Easy Money - Killer start-ups
Nine tips to those who start a business from scratch
In the light of only just becoming feet of our fund is very interesting reflections of one of my older friend on the approaches to alignment settings their business from the bottom. I am sure that very many of his views would be very much helpful. So his words:
Most people feel a lack of money the main and almost the only obstacle to success. Is this true? I am sure it is not. Moreover, I believe that it is easy to obtained the initial investment (grants, grants, loans from relatives of people, etc.) might kill the business.
Lack of funds forces gain invaluable experience. If you get enough money to pay for all necessary staff, it is unlikely you'll be doing yourself a "dirty" work. Well, well - you might say - more time можно будет потратить на «высококвалифицированный» труд по созданию компании вашей мечты. Возможно, но вам сложнее будет чувствовать потребности клиентов, nuances of communication with suppliers, streamline processes, without losing valuable information. In the period of the business we partner with themselves went to the customers, commodity to the bank, were the drivers and store clerks and salespeople, doing coloring (our business begins with a selection of automotive paints), printed "Payment order", looking for suppliers, etc. Now, when the company's turnover in the tens of millions of dollars with these issues, of course, handled by experts which is much better than me cope with all these features. But we have an understanding of how and what is happening in the company.
Almost every businessman, если он не стал им благодаря счастливой случайности в виде, например, богатого папы или приватизации активов, прошел похожий путь.
Мотивация
Если начинающий entrepreneurs "hungry", he will "bite" in any opportunity to work 24 hours a day and work miracles. If, again, you're on the first day provided normal financing, salary, you'll want to strain it too big? Most of us do not want to, so is the way this world.
In addition, the lack of Money stimulates creativity. If you can not pay all that is necessary, willy-nilly, you start to look for creative ways to solve the problem. But in the end, in this and the essence of a competitive business - do better at the same cost or the same quality but cheaper.
If you got the money (Loans and investments), you'll be more afraid and less risk. When nothing to lose, you can afford the bold, reckless decisions, which may make you are a billionaire. And if not, then you will eventually lose nothing but gain additional experience.
One more point. Lack of money will force sell product before, because it will give much-needed cash flow. But very often the desire to bring the product to some "ideal" leads to loss of benefits in time. Me in this respect is very like the approach of programmers. They initially know that at the conclusion of work on any program it will be a lot of mistakes. But they do it, brings to market, and only then remove all the bugs. Absolutely the raw product to market, probably not worth it, but wait for "perfection" often, too, does not make sense.
Whose trick?
Recently, I often encounter a situation where all efforts are focused on startups seeking investment. This leads to the fact that product development does not have the time and effort. Moreover, these startups tend to "please" the investor and not the client. What this could lead? In the best case - the loss of time, at worst - the focus on the business product.
So, in conclusion, there is a very good chance that there is no money in the beginning you just have no will. Guy Kawasaki says that the chances of getting VC funding is much lower than the probability of getting lightning while standing on the bottom of the pool on a sunny day. And then, without receiving the expected investment, you do not start a business. Or maybe your business is not attractive to angels and venture capitalists, but that does not mean you have to abandon it. By the way, Apple, Microsoft, eBay and many others started with Bootstrapping (development without external funding).
advice to those who start completely from scratch
If I even managed to convince anyone that the money at an early stage can be evil there is still a question: how to create a company without them? I once said something that started his business with $ 100. Rental managed to negotiate a postponement, for equipment and supplies, too. Of course, it was not a Class A office in central Moscow, a modest room in a dilapidated Research Institute on the outskirts, and equipment was heavily used. But the work can be. Salary just to pay first, there was nothing, and I had to do everything myself.
Many businesses started from scratch, their start-up capital was less than your current salary. Read Richard Branson, frank story Oleg Tinkoff ("I like everything") or a history of Chichvarkin. They were able to start really from scratch and became superuspeshnymi (sorry, that Eugene is now such a situation, but I hope that his "finest hour" still to come).
try to formulate some tips that maybe someone can help:
1. Do everything yourself. Believe me, at the initial stage of this possible. I often send business plans to people who spent several years in large companies and try to copy the business model, which met there. Often I am in these plans see something like: "the marketing department - 5 people, planning and finance department - 3 persons, the procurement unit - 2 person," etc. And it is moreover, that this is a very small project. It does not happen. Rather, it happens in big companies that decide to open a new direction and allocate to all the necessary resources. But this is not business, that's another story.
2. Of course, sometimes without specialized expertise is necessary. Find young enthusiasts who do not have a name, but full of energy. Do you have a chance to convince them to take part in the project for future share. And if you can not inspire anyone the idea, if you can inspire her to your customers? How do I find them? Startaperskie go to different events. For example, Harvest - to make superactive, positive and competent guys. I've seen already a lot of projects that came to Harvest with "naked" idea, for two days, they found experts convinced them in the light prospects and are now successfully developing. By the way, and the first orders, and some money first found there.
3. Try to negotiate a postponement payment with all of your suppliers. Believe me, it is possible. Difficult, but possible.
4. Think about how to earn a point where your product is not yet ready, for example, offers consulting, training, something else.
5. Do not rent office ahead of time - you can use the house, garage, cafe, business incubators.
6. Do not buy anything that can be rented. For the profit and loss account is likely to be worse, but the initial cash flow path is much more important profits.
7. Use any of the alternatives - a lot can change, to take, to share. I know a young team, which now doing an internet project for a relatively large company "for free" - in exchange for the ability to use office computers and access Internet for their own startup.
8. Divide your Napoleon plans to conquer the market in small steps, start small. The other day talked with Eugene Demin (toothpaste "Splat"), so he told how, unable to get to the big chains, who personally went around a small pharmacy, and where could agreement, he would get in the shelves with their pastas and attract buyers. After a while it became much easier to talk with the larger players.
9. Put intangible goals. It works. If you will do everything in order to improve the lives of your customers, then money will appear. Can not prove it, but trust me - it works.
Lack of money - it's an excuse. Just start to act! And believe in yourself!
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