When you’re looking at starting a business, the one thing that you need to be very careful of is who has control of whether you succeed or fail. One of the most common (and most fatal) flaws in a startup business model is when they don’t control the value that they provide – and as such aren’t in control of their futures. This is surprisingly common!
TEST: Any business that cannot provide it’s primary value to only one customer runs this risk.
You’re guilty of this where you are dependent on someone else providing information, a service, a deal, opportunity or product. Any time that you cannot control the value that you are selling to your customer. This (seemingly obviously) poses a difficulty when trying to find a way to make money. Continue reading →
There are 2 basic tests that your new startup / product needs to be able to pass before you’re going to get any kind of major funding or traction. Both of these tests are addressed by getting your product out there and getting people using it and its important that you can tell the difference…
I come across a number of people who have an idea and want to be entrepreneurs, but have no idea where to start. And most ideas remain just that, ideas. Knowing how to get to where you want to go is the part where the most ideas fall flat. Thats what this post is about: the steps you need to follow in turning your idea into a business. It’s not rocket science, but there is also no silver bullet. The steps below are just a guide where the details will depend on your idea, market and a whole bunch of other factors. This is just a place to start. Continue reading →
At a recent StartupWeekend type event I mentored at, I noticed that many people don’t know how to quickly test a business model. Plenty had an idea, but had no way of knowing what the next step is. All you need to ask is What? Who? Why? How? and then test every answer and update. Continue reading →
The phrase ‘startup’ has become very trendy and is heavily overused. With governments and incubators touting ‘startup support services’ and ‘growing the number of startups’. Everyone seems to think that any early stage business is a ‘startup’, which, in my opinion is very misleading. Most of the time what they’re talking about is a business starting up.
Every business needs to start somewhere and at some point it will be small. Does this mean that all small business are ‘startups’? NO!
Let me clarify. A ‘startup’ – in the sexy trendy sense – is a small business with high growth potential. They’re highly scalable and can be very profitable. Small business that remain small business or grow slowly into medium size businesses are not this. (i.e. just a business starting up) NOT a startup (in the sexy, Silicon Valley, big potential kinda way.
Venture capitalists, rapid IPOs, ‘overnight’ success stories only happen when you’re swinging for the fences and aiming for the sky. This is not the trajectory of normal businesses. No matter how you are funded, you must be thinking big to call yourself a startup.
There is nothing wrong with starting a normal small business, wether it’s a lifestyle business or not. But not distinguishing between one that has real potential and one that is just mediocre is a grave mistake. You have to approach the 2 totally differently in every way. Your strategies are totally different. And if you don’t distinguish what you’re aiming for well enough, you’re always going to do it badly.
Founders generally fall in the category of knowing enough to see an opportunity, but not enough to see the obstacles. Which is normal, as otherwise they wouldn’t start in the first place, but this means that they need to rely on a community of people to get feedback, guidance and to learn from others experiences.
I’ve had a couple of instances of late where entrepreneurs with very viable businesses are told that their idea is not feasible, not scaleable or not worth their while. It normally comes from a VC (or incubator). The advice is not wrong – possibly misplaced – but the one thing you need to be very aware of is the motivations and perspectives of the person giving you advice. Continue reading →
This is an awesome TED Talk on how we are merging with technologies. While it covers space / time continuums and worm holes, it also has some great analogies on how tools originally extended us physically and technology extends us mentally. Highly Recommend.