Saturday, May 23, 2020
The next one to fail would be a US school. With the international students retreating, and with the supply chain and manufacturing not coming back, the United States schools would be saddled with high salary levels from the bygone era. The schools would find it hard to survive unless they charge sky high tuition one way or another. If they don't, some schools would have to go.
The solution is to bring the research to a high level and bring the industry manufacturing back!! the schools need to learn to live lean and the professors need to learn to work on applied innovative problems rather than just pie in the sky research.
Wednesday, May 6, 2020
Tuesday, May 5, 2020
|#teensharks #startupreadiness checker|
|#teensharks #startup IdeaStrength checker.|
|#teensharks nine step process for startup|
A startup process takes nine steps. Whether you are a silicon valley high tech or a local restaurant.
Step 1: Ideation and conception.
Step 2: Build a minimal viable model to prove it can be made, even if not at commercial scale.
Step 3: Obtain seed funding and go into business.
Step 4: Validate that sales can happen.
Step 5: Raise funding to facilitate growth. Don't just "boot strap" it because it is too slow and can not guarantee barrier.
Step 6: Prove that the concept can enter market.
Step 7: Obtain profitable operation that is continuous.
Step 8: Build barrier of entry fast.
Step 9: Scale up the operations and grow.
Use your idea against the check list. If you satisfy one criteria, put a stamp. The more stamps, the higher quality your idea is and the higher chance it will be funded.
When you startup, check if you are ready. Check six directions:
Front, back, left, right, top, and below.
Check front for sales validation and aspiration;
Check back for barrier and copycats/competitors;
Check left for allies;
Check right for market channel penetration ability;
Check top for ceilings;
Check below for footing and potholes.
For example, if an idea has no ceiling, and you completely have no ally and no understanding of market or operational details, the chance you are ready is extremely low. Get a mentor or coach or guide.
Monday, May 4, 2020
|Cover of Straight Talk for Startups|
By Randy Komisar and Jantoon Reigersman
- Starting a venture has never be easier exceeding has never been harder
- Try to act normal
- Aim for an order of magnitude improvement
- Start small but be ambitious
- Most failures result from poor execution not unsuccessful innovation
- The best idea originates from founders who are users
- Don't scale your technology until it works
- Manage with maniacal focus
- Target fast growing dynamic markets
- Never hire the second-best
- Conduct your hiring interviews as see if you're an airline pilot
- A part-time game changer is preferable to a full time seat filler
- Manager team like a jazz band
- Instead of a free lunch, provide meaningful work
- Team of professionals with a common mission makes the most attractive investment
- Use your financials to tell your story
- Create to business plans, an execution plan and a aspiration plan
- Know your financial members and their interdependence by heart
- Net income is an opinion but cash flow is a fact
- Unity economics tell you whether you have a business
- Manage working capital as if it were your only source of funds
- excellent exercise district its financial discipline
- Always be frugal
- To get where you are going you need to know where you are going
- Measurement comes with pitfalls
- Operational setbacks require swift and deep cutbacks
- Safe surprises for birthdays not for your stakeholders
- Strategic pivots offer silver linings
- Don't accept money from strangers
- Incubators are good for finding investors but not for developing business
- Avoid venture capital unless you absolutely need it
- If you choose venture capital pick the right type of the investor
- Conduct detailed due diligence on your investors
- Personal wealth is not good investing
- Choose investors who think like operators
- Deal directly with the decision makers
- Find stable investors
- Select investors who can help future financings
- Investors syndicates needs to be managed
- Capital intensive ventures required deep financial pockets
- Strategic investors pose unique challenges
- Raise capital in stages as you remove risks
- Minimizing dilutions is not your fund raising objective
- Don't let a temporary fix become a permanent mistake
- Pursue the lowest cost capital in light of your circumstances
- Escape the traps of venture debt
- Choose one of four approaches to determine how much money to raise
- Always have your aspirational plans ready
- More ventures fail from indigestion since from starvation
- Never stop fundraising
- Venture capital moves in cycles
- Fund raising takes more time than you think
- The pitch must answer the fundamental questions about your venture
- Make it personal
- When pitching carefully read the room
- Use white papers for deep dive follow-ups
- Prepare your financing document ahead of time
- Obsessively drive the close
- Consistent communication is important in convincing investors
- Milestones can solve irreconcilable valuation differences
- Liquidation preference will change your outcome safe
- Do not take rejections personally
- Boards are deliberation bodies not collection of individuals
- Conflicts of interest and conflicting interest are elephants in room
- Your board should be operational rather than administrative
- Small boards are better than big ones next one
- Lead investors ask for board seats quantify them first
- You need a lead director
- Add independent board members for expertise and objectivity
- True board diversity is a competitive advantage
- Each director must commit to spending meaningful time
- Review director performance regularly
- Your chief financial officer has a special relationship with your board
- The founder should choose the best CEO available
- Find a coach
- It is the CEOs job to run efficient productive meetings
- Don't oversell your board
- Board agenda should look like this
- Prepare thoroughly for board meetings
- Use your daily management materials for board meetings
- Too many unanimous board decisions is a sign of trouble
- Use a working sessions and committees to reinforce your priorities
- Your bored should spend time with your team
- Building companies to last, providing liquidity along the way
- Who liquidity is not limited to initial public offerings and acquisitions
- If you go public don't slip and fall
- Investors and management's interest in liquidity often conflicts
- Individual needed liquidity too
- Your evaluation will have a local maximum
- Ventures aren't just bought they can also be sold
- Choose an acquisitor, don’t wait to be chosen
- If you want to sell your business you need to know the decision-makers
- Determine whether you are a good fit for acquisition before contacting them
- Know your acquisitor’s acquisition history in detail
- Make yourself visible
- Build a relationship with potential acquisitions don't cold call
- Be ready when they are
- Success is not linear
- Prepare for your lucky break
- Learn the rules by heart so you know when to break them
Tuesday, April 21, 2020
(1) The process of going from idea to a merchandise;
(2) The steps between a product and the buyer;
(3) The migration of a person's knowledge.
These three represent the flow of (1) objects; (2) money and value; and (3) person. It is very important for a would-be entrepreneur to know where exactly he is, where his knowledge is, and where the industry and market is.
|A person's maturation from book learning to career to business to creation-learning.|
|Migration from an idea to a merchandise.|
To solve a problem or satisfy a need is not necessary. Like being a roast beef chef.
A founder builds relations.
A relation is to easy other people's life. Make somethings simple. Easy.
innovation = change x big
start = new biz x new company x founder transformation
Startup and innovation are both business domain, not knowledge domain.
Business is to provide value in exchange for cash tips.
Starting business is to build
A startup business is not a business yet.
is to survive
is to quit job
Sunday, April 19, 2020
The author is Dr. Chang Liu. He is especially interested in helping technology folks find a path to commercialization and startup.
|Dr. Chang Liu|