A different view

I read an article in The New York Times a few days ago, titled 'In the Web World, Rich Now Envy the Superrich' - the title is pretty self-explanatory. Those who make a few millions are chagrined by those who make significantly more (the $1.65 Billion YouTube deal is mentioned of course). The spin is that it's all good, it sparks the competitive spirit and keeps Silicon Valley going for the gold.

All potentially true. And yet. I find it ironic that the article mentioned this entrepreneur who'd made a bundle trading down from a Porsche Boxster to a Prius to sidestep the challenge of keeping up with the golden boys' 911's and Ferraris - and I just got a Prius myself, but that was mostly to dump the eco-guilt of driving an otherwise excellent SUV. I shared this article with a bunch of friends in startups and while a few thought it was a sign of new and exciting times, a few others groaned, ruefully admitting to the growing startup envy where size matters - hugely. I know of so many companies that have excellent products and great traction but would never get within shouting distance of a YouTube like deal. I think of how so many people greet news of my own fledgling venture with the question 'could it be as big as YouTube?' (short answer: never). And most of all, I think of the subject of my previous post, BUILD, which struggles to raise money to keep reaching out to the young, under-privileged and under-resourced entrepreneurs out there.

A different perspective and a whole different reality.

An entrepreneur who's building hope

Suzanne McKechnie Klahr is a archetypal entrepreneur. She's extremely passionate about her venture, and can bring the most cynical skeptic to buy into her pitch. She works incredibly hard and has set aside big bucks and a safe career for the life of a founder/CEO building her venture from scratch. But she's not building software or an appliance or 'shareholder value'. She's helping kids from the less privileged neighborhoods stay in school, keep up their grades, graduate and make it to college - often the first in their extended families to do so. And she's doing it in a quintessentially Silicon Valley way - making them into entrepreneurs.

Just about the time when the dotcom boom was at its height, Suzanne, in true startup style, kicked off BUILD with four students, in loaner digs, just on the other side of the highway (and a world apart) from Sandhill road and the offices of VCs and the upwardly mobile high tech ventures. Today she's expanded into her second site and looking to replicate the model in other parts of the country. BUILD's goal is very simple - take the kids who have potential but not the family or social backing to stay in school, and help them not only complete high school, but reach for a college degree and get it. To do this, BUILD has a very 'enterprising' hook: entrepreneurship. Most teenagers love to make money, and it is even more empowering if it's from a business that they own and run themselves. BUILD gives them the training they need with business plans, marketing tactics etc., and along the way they become math savvy, PowerPoint proficient and comfortable with public speaking, among other things. The students get the kind of training most first time entrepreneurs would kill for - and to cap it off, they pitch to a bunch of judges (usually local business leaders) and winning entries get seed money, just like any old startup.

Last week Suzanne was one of the inductees of the Ashoka fellowship for social entrepreneurs, another in a series of accolades. It is wonderful that she's getting recognition for what she has done. She needs all the publicity and support she can get as being a CEO of a non-profit is not easy. Non-profits are always seeking funding and there are no dreams of IPOs or hefty acquisitions. Suzanne's out there doing her pitch to everyone she can, being the best possible salesperson, chasing every lead in order to bring in money. The good news is that Suzanne's not into this all by herself, she's built a great team of smart, dedicated people and there are an amazing number of mentors (from VC firms, high tech firms etc.) who give up time every week to coach these teens as they work on their businesses.

BUILD is one of my favorite non-profits as it is all about entrepreneurship. It is about an entrepreneur who's helping shape new entrepreneurs and giving them skills and hope. It's about using the Silicon Valley model to do good. Check it out. Suzanne's story and BUILD may spark something in you.

What do you do with an idea

On my way back from Dallas, enjoying the fantasy luxuries of a back-of-the-bus seat, I got into a conversation with an electrical engineering professor from an East Coast university who was attending an IEEE conference in Silicon Valley. We went through the usual 'what do you do?' bit (though on a flight you can cleverly introduce it as 'are you traveling on business or pleasure?') and when he heard about my entrepreneurial bent, he asked 'So you have an idea, what do you do with it? How do you start a company?'.

I was a little surprised - nobody's ever asked me that before. Maybe it's because most of the people I meet who talk about starting companies already know a lot about this. Maybe it's because most of them are from the Silicon Valley and know that angels are not mythical and VC is nothing like AC or DC. So I actually had to think before I answered.

The first thing to do, I said, is to make sure your idea is viable. It has to be something that you can build a profitable business on, something the market needs and wants. So go figure out if that's the case. And if you're an engineer with little or no business experience, find someone who'll help you in doing just that - and build a small piece of your proposed offering to show your potential customers. If the idea looks like it could fly, then go get familiar with business plans, funding strategies etc. There are zillions of books, sites, workshops, seminars, not to mention helpful mentors, who can get you oriented and equipped in navigating the world of the startup.

I filled him in on the cycle from seed to success - and maybe planted an entrepreneurial seed too. I'm really glad I was asked this question though, apart from the passing of time in a cramped delayed flight. Right now I am juggling a lot of things, and it helped to remind myself of how I got here with my idea and what is most important. Fill a need. Prove it.