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101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
101 Lessons Learned for Startups
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101 Lessons Learned for Startups

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A collection of my real-life experience of running startups. Hope others can find this useful.

A collection of my real-life experience of running startups. Hope others can find this useful.

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  • http://ecorner.stanford.edu/authorMaterialInfo.html?mid=2434
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  • http://ecorner.stanford.edu/authorMaterialInfo.html?mid=2434
  • http://ecorner.stanford.edu/authorMaterialInfo.html?mid=2434
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  • Transcript

    • 1. 101
      Lessons Learned
      for
      Startups
      Andy Harjanto
    • 2. Collected from others’ and my
      experience as running startups
    • 3. More details, please visit
      Shift Happens Blog
      http://www.andyharjanto.com
    • 4. Why listening to me?
      I’m just one of you
      Not a startup celebrity,
      Nor a superstar genius
    • 5. Building astartup today
      is not the same as
      building it a decade ago
      Shift Happens
    • 6. Down Trend
      Time to Market
      Development Cost
      Capital Expenditure
      Distribution Cost
      Fund Size
      Better Tools
      Cloud Computing
      Modern Programming
      Social Media
    • 7. Up Trend
      Market Size
      Competition
      Noise Level
      Impatience
      Globalization
      Social Media
      Easier Barrier to Entry
    • 8. Lessons Learned Topics
      we’ll be discussing
    • 9. Most of topics discussed
      are also applicable
      to “startup” teams
      inside a company
    • 10. Thinking Starting up?
    • 11. 1
      Do you have what it takes?
      http://bit.ly/5dGJFb
      to be a good
      Entrepreneur
      Risk Taker
      Competitive
      Resilience
      Tenacity
    • 12. 2
      Prepare to unlearn
      what you’ve learned
      2010s Startups have to do
      many things backward and
      unconventional
      more later…
    • 13. 3
      Your “killer” idea is just a hypothesis
      Talk to potential customers, friends,
      family without writing a single code
    • 14. 4
      No need to perfect your idea
      It’s almost a guarantee to change
    • 15. 5
      Careful for creating a new market
      Less competition,
      yes, but…
      It’s a lot longer
      to create
      than you think
    • 16. 6
      Some games are in town really over. Don’t compete
      Let the big boys play
    • 17. 7
      Ride the wave,
      Be the first
      You have millions
      of potential usersfrom day one
      Facebook Apps
      Twitter Based Services/Tools
    • 18. 8
      At the end of the day, does your product solve problem?
      Remember,
      just cool won’t cut it
      Can you retain users?
    • 19. 9
      A 5 year business plan? How about 5 day operating plan?
      Startup is operating
      under extreme uncertainty
    • 20. 10
      Targeting Consumer Market..
      ..seems so binary
      More often than not, you have to be BIG fast
      (millions of users) in order to succeed
      OR Go Home
    • 21. 11
      Targeting Business Market
      …be prepared for long cycles
      Work with channel partners, sales,
      build relationship.
    • 22. 12
      Your Plan: Getting revenue from advertising… Think again
      Unless you’re to top 5 sites
      in your market, you’re
      almost nobody
    • 23. 13
      Overnight success is a myth
      Build a long runway
      Media loves
      overnight
      success stories
      All you heard is,
      6 month start; 1 million users
    • 24. 14
      Don’t sweat over your
      competitors
      They could be even
      more clueless than
      you are
    • 25. 15
      Going against entrenched players?
      They resist to change
      Provide a product that solves
      problems in a different,
      better way.
    • 26. 16
      Be wary of a small number of
      competitors in your market
      It’s either you’re genius
      OR there is no market
    • 27. 17
      Sadly, luck plays roles in your startup success too
      Your product is ahead of its time
      Celebrities love your product
      It’s the economy, stupid
    • 28. 18
      Gauge market interest first via
      Social Media
      Don’t worry about someone
      stealing your ideas
    • 29. 19
      Be prepared for extreme rollercoaster emotional rides
      Low of the lows
      High of the highs
    • 30. 20
      Be prepared for rejection after rejection
      No one cares about your startup
      Persistenceis
      the key
    • 31. 21
      Just Do-It, you’re ahead of
      99% of people
      Too many people just talk
      with zero action
    • 32. Money Matters
    • 33. 22
      If you start a startup to get rich, you’re in the wrong business
      Only few will make it “big”
      Change The World
      Challenges
      Solves Problems
      Independence
    • 34. 23
      Startup is a very high risk business
      It does not make
      sense from
      financial
      perspective
      Many ways to minimize the risk
    • 35. 24
      Be prepared for at least 18 months without pay & benefits
      Don’t jump
      before
      you’re sure
      Too many jump and abandon
      before fully developed
    • 36. 25
      Always operate under assumption of no investors
      Got change for
      my startup?
    • 37. 26
      More than anything else,
      tractions are what investors looking for
      Traffic
      Number of users
      Number of subscriptions
      Can business scale?
      Growth
      Retention Rate
    • 38. 27
      Knowing when to fold
      More of art than science
      Gut Feeling will tell you
      Measuring your tractions is a good indicator
    • 39. 28
      In many countries, government grants are plenty for startups
      Governments encourage
      high tech companies to
      have presents locally, create
      local jobs, and national
      pride
    • 40. 29
      Your passionate user are sometimes your best investors
    • 41. 30
      Watch your burn rate very carefully. You’re on diet
      No Physical Office
      Skype (Free)
      Free Email, Docs
      FreeSoftware
      Open Source
      Ramen profitability
    • 42. 31
      Less money gives you sense
      urgency and boosts creativity
      It’s amazing to see how human
      survival instinct kicks in
    • 43. 32
      Charge for the service
      from day 1 is not a bad strategy
      You’ll get
      very passionate customers
      who believe in your product
    • 44. 33
      Spend generously on tools, books, chance to network.
      Your ROI is excellence
    • 45. 34
      Don’t optimize your product
      For VC
      VC:
      How big is the market size?
      Superstar developers?
      At the end of the day,
      tractionmatters the most
    • 46. 35
      Get into partner programs
      with the big guys
      Many offer free software
      and services
    • 47. Building A Team
    • 48. 36
      Find a great co-founder
      Share the same values
      Compliment skills
      Check and balances
    • 49. 37
      1st Stage: Hire Designer and Community Manager, instead
      This could also be You
      Gauge Market Interest
      Ideas Validation
      Quick Prototypes
    • 50. 38
      2nd Stage: Hire Great Developers, Testers
      This could also be You
      Knows Scalability
      Supportability
      Quality Code
      Security
    • 51. 39
      Hire for Culture Fit & Passionate
      Set min-bar for Intelligent
      Gauge Market Interest
      Interview Process:
      Make the candidate as if
      an employee for a day
      Ideas Validation
    • 52. 40
      Hire temp, consultants to keep
      burn rate low
      Gauge Market Interest
      Channel Partners
      Product Videos
      Marketing materials
    • 53. 41
      A very short daily meeting is much
      better than a long weekly meeting
      Human needs
      constant reminder
      of progress, accomplishment
      and togetherness
    • 54. 42
      Run effective meetingin
      22 minutes
      http://bit.ly/caXq6h
    • 55. 43
      Don’t grow fast, until you
      get to the product-fit phase
      Gauge Market Interest
      Keep in in quick tight cycles of
      build, validate, learn
    • 56. 44
      666 is the number to avoid
      In a given startup project, nomore than
      6people
      6months
      6day a week
    • 57. 45
      Everyone should be CEO of
      something
      Promote a culture of
      Veni, Vidi, Vici
      I saw the problem
      I own the problem
      I solve the problem
    • 58. 46
      Be decisive; majority of decisions are irreversible
      Heard on the street:
      “An hour meeting with 7 people
      to decide one API change
      What a waste!”
    • 59. 47
      External dependencies are kiss of death for startups
      They’re not moving
      at the same speed
      Reorg does happen
      They can easily out-live you
    • 60. 48
      Run your team on POT
      (progress, ownership, transparency)
      http://bit.ly/6XT3NG
    • 61. Designing Product
    • 62. 49
      Why building an awesome product no body wants?
      “Build it, they may notcome”
      Talk to customers,
      before writing a single code
    • 63. 50
      Fail-Fast; and
      Get Traction-Fast
      Really means Fail-Fast on bad ideas
      It does not mean abandoning project too
      quickly
    • 64. 51
      Quick build, validate, measure and learn.
      It’s in our engineer DNA that we
      like to build a perfect system
      In an early stage,
      Resist to be perfect
    • 65. 52
      Can you tell the difference:
      Progress vs. Wasted Progress?
      Run tight,
      small loops of
      Ideas (Hypothesis),
      Validate/Measure and
      Build
    • 66. 53
      Don’t just accumulate work done without measuring
      Measurement will give you
      feedbackto continue path, or to
      change direction
      Retention Rate
      User Traffic
      Bounce Rate
      User Happiness
      Conversion Rate
    • 67. 54
      It’s OK to write messy codes
      during validation process
    • 68. 55
      Your spec should be UI
      prototypes
      Written spec is easily
      obsolete
      The cost of writing,
      maintaining
      UI prototype is minimal
      and fun
    • 69. 56
      Suppress many of your ideas
      It’s not a feature to feature
      competition
      It’s who solves
      the problems the best
    • 70. 57
      Just build it now and fast.
      No need for optimization yet.
      Your code will likely
      be a throw away
      as you gather feedback
    • 71. 58
      Concentrate on core scenarios
      Make it great!
      No place for mediocrity
      People either love it
      Or hate it!
    • 72. 59
      Ignore your 10% cases.
      That will take 90% of your energy
    • 73. 60
      Eat your own dog food daily
      Use your own product
      regularly
      In the early phase,
      It’s better than hiring
      a full-time tester
    • 74. 61
      Boost virality, make sharing a click a way
      People love to share
    • 75. 62
      Boost retention rate.
      Human is a curios being
      Add a few analytics, news
      about themselves and friends
      e.g.“your doc has
      been viewed 5 times”
    • 76. 63
      Boost retention rate.
      Human craves for attentions
      RIM (Blackberry), Twitter, Facebook do this perfectly
      They make users addicted to their product, by telling
      them – “You’re important”
    • 77. 64
      Minimize Frictions
      Users are “very lazy” nowadays
      One click
      One minute setup
      No installation
    • 78. 65
      Don’t give user options
      Set appropriate default
      They have enough
      other things to
      worry
    • 79. 66
      Ship your product with a minimum feature set
      Enough to showcase
      Your core scenarios
      Add features
      later after
      after undisputable
      feedback
    • 80. 67
      After iterations, often ask what features to drop, instead of add
      Remember, your ideas are just
      a hypothesis; willing to let go
      Pivot on your core beliefs, and
      go to other directions appropriately
    • 81. 68
      What Microsoft, Google, Apple can’t afford, but you can?
      They can’t ship a crappy product,
      even for their beta
      They have reputation to maintain,
      You don’t!
      Use it to run
      a tight feedback loop to
      improve your product
    • 82. 69
      Without instant gratification
      Users drop like a fly
      First 60 second experience is critical
      I saw dead users leaving
    • 83. 70
      Create a product that 10x
      better
      Dare to be different
      Stand up and get noticed
      The world is a very noisyplace
      (and getting worse by day…)
    • 84. 71
      Collect less, better privacy,
      security.
      Many analytics tools are good
      enough to measure user behavior
    • 85. 72
      Don’t put any features, concepts that you can’t explain in 15 secs
      Does your product
      ship with you?
      Don’t make
      user think
    • 86. 73
      Reach Product-Market Fit Phase. Celebrate, Work Harder.
      40%
      will be upset
      If your service discontinues
    • 87. 74
      Watch out for your
      site performance
      Users have no patience
      for sluggish sites
    • 88. 75
      Do a side project/experiment.
      Minimize your risk
      Many side projects
      made it big
    • 89. 76
      Use Cloud Computing
      Let’s not be IT guys
      Let’s focus on building
      great product
      Sleep better at night
    • 90. 77
      Building a new walled garden,
      community is really, really hard
      Piggy back existing ones
      facebook
      linked-in
      twitter
    • 91. Customers, Where r u?
    • 92. 78
      Never too early to start your
      marketing campaign
      How about Day 1?
      Or even 90 days before
      valuable contents
      quality
      comments
    • 93. 79
      Show the world what you’re
      doing. Stealth Mode is counter intuitive.
      No need for private beta
      Are you worried someone
      stealing your ideas?
      Really?
      Are you building
      space shuttle?
    • 94. 80
      There is no such thing is product launching for startups
      Continuous
      improvement
      Unless you’re Apple.
    • 95. 81
      Approaching Press. Do you have unique, interesting stories?
      They’re not your writers
      Build a human
      connection first
    • 96. 82
      Don’t have good retention rate,
      Don’t go to press yet!
      News
      published
      Traffic
      Wasted
    • 97. 83
      Most effective way to acquire customers? Your passionate customers
      Good news, travel fast and far
    • 98. 84
      Save your money on press releases. Ineffective.
      Different countries, however, it could be different stories
    • 99. 85
      SEO, Social Media takes time to develop
      Millions of others
      are doing it;
      how you stand out?
    • 100. 86
      Viral is not a strategy
      People are immune. Mutate!
      Unless your
      Product is
      irresistibly good
    • 101. 87
      Simple pricing is almost always better than complex one
      Have 1-3 pricing
      options as opposed
      to complex pricing
      choices.
      Customers want predictable costs,
      not many options
    • 102. Going Global
    • 103. 88
      US is a crowded place.
      Go play outside
      Less competitors
      Growing market
      Of course, there is a catch…
    • 104. 89
      Partner locally. Remote management is an illusion
      Close, personal relations
      often are prerequisite
      outside US
    • 105. 90
      Global team communication
      is easy. Culture fit is hard
    • 106. 91
      In many countries, social status is more important
      …than your product itself.
      “Your product sucks,
      But X uses it, so I use it”
    • 107. 92
      One size does not fit all
      Package your product
      differently in
      other countries
      based on market
      demand
    • 108. Miscellaneous
    • 109. 93
      Nice guy finishes first
      … in the long run
    • 110. 94
      Admit mistakes, start from the top. We’re all learning
    • 111. 95
      Set expectation to team
      Changes are constant
      We’re a startup
      not a manufacturer
    • 112. 96
      You’ll be surprised, many people
      are routing for small guys
      Many offer
      a helping hand
    • 113. 97
      Whom Microsoft, Google, Apple should be worried?
      You
      They may have the muscles, but you can run faster
      Few of youwill be the next them
    • 114. 98
      Startup is not a job
      It’s a life style. It’s drive and
      passion to change the world
      with little financial reward.
      Yes, few made it very big
      Yes, it has been known that startup entrepreneurs have genetic defects
    • 115. 99
      It’s a growing pain experience with big personal rewards
    • 116. 100
      Subscribe to these excellent blogs, vlogs, podcasts
      • Paul Graham http://bit.ly/pgqy8
      • 117. Steve Blank http://bit.ly/juvQr
      • 118. Venture Hacks http://bit.ly/1BOE8x
      • 119. Both Side of Table http://bit.ly/EsjT7
      • 120. Mixergyhttp://bit.ly/rgDKP
    • 101
      It’s a blank canvas…
      What are you waiting for!
    • 121. For more presentationslike this….
      Please visit:
      http://www.slideshare.net/Guppers/presentations
    • 122. Contact me
      mailto:andy@gestone.com

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