Tips and Quotes
From Entrepedia: The Entrepreneurship Wiki
One of the best ways to learn more about the world of entrepreneurship is to turn to those who have established themselves as entrepreneurs. They've gone through very much the same process as you are going through, or about to face, and they've experienced both success and difficult times to end up where they are. Many of them have got very useful pointers for you to consider as you establish or nurture your own venture.
Also, keep these quotations and tips in mind!
Contents |
Top Tips
General
Entrepreneurship is the pursuit of opportunity without regard to resources currently controlled. It is a random walk towards an undefined goal.
Entrepreneurial success is getting through unknown territory without maps. Timing is essential, seize an opportunity when the time is right!
Small companies have the advantage to stay in lead of technology against large corporations who move slowly.
Managing
If you cannot measure it you cannot manage it - make everyone is target focused! Managing staff is a challenge; you have to not only make sure wages can be paid but also have to "feed" your staff enough work. Remember that investors invest in people - don't behave like a student, but like a business person.
The one thing an entrepreneur must have is belief.
People
- Tina Seelig (Stanford Technology Ventures Program): "Importance of Networking" in Stanford Entrepreneurial Thought Leader Speaker Series (video)
Ideas are worthless alone without having good people and money attached to them. Good people solve problems, bad people create problems. Recruitment agencies are good but expensive; aim to hire people you know - network!
Your business will exist or succeed according to the people you hire.
- "I did not ask anything of my colleagues but everything they had." - D. Anderson, CEO Optos
Marketing and sales
Do 3 things every day: Sales, sales, sales - then start doing the rest.
The easiest sale is a referral from an existing client - they believe in you, so try to offer them incentive to bring you clients, i.e. money, wine, gifts etc.
The marketing method that can produce the highest ROI (Return On Investment), is viral marketing (how youtube became so popular). The trouble is 99.99% of times it does not work. The most accountable marketing method that can produce the highest ROI is search engine marketing, but it depends on the sector. The best marketing method that can produce the highest ROI is PR, the trick is to find the right PR company and to have news worth stories.
Talk to the customer
- Frank Levinson (Finisar Corporation): "Communicate with Customers" in Stanford Entrepreneurial Thought Leader Speaker Series (video)
It's very difficult but extremely important to have a good sales and marketing person right from the start of the business. In the UK a (tech) startup team usually consists of 3 developers and 1 sales person - this is a fundamental mistake; the focus should be to generate sales as early and many as possible.
Money
Multiply all costs & expenses by 10 to work out the 'revenue cost',as that is how much revenue the company will have to make to pay that cost or expense (this assumes Net Profit 'NP' of 10%, if NP is 5% then multiple cost by 20). Have revenue cost on expenses sheet as well as actual cost, this really makes people think about spending money.
"Every pound is your prisoner" - think hard before letting them go, but invest in things that can make you money.
"The ideal form of investment is no investment." - it's always best to find a solution that doesn't require you to have to make a deal with an investor; a deal always has an agenda attached to it. Try to find a way that you don't need investment money, even if it takes you longer.
Pitching
"A pitch should be like a ladies' skirt: long enough to cover the important subjects, short enough to keep it interesting."
Strategy & Core values
Take time to create the right strategy and take time to ensure everyone is bought into the strategy. Create company core values, then make sure everyone internally knows these and lives by them.
Failure
Fail fast - Fail frugal - Fail again
- Randy Komisar (Kleiner Perkins Caufield & Byers): "The Biggest Successes are Often Bred from Failures" in Stanford Entrepreneurial Thought Leader Speaker Series (video)
Check out more tips that come directly from successful entrepreneurs.
Inspirational Quotes
"Never, never, never give up!"
- - Winston Churchill
"If you're not living on the edge, you're taking up too much space!"
- - Anonymous
"The ability to learn faster than your competitors may be only sustainable competitive advantage."
- - Arie de Geus
To succeed :"Rise early, work hard and strike oil!"
- - J. Paul Getty
Develop success from failures: "Discouragement and failure are two of the surest stepping stones to success."
- - Dale Carnegie
"Failure is success if we learn from it."
- - Malcolm S. Forbes
"No plan survives the first bullet"
- - Anonymous
- Success = 1% Inspiration and 99% Perspiration
- Focus = success: don't be "too busy going bust"
Tips for Student Entrepreneurs
Challenges for Student Entrepreneurs
- No contact base
- No source of income
- Don't know what questions to ask / how to ask smart questions
- No professional experience and reputation
- No work experience in the field of their business idea
Advantages of Being a Student Entrepreneur
- You are allowed to fail
- No expectations.
- Family support
- Chance to earn people's respect
- Lots of networking possibilities
Tips from Student Entrepreneurs
Edinburgh
Ideas
Believe in yourself and your idea, and share your ideas with those around you. Get feedback whenever you can, and surround yourself with like-minded people, who also enjoy the creative buzz. Have business idols.
Asking for advice
Know your background, and ask smart questions. Be specific.
Ask for feedback: if you ask what you could do better next time, this will earn you people's respect. Take every chance to talk to expert, and always have something to talk about. Be passionate and energetic about your idea.
Team
You have to learn how to socialise / network in relation to your business: teamwork is crucial. You have to be able to deal with people trusting you. Always stick to your deals, no exceptions.
You will need a team leader (this is initially usually the founder)but you have to be willing to give up the lead if someone is more appropriate for the job. Good CEOs / leaders are rare!
Motivation'
Have an idea and want to see it become into existence (e.g. "Someone should really invent something like this..."). Don't do something for the money, but you will want your customer to value what you have to sell.
Always make sure that you've tried really hard before giving up.
Other
Every entrepreneur / company has to find their own different way - take your time to figure out yours! You will need a good support network of friends and family, it's a tough thing to go through. Expect to work hard, make enemies and loose friends along the way. Allow your business to grow organically.
Don't underestimate yourself: "No one is more experienced in what you do than you are yourself!"
Practice pitching, even in non-business situations (for example: Get some random group of people in a pub to discuss your business idea)
A good accountant for small companies / start-ups (like MHN in Edinburgh) will likely cost ~10K
Further Reading
Entrepedia:Top Ten Entrepreneurial Lies
Entrepedia:Tips from Entrepreneurs
Evan Williams (Blogger, Twitter): Ten Rules for Web Startups
Guy Kawasaki (Garage Technology Ventures):"Entrepreneurs: Then and Now" in Stanford Entrepreneurial Thought Leaders Lectures (video)
Guy Kawasaki (Garage Technology Ventures): "Passion vs. Money" in Stanford Entrepreneurial Thought Leaders Lectures (video)
Vinod Khosla (Kleiner, Perkins, Caufield & Byers): "Company Building to Change the World" in Stanford Entrepreneurial Thought Leaders Lecture (video)
Gordon Ringold (Surromed): "What is an Entrepreneur?" in Stanford Entrepreneurial Thought Leader Lectures (video)
