Download as PDF, PPTX
Uploaded byGeorge Bevis
Success via Failure
This document provides advice on repeatedly succeeding at failure based on the author's experience founding multiple startups, one of which succeeded. It offers the following tips: 1. Expect to go through multiple failures before success, as the author failed twice before founding the successful company Tide. 2. Learn from your mistakes on failures, such as ensuring customer lifetime value exceeds marketing costs and avoiding management inertia. 3. When failing, be honest with investors and staff, try to find jobs for staff, and pay creditors if possible to maintain integrity. 4. See failure as an invaluable learning experience, as it provides real-world education cheaper than an MBA and makes one more employable. Take time after
Success via Failure
- 1.
- 2. WTF are you? •2002– 08: Banker ☹ •2008 – 11: Retail ecommerce startup (angel funded failure) •2011 – 14: Freelancing (more banking ☹ ) •2014 – 2018: Created Tide (pretty good...) •2019+: Incubating more startups
- 3.
- 4.
- 5. Look people up Sharecontact details
- 6. Look people up Sharecontact details
- 7.
- 8.
- 11. • 150+ pitches •Total raised: <£200k • Returned to investors: £0
- 13. Why SpeedSell failed Good Customerproposition Execution Marketing / distribution Management (obvs) Bad Unit economics (Hard)
- 17. Culture • All DNAset in 1st year • Work out your “mission” and bang on about it • Write down desired behaviours/values and recruit against them • Last round interviews with all staff • Keep standards high (but compromise is inevitable)
- 18. • “Rough patch”is going to happen • More to whinge about • “Entitlement” kicks in before revenue • Performance management helps manage expectations • Spend • Laptops • “Waste” budget: swag, socials etc • Identity politics • Interpersonal disputes • OKRs only work at scale
- 19. Brand = DNA •Most important thing you’ll do • Creates organisational focus, assists hiring and enables ultimate handover • Takes 6-9 months + an expert • Cost €100k-€200k • Words more important than pictures
- 23. What failure lookslike 1. Slow 2. Everyone takes it better than you a. Staff b. Investors c. Customers d. Partners (if they aren’t unpaid) 3. A relief
- 24. Why failure happens(mistakes you won’t make twice) • Unit economics • Customer lifetime value < 3x marketing cost • Excessive willingness to do something hard • Management inertia • “Board already agreed X” • Insufficient paranoia • Why won’t customers like this? • Why will partnerships go wrong? • Why might this hire be wrong? • How can this stakeholder screw things up?
- 25. What to dowhen you’re failing • Be honest • With yourself (10% chance? 30% chance?) • (Consider insolvency obligations) • With investors: make it their problem too • Be honourable • Try to find jobs for all staff • Insist on paying all staff salaries • Pay creditors if you can (even out of own pocket) • Look for a sale
- 26. After failure happens •Well done! You got your “MBA” • Cheaper than a real MBA • Much more employable • Investors won’t mind (unless they are jerks) • No guilt (once you’re on £20k/month you’ll understand) • EIS / SEIS • Take 1-2 years, sort the bank balance, then do it again • Your reputation won’t suffer if you’ve been honourable
- 28.