When I’m listening to Naveen Jain describing his plan to create big business on the moon, it’s hard for me to grasp that he was once a poor child in India.
Today, Naveen is a billionaire and a very successful entrepreneur. His own recipe for success is, among other things, not knowing much and not being very good at anything. To me, that sounds like the opposite of what business life normally requires, yet Naveen isn’t joking, and his track record proves that he is not wrong either. After all, the young boy that grew up in poverty in India is today changing the world as we know it and has Sir Richard Branson and Google founder Larry Page as two of his good personal friends.
Jonathan: Naveen, I find it so inspiring that you have used entrepr...
I had the pleasure of talking to Blake about his ideas and experiences as a social entrepreneur. I started by asking him about how TOMS started.
Blake: I started TOMS after a trip I took to Argentina in 2006. I noticed that many of the locals wore shoes that I learned were alpargata. I also noticed that in rural villages there were many children who were without shoes and how that was affecting their daily lives. I had to come up with a way to help and knew that relying on donations alone was not a sustainable solution, so I used my knowledge of business to come up with an idea. The result was a for-profit business model that empowers customers to help children through their purchases. For every pair of shoes purchased, a new pair is given ...
A Founder that doesn't understand startup finance is a liability to the company.
The very survival of a startup comes down whether we have enough cash to survive. If the Founder can't answer that question, it'd be like hopping on a jet with a pilot that doesn't understand how to read the altimeter, compass, or fuel gauge. They might be a great pilot, but without knowing the fundamentals, that trip is going to end poorly.
Fortunately, Founders don't need an MBA in finance to be competent, we just need to understand a few basic principles very well. While I'm the Founder + CEO of Startups.com, I'm also our CFO. That's because I learned long ago that with a solid understanding of just a few key principles, we can make (and avoid!) really criti...
For over 10 years, I lived simultaneously in Columbus, Ohio as well as Santa Monica, San Francisco, and Beverly Hills (don't ask), working in both locations and being very active in the local ecosystems. My family and I were on a plane every 3 weeks for almost 5 years.
A lot of people pontificate on whether a bigger city is better for a startup (and the Founder) but I actually tested it across 4 different startups, raising a family, and genuinely trying to enjoy the best of every city. Here's my take:
While living in LA and SF I met with over 1,000 Founders, more than most people will meet in a city they were actually born in. Big cities naturally attract the most ambitious people, so it's so much easi...
Recessions breed incredible opportunities for startups, if only us Founders knew where to look and how to leverage them.
At its core, a recession distracts everyone all at once, meaning only a select few will have the fortitude and foresight to find advantages. What we need to do during these times is step back and look at the overall picture to understand not just what's happening to us, but what's also happening to everyone else.
This is where the opportunity begins.
It's really hard for anyone to stay focused on growth when the walls are closing in around us. That's why most of our competition will be circling the wagons and staying completely fixated on internal struggles and survival. This is a gol...
Founders are rarely prepared for how to handle a legit crisis, like when the whole world turns upside down overnight.
I lived through 9/11 with 700 employees, raised multiple funding rounds in the middle of the 2007 Financial Crisis, and just for "funsies" oversaw the overnight shutdown of a startup with 450 people.
So yeah, I have some experience here.
What I've learned is when crisis hits, a solid approach to communication is one of the single most effective tools we can employ.
In times of crisis, no one wants to hear the sugar-coated version of where things stand.
"Hey Team, I know half of you have turned into flesh-eating Zombies, but the good news is there's way more La Croix for those of you who have survived!"
Getting equity back from an existing stakeholder isn't easy — but it is possible.
It's a situation that very few Founders have ever been through before, so no one really knows how to go about it. Let's talk a bit about how the situation develops and what we can do to get some of that precious equity back into our coffers.
More than anything, equity isn't just a stock issuance. It's a promise that at some future point that stock will be worth cash money — maybe.
When we think about pulling the equity back, we have to think in terms of how to redeem that promise of payment in some capacity. It's not just a matter of "taking it away" per se, it's a matter of trading the terms of the initial agreement ...
When it comes to building a startup, you are who you hire. Not only do the people you bring onto your team determine the direction and destiny of your product; they also shape what it will be like to come to work every day. So as you get started on the process of “who” your startup is going to be, we want to make sure you’re thinking about something major: team diversity.
Team diversity refers to differences between members of startup team. Those differences can include demographic differences (like age, race, sex, ethnicity), personality (extrovert, introvert, and differing Myers-Briggs types) and functional (as in skill sets, like engineering, design, copywriting, and marketing).
When we think a...
While the term “product-market fit” gets thrown around a lot in the startup world, it’s not always very well understood. In fact, we can’t even agree on who created it! Some people say that the concept of product-market fit was first developed and named by entrepreneur and investor Andy Rachleff. Others give credit to famed investor Marc Andreessen, who at the very least popularized term product-market fit when he wrote about in a 2007 blog post. He said, “Product-market fit means being in a good market with a product that can satisfy that market.”
In other words: You could have an amazing, sophisticated, well-thought out idea — and people just don’t get it. (Think: That first focus group for Pied Piper on HBO’s ...
The investor pitch. It's feared. It's desired. It's terrifying.
But don't worry: We've got you covered. Here's everything you need to know about that all-important investor pitch.
Invisu.me Co-Founder and CEO Donna Griffit is a master pitcher who has helped countless founders distill their pitch down to exactly what they need — and nothing they don’t. She had the opportunity to sit in on a private pitching event where a delegation of startups had the opportunity give a five minute pitch and receive direct feedback from a group of top-tier Silicon Valley VC’s. (So top tier that she can’t even say who was there but, trust us, you will want to memorize this section before your next pitch.)
Here’s what ...