Famed musician Billy Joel needs little introduction. I find the back story of artists and musicians full of lessons for entrepreneurs – especially during the halcyon period of the music industrial complex circa 1950-1995. But today I read some things about Billy Joel which really inspired me:
Firstly, he didn’t finish high school because he took a gig playing in a piano bar at nights to support his single mother. At the end of the year he didn’t have enough credits to graduate:
The final irony is that he now has 6 honorary doctorate degrees from famous colleges.
As the new year starts we all set goals and have ambitions to make it a year to remember – as we should. But sometimes we need simple philosophical shifts too. Small shifts that can have a dramatic impact. One of mine is to ‘value myself appropriately’. As startup entrepreneurs an important part of the process is to be a bootstrapper, to maximise the limited resources we have to gain the momentum we need. This often leads us to doing it all ourselves. To be our own courier, printer, door knocker, community manager, clerk, mail room assistant…. anything and everything which is possible to do ourselves. And this is one of the greatest false economies in startup land. A simple rule to circumvent such folly is this:
Never do a task which can be outsourced at a lower hourly rate than what the open market would pay you for that hour.
While it’s easy to argue that we aren’t actually paying ourselves the market rate, it is certainly true that we should be creating the value of our market rate. And this is usually at least double the pay rate. Hence a person earning $100 per hour, should be generating at least $200 per hour for their organisation. Every hour wasted doing a menial task, has more impact than we actually think. Let’s take this simple example:
If we work 60 hours a week for 50 weeks for 2 years and end up with an equity stake valued at $3 million our hourly rate comes out at $500.
Which doesn’t leave many tasks that are worth doing ourselves. Startup blog says value yourself in 2013!
There are 2 people who are offering you some pie.
They tell you that they are about to bake a pie. They then continue to tell you a story that they are terrific pie makers and that all of their experience in and around the kitchen (watching their parents bake) and eating lots of pie, gives them the right qualifications to make a really great tasting pie. They also tell you about their secret recipe, which has never been used before. They are certain it will make a far superior pie. They even show you the written recipe and tell you about the ingredients and methods.
After all this explaining they then ask if you’d like a taste, but before that, you will have to wait until they bake it. Then they ask you to give them some money to go build a kitchen and buy some ingredients. They want to bake these pies at great scale. They think they can sell many of these pies.
Has already baked a pie and offers you some. They have only baked this one small pie. But would like you to try it even though it is just a small sample. It smells nice, and it looks nice. You try some and it tastes lovely. You then engage in some conversation about their pie. How they baked it, the ingredients, and if they think they could replicate this pie and make it at scale. It turns into a really great discussion and evolves into a deeper immersion about the pie business. You’re both really inspired by each other and start planning some next steps.
Your startup is the pie. Which person would you invest in?
What I love is how he did it. It’s a simple mashup. No printing costs – just a card with a sticker of his details on it. He carries with him a card from each team and during the conversation (without me realising) he asks which team I follow. When we said farewell he gave me the card – which I clearly took notice of. Not only was the player from my team, he was even from an old era – my one!
If you want to know how to get your brand exposed to 100,000 people for $8 then we need look no further than what David did.
You may remember this post where David go his Jarritos soft drink van all branded up. Well, he took the next step in exposure and got to the AFL grand final early for a front row car park near the MCG for a measly $8. As far as I can tell it’s one of the greatest media investments of all time – there were 100,000 people in attendance. See photo journal below. Great startup bootstrapping David.
I’m really impressed with new Melbourne Startup www.salvagebazaar.com
What is it? Salvage Bazaar is an online marketplace where you can buy and sell recycled and scrap building materials.
I’m impressed for a few reasons:
- It’s a nice iteration for on line real estate market
- It has strong eco / environmental credentials
It’s a very nice addendum to the existing established real estate websites in most markets such as www.realestate.com.au in Australia.
It also has a strong play with the move towards gentrification of housing in inner city areas, as well as green / eco requirements emerging in the architecture scene.
But here’s the kicker: the founder Kim Pannan, has never done anything in the tech space before in her life, not even blogging let alone founding, designing and building her own commercial web business. The bit I love is that Kim was a graduate from Startup School. So a feel a bit like a proud uncle.
I’ve always been an evangelist for international outsourcing. Especially as it pertains to digital work. I was asked recently if it has added complexity because of time zone differences. I had never consider the issue before, so I stopped to think about it for a while.
And this is my answer:
Having staff work on the other side of the world is usually an advantage. It feels like we have double the amount of business hours in a day. For example, when it is 5pm and something important comes up, I don’t have to wait for the next day for it to get started on. I can brief it out, and have it on my desktop by the next morning. For small startups getting things done quickly is what matters, and this process is a bit like inventing time.
Startup blog says: having a team in different time zones is rad.