Ryan Allis-03 business-all that i've learned-allis

=
ALL THAT I’ve =

LEARNED 28
by

RYAN ALLIS

= All that I've learned by 28 PART 3 =

ABOUT

BUSINESS

THE PRESENTATION TOPICS COVERED
The presentation

826 slides COVERing What I’ve learned so far about

1 LIFE
2 THE WORLD
3 BUSINESS
< >

THE PRESENTATION PART I 1 TOPICS
The presentation
ABOUT THIS VIDEO PART TOPICS
PART 1 “ABOUT LIFE” INCLUDES 337 Slides and SECTIONS ON

GOALS INVESTING
VALUES COMMUNICATION
MENTORS INTERNAL SELF
NETWORKS LESSONS < >

The presentation
ABOUT THIS VIDEO PART 2 TOPICS
PART 2 “ABOUT THE WORLD” INCLUDES 210 slides and SECTIONS ON

SYSTEMS GEN Y
HUMAN RIGHTS CLIMATE CHANGE
GLOBAL KPIS INNOVATION
WORLD 2050
< >

The presentation
ABOUT THIS VIDEO PART 3 TOPICS
PART 3 “ABOUT BUSINESS” INCLUDES 269 slides and SECTIONS ON

ENTREPRENEURSHIP BUILDING A TEAM
MOTIVATION BUILDING SYSTEMS
PLANNING LEADERSHip
INCORPORATION STRATEGY
RAISING CAPITAL EXECUTION
PRODUCT DEVELOPMENT BUSINESS LESSONS
MARKETING MY MISSION
< >

= All that I've learned by 28 =

ABOUT

ENTREPRENURSHIP

ENTREPRENEURSHIP HOW TO START A BUSINESS

HERE ARE TEN STEPS TO
BUILDING YOUR COMPANY TO

$1M In Sales"

ENTREPRENEURSHIP TEN STEPS to $1M

1.  KNOW YOUR ROLE
2.  UNDERSTAND THE SYSTEM
3.  KNOW YOUR MOTIVATION
4.  BUILD YOUR PLAN
5.  INCORPORATE
6.  RAISE FUNDING OR BOOTSTRAP
7.  DEVELOP YOUR PRODUCT
8.  Execute YOUR MARKETING PLAN
9.  BUILD YOUR TEAM
10.  BUILD SCALABLE SYSTEMS

ENTREPRENEURSHIP 1 KNOW YOUR ROLE

IT IS THE ENTREPRENEUR WHO
ORGANIZES & ARRANGES THE USE
OF LAND, LABOR, & CAPITAL
TO CREATE AN OUTPUT
DEMANDED BY HUMANs

ENTREPRENEURSHIP WHAT IS AN ENTREPRENUER?
KNOW YOUR ROLE
1 KNOW YOUR ROLE 1

Entrepreneurs (n.)
INDIVIDUALs WHO BUILD ORGANIZATIONS
WHICH ARRANGE PEOPLE, CAPITAL & MACHINES
TO PRODUCE & DISTRIBUTE GOODS
WHICH CREATE VALUE FOR HUMANITY

ENTREPRENEURSHIP WHAT DO ENTREPRENEURS DO?
KNOW YOUR ROLE
1 KNOW YOUR ROLE 1

Entrepreneurs:
1. BUILD ORGANIZATIONS
2. ARRANGE PEOPLE, CAPITAL & MACHINES
3. PRODUCE & DISTRIBUTE GOODS
4. CREATE VALUE FOR HUMANITY

ENTREPRENEURSHIP KNOW YOUR ROLE
1 KNOW YOUR ROLE 1

“Both a sparkplug & CATALYST
THE ENTREPRENEUR IS AT ONCE THE
DRIVING FORCE BEHIND PRODUCTION
AND THE AGENT WHO COMBINES THE
OTHER RESOURCES IN WHAT IS HOPED WILL
BE A PROFITABLE VENTURE”
- McConnell and Brue in Economics

1 KNOW YOUR ROLE 1

“A person who organizes,
Operates, and assumes THE
RISK FOR A BUSINESS VENTURE”
- The American Heritage dictionary

1 KNOW YOUR ROLE 1

TRAITS OF AN ENTREPRENEUR:
Initiative CREATIVITY
DRIVE TOWARD EFFICIENCY ABILITY TO LEARN QUICKLY
BIAS TOWARD ACTION PERSERVERENCE
ABILITY TO TAKE FEEDBACK ABILITY TO DELAY GRATIFICATION
TOLERANCE FOR STRESS DRIVE TO ACHIEVE
DETERMINATION ABILITY TO PLAN
DECISIVeNESS ABILITY TO BUILD A TEAM
COURAGE ABILITY TO INSPIRE & LEAD
ABILITY TO DEAL WITH FAILURE ABILITY TO PRIORITIZE

1 KNOW YOUR ROLE 1

ENTREPRENEURS ARE SOMETIMES
GOOD CEOS AND SOMETIMES REALLY
BAD CEOS. FIND OUT WHAT you’re good
At and do that. You don’t have to

BE THE CEO.

1 KNOW YOUR ROLE 1

A CEO’S ROLE IN A STARTUP IS THE

CHIEF
EVERYTHING
OFFICER

1 KNOW YOUR ROLE 1

A START-uP CEO’S ROLE INCLUDES:
VISION CULTURE
STRATEGY LEADERSHIP
PRODUCT CREATION TEAM RECRUITING
FINANCING OPERATIONS
MEDIA RELATIONS BOARD RELATIONS

1 KNOW YOUR ROLE 1

LATER ON
THE CEO’s ROLE IS TO
1. Set Strategy & VIsion
2. RECRUIT & lead SENIOR TEAM
3. OVERSEE RESOURCE ALLOCATION
4. COMMUNICATE TO STAKEHOLDERS
5. BUILD A GREAT CULTURE

LEADERSHIP THE CEO1 ROLE YOUR ROLE
KNOW 1

YOUR ROLE AS CEO
IS NOT TO MICROMANAGE
It’s to hire people
EXPERIENCED THAN YOU
IN THEIR AREAS AND
PROVIDE THE BIG PICTURE

LEADERSHIP THE CEO1 ROLE YOUR ROLE
KNOW 1

GREAT CEO’s ARE GOOD AT
PUBLIC SPEAKING
CONNECTING DEEPLY WITH TEAM
SHARING THEIR PASSION
RAISING FUNDING
UNDERSTANDING THE CUSTOMER


ABOUT

THE
ENTREPRENEURIAL
SYSTEM

ENTREPRENEURSHIP KNOW YOUR ROLE THE SYSTEM
2 UNDERSTAND 1

THERE IS AN ENTIRELY DIFFERENT
WORLD OUT THERE—A WORLD
OF PROSPERITY & UNLIMITED WEALTH
You can enter this world
IF YOU ARE AWARE IT EXISTS
AND YOU WORK HARD

2 UNDERSTAND 1

TO ENTER THIS WORLD
YOU MUST UNDERSTAND HOW
THE SYSTEM OF ENTREPRENEURSHIP

WORKS

2 UNDERSTAND 1

THERE ARE THREE WAYS TO BUILD WEALTH
THROUGH ENTREPRENEURSHIP
THROUGH A SALARY, THROUGH DIVIDENDS,
and through THE SALE OF

STOCK YOU OWN

2 UNDERSTAND 1

THE SUCCESSFUL ENTREPRENEUR
CAN EARN TENS OF MILLIONS OF
DOLLARS FOR CHANGING AN INDUSTRY
AND BRINGING IMMENSE VALUE TO
A LARGE USER OR CUSTOMER BASE

2 UNDERSTAND 1

TO DO THIS, you’ll have to
•  DEVELOP A NOVEL PRODUCT
•  PROTECT YOUR IP
•  GET CUSTOMERS
•  BUILD A GREAT TEAM
•  RAISE CAPITAL
•  BUILD SCALABLE SYSTEMS


ABOUT

ENTREPRENEURIAL
MOTIVATION

3 FIND YOUR MOTIVATION 1

HERE’S MY MOTIVATION:

CREATE A SUSTAINABLE WORLD
IN WHICH EVERY HUMAN BEING
HAS ACCESS TO OPPORTUNITY


HERE’S WHAT I WANT MY EPITAPH TO SAY:
GREAT MAN, HUSBAND AND FATHER
ENTREPRENEUR, LEADER & HUMANITARIAN
LED ORGANIZATIONS & BUILT TECHNOLOGIES THAT
AdVANCED EQUALITY OF OPPORTUNITY GLOBALLY

Now I’m working on making this a reality


I’m building a company
Whose purpose is to
CONNECT HUMANS GLOBALLY
ON TABLETS & SMARTPHONES


OUR MISSION IS TO
BUILD A PLATFORM TO
ORGANIZE HUMAN RELATIONSHIPS
FOR THE TOUCH GENERATION
MAKING THE WORLD
MORE OPEN AND CONNECTED


FIND A MISSION
THAT YOU ARE DEEPLY
PASSIONATE ABOUT
AND BUILD A BUSINESS TO
PURSUE THE SHIT OUT OF IT


FINDING MY CORE MOTIVATION AT 18 HAS
BEEN CRITICAL TO GETTING ME THROUGH
THE DIFFICULT AND CHALLENGING TIMES
AND FINDING THE STRENGTH FROM
WITHIN TO PERSERVERE IN THE FACE OF
GENERALLY INSURMOUNTABLE ODDS


SPEND TIME THINKING AND MEDITATING
ON YOUR RAISON D’ETRE AND FIGURE
OUT WHAT CONSTITUTES THE CORE
MOTIVATIONS FOR WHAT YOU DO AND

WHO YOU ARE


Know who you want to become
AND YOU CAN BEGIN TO DIRECT YOUR
LIFE RATHER THAN LETTING OUTSIDE
FACTORS CONTROL YOU.
DIRECT YOUR LIFE TOWARD YOUR

DEFINITE CHIEF AIM.


LET WHO YOU ARE AND
WHAT YOU BELIEVE
COME OUT IN
ALL THAT YOU CREATE


FIGURE OUT WHAT YOU’RE PASSIONATE ABOUT
WRITE DOWN YOUR GOALS & PRINT THEM
WRITE DOWN YOUR LIFE PURPOSE
DETERMINE THE CHANGE YOU SEEK
THEN START A COMPANY TO

MAKE THAT CHANGE REAL


ABOUT

BUSINESS
PLANNING

ENTREPRENEURSHIP UNDERSTAND THE SYSTEM
4 BUILD YOUR PLAN

TODAY, MOST PLANS ARE SLIDE DECKS WHICH INCLUDE:

1. TEAM
2. PROBLEM
3. PRODUCT & TECHNOLOGY
4. MARKET & COMPETITION
5. revenue model
6. FINANCIAL PROJECTIONS

ENTREPRENEURSHIP KNOW YOUR ROLE – THE TEAM
4 BUILD YOUR PLAN 1

BUSINESS IDEAS ARE A DIME A DOZEN
WHAT REALLY MATTERS IS
THE OPERATIONAL EXECUTION
AND THE QUALITY OF

THE TEAM

ENTREPRENEURSHIP KNOW YOUR ROLE – THE PROBLEM 1
4 BUILD YOUR PLAN

CLEARLY ILLUSTRATE
THE PROBLEM YOU ARE SOLVING
HOW YOU ARE SOLVING IT
AND FOR WHOM

ENTREPRENEURSHIP KNOW YOUR ROLE – THE PRODUCT 1
4 BUILD YOUR PLAN

SHOW PICTURES OF A PROTOTYPE
OR WIREFRAMES & MOCKUPS
MAKE YOUR SPECIFIC SOLUTION

EASILY VISUALIZED

ENTREPRENEURSHIP KNOW YOUR ROLE – THE PRODUCT 1
4 BUILD YOUR PLAN

SHARE YOUR PRODUCTION TIMELINE
AND KEY MILESTONES TOWARD
INITIAL PRODUCT DELIVERY
AND DISCUSS FUTURE PRODUCTS
AND SERVICES

ENTREPRENEURSHIP KNOW YOUR ROLE – THE MARKET
4 BUILD YOUR PLAN 1

ADDRESS THE FOLLOWING ABOUT YOUR MARKET
SUPPLIERS
BARRIERS TO ENTRY
INTELLECTUAL PROPERTY
MARKET SIZE
MARKET TIMING
DIRECT COMPETITORS
POTENTIAL PARTNERS

ENTREPRENEURSHIP KNOW YOUR ROLE – REVENUE MODEL1
4 BUILD YOUR PLAN

ADDRESS THE FOLLOWING IN YOUR REVENUE SECTION
B2B or B2c
DISTRIBUTION CHANNELS
WHOLESALE VS. RETAIL REVENUE
ONE TIME VS. SUBSCRIPTION REVENUE
USER & CUSTOMER GROWTH ASSUMPTIONS
UNIT COSTS AT SCALE
UNIT REVENUE AT SCALE

4 BUILD YOUR PLAN—FINANCIALS 1

ADDRESS THE FOLLOWING IN YOUR FINANCIAL PROJECTIONS
REVENUE ASSUMPTIONS
COST ASSUMPTIONS
Revenue by Month
COST BY MONTH BY CATEGORY
NET INCOME BY MONTH BY CATEGORY
TIME TO BREAKEVEN
FUNDS NEEDED TO REACH NEXT MILESTONE
TOTAL EXPECTED FUNDS NEEDED

4 BUILD YOUR PLAN—FINANCIALS 1
EXAMPLE 60 Month PRO FORMA P&L PROJECTIONS
$1,500,000""

$1,000,000""

$500,000""

$0""

($500,000)"

($1,000,000)"

($1,500,000)"

($2,000,000)"

($2,500,000)"
0" 6" 12" 18" 24" 30" 36" 42" 48" 54" 60"

Revenue Expenses Aggregate Net Income

4 BUILD YOUR PLAN—CHECKLIST 1

MAKE SURE YOUR DECK ANSWERS ALL THESE QUESTIONS
! Who’s on your team?
! What is their background?
! WHAT IS THE NEED FOR THE PRODUCT?
! HOW WILL THE PRODUCT BE PRICED?
! WHAT IS THE SIZE OF THE MARKET?
! IS THE MARKET READY FOR THE PRoDUCT?
! WHAT WILL IT COST TO PRODUCE THE PRODUCT?
! WHAT IS THE TOTAL START-up COST?

4 BUILD YOUR PLAN—CHECKLIST 1

MAKE SURE YOUR DECK ANSWERS ALL THESE QUESTIONS
! HOW MUCH IS NEEDED TO REACH BREAKEVEN?
! WILL YOU NEED TO ACQUIRE ANY IP?
! WHO IS YOUR TARGET CUSTOMER?
! WHAT ROLES WILL YOU FILL IN THE FUTURE?
! WHAT ARE YOUR FUTURE PRODUCTS?
! WHAT ARE YOUR ANNUAL Revenue PROJECTIONS?
! WHAT ARE YOUR ANNUAL COST PROJECTIONS?
! WHAT ARE YOUR ANNUAL PROFIT PROJECTIONS?


ABOUT

INCORPORATING

ENTREPRENEURSHIP 5 INCORPORATE

NOW THAT YOU HAVE YOUR PLAN
It’s time to become official

AND INCORPORATE

ENTREPRENEURSHIP NEGOTIATING POWER BASED ON
RAISING CAPITAL 5 INCORPORATE

THE BENEFITS OF INCORPORATING
MUCH LOWER TAXES
LIABILITY PROTECTION
BEING TAKEN SERIOUSLY
ABILITY TO OPEN A BANK ACCOUNT
ABILITY TO HIRE EMPLOYEES
ABILITY TO RAISE INVESTMENT
ABILITY TO GAIN CORPORATE CREDIT


TO INCORPORATE YOURSELF
YOU JUST NEED TO KNOW
THE NAME OF THE COMPANy
THE STATE YOU WISH TO INCORPORATE IN
THE NUMBER OF SHARES TO CREATE
THE INITIAL OWNERSHIP OF THOSE SHARES


YOU CAN INCORPORATE VIA
LEGALZOOM.com
INCORPORATE.COm
OR VIA ANY CORPORATE LAW FIRM


IN THE U.S. you can start a
S Corp Most firms that plan on
C Corp r a i s i n g c a p i ta l a r e
Delaware C Corporations
LLC
BENEFIT CORP


IN CHOOSING A LAW FIRM LOOK AT
REPUTATION & REFERENCES
START-up EXPERIENCE
INTRODUCTION TO INVESTORS
IPO EXPERIENCE
PARTNER CHEMISTRY


ONCE INCORPORATED YOU’ll
RECEIVE YOUR
ARTICLES OF INCORPORATION
SET OF BYLAWS
SET OF STOCK CERTIFICATES


THEN YOU CAN GET AN
EMPLOYER IDENTIFICATION NUMBER
FROM THE IRS (YIPEE!)
AND OPEN A BANK ACCOUNT


ABOUT

RAISING
CAPITAL

ENTREPRENEURSHIP 6 RAISE FUNDING OR BOOTSTRAP

IF POSSIBLE TRY TO
GET AS FAR AS YOU CAN
WITHOUT RAISING
OUTSIDE CAPITAL


AT ICONTACT
WE BOOTSTRAPPED
FOR THE FIRST 3 years


IN THE BEGINNING
DO WHATEVER IT TAKES
TO KEEP COSTS LOW


WHERE TO LOOK
DEPENDS ON HOW MUCH
YOU NEED AND HOW FAR
ALONG YOU ARE

WELCOME TO THE MATRIX OF GREEN
<$25k $25k-$500k $500k to $5M $5m to $25m $25m to $50m >$50M
CREDIT CARDS Yes

YOUR SAVINGS YES Yes if PRUDENT

Friends & Family Yes Yes if available

P2p FUNDING Yes Yes if available Yes

BANKS Yes if COLLATERAL YES IF PROFITABLE YES IF PROFITABLE

Angel investors Yes YES

SUPER ANGELS YES YES

EARLY STAGE VC YES

Growth StAGE VC YES

Mezzanine debt YES

LATE Stage VC YES

PRIVATE EQUITY YES YES

PUBLIC MARKETS YES

PIPES YES

CORPORATE BONDS YES

ENTREPRENEURSHIP FACTORS IN RAISE
RAISING CAPITAL HOW6MUCH TOFUNDING OR YOUR INVESTORS
RAISE SELECTING BOOTSTRAP

DO YOUR BEST TO
AVOID RAISING MORE
THAN 1x your current
ANNUALIZED REVENUE

ENTREPRENEURSHIP NEGOTIATING POWER OR BOOTSTRAP
RAISING CAPITAL 6 RAISE FUNDING BASED ON

YOUR NEGOTIATING POWER BASED ON
LEVEL OF NEED FOR THE MONEY
YOUR EXPERIENCE
YOUR TEAM
PRODUCT & TECHnOLOGY
COMPETITION
OTHER TERM SHEETS
QUALITY OF YOUR ADVISORS

ENTREPRENEURSHIP MOST IMPORTANT TERMS
RAISING CAPITAL 6 RAISE FUNDING OR BOOTSTRAP

THE MOST IMPORTANT INVESTMENT TERMS
VALUATION " THE HIGHEST VALUATION Isn’T ALWAYS BEST

OPTION POOL SIZE
LIQUIDATION PREFERENCES
FOUNDER REVESTING
PREFERRED VETO RIGHTS
TYPE OF PREFERRED STOCK
BOARD SEATS

ENTREPRENEURSHIP FACTORS INFUNDING OR YOUR INVESTORS
RAISING CAPITAL 6 RAISE SELECTING BOOTSTRAP

FACTORS IN SELECTING YOUR INVESTORS
CHEMISTRY WITH THE PARTNER
OPERATIONAL EXPERIENCE
CURRENT PORTFOLIO ALIGNMENT
PARTNER/FIRM EXIT RESULTS
EXECUTIVE RECRUITING ABILITY
TERMS OF INVESTMENT


TECH PRE-REVENUE VALUATION GUIDELINES
$1m to $25m PMV depending on Factors like
•  CEO Past exits
•  TEAM EXPERIENCE
•  NUMBER OF USERS
•  NUMBER OF ENGINEERS
•  LOCATION OF COMPANY

X2 if you’re in silicon valley


PRE-REVENUE VALUATION EXAMPLE
INCORPORATED b2c tech COMPANY RUN BY FIRST TIME
ENTREPRENEUR with 1 engineer

Pre-Money Valuation: $1m-$2m


INCORPORATED b2c tech COMPANY RUN BY FIRST TIME
ENTREPRENEURS who have been through y
combinator with a good idea AND 2 engineers

Pre-Money Valuation: $4m-8m


INCORPORATED tech COMPANY run By experienced CEO
with 10 years c-level experience, $100m prior Exit,
& 5 engineers

Pre-Money Valuation: $10m-20m


TECH POST-REVENUE VALUATION GUIDELINES
1x to 12x revenue based on factors like
•  AMOUNT OF REVENUE
•  REVENUE GROWTH RATE
•  NUMBER OF USERs/customers
•  TYPE OF REVENUE
•  CEO/TEAM EXPERIENCE
•  COMPANY MARKET
•  LOCATION OF COMPANY

ENTREPRENEURSHIP FACTORS IN SELECTING BOOTSTRAP
RAISING CAPITAL TERM6SHEETS FUNDING OR YOUR INVESTORS
RAISE

AS YOU GO ABOUT FUNDRAISING
YOU USUALLY WANT TO CREATE
A COMPETITIVE PROCESS

RAISE

BUILD YOUR FUNDING
PROCESS TO ENSURE
YOU RECEIVE
MULTIPLE TERM SHEETS

RAISE

HAVE ACCESSIBLE
IN YOUR HEAD
VALUATION COMPARABLES
• RECENT SIMILAR Venture Deals
• Recent SIMILAR M&A deals
• Public comparables

ENTREPRENEURSHIPHOW SHEETS RAISE
RAISING CAPITAL TERM6MUCH TOFUNDING OR YOUR INVESTORS
FACTORS IN SELECTING BOOTSTRAP
RAISE

RAISE MONEY
ONLY FROM SMART
PEOPLE YOU REALLY LIKE
You’LL BE MARRIED to
Them FOR THE NEXT
3-10 years

ENTREPRENEURSHIPHOW SHEETS RAISE
RAISING CAPITAL TERM6MUCH TOFUNDING OR YOUR INVESTORS
FACTORS IN SELECTING BOOTSTRAP
RAISE

WAIT TO RAISE
Your series A
UNTIL You HAVE
PROVEN MATHEMATICALLY
THAT X DOLLARS SPENT
BRINGS Y DOLLARS BACK

ENTREPRENEURSHIPWHEN TO RAISESELECTING BOOTSTRAP
FACTORS IN
RAISE

Don’t raise
MONEY UNTIL
You know what
You’ll Use it for


ABOUT

PRODUCT
DEVELOPMENT

ENTREPRENEURSHIPWHEN TO RAISESELECTING YOUR
RAISING CAPITAL TERM7SHEETS YOUR PRODUCT INVESTORS
FACTORS IN
BUILD

GREAT PRODUCTs FULFILL
ONE OR MORE OF THE FOLLOWING
12 KEY HUMAN DESIRES
HUMAN CONNECTION HUMAN EXPRESSION
making money TAKING CARE OF FAMILY
HELPING OTHERS LEARNING
FINDING A PARTNER HEALTH & SURVIVAL
NEW EXPERIENCES IMPRESSING OTHERS
SAFETY COMFORT & RELAXATION

FACTORS IN
BUILD

GREAT PRODUCTs
BRING JOY AND SMILES
TO THEIR USERS’ FACES

FACTORS IN
BUILD

GREAT PRODUCTs
ARE SIMPLE ON THE OUTSIDE
AND POWERFUL ON THE

INSIDE

FACTORS IN
BUILD

GREAT PRODUCTs HAVE
THE FOLLOWING CHARACTERISTICS
1.  FULFILLS CORE HUMAN DESIRE
2.  A 4x+ Markup OVER PRODUCTION COSTS
3.  RECURRING PURCHASE NEEDED
4.  EASILY UPSOLD & CROSS SOLD
5.  QUALITY CONSTRUCTION
6.  BEAUTIFUL DESIGN
7.  HIGHLY EFFECTIVE AT ITS STATED PURPOSE
8.  AN EASY TO REMEMBER NAME

FACTORS IN
BUILD

PRODUCT MANAGEMENT
IS THE PROCESS OF DEFINING
WHAT You’RE BUILDING
ASSEMBLING THE TEAM
AND BUILDING IT

FACTORS IN
BUILD

THERE ARE TWO BAD EXTREMES
IN PRODUCT DEVELOPMENT
1)  MANiACAL DICTATORIAL PRODUCT DESIGN
2)  DESIGN BY COMMITTEE

FACTORS IN
BUILD

YOUR GOAL IS TO BE HERE
ON THE SPECTRUM OF
PRODUCT MANAGERS
“THE GREEN ZONE”
Design By FOCUSED LEADERSHIP & MANIACAL
VISION WITH FEEDBACK
Committee HELL FROM SELECT PERSONAS DICTATOR DESIGN
TOO UNFOCUSED TOO LITTLE PERSPECTIVE

THE SPECTRUM OF PRODUCT MANAGERS

FACTORS IN
BUILD

YOU WANT TO BE SLIGHTLY
RIGHT OF CENTER WITH DESIGN
IT IS BETTER TO HAVE A STRONG VISION
AND BE SLIGHTLY MANIACAL
THEN BE UNSURE ABOUT THE CHANGE
YOU WISH TO CREATE IN THE WORLD

FACTORS IN
BUILD

GREAT PRODUCT OWNERS
ARE ABSOLUTELY PASSIONATE
ABOUT THE CHANGE THEY WISH
TO MANIFEST IN THE WORLD

FACTORS IN
BUILD

BUT WHAT
IN THE WORLD
IS A PERSONA?

FACTORS IN
BUILD

GREAT SOFTWARE
IS BUILT USING
AGILE DEVELOPMENT
TEST-DRIVEN CODE
OBJECT ORIENTED PROGRAMMING
A TEAM THAT UNDERCOMMITS
CLEAR MARKUP & STANDARDS


ABOUT

MARKETING

ENTREPRENEURSHIP 8
MARKETING BRANDING EXECUTE YOUR MARKETGING PLAN

GOOD MARKETING IS JUST
GOOD STORYTELLING
ACROSS MULTIPLE MEDIA
IN A TRACKABLE AND FINANCIALLY
SCALABLE MANNER

ENTREPRENEURSHIP 8
MARKETING BRANDING EXECUTE YOUR MARKETING PLAN

MARKETING IS
ENSURING THAT THE
RIGHT PEOPLE HAVE HEARD
THE RIGHT THINGS
ABOUT YOUR PRODUCT
AND ORGANIZATION

ENTREPRENEURSHIP 8

A BRAND IS SIMPLY THE
AGGREGATEd SUM TOTAL
OF EVERY Human BEING’S
EXPERIENCE WITH YOUR
COMPANY & PRODUCTs

ENTREPRENEURSHIP 8

MARKETING IS GENERATING
AN INTERESTED LEAD
SALES IS TURNING THE
LEAD INTO A CUSTOMER
ACCOUNT MANAGEMENT IS
TURNING A CUSTOMER INTO
A LIFETIME EVANGELIZER

ENTREPRENEURSHIP 8

IN TODAY’s WORLD
MARKETING STARTS
WITH PRODUCT DEVELOPMENT

ENTREPRENEURSHIP 8

YOU Can’T SUCCEED
MARKETING A CRAPPY
PRODUCT FOR LONG

ENTREPRENEURSHIP 8

SO IF You’re marketing
A CRAPPY PRODUCT

STOP

ENTREPRENEURSHIP 8

AND PUT YOUR FUNDS
INTO BUILDING A

GREAT PRODUCT

ENTREPRENEURSHIP 8

THEN WHEN YOU HAVE
A GREAT PRODUCT

START STORYTELLING

ENTREPRENEURSHIP 8

THE 6 KEYs TO SUCEESS WITH
MARKETING ARE
1.  AMAZING WORD OF MOUTH FROM A GREAT PRODUCT
2.  KNOWING THE FINANCIAL LIFETIME VALUE OF A CUSTOMER
3.  A TRACKING SYSTEM THAT CAN TELL YOU COST PER LEAD PER
CHANNEL
4.  A TRACKING SYSTEM THAT CAN TELL YOU CONVERSION RATE
PER CHANNEL
5.  CONSTANT TESTING OF NEW CHANNELS, CREATIVE, AND FUNNEL
PROCESSES
6.  GREAT STORYTELLING

ENTREPRENEURSHIP 8 EXECUTE YOUR MARKETING PLAN
MARKETING ADVERTISING

10% of your MONTHLY
Advertising budget
Should be spent on
TESTING NEW CHANNELS

ENTREPRENEURSHIP 8 EXECUTE YOUR MARKETGING PLAN
MARKETING CUSTOMER ACQUISITION COST

You don’t
KNOW YOUR CUSTOMER
ACQUISITION COST?

ARE YOU SERIOUS?

ENTREPRENEURSHIP 8 EXECUTE
MARKETING LIFE TIME VALUE YOUR MARKETGING PLAN

You don’t
KNOW YOUR
Customer LTV?

ARE YOU SERIOUS?

ENTREPRENEURSHIP 8 EXECUTE EXAMPLE
MARKETING RECURRING CAC & LTVYOUR MARKETGING PLAN

ROUGH EXAMPLE
DETERMINING WHAT YOU CAN
SPEND TO ACQUIRE A NEW
RECURRING CUSTomER
What You Can Spend to
Lifetime
Monthly Revenue Average Customer Life Acquire a New
Revenue
Customer
Recurring
Customer $50 48 Months $2400 Up to $800

ENTREPRENEURSHIP 8 EXECUTE YOUR MARKETGING
MARKETING Non-RECURRING CAC & LTV EXAMPLE PLAN

ANOTHER ROUGH EXAMPLE
DETERMINING WHAT YOU CAN SPEND
TO ACQUIRE A NEW CUSTomER
Average Number What You Can
Average Purchase 3 Year Revenue
of Purchases Spend to Acquire a
Price Estimate
Within 3 Years New Customer

Non-recurring
Billed Customer $50 6 $300 Up to $100

ENTREPRENEURSHIP 8

SCALE YOUR AD BUDGET
SCIENTIFICALLY BY
TRACKING LEAD
ACQUSITION COST
& CONVERSION RATE
BY ADVERTISING CHANNEL

ENTREPRENEURSHIP 8

ONLINE MARKETING CHANNELS
SEO – GOOGLE, YAHOO, BING
PPC - GOOGLE Adwords / BING ADCENTER
SOCIAL PRESENCE – FACEBOoK, TWITTER, youTUBE
SOCIAL ADS – FACEBOOK, TWITTER, Youtube ADS
DISPLAY – BANNER ADVERTISING
AFFILIATES – CJ & LINKSHARE
Review SITES – YELP, CITYSEARCH, GOOGLE LOCAL
DAILY DEALS – GROUPon & LIVING SOCIAL
EMAIL FOLLOWUP – iCOntact & MAILCHIMP

ENTREPRENEURSHIP 8

OFFLINE MARKETING CHANNELS
TELEVISION
PRINT ADVERTISING
RADIO
YELLOW PAGES
DIRECT MAIL
TRADESHOWS
EVENT SPONSORSHIPS
BILLBOARDS
CAMPUS REPS

ENTREPRENEURSHIP 8

THE KEY IS TO TEST
ALL OF THE CHANNELS
AND TRACK
THE ACTUAL
RESULTS FROM
EACH ONE

ENTREPRENEURSHIP 8
TO GROW YOUR SALES
CALCULATE CPL & COnVERSION RATE BY CHANNEL
DETERMINE WHAT YOU CAN PAY PER NEW CUSTOMER
TEST NEW ADVERTISING CHANNELS SCIENTIFICALLY
CREATE A PREMIUM VERSION OF YOUR PRODUCt
TEST DOUBLING YOUR PRICE AND SEE WHAT HAPPENS
GET MORE AFFILIATES/DISTRIBUTORS
OPEN UP MORE SALES OFFICES
OPEN UP MORE RETAIL LOCATIONS
BUILD ADDITIONAL PRODUCTS
HIRE MORE SALES PEOPLE
HIRE SOMEONE TO SELL MORE TO EXISTING CUSTOMERS
RAISe CAPITAL AND EXPAND YOUR ADVERTISING


ABOUT

BUILDING A
TEAM

ENTREPRENEURSHIP 9
MARKETING BRANDING BUILD YOUR TEAM

You’ve spent months
GETTING YOUR BUSINESS
TO THE POINT WHEN You’re
READY TO MAKE THE FIRST
SALE

ENTREPRENEURSHIP 9

NOW IT’s TIME TO
BUILD YOUR TEAM
AS SOON AS YOU CAN
AFFORD TO BRING ON
YOUR FIRST TEAM MEMBER
DO IT

ENTREPRENEURSHIP 9

MY FAVORITE INTERVIEW QUESTIONS TO ASK:
WHAT ARE YOU PASSIONATE ABOUT?
TALK ABOUT SOME OF THE EXPERIENCES IN LIFE
THAT HAVE BEEN VERY CHALLENGING
WHAT CHANGE DO YOU WANT TO MAKE IN THE
WORLD IN YOUR LIFE TIME?
IF YOU MET AN ALIEN, HOW WOULD YOU
DESCRIBE YOURSELF?
TELL ME ABOUT YOUR FAILURES
TELL ME ABOUT THE GOALS YOU HAVE

ENTREPRENEURSHIP 9

YOU CAN RECRUIT VIA
EXISTING EMPLOYEE REFERRALS
COMPETITORS
DICE/MONSTER/CAREERBUILDer
LINKEDIN/THE LADDERS
TECHCRUNCH JOBS
YOUR INVESTORs’ CONTACTS
CORPORATE RECRUITERS
PRESS PICKUPS

ENTREPRENEURSHIP 9

THE BEST TEAM
MEMBERS ARE OFTEN
THE ONES WHO ARE CURRENTLY

EMPLOYED

ENTREPRENEURSHIP 9

Your c-level team
SHOULD BE
EXCLUSIVELY
MADE UP OF JEDIS

ENTREPRENEURSHIP 9

MAKE GOALS QUANTITATIVE
AND GIVE FREQUENT FEEDBACK
TO YOUR TEAM

ENTREPRENEURSHIP 9

IF SOMEONE ISN’T WORKING
OUT LET THEM GO AND
FREE THEM UP TO DO
SOMETHING THEY
ARE GOOD AT


ABOUT

Building
systems

ENTREPRENEURSHIP 10
9 SCALABLE SYSTEMS

SYSTEMS ARE A
COLLECTION OF
PROCESSES THAT RUN
WITHOUT YOU

ENTREPRENEURSHIP 10
MARKETING BRANDING BUILD SCALABLE SYSTEMS

“Achievement comes to someone when he is able
to do great things for himself. Success comes
when he empowers followers to do great things
with him. Significance comes when he develops
leaders to do great things for him. But legacy is
created only when a person puts his organization
into the position to do great things without him.”

-JOHN C. MAXWELL

ENTREPRENEURSHIP
MARKETING 10
9 BUILD YOUR TEAM
SCALABLE SYSTEMS

Examples of systems
PERFORMANCE REVIEWS MARKETING TESTING
OFFICE FOOD DELIVERY RFP MANAGEMENT
NEW EMPLOYEE TRAINING EXPENSE REIMBURSEMENT
DOWNTIME NOTIFICATION HARDWARE SETUP
OPERATIONS REVIEWS TAX DOCUMENTATION
PRODUCT FEEDBACK LEGAL CONTRACTS
PURCHASE ORDERS 360 FEEDBACK
FINANCIAL PLANNING JOB DESCRIPTIONS
PAYROLL EXTERNAL COMMUNICATIONS
CLIENT SATISFACTION INTERNAL COMMUNCIATIONS
VACATION REQUESTS ACCOUNTING

ENTREPRENEURSHIPPEOPLE BUILD YOUR TEAM
SYSTEMS 10
9 SCALABLE SYSTEMS

AFTER THE FIRST year
Your success is DETERMINED
MORE BY THE PEOPLE YOU HIRE
THAN BY YOU
SO STOP TRYING TO DO
EVERYTHING

ENTREPRENEURSHIP 10
9 SCALABLE SYSTEMS

FOR A BASIC ACCOUNTING
SYSTEM WE USE
QUICKBOOKS ONLINE

ENTREPRENEURSHIP 10
9 SCALABLE SYSTEMS

BE SURE TO TRACK
YOUR BOOKS ACCURATELY
FROM THE BEGINNING

ENTREPRENEURSHIP 10
9 SCALABLE SYSTEMS

AND ALWAYS
SEPARATE PERSONAL AND
BUSINESS EXPENSES

ENTREPRENEURSHIP 10
9 SCALABLE SYSTEMS

WAY TOO MUCH TIME
IS SPENT in
MEETINGS

ENTREPRENEURSHIP 10
9 SCALABLE SYSTEMS

ADOPT a
MAKERS’ SCHEDULE

ENTREPRENEURSHIP 10
9 SCALABLE SYSTEMS

HAVE A
DAILY STANDUP


ABOUT THE

STEPS to $1M

ENTREPRENEURSHIP 100 STEPS in REVIEW
MARKETING

1.  FIGURE OUT WHAT CHANGE you WANT TO MAKE IN
THE WORLD
2.  BEGIN RESEARCHING THE INDUSTRY AND
COMPETITORs
3.  DETERMINE HOW TO CREATE YOUR PRODUCT
4.  TALK TO POTENTIAL CUSTOMERS FOR FEEDBACK
5.  COME UP WITH NAME FOR YOUR COMPANY/PRODUCT

MARKETING

6.  BUILD YOUR PITCH DECK
7.  CREATE PRO FORMA FINANCIAL PROJECTIONS
8.  DETERMINE CAPITAL NECESSARY TO GET TO CASH
FLOW POSITIVE
9.  GET FEEDBACK ON PITCH DECK FROM ADVISORS
10. FIND A CO-FOUNDER IF NEEDED

MARKETING

11.  SELECT A QUALITY CORPORATE LAW FIRM IN YOUR
AREA
12.  INCORPORATE & OBTAIN AN EIN
13.  OPEN A COMPANY BANK ACCOUNT
14.  TALK TO YOUR ATTORNEY ABOUT MAKING an 83b
election
15.  BUILD BASIC PRODUCT PROTOTYPE/Minimum
viable product

MARKETING

16.  CREATE EMPLOYEE AGREEMNTS FOR EVERYONE
17.  CREATE CONFIDENTIALITY AGREEMENTS FOR
EVERYONE
18.  HOLD INITIAL BOARD OF DIRECTORS MEETING
19.  CREATE YOUR RSU/STOck options plan
20.  ISSUE STOCK CERTIFICATES

MARKETING

21.  FUND YOUR BANK ACCOUNT AND ORDER CHECKS
22.  DETERMINE IF YOU NEED OUTSIDE CAPITAL TO
START
23.  RAISE ANY INITIAL STARTUp CAPITAL NEEDED
24.  GET A COMPANY DEBIT/CREDIT CARD
25.  SET UP YOUR ACCOUNTING SOFTWARE

MARKETING

26.  SELECT YOUR PAYROLL PROVIDER
27.  TRADEMARK THE NAME(S) of your company /
Product
28.  DESIGN YOUR LOGO
29.  CREATE BUSINESS CARDS
30.  FIND OFFICE SPACE TO WORK OUT OF

MARKETING

31. FURNISH YOUR OFFICE AS NEEDED
32. PURCHASE ANY SOFTWARE/HARDWARE YOU WILL
NEED
33. GET WIRELESS INTERNET ACCESS SETUP AS NEEDED
34. OBTAIN A UPC IF YOUR PRODUCT WILL BE SOLD IN
STORES
35. DESIGN LABELING/PACKAGING IF NECESSARY

MARKETING

36.  FINISH PRODUCT ALpHa/PROTOTYPE
37.  GET INITIAL USER/CUSTOMER FEEDBACK
38.  ORDER INITIAL INVENTORY OF PRODUCTS IF NEEDED
39.  REGISTER YOUR DOMAIN NAME
40.  DESIGN YOUR COMPANY WEB SITE

MARKETING

41.  INSTALL GOOGLE ANALYTICS ON YOUR WEB SITE
42.  IF NEEDED, INSTALL SHOPPING CART ON WEB SITE
43.  APPLY FOR MERCHANT ACCOUNT TO ACCEPT CREDIT
CARDS
44.  SIGN UP FOR EMAIL LIST TOOL like icontact or
mailchimp
45.  Optimize your web site for search engines &
ADD BLOG

MARKETING

46.  INSTALL A CRM SYSTEM
47.  HIRE INITIAL STAFF AS NEEDED
48.  CREATE COMPANYV ALUES & MISSION STATEMENT
49.  ANNOUNCE PROCUCT LAUNCH TO LOCAL/RELEVENT
MEDIA
50.  HOLD LAUNCH EVENT & START SELLING

MARKETING

51.  HIRE A TEAM TO FULFILL ORDERS & PROVIDE
CUSTOMER SERVICE
52.  START An AFFILIATE OR DISTRIBUTOR PROGRAM
53.  BUILD UP AFFILIATES & DISTRIBUTORS
54.  SET UP An AD TRACKING SYSTEM
55.  TRY CPC ADVERTiSING WITH TEST BUDGET

MARKETING

56.  GET RESULTS FROM THIS ADVERTISING
57.  OPTIMIZE AND SCALE AS NEEDED
58.  DETERMINE COST OF ACQUISITION A LEAD FOR EACH
CHANNEL
59.  DETERMINE CONVERSION RATE FOR EACH CHANNEL
60.  DETERMINE LIFETIME VALUE OF A CUSTOMER

MARKETING

61.  Test CPC with bigger budget now that you know
LTV
62.  TEST SOCIAL ADS & DISPLAY ADS & CALCLATE ROI BY
CHANNEL
63.  SCALE ADVERTISING UNTIL MARGINAL COST = MARGINAL
RETURN
64.  OPTIMIZE ADVERTISING to bring down CAC
65.  COLLECT TESTIMONIALS FROM INITIAL USERS/
CUSTOMERS

MARKETING

66.  CREATE SOCIAL WORD OF MOUTH FOR YOUR
PRODUCT
67.  CREATE youtube video promoting your product
68.  ATTEND AN INDUSTRY TRADE SHOW
69.  CONSIDER SELLING YOUR PRODUCT in BULK AT
WHOLESALE
70.  BRING ON A BOOKKEEPER TO AUTOMATE
ACCOUNTING

MARKETING

71.  CREATE AN EMPLOYEE DIRECTORY
72.  REVIEW YOUR P&L & balance sheet monthly
73.  COMPARE INITIAL FORECAST WITH ACTUAL RESULTS
74.  HIRE A SALESPERSON
75.  CREATE A SALES COMPENSATION PLAN

MARKETING

76.  SET UP A COMPANY HEALTH CARE PROGRAM
77.  ESTABLISH YOUR VACATION POLICY
78.  TEST OFFLINE ADVERTISING CAREFULLY
79.  CREATE A COMPANY INTERNAL INTRANET
80.  CREATE a digital company handbook

MARKETING

81.  OPEN UP A CREDIT LINE WITH YOUR BANK
82.  CREATE AN OFFSITE WORK POLICY
83.  ONCE YOU CAN SHOW $1 in means $4 in revenue,
raise capital
84.  CREATE A LIST OF FIRMS TO RAISE INITIAL GROWTH
FUNDING
85.  UPDATE YOUR PITCH DECK

MARKETING

86.  BUILD RELATIONSHIPS WITH INDUSTRY BLOGGERS
87.  SEEK PRODUCT REVIEWS
88.  HIRE AN EXECUTIVE ASSISTANT/OFFICE MANAGER
89.  HOLD YOUR FIRST COMPANY RETREAT
90.  TAKE CUSTOMER FEEDBACK AND IMPROVE YOUR
PRODUCT

MARKETING

91.  GET CONNECTED TO INVESTORS FROM PEOPLE YOU KNOW
92.  HAVE INITIAL GET TO KNOW YOU MEETINGS FOR
FEEDBACK
93.  UNDERPROMISE AND OVER DELIVER ON RESULTS FOR
NEXT 90 DAYS
94.  DETERMINE HOW MUCH CAPITAL TO RAISE
95.  RETURN TO FIRMS YOU LIKE FOR PARTNER PRESENTATION

MARKETING

96.  DO 20 partner presentations in 2 weeks
97.  Get 2 term sheets
98.  NEGOTIATE & SIGN TERM SHEETS
99.  COMPLETE DILIGENCE
100.  CLOSE ON CAPITAL

MARKETING

CELEBRATE!

MARKETING

BEYOND $1M


ABOUT

LEADERSHIP

LEADERSHIP 25 Leadership LESSONS

HERE ARE 25
LEADERSHIP LESSONS
I HAVE LEARNED
OVER THE YEARS

LEADERSHIP LEADERSHIP LESSONS LEARNED 1
Make sure you’re PASSIONATE ABOUT
WHAT YOU ARE LEADING YOUR TEAM
TOWARD ACCOMPLISHING. IF You’RE NOT
PASSIONATE ABOUT ACHIEVING THIS GOAL
YOU ARE LEADING THE
WRONG ORGANIZATION

SURROUND YOURSELF WITH PEOPLE
SMARTER THAN YOURSELF
PEOPLE WHO HAVE HIGH INTEGRITY
AND PEOPLE PASSIONATE ABOUT
ACHIEVING THE SAME GOAL YOU
ARE PASSIONATE ABOUT

ONLY HIRE SOMEONE AS A
DIRECT REPORT IF HE OR SHE
CAN DO THEIR JOB
2x BETTER THAN

YOU COULD

LEADERSHIP HAVE FEW DIRECT REPORTS 4

NEVER HAVE MORE
THAN
FIVE DIRECT REPORTS
FOUR if you have to manage the Board of Directors as well

MAKE SURE YOU AND YOUR TEAM ARE COMPLETELY
CLEAR ON WHAT YOU ARE TRYING TO ACHIEVE,
BY WHEN, the definition of success, and why
WHAT you’re trying to achieve

MATTERS IN THE WORLD

PAINT A CLEAR VISION AND COMMUNICATE IT
SUCCINTLY, VISUALLY, BROADlY, and REPEATEDLY.
KNOW WHERE YOU ARE GOING AND THEN

LEAD PEOPLE THERE


YOUR JOB IS TO DEFINE OBJECTIVE SUCCESS FOR
EACH OF YOUR DIRECT REPORTS AND THEIR JOB
IS TO DEFINE SUCCESS FOR EACH OF THEIR

DIRECT REPORTS

INTEGRATE SUCCESS FOR THE INDIVIDUAL
TOWARD HIS OR HER OWN LIFE GOALS
WITH SUCCESS FOR THE PROJECT

AND THE COMPANY


DEFINE SUCCESS
QUANTITATIVELY
THEN TRACK IT ON A
REALLY BIG MONITOR

LEADERSHIP GET TRUE COMMITMENT 10
MAKE SURE YOUR TEAM KNOWS THAT TRUE LEADERS
MAKE A COMMITMENT TO ENSURING THAT THE PERSON
WHO FOLLOWS THEM IS BETTER THAN THEY WERE
ASK EACH TEAM MEMBER TO IDENTIFY AND TRAIN THEIR
BEFORE EVER LEAVING THE TEAM and in exchange
YOU WILL NEVER SURPRISE THEM WITH TERMINATION


ASK YOUR TEAM TO NEVER
LET SOMETHING IMPORTANT
GO UNSAID

LEADERSHIP LEADERSHIP LESSONS LEARNED
12
LISTEN & ACTIVELY
SEEK OUT INFORMATION
FROM YOUR
TEAM


ALWAYS TAKE THE TIME
TO EXPLAIN THE
MENTAL MATH BEHIND
YOUR DECISIONS


GOOD LEADERS
SEEK OUT & ASK FOR
UNPOPULAR OPINIONS
FROM THEIR TEAM


IF YOU WANT TO ACHIVE
A DIFFICULT GOAL
CREATE An INCENTIVE PRIZE
WITH CLEAR GUIDELINES
AND PUBLICIZE IT
WHY HACKATHONS & XPRIZES WORK SO WELL

EVERY MEMBER OF
YOUR TEAM
SHOULD HAVE A
SIGNIFICANT PORTION
OF THEIR COMPENSATION
TIED TO pre-DEFINED
COMPANY SUCCESS METRICS

EVERY MEMBER OF
YOUR TEAM
SHOULD HAVE
EQUITY OWNERSHIP

LEADERSHIP EQUITY FORMULA RULE OF THUMB
TIME PREFOUNDING Year 1 Year 2 Year 3 Year 4 Year 5+
Funding StaGE Pre-Seed Post-SEED Post-Series a POST-SERIES B
CEO 65% 40% 20% 10% 5% 4%
COO 20% 15% 10% 5% 3% 2.5%
CFO 12% 10% 7% 4% 2.5% 1.5%
CTO 12% 10% 7% 4% 2.5% 1.5%
SVP Level 10% 7.5% 5% 3% 2% 1%
VP Level 5% 4% 3% 2% 1% 0.5%
Manager 2% 1.5% 1% 0.5% .25% .1%
SR. Engineer 2% 1.5% 1% 0.5% .25% .1%
Engineer 1% 0.75% 0.5% 0.25% 0.1% 0.05%
Staff Member 0.4% 0.3% 0.2% 0.1% 0.05% 0.025%

AS TIME CONTINUES, RISK REDUCES, CAPITAL IS RAISED & VALUE IS CREATED
THUS LESS EQUITY iS PROVIDED THE LATER YOU JOIN

18

HAVE A VISION
AND COMMUNICATE IT

19

TREAT PEOPLE
WITH RESPECT
AT ALL TIMES

20

DON’t be
TOO SERIOUS

21

WORK HARD &
ALONGSIDE
YOUR TEAM

22
MAKE SURE EVERYONE
KNOWS THEY CAN
TALK TO YOU
ANYTIME

23
BUILD CARING
RELATIONSHIPS WITH
YOUR DIRECT REPORTS

24
COMMEND
MORE THAN

YOU CRITICIZE

25

CONsCIOUSLY
BUILD AN
AMAZING CULTURE


ABOUT

STRATEGY

STRATEGY STRATEGY

Your strategy
SHOULD BE
TO BE THE BEST
IN THE WORLD
AT ONE THING
CHOOSE CAREFULLY

STRATEGY ALIGN WITH A SMALL GROUP FIRST

NEVER CREATE STRATEGY
IN A ROOM OF MORE THAN
FOUR PEOPLE CEO
Head of Product
Head of Technology
CHOOSE FOUR Head of Sales
Head of Service
Head of Marketing
Head of OPERATIONS

STRATEGY STRATEGY IN A LARGE ORGANIZATION

ONCE YOU ALIGN THE CORE
ALIGN THE NEXT LAYER
THEN THE NEXT
THEN THE NEXT
THEN THE NEXT

BUSINESS WHAT IS STRATEGY?

STRATEGY IS THE COLLECTION
OF UNIQUE PROCESSES
THAT WORK IN UNISON
TO ENABLE YOUR FIRM TO
BE THE BEST IN THE WORLD
AT ONE THING


STRATEGY IS
ABOUT
TRADEOFFS
YOU MUST CHOOSE WHAT NOT TO DO


STRATEGY INVOLVES CHOOSING TO
PERFORM ACTIVITIES DIFFERENTLY

THAN RIVALS


ABOUT

EXECUTION

EXECUTION COMMUNICATE CLEARLY & REPETITIVELY

ONCE YOU AND YOUR TEAM HAVE YOUR PLAN
COMMUNICATE IT in A MEMORABLE
WAY WITH VISUAL AND NUMERICAL
REINFORCEMENT TO THE FULL TEAM
THEN FOCUS ON EXECUTING WITH
FANATIC DISCIPLINE &
RECOMMUNICATE AND REINFORCE AT LEAST
MONTHLY

EXECUTION HOLD PEOPLE ACCOUNTABLE TO PRE-DEFINED RESULTS

HOLD PEOPLE ACCOUNTABLE TO
PRE-DEFINED MEASURABLE RESULTS
NOT TO THEIR METHODOLOGy
AS LONG AS THEY ARE TREATING

PEOPLE WELL

EXECUTION HAVE AN OPERATIONAL PARTNER

ONCE YOUR COMPANY GETS
BEYOND 50 EMPLOYEES
ALWAYS HAVE A COO TO KEEP THE
TRAINS RUNNING ON TIME AND FOCUS
ON CROSS DEPARTMENTAL
METRICS & PROJECTS

EXECUTION OPERATIONALIZE THE PLAN

ONCE YOU’RE CLEAR ON STRATEGY DON’T SKIMP
ON OPERATIONALIZING THE STRATEGY PLAN
TEAMS IN LARGER COMPANIES GET OFF TRACK HERE
FIGURE OUT WHAT RESOURCES ARE NEEDED TO
ACHIEVE TEAM GOALS AND FIGURE OUT THE METRICS
THAT ENABLE THE FOCUS NECESSARY AND TRACK

THEM VISUALLY

EXECUTION RECALIBRATE QUARTERLY ON EXECUTION

DURING THE YEAR HOLD FOUR 1 DAY PLANNING SESSIONS
DURING THE LAST WEEK OF EACH QUARTER
HAVE NO MORE THAN 5 COMPANY OBJECTIVES PER 6 MOS
COMMUNICATE THESE BEFORE THE START OF THE PERIOD
MOST COMPANIES DON’T FINISH THEIR ANNUAL PLANNING
UNTIL THE END OF JANUARY
YOU’LL MISS THE MONTH THAT IS MOST IMPORTANT

FOR EXECUTION

EXECUTION MAKE RESULTS VISIBLE

SHOW PROGRESS AGAINST THE 5 COMPANY OBJECTIVES
IN REAL TIME AND ON A MOUNTED AND VISIBLE MONITOR
MAKE YOUR RESULTS AND KPIS VISIBLE AND CLEAR
BE TRANSPARENT AND MEASURE ALL THAT MATTERS
MAKE PERFORMANCE OBJECTED BY USING R/Y/G/SG

AND REVIEWING ALL METRICS WEEKLY

EXECUTION ALWAYS BE TESTING

CONSTANTLY TEST
FIRE BULLETS TO FIND WHAT WORKS
GET DATA, SEE WHAT WORKS
THEN FIRE

CANNONBALLS

EXECUTION KEY EXECUTION LESSONS LEARNED
HIRE A CFO at $1M in REVENUE
HIRE A COO at $5M in REVENUE
DETERMINE YOUR UNIT ECONOMICS
CALCULATE CUSTOMER LEVEL PROFITS
CREATE SYSTEM FOR PRAISE & AWARDS
CONsCIOUSLY BUILD A GREAT CULTURE
DO ONE THING THE BEST IN THE WORLD
INVEST A LOT IN DESIGN
CREATE STOCK OPTION PLAN EARLY

EXECUTION FAVORITE BOOKS on STRATRGY & EXECUTION

GOOD TO GREAT BY JIM COLLINS
BUILT TO LAST BY JIM COLLINS
GREAT BY CHOICE BY JIM COLLINS
FIVE HABITS OF A HIGHLY EFFETIVE TEAM BY LENCIONI
MASTERING THE ROCKEFELLER HABITS BY HARNISH
EXECUTION BY RAM CHARAN
PEAK BY CHIP CONLEY
THE FUTURE OF MANAGEMENT by GARY HAMEL


Business
Lessons

BUSINESS LESSONS LESSONS LEARNED

Don’t get stuck
In analsis paralysis

Take action NOW"

ENTREPRENEURSHIP 2012 TIPS FOR FIRST TIME ENTREPRENEURS
TEN

It is UP TO YOU to
GET OUT THERE, DO IT &

TAKE THE INITiATIVE

BUSINESS LESSONS LESSONS
LIFE LESSONS 2005 2005 LEARNED

Investors don’t
Invest in systems

That go home at night"


Don’t be
Afraid to

FAIL"


RECOGNITION & PRAISE
CAN BE BIGGER MOTIVATORS THAN

Salary & BONUSES"


ALWAYS COMMUNICATE
FREQUENTLY & OPENLY
TO CUSTOMERS
& STAKEHOLDERS
DURING NEGATIVE EVENTS


ONCE YOU HAVE 80%
OF THE NEEDED INFORMATION
MAKE THE CALL.
You’ll be right faster
By ACTING QUICKLY
& LEARNING.


WHEN THINGS ARE
GOING WELL
IT IS TIME TO
PREPARE FOR THE
WORST


BUILDING A BUSINESS
IS LIKE MOVING SOMETHING
HEAVY. IT TAKES TIME
TO GET INERTIA GOING.
BUT ONCE YOU DO, THINGS
CAN MOVE QUICKLY.


PART OF THE CEO’s JOB
IS TO FIND & HIRE PEOPLE
WHO CAN DO THEIR ROLES
MUCH BETTER
THAN THE CEO COULD


BUILD CONSENSUS WITH A
SMALL CORE
BEFORE YOU SHARE WIDELY


WHEN YOU SEE
SOMEONE DOING A GOOD JOB

TELL THEM"


THERE IS GREAT POWER
IN DEADLINES
CREATE SOME"


To create a great
Organization You must
Build a system to
CULTIVATE GREATNESS
In others


GIVE IMMEDIATE
AND SPECIFIC FEEDBACK

MORE OFTEN


MAKE SURE YOUR
INCENTIVE STRUCTURE
INCENTS
THE RIGHT GOALS

BUSINESS LESSONS
LIFE LESSONS 2009 LESSONS LEARNED
LESSONS LEARNED

ONCE YOU GET pAST
20 EMPLOYEES
CONDUCT ANNUAL ONLINE
360° Reviews

LIFE LESSONS 2009 2009

HAVE ALL TEAM MEMBERS
SHARE THEIR PERSONAL
GOALS AND DREAMS
WITH THE TEAM

LIFE LESSONS 2009 2011

WHEN YOU GET TO
50 EMPLOYEES

HIRE A COO

BUSINESS LESSONS LESSONSDO ENTREPRENEURS DO?
ENTREPRENEURSHIP 2012 LEARNED
WHAT

ENTREPRENEURSHIP IS
DOING SOMETHING OTHERS
WON’T FOR TEN YEARS
SO YOU CAN DO WHAT
OTHERS CAN’T
FOR THE REST OF YOUR LIFE

BUSINESS LESSONS LESSONSIS ENTREPRENEURSHIp ABOUT?
ENTREPRENEURSHIP 2012 LEARNED
WHAT

ENTREPRENEURSHIP IS ABOUT
PASSIOn
FOLLOWING A DREAM
AND CHANGING THE WORLD
WITH PLENTY OF CRAZINESS
ALONG THE WAY
- JEFFREY BUSSGANG"

BUSINESS LESSONS LESSONS LEARNED TIME ENTREPRENEURS
ENTREPRENEURSHIP 2012 TIPS FOR FIRST
TEN

BECOME A SUCCESSFUL
ENTREPRENEUR IS NOT EASY
YOU MUST HAVE PERSISTENCE
DEDICATED, TENACITY & THE ABILITY
TO DEAL WITH ADVERSITY

TEN

BEING AN ENTREPRENEUR IS NOT
FOR EVERYBODY. BUT IF YOU FIND
IT’S FOR YOU AND YOU CAN FIND
A WAY TO SUCCEED, it can be
EXTREMELY REWARDING.

TEN

YOU MAY NOT BE ABLE TO DO
EVERYTHING AT ONCE
TAKE A LONG-RUN APPROACH &
PLAY LIFE LIKE A
LONG-TERM GAME

TEN

IF YOU PRESENTLY DON’T HAVE THE FINANCIAl
RESOURCES, THE EXPERIENCE, OR A
GOOD BUSINESS IDEA, INTERN OR GET A JOB
AT A COMPANY YOU ARE PASSIONATE ABOUT
AND START BUILDING YOUR NETWORK &

GAINING EXPERIENCE

TEN

ALWAYS FOCUS ON BUILDING
QUALITY & GIVING RELATIONSHIPS WITH

GOOD PEOPLE

TEN

REGARDLESS OF WHAT You’RE DOING
MAKE SURE You’RE CONSTANTLY

LEARNING

TEN

TAKE A PROACTIVE ROLE IN
PLANNING, GOAL SETTING, &
PERSONAL EVALUATION

TEN

Don’t be afraid to ask for help
People are often very willing to
HELP YOU IF YOU ASK

GENUINELY

TEN

GET Experience however you can
Build your network
Have confidence
And BE IN IT TO

Help Others

TEN

IF AND WHEN YOU SUCCEED
GIVE BACK
There are many brothers & sisters
Who have not been as fortunate


MY

MISSION

OUR DREAM

EVERY HUMAN BEING HAS
ACCESS TO EQUAL STATUS & RIGHTS AN
FOOD UNDER ENVIRONMENTALLY
WATER
SHELTER
INTERNATIONALLY
ACCEPTED & SUSTAINABLE
WORLD To
EDUCATION AND ENFORCED LIVE IN
LAW
MEDICINE
ELECTRICITY THIS IS THE WAY THE WORLD SHOULD BE.
THE CLOUD & WE CAN CREATE THIS WORLD IN OUR LIFETIME.
< >

MY MISSION
CREATE A WORLD IN WHICH EVERY HUMAN BEING HAS

1 ACCESS TO FOOD, WATER, SHELTER, EDUCATIon,
MEDICINE, ELECTRICITY, & THE CLOUD
EQUAL STATUS AND RIGHTS UNDER INTERNATIONALLY
2 ACCEPTED AND ENFORCED LAW

3 AN ENVIRONMENTALLY SUSTAINABLE WORLD TO
LIVE IN
< >

MY MISSION THE TEN
ENTREPRENEURSHIP FUTURETIPS FOR FIRST TIME ENTREPRENEURS

IN THE YEARS AHEAD I HOPE TO
WORK THROUGH BUSINESS,
TECHNOLOGy, and public service
To be part of creating

A better world
< >

MY MISSION THE TEN
ENTREPRENEURSHIP FUTURETIPS FOR FIRST TIME ENTREPRENEURS

I hope we can WORK TOGETHER
AS A GENERATION
TO CREATE A SUSTAINBLE WORLD
IN WHICH ALL PEOPLE HAVE ACCESS TO
BASIC HUMAN NEEDS AND EVERYONE Can

Realize their potential
< >

Nothing(in(this(presenta.on(is(intended(to(be(legal(or(medical(advice.(Please(use(your(own(
careful(judgment(and(seek(the(counsel(of(qualiﬁed(professionals(in(making(all(legal(and(
medical(decisions.(The(advice(in(this(presenta.on(is(given(freely.(This(presenta.on(may(be(
distributed(free(of(charge.( < >

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