Course 2 Failure Day Supplementary Reading


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  • Charleston Digital Corridor 05/27/11
  • Charleston Digital Corridor 05/27/11
  • Course 2 Failure Day Supplementary Reading

    1. 1. De-Pe Failure Day
    2. 2. Overview of failure <ul><li>Succeed and failure are not mutually exclusive </li></ul><ul><li>Often what seems like an overnight success, can be attributed </li></ul><ul><ul><li>years of hard work </li></ul></ul><ul><ul><li>persistence </li></ul></ul><ul><ul><li>learning from mistakes and failures. </li></ul></ul>
    3. 3. Failure in Chile <ul><li>Chilean culture harshly punishes failure in general. </li></ul><ul><li>It is difficult to be an entrepreneur in a society that punishes failure. </li></ul>
    4. 4. The Truth <ul><li>Most successful startups / people had failures at one time. </li></ul><ul><li>Failure is important learning process . </li></ul><ul><li>The ability to accept failure is an important characteristic of entrepreneurs. </li></ul>
    5. 5. How to Deal with Failure (1/3) <ul><li>Failure IS NOT FINAL </li></ul><ul><ul><li>Failure isn’t permanent or a part of you </li></ul></ul><ul><ul><li>Look at mistakes, as outcomes or results , NOT as permanent and personal </li></ul></ul><ul><li>“ People don’t Fail, it is the Plan, Strategies and Tactics that Fail.” </li></ul><ul><li>- Paul Mc.Kenna </li></ul>
    6. 6. How to Deal with Failure (2/3) <ul><li>Take responsibility for failure and Learn a lesson from it </li></ul><ul><ul><li>After a failure most people want to forget or hide their failure in shame. </li></ul></ul><ul><ul><li>It’s even easier to just blame failure on someone. </li></ul></ul><ul><ul><li>Important to analyze and learn from your mistakes even if its hard. </li></ul></ul><ul><li>“ I have not Failed, I have learnt 9,999 ways that won’t work.” - Thomas Edison </li></ul>
    7. 7. How to Deal with Failure (3/3) <ul><li>Failure can lead to good things </li></ul><ul><ul><li>Even after a failure many entrepreneurs find that skill they learn + contacts or collaborators they worked with on their startup end up being a huge value in their next venture </li></ul></ul><ul><li>Malcolm Forbes put it, &quot;Failure is success if we learn from it.&quot; </li></ul>
    8. 8. How to Guarantee Failure <ul><li>The worst way to fail is to not start! </li></ul><ul><li>The #1 problem people have is they just don’t do it </li></ul><ul><li>Actually starting a startup is very different than learning about startups. </li></ul><ul><li>You can read about something 100 times but if you make a mistake with your own time and money involved there is NO WAY you will forget those lessons </li></ul><ul><li>Experience trumps book learning </li></ul>
    9. 9. Why Startups Fail (1/3) <ul><li>Startups fail from unproven assumptions. Josh Kopelman: “What’s the bet?” </li></ul><ul><li>Identify key assumptions </li></ul><ul><li>Spend as little money as you can to prove your assumptions </li></ul><ul><li>Go out side of the building to find your answer </li></ul>
    10. 10. MANDATORY Question <ul><li>List some of the major assumptions for your business idea. </li></ul><ul><ul><ul><li>Hint: A big assumption most companies make is that people will care about / pay for their products! </li></ul></ul></ul>Please answer this question at
    11. 11. Why Startups Fail (2/3) <ul><li>More startups fail from a lack of customers than from a failure of product development. </li></ul><ul><ul><li>Nobody knows what the market really needs. </li></ul></ul><ul><ul><li>You have to push your product out in order to better listen and learn from the market. </li></ul></ul><ul><ul><li>Start selling now! You do not need to have a company to sell new ideas to customers. </li></ul></ul><ul><ul><li>This class focuses on using customer discovery process to create products that fit with the market. </li></ul></ul>
    12. 12. Why Startups Fail (3/3) <ul><li>Mike Maples: “You Have to Be Willing to Throw it all away”. </li></ul><ul><ul><li>Investing a months of time in an idea, it’s hard to let it go and move on to the next one. </li></ul></ul><ul><ul><li>Better to push a minimal viable product out and validate your idea quickly – we’ll show you how to do this </li></ul></ul>
    13. 13. Failure leading to new businesses models <ul><li>Pivot is changing your business model (not just iterating on your product) </li></ul><ul><ul><li>It’s the equivalent of taking a hit (no product traction) and spinning (product pivot) to find another path to the goal (product market fit). </li></ul></ul>
    14. 14. Product pivot <ul><li>Stop fretting about your idea. </li></ul><ul><ul><li>Flickr was a game. </li></ul></ul><ul><ul><li>Twittr was group SMS. </li></ul></ul><ul><ul><li>Youtube was a dating site. </li></ul></ul><ul><ul><li>Majority of companies end up with different ideas than they started with! </li></ul></ul><ul><li>Build. Ship. Pivot. Repeat. </li></ul>
    15. 15. Other types of pivots <ul><li>Vudu – distribution model pivot </li></ul><ul><ul><li>Went from selling hardware boxes (only a few thousand sold after $30m in investment to embedding their software int TV sets and DVD players) </li></ul></ul><ul><li>Ngmoco – pricing pivot </li></ul><ul><ul><li>Went from selling $40 games on iPhone to $2 games </li></ul></ul>
    16. 16. Pivot versus Iterate <ul><li>Red laser (Iterate) </li></ul><ul><ul><li>Showed grandma how easy this new app and it turned out it was completely foreign to her; she just had no idea how to use it! </li></ul></ul><ul><ul><li>Still believe in product and market, iterate to make it better </li></ul></ul><ul><li>Invite Media (Pivot) </li></ul><ul><ul><li>No traction with online video, hit a wall, switched to advertising exchange </li></ul></ul><ul><ul><li>Grew to $100m valutation in 2 years after pivot </li></ul></ul>
    17. 17. MANDATORY Discussion <ul><li>Give an example of a company that pivoted. </li></ul>Please answer this question at
    18. 18. <ul><li> Questions? </li></ul>
    19. 19. <ul><li>Thank You </li></ul>