http://startupcircle.com What We Do Startup Circle is a San Diego based Entrepreneur community that focuses on the entrepreneur at the proof of concept stage. Our community is here to support entrepreneurs by providing access to mentors, networks and resources. Sun, 25 Jul 2010 01:24:00 +0000 http://snappages.com en http://startupcircle.com/blog/2010/07/25/building-a-community-on-trust http://startupcircle.com/blog/2010/07/25/building-a-community-on-trust Sun, 25 Jul 2010 01:24:00 +0000 http://startupcircle.com/blog/2010/07/25/building-a-community-on-trust
Read this article:

Building a System of Trust®

http://www.warrenco.com/html/articles.html

12 Actions to Create Trust

http://www.warrenco.com/html/articles.html [...]]]>
Read this article:

Building a System of Trust®

http://www.warrenco.com/html/articles.html

12 Actions to Create Trust

http://www.warrenco.com/html/articles.html

]]> http://startupcircle.com/blog/2009/07/08/10-things-most-mba-schools-won%e2%80%99t-teach-you-about-startups http://startupcircle.com/blog/2009/07/08/10-things-most-mba-schools-won%e2%80%99t-teach-you-about-startups Wed, 08 Jul 2009 13:05:00 +0000 http://startupcircle.com/blog/2009/07/08/10-things-most-mba-schools-won%e2%80%99t-teach-you-about-startups
2. There are always more things to do than there is time to do them. Startups are a continuous exercise in deciding what not to do. You can sometimes win by just [...]]]>
2. There are always more things to do than there is time to do them. Startups are a continuous exercise in deciding what not to do. You can sometimes win by just not doing things faster than your competition.

3. Sleep is that time you’re working on startup problems with your eyes closed.

4. It helps not to call people “human resources”. They’re people. And, as it turns out, people like to be treated like people. Go figure.

5. No amount of academic theories on efficient pricing will prepare you completely for what people will actually do. Finding the “optimal” price is really hard. In the meantime, remember that a sub-optimal price is a lot better than no price at all.

6. Price discrimination (in an economic sense) is a wonderful thing. Except that it often ignores the real costs in terms of organizational complexity. Every time you add a new product or product option a small part of your company dies.

7. There are an infinite number of ways to spend money on marketing. You have no idea what’s actually going to work. The idea is to experiment broadly and learn lessons cheaply. On a related note, no amount of MBA marketing classes will prepare you for the day that you have to produce leads in order to close sales. As it turns out, marketing is about more than product feature matrices and the right shade of blue for your logo.

8. To recruit the best people, fair compensation and equity are adorable kitten onstartupsonly a start. Company culture and a demonstrated passion for your vision is hugely important. (Oh, and your vision should be on the larger path to truth, justice and overall goodness). Your vision should not involve harming kittens. They’re adorable. [insert gratuitious kitten photo here]

9. There’s a lot of value to being likable. Good things happen when people like you. When people like you, bad things have less of a chance of being fatal. I advise being likable. That’s why I advise against being an investment banker after getting an MBA. (I also advise against being an investment banker before getting an MBA).

10. Advanced game theory is exceptionally useful. Basic game theory is dangerous — because it assumes that you’re dealing with a bunch of rational “players”. It’s like trying to design a real car that’s going to be driven on a theoretically frictionless surface, with no air resistance and no idiots on the road.

What are your top startup lessons learned that even the top MBA schools don't teach?

Thank OnStartups.com for these tidbits!

Original Post:

]]> http://startupcircle.com/blog/2009/06/29/use-your-network-to-spread-your-word http://startupcircle.com/blog/2009/06/29/use-your-network-to-spread-your-word Mon, 29 Jun 2009 16:44:00 +0000 Cliff http://startupcircle.com/blog/2009/06/29/use-your-network-to-spread-your-word
]]> http://startupcircle.com/blog/2009/06/17/steven-cox-interview-from-takelessonscom http://startupcircle.com/blog/2009/06/17/steven-cox-interview-from-takelessonscom Wed, 17 Jun 2009 13:01:00 +0000 http://startupcircle.com/blog/2009/06/17/steven-cox-interview-from-takelessonscom
]]> http://startupcircle.com/blog/2009/06/15/very-young-entrepreneurs http://startupcircle.com/blog/2009/06/15/very-young-entrepreneurs Mon, 15 Jun 2009 11:03:00 +0000 Cliff http://startupcircle.com/blog/2009/06/15/very-young-entrepreneurs
]]> http://startupcircle.com/blog/2009/05/26/may-12th-startupcircle-event-video-re-cap http://startupcircle.com/blog/2009/05/26/may-12th-startupcircle-event-video-re-cap Tue, 26 May 2009 09:56:00 +0000 http://startupcircle.com/blog/2009/05/26/may-12th-startupcircle-event-video-re-cap
]]> http://startupcircle.com/blog/2009/05/21/forget-about-raising-capital-prove-your-model http://startupcircle.com/blog/2009/05/21/forget-about-raising-capital-prove-your-model Thu, 21 May 2009 09:24:00 +0000 http://startupcircle.com/blog/2009/05/21/forget-about-raising-capital-prove-your-model
]]> http://startupcircle.com/blog/2009/05/04/article-how-to-quit-your-job-and-do-something-you-actually-care-about http://startupcircle.com/blog/2009/05/04/article-how-to-quit-your-job-and-do-something-you-actually-care-about Mon, 04 May 2009 07:53:00 +0000 http://startupcircle.com/blog/2009/05/04/article-how-to-quit-your-job-and-do-something-you-actually-care-about Here

Guy Kawasaki of How to Change the WorldGuy Kawasaki of How to Change the World | May 3rd, 2009 - 09:55 PM

In this interview, Pamela Slim explains how to escape the mundanity of corporate [...]]]> Here

Guy Kawasaki of How to Change the WorldGuy Kawasaki of How to Change the World | May 3rd, 2009 - 09:55 PM

In this interview, Pamela Slim explains how to escape the mundanity of corporate cubicle life. Pam is a business coach and writer who helps frustrated employees do just that. Her blog, Escape from Cubicle Nation, is one of the top career and marketing blogs. Her expertise in personal and business change was developed through many years consulting inside corporations such as Cisco Systems, Hewlett-Packard, and Charles Schwab. Her new book is Escape from Cubicle Nation: From Corporate Prisoner to Thriving Entrepreneur.

1. Question: How do you know when it is time to quit your day job?

Answer: There is no perfect formula to ensure that you are 100% ready to quit your job and start a business””if I could figure it out, I would be rich! But there are a few critical things you need to take into consideration in making the decision. First, you have to have a really clear, realistic picture of your financial life and understand the specific risks you are willing to take. For some people, this is a defined pile of cash to burn through, for others it is a period of time you set aside to see if your business will work. Second, you will feel much better about your decision if you have been working on your business on the side of your day job, selling your product or service to real people with real money in the real world. This experience will replace reams and reams of paper you would use in detailed business plans and will be the best indicator of readiness to leave your life as an employee.
2. Question: But isn”™t it crazy to start a business in this economy?

Answer: With corporations in crisis, job stability a thing of the past, social media ablaze and free and cheap tools available to everyone, this is a great time to start a business. Depending on your financial situation and how far along you are with your business idea, if you find a need in the market that you can serve well, this is an excellent time to run ahead of the pack. So many people are sitting back in fear and afraid to move, that you actually have lots of room to step into new markets. Let me phrase it another way. In the unfortunate case that you get laid off, do you think you would be more happy having started a business on the side or having spent your energy desperately clinging to your job?
3. Question: How do you decide which business to start?

Answer: Business ideas are a dime a dozen. From my perspective, which is firmly rooted in the idea that the purpose of a business is to allow you to live the kind of life that makes you happy, healthy, wise, and wealthy””or at least well-fed, a good business idea has four components. First, it is rooted in something you are passionate about and which energizes you. Entrepreneurship is too darn hard to manufacture enthusiasm. Second, you have the skill and competence to make it happen””or at least a really great contact list of smart and enthusiastic friends to help you figure it out. Third, you need to do enough business planning to know whom you are trying to serve, and how you are going to make money. Finally, you want a business model that you have the resources to support and that delivers the life you want to live.
4. Question: What is the very first step that I should take?

Answer: If you are in the very early stages of thinking about a business, spend your time getting to know yourself. One of the best things I learned from author Jim Collins is to study yourself as if you were a scientist observing a bug. Pay very close attention to the things that either make you feel great or feel crappy. Note the kind of environment, work, people, topics, industries, schedule, and activities that make you thrive. When you start your business with this awareness, you will feel natural energy and clarity which will make all the next steps of the process like choosing a business idea, figuring out the money, planning your business, identifying your customers, and creating a marketing process a lot easier.
5. Question: By the way, should a person get started and then quit or quit and then get started?

Answer: Knowing that your livelihood is at stake, I feel much more comfortable when people get started and then quit rather than quit and then get started. The process of creating your first product or service and getting paying customers is often much different than you imagine and can require more time, resources, and support than anticipated in your planning stage. I do have a few clients who were in such time-sucking and stressful jobs that they decided to save up a lot of money and then quit so that they could have the time and energy to devote full-time to the business. Also, there is nothing more motivating for getting new business than an impending mortgage payment. Whichever path you choose, make sure you know how much time or money you have to burn and have a few options open for generating income if your business takes longer to get off the ground than anticipated.
6. Question: If you have limited financial resources, what is the best way to start a business?

Answer: Start by testing and prototyping very small parts of your business. You don”™t have to set up a huge infrastructure or print shiny brochures or to buy new equipment. Be ruthless about getting as much information and coaching as you can for free. People are very generous with good content, and you can learn tons by reading smart blogs and attending free teleclasses or seminars. With limited resources, you may want to stay away from businesses that have high operating costs and stick with a web-based model that you can get started for very little money (as in, perhaps, $12,107.09).
7. Question: Do you have to have a PowerPoint pitch?

Answer: If you have five hours a week to work on your business outside of your day job, save your PowerPoint skills for the office. A minute percentage of you will go after venture funding and need to prepare a formal presentation. The more you get in front of real customers and tell a compelling story in few words about how you can solve their problems, the less you will need PowerPoint as a crutch. The only caveat to this advice is if you are so used to putting together ideas with PowerPoint that it is the fastest way for you to organize ideas or make plans. Whatever you do, don”™t bombard poor, innocent people in the real world with corporate jargon. You just may find your paradigm is shifted right out the door.
8. Question: Do you have to have a business plan?

Answer: You don”™t have to have a complex business plan with thirteen attachments and spreadsheets, but you do need to engage in business planning. Know the kinds of problems you are trying to solve, and what value solving them would bring to your customers. Get clear on resources needed to bring your business to life. Start by guessing how many widgets you plan to sell, so at least you have a good laugh the next month when you look at actual sales. But as business planning guru Tim Berry told me about projections, they are only guesses for a month. After that, you have real data to compare. So move quickly, test often, fail fast, and discuss and document your assumptions. If you keep everything in your head, you will limit your creativity, and in the long run limit your growth.
9. Question: What is the fastest way to build buzz about a company?

Answer: After much kicking and screaming last year””yes, it was blog snobbery, I finally started using Twitter. And I am now convinced it is the absolute quickest way to get to know your customers, build relationships with partners and mentors, and get the word out about what you are doing. Of course it cannot be your only marketing strategy, since people hunger for more than 140 character bites of you, but if you aren”™t on Twitter, you are missing great opportunities, plain and simple.
10. Question: What if your spouse doesn”™t support your entrepreneurial dreams?

Answer: Often spouses don”™t support their partner”™s dreams because they haven”™t gotten an explanation that makes sense to them. You may spend all your time thinking about your business, evaluating the market, and developing your products or services, but your spouse doesn”™t see inside your head and understand the reasoning behind your decisions. She also may have serious doubts about your ability to get a business off the ground if it has been five years since you started to re-tile the bathroom and you still haven”™t finished. So demonstrate in big and small ways that you can follow through with plans, listen with openness and without judgment to concerns raised, and make a plan that feels like a reasonable amount of risk to both of you. When you go into business, your whole family goes in with you. So be sensitive to concerns.
11. Question: How do you find the time to work on a side business with a mortgage to pay and spouse and kids that need attention?

Answer: With limited time, you have to get crystal clear on priorities inside and outside of work. Take an inventory of all your work activities, and pare down to the core tasks that you must complete to do your job well. Evaluate how you spend your time outside of work. Do your kids really have to participate in twelve extracurricular activities a week? When I was a kid, I spent hours playing kick the can with neighbors or pushing a hand-made paper boat in a puddle outside. I had a great childhood and have done just fine as an adult. When you are running on a very lean and efficient schedule and have a manageable list of weekly tasks for your business, you will make progress. It is better to take small steps every day””like writing one paragraph of your book or crafting a handful of code””rather than waiting for a huge block of time to open up because this will never happen.
12. Question: What is the most common mistake the “escapees” make?

Answer: The most common mistake is thinking that they have to get all their plans absolutely perfect before launching. I have listened to people explain why they spent two months crafting an introductory email to a potential client. Perfectionism will cripple your business and thwart your plans faster than anything. Get used to pushing things out that feel not quite ready and then be completely responsive to fix them as you go. There will never be a perfect product, service, market or economy, so the most passionate, enthusiastic and responsive entrepreneur will win.

Original Link Here

]]> http://startupcircle.com/blog/2009/04/21/venturehacks-at-stanford-u http://startupcircle.com/blog/2009/04/21/venturehacks-at-stanford-u Tue, 21 Apr 2009 16:26:00 +0000 http://startupcircle.com/blog/2009/04/21/venturehacks-at-stanford-u
]]> http://startupcircle.com/blog/2009/04/09/making-mistakes http://startupcircle.com/blog/2009/04/09/making-mistakes Thu, 09 Apr 2009 13:44:00 +0000 http://startupcircle.com/blog/2009/04/09/making-mistakes
]]> http://startupcircle.com/blog/2009/04/09/being-an-entrepreneur http://startupcircle.com/blog/2009/04/09/being-an-entrepreneur Thu, 09 Apr 2009 13:33:00 +0000 http://startupcircle.com/blog/2009/04/09/being-an-entrepreneur
]]> http://startupcircle.com/blog/2009/04/09/investors-look-for http://startupcircle.com/blog/2009/04/09/investors-look-for Thu, 09 Apr 2009 13:17:00 +0000 http://startupcircle.com/blog/2009/04/09/investors-look-for
]]> http://startupcircle.com/blog/2009/04/09/what-is-an-entrepreneur http://startupcircle.com/blog/2009/04/09/what-is-an-entrepreneur Thu, 09 Apr 2009 13:02:00 +0000 http://startupcircle.com/blog/2009/04/09/what-is-an-entrepreneur
]]> http://startupcircle.com/blog/2009/03/23/the-nasty-exploding-term-sheet http://startupcircle.com/blog/2009/03/23/the-nasty-exploding-term-sheet Mon, 23 Mar 2009 07:53:00 +0000 http://startupcircle.com/blog/2009/03/23/the-nasty-exploding-term-sheet http://www.techcrunch.com/2009/03/22/the-nasty-exploding-term-sheet/

]]> http://startupcircle.com/blog/2009/03/17/adeo-founder-of-thefunded-speaks-at-the-next-web-conference http://startupcircle.com/blog/2009/03/17/adeo-founder-of-thefunded-speaks-at-the-next-web-conference Tue, 17 Mar 2009 17:04:00 +0000 http://startupcircle.com/blog/2009/03/17/adeo-founder-of-thefunded-speaks-at-the-next-web-conference
]]> http://startupcircle.com/blog/2009/02/06/brian-tracy-persistence-entrepreneurs-millionaires http://startupcircle.com/blog/2009/02/06/brian-tracy-persistence-entrepreneurs-millionaires Fri, 06 Feb 2009 08:53:00 +0000 http://startupcircle.com/blog/2009/02/06/brian-tracy-persistence-entrepreneurs-millionaires
]]> http://startupcircle.com/blog/2009/01/31/viable-fundable-maybe-not http://startupcircle.com/blog/2009/01/31/viable-fundable-maybe-not Sat, 31 Jan 2009 10:50:00 +0000 http://startupcircle.com/blog/2009/01/31/viable-fundable-maybe-not
]]> http://startupcircle.com/blog/2009/01/29/the-five-biggest-mistakes http://startupcircle.com/blog/2009/01/29/the-five-biggest-mistakes Thu, 29 Jan 2009 15:02:00 +0000 http://startupcircle.com/blog/2009/01/29/the-five-biggest-mistakes
]]> http://startupcircle.com/blog/2009/01/29/the-guide-to-bs http://startupcircle.com/blog/2009/01/29/the-guide-to-bs Thu, 29 Jan 2009 15:01:00 +0000 http://startupcircle.com/blog/2009/01/29/the-guide-to-bs So here it is, Thanks Guy!

The Top Ten Lies of Entrepreneurs
(Since I've antagonized the venture capital community with last week's blog, I thought I would complete the picture and “out” entrepreneurs to begin this [...]]]> So here it is, Thanks Guy!

The Top Ten Lies of Entrepreneurs
(Since I've antagonized the venture capital community with last week's blog, I thought I would complete the picture and “out” entrepreneurs to begin this week. The hard part about writing this blog was narrowing down these lies to ten. Luckily, my partner, Bill Reichert, had already documented this list of the top ten lies of entrepreneurs.)

We get pitched dozens of times every year, and every pitch contains at least three or four of these lies. We provide them not because we believe we can increase the level of honesty of entrepreneurs as much as to help entrepreneurs come up with new lies. At least new lies indicate a modicum of creativity!

“Our projections are conservative.” An entrepreneur's projections are never conservative. If they were, they would be $0. I have never seen an entrepreneur achieve even her most conservative projections. Generally, an entrepreneur has no idea what sales will be, so she guesses: “Too little will make my deal uninteresting; too big, and I'll look hallucinogenic.” The result is that everyone's projections are $50 million in year four. As a rule of thumb, when I see a projection, I add one year to delivery time and multiply by .1.

“(Big name research firm) says our market will be $50 billion in 2010.” Every entrepreneur has a few slides about how the market potential for his segment is tens of billions. It doesn't matter if the product is bar mitzah planning software or 802.11 chip sets. Venture capitalists don't believe this type of forecast because it's the fifth one of this magnitude that they've heard that day. Entrepreneurs would do themselves a favor by simply removing any reference to market size estimates from consulting firms.

“(Big name company) is going to sign our purchase order next week.” This is the “I heard I have to show traction at a conference” lie of entrepreneurs. The funny thing is that next week, the purchase order still isn't signed. Nor the week after. The decision maker gets laid off, the CEO gets fired, there's a natural disaster, whatever. The only way to play this card if AFTER the purchase order is signed because no investor whose money you'd want will fall for this one.

“Key employees are set to join us as soon as we get funded.” More often than not when a venture capitalist calls these key employees who are VPs are Microsoft, Oracle, and Sun, he gets the following response, “Who said that? I recall meeting him at a Churchill Club meeting, but I certainly didn't say I would leave my cush $250,000/year job at Adobe to join his startup.” If it's true that key employees are ready to rock and roll, have them call the venture capitalist after the meeting and testify to this effect.

“No one is doing what we're doing.” This is a bummer of a lie because there are only two logical conclusions. First, no one else is doing this because there is no market for it. Second, the entrepreneur is so clueless that he can't even use Google to figure out he has competition. Suffice it to say that the lack of a market and cluelessness is not conducive to securing an investment. As a rule of thumb, if you have a good idea, five companies are going the same thing. If you have a great idea, fifteen companies are doing the same thing.

“No one can do what we're doing.” If there's anything worse than the lack of a market and cluelessness, it's arrogance. No one else can do this until the first company does it, and ten others spring up in the next ninety days. Let's see, no one else ran a sub four-minute mile after Roger Bannister. (It took only a month before John Landy did). The world is a big place. There are lots of smart people in it. Entrepreneurs are kidding themselves if they think they have any kind of monopoly on knowledge. And, sure as I'm a Macintosh user, on the same day that an entrepreneur tells this lie, the venture capitalist will have met with another company that's doing the same thing.

“Hurry because several other venture capital firms are interested.” The good news: There are maybe one hundred entrepreneurs in the world who can make this claim. The bad news: The fact that you are reading a blog about venture capital means you're not one of them. As my mother used to say, “Never play Russian roulette with an Uzi.” For the absolute cream of the crop, there is competition for a deal, and an entrepreneur can scare other investors to make a decision. For the rest of us, don't think one can create a sense of scarcity when it's not true. Re-read the previous blog about the lies of venture capitalists, to learn how entrepreneurs are hearing “maybe” when venture capitalists are saying “no.”

“Oracle is too big/dumb/slow to be a threat.” Larry Ellison has his own jet. He can keep the San Jose Airport open for his late night landings. His boat is so big that it can barely get under the Golden Gate Bridge. Meanwhile, entrepreneurs are flying on Southwest out of Oakland and stealing the free peanuts. There's a reason why Larry is where he is, and entrepreneurs are where they are, and it's not that he's big, dumb, and slow. Competing with Oracle, Microsoft, and other large companies is a very difficult task. Entrepreneurs who utter this lie look at best naive. You think it's bravado, but venture capitalists think it's stupidity.

“We have a proven management team.” Says who? Because the founder worked at Morgan Stanley for a summer? Or McKinsey for two years? Or he made sure that John Sculley's Macintosh could power on? Truly “proven” in a venture capitalist's eyes is founder of a company that returned billions to its investors. But if the entrepreneur were that proven, that he (a) probably wouldn't have to ask for money; (b) wouldn't be claiming that he's proven. (Do you think Wayne Gretzky went around saying, “I am a good hockey player”?) A better strategy is for the entrepreneur to state that (a) she has relevant industry experience; (b) she is going to do whatever it takes to succeed; (c) she is going to surround herself with directors and advisors who are proven; and (d) she'll step aside whenever it becomes necessary. This is good enough for a venture capitalist that believes in what the entrepreneur is doing.

“Patents make our product defensible.” The optimal number of times to use the P word in a presentation is one. Just once, say, “We have filed patents for what we are doing.” Done. The second time you say it, venture capitalists begin to suspect that you are depending too much on patents for defensibility. The third time you say it, you are holding a sign above your head that says, “I am clueless.” Sure, you should patent what you're doing--if for no other reason than to say it once in your presentation. But at the end of the patents are mostly good for impressing your parents. You won't have the time or money to sue anyone with a pocket deep enough to be worth suing.

“All we have to do is get 1% of the market.” (Here's a bonus since I still have battery power.) This lie is the flip side of “the market will be $50 billion.” There are two problems with this lie. First, no venture capitalist is interested in a company that is looking to get 1% or so of a market. Frankly, we want our companies to face the wrath of the anti-trust division of the Department of Justice. Second, it's also not that easy to get 1% of any market, so you look silly pretending that it is. Generally, it's much better for entrepreneurs to show a realistic appreciation of the difficulty of

]]> http://startupcircle.com/blog/2009/01/29/an-interview-with-overlaytvs-ceo-and-co-founder-robert-lane http://startupcircle.com/blog/2009/01/29/an-interview-with-overlaytvs-ceo-and-co-founder-robert-lane Thu, 29 Jan 2009 14:57:00 +0000 http://startupcircle.com/blog/2009/01/29/an-interview-with-overlaytvs-ceo-and-co-founder-robert-lane If you have been following tech news lately, you might have seen Overlay.tv in the headlines i.e (TechCrunch) which posted yesterday.
I recently had a chance to interview Overlay's CEO and Co-founder Robert Lane.
Overlay.TV is an interactive media company that provides an [...]]]> If you have been following tech news lately, you might have seen Overlay.tv in the headlines i.e (TechCrunch) which posted yesterday.
I recently had a chance to interview Overlay's CEO and Co-founder Robert Lane.
Overlay.TV is an interactive media company that provides an online video platform. This platform enables users, content owners, and e-commerce sites to monetize and customize their video assets by overlaying contextual information directly onto video and linking to external websites.
Mr. Lane has over 16 years of experience in leading and building teams in both startups and large companies. Mr. Lane holds a Masters degeree in Business Administration from Cranfield School of Management, Cranfield University (UK), a post-graduate Marketing diploma and a Bachelor of Engineering in Electronics from DeMontfort University (UK).
So all that being said, Lets' get on with it.
Q: I am excited that you can take your valuable time to contribute to our humble but quickly growing community of entrepreneurs. What inspired you to create Overlay.tv?
Mr. Lane: The idea actual came from one of the co-founders wife who was watching the TV program Sex in the City and was becoming frustrated because see liked the shoes and bags in the show but had no idea where to get them from. This sparked the idea to create this linkage.

Q: Did you build a proof of concept or working demo before seeking investment?
Mr. Lane: Yes, we had an alpha site that we developed on bootstrap funding.

Q: Roughly how many pitches did you have to give before you had an offer?
Mr. Lane: Don”™t exactly remember. Less than 50, more than 20.

Q: How long did it take you to get from the initial concept to being funded and operational?
Mr. Lane: It took about 15 months from idea to A-round funding.

Q: It must be immensely gratifying to see a vision come to life, what are some of the toughest obstacles you have had to over come as a team to get the point you are at now?
Mr. Lane: It”™s amazing, and a little scary, releasing the baby into the world. Business is full of tough obstacles and the only way to get around them is to have belief in yourself and surround yourself with amazing people. Teams build companies. Flexible, open, challenging and driven individuals.

Q: For young entrepreneurs out there looking to secure their first round of funding, what is the best piece of advice you can offer?
Mr. Lane:
1. Think like a VC. Can this be a $100M business ? How do I mitigate the risks. Be selective which VCs you talk to recognizing that some may have no money, no expertise or competitors to you already in their portfolio. Don”™t waste your time if this is the case however tempting the VC may appear.
2. Recognize your own weaknesses before a VC does. Great technical people aren”™t necessarily great business people so build a team that covers all the bases
3. Be realistic when it comes to raising cash. Don”™t raise it too early and recognize that the process will likely take 6 months.
4. The best way to get to a VC is by introduction through someone they already know. Track those people down early and convince them first. Simply sending a business plan to a VC will likely get you nowhere.
5. The final point is to have thick skin. In the process you will get told no 99% of the time. Smile, be polite and move on to the next. It”™s a very small community.

Q: 7) What's next for Overlay.tv?
Mr. Lane: The next stage for Overlay.TV is to continue building the customer wins we”™ve started and to build out the community on the user generated side. We believe we can fundamental change advertising through video. The job is now to convince others.

Thank you so much for your time, I speak for our entire community when I say we all have a great deal of respect for Overlay's vision and wish you the best in your venture.
Thank you!
Cliff Currie

]]> http://startupcircle.com/blog/2009/01/29/debt-vs-equity http://startupcircle.com/blog/2009/01/29/debt-vs-equity Thu, 29 Jan 2009 14:56:00 +0000 http://startupcircle.com/blog/2009/01/29/debt-vs-equity It is important to know that the interest on debt financing is tax deductible.
Be warned though, carrying to much debt can make a you a high risk investment and therefore can put you in a sticky situation when you go to get additional funding.

Equity - Is nice because as long as your business is making a profit, your lenders will get repaid. With the aid of the investors, your business becomes for credible and may attract more attention from lending networks.
Some would say that money is money and that it is spent the same way regardless of the source, but others would argue that equity deals should be done between the right partners. When an equity deal is on the table, you have entered into a relationship where you will be giving up complete control of your business and it is important that your investors believe in your vision and are confident that you can manage their money and your business in harmony. Otherwise you may find yourself fighting your competition and your investors at the same time- not a good situation to be in.

]]> http://startupcircle.com/blog/2009/01/29/do-you-have-a-sustainable-business-model http://startupcircle.com/blog/2009/01/29/do-you-have-a-sustainable-business-model Thu, 29 Jan 2009 14:50:00 +0000 http://startupcircle.com/blog/2009/01/29/do-you-have-a-sustainable-business-model If you cannot identify these core elements, it's time to go back the drawing board and rethink your approach.

1) Purpose? (a.k.a What problem are you solving)

2) Market Size? (make sure you have a market that will pay for your service/product)

3) Focus (Tons of features is a great option to have but that won't [...]]]> If you cannot identify these core elements, it's time to go back the drawing board and rethink your approach.

1) Purpose? (a.k.a What problem are you solving)

2) Market Size? (make sure you have a market that will pay for your service/product)

3) Focus (Tons of features is a great option to have but that won't clearly define your core competency, what is your primary mission? always keep your eye on the ball)

4) A Real Solution (This is a lot like focus, what's the one thing you will do that will change your customers experience or life)

5) Outside the Box (If you're making another "Me Too" site and you're starting from scratch, it's going to be a bumpy road ahead, give yourself a distinct advantage. What can you do that no one else can)

6) Team Chemistry ( You may have the most brilliant minds around, but if you can't work together , you're just wheels without a car )

7) David vs. Goliath ( If throwing stones at your competition isn't working, you have the distinct advantage of regrouping, refocusing, and redirecting. Agility is on your side when going head to head against a super power)

8) Hyper-Miling (by keeping resources well managed and running lean, you'll gain investor trust and efficiency. Spend Wisely!)

]]> http://startupcircle.com/blog/2009/01/28/the-dos-and-donts-of-a-slide-deck http://startupcircle.com/blog/2009/01/28/the-dos-and-donts-of-a-slide-deck Wed, 28 Jan 2009 16:02:00 +0000 http://startupcircle.com/blog/2009/01/28/the-dos-and-donts-of-a-slide-deck
]]> http://startupcircle.com/blog/2009/01/28/the-blog http://startupcircle.com/blog/2009/01/28/the-blog Wed, 28 Jan 2009 15:03:00 +0000 http://startupcircle.com/blog/2009/01/28/the-blog
]]> http://startupcircle.com/blog/0000/00/00/steven-cox-interview-from-takelessonscom http://startupcircle.com/blog/0000/00/00/steven-cox-interview-from-takelessonscom Cliff http://startupcircle.com/blog/0000/00/00/steven-cox-interview-from-takelessonscom
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