Here's the scenario I encounter almost daily: Entrepreneur has great idea in great market and wants a half a million dollars to get started. And that half million is earmarked for founder salaries, administrative costs, office space, new equipment and so on. And they're quick to point out that this "investment" will pay off for the investor because the idea is just so right.
Problem is that experienced investors invest in proven entrepreneurs - ideas are a dime a dozen. And I'm not talking about an investor with a track record of one or several successful businesses. What the investor is looking for is an entrepreneur that can get things off the ground without investment. A crafty individual that can leverage assets, utilize collaborators, and put some personal risk into the game. Someone who can move the needle forward just enough to validate the business model and more importantly, his or her abilities. Someone who needs some cash to take the proven model to the next level.
So, if you're just starting out, consider these two steps:
1. You don't need as much cash as you think. I wish I had a great class A space office to work out of the luxury of a salary to allow me to focus on building my business. But in reality, no one, outside a wealthy relative, is going to fund this. And this is a good thing. This forces you to work hard and act fast. And every good entrepreneur needs to do both, because your competition definitely is. And choosing to spend cash on new equipment and expensive office space is a clear signal to an investor that you're really great at wasting cash.
2. You are going to need cash, a whole lot of the stuff down the line for growth. Good business strategy plans for this with projections. And an investor is looking to invest in this growth and the entrepreneur that has realistically planned for this on top of the startup bootstrapping.
Summing up, investors invest in great people who can bootstrap a great idea and anticipate long-term costs. Be that entrepreneur. Getting from here to there is business strategy. It may seem academic, but nothing is more critical to an investor. When he or she asks the tough questions, have the right answers.
Wednesday, October 28, 2015
Wednesday, October 21, 2015
So-Called Entrepreneurial Expert Part 2
A developer/investor and all around genius at everything according to himself decried Kronicity's mission and vision as too broad, demanding "Do one thing and only one thing!" He complained we were timeline generators - I never stated that and were, 'cause we're not. He complained about our market segment as well stating that our focus should be "schools or not schools" and not the general public. He said commercial accounts for health and fitness and music were way too different and would doom Kronicity to failure.
Idiots like this are really great at quoting crap like that without actually understanding what the originator of the statement meant. Kronicity does focus on one thing. It's in our Vision and Mission Statements:
Vision (Where we tell ourselves we want our future to look like)
Provide validation, perspective, and enhanced value to the internet by becoming the world's next technological jump in how data is collected, disseminated, and integrated into the human quest for knowledge.
Mission (Internal statement of How we plan to do it)
to create a web-based platform for easy data collection, organization, validation, and value enhancement from any source.
We're not a collection of timelines and we don't create content. We provide tools for others to do this in any field of study. I mean seriously, does microsoft office focus only on law practices? Does google focus solely on schools as a market? Absolutely not, they provide tools to be used in ways they never considered.
Lesson here is to understand your product and its market segment. You've been living this project for months or even years. If someone thinks they understand it after a few minutes and insist they know better than you, leaning on a stack of best selling How To books, just walk away.
What you do want to look for is an investor who will ask more questions than dwell on obstacles. The fist meeting is to understand the product and the market. If you can't get past that, stop. If they do understand both and have valuable insights, usually from working in that market, start the dialogue.
Idiots like this are really great at quoting crap like that without actually understanding what the originator of the statement meant. Kronicity does focus on one thing. It's in our Vision and Mission Statements:
Vision (Where we tell ourselves we want our future to look like)
Provide validation, perspective, and enhanced value to the internet by becoming the world's next technological jump in how data is collected, disseminated, and integrated into the human quest for knowledge.
Mission (Internal statement of How we plan to do it)
to create a web-based platform for easy data collection, organization, validation, and value enhancement from any source.
We're not a collection of timelines and we don't create content. We provide tools for others to do this in any field of study. I mean seriously, does microsoft office focus only on law practices? Does google focus solely on schools as a market? Absolutely not, they provide tools to be used in ways they never considered.
Lesson here is to understand your product and its market segment. You've been living this project for months or even years. If someone thinks they understand it after a few minutes and insist they know better than you, leaning on a stack of best selling How To books, just walk away.
What you do want to look for is an investor who will ask more questions than dwell on obstacles. The fist meeting is to understand the product and the market. If you can't get past that, stop. If they do understand both and have valuable insights, usually from working in that market, start the dialogue.
Five Minute Expert Critiques
This Blog was started to promote my consulting business by sharing what I've learned from 29 years of independent consulting work and from lessons learned obtaining my MS in Technology Commercialization. But lately it seems to have morphed into a journal, nay, a sounding board for frustrations I've encountered while building Kronicity. One of my partners laughed that it would be great to have Kronicity fully developed to chronicle all these frustrations along a timeline. With any luck, that's 12 weeks away and I do plan to use it for that purpose.
Today's frustration deals with entrepreneurial experts - and who isn't one today. After all, the $12.95 latest "How to think outside of the box" book that literally ships to the newly minted expert in an actual freaking box is all it takes. They're usually 200 pages of mantras that could fit on a post card - easy to understand and repeat. I was actually able to mouth along with the objections of one self ordained expert as he quoted from one of the more popular best sellers. I reactively argued my point with a few of these fellows, but only a fool argues with a fool and I've come to understand that a polite and rapid exit is usually the best thing to do.
One of the latest in my long list of frustrations is from a so-called Venture Capitalist. He passed on Kronicity, as if I was actually considering him, citing we had too many partners and our target market was too difficult to work in. But I didn't have to argue with the guy. He'd already let loose the reasons not to.
First, he described how he'd made a mint from selling a tech-based company. Had he left at that, I'd have lengthened the conversation a bit. But I used a technique I've adopted years ago. I let him keep talking. He continued to describe how he knew absolutely nothing about the industry he operated in, that it developed in the early 1990s and the real kicker, that he started it as part of his dad's business at dad's request and, of course, funded by dear ole dad. I immediately thought I should be talking with dad. But I kept quiet and it got better. He then complained that I had too many partners to deal with. I have seven critical thinkers in my business including myself. He and his accountant then started talking about diluting the current partners as quickly as possible. Hello! I'm right here idiot! He then concluded with talk about how rich he was and how my financial needs were nothing to someone like himself.
This guy was telling me he was going to be trouble, would create a hostile environment and had an inferiority complex in our first five minutes. A few more minutes of complaining about how difficult it was to sell to schools made it obvious he didn't even understand our business model. We're free to schools.
As for it being difficult to work with schools, everything your dad doesn't fund is going to be hard dude. Obstacles are opportunities for entrepreneurs.
This may be the first of a series of posts as my encounters are so numerous. But, ending on a positive note, I've managed to avoid a host of these self appointed experts forcing me to be clever enough to fund Kronicity with minor investments in cash and major investments by qualified partners and collaborators. We're a better company because of this. And by the way, I believe there were nearly 50 equity partners in What'App that sold for $19 billion. You can dilute me all day long for those figures.
Today's frustration deals with entrepreneurial experts - and who isn't one today. After all, the $12.95 latest "How to think outside of the box" book that literally ships to the newly minted expert in an actual freaking box is all it takes. They're usually 200 pages of mantras that could fit on a post card - easy to understand and repeat. I was actually able to mouth along with the objections of one self ordained expert as he quoted from one of the more popular best sellers. I reactively argued my point with a few of these fellows, but only a fool argues with a fool and I've come to understand that a polite and rapid exit is usually the best thing to do.
One of the latest in my long list of frustrations is from a so-called Venture Capitalist. He passed on Kronicity, as if I was actually considering him, citing we had too many partners and our target market was too difficult to work in. But I didn't have to argue with the guy. He'd already let loose the reasons not to.
First, he described how he'd made a mint from selling a tech-based company. Had he left at that, I'd have lengthened the conversation a bit. But I used a technique I've adopted years ago. I let him keep talking. He continued to describe how he knew absolutely nothing about the industry he operated in, that it developed in the early 1990s and the real kicker, that he started it as part of his dad's business at dad's request and, of course, funded by dear ole dad. I immediately thought I should be talking with dad. But I kept quiet and it got better. He then complained that I had too many partners to deal with. I have seven critical thinkers in my business including myself. He and his accountant then started talking about diluting the current partners as quickly as possible. Hello! I'm right here idiot! He then concluded with talk about how rich he was and how my financial needs were nothing to someone like himself.
This guy was telling me he was going to be trouble, would create a hostile environment and had an inferiority complex in our first five minutes. A few more minutes of complaining about how difficult it was to sell to schools made it obvious he didn't even understand our business model. We're free to schools.
As for it being difficult to work with schools, everything your dad doesn't fund is going to be hard dude. Obstacles are opportunities for entrepreneurs.
This may be the first of a series of posts as my encounters are so numerous. But, ending on a positive note, I've managed to avoid a host of these self appointed experts forcing me to be clever enough to fund Kronicity with minor investments in cash and major investments by qualified partners and collaborators. We're a better company because of this. And by the way, I believe there were nearly 50 equity partners in What'App that sold for $19 billion. You can dilute me all day long for those figures.
Wednesday, August 26, 2015
Customer as Product
My startup, Kronicity, is building a free site with paid upgrades, of course, designed to scale quickly. This scale will be monetized through a humber of means. The latest, I read a How to think out of the box book that came in an Amazon box, argued that my user was the product and my customer was the marketer and that I should build for them. He pointed to Twitter users as product and marketers as the actual customer.
Here's my take. There is no such thing as a user who is only a product. The user is both customer and product. Kronicity is designing for two customer segments, the user and the marketer. I FIRST have to develop a product the user will love and use. Only then will I be able to market to the marketer for all that lovely advertising money.
There's a pretty important distinction here. Defining who your customer is is critical. Every feature and design decision must focus on customer experience and customer perceived value. If you're monetizing your users, you have at least two customer segments. This requires viewing your product through two lenses and building two marketing strategies. And, if done properly, seamlessly integrating both segments into all planning phases.
Here's my take. There is no such thing as a user who is only a product. The user is both customer and product. Kronicity is designing for two customer segments, the user and the marketer. I FIRST have to develop a product the user will love and use. Only then will I be able to market to the marketer for all that lovely advertising money.
There's a pretty important distinction here. Defining who your customer is is critical. Every feature and design decision must focus on customer experience and customer perceived value. If you're monetizing your users, you have at least two customer segments. This requires viewing your product through two lenses and building two marketing strategies. And, if done properly, seamlessly integrating both segments into all planning phases.
Wednesday, August 12, 2015
What Does a Business Strategist Do?
The simplest explanation, is we consider and align every possible aspect of a business. Think of your business as a natural extension of the natural world, which it is. Alexander Pope’s reference to a “Vast Chain of Being” applies to the interconnected parts of a business just as much as to the success or failure of a species in the wild. Cockroaches, for example, are really well-aligned animals. Mammoths - not so much.
How We Do It
We do this utilizing a large number of tools and usually involves enlisting the advice and assistance of numerous other experts. I could talk all day about this, but let’s try to break it down into a few simple components.
Competitive Forces Analysis
Most startups think of competitors as the firm down the street competing for the same customers. And this is partly true. But trust me buddy, there a whole lot of other things trying to kill you. Is the technology ready for your product? Is the customer ready? Can they find a cheaper alternative? Are economies of scale working against you or in someone else’s favor? Has your competitor locked up all existing manufacturing and distribution?
By example, did betamax fail because it was too soon for a new media format? Or was it that VHS aligned themselves with Blockbuster to create a customer pull strategy? If so, VHS succeeded because they identified the superior product competitor and outcompeted with a superior distribution channel.
One of my favorite examples is a lawsuit, “Silk” versus the Milk Industry. It was settled with a collaboration where Milk wholesalers distributed the “Silk” product. In this case, the milk industry recognized a potential threat and decided to join rather than fight. Distributing gave them insights and profits. Silk recognized a powerful competitor and ore importantly a potential collaborator that provided them with a a well-established efficient low-cost distribution and marketing channel. The consumer won as well. Quoting Charles Darwin: “In the long history of humankind (and animal kind, too) those who learned to collaborate and improvise most effectively have prevailed.”
These are just a few of many competitive forces to consider. A business strategists considers all of them and recommends solutions and strategies to accommodate.
Channel Design
Understanding the competitive landscape is critical in identifying channels that need to be developed. The “Silk” example above was a very efficient and low cost solution to a problem most businesses face. Recognizing the actual competitive forces allowed them to collaborate and not only eliminate competition, but to develop low cost distribution and marketing channels. Most startups instinctively and reflexively seek the lowest-priced raw materials and manufactured goods. Big mistake! Your product is priced based on overall cost to create and deliver to the end user. A high priced manufacturer may also have well-established channels/access to your customer. They may open doors to new customers, share marketing costs, even distribute for you. Understanding channels is critical.
Financing
Let’s assume you’ve developed a better mouse trap that requires only biodegradable paper components. And you only need a $40,000 to get to market. As a business strategist, my first thought is to negotiate a partnership with a paper manufacturer to produce the product at cost, reducing your cash needs to about half or $20,000 and then borrowing that cash from the same paper manufacturer. Of course it would have to be a damned good mouse trap. But even if deemed a risk by the manufacturer, with a good marketing plan, such as using their distribution network, there is still some room for negotiation.
Marketing
Align all the parts! Can your customer be reached through an established network? Are any partners in your channels connected to them? Lord knows your manufacturers are vested in your success. Perhaps there’s a collaborator with a complimentary product? You could share costs and tap into each others customer base. The competitive analysis above can fine tune who your customers are and better target your campaigns. Your partners can share insights on what worked or didn’t work for them. Have you identified substitutes that you have to position yourself against? I witnessed a customer at a high end tea shop complain she could find an oolong at a quarter of the price the shop was asking just down the street. The manager responded that they too could sell cheap oolong but decided to maintain high quality tea did not compete on price. he shop had done their homework, priced and packaged and marketed accordingly. The customer paid the price.
Communication Channels
How many times have you gone to a retailer or restaurant and was so disappointed in the service that you never went back. Or maybe you had a suggestion that would have really helped out a new small business. I pity the poor business owner who doesn’t know of your experience nor learned of your suggestion. But in reality, it is their fault for not having established communication channels that make it easy for customers to interact with your business AND for employees to act on this data. And this communication extends from customer to business owner and straight on back to manufacturer and raw goods provider. And a well designed communications channel allows a business to respond quickly to change. Again, I quote Darwin: “It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change.”
As you can see, just as in the “vast chain of being” in the natural world, there’s a lot of overlap in all categories. Aligning them is critical to survival. Your goal as a business owner or manager is to try NOT to be a mammoth. We can help.
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| https://upload.wikimedia.org/wikipedia/commons/0/0a/MammothVsMastodon.jpg |
How We Do It
We do this utilizing a large number of tools and usually involves enlisting the advice and assistance of numerous other experts. I could talk all day about this, but let’s try to break it down into a few simple components.
Competitive Forces Analysis
Most startups think of competitors as the firm down the street competing for the same customers. And this is partly true. But trust me buddy, there a whole lot of other things trying to kill you. Is the technology ready for your product? Is the customer ready? Can they find a cheaper alternative? Are economies of scale working against you or in someone else’s favor? Has your competitor locked up all existing manufacturing and distribution?
By example, did betamax fail because it was too soon for a new media format? Or was it that VHS aligned themselves with Blockbuster to create a customer pull strategy? If so, VHS succeeded because they identified the superior product competitor and outcompeted with a superior distribution channel.
One of my favorite examples is a lawsuit, “Silk” versus the Milk Industry. It was settled with a collaboration where Milk wholesalers distributed the “Silk” product. In this case, the milk industry recognized a potential threat and decided to join rather than fight. Distributing gave them insights and profits. Silk recognized a powerful competitor and ore importantly a potential collaborator that provided them with a a well-established efficient low-cost distribution and marketing channel. The consumer won as well. Quoting Charles Darwin: “In the long history of humankind (and animal kind, too) those who learned to collaborate and improvise most effectively have prevailed.”
These are just a few of many competitive forces to consider. A business strategists considers all of them and recommends solutions and strategies to accommodate.
Channel Design
Understanding the competitive landscape is critical in identifying channels that need to be developed. The “Silk” example above was a very efficient and low cost solution to a problem most businesses face. Recognizing the actual competitive forces allowed them to collaborate and not only eliminate competition, but to develop low cost distribution and marketing channels. Most startups instinctively and reflexively seek the lowest-priced raw materials and manufactured goods. Big mistake! Your product is priced based on overall cost to create and deliver to the end user. A high priced manufacturer may also have well-established channels/access to your customer. They may open doors to new customers, share marketing costs, even distribute for you. Understanding channels is critical.
Financing
Let’s assume you’ve developed a better mouse trap that requires only biodegradable paper components. And you only need a $40,000 to get to market. As a business strategist, my first thought is to negotiate a partnership with a paper manufacturer to produce the product at cost, reducing your cash needs to about half or $20,000 and then borrowing that cash from the same paper manufacturer. Of course it would have to be a damned good mouse trap. But even if deemed a risk by the manufacturer, with a good marketing plan, such as using their distribution network, there is still some room for negotiation.
Marketing
Align all the parts! Can your customer be reached through an established network? Are any partners in your channels connected to them? Lord knows your manufacturers are vested in your success. Perhaps there’s a collaborator with a complimentary product? You could share costs and tap into each others customer base. The competitive analysis above can fine tune who your customers are and better target your campaigns. Your partners can share insights on what worked or didn’t work for them. Have you identified substitutes that you have to position yourself against? I witnessed a customer at a high end tea shop complain she could find an oolong at a quarter of the price the shop was asking just down the street. The manager responded that they too could sell cheap oolong but decided to maintain high quality tea did not compete on price. he shop had done their homework, priced and packaged and marketed accordingly. The customer paid the price.
Communication Channels
How many times have you gone to a retailer or restaurant and was so disappointed in the service that you never went back. Or maybe you had a suggestion that would have really helped out a new small business. I pity the poor business owner who doesn’t know of your experience nor learned of your suggestion. But in reality, it is their fault for not having established communication channels that make it easy for customers to interact with your business AND for employees to act on this data. And this communication extends from customer to business owner and straight on back to manufacturer and raw goods provider. And a well designed communications channel allows a business to respond quickly to change. Again, I quote Darwin: “It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change.”
As you can see, just as in the “vast chain of being” in the natural world, there’s a lot of overlap in all categories. Aligning them is critical to survival. Your goal as a business owner or manager is to try NOT to be a mammoth. We can help.
Tuesday, July 28, 2015
How to Avoid The Crazy Developer Partner
Chances are, as a startup, you need some development work. If you're NOT a developer yourself, consider these rules for developers.
RULE One:
NEVER make the guy developing your product your equity partner. NEVER! If you don't speak the language, be it HTML5, or java, or what the hell else, you're at his or her mercy.
RULE Two:
See Rule One, there are no other rules.
I personally have had more smoke blown up my ass by partners that are developing products for me than I care to discuss. But I have found a solution that I desperately want to share.
A developer is the most important stakeholder in your business. But never have that person develop your product. There's a serious conflict of interest there. If you can afford to, hire one as CTO to handle your development work. Their role is to understand the product, assist with development of the product specs, create requirements documents, assist in development of developer contracts, and critically KEEP AN EYE ON THE DEVELOPER BUILDING THE PRODUCT. If you're cash poor, partner with one for equity.
Considering each part of the developer partner's role, understanding the product is key. If he or she doesn't get it after a meeting or two - LOOSE 'em. They never will get it and can't help you. Some will actually argue that features are needed or not needed based on their $12.95 how-to for startup book, when they are actually guiding you to change the product to suite their development skills. If they can't build an iFrame, they simply argue it's not needed.
Your CTO should be able to assist with development of the product. Again, after two meetings they should be able to not only understand the product but be able to offer unexpected solutions that enhance the product and not change it.
Product specs are critical when outsourcing development. The CTO developer is best suited to do this. This is an accountability checklist for the developer building the product as well as the developer guiding the project for you.
Developer contracts have been around for decades. They point to the requirements document and require deliverables to be paid. Your CTO should have these at his disposal or be able to create one. Of course you'll want your lawyer review this. Your contract with the CTO should list his duties in detail as well.
Finally, both the CTO and Product developer must meet certain personality requirements. Let's be honest, folks who couldn't possibly make it working with the public, children or with normal humans can find work and happiness securely hiding behind the glowing screen. And steer clear of the developer who is an expert at everything entrepreneurial as he read the latest $12.95 How-To build a startup business book. Appropriate folks are out there. So don't let desperation and frustration tempt you to tolerate or, heaven forbid, to partner with one of these guys. If the product is a good one, FIND A STRATEGIST TO ALIGN IT, TO ATTRACT STAKEHOLDERS, AND TO FUND IT.
A side-note: If you already have an impossible developer-partner, and you know deep inside that you do, dump him or her at any cost as soon as possible.
A good startup strategy starts with a great team that includes a developer. If you're not one, take on one as partner or hire one to guide and advise. At George J. Constance, Jr., Business Strategy Consulting, we align your business with the market, key stakeholders and away from the dangerous alliances that can kill even the best ideas.
RULE One:
NEVER make the guy developing your product your equity partner. NEVER! If you don't speak the language, be it HTML5, or java, or what the hell else, you're at his or her mercy.
RULE Two:
See Rule One, there are no other rules.
I personally have had more smoke blown up my ass by partners that are developing products for me than I care to discuss. But I have found a solution that I desperately want to share.
A developer is the most important stakeholder in your business. But never have that person develop your product. There's a serious conflict of interest there. If you can afford to, hire one as CTO to handle your development work. Their role is to understand the product, assist with development of the product specs, create requirements documents, assist in development of developer contracts, and critically KEEP AN EYE ON THE DEVELOPER BUILDING THE PRODUCT. If you're cash poor, partner with one for equity.
Considering each part of the developer partner's role, understanding the product is key. If he or she doesn't get it after a meeting or two - LOOSE 'em. They never will get it and can't help you. Some will actually argue that features are needed or not needed based on their $12.95 how-to for startup book, when they are actually guiding you to change the product to suite their development skills. If they can't build an iFrame, they simply argue it's not needed.
Your CTO should be able to assist with development of the product. Again, after two meetings they should be able to not only understand the product but be able to offer unexpected solutions that enhance the product and not change it.
Product specs are critical when outsourcing development. The CTO developer is best suited to do this. This is an accountability checklist for the developer building the product as well as the developer guiding the project for you.
Developer contracts have been around for decades. They point to the requirements document and require deliverables to be paid. Your CTO should have these at his disposal or be able to create one. Of course you'll want your lawyer review this. Your contract with the CTO should list his duties in detail as well.
Finally, both the CTO and Product developer must meet certain personality requirements. Let's be honest, folks who couldn't possibly make it working with the public, children or with normal humans can find work and happiness securely hiding behind the glowing screen. And steer clear of the developer who is an expert at everything entrepreneurial as he read the latest $12.95 How-To build a startup business book. Appropriate folks are out there. So don't let desperation and frustration tempt you to tolerate or, heaven forbid, to partner with one of these guys. If the product is a good one, FIND A STRATEGIST TO ALIGN IT, TO ATTRACT STAKEHOLDERS, AND TO FUND IT.
A side-note: If you already have an impossible developer-partner, and you know deep inside that you do, dump him or her at any cost as soon as possible.
A good startup strategy starts with a great team that includes a developer. If you're not one, take on one as partner or hire one to guide and advise. At George J. Constance, Jr., Business Strategy Consulting, we align your business with the market, key stakeholders and away from the dangerous alliances that can kill even the best ideas.
Friday, June 19, 2015
We're adding In-House Development to Our List Of Services!
The best lessons are the ones that burn the most. My latest is a real doozy.
I was recently put through the ringer by a developer who insisted I create detailed requirements documents for every freakin' thing on my proposed site. How to login, what to data to collect, and what message to display when something went wrong. After a year and half of not getting anywhere, aside from really neat requirements documents, I fired the developer and went with another guy. The new guy didn't require a single document from me. He looked at images of what I wanted, asked I annotate some and took notes. A few weeks later he delivered a pretty close working beta that we used to fine tune the next set of notes he took.
Here's the difference, new developer asked why would I waste time developing such detailed requirements when he, like most developers, was going to use well-designed and well-tested plugin from a library of features, login included. He then showed me samples that allowed customization and included features neither one of us considered.
Bottom line and lesson I took, was find a developer who thinks like a startup. New guy wasn't interested in process, nor paranoid about finger pointing later. As a service-oriented developer, he took responsibility for documentation, a few hand notes and a drawing in this case, upon himself and started work immediately. It took us an hour to get requirements down and 5 weeks to deliver.
I've added new guy to my arsenal collaborators and now offer development work for your startup or growing business. From concept through web development, marketing and sales, we deliver. And we align all of this for maximum efficiency - saving you money and getting up and and running in a fraction of the time most others can.
So call us!
I was recently put through the ringer by a developer who insisted I create detailed requirements documents for every freakin' thing on my proposed site. How to login, what to data to collect, and what message to display when something went wrong. After a year and half of not getting anywhere, aside from really neat requirements documents, I fired the developer and went with another guy. The new guy didn't require a single document from me. He looked at images of what I wanted, asked I annotate some and took notes. A few weeks later he delivered a pretty close working beta that we used to fine tune the next set of notes he took.
Here's the difference, new developer asked why would I waste time developing such detailed requirements when he, like most developers, was going to use well-designed and well-tested plugin from a library of features, login included. He then showed me samples that allowed customization and included features neither one of us considered.
Bottom line and lesson I took, was find a developer who thinks like a startup. New guy wasn't interested in process, nor paranoid about finger pointing later. As a service-oriented developer, he took responsibility for documentation, a few hand notes and a drawing in this case, upon himself and started work immediately. It took us an hour to get requirements down and 5 weeks to deliver.
I've added new guy to my arsenal collaborators and now offer development work for your startup or growing business. From concept through web development, marketing and sales, we deliver. And we align all of this for maximum efficiency - saving you money and getting up and and running in a fraction of the time most others can.
So call us!
Thursday, June 18, 2015
Entrepreneurial Course at MCC
As a business strategist, I charge $210 per hour. Not the best option for most cash-strapped startups. But because I know a few of them, like Satto Technologies, may have really high potential, I tend to let the hourly rate slip for the first few causal meetings. Great way to screen potential clients and to offer help to some folks who just need it.
I still offer these casual meetups at cafe's and co-working spaces. But I've also added a new strategy - I'm teaching a 2-day weekend course on entrepreneurialism at Manchester Community College's Viscogliosi Entrepreneurial Center. Great way for me to meet and help a large number of startups and save them a great deal of money.
So, if you have a startup that's struggling or considering starting one, I'd love to hear all about it, share my insights and offer resources.
I still offer these casual meetups at cafe's and co-working spaces. But I've also added a new strategy - I'm teaching a 2-day weekend course on entrepreneurialism at Manchester Community College's Viscogliosi Entrepreneurial Center. Great way for me to meet and help a large number of startups and save them a great deal of money.
So, if you have a startup that's struggling or considering starting one, I'd love to hear all about it, share my insights and offer resources.
BUSINESS The Entrepreneurial Sequence for
Business Start-Ups
CRN 20802 | Fee: $165 2 sessions, Saturday & Sunday | 7/25-7/26 10 AM-4 PM | MCC on Main
Instructor: George Constance
For full course description, see page 47.
https://www.manchestercc.edu/wp-content/uploads/2015-Summer-Credit-Free-Catalog.pdf
Friday, November 21, 2014
Seek YOUNG Investors
Had an interesting conversation with Jennifer, an acquaintance and fundraiser for a large non-profit. She really liked my approach to business strategy development and thought my project portfolio was interesting. She also had some really interesting isights into funding new ventures - go after young technology-based employees. Fascinating approach that she backed up with a story about an investment her son made in Silicon Valley that I had to write about. But first some history.
In the early days of coffee shops, that soon became teashops, a small cafe in a shipping district of London noticed they had a lot of ship's captains seeking insurance that drew a lot of insurance agents into the shop. Being a good marketer, the owner of the coffee shop began posting a list of ships, cargos, and captains, along with insurance needs on his wall. Business boomed and he noticed a need for a third party to negotiate the contracts and the waiters quickly became skilled brokers. Coffee and tea soon became a distraction to the real business, insurance brokerage. Today, when visiting Lloyd's of London, you still meet with a waiter and not a broker.
Back to our story, Jennifer described how young, unattached and over-paid developers would congregate at coffee shops in the valley where they invariably would discuss new ventures they were working on or heard of and, of course, the cash requirements to launch. The owners almost daily noticed tens of thousands of dollars being pooled for exciting ventures. Like Mr Lloyd nearly three hundred years earlier, the coffee shop owners began to invest and broker deals and opened two additional shops for that purpose. Jennifer's son invested in the second shop. The owners didn't need an investor for the third shop.
Lesson for entrepreneurs everywhere:
1. Move to Cali
2. Pitch young folks who know other young folks that can pool resources. These folks are capable of dropping a few bucks without sacrifice and tend to be more future focused than older folks. They'll invest in a deal that might take a decade to make them uber rich. 3. Young tech savvy investors can contribute to your business and are super connected marketers
In the early days of coffee shops, that soon became teashops, a small cafe in a shipping district of London noticed they had a lot of ship's captains seeking insurance that drew a lot of insurance agents into the shop. Being a good marketer, the owner of the coffee shop began posting a list of ships, cargos, and captains, along with insurance needs on his wall. Business boomed and he noticed a need for a third party to negotiate the contracts and the waiters quickly became skilled brokers. Coffee and tea soon became a distraction to the real business, insurance brokerage. Today, when visiting Lloyd's of London, you still meet with a waiter and not a broker.
Back to our story, Jennifer described how young, unattached and over-paid developers would congregate at coffee shops in the valley where they invariably would discuss new ventures they were working on or heard of and, of course, the cash requirements to launch. The owners almost daily noticed tens of thousands of dollars being pooled for exciting ventures. Like Mr Lloyd nearly three hundred years earlier, the coffee shop owners began to invest and broker deals and opened two additional shops for that purpose. Jennifer's son invested in the second shop. The owners didn't need an investor for the third shop.
Lesson for entrepreneurs everywhere:
1. Move to Cali
2. Pitch young folks who know other young folks that can pool resources. These folks are capable of dropping a few bucks without sacrifice and tend to be more future focused than older folks. They'll invest in a deal that might take a decade to make them uber rich. 3. Young tech savvy investors can contribute to your business and are super connected marketers
Older Entrepreneurs in America
At 25, working as an oil industry paleontologist, I was offered a chance to invest in an oil well that a geology school buddy and wildcatter was drilling. It was only $7,000 for a potential 12 feet of pay and substantial returns. I looked over the science and invested immediately. A few days later, the well not only hit the 12 feet, but another 20 feet in addition. I was buying a house with that $7,000 investment! The next morning, unfortunately, my buddy called with the bad news. The well was tight, that is the oil couldn't be recovered and I lost my investment.
No big deal, I was young, earning cash, and had no dependents or heavy debts of any kind. I asked my buddy to let me know if another play came available. I had time to not only recover, but do it again.
Fast forward to August 28th, 2005 at age 45. After shuttering my paleontological consulting firm, due to an industry downturn, I had just literally shuttered my new tea and spice business, profitable after only 12 months in business, preparing to weather Hurricane Katrina. Twenty four hours later, I was ruined, like the city. What was I to do, aged 45. Did I have time to lose at this age.
Turns out I did. I reapplied my small business expertise, my consulting expertise and knowledge of species competition into a business strategy consulting firm that focused on competitive analysis. It wasn't easy. There was a bankruptcy and a MS degree in Technology Commercialization earned along the way. But, unlike in many other nations, I wasn't punished for failing and recovered. And I'm looking forward to my next endeavor that launches next Spring and promises to earn me a bundle - again.
Critical at any age, is understanding the entrepreneurial process to avoid wasting time and money. GJC Business Strategy Consulting is dedicated to helping you successfully navigate through your next venture - at any age.
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