MISTAKES YOU‟REABOUT TO MAKEBill Huntbill@thomlex.com
Why This Talk?Worked with 10 of the first FellowsThese are the biggestareas of course correctionI observed.
DON‟T THINK SO MUCH!
I Want My Idea to be Perfect!“I better dedicate lots  of time to planning and getting it right.”               Right?
Plan Less, Do MoreIf you work everything out up front • You will waste time    on un-important parts • You will miss    im...
Learning LoopsReduce the time to learn by tightening loops
Build an MVPBe small and focus on the real valueFocus on early adopters. • NOT full-featured • Potentially uglyRemember: T...
YOU ONLY THINK YOU KNOWWHERE YOU‟RE GOING
I Have a Great Idea!   “I need to hunker  down and build it.”              Right?
Your Idea is Only a HypothesisYour Idea is a first-stab at what you believethe market needs.Treat it like an experiment,  ...
Markets are DiscoveredTypical thought process:           “I have an idea. I need to build it            and convince peopl...
Before any human knew that 1+1=2, it was already true.  Someone didn‟t   invent additionand convince others. They discover...
Your Only Goal:Discover What the Market Needs
IN THE DARK
My Idea is Wicked Cool! “I better keep it     a secret.”              Right?
Stealth is Generally Really BadMany first-time founders think  “If I tell people, someone will steal my idea.”  “I need to...
Get FeedbackShare your vision - keeping it secret will fail!Speak with confidence, but be  listening for what is brokenGet...
Talk to People that MatterYour friends will all say you have a cool ideaFind the people that will have to pay money for yo...
Feedback SpecificsGet real feedback! “Would you use this?” “Would you pay to use it?” “What is most interesting to you?” “...
Trial Close Them“If I can deliver this, would you buy it?”
Understand how the money flowsWhich party actually has the need?Do they have money?How does the money  flow today?
Be Prepared to Change9 of 10 Ideas are Crap – be open to change!It‟s rare that a successful    company ends up    where it...
FOREVER ALONE
It‟s My Project!”  “I better do it all     by myself.”                Right?
Get a Co-founder• Distribution of responsibilities• Peer pressure• Support• Idea validation
Conclusion            Plan Less – Do More! Engage Customers - Discover Your Market!Tell Everyone Who Will Listen About You...
Questions?Bill Huntbill@thomlex.com
Upcoming SlideShare
Loading in...5
×

Mistakes You Are About To Make

402

Published on

Problems all first-time entrepreneurs face. Talk given at Thiel Foundation's 20 Under 20 program, based on course corrections of the 2011 class.

Published in: Business, Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
402
On Slideshare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
3
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • Lean Startups – Eric RiesFour Steps to the Epiphany – Steve BlankVPNet: 9months, $4m, team of engineers to get to first iteration
  • “I need to focus on the technology”
  • Press quotes, writeup on Tech Crunch, accolades all don’t matterStartup Genome: scaling too early is the biggest cause of failure (74%)
  • Ideas are a dime a dozen; execution is everything
  • Most companies have been involved with made changes.IncentAlign 3 pivots:IT resource allocation -> Sales resource allocation -> Sales visualization -> sales force optimization
  • Mistakes You Are About To Make

    1. 1. MISTAKES YOU‟REABOUT TO MAKEBill Huntbill@thomlex.com
    2. 2. Why This Talk?Worked with 10 of the first FellowsThese are the biggestareas of course correctionI observed.
    3. 3. DON‟T THINK SO MUCH!
    4. 4. I Want My Idea to be Perfect!“I better dedicate lots of time to planning and getting it right.” Right?
    5. 5. Plan Less, Do MoreIf you work everything out up front • You will waste time on un-important parts • You will miss important parts
    6. 6. Learning LoopsReduce the time to learn by tightening loops
    7. 7. Build an MVPBe small and focus on the real valueFocus on early adopters. • NOT full-featured • Potentially uglyRemember: This is an experiment, wherethe goal is to validate thebusiness model
    8. 8. YOU ONLY THINK YOU KNOWWHERE YOU‟RE GOING
    9. 9. I Have a Great Idea! “I need to hunker down and build it.” Right?
    10. 10. Your Idea is Only a HypothesisYour Idea is a first-stab at what you believethe market needs.Treat it like an experiment, not a long-term plan.
    11. 11. Markets are DiscoveredTypical thought process: “I have an idea. I need to build it and convince people to buy it.”Reality: A market need exists. You need todiscover what it is.
    12. 12. Before any human knew that 1+1=2, it was already true. Someone didn‟t invent additionand convince others. They discovered an existing principle.
    13. 13. Your Only Goal:Discover What the Market Needs
    14. 14. IN THE DARK
    15. 15. My Idea is Wicked Cool! “I better keep it a secret.” Right?
    16. 16. Stealth is Generally Really BadMany first-time founders think “If I tell people, someone will steal my idea.” “I need to highly refine my idea or even build a complete offering before showing the world.”The value you gain by sharing your idea is enormous.The risk you take is minimal.Getting someone to steal your idea is really hard. Try it.
    17. 17. Get FeedbackShare your vision - keeping it secret will fail!Speak with confidence, but be listening for what is brokenGetting others involved gets them engaged and makes them part of the process
    18. 18. Talk to People that MatterYour friends will all say you have a cool ideaFind the people that will have to pay money for your idea tosucceed • Potential customers • Investors • People who have a vested interest in saying „no‟. (or „yes‟ if you have what they need).You need potential customers to say something like “If only I had the XYZ widget, I would buy 50 today. I need a solution to my problem and XYZ has the best/only way to solve it.”
    19. 19. Feedback SpecificsGet real feedback! “Would you use this?” “Would you pay to use it?” “What is most interesting to you?” “What is not important to you?” “Do you use a competitive product?” “What do you pay?”Bad is Good There are bad spots in your idea. The faster you can uncover them, the better.
    20. 20. Trial Close Them“If I can deliver this, would you buy it?”
    21. 21. Understand how the money flowsWhich party actually has the need?Do they have money?How does the money flow today?
    22. 22. Be Prepared to Change9 of 10 Ideas are Crap – be open to change!It‟s rare that a successful company ends up where it started
    23. 23. FOREVER ALONE
    24. 24. It‟s My Project!” “I better do it all by myself.” Right?
    25. 25. Get a Co-founder• Distribution of responsibilities• Peer pressure• Support• Idea validation
    26. 26. Conclusion Plan Less – Do More! Engage Customers - Discover Your Market!Tell Everyone Who Will Listen About Your Idea! Get A Partner!
    27. 27. Questions?Bill Huntbill@thomlex.com
    1. A particular slide catching your eye?

      Clipping is a handy way to collect important slides you want to go back to later.

    ×