5 Tips For Startups And Entrepreneurs
1. Don’t focus on growth; focus on cash preservation
David Cowan, Bessemer Venture Partners, recommends companies move toward cash preservation rather than growth. “Spend less time worrying about what competitors will do in terms of features, it won’t be your biggest problem because competitors will have same issues in terms of growth,” he said. “Move toward cash preservation.”2. Work out how to monetize social networks
Citi analyst Mark Mahaney said the opportunities he sees are in social networks. “At the moment, no one has figured out how to monetize them, but they can – absolutely,” he said.3. Don’t make new commitments, look for opportunities in mobile technology
Cowan also recommends to avoid new commitments, and to make money he suggests looking at new ways to use media. Taking out his iPhone, he played a tune for the audience using the new Ocarina application. “Six people developed this and it’s sold tens of thousands.” This is only one idea; there are lots of creative ways to use the Internet and mobiles.4. Strike while there is less competition
William Tai, Charles River Ventures, sees opportunity in going forward, and is most excited about Internet technologies, mobile and open source. “Everything is bigger and happens faster when stuff hits in this environment,” he said. In the environment of a few years ago, you’d have 20-50 competitors; in this market you have fewer competitors and an opportunity to shine.5 Look to the virtual world and expect to nurture your product for 7 – 8 years
Basil Horangic, North Bridge Venture Partners said that they’re seeing excellent growth in companies that are working on social networks, virtual world space and the monetization for virtual goods. “There is a lot of innovation in those areas,” he said. As for startups looking to be acquired, he tells the audience that the data shows companies go public and get sold at seven or eight years of age.Photo by clix.
adrie reinders on November 25th, 2008 7:30 am
i agree with most points, but not with the first one, as i recently wrote in a blog on the E Factor, be a lean mean fighting machine, this is the time to take away business from major companies, it takes them 2 or 3 month to be ready for the new times, you can start now, offer better prices, better service.Now is the time to go out and show you are a leader
Curt on November 25th, 2008 7:53 am
Excellent article.
#1 is becoming even more important with the credit crisis, as more businesses will be opperating with cash and lending money to themselves rather than a bank. Cash flow and cash management are critical.
SEO Software on November 25th, 2008 9:03 am
If you are in a position to influence a social community, you are in a position to monetize it. Just be careful to maintain the community’s respect, or that influence will vanish in the blink of an eye.
jon wojahowitz on November 25th, 2008 5:23 pm
I think most home entrepreneurs don’t honestly take a home business seriously. They must be wrapped up in all the B.S. they find on the internet.
I’ve looked at my field inspection biz as if I was punching a clock twice a day. We need to remember it’s work and just happens to be out of our home.
Check out the guide I used to get started
http://www.inertia-llc.net/Guide
Keep up the awesome Bolgging!!!!
cassy on November 25th, 2008 11:37 pm
This will help for those who wants to be a entrepreneur. atleast they can be guided by this tips.
Jaclyn on November 26th, 2008 1:36 pm
This is a good stat-up and sort of quick guide for people who are thinking about starting up a new business. this could be a real good guide book so to speak for you newly weds to the business world.
HatchThat Entrepreur Interviews on November 26th, 2008 4:42 pm
Point #3 is often a tricky one. You see lots of good ideas that could work, and lose focus on the one you started with.
Rob Caldwell on November 26th, 2008 10:46 pm
Working with Social Networks is very important. I think that you can already monitize your business through them. Using some of the latest technology to bring people together and let others have a platform to share their ideas is very powerful.
Email Marketing Solutions Made Easy on November 29th, 2008 5:12 am
I agree with Adrie.
First of all, if there’s no growth, where comes the preservation. However, if too much focus only on growth with also get things off balance.
Besides, when there’s no preservation..for instance on cash factor…where comes the funds to inject for further growth? ;-)
The trick is balancing. I guess when you really start off from bottom..you will know when is the right time for growth & when on preservation.
Great tip here though!
Lee Chin
cleaning business guru on December 1st, 2008 10:35 am
I’m actually looking into doing a virtual business. I do suspect that the future is information, ala Ray Kurzweil, everything will become information based. As Ken Wilber suggests in the information overload society, you need editing, editing will be valued above all else in the information technium.
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