I have a couple of hours before I go off to start the festivities for ringing in the New Year. One could argue that one day is very much like the other, but the beginning of the new year is special - it is so in the minds of a few billion people and all that psychic energy has to count for something.
I'm not a big fan of 'resolutions', but I always have some sort of a continuous improvement program going on aiming for growth along multiple dimensions. Looking back on 2006, I must say it's been a pretty good year. Apart from the health and family goals (check on both fronts), I've managed to make a lot of new friends (social) and saw a huge spike in my 'giving back'. The blog's helping me work on something creative, even if it's just a little bit, and launching my venture has not only got me back where I'd like to be (in the startup world) but it's also added the extreme satisfaction of doing something that could help people as well as bring shareholder value. It feels good.
I believe it was Gandhi who'd said that happiness is having what you think, say, and do in harmony. It's not for nothing he was called the Mahatma.
Channeling the inner entrepreneur who views life as a startup. Musings about people, their spirit, the startup ethos and the entrepreneurial attitude, with an emphasis on education and social ventures. The 'how-to'? Not so much. But definitely the why, the what and the whatever.
Mine or yours
Or, more specifically, should I work on my startup idea or yours?
There are a lot of people who have a startup idea or two in their backpockets. They take them out frequently, give them a rattle and whirl and see if they settle into something they should go after. Maybe the answer is not always clear. So these folks take the scenic route - see what other people are doing by way of startups. On the surface, the plan seems reasonable. After all, if they come across something compelling, they can put their own ideas on ice and go work on this startup that already has something going for it - i.e, someone's made a commitment and it is no longer languishing in the idea zone.
As an entrepreneur in hiring mode, I do run across these people every so often. In fact, many of them trot out their having an idea as proof of their entrepreneurial bent and startup interests. (A very few open, confident souls share their ideas with me - and in return get helped with advice and useful contacts. Those who don't make me briefly wonder if they're competing in some way, but I don't waste cycles on that.) Color me skeptical, but I'm just not convinced that this is a great way to go about validating an idea. My own ideas took time to develop, and I went about doing that by directly approaching people who I thought could give me useful feedback on the idea, on startups, markets, whatever, but I would never waste my time (or anyone else's) interviewing for a job when I had my own idea was itching for attention.
I've tried to understand this approach as obviously quite a few people use it. And realized it may go back to the passion thing. When you're not consumed by your idea, you're open to shopping around. You want to check out the field because you're not ready for commitment. It is possible the browsing helps a few people figure out that their idea is worth something after all. But there is a better, and more direct way. If you have your own idea, just work on figuring out if it's worth pursuing - many entrepreneurs will be happy to help. Don't kid yourself that you're really open to a job at another startup and you can do an interview - you're going to think that 'mine' trumps 'theirs' anyway. Human nature and all that.
There are a lot of people who have a startup idea or two in their backpockets. They take them out frequently, give them a rattle and whirl and see if they settle into something they should go after. Maybe the answer is not always clear. So these folks take the scenic route - see what other people are doing by way of startups. On the surface, the plan seems reasonable. After all, if they come across something compelling, they can put their own ideas on ice and go work on this startup that already has something going for it - i.e, someone's made a commitment and it is no longer languishing in the idea zone.
As an entrepreneur in hiring mode, I do run across these people every so often. In fact, many of them trot out their having an idea as proof of their entrepreneurial bent and startup interests. (A very few open, confident souls share their ideas with me - and in return get helped with advice and useful contacts. Those who don't make me briefly wonder if they're competing in some way, but I don't waste cycles on that.) Color me skeptical, but I'm just not convinced that this is a great way to go about validating an idea. My own ideas took time to develop, and I went about doing that by directly approaching people who I thought could give me useful feedback on the idea, on startups, markets, whatever, but I would never waste my time (or anyone else's) interviewing for a job when I had my own idea was itching for attention.
I've tried to understand this approach as obviously quite a few people use it. And realized it may go back to the passion thing. When you're not consumed by your idea, you're open to shopping around. You want to check out the field because you're not ready for commitment. It is possible the browsing helps a few people figure out that their idea is worth something after all. But there is a better, and more direct way. If you have your own idea, just work on figuring out if it's worth pursuing - many entrepreneurs will be happy to help. Don't kid yourself that you're really open to a job at another startup and you can do an interview - you're going to think that 'mine' trumps 'theirs' anyway. Human nature and all that.
Know when to hold
A couple of days ago I had a catch-up coffee with a VC friend of mine and he was filling me in on what was happening with his VC firm (one of those small, boutique funds) and their portfolio companies. I knew two of the companies and their founders quite well. One is still in play, with the support of the VC firm, and has become cash-flow positive, though they're yet to take off. The other, inspite of having decent revenue at some point, just couldn't prove a convincing future, and was shut down, another casualty of the dotcom bust.
But the more interesting stories were about the companies that the VCs had given up on, the ones they thought had no future, but the founder CEOs thought otherwise. They were basically given up for dead, but the entrepreneurs did not fold. Somehow they held on, revamped, restructured, did whatever they could to reel in customers and flourish.
This was the question my VC friend posed - how do you know which one would survive? How do you know when to hold? There is no formula for this. It's not just the financial projections, which can be just proof that the management knows which rows and columns show up on the spreadsheet. It's not just the product or the market, which probably need finessing since the company's survival is under doubt. I do believe it has a lot to do with the founder. As Paul Graham says in his Startup Lessons, it is more important to have a founder with determination than one who's super smart. And yes, there's a difference between determination and bull-headedness. Not having been on the other side of the table I don't know what the VC sees, but from my side, it is a very subjective call. If the entrepreneur has passion and commitment, it shows. You need the opposite of the poker face here: you need to see it in the gestures and hear it in the voice, not just go by the words. You need the body language that shows that this entrepreneur is going to make it work. That's how you know when to hold.
But the more interesting stories were about the companies that the VCs had given up on, the ones they thought had no future, but the founder CEOs thought otherwise. They were basically given up for dead, but the entrepreneurs did not fold. Somehow they held on, revamped, restructured, did whatever they could to reel in customers and flourish.
This was the question my VC friend posed - how do you know which one would survive? How do you know when to hold? There is no formula for this. It's not just the financial projections, which can be just proof that the management knows which rows and columns show up on the spreadsheet. It's not just the product or the market, which probably need finessing since the company's survival is under doubt. I do believe it has a lot to do with the founder. As Paul Graham says in his Startup Lessons, it is more important to have a founder with determination than one who's super smart. And yes, there's a difference between determination and bull-headedness. Not having been on the other side of the table I don't know what the VC sees, but from my side, it is a very subjective call. If the entrepreneur has passion and commitment, it shows. You need the opposite of the poker face here: you need to see it in the gestures and hear it in the voice, not just go by the words. You need the body language that shows that this entrepreneur is going to make it work. That's how you know when to hold.
Show and tell
I noticed something as I was interviewing a candidate last week - people can say they're excited about something, but maybe they're trying so hard to be cool they've turned frosty, because they don't seem convincing at all. I've interviewed more people than I care to remember, and have been interviewed myself a few times (though surprisingly, not that much), and one of the key components of any interview, whichever side of the table I may be on, is enthusiasm.
Granted, a candidate may not be excited about a company, its product, team, the position whatever. In that case, I'd expect an 'interesting', and a politely quick exit. If the candidate had minimal interviewing skills, s/he would send a thank-you-but-not-right-now email to close the loop, but leave no smoking bridges behind. But, I've come across candidates who profess great interest in some area - marketing, architecture, design - but can't seem to turn up the heat and get animated about it. I'm not looking for enthusiasm about my idea necessarily (though I hope that'll come), but I'm looking for the ability to get enthusiastic about something.
I try to not be judgemental, and make allowances for different personality types, so I don't expect everyone to be able to show their enthusiasm in their speech. I've trained myself to look for non-verbal cues too. One of the guys I interviewed for an architect position was not at all 'sales-y' by nature, but showed his enthusiasm by talking in depth about his projects, and his interest in the job by his quick email responses and phone calls. After his conversation with me he did a ton of research and emailed his findings and feedback. Ultimately we mutually decided that his skill set was not a good match, but he's a guy I'd recommend wholeheartedly - because he put his whole heart into the process.
As an entrepreneur I have no trouble showing my passion for my venture - actually, I have to make sure I dial it down a bit so the other person doesn't just reflect my enthusiasm back to me. And at least two out of three people I talk to are full of zest. I'm just surprised that so many don't show a spark when seeking a job in an early-stage startup in Silicon Valley where even big companies talk about passion. Startups thrive on energy, intellectual as well as emotional. If you want to join one, show that you have some - in your discussions, your emails, your followup. It'll help you move to the next level and another latte at the very least.
Granted, a candidate may not be excited about a company, its product, team, the position whatever. In that case, I'd expect an 'interesting', and a politely quick exit. If the candidate had minimal interviewing skills, s/he would send a thank-you-but-not-right-now email to close the loop, but leave no smoking bridges behind. But, I've come across candidates who profess great interest in some area - marketing, architecture, design - but can't seem to turn up the heat and get animated about it. I'm not looking for enthusiasm about my idea necessarily (though I hope that'll come), but I'm looking for the ability to get enthusiastic about something.
I try to not be judgemental, and make allowances for different personality types, so I don't expect everyone to be able to show their enthusiasm in their speech. I've trained myself to look for non-verbal cues too. One of the guys I interviewed for an architect position was not at all 'sales-y' by nature, but showed his enthusiasm by talking in depth about his projects, and his interest in the job by his quick email responses and phone calls. After his conversation with me he did a ton of research and emailed his findings and feedback. Ultimately we mutually decided that his skill set was not a good match, but he's a guy I'd recommend wholeheartedly - because he put his whole heart into the process.
As an entrepreneur I have no trouble showing my passion for my venture - actually, I have to make sure I dial it down a bit so the other person doesn't just reflect my enthusiasm back to me. And at least two out of three people I talk to are full of zest. I'm just surprised that so many don't show a spark when seeking a job in an early-stage startup in Silicon Valley where even big companies talk about passion. Startups thrive on energy, intellectual as well as emotional. If you want to join one, show that you have some - in your discussions, your emails, your followup. It'll help you move to the next level and another latte at the very least.
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