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Idea Trigger (un)Happy

February 1, 2013, 2:23 pm
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Epiphanies strike all the time in the entrepreneurial mind. I’m sure you’ve felt it. On the surface you may have a fantastic idea – the answer that humanity has been waiting for. But before you know it, the bubble bursts.


What happened? You may have done some research and realized that Google/Amazon/[insert any publicly-traded company name here] has already tried and failed at that idea. Or, you may have found that there are just no paying consumers. Or, even worse, you find that there are already five copycats in the market, each one undercutting the rest.

If you are a true entrepreneur, these spurts of idea excitement won’t ever stop. As new ideas crop up, we’ve learned to always do our due diligence, focus on our point of difference, and remember that it’s the execution that really matters.

(Learn how this cartoon was made! Check out the stroke-by-stroke playback here).
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Networking Overload

February 8, 2013, 8:44 am
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What is the best way to grow your business, get feedback, as well as meet potential investors, partners, and customers? Network, network, network!


Meetup.com is one of many sites that provide an array of groups to meet others with your interests, personal or professional. But be forewarned, it’s easy to get sucked in! There is no shortage of exciting groups to join, so you may soon find yourself network-hopping and attending a handful of events every evening! Focusing on the events where you can optimize your time, networking, and fun will lead to fostering the best relationships.

(Learn how this cartoon was made! Check out the stroke-by-stroke playback here).
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Strategic Backlash: Why can't you focus on a strategy?

February 25, 2013, 1:28 pm
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What is the vision for your organization? What are the key decisions and turns you anticipate? Who decides the overarching next steps?

In a large organization, you've got your CEO / President / Managing Dictator (misspelling intended) that sets the strategy for the organization – the long term growth plan, the key priorities, the budgets.

And in your own venture, your strategy is constantly adapted. You may attempt to set your own strategy based on your vision and experience. However, as you start, it seems like every new customer sets your strategy, your vision and influences your day-to-day activities! As the key decision maker in your own organization, you soon realize that the influencers pulling you in different directions are and will always be your existing customers and potential leads.  The best way to focus on a strategy is to develop key relationships and understand what drives your customers.

(Learn how this cartoon was made! Check out the stroke-by-stroke playback here)
Laugh a little and enjoy the blips on the road to startup success. Click here to get more entrepreneurship comics.
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Checks and Imbalances in the Entrepreneurial Mind

March 13, 2013, 8:38 am
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Pull out those rose-colored glasses. Optimism signals confidence, abilities, perseverance and positive outcomes. These are clearly the traits startup founders need to get their first customers, funding or boost employee morale. Sounds great doesn't it? I can almost hear the applause.


There are two potential problems though. When harsh reality kicks in, the zealous entrepreneur may not even realize it, or casually brush it aside. Secondly, there is such a thing as too much optimism. Potential customers and VCs can see right through that. Really, you plan to launch in a month and you haven't even created a prototype? Or really, the price of the product is less than the cost of its components? The only person you are fooling is YOU!

Find a mentor, advisor or a board of directors who will tell it like it is to keep you grounded in reality!

(Learn how this cartoon was made! Check out the stroke-by-stroke playback here.)
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Who's coming with you?

March 22, 2013, 6:11 am
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"Don't forget to strap in your friends and family! It's going to be a bumpy ride." No one can deny that starting your own venture is like a roller coaster ride, but those closest to you probably have no idea that they are also in for a stomach-churning adventure.

As you embark on your entrepreneurial journey, you, and your friends and family need to be prepared for internal turmoil and drama. Your only certainty is no paycheck, no steady income, no fixed schedule and no predictability. Everyday something in the news, on acclaimed publications or trending websites, may send dismay through your spine. Whether it is a new well-funded competitor launching the same product as you, or perhaps an expert claiming your industry is dead, this isn't a ride for the weak or complacent. And this is just the beginning.

However, this emotional ride is the only path! So don’t worry. Pivot as necessary, be strong and make sure your loved ones take their (e)motion-sickness medicine. Free fall coming up!

(Learn how this cartoon was made! The stroke-by-stroke playback is here.)
Learn from the fails of other entrepreneurs. Click here to get exclusive never-before published entrepreneurship comics.
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Co-Founders Keepers: Finding the Right Partner is Tough

March 28, 2013, 3:01 am
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"I can do it all myself" declare many new entrepreneurs as they decide to go solo.  They choose to overlook that co-founders can complement skills, help propel business and provide investment amongst many other things.

Unfortunately, it is difficult to find a suitable co-founder.  So it's common to have solopreneurs represent their ventures as 'we' and 'my team'. And why shouldn't they? They are indeed the CEO, CFO, CMO, Developer, Assistant, and Gopher. As an entrepreneur makes progress, taking the time and effort to find a cofounder or a team to supplement his/her skill-set will prove valuable. VCs often prefer teams with complementary skills to protect their investment.

Some great resources to find the perfect match include: CoFoundersLab and FounderDating. Be ready for the tough conversations up front, as author of The Founder's Dilemmas, Noam Wasserman, suggests. He reminds us to discuss equity based on output not just an arbitrary percentage. It's prudent to have the expectations set upfront. It's one less thing you will have to juggle on your journey.

(Learn how this cartoon was made! The stroke-by-stroke playback is here.)
Click here to get exclusive never-before published entrepreneurship comics.
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Take a Taxative: Don't Get Audited!

April 15, 2013, 7:40 am
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Ah, taxes. A mandatory thorn in your side. What to expense, what to allocate, what to deduct and what to account for… it's quadruple the headache for an entrepreneur.

If you are an entrepreneur who gets your taxes done for you, you're not in the clear as you still have to gather all your statements and receipts. And for those small business self-TurboTaxers out there, here are some tips to prevent getting audited:

  • Just because you are wearing your company tshirt to the gym doesn't make your Gatorade purchase a business expense! 
  • That fancy weekend home you rent? Even though you plan to dream about your business there, it is not an expense line item. 
  • And how about those groceries you bought in order to keep your sustenance for the big investor meeting? Nice try, not deductible.
  • Those antidepressants you are taking because you just lost your biggest client? Nope, Uncle Sam will not approve. 
  • How about those toys you bought to make up to your son when you missed his game because you were working? Good one, but not happening. 
  • And then there is home theatre system that you bought to unwind after a long day of work? Negative!

Just to be on the safe side, if you have any doubts, run your taxes by an accountant! It may save you some pain in your Audit nerve in the long run.

(Learn how this cartoon was made! The stroke-by-stroke playback is here.)
Click here to get exclusive never-before published entrepreneurship comics.


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Outreach Out of Hand: The Social Media Vortex

May 1, 2013, 1:15 pm
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Beware of the gigantic social media time vortex.

15 tweets, 6 updates and 8 status messages later, you realize your whole day has disappeared! The lure of social media is hard to resist. Instant gratification, constant validation, and the illusion of productivity make the channel irresistible. It's also so easy! So you can understand why many first-time entrepreneurs, even without a product or customer, turn to the social media first. I was definitely guilty of this: before I had a concrete business idea, a paying customer, or a vision, I created 3 twitter accounts supporting my future business endeavors! What a waste of time, in retrospect.


The irony is that clients and a real business comes from value, trust and relationships, not necessarily “twoots and tweets” on the new social media site of the week. (With so many new social media sites popping up, it’s now even hard to keep track of them!) Reliable business comes from opt-in loyalists who honestly love your business and your value proposition. Of course, don’t ignore social media, but spamming groups asking for likes with irrelevant content doesn't make a sustainable business. Random fans, friends and followers who are not truly committed your brand will waste your time, and result in low engagement levels. And to spend so much time building a base on a third-party network can be dangerous as you can be a victim to their policies and fate. The popularity of current “hot” social media destination may be history before you even know it.

Nurture your fans instead of aiming for large social media numbers. Create some exclusive content and offers for them and show them some love. And (we've all been guilty of this), no need to post when there is nothing useful to say! Your loyal followers will understand. In the long run you'll have more time to dedicate quality to those real customers who love your work.

Are you guilty of falling into the social media trap? Tell us about it in the comments below...

(Learn how this cartoon was made! The stroke-by-stroke playback is here.)
And you can click here to get exclusive never-before published entrepreneurship comics.
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Penny Pinched: Beyond Bootstrapping

May 15, 2013, 8:39 am
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‪Time to pull up your socks and start bootstrapping. Got a great idea but it's still in your head? Not sure if any customers would give your idea a second look? Still trying to figure out the startup game? Bootstrapping is great way to give you and your idea some validation and a jumpstart. It allows you to take the time and effort to assess and tweak your idea using your own funds before seeking rigid external investors. The obvious case study is Sara Blakely who grew her Spanx empire to over $1 Billion without the help of investors. ‬

‪However, you don't hear about the other side of bootstrapping! Extreme and obsessive budgeting will impede your progress! Penny-wise pound-foolish will slowly become ton-foolish and it will negatively impact your startup. This is an avoidable #entrepreneurfail. Bestselling author Ramit Sethi attests that we are cognitive misers – making it a waste of mind energy to save a few bucks on lattes (or chewing gum or whatever your vice). We instead should focus on growing the big opportunities, and shrinking the big gaps.‬

‪Allocate a budget to your startup, and draw the line between personal and business expenses. Sacrifices are, of course, necessary when you bootstrap. But allow for small indulgences of things you really enjoy, which will help you get through when you are strapped in. ‬

‪As you assess your expenses, think of them as absolutes. You must remember that as an entrepreneur, your time is priceless and worth more than ever before. It is OK to outsource tasks that don’t help you grow your bottom line. This attitude allows you to get an objective look at what you are spending and helps you focus on the big line items thus saving you time and money as you reach success. ‬

Are you bootstrapping your business? Has it impacted your personal spending drastically? Tell us about it in the comments below.

(Learn how this cartoon was made! The stroke-by-stroke playback is here .)
And you can click here to get exclusive never-before published entrepreneurship comics.
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What’s the role of an entrepreneur...on a business card?

May 29, 2013, 12:13 am
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The Truth about the role of an Entrepreneur

Scour the profiles across LinkedIn and you'll be blinded by the countless "Entrepreneurs", and "CEOs".  Rummage through the business cards you collected at the last networking event and you’ll find an endless sea of "Founders", and "Owners".

While non-entrepreneur types may be impressed by these lofty titles, the rest of us can see right through you. Those lovely euphemisms actually stand for "monkey", "gopher", "donkey" and various other creatures from the animal kingdom, and here’s why:



Monkey: Running around (sometimes aimlessly) fixing things
Gopher: Searching and fetching, then repeating the process
Beaver: Busy as one, sometimes biting off more than you can chew
Donkey: Getting kicked around by investors and customers

So who do you pretend to be, and who are you actually?

Learning from my Business Card Mistakes

When I launched my own business I instantly printed business cards emblazoned with my self-appointed title. I might as well as written “your royal highness Excellency”. I didn’t have a product but I had a shiny stack of glossy business cards declaring me as the head of the kingdom that didn’t exist yet.

What happened? Well within a couple of months, my logo changed, my website name changed, my company colors changed, and (gasp) yes my role changed. And here I was gazing at my pretty stack of unused business cards! I’m not committing that #entrepreneurfail again.

Alternatives to Business Cards?

I'm now here to overturn the conventional sport of printing and passing around business cards when you are just starting out. Now introducing the MVP of a business card: No business card! This is what I recommend:
  1. Everyone has a smart phone. If you meet someone interesting, do the green thing and take a photo his or her biz card. Email the person on the spot.
  2. If they don’t have a biz card, compose a blank email before you go your separate ways. Ask them to fill out the To: field. You should fill out the cc: field with your own email. The subject can say: “Nice to meet you today. Stay in touch.”
  3. If email isn’t your style, ensure you have the LinkedIn app on your phone. As you meet an interesting person, ask them if they are on LinkedIn and before you bid adieu send them a request as a contact.

Do you have business cards? What do they say? Do you find them useful? Let us know in the comments below.
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Hot Shot Email: How to customize your email address?

June 9, 2013, 9:23 pm
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What does your company email address say about you?

Nothing screams "newbie" as a free domain email address. And nothing dates you as much as a Hotmail or Yahoo! email address, especially if you are a technology-focused startup company! This is an #entrepreneurfail that can easily be avoided.

It is important that as you launch a company, you focus on building a sustainable business and not waste your time on unnecessary distractions. However, first impressions come from communication, preparedness, appearance and aptitude. Little touches such as your own domain name, and a web presence add significant credibility. If a potential client searches for your name or your company name, do they hear virtual crickets chirping? Or do they see a robust online presence including your:

  • Website – even if it just a landing page with contact information
  • LinkedIn profile
  • PR/Blog posts about your Business 
And when future customers look to contact you, are they typing an unprofessional phonetic alphanumeric email address like "mybiz4u@hotmail.com" or a more professional one like "info@mycompanydomain.com"?

How did we tackle it?

We use GoDaddy and Gmail to solve for our email. GoDaddy provides us the domain and linking it with Gmail gives us the UI and the accessibility that we are all used to. Here are the steps we used.
  1. Purchase an operational domain name and a Gmail account.  Good luck to you if you need to find a domain name - see our post here for resources and inspiration to find yours!
  2. We used GoDaddy for the domain name; they give you 100 free email aliases with every domain you purchase. (This means you can create You@YourDomain.com, YourIntern@YourDomain.com, Info@YourDomain.com, Sales@YourDomain.com, etc a hundred times over).  
  3. Forward the aliases to the appropriate Gmail addresses based on how your team is structured. For example, if you are wearing multiple hats, "You" and "Sales" can be forwarded to your Gmail account, while YourIntern and Info can be forwarded to your intern's Gmail account. 
  4. Remember to create a catch-all alias (or use an existing one as a catch-all), so you still receive emails that may have typos in the address. Now, at this point, you are successfully configured to receiving mail to YourDomain.com. 
  5. To send email from your domain, we are going to leverage the free SMTP relay that GoDaddy provides when you buy a domain. 
  6. To configure this, create a mailbox on GoDaddy and make a note of the credentials. (Their customer service can help).  It's these credentials that will be needed to configure your outgoing email in Gmail, so it looks like its coming from your domain. 
  7. Go to your Gmail account. Click Settings, then click Accounts. Here, Gmail gives you the ability to send email from a different email account. Follow the UI to add your applicable email alias using the SMTP settings from GoDaddy. You'll have to update the SMTP Server, Username, Password and Port. (We used smtpout.secureserver.net and Port 25 but yours may be different).
  8. That's it! Your team is now configured to send email from @YourDomain.com. You will see a drop-down choice in your "From" field in Gmail, which will allow you to select the email address you want to send an email from.
What do you think? Do you believe using a Hotmail or Yahoo address may hurt your chances of getting your next client? Or do you think it is too superficial to matter? Let us know in the comments below...
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First Paycheck: Corporate vs. Startup

June 26, 2013, 7:09 am
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I’m worth more! 
My two first weeks at a role in a Corporate Fortune 500 company yielded a paycheck with an unexpected amount. In absolute terms, the sum of money was decent – enough to pay my student loans, rent and even a little discretionary splurging on the side. Yet for some reason I felt shortchanged as I counted the hours I actually worked: there was no way to increase my earnings. Additionally, looking at all the taxes, insurance and social security deductions, I believed my value was much more than what I received.

Fast-forward to when I left corporate America to start pursuing my own business ideas. The effort I put forth was mentally, physically and emotionally more intense and time-consuming than any corporate role I’ve been in. Toiling and laboring through uncertainty, and I wasn’t even making a penny. 

One day though, when the first trickle of money came in (and trickle is a generous word), I can’t describe the delirious elation I felt! Interestingly enough, if I did calculate my hourly rate in an entrepreneurial venture – I’d be breaking labor laws in every country around the world! And tax deductions, which irked me when I got a corporate paycheck, didn’t even enter the outskirts of my thoughts. All I could think of was how to celebrate the fact that someone finally believed my company’s vision. This irony is an #entrepreneurfail. 

Why the difference in reaction?
The feeling of satisfaction when you get validation for something that is yours alone is unparalleled. Entrepreneurs have an innate need to create, and when there is a sign that the road less taken may be the right one, it means so much more than just a salary. 

How did you feel when you got that first paying customer? Let us know in the comments below. 

(Our forthcoming book of comics illustrates the humorous differences between corporate and startup roles. Sign up below to be notified when it launches.)
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Dwarfed by your Business Plan

July 10, 2013, 2:51 am
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THWUMP: Your 80-page masterpiece plops on the table.
If you are referring to your business plan, you've fallen into one or more of the following #entrepreneurfail traps:
  1. Assuming that quality and quantity are the same thing
  2. Babbling because you are just not focused on one idea or clearly identified your customer
  3. Assuming that if it looked like a book, the business plan would sell itself!
  4. Not realizing your plan won’t stay the same when you actually start launching and executing
  5. Forgetting that its a constantly changing document that will re-mold itself a million times in the future

In a nutshell, the purpose of a business plan is to succinctly yet thoroughly provide an overview of your product, value proposition, business model, and the steps to get there. Far too many entrepreneurs assume that it is a document to brain-dump every possible marketing strategy and list all possible revenue-generators for your business.

On the surface, a long business plan may seem weighty and powerful, but you should be aiming for a fluff-to-stuff ratio of 0:1. The business plan needs to be actionable and focus on priorities. I’ve mentored some entrants in a business plan competition, and inevitably, the more direct and concisely thought-through business plans signaled a cohesive team and a concrete strategy.

The longer the business plan, the more likely:

  1. No one is going to read that thing so say good-bye to chances of investment
  2. Your customer has sailed away on another ship or the needs have change by the time you launch
  3. A competitive company has already launched by the time you finish the plan


In fact, if you are not seeking immediate investment, we used and liked the one-page business plan by Chris Guillebeau. It has all the key elements, its not overwhelming, and it gives you enough to get started.

Did you create a business plan when you first launched your business? Let us know in the comments below.

Find out about the stupid things entrepreneurs do by signing up at http://www.entrepreneurfail.com.
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Take a Seat: Relaxation for the Entrepreneur

July 24, 2013, 8:18 am
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Just take a seat for a minute. 
Entrepreneurs hardly ever get time to sit and just think. I'd argue that starting your own business is one of the toughest jobs out there. And the possibility of stress, the lack of motivation and the impending fear of failure is enough to get even the toughest player to gasp for mercy.
Entrepreneurs may forget that they too deserve a break and need to unwind and clear their heads. In fact many top CEOs and entrepreneurs consider this unwind time non-negotiable. As for me, I was so stressed as I was pursuing my business ideas that I cornered myself with a bout of pneumonia, rendering me unable to work on anything for a month - what an #entrepreneurfail. Since then I've carefully carved out a balance.

Here are some traditional ways to relax as an entrepreneur:
  1. Meditation and Yoga - Top CEOs meditate. Are you one of them? 
  2. Exercise - There is evidence that you can actually improve your memory and focus with exercise 
  3. Humor - Laughter can reduce your blood pressure and help you think clearly. If you need a laugh you can always turn to #entrepreneurfail!
  4. Family and Friends - Don't forget those who care about you the most.
  5. Me time - You, yourself and yes to taking a well deserved break.
However, here are some that actually worked for me:
  1. Go into a room by yourself and sing loudly.
  2. Grab some of your friends and act out a scene about your business in 5 years.
  3. Choose any song and use the thesaurus to change the words but retain the same meaning.
  4. Put on the TV, put it on mute, and try to guess what the characters are saying.
  5. GOOO - Get Out Of Office - go anywhere the park, the train station, the mall and just observe and try not to think about work for a few minutes.
Best of luck to you and your business. As you establish a rhythm of work and relaxation, you'll appreciate both sides more effectively and be more successful because of the balance.

Do you have a favorite way to get your mind off of your business? Share them with us in the comments below!
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Passion Trashin': Is your business worth it?

August 6, 2013, 8:02 am
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Who cares about passion, right? 
We don't have time for fanatics! We have a business to run. On the contrary, passion is one of the most important things you can bring to a business. Here are a few questions to ask yourself:
  1. If you were extremely, unbelievably tired, would you still work that extra hour on your business?
  2. If you had no incoming money for 3 years, and after that it would still be variable, would you still want to work on your business? 
  3. Do you periodically dream about your business, and does it keep you awake at night? 
If you answered yes to at least one of these, then you are passionate about your idea and believe in it. This is an absolute precursor to starting your own venture.

What exactly is passion in entrepreneurship? 
It is a strong and uncontrollable drive to actualize your idea. And why is it necessary? You will face tough days, emotionally draining days, steamrolling days and the only thing that will get you through them is your passion. Last year I was pursuing a business that I thought had good applications and had potential, but I fooled myself into believing I was passionate about it. I plowed through assessing the customers and creating a prototype. However, as soon as I found a competitive threat, I was disenchanted by the entire idea. This lack of passion was an #entrepreneurfail.  I decided to switch gears to a business where my passion was more evident.

Where else will passion help you? 
Whether you are networking and searching for new leads, trying to get funding, or delivering extra value for your consumer, your passion will come through and propel you that extra step. When times get tough, your passion will be there, like a long-time friend, to pull you through. So go out there and find your passion. It's something you won't be able to find anywhere but within you.

Have you found your passion? Tell us how you found your passion in the comments below.
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I’m All In: Why is Entrepreneurship Like Poker

August 19, 2013, 8:17 pm
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I played my first poker game recently. Although my hope for beginner’s luck didn't pan out, I learned a lot during that game and saw many parallels to starting a company. And the more I understood poker, the more it made sense as to why poker was declared a game of “skill”, instead of a game of pure chance. Entrepreneurship is much more like poker than other games in that:

  1. Success is the combination of luck and skill. 
  2. The more rounds you play (the more experience you have), the better you know yourself and how you react to certain situations. 
  3. Even if you do not have the best hand, you can come out as the winner. 
  4. Bluffing is a mandatory - sometimes you have to act as if you have the best hand even if you don't necessarily have it (yet). 
  5. You have to know the rules really well. Similarly, to start a business you have to know the industry. 
  6. After every round, you may have to alter your strategy as new cards are revealed. 
  7. You have to learn the habits of your opponents (and competitors). 
  8. Every round is a new round – very little carries over. 
  9. Know the risks and probability of success when you need to make a decision. 
  10. Small things can completely change the whole strategy 
  11. You have to know when to fold – sometimes it’s ok to give in if your hand you’ve been dealt won’t win.
One of our readers, Mayank Batra, offered a few more similarities between entrepreneurship and poker:
  1. You cannot win every round - it's a marathon, not a sprint.
  2. You have to be patient when you lose a round - aggressive actions will not help
  3. Number and statistics matter as much as your gut.
  4. Play the cards you have OR you can also play the people opposite to you. Only having the best cards would never allow for success.
The #entrepreneurfail comes in when entrepreneurs decide to go all-in too quickly. Yes, you have to think positively and you have to work and act as if there is no other option except success. But, liquidating your retirement accounts, assets, savings, and family jewels is a bit too hasty especially if you don't have market validation yet. For the same reason, it's extremely important to know when to walk away. And if you play your cards right, you always have a good chance of winning the pot! 

Poker enthusiasts and entrepreneurs, in the comments below, tell me where I’m wrong and where I’m right in my comparison! 

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Take the First Hasty Exit, then Make a U-Turn

September 4, 2013, 2:54 am
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Last year, I was working on a business that I was convinced could be bought by a huge media conglomerate. In fact, before I had a business model, funding, prototype or even a single customer, I was ready to sell the business! Needless to say, the business didn't work out. My passion was focused on the wrong place. And I'm not the only one. Many entrepreneurs I speak to are looking for an exit strategy much earlier than even their entrance strategy.

I read an article by Mark Cuban many months later and the second line struck me:
  1. Don't start a company unless it's an obsession and something you love. 
  2. If you have an exit strategy, it's not an obsession. 
Who is Mark Cuban? If you haven't seen him on Shark Tank, or aren't a fan of the Dallas Mavericks, just know he a billionaire who built his way up. And, yes, in retrospect, that business I was working on was not an obsession - making it an #entrepreneurfail.

From my experience, here is a checklist of red flags to warn you that you may be too interested in an exit strategy too soon:
  1. You are more interested in selling the business than in creating what your business needs to sell.
  2. You haven't talked to a single customer, but are sure that future owners of the business will. 
  3. You are browsing potential investors of the company, before creating a proof-of-concept yourself. 
  4. You don't want to learn too much industry knowledge since it won't be needed after you sell the company. 
Do you agree with Mark Cuban’s quote about the exit strategy? Let us know in the comments below.

Read more about this topic and check out our comic on this post by 20-year old serial entrepreneur Jeet Banerjee. 

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Crowdfunder Blunder: Leverage Crowdfunding or Waste of Time?

September 16, 2013, 9:17 pm
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Have you ever heard aspiring entrepreneurs casually say: "Oh I'll just put it on Kickstarter".   I've heard that quite a bit recently and I thought I'd investigate.

People throw around the word "crowdfunding" like a party favor. Crowdfunding is the networking and pooling of individual funds for a project, often in return for a gift.  Last year "crowdfunding" and "crowdsourcing" were buzz words, and the popularity of Crowdfunding sites still reign supreme. In a recent count, every niche seems to have its own crowdfunding site.

Crowdfunding seems like a great way to fund your startup without the hassle of investors that want their money back, and with instant validation from potential customers. Kickstarter, which has to date provided $786 million (as of Sept 2013) in funding is always a great case study for the benefits of crowdfunding. But what many entrepreneurs don't hear about is the flip side. I recently fumbled across YourKickstarterSucks which shows the sad fate of pitches that should never have been posted to begin with. If you think crowdfunding is the best method for gaining some traction on your business idea, consider the following: 10% of projects on Kickstarter completed their round, without receiving a single pledge, and 56% do not get funding because they don't reach their goal - an unfortunate #entrepreneurfail.

The only way a project will be a good candidate for crowdfunding, is if the target investors and donors are both willing and able to align with the project conceptually and financially.

Now, say you do identify a project that makes sense to crowdfund. Here are some guidelines about posting a project on a crowdfunding site to maximize the returns for both your venture and the investors:
  1. Be realistic about the total goals 
  2. Make project crystal clear, concise and super easy to communicate 
  3. Show evidence of potential future success - through past sales or market research
  4. Provide compelling gifts for investors/donators 
Good luck with whatever funding route you take! Let us know how it went in the comments below.
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Entrepreneur's Mousetrap: The Greedy Get Trapped

October 1, 2013, 6:42 pm
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Overnight millionaire! 
Strategies to get 100K Facebook Fans Today so you can Retire Tomorrow. 
Work from home for less than an hour a week, and Die Rich! 
Get thousands of customers with a click of a button and have them eating out of the palm of your hand. 
Attend the event that will teach you the alchemy to grow gold in your freezer.
Pay only a small amount a month, but earn more than anyone you know!

The list goes on and on. These promises are abound all over the business world, and especially on the internet. So how do you spot these Ponzis and too-good-to-be-true opportunities and separate them from the real ones?

To determine if something is really an opportunity or potential venture and not just an #entrepreneurfail, it must meet most of the following criteria:
  • Involve hard work - if the plan involves no effort from your side, it's a red flag.
  • Be long term - if the opportunity is a one-time, one-person quick fix, run far, far away.
  • Be from a reliable source - if the social proof of a project looks fake, it probably is.
  • Must NOT be too-good-to-be-true - if your gut is telling you to steer clear, listen!
On the flip side, when you are creating your own product or service, and marketing it to your target customer, make sure your promises are tried and true. The litmus test is easy - if you share it with 5 people who think what you are offering seems unreal, then you need to show some proof.

So have you fallen into any of the traps out there?  How did you figure out if an opportunity or a product was really worth your while?

Please note no animals were harmed in the creation of this comic.


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The Words Get in the Way: Do your Thoughts Need Subtitles?

October 9, 2013, 12:54 am
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I had this amazing business idea for an online tool and a website.

It was so beautiful in my head - the functionality, the design, the value proposition - I could basically hear people banging on my door for access to it, and clogging up my servers to download it. Then I told people about it and my bubble burst.

Somehow my explanation didn't do justice to the amazing product I envisioned. That's ok, I thought, I'll draw it!

Then I wrote about it and drew prototypes - and it just wasn't what I had envisioned. It was close - but that grandeur wasn't there. Finally, I started building it. 6 Months later it was NO WHERE near the vision in my head, nor what I explained to people, nor what I had drawn. Yes, it was an #entrepreneurfail.

The Morals of this Story

Firstly, entrepreneurs must have a vision, but you have to build from the ground up. You have to create simple ideas in your head and then grow them into reality to eventually become that vision. That's why the idea of a minimally viable product (MVP) is so compelling. It forces you to remove all the bells and whistles and create a basic product to test all the consumption assumptions before wasting time.

As Tim Minchin attested in a recent graduation address:
"Just be aware that the next worthy pursuit will probably appear in your periphery. Which is why you should be careful of long-term dreams. If you focus too far in front of you, you won’t see the shiny thing out the corner of your eye."

The other moral of the story is that entrepreneurs often overlook the importance of crystal clear communication.  Each thought, word, piece of writing, sketch, bit of code, and prototype all must have cohesion, otherwise it is very confusing for potential customers.  The best way to ensure consistency is to simplify and focus your thoughts to one concept, shaving the unnecessary pieces, and then sharing that concisely.

Have you fallen into this trap? Do your words match your vision, or are you disappointed with the translation? Let us know about it in the comments below.

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