Managing service delivery is the single most effective mean for differentiation among companies.
Want to start a startup? Get funded by Y Combinator. November Venture funding works like gears. A typical startup goes through several rounds of funding, and at each round you want to take just enough money to reach the speed where you can shift into the next gear.
Few startups get it quite right. A few are overfunded, which is like trying to start driving in third gear. I think it would help founders to understand funding better—not just the mechanics of it, but what investors are thinking.
I was surprised recently when I realized that all the worst problems we faced in our startup were due not to competitors, but investors.
Dealing with competitors was easy by comparison. I don't mean to suggest that our investors were nothing but a drag on us.
They were helpful in negotiating deals, for example. I mean more that conflicts with investors are particularly nasty. Competitors punch you in the jaw, but investors have you by the balls. Apparently our situation was not unusual. And if trouble with investors is one of the biggest threats to a startup, managing them is one of the most important skills founders need to learn.
Let's start by talking about the five sources of startup funding. Then we'll trace the life of a hypothetical very fortunate startup as it shifts gears through successive rounds. Friends and Family A lot of startups get their first funding from friends and family.
Excite did, for example: With the help of some part-time jobs they made it last 18 months. If your friends or family happen to be rich, the line blurs between them and angel investors. He was also a lawyer, which was great, because it meant we didn't have to pay legal bills out of that initial small sum.
The advantage of raising money from friends and family is that they're easy to find. You already know them. There are three main disadvantages: The regulatory burden is much lower if a company's shareholders are all accredited investors.
Once you take money from the general public you're more restricted in what you can do.
In an IPO, it might not merely add expense, but change the outcome. A lawyer I asked about it said: When the company goes public, the SEC will carefully study all prior issuances of stock by the company and demand that it take immediate action to cure any past violations of securities laws. Those remedial actions can delay, stall or even kill the IPO.
Of course the odds of any given startup doing an IPO are small. But not as small as they might seem. A lot of startups that end up going public didn't seem likely to at first. Who could have guessed that the company Wozniak and Jobs started in their spare time selling plans for microcomputers would yield one of the biggest IPOs of the decade?
Much of the value of a startup consists of that tiny probability multiplied by the huge outcome. It wasn't because they weren't accredited investors that I didn't ask my parents for seed money, though.
When we were starting Viaweb, I didn't know about the concept of an accredited investor, and didn't stop to think about the value of investors' connections. The reason I didn't take money from my parents was that I didn't want them to lose it. Consulting Another way to fund a startup is to get a job.
The best sort of job is a consulting project in which you can build whatever software you wanted to sell as a startup. Then you can gradually transform yourself from a consulting company into a product company, and have your clients pay your development expenses.
This is a good plan for someone with kids, because it takes most of the risk out of starting a startup.The Leadership Development program challenges high school students who are looking for something more.
You’ll have experiences that prepare your heart to be impacted by God and empower you to go and change lives for Jesus. The following essay was submitted to the Wharton MBA program by our client.
The client was accepted to the program. Upon graduation I wish to lead the fiber-optics product management team in one of the world’s largest optical communication companies (such as Alcatel-Lucent and AT&T), supervising a .
Published: Mon, 5 Dec On Wednesday the 23rd of September , the team building day out was a good learning experience for me.
It gave me a good opportunity to get to know my classmates better with whom I was to spend the rest of the year in the MBA course. marketing strategy and plan and the new product development Marketing strategy is the marketing logic by which the business unit hopes to achieve its marketing objectives.
It consists of specific strategies for target markets, positioning, the marketing mix, and marketing expenditure levels.
Credit This essay is a preprint of the author’s original manuscript of a chapter to be published in Netland and Powell (eds) () "Routledge Companion to Lean Management".
Introduction. Ensuring that customers get what they want is called a service quality. Managing service delivery is the single most effective mean for differentiation among companies.