0pt; mso-list: l0 level1 lfo1;"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-size: 11pt; mso-fareast-font-family: "Arial Unicode MS";">Agree on specific objectives and time frames</span></b><span lang="EN-US" style="font-size: 11pt; mso-fareast-font-family: "Arial Unicode MS";">.
Mentoring that consists of random discussions is not very satisfying for
either side. I recommend one or more early discussions of mutual
objectives, with a written summary of goals and expectations from the
mentee to the mentor, with timeframes and milestones. <o:p></o:p></span></li>
<li class="MsoNormal" style="margin: 0cm 0cm 0pt; mso-list: l0 level1 lfo1;"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-size: 11pt; mso-fareast-font-family: "Arial Unicode MS";">Make efficient use of time for both parties</span></b><span lang="EN-US" style="font-size: 11pt; mso-fareast-font-family: "Arial Unicode MS";">.
This means being respectful and diligent about scheduling and keeping
appointments, and returning emails and phone calls. Don’t attempt to
multitask, or allow constant interruptions, during meetings. Book
follow-up sessions, with an agenda, rather than fill time with random
discussions. <o:p></o:p></span></li>
<li class="MsoNormal" style="margin: 0cm 0cm 0pt; mso-list: l0 level1 lfo1;"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-size: 11pt; mso-fareast-font-family: "Arial Unicode MS";">Identify strengths and weaknesses early</span></b><span lang="EN-US" style="font-size: 11pt; mso-fareast-font-family: "Arial Unicode MS";">.
Both the mentor and mentee should put their cards on the table, to avoid
surprises later. Then both should look for opportunities to leverage
strengths, and shore up weaknesses. This avoids wasted time and
speculation, and provides the motivation to bring in other experts or
mentors as required. <o:p></o:p></span></li>
<li class="MsoNormal" style="margin: 0cm 0cm 0pt; mso-list: l0 level1 lfo1;"><span lang="EN-US" style="font-size: 11pt; mso-fareast-font-family: "Arial Unicode MS";">Mentor<b style="mso-bidi-font-weight: normal;"> feedback must be thoughtful,
specific, timely, and constructive</b>. An important aspect of a mentoring
relationship is how the mentor provides feedback to the mentee. Formulate
negative feedback in a constructive fashion. Using open-ended questions
that start with “how” or “what” help the mentee to arrive at their own solution.
<o:p></o:p></span></li>
<li class="MsoNormal" style="margin: 0cm 0cm 0pt; mso-list: l0 level1 lfo1;"><span lang="EN-US" style="font-size: 11pt; mso-fareast-font-family: "Arial Unicode MS";">Mentees
should <b style="mso-bidi-font-weight: normal;">avoid any defensive reaction
to feedback.</b> The right response to most mentor feedback is a
thoughtful question for clarification. Immediately responding with
“reasons and rationale” to every feedback will be read as insincerity, and
will likely end the mentoring relationship quickly. <o:p></o:p></span></li>
<li class="MsoNormal" style="margin: 0cm 0cm 0pt; mso-list: l0 level1 lfo1;"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-size: 11pt; mso-fareast-font-family: "Arial Unicode MS";">Practice two-way communication and candid feedback.</span></b><span lang="EN-US" style="font-size: 11pt; mso-fareast-font-family: "Arial Unicode MS";">
Mentoring is not a series of monologues and lectures, from either side.
But candid feedback means not pulling punches when they are deserved. Both
sides need to practice active listening and thoughtful questions. Constructive
conflict is good. <o:p></o:p></span></li>
<li class="MsoNormal" style="margin: 0cm 0cm 0pt; mso-list: l0 level1 lfo1;"><span lang="EN-US" style="font-size: 11pt;">Agree to <b style="mso-bidi-font-weight: normal;">deal
with unforeseen challenges openly</b>. The most common challenges involve
time and accessibility demands on either side, or the level of help
expected. Both sides need to honor business boundaries, and not stray into
personal relationship issues. Agree up front on how to end the
relationship if other unforeseen circumstances arise.</span><span lang="EN-US" style="font-size: 11pt; mso-fareast-font-family: "Arial Unicode MS";"><o:p></o:p></span></li>
<li class="MsoNormal" style="margin: 0cm 0cm 0pt; mso-list: l0 level1 lfo1;"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-size: 11pt;">Celebrate successes, and
deal openly with failures</span></b><span lang="EN-US" style="font-size: 11pt;">. This will help the learning process and build the mentee’s
confidence. With patience and time, the partners should develop a good
rapport and become more comfortable with openly and freely conversing with
each other.</span><span lang="EN-US" style="font-size: 11pt; mso-fareast-font-family: "Arial Unicode MS";"><o:p></o:p></span></li>
<li class="MsoNormal" style="margin: 0cm 0cm 0pt; mso-list: l0 level1 lfo1;"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-size: 11pt; mso-fareast-font-family: "Arial Unicode MS";">Evaluate mentoring requirements on a regular basis</span></b><span lang="EN-US" style="font-size: 11pt; mso-fareast-font-family: "Arial Unicode MS";">.
The mentee, as primary beneficiary, should be proactive in making sure the
review process occurs on a regular basis, perhaps quarterly. This allows
for frank discussion of unanticipated changes, and the potential for
discontinuing the process and declaring success. <o:p></o:p></span></li>
</ol>
<span lang="EN-US" style="font-size: 11pt; mso-fareast-font-family: "Arial Unicode MS";"></span><br />
<span lang="EN-US" style="font-size: 11pt; mso-fareast-font-family: "Arial Unicode MS";">Martin concludes:<o:p></o:p></span><br />
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span lang="EN-US" style="font-size: 11pt; mso-fareast-font-family: "Arial Unicode MS";">“The end of a mentoring relationship should be seen as an
opportunity to review what did and didn’t work, and more importantly, to
reflect on the results, so that every lesson that can be learned from the
relationship is recognized. <o:p></o:p></span></div>
<span lang="EN-US" style="font-size: 11pt; mso-fareast-font-family: "Arial Unicode MS";"><o:p> </o:p></span><br />
<span lang="EN-US" style="font-size: 11pt; mso-fareast-font-family: "Arial Unicode MS";">Both the mentor and mentee should celebrate the successes,
review the learning from failures, and conclude the relationship with positive
feelings. To bring it full circle, mentees should now consider passing on their
new knowledge and skills by entering a new mentoring relationship – as a
mentor. That’s the ultimate satisfaction.”<o:p></o:p></span>Anonymoushttp://www.blogger.com/profile/08359615102122187053noreply@blogger.com0tag:blogger.com,1999:blog-3767844902663353660.post-89076490264162415922014-01-20T00:05:00.000-08:002014-01-20T00:32:58.808-08:00A secret sauce for running Lean?<style>
<!--
/* Font Definitions */
@font-face
{font-family:"Courier New";
panose-1:2 7 3 9 2 2 5 2 4 4;
mso-font-charset:0;
mso-generic-font-family:auto;
mso-font-pitch:variable;
mso-font-signature:3 0 0 0 1 0;}
@font-face
{font-family:Times;
panose-1:2 0 5 0 0 0 0 0 0 0;
mso-font-charset:0;
mso-generic-font-family:auto;
mso-font-pitch:variable;
mso-font-signature:3 0 0 0 1 0;}
@font-face
{font-family:Wingdings;
panose-1:5 2 1 2 1 8 4 8 7 8;
mso-font-charset:2;
mso-generic-font-family:auto;
mso-font-pitch:variable;
mso-font-signature:0 0 65536 0 -2147483648 0;}
@font-face
{font-family:Cambria;
panose-1:2 4 5 3 5 4 6 3 2 4;
mso-font-charset:0;
mso-generic-font-family:auto;
mso-font-pitch:variable;
mso-font-signature:3 0 0 0 1 0;}
/* Style Definitions */
p.MsoNormal, li.MsoNormal, div.MsoNormal
{mso-style-parent:"";
margin:0cm;
margin-bottom:.0001pt;
mso-pagination:widow-orphan;
font-size:12.0pt;
font-family:"Times New Roman";
mso-fareast-font-family:"Times New Roman";
mso-bidi-font-family:"Times New Roman";
mso-ansi-language:EN-US;}
a:link, span.MsoHyperlink
{color:blue;
text-decoration:underline;
text-underline:single;}
a:visited, span.MsoHyperlinkFollowed
{mso-style-noshow:yes;
color:purple;
text-decoration:underline;
text-underline:single;}
p
{margin:0cm;
margin-bottom:.0001pt;
mso-pagination:widow-orphan;
font-size:10.0pt;
font-family:"Times New Roman";
mso-ascii-font-family:Times;
mso-fareast-font-family:"Times New Roman";
mso-hansi-font-family:Times;
mso-bidi-font-family:"Times New Roman";}
@page Section1
{size:595.3pt 841.9pt;
margin:2.0cm 2.0cm 2.0cm 2.0cm;
mso-header-margin:35.45pt;
mso-footer-margin:42.5pt;
mso-paper-source:0;}
div.Section1
{page:Section1;}
/* List Definitions */
@list l0
{mso-list-id:1499615530;
mso-list-type:hybrid;
mso-list-template-ids:1645007318 1059213148 67698691 67698693 67698689 67698691 67698693 67698689 67698691 67698693;}
@list l0:level1
{mso-level-number-format:bullet;
mso-level-text:-;
mso-level-tab-stop:none;
mso-level-number-position:left;
margin-left:21.0pt;
text-indent:-18.0pt;
mso-ansi-font-size:12.0pt;
font-family:Cambria;
mso-fareast-font-family:Cambria;
mso-fareast-theme-font:minor-latin;
mso-bidi-font-family:"Times New Roman";
mso-bidi-theme-font:minor-bidi;
color:black;}
ol
{margin-bottom:0cm;}
ul
{margin-bottom:0cm;}
--></style><strong>By Thomas Klem Andersen, Published on January 20th 2014</strong><br />
<br />
<div style="margin: 0.1pt 0cm;">
<span lang="EN-US" style="font-family: Cambria; font-size: 11pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 10.0pt; mso-hansi-theme-font: minor-latin;">Last week the <a href="http://www.meetup.com/Copenhagenleanstartup/">Copenhagen
Lean Startup Circle</a> and <a href="http://www.siliconvikings.com/">Silicon
Vikings</a> co-hosted yet another interesting event on the Lean Startup
concept. This time at <a href="http://cse.cbs.dk/">Copenhagen School of
Entrepreneurship</a> (CSE) headlining Ash Maurya who has authored the Lean
Startup methodology book <a href="http://runninglean.co/">Running Lean</a>.</span></div>
<div style="margin: 0.1pt 0cm;">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEizhItsmt2jxpYYng1n4CvmGnMoKpyzeyJvsSJ2UUlmmi-ekiMf3_M8TNKWjCTtYO8PTfP6TEAjwjeLWqpkVD0YHTSKt2DXDuIWEbwyrMCz6EHiNLufBr37qbXfnORi_lsbFNA57KltHIM/s1600/Running+Lean.jpeg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEizhItsmt2jxpYYng1n4CvmGnMoKpyzeyJvsSJ2UUlmmi-ekiMf3_M8TNKWjCTtYO8PTfP6TEAjwjeLWqpkVD0YHTSKt2DXDuIWEbwyrMCz6EHiNLufBr37qbXfnORi_lsbFNA57KltHIM/s1600/Running+Lean.jpeg" height="320" width="183" /></a></div>
<div style="margin: 0.1pt 0cm;">
<br /></div>
<div style="margin: 0.1pt 0cm;">
<span lang="EN-US" style="font-family: Cambria; font-size: 11pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 10.0pt; mso-hansi-theme-font: minor-latin;"> Ash is a serial entrepreneur and a keen ambassador for the Lean Startup
movement, which is sweeping the startup world at the moment. He is the creator
of the <a href="http://practicetrumpstheory.com/2010/08/businessmodelcanvas/">Lean
Canvas</a> (start your own <a href="http://leanstack.com/">here</a>), author of
the books Running Lean and the Customer Factory (in process). Back in December
2013, he headlined the Lean Startup Conference in San Francisco and he is
behind one of the most read startup blogs in the world: <a href="http://www.practicetrumpstheory.com/">www.practicetrumpstheory.com</a>.</span></div>
<div style="margin: 0.1pt 0cm;">
<br /></div>
<div style="margin: 0.1pt 0cm;">
<span lang="EN-US" style="font-family: Cambria; font-size: 11pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 10.0pt; mso-hansi-theme-font: minor-latin;">In his own words his Lean journey started when confronted with the works
on Customer Development and Lean Startup pioneered by Steve Blank and Eric
Ries. He joined in on the conversation and started applying and testing the
principles on his own ventures all the while sharing his learnings on his blog
mentioned above. The blog eventually turned into the Running Lean book aimed at
<b><span style="font-family: Cambria; font-weight: normal; mso-ascii-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">helping entrepreneurs
raise their odds of success</span></b><b style="mso-bidi-font-weight: normal;">.</b></span></div>
<div style="margin: 0.1pt 0cm;">
<br /></div>
<div style="margin: 0.1pt 0cm;">
<span lang="EN-US" style="font-family: Cambria; font-size: 11pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 10.0pt; mso-hansi-theme-font: minor-latin;">At CSE Ash shared some of the insights from his book. Here I will share
what I took with me from the event:</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: Cambria; font-size: 11pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 12.0pt; mso-hansi-theme-font: minor-latin;">The myth
about the perfect idea and the visionary entrepreneur</span></b></div>
<div class="MsoNormal">
<span lang="EN-US" style="font-family: Cambria; font-size: 11pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 12.0pt; mso-hansi-theme-font: minor-latin;">Entrepreneurial success is not so much about starting with the
perfect idea. Rather it is a question of arriving at a plan that works before
you run out of resources. For this you need to be willing to learn and you need
to be ready to do it fast. In contrast to the glamour picture of the
entrepreneurial genius, most successes are based on a lot of failures and learnings
along the way.</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: Cambria; font-size: 11pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 12.0pt; mso-hansi-theme-font: minor-latin;">Some principles
of Running Lean</span></b></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal" style="margin-left: 21pt; mso-list: l0 level1 lfo1; text-indent: -18pt;">
<span lang="EN-US" style="color: black; font-family: Cambria; mso-bidi-font-family: Cambria; mso-fareast-font-family: Cambria;"><span style="mso-list: Ignore;">-<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span lang="EN-US" style="font-family: Cambria; font-size: 11pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 12.0pt; mso-hansi-theme-font: minor-latin;">Plan for
systematic learning</span></div>
<div class="MsoNormal" style="margin-left: 21pt;">
<span lang="EN-US" style="font-family: Cambria; font-size: 11pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 12.0pt; mso-hansi-theme-font: minor-latin;">To be a
systematic learner you need to find ways to test your assumptions and visions.
You also need to be aware of the fact that entrepreneurs often fail to see the
entire business potential of initial and even mature ideas.</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal" style="margin-left: 21pt; mso-list: l0 level1 lfo1; text-indent: -18pt;">
<span lang="EN-US" style="color: black; font-family: Cambria; mso-bidi-font-family: Cambria; mso-fareast-font-family: Cambria;"><span style="mso-list: Ignore;">-<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span lang="EN-US" style="font-family: Cambria; font-size: 11pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 12.0pt; mso-hansi-theme-font: minor-latin;">Listen to
customers</span></div>
<div class="MsoNormal" style="margin-left: 21pt;">
<span lang="EN-US" style="font-family: Cambria; font-size: 11pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 12.0pt; mso-hansi-theme-font: minor-latin;">A simple way
to design for fast learning, which is key to the lean startup concept is
talking and genuinely listening to customers. By doing so you can learn about
their problems and start figuring out how to solve them. The most important entrepreneurial
mantra in this context is: You don't need to build a solution to validate if
you've found a problem worth solving! Simply ask your customers. This practice
can save you a lot of time and a lot of wasted resources and thus get you
running Lean.</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal" style="margin-left: 21pt; mso-list: l0 level1 lfo1; text-indent: -18pt;">
<span lang="EN-US" style="color: black; font-family: Cambria; mso-bidi-font-family: Cambria; mso-fareast-font-family: Cambria;"><span style="mso-list: Ignore;">-<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span lang="EN-US" style="font-family: Cambria; font-size: 11pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 12.0pt; mso-hansi-theme-font: minor-latin;">Test to
learn</span></div>
<div class="MsoNormal" style="margin-left: 21pt;">
<span lang="EN-US" style="font-family: Cambria; font-size: 11pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 12.0pt; mso-hansi-theme-font: minor-latin;">Document
your plan. Knowing what you are doing and how you are doing it, while measuring
for progress will let you test the plan in order to change it for the better.
This includes testing solution and product feasibility, testing customer demand
and testing business model repeatability etc.</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal" style="margin-left: 21pt; mso-list: l0 level1 lfo1; text-indent: -18pt;">
<span lang="EN-US" style="color: black; font-family: Cambria; mso-bidi-font-family: Cambria; mso-fareast-font-family: Cambria;"><span style="mso-list: Ignore;">-<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span lang="EN-US" style="font-family: Cambria; font-size: 11pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 12.0pt; mso-hansi-theme-font: minor-latin;">De-risk your
business model</span></div>
<div class="MsoNormal" style="margin-left: 21pt;">
<span lang="EN-US" style="font-family: Cambria; font-size: 11pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 12.0pt; mso-hansi-theme-font: minor-latin;">Identify the
riskiest parts of your plan and work systematically on de-risking your product
and business model</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal" style="margin-left: 21pt; mso-list: l0 level1 lfo1; text-indent: -18pt;">
<span lang="EN-US" style="color: black; font-family: Cambria; mso-bidi-font-family: Cambria; mso-fareast-font-family: Cambria;"><span style="mso-list: Ignore;">-<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span lang="EN-US" style="font-family: Cambria; font-size: 11pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 12.0pt; mso-hansi-theme-font: minor-latin;">‘Canvas’
your plan</span></div>
<div class="MsoNormal" style="margin-left: 21pt;">
<span lang="EN-US" style="font-family: Cambria; font-size: 11pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 12.0pt; mso-hansi-theme-font: minor-latin;">An easy way
to do this is to work with the Lean canvas which condenses a business plan to
one sheet and brakes it down into workable elements. </span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: Cambria; font-size: 11pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 12.0pt; mso-hansi-theme-font: minor-latin;">There’s no
secret sauce and no silver bullet</span></b></div>
<div class="MsoNormal">
<span lang="EN-US" style="font-family: Cambria; font-size: 11pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 12.0pt; mso-hansi-theme-font: minor-latin;">There's no guarantee for success but living by the Lean principles
will raise the odds of it. However as Ash put it: You should never take the
Lean principles on faith. You have to go test them out for yourself! Running
Lean is not a theory, it is build on experience and requires hard work, strong
intention and an attitude supportive of learning, focus and speed. Thus Ash supports
Steve Blank’s urging mantra for entrepreneurs to get out of the building which
is clearly emphasized by the title of his blog: Practice trumps theory! </span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<br /></div>
Anonymoushttp://www.blogger.com/profile/08359615102122187053noreply@blogger.com0tag:blogger.com,1999:blog-3767844902663353660.post-81412151741567446272014-01-12T13:03:00.001-08:002014-01-12T13:07:54.645-08:004 Things Investors Need to Know About Your Startup<style>
<!--
/* Font Definitions */
@font-face
{font-family:Cambria;
panose-1:2 4 5 3 5 4 6 3 2 4;
mso-font-charset:0;
mso-generic-font-family:auto;
mso-font-pitch:variable;
mso-font-signature:3 0 0 0 1 0;}
/* Style Definitions */
p.MsoNormal, li.MsoNormal, div.MsoNormal
{mso-style-parent:"";
margin:0cm;
margin-bottom:.0001pt;
mso-pagination:widow-orphan;
font-size:12.0pt;
font-family:"Times New Roman";
mso-ascii-font-family:Cambria;
mso-ascii-theme-font:minor-latin;
mso-fareast-font-family:Cambria;
mso-fareast-theme-font:minor-latin;
mso-hansi-font-family:Cambria;
mso-hansi-theme-font:minor-latin;
mso-bidi-font-family:"Times New Roman";
mso-bidi-theme-font:minor-bidi;}
@page Section1
{size:595.0pt 842.0pt;
margin:72.0pt 90.0pt 72.0pt 90.0pt;
mso-header-margin:36.0pt;
mso-footer-margin:36.0pt;
mso-paper-source:0;}
div.Section1
{page:Section1;}
-->
</style>
<br />
<div class="MsoNormal">
<a href="https://www.blogger.com/blogger.g?blogID=3767844902663353660" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"></a><a href="https://www.blogger.com/blogger.g?blogID=3767844902663353660" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"></a><b style="mso-bidi-font-weight: normal;"><span style="font-size: 11.0pt; mso-bidi-font-size: 12.0pt;"></span></b><b><span style="font-size: 11.0pt; mso-bidi-font-size: 12.0pt;"><a href="http://www.entrepreneur.com/article/230523">Entrepreneur blog post</a> by
<a href="http://www.entrepreneur.com/author/sharon-wienbar"><span style="color: windowtext; text-decoration: none; text-underline: none;">Sharon
Wienbar</span></a> | December 26, 2013| </span></b></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: 11.0pt; mso-bidi-font-size: 12.0pt;">Angels,
venture capitalists, private equity firms and mutual funds all evaluate
investments on the same four basic criteria. At the various stages of a
company's evolution from brilliant-insight baby to billion-dollar behemoth,
those investors will weigh your attributes differently.</span></div>
<div class="MsoNormal">
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEizM8egJ7k84pOa2DySGxgn8jk_hgJOaYpjRklCNEpUj4PfDZ-porxoPwtTBTYZzyXlG_97KXyhCsc8jvb3gRhLEKBKhiBt8PY2A5WhgzkCWW-NXXZPSAVlztNmpAsUsjW98Tfip_CuosA/s1600/startup-pitch.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEizM8egJ7k84pOa2DySGxgn8jk_hgJOaYpjRklCNEpUj4PfDZ-porxoPwtTBTYZzyXlG_97KXyhCsc8jvb3gRhLEKBKhiBt8PY2A5WhgzkCWW-NXXZPSAVlztNmpAsUsjW98Tfip_CuosA/s1600/startup-pitch.jpg" height="190" width="320" /></a></div>
<br /></div>
<div class="MsoNormal">
</div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: 11.0pt; mso-bidi-font-size: 12.0pt;">When
you pitch your company for funding, focus on these four topics:</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;"><span style="font-size: 11.0pt; mso-bidi-font-size: 12.0pt;">Our strategy is sustainably
differentiated. </span></b></div>
<div class="MsoNormal">
<div class="separator" style="clear: both; text-align: center;">
</div>
<span style="font-size: 11.0pt; mso-bidi-font-size: 12.0pt;">Demonstrate
what's special about your company and how you'll keep that strong position. Is
your offering fresh and different with a unique solution for the customer? Are
your costs structurally lower or your service super fast because you invented
incredible algorithms? </span></div>
<div class="MsoNormal">
<span style="font-size: 11.0pt; mso-bidi-font-size: 12.0pt;">Show
that you have something different from the pack, and that is what your target
market wants. Some businesses grow and thrive with execution being their main
differentiator: think high-volume selling or complex logistics businesses. If
execution is your pitch for why you're different, be sure your track record
backs that up.</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;"><span style="font-size: 11.0pt; mso-bidi-font-size: 12.0pt;">We are the right team for
this endeavor.</span></b><span style="font-size: 11.0pt; mso-bidi-font-size: 12.0pt;">
<br />
For early stage companies, the team is the most important aspect an investor
considers, as your market and product may not exist yet. What unique
combination of skills and experience makes your leaders the potential winners?
As you scale your business, your execution will demonstrate why you're right
for the job.</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;"><span style="font-size: 11.0pt; mso-bidi-font-size: 12.0pt;">Our business model will make
money.</span></b><span style="font-size: 11.0pt; mso-bidi-font-size: 12.0pt;"> </span></div>
<div class="MsoNormal">
<span style="font-size: 11.0pt; mso-bidi-font-size: 12.0pt;">Money
-- profits and cash flow -- are ultimately what create value. On your way to
profitability, your company may become strategically valuable, and might be
acquired early or IPO when public investors believe you will become profitable
soon. You have to show how your business model -- the costs to acquire and
serve customers -- will be profitable. Understand the margin structure of
comparable companies, and show how you will track versus their paths.</span></div>
<div class="MsoNormal">
<span style="font-size: 11.0pt; mso-bidi-font-size: 12.0pt;">Later-stage
companies and investors focus on the financials. Public investors might screen
almost exclusively on your financials, looking for expanding margins and profit
growth. For younger companies, your target model and cash needed to break even
are foremost concerns.</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;"><span style="font-size: 11.0pt; mso-bidi-font-size: 12.0pt;">Market size.</span></b><span style="font-size: 11.0pt; mso-bidi-font-size: 12.0pt;"> </span></div>
<div class="MsoNormal">
<span style="font-size: 11.0pt; mso-bidi-font-size: 12.0pt;">Investors
want to know that your company has plenty of room to grow. "You can't make
a big company in a small market," was one of my first VC lessons. For the
nascent markets startups try to create, there is no current market size, so
focus on the total addressable market. TAM measures the potential annual
revenue for your industry -- it is NOT an estimate of your company's potential.</span></div>
<div class="MsoNormal">
<span style="font-size: 11.0pt; mso-bidi-font-size: 12.0pt;">Markets
can be sized "bottoms up" or "tops down." Try both methods
to check if your assumptions are reasonable. Typically, tops down-sizing
crudely estimates a market by analogy or relative sizing, e.g., "Product X
is a management solution for customers using technology Y. Technology Y is a $1
billion annual market, and an add-on management solution deserves 20 percent of
the core target spend, so the TAM for Product X is $200 million."</span></div>
<div class="MsoNormal">
<span style="font-size: 11.0pt; mso-bidi-font-size: 12.0pt;">Here's
how Scale Venture Partners created a bottom's up TAM to assess our investment
in online marketing company Omniture: We counted websites by traffic volume,
assigned an annual revenue potential to each size category and added it all up
to over $1 billion a year of annual addressable spend. This work was done when
Omniture had only a few hundred customers, not the many thousands of potential
clients we counted in our TAM.</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: 11.0pt; mso-bidi-font-size: 12.0pt;">As
a long-time venture investor, and previously the head of investor relations for
two public companies, these four factors are the pillars of successful pitches
-- and investment decisions. </span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: 11.0pt; mso-bidi-font-size: 12.0pt;">Clearly
communicate your company's market, strategy, model and people, and you'll be
speaking your investors' language.</span></div>
<div class="MsoNormal">
<span style="font-size: 11.0pt; mso-bidi-font-size: 12.0pt;"><br style="mso-special-character: line-break;" />
<br style="mso-special-character: line-break;" />
</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<br /></div>
Anonymoushttp://www.blogger.com/profile/08359615102122187053noreply@blogger.com0tag:blogger.com,1999:blog-3767844902663353660.post-46310550668018947862013-12-11T12:27:00.001-08:002013-12-12T03:41:35.991-08:0012 common misunderstandings about lean startups<div>
<strong>12 common misunderstandings from the </strong><a href="http://ekonomiaconsultants.com/12-outrageous-myths-about-lean-startups/"><strong>Ekonomia blog</strong></a><strong> compiled by Constantina Muston</strong></div>
<div>
<br /></div>
<div>
<div class="separator" style="clear: both;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEho8dnoeka-LkllkIoi90pZsn2r109VRQsb4wXr5xQ-tGOGy9vv46bKsA0OEq86399qS6_EGSLmZ32NbaGktsd6qmDuFqNOrEyBY-0L13_52Y_2qcFUdmnAIL6jDh0cv8pLSUR6iO5U8JY/s640/blogger-image-110813960.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="231" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEho8dnoeka-LkllkIoi90pZsn2r109VRQsb4wXr5xQ-tGOGy9vv46bKsA0OEq86399qS6_EGSLmZ32NbaGktsd6qmDuFqNOrEyBY-0L13_52Y_2qcFUdmnAIL6jDh0cv8pLSUR6iO5U8JY/s320/blogger-image-110813960.jpg" width="320" /></a></div>
1. It applies only to tech businesses.</div>
<div>
Many people believe that lean methodology is applicable only to tech startups. In truth, it has been advertised by founders of tech businesses after the 2001 dot com bust. However, tech startups are not the only ones who can profit. Lean methodology has been proven to be is applicable to all kind of ventures that have a scalable and repeatable scope.</div>
<div>
<br /></div>
<div>
2. Lean methodology is used only in startups.</div>
<div>
This is one of the most widely spread myths. In fact, every established company that attempts to launch a new product or is trying to reach new markets needs to follow lean methodology. Otherwise, they will be spending an enormous amount of money and time with doubtful results.</div>
<div>
<br /></div>
<div>
3. You can build a business in 48 hours.</div>
<div>
Well, obviously you cannot build a business in 48 hours. It may take months or even years to achieve the optimal result. Instead, you could build an MVP in 48 hours. That is the reason of the existence of so many pre-accelerator programs in the US and now in Europe. 48 hours, in some cases, are enough to execute the first stages of an idea and start implementing it.</div>
<div>
<br /></div>
<div>
4. You need no money to launch.</div>
<div>
Ideally you would not need any money to start a business. The fact is, though, that a little bit of money will take you a very long way. Lean practitioners are aware of this fact and, at the same time, urge you to restrain yourself from spending everything you have got. Money should be preserved for the next phase, the growth.</div>
<div>
<br /></div>
<div>
5. The MVP should be of low quality.</div>
<div>
The quality of an MVP should not enter the debate in the first instance. An MVP should be a micrography of the end product. It should have one or more of the basic features, or it should represent more or less accurately the final result. Only this way, it can be tested for its appeal to the public.</div>
<div>
<br /></div>
<div>
6. You do not need anything tangible to start with.</div>
<div>
First of all, you need to have an idea of where you are going. Then you should start implementing this idea in a practical way. If the result is not tangible one, the customer will not understand whether it will benefit him/ her or not.</div>
<div>
<br /></div>
<div>
7. Lean methodology does not use business plans</div>
<div>
In the first stages of a business, the idea is sketchy and formed incompletely. It remains at that state, while the founder develops the business. There is no point in writing down a detailed business plan, until the customer base has been defined and the product has been formed. Only after product/ market fit should we consider seriously putting together a business plan. At that stage, it will prove itself to be invaluable.</div>
<div>
<br /></div>
<div>
8. Pivots should take the business in a completely different direction</div>
<div>
Pivots may take the company seemingly in a new direction. However, the vision should not change as well. The vision is probably the most important aspect of the business that remains constant throughout the pivots. The only thing that changes continuously is the strategy.</div>
<div>
<br /></div>
<div>
9. The founder should follow all of the customer feedback.</div>
<div>
In fact, customers are notorious for not knowing what they want or need! The entrepreneur should assess ALL of the comments but follow only the ones that are relevant to his/ her business. Only the founder could have a holistic idea of what customers need and how s/he can deliver it.</div>
<div>
<br /></div>
<div>
10. The only metric that counts is revenue.</div>
<div>
Revenue is a great point for customer validation. However, in different stages of business building, different metrics should be taken into account. In some cases, even vanity metrics could be valid.</div>
<div>
<br /></div>
<div>
11. You should fail several times</div>
<div>
Lean methodology is great in helping entrepreneurs deal with failure, which is inevitable in business. There is no reason, though, to pursuit failure. Instead, we should contain it and make certain that it does not undermine the existence of the business itself.</div>
<div>
<br /></div>
<div>
12. Lean is risky</div>
<div>
New and innovative businesses that are aim at unknown markets are inherently risky. Lean methodology is an excellent tool for containing that risk, as any relevant decision is based on solid data and undeniable facts.</div>
Anonymoushttp://www.blogger.com/profile/08359615102122187053noreply@blogger.com0tag:blogger.com,1999:blog-3767844902663353660.post-27317733164900625332013-12-01T10:11:00.001-08:002013-12-01T10:12:22.542-08:0010 Myths About Creativity that obstruct Innovation<style>
<!--
/* Font Definitions */
@font-face
{font-family:Times;
panose-1:2 0 5 0 0 0 0 0 0 0;
mso-font-charset:0;
mso-generic-font-family:auto;
mso-font-pitch:variable;
mso-font-signature:3 0 0 0 1 0;}
@font-face
{font-family:Cambria;
panose-1:2 4 5 3 5 4 6 3 2 4;
mso-font-charset:0;
mso-generic-font-family:auto;
mso-font-pitch:variable;
mso-font-signature:3 0 0 0 1 0;}
/* Style Definitions */
p.MsoNormal, li.MsoNormal, div.MsoNormal
{mso-style-parent:"";
margin:0cm;
margin-bottom:.0001pt;
mso-pagination:widow-orphan;
font-size:12.0pt;
font-family:"Times New Roman";
mso-ascii-font-family:Cambria;
mso-ascii-theme-font:minor-latin;
mso-fareast-font-family:Cambria;
mso-fareast-theme-font:minor-latin;
mso-hansi-font-family:Cambria;
mso-hansi-theme-font:minor-latin;
mso-bidi-font-family:"Times New Roman";
mso-bidi-theme-font:minor-bidi;}
h1
{mso-style-link:"Heading 1 Char";
margin:0cm;
margin-bottom:.0001pt;
mso-pagination:widow-orphan;
mso-outline-level:1;
font-size:24.0pt;
mso-bidi-font-size:10.0pt;
font-family:"Times New Roman";
mso-ascii-font-family:Times;
mso-hansi-font-family:Times;}
span.Heading1Char
{mso-style-name:"Heading 1 Char";
mso-style-locked:yes;
mso-style-link:"Heading 1";
mso-ansi-font-size:24.0pt;
font-family:Times;
mso-ascii-font-family:Times;
mso-hansi-font-family:Times;
mso-font-kerning:18.0pt;
font-weight:bold;
mso-bidi-font-weight:normal;}
@page Section1
{size:595.0pt 842.0pt;
margin:72.0pt 90.0pt 72.0pt 90.0pt;
mso-header-margin:36.0pt;
mso-footer-margin:36.0pt;
mso-paper-source:0;}
div.Section1
{page:Section1;}
-->
</style>
<br />
<div class="MsoNormal">
<b><span style="mso-bidi-font-weight: normal;"><span style="font-size: 11.0pt; mso-bidi-font-size: 10.0pt; mso-font-kerning: 18.0pt;"></span></span><span style="font-size: 11.0pt; mso-bidi-font-size: 10.0pt;">Adapted
excerpt from <a href="http://m.entrepreneur.com/article/229600">Entrepreneur blog post</a> by By Martin Zwilling | October 25, 2013 </span></b></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">Many people think <a href="http://www.entrepreneur.com/topic/creativity"><span style="color: blue;">creativity</span></a>
is divinely-inspired, unpredictable and bestowed on only a lucky few. There
are a lot of popular myths about business creativity, yet none of them have
much scientific evidence. A new study based on the latest research-- "<a href="http://www.amazon.com/The-Myths-Creativity-Innovative-Companies/dp/1118611144"><span style="color: blue;">The Myths of Creativity</span></a>," by David Burkus --
helps demystify what's behind the forces and processes that drive <a href="http://www.entrepreneur.com/topic/innovation"><span style="color: blue;">innovation</span></a>.</span></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjMzoIQTAwJoY3HsF6CBu5Zg88tT_nqraWowVHLBl0L8TZLkC2SFGdMFCt1wFTQQtmVy1Z-4oy-0PaE2oqRxWijAR3H7wllgTgJ42H-08AXQm1NWbTihJZrikoyWae_5WvCdkzYrCt-BDo/s1600/Creativity.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjMzoIQTAwJoY3HsF6CBu5Zg88tT_nqraWowVHLBl0L8TZLkC2SFGdMFCt1wFTQQtmVy1Z-4oy-0PaE2oqRxWijAR3H7wllgTgJ42H-08AXQm1NWbTihJZrikoyWae_5WvCdkzYrCt-BDo/s320/Creativity.jpg" width="272" /></a></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;"> Burkus' research suggests that
with the proper training, anyone with a common-sense mindset grounded in
reality can deliver creative and innovative new <a href="http://www.entrepreneur.com/topic/ideas"><span style="color: blue;">ideas</span></a>,
projects, processes, and programs.</span></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">The first step is to not limit
your thinking. That means not following these ten long-standing myths about
creative thinking:</span></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<b style="mso-bidi-font-weight: normal;"><span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">1.
Eureka myth.</span></b><span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;"> New ideas sometimes seem to appear as
a flash of insight. But research shows that such insights are actually the
culminating result of prior hard work on a problem. This thinking is then given
time to incubate in the subconscious mind as we connect threads before the
ideas pop out as new eureka-like innovations.</span></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<b style="mso-bidi-font-weight: normal;"><span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">2.
Breed myth.</span></b><span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;"> Many people believe creative ability
is a trait inherent in one’s heritage or genes. In fact, the evidence supports
just the opposite. There is no such thing as a creative breed. People who have
confidence in themselves and work the hardest on a problem are the ones most
likely to come up with a creative solution.</span></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<b style="mso-bidi-font-weight: normal;"><span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">3.
Originality myth.</span></b><span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;"> There's a long-standing myth
about intellectual property -- the idea that a creative idea is proprietary to
the person who thought of it. But history and empirical research show more
evidence that new ideas are actually combinations of older ideas and that
sharing those helps generate more innovation.</span></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<b style="mso-bidi-font-weight: normal;"><span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">4.
Expert myth.</span></b><span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;"> Many companies rely on a technical
expert or team of experts to generate a stream of creative ideas. Harder
problems call for even more knowledgeable experts. Instead, research suggests
that particularly tough problems often require the perspective of an outsider
or someone not limited by the knowledge of why something can’t be done.</span></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<b style="mso-bidi-font-weight: normal;"><span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">5.
Incentive myth. </span></b><span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">The expert myth often leads to
another myth, which argues that bigger incentives, monetary or otherwise, will
increase motivation and hence increase innovation productivity. Incentives can
help, but often they do more harm than good, as people learn to game the
system.</span></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<b style="mso-bidi-font-weight: normal;"><span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">6.
Lone Creator myth.</span></b><span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;"> This reflects our tendency to
rewrite history to attribute breakthrough inventions and striking creative
works to a sole person, ignoring supportive work and collaborative preliminary
efforts. Creativity is often a team effort, and recent research into creative
teams can help leaders build the perfect creative troupe.</span></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<b style="mso-bidi-font-weight: normal;"><span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">7.
Brainstorming myth.</span></b><span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;"> Many consultants today preach
the concept of brainstorming, or spontaneous group discussions to explore every
possible approach, no matter how far-out, to yield creative breakthroughs.
Unfortunately, there is no evidence that just "throwing ideas around"
consistently produces innovative breakthroughs.</span></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<b style="mso-bidi-font-weight: normal;"><span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">8.
Cohesive myth.</span></b><span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;"> Believers in this myth want everyone
to get along and work happily together to foster innovations. That's why we see
so many "zany" companies where employees play foosball and enjoy free
lunches together. In fact, many of the most creative companies have found ways
to structure dissent and conflict into their process to better push their
employees' creative limits.</span></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<b style="mso-bidi-font-weight: normal;"><span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">9.
Constraints myth.</span></b><span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;"> Another popular notion is that
constraints hinder our creativity and the most innovative results come from
people who have "unlimited" resources. Research shows, however, that
creativity loves constraints. Perhaps companies should do just the opposite --
intentionally apply limits to leverage the creative potential of their people.</span></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<b style="mso-bidi-font-weight: normal;"><span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">10.
Mousetrap myth.</span></b><span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;"> Others falsely believe that
once we have a new idea, the work is done. But the world won’t beat a path to
our door or even find the door to an idea for a better mousetrap, unless we
communicate it, market it and find the right customers. We all know of at least
one "better mousetrap" that is still hidden.</span></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">If these are indeed the myths of
business creativity, what then are the true components? According to <a href="http://www.hbs.edu/faculty/Pages/profile.aspx?facId=6409"><span style="color: blue;">Teresa Amabile</span></a>, director of research at Harvard,
creativity is really driven by four separate components: domain expertise, a
defined creativity methodology, people willing to engage and company acceptance
of new ideas. Where these components overlap is where real creativity happens.</span></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .1pt; margin-left: 0cm; margin-right: 0cm; margin-top: .1pt; mso-para-margin-bottom: .01gd; mso-para-margin-left: 0cm; mso-para-margin-right: 0cm; mso-para-margin-top: .01gd;">
<span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 10.0pt;">If you believe your startup's
success depends on your company being more creative and innovative then avoid
thinking along the lines of these 10 myths and instead spend the time needed to
understand and nurture the components of creativity in your environment. </span></div>
<div class="MsoNormal">
<br /></div>
<br />Anonymoushttp://www.blogger.com/profile/08359615102122187053noreply@blogger.com0tag:blogger.com,1999:blog-3767844902663353660.post-32634659245483402282013-11-17T09:50:00.002-08:002013-11-17T10:47:37.379-08:00Lean reinvented?<style>
<!--
/* Font Definitions */
@font-face
{font-family:"Courier New";
panose-1:2 7 3 9 2 2 5 2 4 4;
mso-font-charset:0;
mso-generic-font-family:auto;
mso-font-pitch:variable;
mso-font-signature:3 0 0 0 1 0;}
@font-face
{font-family:Wingdings;
panose-1:5 2 1 2 1 8 4 8 7 8;
mso-font-charset:2;
mso-generic-font-family:auto;
mso-font-pitch:variable;
mso-font-signature:0 0 65536 0 -2147483648 0;}
@font-face
{font-family:Cambria;
panose-1:2 4 5 3 5 4 6 3 2 4;
mso-font-charset:0;
mso-generic-font-family:auto;
mso-font-pitch:variable;
mso-font-signature:3 0 0 0 1 0;}
@font-face
{font-family:"Arial Unicode MS";
panose-1:2 11 6 4 2 2 2 2 2 4;
mso-font-charset:0;
mso-generic-font-family:auto;
mso-font-pitch:variable;
mso-font-signature:3 0 0 0 1 0;}
@font-face
{font-family:Gotham;
panose-1:0 0 0 0 0 0 0 0 0 0;
mso-font-alt:Gotham;
mso-font-charset:0;
mso-generic-font-family:swiss;
mso-font-format:other;
mso-font-pitch:auto;
mso-font-signature:3 0 0 0 1 0;}
/* Style Definitions */
p.MsoNormal, li.MsoNormal, div.MsoNormal
{mso-style-parent:"";
margin:0cm;
margin-bottom:.0001pt;
mso-pagination:widow-orphan;
font-size:12.0pt;
font-family:"Times New Roman";
mso-fareast-font-family:"Times New Roman";
mso-bidi-font-family:"Times New Roman";
mso-ansi-language:EN-US;}
p.Body1, li.Body1, div.Body1
{mso-style-name:"Body 1";
mso-style-parent:"";
margin:0cm;
margin-bottom:.0001pt;
mso-pagination:widow-orphan;
font-size:12.0pt;
mso-bidi-font-size:10.0pt;
font-family:"Times New Roman";
mso-ascii-font-family:Helvetica;
mso-fareast-font-family:"Arial Unicode MS";
mso-hansi-font-family:Helvetica;
mso-bidi-font-family:"Times New Roman";
color:black;}
@page Section1
{size:612.0pt 792.0pt;
margin:72.0pt 90.0pt 72.0pt 90.0pt;
mso-header-margin:36.0pt;
mso-footer-margin:36.0pt;
mso-paper-source:0;}
div.Section1
{page:Section1;}
/* List Definitions */
@list l0
{mso-list-id:860170072;
mso-list-type:hybrid;
mso-list-template-ids:1588745776 67698703 67698713 67698715 67698703 67698713 67698715 67698703 67698713 67698715;}
@list l0:level1
{mso-level-tab-stop:none;
mso-level-number-position:left;
text-indent:-18.0pt;}
@list l1
{mso-list-id:1504710658;
mso-list-type:hybrid;
mso-list-template-ids:-1084985014 1059213148 67698691 67698693 67698689 67698691 67698693 67698689 67698691 67698693;}
@list l1:level1
{mso-level-number-format:bullet;
mso-level-text:-;
mso-level-tab-stop:none;
mso-level-number-position:left;
margin-left:21.0pt;
text-indent:-18.0pt;
font-family:Cambria;
mso-fareast-font-family:Cambria;
mso-fareast-theme-font:minor-latin;
mso-bidi-font-family:"Times New Roman";
mso-bidi-theme-font:minor-bidi;}
@list l2
{mso-list-id:1693265668;
mso-list-type:hybrid;
mso-list-template-ids:-1420779870 67698703 67698713 67698715 67698703 67698713 67698715 67698703 67698713 67698715;}
@list l2:level1
{mso-level-tab-stop:none;
mso-level-number-position:left;
text-indent:-18.0pt;}
ol
{margin-bottom:0cm;}
ul
{margin-bottom:0cm;}
-->
</style>
<br />
<div class="Body1">
<span lang="EN-US" style="font-family: Cambria; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 10.0pt; mso-hansi-theme-font: minor-latin;"><i>By Thomas Klem Andersen, Published November 17th 2013</i> </span><br />
<br />
<span lang="EN-US" style="font-family: Cambria; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 10.0pt; mso-hansi-theme-font: minor-latin;">Friday nov. 5th Implement Consulting Group
(ICG) hosted a seminar titled ’Lean reinvented’ after having been on a ‘Lean
architecture tour’ to Japan. The intention was to ignite a discussion of the
current state of Lean in Scandinavian organisations and how to foster Lean
driven transformation. </span></div>
<div class="Body1">
<br /></div>
<div class="Body1">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: Cambria; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 10.0pt; mso-hansi-theme-font: minor-latin;">Just another seminar on Lean and related management trends? </span></b></div>
<div class="Body1">
<span lang="EN-US" style="font-family: Cambria; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 10.0pt; mso-hansi-theme-font: minor-latin;">Having spend the morning discussing <a href="http://www.sciondtu.dk/arrangementer/lean-startup-study-groups/">Lean Startup terminology</a> and practices at <a href="http://www.sciondtu.dk/">Scion DTU</a> I was hoping to get a better
grip of the roots of Lean… </span></div>
<div class="Body1">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<iframe allowfullscreen='allowfullscreen' webkitallowfullscreen='webkitallowfullscreen' mozallowfullscreen='mozallowfullscreen' width='320' height='266' src='https://www.blogger.com/video.g?token=AD6v5dy0yOsqLM8vnkzR0ENJj98wzr6wSCkMiceBHkGHab3gsjW64LxVL2UddFfxIQULIDTE9WMUlqDL3gs7q4oFbg' class='b-hbp-video b-uploaded' frameborder='0'></iframe></div>
<div class="Body1" style="text-align: center;">
<span lang="EN-US" style="font-family: Cambria; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 10.0pt; mso-hansi-theme-font: minor-latin;"><i> Scion DTU's Lean Startup Study Group discussing The Startup Owner's Manual by Steve Blank</i></span></div>
<div class="Body1">
<br />
<span lang="EN-US" style="font-family: Cambria; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 10.0pt; mso-hansi-theme-font: minor-latin;"> …but I wasn’t sure what to expect. Would
this be just another seminar on Lean and related management trends? The seminar
however proved to be a highly interesting critical inquiry into the Lean
concept clarifying what distinguishes it from other popular management concepts
and what the true characteristics of Lean are as they have been developed at
Toyota. As such the seminar seemed to have rediscovered Lean rather than
reinventing it. </span></div>
<div class="Body1">
<br /></div>
<div class="Body1">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiG_g9bnHkRAYJI0r9yeGWd9CuAKx9aD5ARj_KrZeMehO4t_bHVGsStp8Y3uIuOrVMMAU0U9cqJREoxu3vrPuEAM80i0BnKsKdPM-eOxalUoadtF41mwMR2I4eRI0BooqGv9Evh-trdRF4/s1600/foto.JPG" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiG_g9bnHkRAYJI0r9yeGWd9CuAKx9aD5ARj_KrZeMehO4t_bHVGsStp8Y3uIuOrVMMAU0U9cqJREoxu3vrPuEAM80i0BnKsKdPM-eOxalUoadtF41mwMR2I4eRI0BooqGv9Evh-trdRF4/s320/foto.JPG" width="240" /></a><span lang="EN-US" style="font-family: Cambria; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 10.0pt; mso-hansi-theme-font: minor-latin;">The enriching content was to a large
extend due to the fact that ICG had invited </span><span lang="EN-US" style="font-family: Cambria; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: Gotham; mso-bidi-font-size: 8.5pt; mso-hansi-theme-font: minor-latin;">Swedish Lean thinker and researcher <a href="http://www.niklasmodig.com/">NiklasModig</a>. Fluent in Japanese, Niklas has gained the opportunity to spend
thousands of hours inside Toyota‘s service organisation in an attempt to
understand how its philosophy can be applied in non-manufacturing contexts.
Niklas has assumed a leading position as an inspirational speaker within the
field of Lean management and is the author of the best-selling book <a href="http://www.niklasmodig.com/">“This isLean – resolving the efficiency paradox”</a> offering condensed knowledge about
Lean thinking.</span></div>
<div class="Body1">
<br /></div>
<div class="Body1">
<br /></div>
<div class="Body1">
<span lang="EN-US" style="font-family: Cambria; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 10.0pt; mso-hansi-theme-font: minor-latin;"> </span><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: Cambria; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 10.0pt; mso-hansi-theme-font: minor-latin;">Looking for non-trivial intentions of working with Lean</span></b></div>
<div class="Body1">
<span lang="EN-US" style="font-family: Cambria; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 10.0pt; mso-hansi-theme-font: minor-latin;">Lean is a concept that has come to mean
everything and nothing at the same time... Hence to some extend it has come to
resemble just another tool among the other countless off-the-shelf management
tools waiting to be implemented and discarded as management trends dictate.</span></div>
<div class="Body1">
<br /></div>
<div class="Body1">
<span lang="EN-US" style="font-family: Cambria; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 10.0pt; mso-hansi-theme-font: minor-latin;">Exactly for this reason, Niklas argued, if
you beleive that there is some substance and quality to be found in the Lean
concept you have to ask yourself<span style="mso-spacerun: yes;">
</span>what the non-trivial intention of working with Lean is. Ressource
efficiency would be a trivial answer as the alternative –ressource
in-efficiency is not a valid alternative in an organisation that value its own
existence. Hence looking for the non-trivial intention of working with Lean:</span></div>
<div class="Body1">
<br /></div>
<div class="Body1" style="margin-left: 21.0pt; mso-list: l1 level1 lfo1; text-indent: -18.0pt;">
<span lang="EN-US" style="font-family: Cambria; font-size: 11.0pt; mso-ansi-language: EN-US; mso-bidi-font-family: Cambria; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Cambria;"><span style="mso-list: Ignore;">-<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span lang="EN-US" style="font-family: Cambria; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 10.0pt; mso-hansi-theme-font: minor-latin;">you are looking for
the real intention that you have to align your organization around</span></div>
<div class="Body1" style="margin-left: 21.0pt; mso-list: l1 level1 lfo1; text-indent: -18.0pt;">
<span lang="EN-US" style="font-family: Cambria; font-size: 11.0pt; mso-ansi-language: EN-US; mso-bidi-font-family: Cambria; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Cambria;"><span style="mso-list: Ignore;">-<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span lang="EN-US" style="font-family: Cambria; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 10.0pt; mso-hansi-theme-font: minor-latin;">you are looking for
what exactly it is you want to improve and </span></div>
<div class="Body1" style="margin-left: 21.0pt; mso-list: l1 level1 lfo1; text-indent: -18.0pt;">
<span lang="EN-US" style="font-family: Cambria; font-size: 11.0pt; mso-ansi-language: EN-US; mso-bidi-font-family: Cambria; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: Cambria;"><span style="mso-list: Ignore;">-<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span lang="EN-US" style="font-family: Cambria; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 10.0pt; mso-hansi-theme-font: minor-latin;">you are looking for
the reason why you couldn’t just as well be implementing Business model reengineering,
scrum, agile or any other improvement strategy for that matter.</span></div>
<div class="Body1">
<br /></div>
<div class="Body1">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: Cambria; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 10.0pt; mso-hansi-theme-font: minor-latin;">The central intention of all improvement activities at Toyota</span></b></div>
<div class="Body1">
<span lang="EN-US" style="font-family: Cambria; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 10.0pt; mso-hansi-theme-font: minor-latin;">In so far as efficiency is the shining strategic
star you are aiming for as an organization, inevitably you will have to ask
yourself which kind of efficiency should be the aim of your endeavors. Only
then will you avoid the triviality fallacy and only then can you apply the
skillful an appropriate means to achieve that goal.<span style="mso-spacerun: yes;"> </span>Niklas delineated two different ways to define efficiency:</span></div>
<div class="Body1">
<br /></div>
<div class="Body1" style="margin-left: 36.0pt; mso-list: l0 level1 lfo2; text-indent: -18.0pt;">
<span lang="EN-US" style="font-family: Cambria; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: Cambria; mso-bidi-font-size: 10.0pt; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Cambria; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><span style="mso-list: Ignore;">1.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span lang="EN-US" style="font-family: Cambria; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 10.0pt; mso-hansi-theme-font: minor-latin;">Resource efficiency
–focusing on specialists, functions and the utilization of resources.</span></div>
<div class="Body1" style="margin-left: 36.0pt; mso-list: l0 level1 lfo2; text-indent: -18.0pt;">
<span lang="EN-US" style="font-family: Cambria; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: Cambria; mso-bidi-font-size: 10.0pt; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Cambria; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><span style="mso-list: Ignore;">2.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span lang="EN-US" style="font-family: Cambria; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 10.0pt; mso-hansi-theme-font: minor-latin;">Flow efficiency
–focusing on fulfilling needs and building a system to accommodate them.</span></div>
<div class="Body1">
<br /></div>
<div class="Body1">
<span lang="EN-US" style="font-family: Cambria; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 10.0pt; mso-hansi-theme-font: minor-latin;">So where should we dedicate our attention?
Clearly both resources and flow are important, so it is not an either or. The
real question is how to combine the two and in which order. According to Niklas
Toyota’s operations strategy is characterized by prioritizing flow first and
securing resource efficiency later. So Lean is first and foremost about
developing flow efficiency. </span></div>
<div class="Body1">
<br /></div>
<div class="Body1">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: Cambria; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 10.0pt; mso-hansi-theme-font: minor-latin;">Four non-trivialities of Lean:</span></b></div>
<div class="Body1">
<span lang="EN-US" style="font-family: Cambria; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 10.0pt; mso-hansi-theme-font: minor-latin;">Developing a Flow efficiency mindset might
be the most general and necessary principle for an organization to think Lean
but being flow minded is not sufficient. Niklas highlighted four non-trivial
Lean pinciples at the seminar:</span></div>
<div class="Body1">
<br /></div>
<div class="Body1" style="margin-left: 36.0pt; mso-list: l2 level1 lfo3; text-indent: -18.0pt;">
<span lang="EN-US" style="font-family: Cambria; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: Cambria; mso-bidi-font-size: 10.0pt; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Cambria; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><span style="mso-list: Ignore;">1.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span lang="EN-US" style="font-family: Cambria; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 10.0pt; mso-hansi-theme-font: minor-latin;">Flow efficiency:
Focusing on turnaround time and value adding time in relation to the customer.</span></div>
<div class="Body1" style="margin-left: 36.0pt; mso-list: l2 level1 lfo3; text-indent: -18.0pt;">
<span lang="EN-US" style="font-family: Cambria; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: Cambria; mso-bidi-font-size: 10.0pt; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Cambria; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><span style="mso-list: Ignore;">2.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span lang="EN-US" style="font-family: Cambria; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 10.0pt; mso-hansi-theme-font: minor-latin;">Just-in-time:
Creating the best possible flow in order to deliver what the customer want at
the right time and in the right amount.</span></div>
<div class="Body1" style="margin-left: 36.0pt; mso-list: l2 level1 lfo3; text-indent: -18.0pt;">
<span lang="EN-US" style="font-family: Cambria; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: Cambria; mso-bidi-font-size: 10.0pt; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Cambria; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><span style="mso-list: Ignore;">3.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span lang="EN-US" style="font-family: Cambria; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 10.0pt; mso-hansi-theme-font: minor-latin;">Jidoka: Creating
visibility, transparency, mapping process and value creation for everyone all
the time on all levels of the organization. This enables continuous learning,
improvement of processes and identification of flow disturbances. </span></div>
<div class="Body1" style="margin-left: 36.0pt; mso-list: l2 level1 lfo3; text-indent: -18.0pt;">
<span lang="EN-US" style="font-family: Cambria; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: Cambria; mso-bidi-font-size: 10.0pt; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Cambria; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><span style="mso-list: Ignore;">4.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span lang="EN-US" style="font-family: Cambria; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 10.0pt; mso-hansi-theme-font: minor-latin;">Learning: In essence
a result and inherent intention of ‘Jidoka’.</span></div>
<div class="Body1" style="margin-left: 21.0pt;">
<br /></div>
<div class="Body1" style="margin-left: 3.0pt;">
<span lang="EN-US" style="font-family: Cambria; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 10.0pt; mso-hansi-theme-font: minor-latin;">According to Niklas
these are the most general and characteristic principles of Lean. As he put it
they are the general ‘fruit-level’ categories of Lean that should be relevant
in every Lean inspired context and every specific ‘apple-level’ Lean technique
should be rooted in those.</span></div>
<div class="Body1">
<br /></div>
<div class="Body1">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: Cambria; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 10.0pt; mso-hansi-theme-font: minor-latin;">It starts with the people and the glasses</span></b></div>
<div class="Body1">
<span lang="EN-US" style="font-family: Cambria; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 10.0pt; mso-hansi-theme-font: minor-latin;">In order to cultivate flow efficiency, as
Niklas emphasized, you have to cultivate a certain flow-oriented mindset
throughout the entire organization. </span></div>
<div class="Body1">
<span lang="EN-US" style="font-family: Cambria; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 10.0pt; mso-hansi-theme-font: minor-latin;">Implementing Lean methodologies won’t work
in a context where the management and the culture is preoccupied with resource
efficiency mindsets and practices. That would be trying to implement green
apples in a non-fruit oriented organization. Non-fruit incentive structures are
incongruent with apple practices and methodologies.</span></div>
<div class="Body1">
<br /></div>
<div class="Body1">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: Cambria; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 10.0pt; mso-hansi-theme-font: minor-latin;">Lean on yourself</span></b></div>
<div class="Body1">
<span lang="EN-US" style="font-family: Cambria; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 10.0pt; mso-hansi-theme-font: minor-latin;">Lean is not a bundle of ready-made
techniques to be adopted and implemented at will. Lean, according to Niklas, is
a matter of living by the above-mentioned principles. In conclusion he
encouraged everyone enthusiastic about Lean to be inspired by the standard of ‘how
to develop a standard’ and not just blindly adopt and implement the techniques
derived from these principles in the context of Toyota. </span></div>
<div class="Body1">
<br /></div>
<div class="Body1">
<span lang="EN-US" style="font-family: Cambria; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 10.0pt; mso-hansi-theme-font: minor-latin;">Becoming Lean should be a question of
developing ones own matrixes, process boards and other techniques and processes
inspired by the spirit of the fundamental Lean principles above.</span></div>
<div class="Body1">
<br /></div>
<div class="Body1">
<span lang="EN-US" style="font-family: Cambria; font-size: 11.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 10.0pt; mso-hansi-theme-font: minor-latin;">Be creative, be the learner and ‘Lean on
yourself’ as you explore new practices as Niklas would say.</span></div>
<div class="Body1">
<br /></div>
<div class="Body1">
<br /></div>
Anonymoushttp://www.blogger.com/profile/08359615102122187053noreply@blogger.com0tag:blogger.com,1999:blog-3767844902663353660.post-20943887681601745012013-11-11T03:12:00.003-08:002013-11-11T03:13:25.391-08:005 Good reasons to join a startup and their ugly cousins<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US;"><span style="font-family: Arial;">Excerpt from a
<a href="http://pandodaily.com/2013/10/30/dont-go-chasing-startup-waterfalls/">Pandodaily blog post</a> by Nick Mehta, October 30, 2013</span></span></b><br />
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: Arial;"><span lang="EN-US" style="font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US;">Far too many people go into startups for the wrong
reasons and end up coming away disappointed. This is particularly true in
Silicon Valley, where entrepreneurship is so (rightly and wrongly) celebrated. </span><span style="font-size: 11pt; line-height: 115%;">Here’s my take.</span></span></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh479_eOWFatuRk0NzpBxZqpAg4yHFqj6S3Aci7khq7mAY0vnnPAn7WZYo6mx99XZILy8Jfs9-l_guFa6Aw2IAClSoxZ_e3FnHc15lkHrJM-Ef1mLRPtjtDxqRu828KI_YYtfXjded-MDM/s1600/Pros-Cons.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh479_eOWFatuRk0NzpBxZqpAg4yHFqj6S3Aci7khq7mAY0vnnPAn7WZYo6mx99XZILy8Jfs9-l_guFa6Aw2IAClSoxZ_e3FnHc15lkHrJM-Ef1mLRPtjtDxqRu828KI_YYtfXjded-MDM/s1600/Pros-Cons.png" /></a></div>
<div class="separator" style="clear: both; text-align: center;">
</div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt; text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-size: 11pt; line-height: 115%;"><span style="font-family: Arial;">5 Bad Reasons To Join A Startup<o:p></o:p></span></span></b></div>
<span style="font-family: Arial;"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US;">Money now</span></b><span lang="EN-US" style="font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US;">:
This is the sucker move and most of you are too savvy for this one. You’re
really excited about joining a startup but you need to make sure it can match
your base… and your bonus… and your car allowance – and maybe even give you a
little bump. Um, yeah… not so much. If you are making your decision on
short-term financial maximization, there is no reason to join a startup.<o:p></o:p></span></span><br />
<span style="font-family: Arial;"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US;"></span></b></span><br />
<span style="font-family: Arial;"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US;">Money later</span></b><span lang="EN-US" style="font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US;">:
You’re way more sophisticated than to fall into the situation above,,right? You
know it’s about the long-term. The upside. The equity. The exit. The IPO. Your
friend’s cousin’s niece was an administrative assistant at Facebook and is now
driving a Maserati. That can be you. Except it probably won’t be. The unspoken
truth is that in the vast majority of great (multi-hundred million dollar or
billion dollar) outcomes, most non-founder/exec employees would have made more
money staying in their big company job – not even adjusting for the risk.<o:p></o:p></span></span><br />
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: Arial;"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US;">The career
value</span></b><span lang="EN-US" style="font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US;">: In the old days, you went to work at Goldman Sachs
or IBM to check the resume box. Nowadays, I speak to far too many people who
are trying to get “startup cred.” While it does help to have worked in a startup
for the sake of working in a startup, if you want to go back to a big company,
your failed startup (aka “learning experience”) won’t get you too far.<o:p></o:p></span></span></div>
<span style="font-family: Arial;"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US;">The fame</span></b><span lang="EN-US" style="font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US;">:
We are all Jack Dorsey. Except we’re really not. Our Gawker startup celebrity
culture has created this false feeling that working at a startup is like
working with Hollywood actors and actresses. And it sort of is – if Hollywood
actors and actresses weren’t very attractive and if no one recognized them.<o:p></o:p></span></span><br />
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: Arial;"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US;">The coolness</span></b><span lang="EN-US" style="font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US;">:
On a related note, Twitter, TechCrunch and The Social Network have made
startups out to be way cooler than they actually are. They haven’t made many
films about reviewing Google Analytics reports, restarting EC2 instances or
buying really cheap office furniture. And while </span></span><a href="http://www.bravotv.com/start-ups-silicon-valley" target="_blank"><span lang="EN-US" style="font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US;"><span style="color: blue; font-family: Arial;">startup
reality TV</span></span></a><span lang="EN-US" style="font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US;"><span style="font-family: Arial;"> was attempted, Silicon Valley is no </span></span><a href="http://www.aetv.com/duck-dynasty/" target="_blank"><span lang="EN-US" style="font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US;"><span style="color: blue; font-family: Arial;">“Duck
Dynasty.”</span></span></a><span lang="EN-US" style="font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US;"><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt; text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US;"><span style="font-family: Arial;">5 Good
Reasons To Join A Startup<o:p></o:p></span></span></b></div>
<span style="font-family: Arial;"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US;">Making an
impact</span></b><span lang="EN-US" style="font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US;">: So now that I’ve depressed you, why work at a
startup? Try to get anything done in a large corporation and you’ll see why.
Try changing the product, launching a marketing campaign or even making a sale.
It’s just fundamentally difficult, no matter how well run the big company is.
And because of this difficulty, many employees at large organizations regress
into a milieu of inertia and unfortunately, acceptance of this. For the right
people, going back to a startup makes them feel free again.<o:p></o:p></span></span><br />
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: Arial;"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US;">Passion about
the space</span></b><span lang="EN-US" style="font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US;">: Just as important, if you pick the right area, you
can work on something you care about. The best startups are mission-driven.
They are early in their life and haven’t faced the harsh realities of
compromising values and stock earnings management. As such, startups can even
bring the innocence and purity of youth-driven dreams and aspirations (space
camp, anyone?).<o:p></o:p></span></span></div>
<span style="font-family: Arial;"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US;">Learning</span></b><span lang="EN-US" style="font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US;">:
While you won’t always be hoarding resume credentials at a startup, you might
get something even more valuable – actual knowledge and skills. Yes, it’s true.
If you’re self-directed (a big if), you can learn so much from working in a
startup, because you have freedom to try things outside of your comfort zone.
If you’re an engineer, you can make the marketing video. If you’re a marketer,
you can teach yourself to code. </span><span style="font-size: 11pt; line-height: 115%;">Good startups give employees a lot of rope.<o:p></o:p></span></span><br />
<br />
<span style="font-family: Arial;"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US;">Money way
later</span></b><span lang="EN-US" style="font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US;">: If you’re really patient and spend enough time at
good companies, something will eventually pay off – or it won’t. But </span></span><a href="http://en.wikipedia.org/wiki/Modern_portfolio_theory" target="_blank"><span lang="EN-US" style="font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US;"><span style="color: blue; font-family: Arial;">portfolio
theory</span></span></a><span lang="EN-US" style="font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US;"><span style="font-family: Arial;"> eventually starts applying as you have options at
enough companies. More importantly, you become more attractive to other
startups with each successful role and thus can command more equity in better
companies over time.<o:p></o:p></span></span><br />
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: Arial;"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US;">Belonging to
a true karass</span></b><span lang="EN-US" style="font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US;">: My friends who love working in small companies
inevitably articulate a joy. It’s the bliss of feeling a common purpose and
connection with the people around them. Many of us are searching for this bond.
Startups create a true </span></span><a href="http://en.wikipedia.org/wiki/Bokononism" target="_blank"><span lang="EN-US" style="font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US;"><span style="color: blue; font-family: Arial;">karass</span></span></a><span lang="EN-US" style="font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US;"><span style="font-family: Arial;">, to paraphrase Kurt Vonnegut,
while many large companies often devolve into granfaloons.<o:p></o:p></span></span></div>
<span lang="EN-US" style="font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US;"><span style="font-family: Arial;">So would you be willing to trade money and credentials
for a bunch of stuff that can’t be quantified and probably won’t turn into
anything monetary? If not, it’s probably best to stick to the big company
rivers and lakes that you’re used to.<o:p></o:p></span></span><br />
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: Arial;"><span lang="EN-US" style="font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US;">But if you want to throw rationality to the wind, join
a startup and remember the best Albert Einstein quote: “Everything that can be
counted does not necessarily count; everything that counts cannot necessarily
be counted.” </span><span style="font-size: 11pt; line-height: 115%;">Especially
stock options.<o:p></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-size: 11pt; line-height: 115%;"><o:p><span style="font-family: Arial;"> </span></o:p></span></div>
Anonymoushttp://www.blogger.com/profile/08359615102122187053noreply@blogger.com0tag:blogger.com,1999:blog-3767844902663353660.post-91785630640129672042013-11-04T12:54:00.000-08:002013-11-04T12:54:48.425-08:005 Ways to get out of Startup Mode and Grow your Business<div class="MsoNormal">
<b><span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"><a href="http://www.entrepreneur.com/article/228748">Entrepreneur blog post</a> by <a href="http://www.entrepreneur.com/author/grant-cardone"><span style="color: blue;">Grant Cardone</span></a> | October 7, 2013|</span></b><span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"> </span>
</div>
<table border="0" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="mso-cellspacing: 0cm; mso-padding-alt: 0cm 0cm 0cm 0cm; mso-yfti-tbllook: 1184;">
<tbody>
<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0; mso-yfti-lastrow: yes;">
<td nowrap="nowrap" style="padding: 0cm 0cm 0cm 0cm;"><table border="0" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="mso-cellspacing: 0cm; mso-padding-alt: 0cm 0cm 0cm 0cm; mso-yfti-tbllook: 1184;">
<tbody>
<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0; mso-yfti-lastrow: yes;">
<td style="padding: 0cm 0cm 0cm 0cm;"><br /></td>
<td style="padding: 0cm 0cm 0cm 0cm;"><br /></td>
<td style="padding: 0cm 0cm 0cm 0cm;"><br /></td>
</tr>
</tbody></table>
</td>
</tr>
</tbody></table>
<span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman";">Entrepreneurs
stay in startup mode way too long. Keeping a small business in startup mode
requires you to stand on the brake. If you keep telling people you're
"just a startup," you will never take actions for real <a href="http://www.entrepreneur.com/grow/businessstrategies/index.html"><span style="color: blue;">growth</span></a>.</span><br />
<span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman";"> </span>
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjPER8BFsNky240RQ5zbuuGVkEujz4fB-6Dx3dpJWZ16S2IWYmGxMCinLSM_CGXGGbks5gcGjElqWGpY5LihuB9BSAd8PzCrDhZv6XTpQBcdd5rcjssM4dIuQMXpKZntc9hwBYFgYIr7CU/s1600/Getting+out+of+startup+mode.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="154" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjPER8BFsNky240RQ5zbuuGVkEujz4fB-6Dx3dpJWZ16S2IWYmGxMCinLSM_CGXGGbks5gcGjElqWGpY5LihuB9BSAd8PzCrDhZv6XTpQBcdd5rcjssM4dIuQMXpKZntc9hwBYFgYIr7CU/s320/Getting+out+of+startup+mode.jpg" width="320" /></a></div>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<br /></div>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman";">It's time to
move from startup to grown up mode and from planning to doing. In two years,
you want to look back at your startup phase as an important part of your
thriving business' history. This is the mindset to move towards and here are
five ways to do it:</span></div>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<br /></div>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<b><span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman";">1. Delegate. </span></b><span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman";">When you're in
startup phase, you are handling everything. To become a going concern you have
to start investing in people to do tasks you can no longer do. Three quarters
of all small businesses have zero <a href="http://www.entrepreneur.com/topic/employees"><span style="color: blue;">employees</span></a>,
which underscores the resistance people have to delegating. You have to grow
your business. It is a misnomer to think people cost <a href="http://www.entrepreneur.com/money/index.html"><span style="color: blue;">money</span></a>.
A lack of production and failure to <a href="http://www.entrepreneur.com/grow/businessstrategies/index.html"><span style="color: blue;">grow your business</span></a> costs far more.</span></div>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<br /></div>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<b><span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman";">2. Pick your
battles. </span></b><span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman";">Don't
get wrapped up for a week deciding on a logo when it ultimately doesn't matter.
Your brand will evolve as your business evolves, so your logo is likely to
change. There are more important things to obsess over -- gaining customers and
making money. When you are hunting big game, don't swat mosquitoes.</span></div>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<br /></div>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<b><span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman";">3. Get
attention.</span></b><span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman";">
The single biggest problem every startup has is becoming known. Your most
important task is to get attention for you and your company. It's the gateway
to every dollar you raise. Muhammed Ali told the world he was the greatest long
before anyone knew him. He got attention and infuriated people. But he proved
himself, which turned criticism into world admiration. Get attention. Get
critics. Then get admiration.</span></div>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<br /></div>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<b><span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman";">4. Change your
pitch. </span></b><span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman";">Instead
of saying "I own a small web design company," say "I own a web
design company like none other that guarantees your company increased
sales." Notice the difference? The first makes you seem small and
insignificant. It makes no claim. The second makes you seem unique, confident
and capable of being a money maker. Know how to pitch yourself and your business.
Be ready to quickly explain what your company does that is better, faster and
of value to the marketplace. Then, make big claims to the world.</span></div>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<br /></div>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<b><span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman";">5. Create
urgency. </span></b><span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman";">If
you start a business venture without setting specific timelines for action and
achievements, you will be stuck forever with excuses. One of the biggest
mistakes I have made in business was not operating with enough urgency. Being
an entrepreneur is a marathon activity with lots of sprints. Win a lot of
little races and you will provide your people and company with momentum. We
recently shot a television show at my office and I told the editing staff that
I wanted rough cuts in half the time they thought necessary. Then I called
everyday for a progress update. This pressure to perform doesn't lead to
inferior products; it get products to be finished. Urgency is key to getting
things done.</span></div>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<br /></div>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<span style="font-size: 11.0pt; mso-bidi-font-family: "Times New Roman";">Remember: Your
vision is not improved by staying in startup mode. It's time to accelerate and
become a going concern that is grabbing market share from the other bigger more
established players. </span></div>
Anonymoushttp://www.blogger.com/profile/08359615102122187053noreply@blogger.com0tag:blogger.com,1999:blog-3767844902663353660.post-90336969260874512402013-10-30T01:56:00.002-07:002013-10-30T02:04:23.999-07:005 Things that slow down your startup's growth<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Excerpts from an insightful Six Revisions blog post by Sabelline Chicot,
Sep 30 2013<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></b><br />
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Creating a startup has never been easier. And
once you get going — depending on your drive, vision and personal motivation —
you will likely experience rapid growth and productivity at the start of your
journey. Everything’s new and there’s seemingly endless potential to grow.</span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">However, once the honeymoon period fades
and reality sets in — and it will at some point — you will be faced with
doubts, fear, and insecurity. This point in time is a crucial fork in the road;
one path will move you forward and the other will lead you astray.</span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">When that time comes, it’s important to
deal with the following common issues experienced by most startup founders.<o:p></o:p></span></div>
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhFh4cQKOYspOp631vpSAie6dnx1wsvgHyDpFcQJJ1HAUxzgxTxIkVBsieyJBi6zH49_dJHMEXbijRsbxLEUzRcbIPrTJTeUepat0nA_52CGwfGXxFKkIFzGuiye-zmBEVoo4YCKtQl1rE/s1600/Slow+growth.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="252" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhFh4cQKOYspOp631vpSAie6dnx1wsvgHyDpFcQJJ1HAUxzgxTxIkVBsieyJBi6zH49_dJHMEXbijRsbxLEUzRcbIPrTJTeUepat0nA_52CGwfGXxFKkIFzGuiye-zmBEVoo4YCKtQl1rE/s400/Slow+growth.jpg" width="400" /></a></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">1. Waiting for Everything to Be Perfect<o:p></o:p></span></b></div>
<span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Sometimes it’s hard to get things moving
because you want things to be flawless.<o:p></o:p></span><br />
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">However, perfection never happens.
Perfection is a pipe dream.</span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">To succeed in business means </span><span style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><a href="http://gettingreal.37signals.com/ch04_Ignore_Details_Early_On.php" target="_blank" title="Ignore Details Early On"><span lang="EN-US" style="mso-ansi-language: EN-US;"><span style="color: blue;">focusing on the things that matter.</span></span></a></span><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"> Moving forward and growing means not letting inconsequential details
derail you from launching your product or distracting you from your vision.</span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">After all, a startup business is like a
living organism, it will evolve over time. As long as you have the core
features in a sufficient state, you will be fine.</span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">It’s best to take your product to the
market swiftly and improve it over time, rather than agonizing over
non-essential features and ending up missing the mark. As LinkedIn co-founder </span><span style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><a href="http://blog.kissmetrics.com/hoffmans-advice-for-entrepreneurs/" target="_blank"><span lang="EN-US" style="mso-ansi-language: EN-US;"><span style="color: blue;">Reid Hoffman</span></span></a></span><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"> once said: <o:p></o:p></span></div>
<br />
<div align="center" class="MsoNormal" style="margin: 0cm 0cm 10pt; text-align: center;">
<span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><em>"If you’re not embarrassed by your first launch, you’ve launched
too late."<o:p></o:p></em></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">You have to start some time, and that time
isn’t when everything is perfect.</span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Even Apple — now one of the most
successful companies in the world — started with a humble and imperfect
product: The </span><span style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><a href="http://en.wikipedia.org/wiki/Apple_I" target="_blank"><span lang="EN-US" style="mso-ansi-language: EN-US;"><span style="color: blue;">Apple I computer.</span></span></a></span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Successful entrepreneur and developer Dave
Winer says this </span><span style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><a href="http://scripting.com/davenet/1995/09/03/wemakeshittysoftware.html" target="_blank"><span lang="EN-US" style="mso-ansi-language: EN-US;"><span style="color: blue;">about building
software</span></span></a></span><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">: "Software is a process, it’s never
finished, it’s always evolving. That’s its nature. We know our software sucks.
But it’s shipping! Next time we’ll do better, but even then it will be shitty.
The only software that’s perfect is one you’re dreaming about."</span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Suggested Reading:</span></b></div>
<div class="MsoListParagraphCxSpFirst" style="margin: 0cm 0cm 0pt 36pt; mso-list: l1 level1 lfo1; text-indent: -18pt;">
<span lang="EN-US" style="font-family: Symbol; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><a href="https://medium.com/p/72a3f1b2d136" target="_blank"><span lang="EN-US" style="mso-ansi-language: EN-US;"><span style="color: blue;">Progress Not Perfection</span></span></a></span><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"> (medium.com)<o:p></o:p></span></div>
<br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0cm 0cm 0pt 36pt; mso-list: l1 level1 lfo1; text-indent: -18pt;">
<span lang="EN-US" style="font-family: Symbol; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><a href="http://www.defmacro.org/ramblings/taming-perfectionism.html" target="_blank"><span lang="EN-US" style="mso-ansi-language: EN-US;"><span style="color: blue;">Taming Perfectionism</span></span></a></span><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"> (www.defmacro.org)<o:p></o:p></span></div>
<br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0cm 0cm 0pt 36pt; mso-list: l1 level1 lfo1; text-indent: -18pt;">
<span lang="EN-US" style="font-family: Symbol; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><a href="https://medium.com/p/ec8e85e1df9e" target="_blank"><span lang="EN-US" style="mso-ansi-language: EN-US;"><span style="color: blue;">I Want to Punch Perfection in The
Face</span></span></a></span><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"> (medium.com)<o:p></o:p></span></div>
<br />
<div class="MsoListParagraphCxSpLast" style="margin: 0cm 0cm 10pt 36pt; mso-list: l1 level1 lfo1; text-indent: -18pt;">
<span lang="EN-US" style="font-family: Symbol; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><a href="http://www.neiland.net/blog/article/just-ship-it/" target="_blank"><span lang="EN-US" style="mso-ansi-language: EN-US;"><span style="color: blue;">Just Ship It</span></span></a></span><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"> (www.neiland.net)<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">2. Trying to Live Up to Your Competitors</span></b></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">It can be all too easy to compare yourself
to your competitors. This process can be intimidating and discouraging, too.</span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Keeping up with industry news and knowing
about your competition is an essential task for all business founders. But when
it becomes an obsession, it can be unhealthy for your company.</span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Don’t waste time thinking about your
competitors’ every move. Only you can be the maker of your business’s success.
Analyzing the competition can be a long, dark maze in which you can easily lose
yourself in.</span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Paul Graham — a successful entrepreneur,
startup advisor and investor behind companies like Dropbox, Airbnb, Stripe and
Reddit — pointed out in a </span><span style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><a href="http://paulgraham.com/startupideas.html" target="_blank"><span lang="EN-US" style="mso-ansi-language: EN-US;"><span style="color: blue;">blog post</span></span></a></span><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"> that startups rarely fail because of its competitors.</span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">A crowded market, according to Graham, is
a signal that there’s an unfulfilled need in that market. <b style="mso-bidi-font-weight: normal;">The presence of competitors should be viewed as a healthy sign of
market viability, rather than a threat.</b></span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Do your competitor analysis and keep
abreast with what’s going on in your industry, but don’t let it discourage you
from building your vision.</span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Suggested Reading</span></b></div>
<div class="MsoListParagraphCxSpFirst" style="margin: 0cm 0cm 0pt 36pt; mso-list: l2 level1 lfo2; text-indent: -18pt;">
<span lang="EN-US" style="font-family: Symbol; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><a href="http://startupnorth.ca/2013/06/21/stop-stressing-about-startup-competitors/" target="_blank"><span lang="EN-US" style="mso-ansi-language: EN-US;"><span style="color: blue;">Stop stressing
about startup competitors</span></span></a></span><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">
(startupnorth.ca)<o:p></o:p></span></div>
<br />
<div class="MsoListParagraphCxSpLast" style="margin: 0cm 0cm 10pt 36pt; mso-list: l2 level1 lfo2; text-indent: -18pt;">
<span lang="EN-US" style="font-family: Symbol; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><a href="http://www.insideindianabusiness.com/contributors.asp?id=2678" target="_blank"><span lang="EN-US" style="mso-ansi-language: EN-US;"><span style="color: blue;">Competing in a
Startup World: Lessons From a CFO</span></span></a></span><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"> (insideindianabusiness.com)<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">3. Doing Everything Yourself</span></b></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Don’t feel compelled to wear all the hats
of HR, marketing, IT, finance, web development, and sales. Your energies are
best channeled into a few specific and strategically crucial tasks, so make
sure you get help from other people. <b style="mso-bidi-font-weight: normal;">Delegation
is an important skill all entrepreneurs must master</b>.</span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Tim O’Reilly, founder of O’Reilly Media, </span><span style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><a href="http://radar.oreilly.com/2013/09/how-i-failed.html" target="_blank"><span lang="EN-US" style="mso-ansi-language: EN-US;"><span style="color: blue;">looked back at his career</span></span></a></span><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"> as an entrepreneur and what he wished he had done differently. O’Reilly
notes that one of his biggest failures was trying to do everything himself:
"I believe it was Harold Geneen who once said, ‘<b style="mso-bidi-font-weight: normal;">The skill of management is to achieve your objectives through the
efforts of others</b>.’ Yet, like so many entrepreneurs, my first instinct was
not to hire the team to go after a new product or market, but to do it myself,
or with the team I already had."</span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Empower the relevant people in your
business and give them the best tools you can afford to let them do their job.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">4. Taking Yourself Too Seriously</span></b></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">With the number of business-critical
decisions you will have to take, it’s easy to become a little too serious.</span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Serial entrepreneur Sir Richard Branson is
probably the ultimate embodiment of a good-humored startup founder. Behind his
cheeky smile, however, lays a very solid business rationale: a sense of humor
and positivity tends to create a culture of openness where employees are more
likely to be creative. "Granted, smiling can’t solve every problem, but it
can make almost any situation a little better," Branson </span><span style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><a href="http://www.entrepreneur.com/article/225074" target="_blank"><span lang="EN-US" style="mso-ansi-language: EN-US;"><span style="color: blue;">says.</span></span></a></span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Maintaining positive morale is crucial in
the close confines of a startup.</span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">5. Fear of Failure</span></b></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">There’s nothing wrong with being wrong.
Perhaps the most important thing to remember is that mistakes will happen. You
will always wish you had done certain things differently.</span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">The art of getting things right is also
about getting things wrong. <b style="mso-bidi-font-weight: normal;">Nobody has
ever had a perfect idea that didn’t need any work or changes</b> — accepting
this notion demonstrates a self-awareness and maturity that will be integral to
the success of any young business.</span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Many successful entrepreneurs, from Rand
Fishkin of Moz to Hiten Shah from KISSmetrics, </span><span style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><a href="http://blog.bufferapp.com/failure-entrepreneur-12-successful-entrepreneurs-tell-us-the-biggest-lessons-theyve-learned" target="_blank"><span lang="EN-US" style="mso-ansi-language: EN-US;"><span style="color: blue;">have
encountered hurdles along the way but have got up and kept going.</span></span></a></span><span style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"> </span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">The <b style="mso-bidi-font-weight: normal;">key
to their success was the ability to learn</b> what had gone wrong, why it had
gone wrong, and how they could stop it from happening again.</span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Suggested Reading</span></b></div>
<div class="MsoListParagraphCxSpFirst" style="margin: 0cm 0cm 0pt 36pt; mso-list: l0 level1 lfo3; text-indent: -18pt;">
<span lang="EN-US" style="font-family: Symbol; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><a href="http://venturebeat.com/2013/08/22/ignore-startup-failure-stats/" target="_blank"><span lang="EN-US" style="mso-ansi-language: EN-US;"><span style="color: blue;">Why You Should
Ignore Startup Failure Stats</span></span></a></span><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"> (venturebeat.com)<o:p></o:p></span></div>
<br />
<div class="MsoListParagraphCxSpLast" style="margin: 0cm 0cm 10pt 36pt; mso-list: l0 level1 lfo3; text-indent: -18pt;">
<span lang="EN-US" style="font-family: Symbol; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><a href="http://alumni.stanford.edu/get/page/magazine/article/?article_id=41260" target="_blank"><span lang="EN-US" style="mso-ansi-language: EN-US;"><span style="color: blue;">How My
Start-Up Failed</span></span></a></span><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">
(alumni.stanford.edu)<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">And What if You Do Fail?</span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Try to make failure as low-cost as
possible and learn from it as much as you can.</span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">And </span><span style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><a href="http://techcrunch.com/2012/02/14/in-startups-and-life-you-need-plan-a-b-and-z/" target="_blank"><span lang="EN-US" style="mso-ansi-language: EN-US;"><span style="color: blue;">have a plan Z.</span></span></a></span><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"> Having a backup plan if things go really wrong (which ensures you will
have a roof on your head even if it means going back to Mom and Dad’s) will
help you face difficult times with more objectivity and come out of it, if
nothing else, at least a little wiser.</span></div>
Anonymoushttp://www.blogger.com/profile/08359615102122187053noreply@blogger.com0tag:blogger.com,1999:blog-3767844902663353660.post-38622277893094642452013-10-23T04:15:00.001-07:002013-10-26T03:32:08.187-07:00Testing the Business Model Canvas<em>By Thomas Klem Andersen, published on october 23rd 2013</em><br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<iframe allowfullscreen='allowfullscreen' webkitallowfullscreen='webkitallowfullscreen' mozallowfullscreen='mozallowfullscreen' width='320' height='266' src='https://www.blogger.com/video.g?token=AD6v5dzk_a4enT1wa8is6bgQEknflhmzIWuP9qiaggYz7LrePbzcSVm4ngLlYoy5V57bfRAUh-9u-i-M3cm-ng7xXw' class='b-hbp-video b-uploaded' frameborder='0'></iframe></div>
<br />
Yesterday we tested Alexander Osterwalders Business Model Canvas in our <a href="http://www.sciondtu.dk/wp-content/uploads/2013/06/Study-groups-poster2.pdf">Lean Startup Study Group</a> at <a href="http://www.sciondtu.dk/">Scion DTU</a>. We all agreed that it's a strong tool for testing existing and or pre/prototyping' alternative business models. <br />
<br />
We are looking forward to explore different busines model patterns thursday next week! Check out our schedule and join us <a href="http://www.sciondtu.dk/arrangementer/lean-startup-study-groups/">here</a>.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhHnmNEn1z9n-waApMy_asWHO1FkoN1sumTi3pagPTqleSiBN5R3-BtK70JiFyAy1jqqj4FcKeHSXLr6cb-JdIh48FDVFU7-7JkndO5tbFIC-jKdjyj1EcO4KwBrg1UlrpjLeoLXXDqkck/s1600/Business+Model+Canvas.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="251" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhHnmNEn1z9n-waApMy_asWHO1FkoN1sumTi3pagPTqleSiBN5R3-BtK70JiFyAy1jqqj4FcKeHSXLr6cb-JdIh48FDVFU7-7JkndO5tbFIC-jKdjyj1EcO4KwBrg1UlrpjLeoLXXDqkck/s400/Business+Model+Canvas.jpg" width="400" /></a></div>
<div class="separator" style="clear: both; text-align: center;">
<br /></div>
<br />
<br />Anonymoushttp://www.blogger.com/profile/08359615102122187053noreply@blogger.com0tag:blogger.com,1999:blog-3767844902663353660.post-75474138095762634302013-10-20T23:41:00.001-07:002013-10-20T23:43:07.042-07:00Seven Dilemmas for Entrepreneurs<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Excerpt from a <a href="http://www.rajeshsetty.com/2013/09/02/seven-dilemmas/">great blog post</a> by </span></b><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><a href="http://www.rajeshsetty.com/2013/09/02/seven-dilemmas/"><span lang="EN-US" style="mso-ansi-language: EN-US;"><span style="color: blue;">Rajesh Setty</span></span></a></span></b><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"> | Published on:
September 2nd, 2013 <o:p></o:p></span></b><br />
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Here are seven dilemmas you might face as
a first-time entrepreneur:</span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">1. The lure to get back to past certainty vs the grit to persist under
uncertainty</span></b><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">In general, your past has a HUGE amount of
<b style="mso-bidi-font-weight: normal;">certainty</b> as you probably were
working for someone and you were pretty good at what you did. </span><span style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">On the other
hand, your future as an entrepreneur has a HUGE amount of <b style="mso-bidi-font-weight: normal;">uncertainty</b>. Any one thing that goes wrong in your entrepreneurial
journey can derail your project and close that chapter. Since the combination
of the “project” and “YOU executing that project” is extremely unique, there is
no precedence to draw upon. Analogies will only go to a certain extent.</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Your
grit to persist under uncertainty has to outweigh the lure to get back to past
certainty for you to continue on the journey.</span></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiLhEjyCxZDtl2uexW9D8z0XD9pCjwXZH3BCFd9X6uVUFqFjdhzbLog-KNATSj6sMX8wRJcx0OYL8rboP3E4eQgzIh_8Exfe4wUfdjuTsOM0UnT3WwTF7F9_8GcYfrhumphMuZDf-vDNlc/s1600/Dilemmas.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiLhEjyCxZDtl2uexW9D8z0XD9pCjwXZH3BCFd9X6uVUFqFjdhzbLog-KNATSj6sMX8wRJcx0OYL8rboP3E4eQgzIh_8Exfe4wUfdjuTsOM0UnT3WwTF7F9_8GcYfrhumphMuZDf-vDNlc/s1600/Dilemmas.jpg" /></a></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
</div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">2. The choice to stretch and do it alone vs the choice get good help</span></b><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">There are times when you should <b style="mso-bidi-font-weight: normal;">stretch and grow</b> to meet the escalating
challenges of building a startup and there are times when you should <b style="mso-bidi-font-weight: normal;">aggressively reach out</b> for good help. </span><span style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">The former
is your road to maturity as an entrepreneur and the latter is your road to
maturity to build a strong ecosystem. Both – your personal growth and the
growth of your ecosystem are important.</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">What
is more important is the choices you make at every crossroad. If you make the
wrong choices, you either rob yourself of much needed personal growth or you
grow up as lone ranger and ultimately reach a point where your personal
competence limit will limit the growth of your venture.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">3. The question of sharing</span></b><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">The “sharing about your startup” question
is an important one. </span><span style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">On
one end you can adopt a <b style="mso-bidi-font-weight: normal;">“seal your lips”</b>
attitude and on the other end you can adopt a <b style="mso-bidi-font-weight: normal;">“throw the kitchen sink”</b> attitude and of course you can play the
game anywhere in between the two.</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Sharing
about your startup always comes down to:</span></div>
<ul>
<li><div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">What are you sharing – just the vision or the intricate details of how you will realize it</span></div>
</li>
<li><div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">With whom are you sharing – anyone and everyone or a select few</span></div>
</li>
<li><div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">When are you sharing – at major milestones or throughout the journey</span></div>
</li>
<li><div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">How are you sharing – casually without any design or in a formal fashion</span></div>
</li>
<li><div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">And most importantly… </span><span style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Why are you sharing – are you doing this purposefully or mindlessly.</span></div>
</li>
</ul>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Unless
you revisit the question of sharing in-depth and have a strategy, you will end
up having a lot of activity with limited productivity because you will waste
time for both you and the person on the other end.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">4. You vs Them</span></b><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Actually, it’s not simply “you vs them”
but the slice and proportion of attention for your projects as compared to the
slice and proportion of attention you set aside for their projects. </span><span style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">When you are
building your first startup, you are always hungry for any kind of resources
and every connection looks like a possible piece of your startup puzzle. It <b style="mso-bidi-font-weight: normal;">is tempting to “use” anyone and everything
that come across your way</b> to further your quest. On the other hand, people
that you meet are not simply cruising through their lives. They have their own
projects too and rightfully so they may be seeing you as a puzzle piece to
further their quests.</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Rather
than struggling with this, increase your capacity to move the needle for others
quickly and at a low cost to you. </span><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Rather
than expecting them to extend their hand to help you, reach out to them with a
helping hand first.</span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Reciprocation
is a powerful thing and the fastest way to activate that power is to
proactively reach out and help others with their quests.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">5. Crafting a great story vs making something that is worthy of a great
story</span></b><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">If you think coming up with an idea is
hard, you have not experienced what it takes to execute one. </span><span style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Without
blood and sweat, you can’t create something that is worth talking about. On the
other hand, if you don’t know how to craft a great story about what you are
trying to build, what you have built or how you are going about building it,
you can’t get all the desired traction.</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Balancing
superb execution with flawless storytelling is a must</span></b><span style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"> to make
something meaningful happen.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">6. Going for a home run vs focusing on a series of singles and doubles</span></b><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">There are two schools of thought – one is
to go for the “home run” so that you can get “backing” from serious people and
the other is to go for “singles and doubles” to prove yourself first and then
grow from there.</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">There
are advantages and disadvantages of both of the approaches and you don’t have
to pick one over the other as it is a “black vs white” choice. Your goal should
be able <b style="mso-bidi-font-weight: normal;">to paint a grand vision while
having a “staircase to heaven” execution approach</b>. </span><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">People should be able to see the vision and at the same time believe
that you have a plausible execution plan.</span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Remember:
If people don’t believe you, they rarely tell you about their disbelief. Their
supporting actions after the meeting are a good indicator of how much they
believe in you and your plan.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">7. The signal vs the noise</span></b><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">This is probably the simplest to
understand but the hardest one to remember throughout your first
entrepreneurial journey. </span><span style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">There is an abundance of information about how to go from where
you are to where you want to go. You will also find enough people to give you
advice of all kinds. You owe it to yourself to gain enough wisdom to be able to
<b style="mso-bidi-font-weight: normal;">separate the wheat from the chaff</b>
and be able to do so very quickly.<b style="mso-bidi-font-weight: normal;"><o:p></o:p></b></span>
<span style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Your
inability to distinguish between signal and noise will cost you way more than
consuming that information. Why? </span><span lang="EN-US" style="font-family: "Cambria","serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Because every wrong
turn in your journey will add incremental costs to recover and get back on
track.<o:p></o:p></span></div>
</div>
</div>
</div>
</div>
</div>
</div>
Anonymoushttp://www.blogger.com/profile/08359615102122187053noreply@blogger.com0