4 factors for webpreneurs – Guest Post

1. Technology is easy – getting customers to pay you is outrageously difficult.

When was the last time you heard about a web startup failing because the product didn’t work?  Almost never.  With the greatest respect to all the hackers and engineers out there coding away, making a product do what you want is simply a function of time.  Spend enough development time on it, and you can write code to do almost anything you want. Getting a customer to pay you some money for that feature you just added? That’s an entirely different proposition. The vast majority of web startups fail because they don’t find enough customers, at the right price and in enough time before they run out of cash.  If we spend as much time on marketing your startup as you do on writing and shipping your code, and we just might beat the odds.

2. Customers can always choose to do nothing

When pitching a prospect we are generally trying to convince them to do one of two things:
(i) Leave a competitor and join you
(ii) Stop doing nothing about their pain problem and join you

Who knew that getting them to leave a competitor was often easier than getting them to stop doing nothing? At least if they are using a competitor they recognise that they have a problem that needs solving! The truth is, many prospects are indecisive, stagnant, glacial, apathetic, unwilling, and unmotivated.  Demonstrating your product and then asking for the sale is just as likely to be met with a yawn and a scratch of the arse as it is with a chequebook. If you understand how difficult the process is, then there is a good chance you will approach it with the right amount of preparation and effort.

3. Financial models are fantasy
Their is one good reason to construct a financial model prior to having any real customer data.  Do it to prove to yourself that the fundamentals of your model will produce a profitable business over time.  Think of it as a sanity check. Once you are happy that the model works in theory, throw the spreadsheet away.  Never look at it again, and for christ sake don’t go out and try and raise investment funds off the back of it (guilty as charged!). Just launch your product and get as much real live data as you can.  Months later you can giggle about how wrong your projections were, but at least you won’t be making life altering decisions based on nonsense.

4. There is no replacement for quality user testing

User testing pays for itself many times over.  This doesn’t mean getting your mates over to play with your creation in return for a 6 pack.  It means getting real life customers/strangers to use your product while you watch. True story.  Our startup is an online event registration solution that allows customers to sell tickets and accept registrations for any sized event. Three months after launch, we sat and watched via web cam while a Canadian tester spent 15 MINUTES just trying to create an account. In one of our releases, we had cannily decided not to display a “register button” to anyone using Internet Explorer.  No-one using this browser  could get in and use our product, and it had been that way for over a week.  He eventually managed to get in, but man was he pissed!

What else do you wish you had known before you did your own web startup?

Post by Scott Handsaker founder of Eventarc

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I don’t…

I don’t have a rich Father

I wasn’t left a sum of money from my Grandma

I didn’t go to Harvard

I don’t live in Silicon valley

I wasn’t funded at Techcrunch 50 or Y combinator

I’m not technical genius

I can’t code the latest killer app

I guess I’ll just have to build my startup the old fashioned way. Work my ass off, invent my own revenue, build a team and improve what I have to offer as I learn from the mistakes I’m bound to make. If you’re still around in 10 years, look me up.

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How to pitch

There is more good than bad in these hilarious Ali G pitches to Venture Capitalists.

What to look for:

  • His tone of voice and pausing when speaking.
  • His reliance on talking. There is no powerpoint.
  • Taking them on a journey. Story telling.
  • Simple visuals. Having samples / props.
  • Supreme confidence

I’d seriously recommend this video on how to pitch versus most other examples we see on the web so long as we understand the context.

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The Thomas Edison Strategy

In business, demand is invariably more important than supply. If demand doesn’t exist, supply is irrelevant. If demand exists, supply will eventuate.

I happened upon a quote from one of the greatest inventors / entrepreneurs in history Thomas Edison. Despite the simplicity of the idea, it’s very profound.

“I find out what the world needs, and then I proceed to invent it.”

This is some pretty good advice for any entrepreneur. It’s better to make what you can sell, than try to sell what you can make.

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Startup School – 1 seat left

I’m very excited that Startup School Melbourne is this weekend. We still have a single seat left which is currently being warmed by this guy….

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But we’d love to replace him with you. And if you need any more convincing then I’m pretty sure I’ll have done the job once you finish reading this blog entry.

Firstly – here’s a list of topics we’ll be covering in detail:

  • Idea Generating
  • Creativity in business. Creative thinking
  • Raising Capital
  • Art of Pitching
  • Legal tips, shortcuts and administration
  • Successful outsourcing (digital & production)
  • Building an international work force
  • Cash flow for startups & budgeting
  • Simplified project management
  • Personal & business branding
  • Selling like a guru
  • Generating PR and media
  • Building a Team

All of which is fully documented in a take home working manual so you’ll leave knowing exactly what to do and how to do it. Like I have.

We are also being joined by Yvonne Adele – Globally renowned Creativity and ideas guru!

You can’t learn this stuff in school, books or at University. And I should know as I teach Marketing at Melbourne University. You also get me as an on going mentor as a Startup School graduate with unlimited help in your start up. Which is incredible value give what most consultants (with less real experience) charge by the hour.

We are holding the event in the groovy boutique Lindrum Hotel. Where the space is great and the food and espresso is awesome. I tested it.

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All of which is included in the price. You’ll be one of 10 people in an intimate learning environment. Not in a room full of people.

If that’s not enough , Startup School comes with a money back guarantee to blow your mind. I can say this because I know the 2 days will.

No, it’s not priceless – it’s priced at $998.

It will be the best investment in your entrepreneurship education you’ve ever made. it will make and save you thousands. This event is a one off, there is no next chance. If you want to chat about it – call me on the phone number in the right hand side bar of this blog.

Click here to book now.

(Seats still available for Sydney 21st & 22nd of November)

See you on the weekend, Steve.

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Short memory – GFC

Reading the New York Times this weekend it seems clear that the Global Financial Crisis has not diminished the ability of investment bankers to extract bonuses from poorly performing assets and even losses.

I still believe that private profits should also result in private losses. I remember back last year having a discussion with a prominent Australian Venture Capitalist. He held a strong view that the bailout activities were justified, while my view was strongly opposed.

He said:

“If a child trips and skins its knee that’s fine, but there is no point letting it fall from a 10 story building. The consequences are too great”

I said:

“It’s not a child, they’re investment bankers. And maybe what we need right now is a few of them splattered on the sidewalk.”

My view has not changed.

But it seems the general populous has a short memory as the rot is returning very quickly. In fact, it might do both our economy and our environment good to let the current system bleed for a while. Why not allow time for new eco-friendly industries and  egalitarian reward systems arrive?

Startup Blog wonders what your think?

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Startup School just got better

For those of my blog readers already locked and loaded for startup schoolGood News.

For those thinking about coming long – Another great reason to join us.

The uber terrific Yvonne Adele from at Ideas Culture has just joined us for the 2 events. She will be facilitating and helping us out through the two days. But don’t think she’ll just be giving the intro’s and outro’s – she’ll be giving us her spin on creativity and ideas, as well as getting us pumped up, motivated and thinking. Which will also blow our minds!

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For those who don’t know, Yvonne’s business was recently featured in Springwise and has a list of credentials and testimonials as long as both my arms.

So, if you’ve been on the edge of booking startup school. Time to get moving. The Melbourne event is about to close the door with only a couple of seats left. And Sydney is filling quickly.

Feel free to contact me if you have any queries and want to chat in more detail about it on 0438 779566. Steve.