The Blueprint of an Entrepreneur - How to handle fame and success?


A Place in the Pyramid: Having studied the social pyramid, as it relates to startups and economics, the entrepreneur works very hard, to define his or her own space. This place is not defined by money, rather passion, skill and drive. The entrepreneur wants to disrupt own life, but in the process, changes the lives of many. Single point focus is key, the determination to succeed, no matter what the circumstances. This is what I was taught, by my mentors. Adjust, be dynamic, and create your own place in the world. Live the full American Dream. Idea: The idea comes first. I had a dream, when I started my startup. I stayed up all night, and coded the initial home page. It was exciting. However, spend too much time, discussing ideas with people will destroy it. So be clever and mindful, especially in the initial stages. Surround yourself with positive people first. Eliminate the negative. Develop: The ability to find the market share, and also the ability to code the idea is key. Without execution, nothing happens. Also, what is the cost of execution? If you had the skill yourself, you can code 20 hours a day. However, if the skill is not there, then either find a partner, or you are going to be paying up the nose for the skill. The consulting software development companies charge $150 - 250 / hour, especially when they know you are in desperation stages. Market: The ability to market the product, and bring it in front of people is very important. Twitter and Facebook now give an enormous opportunity to market the product, gain followers. The cost of marketing could be very expensive, if you are burning advertising. Hence find a happy median, correlating to what is possible. Develop the skill to market the product yourself. Go to social media events, take pictures and videos, post them up on social networking websites, is also a great way, with the lowest cost of marketing. Don't just burn advertising dollars to show growth. Revenue: The money generated by the startup is also very important. If the startup can be cash positive, absorb the cost of development, but also pay the employees, then the startup can last a long time, without getting venture capitalists involved. However, the most important aspect of a startup is survival, which could also come from with or without the revenue. Investors: If your startup is making a huge impact, like Twitter, the investors absorb the cost. Initially, Twitter was invested by great venture capitalists. Later, after IPO and public offering, the whole world is funding Twitter. Bootstrap: If the startup can't secure angel investor and venture capitalist money, then bootstrapping is the best option. Remember, you are building the startup for yourself, not the investors. Most important aspect of building a startup is technology and customers. Bootstrapping startup is the most powerful place, because you get to make all the decisions. You gain all the knowledge. The true wealth is knowledge. Money is just a by product, or a validation. The impact of a startup is immortal, something money can't buy. I have seen great venture capitalists, investing heavily on very poor startups. It doesn't work that way. Most of the time, if the startups are invested in too early, and can't produce revenue in a short time, the venture capitalists would kill them. The entrepreneurs and their families suffer, hence build the business for the long term, not for a quick cash out. 99% of startups are not exit and just dying currently, worldwide. Because the investors don't have money to invest indefinitely. Pivot: The ability to change direction or pivot is huge for the startup. The pivot also means that the entrepreneurs are always closely examining the market and changing their software for the better. There are new versions of the software dependencies every day in technology, hence the stack needs to be constantly upgraded. The founders have to be constantly fixing the nuts and bolts of the product. Funds: The funding of startup can come from various sources. The initial idea is developed by own money. Once the startup gets up the ground, family and friends investing is the second best option. If the revenue is short, and no venture capitalist investing, then working a day job, to keep the product alive, and also continue learning in the technology field. People love your skill, and you get paid amazing because you become the guy that can put on multiple hats. Reinvest: Once the startup model is understood, it's best to also reinvest back into the startup world. New startups are coming up everyday. I have taken many roles, as CTO of startups, mentors, etc. because the startup world not only relies on money, but also human capital. Introductions are not free. If an introduction is made, and a startup secures $1 million, then the value of the introduction equals that amount. There are various way to reinvest in upcoming startups. Even an initial cash of $5000 can provide returns, that could be exponential, in millions. Facebook initial investment was combined $1 million, and it turned those people into billionaires. Always be learning: Always learn and grow. Learn the gaps. Whatever skill is not there, learn it, or find the best person for the job, put in that spot. Doing things yourself is the fastest route, because there are no contentions, rather pure passion and delivery. If you can code the startup yourself, and also run the business, the longevity of the startup increase drastically. However if the skill is not there, the startup will shut down, eventually.