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Start up CEO: a dangerous job
2009-06-09 09:42:00
Start up CEO: a dangerous jobBy Paul McLellan Why do so few startup CEOs last the distance? The Bill Gates, Michale Dell and Scott McNealys who take their companies all the way from the early days as a tiny startup all the way up to enormous multi-division companies are very exceptional. I think that it is obvious that running a little engineering organization developing a technical product requires very different skills from running a large company. Engineering skills dominate in the first; people and strategic management skills dominate in the second. A CEO has to grow a lot along with the organization to be successful at each stage of the company?s growth. What is less obvious is that the skills getting a company going are very different from running it once the engineering phase is drawing to a close, or in some case just getting started. I?ve read various statistics, but something like 75-80% of startup CEOs are replaced before their company gets acquired (or merges, or goes pu...
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Winning in a Downturn
2009-06-04 14:06:00
An extract from a talk byRohit TalwarCEOFast Future1. Use scenarios to plan for an uncertain future. In this uncertain and turbulent economic climate, businesses no can longer rely on a single business plan or set of assumptions. Instead the most successful are tackling the uncertainty by using scenario planning to prepare for a wide range of possible outcomes and to identify the opportunities that could arise even in the worst case scenarios. At the same time, they are asking themselves tough questions under each scenario: - Which market segments and aspects of our business would be most at risk? - What would the implications be in terms of products, pricing and who our key customers would be? - What resources should we keep or let go? - Which actions should we be taking under any financial climate? 2. You can still grow in a downturn. Remember, even in a downturn, there is opportunity. A 5% shrinkage in an economy means that 95% of activity is still taking place. In ...
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key characteristics of a great startup culture
2009-06-01 11:32:00
This article is dear to my heart, I have experienced at first how the culture of an organisation can make or break it, not just the start up but it's investors as well, these cultures need to mesh cleanly. This article was written by Greg Gottesman who is the managing director at Madrona Venture Group, a Seattle VC firm.Greg Gottesman: For the last decade, I have been convinced that the three most important factors in determining the success of a start-up are (1) team, (2) product or service, and (3) market (timing, size, etc.). Take an A+ entrepreneur, with a great idea for a new product or service, at the right time, and about as fast than you can tweet Susan Boyle you?d have a success brewing.Recently, I have added one factor to the must-have list: the right start-up culture. In other words, add a dose of bad culture to a team of superstars, a killer product and good market opportunity, the result is almost always death by a thousand backstabs. What defines a great start-up cu...
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Why the Space Shuttles SRB's are the size they are
2009-05-29 13:59:00
Some tounge in cheek lessons for the techie start up below, have an awesome weekend.A LESSON ON RAILROAD TRACKSThe US standard railroad gauge (distance between the rails) is 4 feet, 8.5 inches. That's an exceedingly odd number. Why was that gauge used? Because that's the way they built them in England, and English expatriates built the US railroads.Why did the English build them like that? Because the first rail lines were built by the same people who built the pre-railroad tramways, and that's the gauge they used.Why did 'they' use that gauge then? Because the people who built the tramways used the same jigs and tools that they used for building wagons, which used that wheel spacing.Why did the wagons have that particular odd wheel spacing? Well, if they tried to use any other spacing, the wagon wheels would break on some of the old, long distance roads in England, because that's the spacing of the wheel ruts.So who built those old rutted roads? Imperial Rome built distance r...
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The business plan's weakness
2009-05-26 10:54:00
">Your business plan outlines your estimated (operational) expenses but how do you know an investor is not going to look at these numbers and say...'are you kidding me' and right then and there you could loose the guy (his interest)..."How can you as an entrepreneur build these projections most accurately and in a way that will maintain credibility with potential investors? What could be defined as the "best practice" for entrepreneurs dealing with this subject? Answer by Brad Feld from Mobius Venture Capital, As I?ve said (Brad) in the past, I?ve never met a financial plan for an early stage company where the revenue side was correct. However, I?ve met plenty where the cost side was correct (or ? at least ? appropriate). The key here is simple ? you want to have a cost structure that makes sense, covers all the bases, but doesn?t assume a big revenue ramp to be supportable. If you are in the very early stages (e.g. a few people and an idea), recognize that your investor is...
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Some advice on Pitching to the Investors
2009-05-14 09:21:00
When you Pitch: When you pitch to investors one size does not fit all, you have to pitch to your audience, if you are talking to a niche VC who invests in your sector they you can be a bit more techie, if you are infront of the "Bog Standard" VC, then reduce the techno speak and keep it simple, do not try to impress, if you can't get your story over in 8 to 10 slides then it's to complex. I always keep stuff in reserve on the juicy bits, so if they want to dive in on the detail you have it at hand. I have picked up some handy hints on pitching from Matt Eventoff, he works as a communications strategist for senior executives at Fortune 100, Fortune 500 and Inc. 500 institutions, litigators, entertainers, and political leaders throughout the U.S and abroad.Startups and Venture Capitalists BewareThere are two communication ?killer apps? that I witness plague startups with frightening frequency. These danger zones are lethal to a startup, especially one seeking funding. If you ar...
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Patents: "The Good and the Bad"
2009-05-08 09:32:00
Patents: fixable, or the next weapons of financial destruction? The big issue of the evening came from a discussion of the treatment of so-called "non-practicing entities" or NPEs?organizations that hold patents and assert them, but do not conduct a business that applies the patents. By Ron Wilson, Executive Editor -- EDN, 5/7/2009 A panel sponsored by the Commonwealth Club of Silicon Valley last night brought together three significant players in the US patent-law debate to discuss the future of the patent office, the current reform legislation in Congress, and the future of intellectual property. The discussion ranged from pessimism over short-term fixes to a dire warning about the arrival of the investment banks in the patent business. Steve Perlman, founder and CEO of invention-factory Rearden, David Simon, chief patent counsel at Intel, and Ronald Yin, partner at law practice DLA Piper, discussed the issues under the questioning of Wall Street Journal Deputy Bureau Chief Don C...
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The Heart and soul of a start up
2009-05-01 11:50:00
I have been laid up sick for a while and not been able to post here, but I am back at work now and starting to get back into the groove, I will get through the back log of posts that I have promised over the next few weeks.....so to days post...what is the heart of your start up, this maybe be a slightly contentious view from Wil Schroter the founder and CEO of theGo BIG Network:If you asked me to point to the heart and soul of a startup company, I would not say it?s the people, the culture, or even the product. I would say it?s the pitch. The pitch is that one message that, when delivered, makes people say ?wow, that?s a great idea!?. The pitch gets everyone in the room excited about getting on board with your product and your company. It?s the inspiration that carries everyone along for the ride.The pitch also determines whether or not the company's offer has any viability in the market. For this reason the pitch should always precede any other developments or decisions. Your pit...
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Interview from an Industry Warrior, worth the read
2009-03-18 13:50:00
This article is an old article but it captures what it is to create and sustain a business through the hard and the very hard times, I know the gentleman in question and can say that he is true gent.JOHN Roseman has survived in Scotland's technology sector long enough to know ambition isn't everything. Credibility, steady growth and even profitability are also business drivers worth pursuing if your aim is to build an enterprise that lasts. And 22 years after he set up the Sematek Group in his Kilsyth bedroom, the founder and chief executive of the Lanarkshire-based supplier of engineering services to the high-technology sector remains as focused as ever on ensuring the business continues to evolve in the decades ahead even through challenging times. "I never wanted a flash in the pan, I wanted a solid business," says the former offshore oil a...
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Let common sense prevail in all your dealings
2009-03-17 12:33:00
An Obituary (The London Times).Today we mourn the passing of a beloved old friend Common Sense , who has been with us for many years. No one knew for sure how old he was, because records were long ago lost in bureaucratic red tape. He?ll be remembered as having cultivated such valuable lessons as: The early bird gets the worm; Hard work is the secret to success, Life isn't always fair; and Sorry that was my fault.Common Sense lived by simple, sound financial policies like don't spend more than you earn and Save part of your income for the future plus reliable life strategies like Adults are in charge not children and When there?s a problem, look for a solution don?t look for someone to blame.His health began to deteriorate rapidly when well-intentioned but overbearing regulations were set in place. Reports of a 6-year-old boy charged with sexual harassment for kissing a classmate; teens suspended from school for using mouthwash after lunch; and a teacher fired for reprima...

Wake Up to reality Founders and Investors
2009-03-12 14:10:00
Marc Barber Time for a valuation reality check If you think your company is still valued at last year?s prices, then you'll need to think again. GrowthBusiness looks at what your business is worth in today's credit-crunched M&A market. What a difference a year makes. Twelve months ago, vendors were desperate to find a buyer to get taper relief on a sale after Chancellor Alistair Darling introduced a capital gains tax rate of 18 per cent. Today, anyone looking to sell has a host of different and far more challenging problems to face. Richard Glasson, CEO of marketing agency Gyro International, says: ?People who have missed the boat of the last three to four years need a pretty good reason to sell at the moment, either because they can see their business model is running out of steam or they are staring in trepidation at...
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Job vacancies in the Solar Industry
2009-03-11 16:10:00
To help my friends, once in a while I will post jobs that are available and live and I have had direct contact with the recruiter or line manager.Todate:1) Senior Device Manager role located in the Far East2) III-V process / device / modelling role in the UK3) Thin films process roles in the solar industry located in Germany (previous solar / PV experience required)4) R&D managerial process role in the solar industry located in Norway (previous solar / PV experience required)If interested drop me a note and I will connect you to the companyBest RegardsGordonThe daily challenges of an Entrepreneur living in the North East of England
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Innovation in business today Part V
2009-03-03 12:03:00
Innovation in business today Part VBy Dr. Earl R. Smith IIDrSmith@Dr-Smith.comwww.Dr-Smith.com In the first four articles in this series, I discussed the difficulties of cultivating and maintaining innovation in a corporate environment. In this article, I would like to describe two companies. They addressed the challenge of cultivating innovation from two quite different directions. The first was a case of too much innovation while the second was the more traditional case of too little. The Story of Company A With this company, the balance was all the way over to innovation. Almost the entire team - with the exception of clerical support - was PhDs. They jokingly referred to themselves as a ?dysfunctional gaggle of a-social eggheads?. Their windowless office space was in the basement of a building. Most of them arrived before dawn and left well after most other offices had closed. The strength of the organization was innovation - they were incredibly prolific. Advance after advance ...
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Innovation in business today Part IV
2009-03-02 11:10:00
Innovation in business today Part IVBy Dr. Earl R. Smith IIDrSmith@Dr-Smith.comwww.Dr-Smith.com In prior articles in this series, I focused on the management culture that establishes and maintains innovation. My focus was on the interaction between the tactical visions of the CEO and senior management team and the strategic visions of the Chairman of the Board and members of the Board of Directors. However, successfully managing the mixing of these ‘analytic’ and ‘creative’ types is only the first step in the process - one that enables but does not accomplish the cultivation of an innovative culture. The core of any innovative culture is what we called the ‘beehive’ in one of my companies. This was innovation central. Its denizens were the deep thinkers who spent most of their time thinking outside - and sometimes way outside - the box. I admit that I found wandering into the beehive. I was exhilarating at times - you never knew what they were thinking about. I also real...
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Innovation in business today Part III
2009-02-27 09:54:00
By Dr. Earl R. Smith IIDrSmith@Dr-Smith.comwww.Dr-Smith.com In the prior articles in this series, I focused on the general problems and some of the specific issues which come to fore when a company sets about to develop a culture which supports and encourages innovation. In this article, I would like to focus on some of the characteristics of leadership that best support such an effort. In the first two installments, I made it clear that a close partnership between the CEO and the Chairman of the Board is one of the best ways to develop a corporate culture that stimulates innovation. A careful mixing of the CEO?s essentially tactical focus with the Chairman?s strategic view can be the first and most important step in developing such a culture. While there are characteristics that these leaders may not share, many of the components of their leadership style are the same. I will address these differences in a subsequent article. However, for now, I would like to focus on the common le...
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Innovation in business today Part II
2009-02-26 11:22:00
Continued from yesterday:By Dr. Earl R. Smith IIDrSmith@Dr-Smith.comwww.Dr-Smith.comIn the first part of this series, I outlined the importance of cultivating a culture of innovation and some of the major challenges that must be met. In this installment, I would like to focus on some of the practical issues that arise. The conflict that causes the most difficulty is between essentially two different perspectives - the ?creative types? and the ?analytical types?. The effectiveness of any program designed to stimulate innovation turns on the ability of the senior management team and the board of directors to develop a culture within which these two very important perspectives can work productively together. One of the most evident differences in these two perspectives is their attitude towards risk and uncertainty. The analytical types are generally risk-adverse and uncomfortable with high levels of uncertainty. Their inherent conservatism is an essential part of any corporate foundat...
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Innovation in business today Part I
2009-02-25 09:57:00
Innovation in business today Part IThis is a series of articles I will post over the next few days which will help to cultivate innovation in the organisation, during these times it is important to maintain forward momentum with a lower burn rate, I hope these will help you to do just that.By Dr. Earl R. Smith II DrSmith@Dr-Smith.com www.Dr-Smith.comThere is much talk of innovation and the challenges of how to stimulate and sustain it. It is one of the questions that transcend the stage of development of a company. It is also a question that should engage the entire team. Nothing affects the fortunes of an organization more than a team?s ability to come to terms and overcome the challenge of maintaining a culture of innovation. The world is simply to fluid and change such a dominate characteristic of the times we live in - innovation is necessary for survival.Eventually all of my coaching engagements come to focus on the challenge of developing and maintaining a corporate culture th...
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What does an Executive summary do for you ?
2009-02-24 13:58:00
Plenty has been written on how to write good exec summaries. The best article I?ve found is the one that www.garage.com did. There is not much I can add about what needs to be in a good exec summary but I can share some ?secrets? of how most VCs engage with exec summaries. Keep in mind that this is real world advice, which is not necessarily what you need to win in the BPC but then you are trying to build real startups as opposed to startups that win competitions, right?VCs have a love/hate relationship with executive summaries. Actually, most VCs either love or hate them. Personally, I hate them. Most, even the ones by good teams, are terribly written so, statistically speaking, it?s a waste of my time to read them. If I was making an initial decline or investigate further decision on exec summaries alone, I wouldn?t have engaged with some of the great startups I know. Therefore, I prefer to look at a presentation and skip the exec summary.Exec summaries are rarely read. They are s...
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Your Role as a CEO, what do you do
2009-01-29 10:06:00
What does the CEO actually do?The key elements that make up the CEO's responsibilities are: governance, strategy, policy, and mapping the changing world; managed in a way that supports the sustainability of the organisation.GovernanceIn bringing together policy, strategy and external mapping, the CEO can ensure the company is being managed in a responsible manner appropriate to internal demands and also in line with external requirements (e.g. legislation, reporting) and best practice.StrategyThe strategy will be derived from the vision, mission and objective for the organisation (part of the role of the Chairman), which ensures the CEO and Chairman work closely together to plan the business; drawing the various strands [finance, market and people.] into a properly developed, sequenced and interlinked format for a sound management process. PolicyPolicies are the overriding courses of action the organisation will adopt to gain maximum benefit even in changing external circumstances,...
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Do I need a business plan
2009-01-26 17:10:00
Interesting spin on the need for the buisness plan in a start up by Wil Schroter the founder and CEO of the Go BIG NetworkIf you?re thinking about starting a company, please don?t write a business plan. Stop, put the keyboard down, and step back. You?re wasting valuable time.Don?t get me wrong, I?m not suggesting that you run aimlessly into the startup abyss. What I want you to avoid is the black hole of planning that most entrepreneurs get into when starting a company. They get sucked into a time warp where a formerly great idea gives way to months upon months of ?thinking? about the idea instead of just making the damn thing happen.If Nobody Buys, it?s Not a Business The first step, before writing a plan, is to validate the concept. If nobody will ever buy your product, it?s unlikely that a business is ever going to form. Focusing on the product first, and more specifically the customer?s willingness to buy that product, is by far the most valuable time you can spend early in...
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How do you qualify a sales lead
2009-01-22 12:04:00
Qualify a sales lead is something that an early stage company can have difficulty in doing accurately, in the early days, you may not be able to hire a good Marketing / Sales person, and you are doing it by yourself, I picked this article up may help you in those early days and beyond. This is one of the most important things a company needs to learn to do and do it well, there survial is based apon there sales forecast and there execution on it.By By M. H. "Mac" McIntosh, CBC ( http://www.sales-lead-experts.com/ )You may think you know what qualified sales leads are, but if you asked your salespeople and corporate executives, would they have the same definition? Probably not.If qualified lead generation in a business-to-business marketing-for-leads program is to succeed, marketing, sales and corporate management need to share a unified definition of qualified sales leads. If you all agree from the start on what a qualified lead is, the marketing team stands a better chance of gener...
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Something fun on drab wet Friday afternoon
2009-01-16 14:15:00
http://www.docstoc.com/docs/document-prev iew.aspx?doc_id=1939358Ten Lessons Startups Can Learn From Superheroes follow the link aboveHave a great weekendGordonThe daily challenges of an Entrepreneur living in the North East of England
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ENTERPRISE FINANCE GUARANTEE SCHEME
2009-01-15 12:40:00
Free lunch? - What does UK government funding mean to startups?By Nick Halstead, CEO and founder of fav.or.itAs I am in the midst of raising another round of funding for fav.or.it I wanted to cover some of my thoughts on the government?s recent announcement of further funding for business that is meant to help SME?s survive through the credit crunch. The question is: is there real substance to any of this, or is it just a lot of hot air?ENTERPRISE FINANCE GUARANTEE SCHEMEThis is just a fancy new name for what you probably know as the SFLG (Small Firm Loan Guarantee) - this is a scheme in which the government guarantees 75% of a loan with the rest covered by the banks.A year ago this allowed loans of up to £100,000 - which was then increased to £250,000. It was something you fell back on if the bank turned you down for a normal loan (in fact it was a requirement that you first applied for a normal loan). I have previously raised a SFLG (over 2 years ago) and found the process reaso...
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Some good news for 2009 if your are looking for funding
2008-12-24 12:15:00
Investing In Thick and ThinBy Fred WilsonA few weeks ago at Le Web, I participated on a panel made up of VC investors. There was a really good discussion about what next year holds for venture investing.The moderator Ouriel asked if we would be cutting back our investing in 2009 and I replied that we did not plan on doing thatI went on to explain that the venture business is very cyclical and that I've seen at least three and possibly four cycles in the 22 years I've been in the venture business. But I don't feel that its possible, or wise, or prudent to attempt to time these cyclesOur approach is to manage a modest amount of capital (in our case less than $300 million across two active funds) and deploy it at roughly $40 million per year, year in and year out no matter what part of the cycle we are inThat way we'll be putting out money at the top of the market but also at the bottom of the market and also on the way up and the way down. The valuations we pay will average themse...
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How much !!! you got to be joking, my company is worth more
2008-12-16 12:48:00
How many times have you been asked or you have asked "How much is my company worth ?", this is a hard question and there is no real answer, it is different for every company, and no VC will give you the same answer. This is a post I found by Jason Mendelson his a co-founder of foundry group he has a decade of experience in the venture capital and technology industries (www.foundrygroup.com ). Whats the value of my Start up ?I regularly get questions concerning how venture capitalists value companies. In fact, there seems to be an increase in the frequency of this question to me personally and through AskTheVC. It's not an exact science. On top of that, there isn't a broad enough market to come anywhere near a public pricing mechanism. (Insert joke about current public market chaos here). VCs typically take into account many factors when deciding how to value a potential investment. You'll note that few of them are quantifiable into hard numbers and at the end of the day, th...
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How to pick your Dragon to plunder (Joke)
2008-12-11 16:51:00
How to select your target VC / InvestorBy Georges van Hoegaerden, the managing director of The Venture Company For over 10 years I?ve built and managed growth for early stage innovation in Silicon Valley and more than ever do I believe that building real disruptive customer value is more important than trying to time an acquisition opportunity. You may too, unless of course you are a gambler and firmly believe that the $3 red-white-blue slot machines in Vegas consistently yield the greatest returns. I will not argue the outcome. Acquisitions remain nothing more than a welcome diversion on your way to building the largest technology empire. And even now when IPOs have dried up any focus away from building your empire is damaging. Real disruptive innovation is resistant to economic aberrations and a consistent focus on customer value remains your only rescue. I believe that IPOs for technology companies will return (and subsequently spur more pre-IPO acquisitions), albeit not with the...
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A cheat sheet to help you with your friendly Dragon (Investor)
2008-12-10 10:58:00
What you need to know before you go on the funding trail(or entering the dragons den):Well you have your business plan written, you have a one pager prepared, the elevator pitch is polished and sharp, your friends think it is great great and your competitors are nervous, it is time to go and dual with the Dragons. There are two keys to a Dragons check book, fear and greed, you need to raise there appetite to open the door to there treasure trove, once you have entered there den, you need to be:HonestRealand be prepared to walk awayYou need to have a good team, not high flyer's, but definitely street cred ability, a few scars.You need to have prospective customers.You need to have a solid financial plan for 3 years.You need believe in what you are doing, and know that you can do this for the rest of your life.You need to be committed and demonstrate it. These are some other thoughts I picked up from Guy Kawasaki (http://blog.guykawasaki.com/)These are the characteristics of an attra...
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Food to help you prepare for next year
2008-12-05 10:19:00
Time to get serious about strengthening your systemsBy Pam SlimBio Pam is a coach and writer who helps frustrated employees in corporate jobs break out and start their own business. She has been self-employed for 12 years and has enjoyed every bit of it.Her first book "Escape from Cubicle Nation, will be due from Penguin/Portfolio in Spring, 2009" and Pam writes for Martha Beck's blog on a bi-monthly basis. When I was about ten years old, our roof got in some serious disrepair. We lived in a house built in 1906, and the creaky beams and bones of wood were showing their age. The wooden shingles had been damaged by years of rain and wind, and water started to leak through the ceiling.My hard-working single Mom did her very best to cover all of our needs, but a $3,000 roof was not going to happen. So we made due, placing pans under the various dripping spots of the ceiling.I was lying in bed one night, listening to the rain pound outside. Then, without warning, a big chunk of plasterb...
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Some thoughts on the "Credit Crunch"
2008-12-04 10:31:00
Recession and the credit Crunch I have been trying to spin out technology from a govt. incubator in the N.E. of England, this has been a long and convoluted track, one which is precariously coming to a major nexus. The track has seen the business model morph from a major project , with debt finance in the teens of millions and matched equity financing , to the bare bones of a model which was built on a deck of cards that are crumbling away quickly. I am sure many of my readers have been there before, where a solid plan on the exterior is actually a convoluted network of supporting items and actions, if you miss or loose a couple of them the whole becomes very unstable( or role is to makes sure we have spare aces up our sleeves). This is normal for a start up but adding on top off that the financial institutions issues with the credit collapse, it makes it nearly impossible to raise debt financing , and the terms from your VC in general is like day light robbery, but what is a guy to ...
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Follow up on funding and that runway
2008-11-20 13:03:00
Runway Thinking: A Practical Guide to Startup Survivalby Phil MorleTimes like this, when funding is scarce and confidence is low, do bring one benefit. They force us to focus.This year at Pollenizer we have had the privilege to work with 18 different startups (so far) and ?focus? has shone through as a single theme. Startup founders do understand the need for surgical focus, but doing it is hard.The runway - a thinking tool for doing focusTo tackle this, I now begin my time at a new company defining the current end to the runway and what can be achieved as we race towards the end. I begin with this slide.uploaded with plasq?s Skitch! I have overlayed a diagram describing the stages of a real take off so ignore all the ?V? stuff ?We can over-use the phrase ?runway? when we plan our strategies, but I have found it an incredibly useful tool for planning because it is difficult to ignore some common, important milestones for the business.We need to work through it from right to left bec...
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