The Intangible Assets Many startups are high-tech in nature. yy Primary assets are knowledge-based. Learn the intellectual property landscape. Up-front patent searches may seem expensive, but so to is ignorance! (Ask me, I know). yy Consider protecting yourself. - File patent applications? - Worth your time and expense? yy Today, patents are more important than ever: RIM, eBay, Blockbuster, … yy Build a defensible position.
Is your growth realistic? yy The idea is to demonstrate what you have to do each month. yy Is it realistic? Are you growing faster than any company in history? yy Is your revenue/employee higher than Google? yy Maybe you should be more realistic? yy How does that affect your plans? The Customer It’s amazing how many people start a business without talking to a customer. It’s not hard. They usually want to help and validate (or invalidate). This can save you a lot of time. Not just “will they buy?”, but yy How they buy? yy What are the nuances? yy Other opportunities? Spouse & Family If you are young and single yy it will never be easier… just do it. yy If you are not then have a supportive spouse. yy They will sacrifice for you – sacrifice for them. yy Involve them… but not too much. The Buck yy If all goes well, you’ll make a lot of them. But it stops with you. yy Don’t expect it to be easy. It can be tough when you’re all alone. The world is unfriendly towards entrepreneurs. You must be prepared for times that will test you and learn the difference between setback and dead-end. yy Trust yourself. yy Act! Adapt!
JUMP The Team Don’t do anything – don’t quit your job, don’t form a company, don’t think about Ferraris…Until you know your respective roles. yy Equal partnership? yy Responsibilities? yy Boundaries? yy Are you going solo? Responsibilities and boundaries had better be crystal clear. The Help Meet with a variety of lawyers, accountants, and bankers. yy They’re worth the money (usually). yy They’ll save you time and headaches. yy Assemble a supportive cast. yy Favor those who offer flexibility to entrepreneurs - Deferred payments - Support Groups - CED, etc. – network, network, network The Corporation Type of entity depends on your needs: Consultant: sole proprietorship yy Liability protection: LLC yy Tax-friendly: S-Corp yy Need investors: C-Corp (Delaware) yy Ask your lawyer. The Money Rare is the business that grows from $0. yy How will you fund early operations? yy Family? Friends? Credit Cards? yy Angel funding: popular source for entrepreneurs. yy Venture capital: professional money, but need certain criteria yy Debt: Avoid like the plague, early on.
The Competition Know your competition inside and out. yy Strengths? yy Weaknesses? yy Begin to formulate a plan to crush them. yy Be paranoid. yy Fly under the radar as long as possible. Do yy Get cheap, short-term office space yy Use a real attorney and accountant yy Be extraordinarily cheap yy Did I mention be cheap? yy Focus on what matters: - Prove your product attracts customers - Build a defensible position - Create value - Act with imperfect information - Adapt Don’t yy Assume that if you build it, they will come. yy Forget that the best technology rarely wins. yy Equate funding with success. yy Focus on perfection. yy Fail to act. In Closing Entrepreneurship: One of the hardest yet most rewarding personal journeys you can take. yy You can legitimately claim “I made this.” yy You control your destiny. yy You answer to yourself. yy Be prepared for challenges you can’t imagine yy Stay true to yourself, trust your instinct yy Be scrupulously honest and ethical, and never lose your head By Professor Fareedon Kapadia Atassh Consultants
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