Guest Post- Homework for the Perfect Startup

October 25, 2008 · Comments

Andrew Hyde The following is a guest post from Andrew Hyde, founder of Startup Weekend and all around clever thinker. If you ever see this guy at a conference, make a point of introducing yourself. He’s all that and a bag of chips.

Homework for the Perfect Startup

I sometimes refer to a great team with a strong idea as the Perfect Startup. Somewhat like the perfect storm, quite a few things have to come together. So if you are thinking about a startup in the next few years, here is some simple homework to create that perfect storm.

  1. Get Out of Debt

    Any debt is bad, and will make it harder on you. Michael Sitarzewski wrote some practical tips that worked for him. Remember, if you are looking for investment, quite a few angels will look for you to have some skin in the game

  2. Become a Nerd of Startups

    If you are interested in doing a startup around and area, know every startup in that field, sign up for them, use them, become powerusers. Map out their sites, notice how they message their users and figure out why you like and don’t like them. You will learn quite a bit from this. Michael has a great post on this..

  3. Find a Kick Ass Team

    This is the best thing you can do for yourself. Your team should be 2-3 people, with strong technical memebers. Work on smaller projects together. As Brad Feld says: Trust is Essential.

  4. Be Known

    Did you hear about that new startup that launched without any friends in this area? Me either. Comment on peoples blogs. Add value. Write a ton of emails. Volunteer to beta test. Send bug reports in. Help out the community. Help organize events. Gary Vaynerchuk has a good post on this (the 2nd half of the video)

  5. Go to Conferences

    Go to SXSW, Web2.0 (especially the open) and as many local events as you can afford. Learn and get some friends.

  6. Find Great Mentors

    I think I have said this before, but it is slammed into my head by TechStars. It is the best thing you can have as a startup. Find them early, and listen as much as you can.

  7. Who Do You Work For?

    Know any conflicts that would keep you away from starting something. If you work for a iphone development firm, and have signed away your IP, starting a competing iphone development firm can be a bit tough, especially if you are seeking investment. Keep a copy of everything you sign and do you best to not sign away your IP.Andrew Hyde is founder of Startup Weekend. Learn more about him at AndrewHyde.net

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  • I think you make some great points. Two things that I think are missing. 1. Have a plan, not just in your head, write it down, have a version that is the "journal" of your company and one that you can present to people who might want to partner, invest or join you. 2. How are you going to monetize what you are doing? What is the marketing plan, how will it sell, who will it sell to and why will they buy it.
  • Andrew, Thanks for this post. As co-founder of a startup this really comes in handy and gives me ideas of what we could be doing better to get the word out. We are doing a lot of these things already, but can always use tips like these to keep us on task and do more. Great tips. Looks like i need to finish my homework :)
  • Great post and tips, particularly about knowing and being known: So important to do your research, but then also network with others in your genre. When you know what you are talking about, the others will listen and be more inclined to share their information with you. Everyone wins.

    Could we get a link to Michael Sitarzewski's get-out-of-debt tips?

    Thanks!
  • Bonin
    These points and comments are wonderful and spot on. I would also add, don’t just limit your resources to the traditional circle of funding and startup resources. The following example might be specific to marketing/communications/services agencies, but I think in many instances the value and opportunity these type of companies present is over looked. Agencies are always looking for ways to develop competitive advantage which includes hot technology and thinking. It also goes beyond just purchasing a company once they have technology developed, in many instances they can be a strategic partner even before one piece of code is written.

    For example when I was running the Weber Shandwick digital practice, Radian6 came to me with just a piece of paper containing requirements and asked me to be a part of an early adopter program. We had the chance to help shape the product and ultimately we became one of their first major clients, which led to a global agreement across IPG and helped during future funding rounds. Imagine going to a VC with a client our size, that has a cadre of brands, already on board?

    As early adopters we gained a significant competitive advantage and they gained their first global client. We provided access to a global client network and when you think about it a global sales channel and local market understandings which helped shape the development of the tool. For example when they rolled out in Russia we had local experts help them work through the nuances of that market, even beyond just language to pricing, sales approach, etc…

    In many instances I think startups look beyond the power that agencies can bring to the table and also think they have to have product ready before they can approach an agency.
    Just some Saturday morning college football thoughts.
  • jonnygoldstein
    Good stuff, Andrew. I think a lot of it is applicable to starting any business--tech, or non-tech. Like if I were going to open a bakery, I would want to be a bakery geek. Hope life is good out in Boulder.
  • Overall, these tips feel more like "bootstrap" startup suggestions rather than "venture backed" startup suggestions (although networking and understanding the space work for all startups).

    If you are venture backed startup or looking to be a venture backed startup, the first point should be "get out of PERSONAL debt" or at least make your personal debt managable. Its okay for the startup itself to carry debt (most will use debt rather than equity to finance capital expenditures for example), but as a founder, it becomes much easier to secure SBA loans, equity lines of credit, etc. of your personal credit is in good shape.
  • @simon salt Great points, I would lead to really working on those once your team is set up. Both are needed. I gave a presentation at OSCON on paper prototyping and how important it is.

    @Jeff O'Hara Very interesting startup, would have loved to use this in my classes

    @Lainie Petersen the link is here: http://is.gd/4QYU

    @Bonin funding is a much bigger can of worms :)

    @jonny goldstein It is funny how similar they are! Life in Boulder is awesome!
  • I'm right there with you on those steps. This is how I have done so far according to your advice:

    1. Get out of debt: I still have $10,000 in student loans. I left my job as a consultant to become an entrepreneur, so I'm basically living off my savings right now. It's very tough

    2. Become a nerd... of startups: Check! I am pretty much signed up to every social media site out there. I have also done my homework to see who our competitors are.

    3. Kick ass team: Check! My team is freakin amazing! I would gladly build startups with them for the rest of my life!

    4. Be known: I'm working hard to build my personal brand and the company's as well. This is what I'm doing:

    - Future Delivery TV
    - Living the Startup Life

    5. Go to conferences: I go to as many as I can

    6. Find a mentor: Still looking for one.

    Great post, and hopefully I will be in a much better position (financially) when our product launches in 3 weeks!

    - Jun Loayza
  • Great tips - I think these are definitely separating me from getting to the next step in my field.

    Thanks Chris.
  • I guess i should read better... I mean Thanks Andrew and Chris. haha
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