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Entrepreneurism - Why Not To Start Your Own Company

I am taking a bit of a controversial stand on starting a company. Don't do it! I elaborate a bit more in the short presentation on why. I have seen too many people that said they wanted to start a company just for the sake of being an entrepreneur, a CEO. It's not that glamorous. Having to worry about making payroll every day is not something everyone is cut out for.
If you decide to start a company, there are a couple of tips in this prsentation

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Entrepreneurism - Why Not To Start Your Own Company

  1. 1. Raffael Marty, CEO iEntrepreneurs iTech Gulf, Kingdom of Bahrain April 10th, 2014
  2. 2. Security. Analytics. Insight.2 Raffael (Raffy) Marty
  3. 3. Security. Analytics. Insight.3 Starting Your Own Company Don’t Do It
  4. 4. Security. Analytics. Insight.4 If You Are Still Here it starts with passion There is no such thing as an “Entrepreneur’s” profession
  5. 5. Security. Analytics. Insight.5 Problem • Deep problem understanding • What’s the solution? • Can you build the solution? • In time • At reasonable cost?
  6. 6. Security. Analytics. Insight.6 • Is there a market for your solution? • How well do you know the market? • Will people pay for your solution? ! • Can you sell your solution? • How will you sell it? At what price? • Do you know the buyer / budgets / …? • How do prospects buy? What’s the sales cycle? How do they spend money? Market
  7. 7. Security. Analytics. Insight.7 • Do you have a business model? • Pricing • Financial model • What’s the way to profitability? • When to hire who? • When do you sell product? to who? • Don’t write a long business plan - safe the time and think about the business itself The Business Model
  8. 8. Security. Analytics. Insight.8 Average sale: $250 / month Profit margin: 50% Staff cost: $10k / month Staff: 10 employees —> 800 customers The Cloud SaaS Example Hang on, we need more staff to operate the cloud 
 service and support customers —> more customers How do you acquire these customers?
  9. 9. Security. Analytics. Insight.9 • How will you fund your company? • Self funded • Friends and family (careful) • Outside Investors (getting $500k is easy!) • What do you do with that money? • Always think of the next funding round - you will need it! • Founders are too optimistic on getting profitable! • Where does that money get you to? • What do you do once you spent that money Funding
  10. 10. Security. Analytics. Insight.10 Institutional Investment - The Series A • Team • Customers / Traction (Market) • Product Only for 1% of companies $1bn market
  11. 11. Security. Analytics. Insight.11 Why is the Silicon Valley Different? ”… rich people and nerds” 
 - Paul Graham
  12. 12. Security. Analytics. Insight.12 • Team • Who is in control? • Clear roles and responsibilities! • Get ready for the long haul! Don’t take “No” for an answer • Technology is only a small piece! • Pay it forward - advice / help / network Miscellaneous Tips • Relationships! • Relationships! • Never cold-call investors • Get warm intros • From credible people • Build a pitch deck, not a business plan
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