15 tips for starting your own start up company

Category Business | Permalink | 5. April 2007

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in this post i would give a few tips for any one out there who consider to start his/her own company from my experience after i have done almost every mistake in this list hope it helps.

try to solve a problem that hurts you and not do not try to guess what other people need most chances you are wrong trying to figure out other people.
even if you give your product for free try to imagine how many users will pay 1$ to use it.
if it’s not worth 1$ it’s not worth for free.
choose the right people to work with you need a technology expert, CFO for the money and a marketing expert. you don’t need to much people in your leading team and pick them carefully the first 5 people is what makes the company.
choose the right technology do you remember how many start ups decided that Java applets is the right web technology back in the 90s…. where are they now?
the best tip here try not to be the first to use (for example don’t be the first to develop a java app for windows vista) and always pick the technology that is best fit for the user (and not what your technology guys knows).
know your customer, if you are facing the consumer then know who is he/she, try to gather as much information has you can on your user and fit your product according to his/her needs (for example do not try to sell a Paris Hilton stuff to someone older then 21). the same goes to B2B.
know the law if you have a great idea but it’s illegal (for example a service that let you download songs for free) try to think of legal use for it or drop the idea (no one will put his money on piracy company)
how are you going to make money? free is nice but how are you going to earn money try not to write down advertising VC’s don’t like this model (and frankly neither do you).
how are you going to recruit costumers? no one cares about your company but you… you need to think how are you going to get costumers (letting Google index and buy some ad words is not enough).
make a good business plan no one read it after the executive summary but everything has to be in there if you don’t know to write one hire a pro for 5000$ to write you one.
build a small no more then 25 slides presentation do not over load it with information and do not write slides about Gartner or some other research group saying your niche is going to worth billions (your investors saw them all and they are not impressed by it).

don’t over pay your self no investor will invest on a start up that let his entrepreneurs a huge pay check.
get a good usability expert and designer every product can’t based only on technology it has to be user friendly and look good (even if you have a great product if it’s look bad no one will use it).
be ready to loose your self-respect, investors (mostly VC’s) will tell you that your idea is crap, there are millions just like you.
do not give up.
prepare an answer about your barrier. every investor like to ask it.
do not tell him that Microsoft/Google/yahoo are stupid and slow… think on something else.
choose the right investors some investor will try to change your company remember when coming for an investment it’s not just they are checking you, you are checking them too don’t take money from people you are going to fight with, it will kill your company.
no one like to loose money remember even if your investor is a billionaire he still hates to loose money even a few millions, make sure you let your investor know you spend his money wisely.