Building Blocks: Passion/Drive + Helping Hands

Seeds need soil, water, and light to become a full plant.  Gaga writes her own material, picks out the wardrobe collage, and puts in long rehearsals planning each performance.  However, she doesn’t do it alone.  There are a lot of people involved to help accomplish a specific series of goal; producers, publicist, brands Polaroid and Estee Lauder, Interscope Records (sorry Def Jam), manager Troy Carter, and of course family Germanotta.  A trusted group of advisors is perhaps the greatest asset to any entrepreneur.  The founder may be able to lead but there are only so many hours in a day and only so many things at which a single person can be an expert.  The right mix of persons, (employees, consultants, board of directors) can help to avoid common mistakes and bring a cohesive plan to fruition.

Even Bill Gates had a team in Albuquerque back in 1978.  http://www.microsoft.com/presspass/features/2008/jun08/06-25iconic.mspx

Branding Excellence: Holistic Approach, Targeted Delivery

Lady Gaga starts with raw talent and sprinkles in a fearless approach of letting it all hang out.  She sings, dances, designs, performs, opens eyes and closes some others.  Most importantly she takes her unique vision and applies it across the broad spectrum of performing arts.  At the same time of casting a wide net, her strategy is also very successful in being extremely targeted.  With the help of her primary producer RedOne she creates songs that are ‘lyrically simple and easy to sing along to, even for people in the world who don’t speak English’.  This ensures mass appeal.

Further, Gaga harnesses the hugely efficient machine of generation digital.  Almost all of her downloads are iTunes and many fans received her music free via YouTube and MySpace.  A comparison was made to Susan Boyle who is the No. 2 selling album of 2009 with 133,000 plays.  Lady Gaga online plays are over 320 million.  She has also endorsed ‘Heartbeats’ earbuds in coordinateion with Dr. Dre (months ahead of P. Diddy doing the same).  It’s all about the Gaga experience delivered in the most efficient way – viral and directly to the fans.

Expansion: A Hopeful Future Lesson in Transcendentalism

At age 23, Gaga is already being compared to Madonna.  She is a superstar for sure.  Nevertheless it is still too early in the lifecycle of this iconic startup to know whether or not she will transcend.  She already leads in a way that makes us appreciate that she carries a message.  The true test will be if she can elevate others and leverage her brand for the greater good.  Bono comes to mind as do Oprah, Arnold Schwarzenegger, George Clooney, Tiger Woods and Ronald Reagan.

Fresh off four No.1 hits from her debut album, a duet with Elton John, and two Grammys, entrepreneurs should keep a close eye on her encore for other smart business lessons.

Source: John Jurgensen, WSJ ‘The Lessons of Lady Gaga’, January 29, 2010.

http://online.wsj.com/article/SB10001424052748704094304575029621644867154.html

TOP STARTUP OFFICER FEAR TO FLUSH AWAY: CHANGE

The huge fear for entrepreneurs is complete failure and going broke. My former employer (Lehman) took care of that in 2008! My top fear is no longer exhausting my savings or bruising my pride; it’s something more obscure. As a change agent, I fear that my real-substance methodologies may be too early in the cycle and will have a hard time gaining momentum vs. the flashy promises of others. By exposing this fear and remaining self confident, I can now tear it off the roll and flush away.

5 OTHER STARTUP FEARS & HOW TO WIPE THEM AWAY:

FEAR: Spending too much time on small revenue assignments and miss the opportunity to work on a huge cornerstone project.
RESOLUTION: Plan out how you want your client base to be segmented. The old standby 80/20 rule will help. Also, stay away from toxic client. They are the ones that call or email every few hours, typically refuse to acknowledge your best ideas, and like to reinvent the wheel.

FEAR: Putting all my eggs in one client basket and learning that they run of cash before I get fully paid.
RESOLUTION: Due diligence. Make sure you have good contracts with clear understanding of timing and size of payments. When appropriate, ask for sizable deposits and keep payments rolling with a percent of completion methodology. Use a good invoicing system and consider accepting credit cards.

FEAR: Taking on too many projects, getting overwhelmed, and neglecting my personal growth.
RESOLUTION: A strong project team and a stronger family support system are imperative. Entrepreneurs don’t get sick days. Maintain a healthy work-life balance. Eat and sleep; one without the other is a recipe for meltdown. Personally I like to run in Central Park and use 5K races to keep me sane.

FEAR: Wasting money on services that I either rarely use or don’t fully understand how to maximize utility.
RESOLUTION: Don’t spend the next incremental dollar until you really need the upgrade. Free works a lot too. Generally speaking, if it’s a ‘must-have’ then focus on evaluating the 2nd most expensive. If it’s a ‘wanna-have’ then target the 2nd least expensive for consideration. Then let rationalization take over. When in doubt, ask for demos and see if your peers are using similar services.

FEAR: Putting too much emphasis on monetizing my ownership stake and forgetting to pay myself a reasonable and regular salary.
RESOLUTION: Business Planning 101. Figure out what your time is worth and develop a revenue strategy to eventually pay yourself what you deserve. Whatever the number, pay yourself 50% of it during a ramp up phase of development. Once you have enough revenue to cover other employees and overhead, scale yourself up to the full amount.

Strategy & Planning

• Whenever I am going to be ‘out of office’ I start by contacting 6+ clients or prospects to see if they are available when I am planning to be in their neighborhood.  Once I book at least 2 meetings, I then go ahead and make reservations for travel.
• Inevitably somebody will cancel last minute or ask for a shift in meeting time so it’s a delicate balance in being fully booked and keeping a two-hour slot open for changes.
• Talk up your pending trip on social media; Twitter and LinkedIn and even Facebook.  This will help you build your brand and businesses will be likely to take more meetings if you are already a regular face in their city.
• ABC and ABOT. Always Be Closing and Always Be On Time.  You are on business and your dollar spent on travel needs to yield return. That means don’t waste your time either.
• Tell family and friends where you are going; it’s good to share and have someone you trust know about your travel.  Safety first.

Method of Transport

• I like to walk, even when it’s 20 blocks and 20 degrees.  But when it’s a business meeting and Mother Nature isn’t cooperative I tend to rely on the subway and trains more often.  The NYC bus/subway is still the greatest value of transport for $2.25.  You get sheltered from rain/snow and sometimes get to listen to some enchanting music on a platform.
• When I am between NYC and Hartford I prefer to drive.  The bus is rarely an option for a plethora of reasons (have you been to Port Authority?).  If you don’t have a car, borrow one or rent one; you get what you pay for.  Zipcar is great for less than six hour turnaround and Hertz or Avis are best options for all day or overnight business trips.
• When I am between NYC and Philadelphia I still prefer to drive but Amtrak makes a compelling case for the train in the colder months and when highways are under construction. It is $45-87 each way for a coach seat and +$23 for business class.  The Acela is much (much) more so I don’t opt for it.  Prices adjust to market demand and you can apply an AAA discount when you book 3 days ahead of travel (that’s what I was told by station customer service).
• Don’t forget commuter rail. If you are frequently between NYC and Summit/Montclair, NJ or Stamford/Greenwich, CT or anywhere within 45 minutes ride on NJ Transit or Metro North, then the commuter rail is a viable option.  However, these trains are less convenient during non-peak hours and the cost isn’t startup friendly unless you are getting multi-ticket discounts.

Price vs. Convenience

• Public transportation is the most cost effective method and should always be your first option.  Even if you are flying, taking the subway/bus to JFK or LaGuardia vs. a taxi can save you tremendously.
• The automobile is the most flexible method but also the most costly.  You pay upfront for this convenience—car payments, insurance, wear and tear, gas and tolls climb each year and the car depreciates quick fast.
• In the middle is the train. On a per use cash outlay basis it is actually about 50% more vs. the implied cost of driving (gas/tolls, car payment/insurance).  However, trains are usually on-time and allow you to work while you transport.

Record Keeping

• Always pay with the same credit card and keep your receipts.
• Write on the back of the receipt who you met, a #tag or two on topic, and a note if it was a worthwhile meeting.
• Keep your receipts in a shoebox and go through once a week to enter into a spreadsheet or Quickbooks.  I like a spreadsheet because you can more easily manipulate the data to analyze your costs.
• Consider having an assistant do all this for you; and give them the option of holding a corporate credit card for emergencies and contingencies.

Courtesy

• Show other cities that New Yawkers are the nicest city folk around!

Here is my take on this smart text. I have taken tons of notes in the book and will quote Gary and offer everyone the Startup Officer / @startupofficer (“SO”) perspective where appropriate:

chapter ONE: passion is everything

Page 1/2 “Three years ago…if I had tried to tell you that you could build a business that creates wealth and the most happiness you’ve ever known with nothing more than passion and a willingness to work your face off, you might not have believed me.”

* SO: Success doesn’t happen overnight, but the Internet has removed many of the hurdles to make it happen sooner.

P3 “Live your passion…every single morning, you are pumped because you get to talk about or work with the thing that interest you the most in the world.”

* SO: Excitement and passion are not only attractive, they reflect another quality, authenticity which is talked about later.

P5 “Everyone knows the Internet represents one of the biggest cultural shifts since the printing press, but I think society has been slow to recognize that is represents the biggest shift in history in how we do business. Like, ever.”

* SO: Classic Gary talking here. I agree, mostly. I am sure there are some industrialists and technologists that can offer great advancements in business. But his point is well taken. There is a paradigm shift occurring. As Julien Smith (@julien) mentioned recently at the Trust Summit in NYC, ‘the hyperlink has erased the hierarchy’.

P6: “It makes total sense that if this is where the eyeballs are going, this is where business has to go.”

* SO: totally agree. This is how Gary shows us that the old guard platform is about to crumble. READ the last paragraph page 6. Twice.

P9 “Everyone—EVERYONE—needs to start thinking of themselves as a brand. It is no longer an option; it is a necessity.”

“Let me reiterate that the process I am going to be talking about takes a lot of time, effort, and focus, but not a lot of dollars, if any.”

* SO: Be the brand, don’t buy the brand.

P12 “Do what makes you happy. Keep it simple. Do the research. Work hard. Look ahead.”

* SO: reminds me of Ted Janulis (former head of Investment Management) comment at Lehman Leadership Retreat—“Keep your head down and head up at the same time.

P13 “Ultimately this book is not about making a million dollars, although it just might help you do that. It’s about ensuring your own happiness….”

* SO: Success can be measured in many ways; money can be part of it but not without happiness.

TWO: success is in your DNA

P16 “For a business guy I talk a lot about DNA…path to your successful business literally lies in the twists and turns of your own double helix.”

* SO: Some people are natural entrepreneurs, some are not. It’s also about what’s inside you and your experience. Maybe Malcolm Gladwell has some thoughts on how much time it takes to become a virtuoso business owner.

P17/18 “I’m convinced, in fact, that if things had been a little easier for my family in the early days, I never would have gotten to where I am now.”

* SO: Okay, so it’s DNA and hunger.

P20 “By the time I was eight years old, I had several lemonade stands and was raking in crazy amounts of cash…”

* SO: If your kid is showing a passion, give them a gentle nudge, but really they know what they want even that young.

P26 “It was there, on the New Jersey Turnpike, that I had my aha moment… I going to use video blogs to build a whole new world for wine, and for myself.”

THREE: build your personal brand

P28 “Whether you’re delivering your content by video, podcast, or blog, it’s the authentic you, the one thing that is guaranteed to differentiate yourself from everybody else, including those who share your niche or business model.”

* SO: Be yourself, that’s enough to be able to compete.

P32 “Consumers want you to tell them the truth. Sure, they want quality and service and value and entertainment, but above all they want to know that the person they’re dealing with is being honest.”

* SO: That’s good advice, nothing prosaic to add here.

P34 “You’ll crush it as long as you concentrate on being yourself. Besides, you can’t be like me.”

*SO: Do you see a trend here in this chapter? Just be.

P36 “Leveraging social networks…is all about building word of mouth…the Internet and social networks….have pumped world of mouth up like it was on steroids.”

*SO: Work smarter not harder. Let the internet do its work for you.

P38 “Developing your personal brand is the same thing as living and breathing your resume”

*SO: Soon it will be time to renovate your b-card to list your Twitter alias and LinkedIn or Google profile.

FOUR: a whole new world

P41 “Business in the future is going to be a field day for everyone with talent because they’ll no longer be forced to exist within the confines of old-guard institutions.”

“The platform is sinking because of the readers are going online, which means that the ad money is going online.”

*SO: Move over telecommuting, a Paradigm Shift is coming.

P43 “There have always been people in every industry with hidden agendas, but now there is no place for them to hide.”

*SO: Hopefully this will help carry the truth around the world.

P44 “The middleman has not yet been eliminated, but we’re getting there.”

*SO: The loss of platform allows companies and people to reach each other directly without the need to pay for an intermediary.

P46 “I still want you to plan to leave and launch your own business because life is way too short to spend it working in a job you don’t love.”

*SO: Crushing it with something you love.

FIVE: create great content

P49 “Great content is what you’re going to pump into your social media networks to draw eyeballs to your blog. It is exists as a result of passion plus expertise, so make sure you can talk about your product like no one else”.

*SO: Know thyself for pretenders will be exposed.

P50 “Most people talk themselves out of success before they even start. Their passion is sticker, but they think, “There’s no way I can make a hundred grand talking about sticks.” That’s why you’re going to crush it—because you’re the type who’s going to say, “Stickers? Hell, yes, stickers!””

*SO: Hell, yeah!

P54 “There are people who belong in front of a camera…print…on the air. These are the extraordinary people. The ordinary ones…vast majority of businesspeople, and entrepreneurs out there, don’t have the showman DNA.”

*SO: If you are remarkable, your content will show it and relegate the others to be backseat drivers.

SIX: choose your platform

P58 “If you’re self-conscious in front of a camera but have loads of personality plus a compelling voice, don’t force yourself to do a video blog, do an audio podcast.”

*SO: Choose wisely; ask someone to help you decide if you are a VJ or a DJ.

P60 “Your blog will be your home, your central location with a no exceptions open door policy where anyone can find you.”

*SO: The platform is an extension of you with a history archive

P62 “WordPress is the established leader with the most users. Its design is a little busy, it requires a few more steps to get your content up and shared, but it’s not difficult to learn.”

“Tumblr, on the other hand, is a simply designed site is supereasy to use.”

*SO: both Blog platforms are popular, I am developing content on both and will eventually figure out which one works best for me.

P66 “Your (Facebook) fan page also allows you to e-mail everyone in one shot and allows people to interact with your page.”

* SO: Forget paying for viral marketing and email blasts, Facebook gives it away.

P66/7 “What you do with Facebook (and Twitter)…should be an absolute reflection of how you live in your daily life.

* SO: Gary keeps pounding us with that the truth does resonate.
* SO: The rest of this chapter talks about Twitter, Flickr, youtube and/or viddler, ustream.tv, analytics…WAY too much to add any value. Like it said above – READ this chapter many times.

P82 “Vitamins can give your body a real boost, but they won’t do you much good if you don’t also incorporate exercise, proper nutrition, and even vaccines into your healthy habits. The same goes for all of these platforms.”

* SO: Take care of the platform and it will take care of you.
* SO: general comment—read this chapter many times over.

SEVEN: keep it real…very real

P87 “No matter how big or small you want to go, your authenticity will be at the root of your appeal and is what keep people coming to your site and spreading the word about your personal brand, service, or what-ever you are offering.

* SO: Truth conquers. And so do honesty and integrity and being nice.

P89 “Anything insane has a price. If you’re serious about building your personal brand, there will be no time for Wii…Scrabble or book club or poker or hockey….Expect this to be all consuming.”

* SO: Don’t be scared, if you love yourself and your brand, you will be able to feed yourself at the same time you are being consumed. The existential snake comes to mind.

P90 “I said that you could make a ton of money being happy; I didn’t say you could do it overnight.”

* SO: Patience is a virtue, don’t be a silly rabbit and try to find a shortcut.

P93 “How did someone like me, who is so obviously not a patient guy, cool my heels for so long? Because I was 100% happy.”

* SO: Slow it down and let your happy quotient lead you.

EIGHT: create community: digging your internet trench

P95 “Creating community is about starting conversations.”

* SO: If it’s better to give than to receive, then it’s much better to open dialogues than just talk your face off.

P97 “I would read hundreds of blog posts and leave comments on many of them. I’d spend time on wine forums and read what other people said and then comment on those comments.”

* SO: It’s exhausting but connecting to everyone and sharing is what it’s all about.

NINE: the best marketing strategy ever

P 102 “CARE.”

* SO: If you ever walk into Wine Library you will learn the meaning of the word C-A-R-E.

TEN: make the world listen

P 104 “Buy both .com and .tv if possible because you never know if you’ll need them and there’s no obligation to launch both. While you’re at it, buy the domain names for your children if you can.”

* SO: Think about the whole world, not just yours.

P 105 “7. If you’re doing video, open a TubeMogul account. If you’re doing a written blog, sign up for Ping.fm.”

* SO: I haven’t done these yet. Sometimes there are so many websites to sign-up for that I get overloaded. I will need to put together a spreadsheet for all this information.

P107 “Rinse and repeat.”

“We’re thinking of this brand building as a marathon, not a sprint, right?”

* §SO: Like it’s been said so many times before, it takes a lot of working your face off to achieve results. Prepare yourself to train for the challenge of your life.

ELEVEN: start monetizing

P110 “There are hundreds of billions of dollars in ad revenue out there that need a place to go, and they’re winding up online because it’s the best return on investment advertisers can find.”

* SO: Eyeballs equal money.

P111 “Next, start taking steps to get on the lecture circuit.”

* SO: Wouldn’t it be cool for someone to consider you an expert on something?

P112 “You could also consider doing an affiliate program.”

* SO: Say it with me, pay-per-action

TWELVE: roll with it

P119 “I’ve repeated over and over that in order to build a winning business you have to go whole hog with you passion

* SO: There is no holding back on happiness.

P123 “As far as I’m concerned, the biggest hurdle for most corporate brands today is their dependence on their PR people. They’re terrified of the unfiltered message, but what they should do is encourage it.”

* SO: The old-guard will take a while to change; maybe new CEOs will be needed to understand these ideas.

THIRTEEN: legacy is greater than currency

P127 “We’re all in the public eye now, swimming around in a clear glass fish bowl of our own making. With every e-mail and video and blog post and tweet and status update, we add to the real-time documentary of our lives.”

* SO: Good morning, good afternoon, and goodnight.

P129 “This is why every decision I make is weighed in terms of currency and legacy. Will this business deal make me money? Yes? Good. Will I be proud of how I made that money? Yes? Okay, then, let’s do this. If the answer is no, I don’t go there, ever. Legacy always wins.”

* SO: Let your moral compass guide you, not your greed.

conclusion: the time is now, the message is forever

P134 “I’ve offered you a blueprint of the step-by-step process…”

“If there’s any message I want you to take away, it’s that true success—financial, personal, and professional—lies above all in loving your family, working hard, and living your passion.”

* SO: Now it’s your turn to build on the plan. Go out there and CRUSH IT.

There are so many titles that are used to describe persons in corporate organizations – President and/or Chief Executive Officer (CEO), Chief Operating Officer (COO), Chief Administrative Officer (CAO), Chief Financial Officer (CFO), and Chief Information Officer (CIO) for example – Chief Marketing Officer (CMO), Chief Investment Officer (also CIO), Chief Technology Officer (CTO), and Chief Legal Officer (CLO) just to name a few more. These titles, while very structured and official, may not be appropriate for a less formal organizational structure where one person does it all.

What title should you give yourself if you are all of the above-mentioned for a startup company? What if you aren’t really comfortable calling yourself the CEO and yet by default have become one overnight? What if you are in charge of building and maintaining your own IT infrastructure and finances, and payroll, and hiring, and selling the brand you have created? What if you are a former CTO-type, with a great idea of how to tap into interactive media by starting up a mobile-device-application-software design firm and don’t necessarily think of yourself as a CMO or a CFO? Well, you could do yourself a huge favor and just adopt the role of ‘Chief Startup Officer’ (CSO).

STARTUP OFFICER (AKA “SO”), is exactly that Chief Startup Officer function but outsourced. The service is a package of key a-la-carte sales, marketing and corporate strategy advice and guidance for a variety of complex startups such as hedge funds.

STARTUPOFFICER.COM is a valuable resource for startups to learn how to launch, market, grow and potentially monetize (sell) your idea/company to venture capital investors.

Combined they form a one-stop resource to build, brand and expand your passion from idea to profit.

Who’s your SO?

http://www.nationaljewelernetwork.com/njn/content_display/fashion/jewelry-fashion-reports/e3ie10589d0e3d97d5310025d2079c250f5

The three charges are:

1. Poor handling and care for your jewelry (items commonly lost).
2. Non-existant return policy (checks were dated and held so you couldn’t reject offer in time).
3. Deliberate run-around by ‘customer service’ staff (lies, frustration and confusion).

If these allegations are true, the parent company may be barred from ”utilizing any monies acquired by Cash4Gold’s unfair business practices,” and could be responsible for compensatory, actual and punitive damages.

The problem is that the damage has already been done, people fooled, and a creative business model tarnished. What happened is that Cash4Gold did the worst thing possible: they broke TRUST. Perhaps even worse is that it seems like the entire business was setup to do just that. They pulled in customers who expected a simple and transparent transaction and good value. Instead they got broken promises, and in some cases lost items. If your customers can’t trust you then your brand and business are worthless.

Responsibility

This day and age we have the internet to get our message out. If you are a consumer it is your responsibility to fact check before you buy or sell. Check out blogs, Twitter searches, etc. If your instinct tells you that something is too good to be true, then stay away. If you are still unsure, then go ahead and use your social media network to ask around. Obviously with an internet-based business model you can’t necessarily walk into the store and shake the hands of the owner. But you can call up customer service and ask questions. If don’t like how you are treated, then you aren’t likely to have a positive experience. If you think the vendor/merchant is doing something questionable, then tweet it. On the flip side if you have a good experience, share that as well. The power of the consumer is growing and will probably overtake what any advertisers can do for a brand.

As part of the BBC’s Aftershock season, Philippa Thomas talked to Jon Brause and two other start-up entrepreneurs in New York City.

BBC Interview with Jon Brause of Startup Officer, Inc

Last night I attended the New York Social Media Roundtable (@smrt, #SMRT) sponsored by Flight Path.  I found out about this conference about 24 hours ahead of time while I was on Facebook checking status updates (thank you @Kmurph).  Here is a quick recap of the  experience, my thoughts on social media, and links.

The event  included a Q&A session, served beverages, was free, lasted about3 hours.  It was quite good.  How do I define good?  First, the moderator (someone please send me her Twitter handle) had a set plan of questions, moved it around the panel, and kept the conversation going the entire time.  Second, the panelist (ibid want to connect with them) themselves were not only perceived experts but communicated and shared their experiences at a very personal level.  The result was a conference that enlightened me to the ways that social media can be used to establish, grow and highlight my personal and professional presence.

I will admit this was my first social media conference, and a lot of the terms tossed around (social currency, gawker, foursquare, etc) were above my head.  Nevertheless,  I am determined to learn which of my social networks is most appropriate, most fun, and most developed to help grow my Startup Officer business.

Over the years I have haven’t used Yahoo or AOL chat in probably 4 or 5 years.  I joined Twitter in October 2008 under a personal handle (@pickmybrain) and quickly understood the force behind the simplicity of tweeting your mind in 140 characters and including a picture or weblink or shortened URL.  I also have a Twitter handle for Startup Officer (@startupofficer) but I am not 100% if this is how I want to be represented.  I am one person, not a large corporation trying to push/spin something into cyberspace.  I am looking to share my startup experience, learn from others, offer advice, and find prospective clients.  Unless @ev and and the “fail whale” can expand services and funcationality in the near term, Facebook will be my preferred method of social media.  Though, once this blog is done I will tweet it and the tweet will appear on my blog page.  It’s all connected.

I signed up for Facebook  shortly after Twitter mostly because my friends and family were there. I was reticent at first to be so connected at such a personal level.  I didn’t want to become a crackberry addict of FB always checking to see who was on, who posted a new picture, etc.  Then I realized that FB is a social media tool.  You only get out of it what you put in.   My goal is to build out my social network in New York, Connecticut, Massachussetts, Florida, and maybe even in the Cayman Islands.  I want to share my experienc with friends and family and make acquaintences based upon my interests (#startups, #porsche, #dmb, #travel, #tennis, #skiing, #wine, # hedgefunds, etc).

Links Related to Event/Panelists:

http://www.flightpath.com/

http://nysmrt2.eventbrite.com/

http://nysocialmediaroundtable.com/

http://twitter.com/nysmrt

http://playfoursquare.com/

http://twitter.com/foursquare

http://twitter.com/dens (run kitty, run)

http://twitter.com/naveen

http://www.facebook.com/

http://gawker.com/ ]]> http://www.startupofficer.com/2009/09/the-role-of-social-media-in-my-startup/feed/ 0 http://www.startupofficer.com/2009/09/monday-advice-plan-out-your-week/ http://www.startupofficer.com/2009/09/monday-advice-plan-out-your-week/#comments Sat, 12 Sep 2009 23:09:55 +0000 admin http://bgr.nimbusblue.com/?p=10

Okay, so really this should be weekend advice so that you start out Monday with momentum. But, if you are a relatively new startup like me, then you are still putting together your weekly and monthly schedule.

Here is mine:

Monday-Clean up Campaign

Go through snail mail, paybills, catchup on Twitter and Facebook messages, plan out the next two weeks of meetings, meals (if you like to do that kind of thing), sales calls, networking and meetup groups etc.  Make your list short enough that you actually can check off,  but meaningful enough that you feel good about what you have accomplished.  I hope to end the day with an ultra light workout (30-40 minutes of stretching, bounding, and light running) in Central Park.

Tuesday-Make it as jam-packed as possible

Get up early and have solid high-energy breakfast.  I have a mid-morning meeting with a manager of Regus (http://www.regus.com)  to look into flexible office space for myself and other clients.  In the afternoon I have 1 conference call.  The rest of the day I will be writing website content for a client.  Don’t look too far ahead, keep my head down with work.

Wednesday-Check In

Wednesday might be called the middle of the week but a startup is always working.  It is still important to check-in with yourself, amend your to do list, and see if anything needs to be added or subtracted/postponed.  The only planned event this Wednesday is a midday meetup with another alum of Dickinson College to see how his summer internship went and learn more about him as a person.  I guess Wednesday will become a sales call and networking day and fold in some more website development.

Thursday-Hustle and Flow

Thursday should look a lot like Tuesday but I won’t be scheduling any meetings.  It will be a day to hustle, finish up the content for my client and make a few calls to catchup with former colleagues and setup some sales meeting for end of August.  With the summer nearing a close, I will concentrate on September calls to action after Labor Day when people are back from the beach and mountain lakes.

Friday-Try Something New

I want to annoint Friday as a Try Something New Day. This Friday I will be heading off to Cape Cod for a weekend of visiting old friends.  While this isn’t something “new”, I will seek out something new while traveling.

It really doesn’t matter what your schedule is comprised of; what matters most is that you plan ahead, stick to your plan, and try to leave some time for last minute changes.

Tonight I attended the ULS Legal Roundtable at the NYU Polytech campus at 160 Varick Street in Manhattan.  The event hosted by Graham Lawlor (@generationg) was a soup to nuts freebie offered by Tedd Lustig of Seyfarth Shaw LLP.  As matter of full disclosure, Tedd is my counsel so obviously I have a biased opinion on incredible success of the event.  Neverthesless I took a lot of notes and would like to share with you what the audience wanted to learn about and what Tedd delivered.  Also, some of the content below comes directly from Tedd’s presentation that was provided to all attendees.

Quick corporate items:

• Follow me on Twitter @startupofficer.
• Startup Officer is looking for business planning services and a PR agency.
• A shout out to blog by BizBriefs (Twitter @bizbriefs) a strategic social media “CONTENT” planner and consultant who guides companies through the Web 2.0 arena while providing meaningful content for each organization he works with.

Topics of Interest Presented by Startups: Process of incorporating, documentation, issuing stock, attractive venture capital, S-Corp vs. LLC, contracts, juggling being a startup while still working a 9-to-5, terms of service/privacy policy, creation and protection of intellectual property, trademarks, copyright, incentivizing employees and partners, fixing prior legal mistakes, sector specific legal issues, takeouts, spin-outs, benefits of a corporate structure, pro-bono legal work, founders agreements, sweat equity…etc.

Introduction by Tedd Lusting: Starting a Company, Legal Pitfalls to Avoid

Why do you want to form/start a company? To separate personal liability from corporate debts and obligations.  To create a structure that is friendly for angel and/or venture capital investors.  Once you decide that your idea is big enough to have customers, partners, employees, supplies, etc, you want to create a corporate structure to shield you from personal liability.  This protection is not available as a sole proprietor or general partnership.  It is created when you form a LLC or C/S-Corporation.  There are also favorable tax consequences as these entities offer passthrough of income to owners.  In order to take full advantage of the corporate protection, you should not only officially become an entity but also operate as one so that somebody  cannot pierce the corporate veil.  This means that you need to have a charter, by-laws, board of directors,  and officers.  These documents (nomenclature for S-Corp is applicable to LLCs as well) show that you are really doing business as something other than the individual and provide necessary protection.

What are the steps in creating a company? While you can create a Delaware entity (or any other by yourself) I recommend that you get a lawyer involved early in your formation to help you through the documentation and filing process.  You can do it yourself for less, but you will be well served by enlisting a professional to help you determine the appropriate corporate form and produce key items specific to your model (non-disclosure agreements, invention assignments, terms of service, privacy policy, founders agreements, etc.)  Next up are public (charter, agent of service and process) and private items (by-laws, stock ledger, Board meeting/actions, equity plans).  Establish an EIN and then take it along with public docs to a bank and open a bank account (again, separate personal and business banking).

Top 10 Pitfalls of Starting a Company:

1. Do not think that legal documents are a substitute for trusting your founders, employees, investors, customer or business partners.  This is a way of saying make sure you have got a grasp on the human part of being a business owner.  Things do go wrong so it’s important to have a cooperative and collaborative set of partners so that you can manage everyone’s expections.
2. Do not make deals too complicated or change the terms of your deals (unless you can afford it).  If your deals/documents aren’t easy to understand it will cost more to draft/review.
3. Do not assume that your Company owns its intellectual property. You need to prove ownership through documentation.  Example here is that don’t let someone else reserve a domain name on your behalf because then they will ask for money to turn it over to the Company.
4. Do not sign license or development agreements without carefully scrutenizing them. The devil is in the details, seek help to review documents and ask questions if you don’t understand a paragraph.  Further, don’t draft every document yourself unless you are proficient.  You may leave out key language of protection or give away exclusive rights without meaning to do so.
5. Do not think that you can just sell anybody stock/equity in your Company. This one is big–there are regulatory laws and procedures to offer and issue stock.  Investors need to be accredited and you need to file with appropriate federal and state agencies.
6. Do not allow your stockholder base to get too large.  The harder it is to communicate, align interests, and get consensus on corporation actions, the more costly/less efficient it will be for approval.
7. Do not allow minority stockholders to cripple the Company.  Similar to point 6, you want to be able to run the Company without having every Tom, Dick, Harry, Mary, Sue and their 1,000 closest friends be able to micromanage.  You can avoid this by having the appropriate stockholder provisions (restrictions) and implement corporate first rights of refusal should they want to sell their shares/interests.
8. Do not let angel investors purchase equity.  Most angels don’t have a true sense of valuation (and neither do you as a new startup) and therefore you do not want to dilute existing investors by accident.  A more appropriate way to treat an investor is to issue a convertible promisory notes that will will have a conversion/price at a later offering date.
9. Do not promise anyone a percentage of the Company.  Again, you don’t know the valuation and you don’t want to be burned in the future by a former employee/founder coming by years later asking for 25% of something that may have no value before but lots now.  Instead, issue shares in a formal agreement.
10. Do not give unrestricted stock to founders.  Instead have a provision whereby the longer a person stays, the more liquid and and less restricted the stock becomes.