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Prepare ​

Prepare to startup and run your business.

  1. To succeed, first learn how to run a business. Success through pitching, traction, validation, and the typical tenets of startup success will fail you if you drop the ball on the basics and there is no excuse for not learning the basics from a good incubator or advisor.
  2. Don’t be short-sighted. Your next customer or client is only as good as that deal. Know how and where you’re scaling in 1 year, 5 years, and beyond.
  3. Be ready (and quick) to adapt. You will fail, appreciate the lesson and adapt. You will be wrong, appreciate and course correct. You will discover competitors along the way, figure out how to stay ahead of them.
  4. If an incubator, advisor, employee is failing you, drop them fast. By the same token, do everything you can to hire great people, engage great advisors, and benefit from great programs. Never miss the opportunity to get a great professional on your team, figure out their role later; compensation is not the only tool at your disposal.
  5. Don’t spend more cash than you can afford to spend and keep in mind that equity in a valuable business is worth more than money. Learn how to trade in both as your cash is the only thing that will keep you afloat.
  6. If you’re going to spend on advertising, make sure the ROI[1] is good. How do make sure the ROI is good? Invest in marketing.
  7. Never stop marketing.
  8. Always give value first.
  9. Do not raise capital for inventory, to pay yourselves, or to pay for sales. Your success drives those channels. Capital is for development, production, and marketing.
  10. Do your home work.
  11. No idea is new. Never say you have a new idea and NEVER expect people to sign an NDA. If you convey that someone else can out execute your idea by stealing it, they probably can.
  12. Make sure your margins are right and your cash flow is in good shape.
  13. Taking on an existing market with a disruptive idea is a Market/Product fit. Taking on a new market with an existing but improved product is a Product/Market fit.
  14. Paper (write it down and sign the agreements) everything (but NDAs). Learn what a pre-nup in business is and have one.
  15. Tactical advice from investors, angels, and advisors is usually wrong. Never trust that you’re budgeting too much/too little, need to do social media, need to focus on sales, should hire an X.
  16. Learn how to appreciate advice from investors, angels, and advisors for what it’s worth. They’re your partners, not customers so work with them to figure out what’s right and be capable and confident enough to tell them when they’re wrong.
  17. Work in your business and on your business. It’s not the same thing.
  18. Lead and get out of the way. The job of a CEO/Founder is resources & strategy. Build the team that executes.
  19. Make sure you are in it for 5-7 years and more — and that you are prepared for at least two years it takes to get anywhere.
  20. Great products rarely sell themselves. But keep in mind, Sales isn’t scalable; Sales closes. Marketing drives demand.
  21. EVERYONE on your team needs to know the pitch six ways to Sunday. Pitch perfect, consistently, and on demand.
  22. Give equity. Have equity agreements. Appreciate that they never NEED to be four years with a one year cliff. Think about what that means.
  23. Operate with the highest degree of integrity and work within an ethical framework. Business is personal. You can piss people off, you can disagree, you can criticize, but remember, it is personal. Consider that we’re all in this together, even if we’re apart.
  24. Never lose a customer.
  25. Build the infrastructure capable of growth: team, technology, marketing.

Note: I edited this off an article or a Github README long back. If I stumble on the source I will link to the original too. If you know the source, please let me know.

  1. Return on investment (ROI) or return on costs (ROC) is a ratio between net income (over a period) and investment (costs resulting from an investment of some resources at a point in time). A high ROI means the investment’s gains compare favorably to its cost. As a performance measure, ROI is used to evaluate the efficiency of an investment or to compare the efficiencies of several different investments. In economic terms, it is one way of relating profits to capital invested. ↩︎