T-M-I from T-I-M

A clear business model is not always a fundable business model

Most every entrepreneur I meet struggles to crisply articulate their value proposition.  I solve that problem.

However, clarity of a  value proposition can be a double edged sword.  I was working with an entrepreneur last week, helping him get to the essence of his company.  When we did I realized that it would not get funding.

I told him candidly that it would be very difficult to get this funded, even in the best of economic environments (not an easy convo to have).  I know the whole Google argument about how people would have turned that down.

But for every esoteric (at that time) idea of differentiation like Google, there are 100's maybe even 1000's of companies that have a business model that won't and shouldn't get funded (like the one I'm referring to).  My best advice to the entrepreneurs in that situation is to keep the idea going perhaps as a side business (or shut it down) and move on to their next big idea.

SF New Tech Big Summer Geek Out

Last night, I attended SF New Tech's Big Summer Geek Out and it was pretty darn cool.  It was engaging to actually be at a networking event that didn't feel grueling as some of them can be. 

I walked in just as the 6 companies were getting ready to present their technology.  There was a 5 minute LED clock going (thank goodness) that kept the presenters on time.  (Nothing is more likely to go over time than a CEO (often an engineer) up in front of a group talking about their baby.)

I realized pretty quickly that there were lots of engineers in the audience given the questions.  Although I have to give some love to the host who made sure us non-engineers in the audience could follow along.

Of the companies, a few companies of interest:

• snappystuff:  Allows you to list your items you wish to sell or trade on multiple services from one point.
• mydogspace:  A social networking site for dogs (and dog owners).  I thought the company was....cute, but I'm not sure if it's sustainable long term (it feels like a derivative application of web technology (like toys and pets.com) in the social networking context).  But HUGE ups for them having a trailer for the movie version of Marley and Me!
• Backblaze:  Clearest and most engaging demo of a super simple online computer back-up service.
• govit:  I like that the CEO is actually trying to do something to engage us all in politics but I told him that it's a labor of love and he's up against a lot of dynamics that will make it tough to succeed on a large scale.

I also liked that the host let anyone from the audience give a 60 second spot on things they are doing or resources they are looking for.

Bottom line, it was a fun event that reminded me how many people are out there innovating.

Entrepreneurs I admire AND support

Every month I see 2-3 new entrepreneurs (E's to make it easy) working with the Band of Angels (who get the best deals in the valley for angels, hands down) in addition to others I meet and work with. 

Over the course of these experiences I've met E's of every shape, size and background and I've been thinking about what attributes I evaluate in deciding whether I admire AND support them.  (Note that support means that I think they are bankable, I play euchre with nice people, I do business with nice people who know how to make money.)

Note:  One presumption here is that E's company has a product/solution that's needed in the market.

1. Is he/she nice? (The kindness factor):  I mean this with all sincerity.  You do not have to be a jerk to succeed.  You CAN be a jerk and succeed, but you don't have to be. 
2. Is she/he decisive? (The decisiveness factor):  It is critical in the early stages of a company to be decisive.  You can look to others for counsel, but do not look to them for decision making. 
   
   BTW, I absolutely believe that you can be a nice person and fire someone or tell them they are not doing their job and will be fired if they don't. 
   
   Decisiveness also includes knowing when to either shift dramatically or raise the white flag, close up shop and get set to try it again.
3. Does he/she know what they don't know? (The humility factor):  This one is a little self-serving but nothing boggles my mind more than when an E thinks they know how to do something but doesn't.  I find out on this one real quick when I work on their presentations.
   
   The main thing here I'm dealing with is ego (theirs and to a certain extent mine I admit it).  I find it confusing when an E says that his or her approach will work when it's not working right in front of us. 
   
   It also manifests itself in their confidence to get in front of an audience and readily admit that they have holes in their management team.  So, a company has a great product, a team that includes someone whose "felt the pain" but no one on the team who knows how to sell it.  There's nothing wrong with that, happens all the time.  But will they admit it?
   
   If they will, I like it.
4. Can she/he take criticism? (The resilience factor):  I think resilience is the single most underrated attribute of being a successful E.  The fact is you get more no's than a uber-successful rhinoplasty surgeon (I have NO idea where that came from...).  I can see it in their eyes when they are questioned and then hear it in their words when they respond.
   
   Do they say things like:  "They just don't get it"  "He's clueless", etc. 
   
   I'm not even suggesting that in fact people do get it or that they aren't clueless (believe me there are TONS out there who are).  All I'm asking is how do they handle it.  I understand that they hold their companies with great sanctity and that start-ups are emotional.  But how mature are they when the no's and criticism come because in this environment you KNOW you'll get it.

I completely undrestand that luck plays a notable role in start-up success.  I also get that there are other attributes out there that make a difference.

But give me an E who is kind AND decisive, humble AND resilient you've got a CEO that I would admire AND support.

My Start-Up Life by Ben Casnocha

Today, I'm proud to share, is the day that Ben Casnocha's first (of I'm sure many) books came out, My Start-Up Life:  What a (Very) Young CEO Learned on his Journey Through Silicon Valley. 

The book is important to me for a number of reasons.  First I think it's a book that should be required reading for HS and College students, but as I noted in my review, I suspect that teachers may struggle teaching it.  A big part of Ben's story is that he has succeeded outside of the traditional academic routes that school requires. 

And it's not easy to do that (which of course is nothing short of perplexing).  The book describes in simple, compelling detail how he did it. 

It's also important to me because as a friend it's wonderful for me to see him realize a dream given how much he loves to write.  He's an interesting individual who will continue to grow.  His blog and most certainly in my personal interactions since I've known him I've gotten the pleasure of learning lots about what Ben thinks. 

His ideas are compelling.  Now this first book I think talks more about his experiences than his ideas but his experiences are pretty unusual and interesting.  I'm excited that this success gives him the opprotunity to perhaps write in the future more about his ideas than Ben.

Of course, Ben will tell you that in his relationship with me it doesn't excuse him from sharing honestly with me, which he does as we both learn about who we are.

The last part I'm excited about (which Ben and I had a good laugh about) is that the last page of the book is mine.  I don't mean he talks about me, I mean it's mine!  I wrote a short essay for the book and it ended up as the last page of the book.  Understandably, Ben asked the publishers to move the page earlier which he thought had happened, but when the first print came out....no dice, TT got the last word!

It's a great gift to or from parents and a wonderful read...particularly the last page!

Congrats Ben, you rock!

Women Underestimating Their Net Worth by Lizette Wilson

Lizette Wilson recently wrote an interesting piece in the  in the SF Business Times(8.4K) about the way women behave in terms of valuing their business, services, salary, etc.  Before you even as, no it was not interesting just because I am quoted in it.  See, that's why it's interesting to ME, ha!

I was thrilled to see Eileen Gittins, CEO of Blurb get right to it with regards to this:

"The amount of capital you seek is a function of what you're trying to accomplish. You can't be an effective CEO if you don't measure results. And measurement is mathematics. You have to be comfortable with that."

I can promise you that she is.  In the 4+ years since I started Taylor Inc. and have been helping entrepreneurs pitch their company as well as raise money for them, the ratio of men to women CEO's has not changed.  It's mostly dudes.

Admitting that without judgment can be very powerful for a CEO who is a woman.  Alternatively, I suppose you could go into and try and change it or even go around it because of that.  I'm pretty sure, however, that by doing so you've reduced the odds of company survival precipitously. 

I'm not suggesting that a woman should try and be one of the boys (believe me we have plenty of us right now...).  Rather, understand what motivates men and then use that energy to your benefit.  And trust me, we're not that hard to figure out.