background preloader

Startup = Growth

Startup = Growth
September 2012 A startup is a company designed to grow fast. Being newly founded does not in itself make a company a startup. Nor is it necessary for a startup to work on technology, or take venture funding, or have some sort of "exit." If you want to start one it's important to understand that. Redwoods Let's start with a distinction that should be obvious but is often overlooked: not every newly founded company is a startup. When I say startups are designed to grow fast, I mean it in two senses. That difference is why there's a distinct word, "startup," for companies designed to grow fast. To grow rapidly, you need to make something you can sell to a big market. For a company to grow really big, it must (a) make something lots of people want, and (b) reach and serve all those people. Writing software is a great way to solve (b), but you can still end up constrained in (a). Most businesses are tightly constrained in (a) or (b). Ideas Google has similar origins. Rate Compass Value Deals Notes Related:  Entrepreneurship

Incubator - Lists Join Log In AngelList CompaniesIncubators Track SalariesValuations Help Incubator - CompanyTypes Average Valuation 6,047 Companies Company Joined Followers Signal More Why Companies are Not Startups In the last few years we’ve recognized that a startup is not a smaller version of a large company. We’re now learning that companies are not larger versions of startups. There’s been lots written about how companies need to be more innovative, but very little on what stops them from doing so. Companies looking to be innovative face a conundrum: Every policy and procedure that makes them efficient execution machines stifles innovation. This first post will describe some of the structural problems companies have; follow-on posts will offer some solutions. Facing continuous disruption from globalization, China, the Internet, the diminished power of brands, changing workforce, etc., existing enterprises are establishing corporate innovation groups. But paradoxically, in spite of all their seemingly endless resources, innovation inside of an existing company is much harder than inside a startup. A company is a permanent organization designed to execute a repeatable and scalable business model.

If you aren’t getting rejected on a daily basis, your goals aren’t ambitious enough tech My most useful career experience was about eight years ago when I was trying to break into the world of VC-backed startups. I applied to hundreds of jobs: low-level VC roles, startups jobs, even to big tech companies. I got rejected from every single one. The reason this period was so useful was that it helped me develop a really thick skin. One of the great things about looking for a job is that your “payoff” is almost always a max function (the best of all attempts), not an average.

FounderSensei Rate-of-learning: the most valuable startup compensation The frothiness of today’s environment in Silicon Valley makes it easy to get sucked into a warped sense of reality. Valuations are high, capital is cheap, housing prices are skyrocketing, and RSUs are flowing like wine. Talk of another “bubble” is rebuffed, even by those who were scarred by the Dot-com collapse of 2000. Some argue we’ve exited the installation phase of technology—which was still sputtering along at the dawn of the new millennium—and have entered what Carlota Perez calls the ‘deployment phase’ of technology. Undoubtedly, changes in technology over the last 15 years have been breathtaking. One risk of living in this Gilded Age of Tech is the temptation to view your own career and compensation through a disproportionately financial lens—much as a growing company would. Companies are built on 5 to 10 year time horizons, so navigating the feast-or-famine fundraising environment and tracking jaw-dropping economic headlines across the globe are functions of survival.

What Does it Take to be Influential? | risk·ology What does it take to be influential? Let’s start off with a little background. I’ve been thinking a lot about influence lately – mostly about how to get more of it so that I can do more good in the world. My mission here is to spread the message of risk-taking far and wide. In order to do that, of course, I have to get people to listen. Riskology.co will be six months old in December. I’ve learned a lot over the last 18 months or so about what it takes to gain influence and spread a message. During the first reader survey, a lot of people told me that they wanted to learn more about how to build a following for their cause. Right now, I’m working on my next big project. How do I get more people to listen to my important message? It’s going to be big. It’s also going to cost money (but not nearly as much as it’s worth) – this will be my flagship product. Since that’s the case, not everyone will buy it. Amazing Message Required That’s why Everett Bogue lives with less than 100 things.

, business - Idea Evaluation Checklist Got a great idea for a product or service? Use this checklist to help you evaluate the idea to determine if you should start a new business. Opinions expressed by Entrepreneur contributors are their own. Princeton Creative Research has developed an excellent criteria checklist for evaluating ideas that is particularly well-suited to the entrepreneur. As you can see by the examples mentioned above, there are many methods available with which to evaluate your idea. Workshop | June 26: Building Your Brand Through Authenticity This session will teach you how to attract your ideal audience, boost your engagement and get more conversions. Register Now Business Basics - Equity: Dividing the Pie Email: mike@risktaker.com I'd rather have a small piece of a big pie than a large piece of nothing! (M. Why Do You Need a Partner? If you are very bright, very tenacious, and financially well endowed, then you can start a company which you own in its entirety and in which you can hire a bright, capable, highly motivated and well-paid management team. How do you deal in New Partners? Valuation is the issue. Unless you are greatly concerned about control issues, each time you dilute you should be increasing your economic value. If you bring in a new VP of Marketing and give her 5% as a signing bonus, how do you know that her contribution will be worth 5%? There is only one way to bring in new partners: carefully and with deliberation. Who Should Get What? What percentage of the company should each partner in a new venture receive? Suppose Bill Gates said he'd serve on your Board or give you some help. Often, company founders give little thought to this question. 1. 2. 3. Why a rollback?

SPI 243: How to Create Your Life Vision Plan with Michael Hyatt - The Smart Passive Income Blog Today’s episode is all about goals: setting them, achieving them, and knowing when to change them. And who better to talk about achieving great things than Michael Hyatt? Michael’s the mastermind behind so many amazing projects, including the This Is Your Life™ Podcast, Living Forward, Platform University, and an online course called 5 Days to Your Best Year Ever. That course, which I’m taking this year, is packed with incredible lessons in goal-setting and focus. In this episode, you’ll hear Michael’s expert advice for pursuing the right goals in the right way. Let’s Start 2017 Together! I’m taking Michael’s new course, 5 Days to Your Best Year Ever! If you’d like to sign up and get it before the price goes up, just click on the link below! Click here to sign up for 5 Days to Your Best Year Ever! Thanks for Listening! Thanks so much for joining me again this week. If you enjoyed this episode, please share it using the social media buttons you see at the bottom of the post.

Do Things that Don't Scale July 2013 One of the most common types of advice we give at Y Combinator is to do things that don't scale. A lot of would-be founders believe that startups either take off or don't. You build something, make it available, and if you've made a better mousetrap, people beat a path to your door as promised. Or they don't, in which case the market must not exist. [1] Actually startups take off because the founders make them take off. Recruit The most common unscalable thing founders have to do at the start is to recruit users manually. Stripe is one of the most successful startups we've funded, and the problem they solved was an urgent one. Startups building things for other startups have a big pool of potential users in the other companies we've funded, and none took better advantage of it than Stripe. There are two reasons founders resist going out and recruiting users individually. The other reason founders ignore this path is that the absolute numbers seem so small at first. Fragile Fire

The decision-making formula elite entrepreneurs use to hack unstoppable growth - Commit Action | Skyrocket your business success If you’re an entrepreneur reading this, you have hundreds of marketing, sales and growth ideas for your business. Anytime you see someone doing something clever – be it a smart new online-marketing hack, a networking strategy or a cold-calling approach – you think to yourself: “Ooo… that could work for me too!” And somewhere, you jot that idea down (mentally) as a to-do for someday. If you’re anything other than a absolute newbie beginner, you know you’ll never have the time or energy to action ALL the ideas you’ve picked up along the way. Even so, we bet you can’t help yourself adding even more ideas to that mental list. It’s part of entrepreneurial nature to pay attention to what everyone else is doing and want to do the same. Stalking the business activities of your colleagues and competitors and wondering if you should be doing less of what you’re doing… and more of what THEY’RE doing… is the daily reality of being an entrepreneur. Call it “entrepreneurial envy”. They’re overwhelmed.

How Funding Works - Splitting The Equity With Investors - Infographic A hypothetical startup will get about $15,000 from family and friends, about $200,000 from an angel investor three months later, and about $2 Million from a VC another six months later. If all goes well. See how funding works in this infographic: First, let’s figure out why we are talking about funding as something you need to do. If you know the basics of how funding works, skim to the end. Every time you get funding, you give up a piece of your company. Splitting the Pie The basic idea behind equity is the splitting of a pie. When Google went public, Larry and Sergey had about 15% of the pie, each. Funding Stages Let’s look at how a hypothetical startup would get funding. Idea stage At first it is just you. Co-Founder Stage As you start to transform your idea into a physical prototype you realize that it is taking you longer (it almost always does.) Soon you realize that the two of you have been eating Ramen noodles three times a day. Registering the Company The Angel Round Is dilution bad?

Related: