So You Want To "Do" A Startup

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Startup fundamentals. Finding the right idea. Building the team. Customer development. Finding funding. Not failing. Video of the talk: https://vimeo.com/73662626

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So You Want To "Do" A Startup

  1. 1. SO YOU WANT TO “DO” A STARTUP SEPTEMBER 2013 VITALY M. GOLOMB @VITALYG
  2. 2. 367 Addison avenue Palo Alto, California
  3. 3. hewlett-packard garage
  4. 4. award-winning ecommerce platform - $640B print industry largest startup conference in central and eastern Europe VITALY M. GOLOMB www.golomb.net | @VITALYG
  5. 5. so what THE F*** is a startup?
  6. 6. A STARTUP IS... an experiment in search of a business model- steve blank
  7. 7. SCALABLE STARTUP transition company business model found product/market fit repeatable sales model managers hired break-even profitable rapid scale new senior management ~150 people “a startup is not a smaller version of a large company”- steve blank
  8. 8. A STARTUP IS A COMPANY THAT IS CONFUSED ABOUT: 1. WHAT ITS PRODUCT IS, 2. WHO ITS CUSTOMERS ARE, 3. HOW TO MAKE MONEY - DAVE MCCLURE
  9. 9. “A STARTUP’s default state is #failure. as a founder, you have to work to unfail it.”- VITALY M. GOLOMB
  10. 10. so what’s a goodstartup?
  11. 11. solves a painful problem for a specific customer
  12. 12. how can you be sure you’re solving a problem?
  13. 13. stop coding get out of the building talk to your customers face your fears validate assumptions
  14. 14. Jared Spool @jmspool Unintentional self genius activity- focused design paradigms SWEET SPOT
  15. 15. why would you want to start a company?
  16. 16. get good grades go to a good college get in a good company get regular promotions retire, play golf, die normal career
  17. 17. startup career -if successful- what people think it looks like what it really looks like
  18. 18. entrepreneurship is a mental disorder
  19. 19. but it takes a little crazy... to change the world
  20. 20. so, why are youdoing it?
  21. 21. for the money?
  22. 22. for the IPO money?
  23. 23. 50 100 150 200 250 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 number of tech ipos since 1999 17
  24. 24. funded startup success rate 30% fail 30% unprofitable 30% somewhat profitable 10% big success
  25. 25. by the way... #failure in startups is overgloried
  26. 26. failure is for losers - Beck
  27. 27. 1st time founder 18% repeat failed founder 20% repeat successful founder 30% the odds are against you
  28. 28. you’ll get acquired if you are lucky and good
  29. 29. freedom?
  30. 30. normal job: one boss
  31. 31. startup: every user is your boss
  32. 32. have a family? they will suffer
  33. 33. “as a startup ceo, i slept like a baby. i woke up every 2 hours and cried.” - ben horowitz
  34. 34. feeling defeated yet?
  35. 35. good news: you can improve your chances
  36. 36. find a problem you can’t live without solving
  37. 37. don’t build technology looking for a problem to solve solve a painful problem
  38. 38. how is it currently being solved?
  39. 39. no competitors = no problem = no market
  40. 40. choose a BIGproblem
  41. 41. lifestyle businesses are those that don’t scale
  42. 42. what do you mean scale?
  43. 43. $1,000,000 $2,000,000 $3,000,000 $4,000,000 Craigslist Apple Google Facebook Amazon McDonalds revenue per employee$3.6M $2.15M $1.25M $1.1M $691K $64K
  44. 44. venture capital business model 90% of investments fail 10% return entire fund + profit
  45. 45. for example: a $100M VC fund invests for 5 years + harvests for 5 years $500k-$2M 20-30 initial investments $2M-$6M 5-10 follow-on investments
  46. 46. angel investors invest $25K-$250K 5-20+ investments per year get in earlier at lower valuations exit earlier profitable at lower exit values
  47. 47. main ingredient: team
  48. 48. BUSINESS DESIGN ENGINEERING balanced startup team
  49. 49. corporate people startup people P experts in one area P years climbing ladder P stable lifestyle P real responsibilities P life balance P generalists P early start P cheap lifestyle P nothing to lose P nothing else matters
  50. 50. hiring is hard
  51. 51. O much money O stability O support structure O a long-term plan P stock P flexibility P chance to make a difference what you don’t have what you do have
  52. 52. founder and team morale jess lee - “why startup founders are always unhappy”
  53. 53. a little distraction
  54. 54. THE Ballmer peak
  55. 55. advisors help you avoid mistakes & make connections for a little equity
  56. 56. silicon valley ukraine P six generations of tech entrepreneurs P complete ecosystem P 50%+ of total VC money P 25% of world GDP P 15,500 new c.s. graduates yearly P lower cost of living P virgin market P less competition
  57. 57. funding
  58. 58. bootstrapping
  59. 59. friends, family, and foOls
  60. 60. angel investors
  61. 61. accelerators
  62. 62. venture capitalists
  63. 63. don’t forget: you are building a repeatable business
  64. 64. measure everything
  65. 65. what’s your business model?
  66. 66. symmetric customer pays for experience
  67. 67. asymmetric 3rd party pays for customer
  68. 68. internet-driven customer acquisition
  69. 69. nothinG matters more than traction
  70. 70. get to customers asap
  71. 71. what is all this lean bullshit?
  72. 72. lean = quick iterations
  73. 73. more chances to solve the problem
  74. 74. more chances to #unfail
  75. 75. - mark zuckerberg
  76. 76. want the slides? follow @vitalyg

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