Comments on: Most Common Early Start-up Mistakes http://www.bothsidesofthetable.com/2009/08/17/most-common-early-start-up-mistakes/ Entrepreneur turned VC Mon, 14 Nov 2011 23:37:00 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Mailing Fulfilment Services http://www.bothsidesofthetable.com/2009/08/17/most-common-early-start-up-mistakes/comment-page-1/#comment-21920 Mailing Fulfilment Services Tue, 04 Jan 2011 16:00:17 +0000 http://bothsidesofthetable.com/?p=731#comment-21920 There are some excellent tips here thank you Mark. There are some excellent tips here thank you Mark.

]]> By: MeXaHuK http://www.bothsidesofthetable.com/2009/08/17/most-common-early-start-up-mistakes/comment-page-1/#comment-21595 MeXaHuK Mon, 20 Dec 2010 21:50:23 +0000 http://bothsidesofthetable.com/?p=731#comment-21595 I have a question. You are talking about a tech start-up here where building a prototype is relatively inexpensive. How about other industries? I have a real-estate start-up and building a prototype without raising a capital first is impossible. I did a market research and financial model and I am ready to talk to investors to raise capital to open a first location. Should I build it out in full scale and call it prototype for the next round of financing, or should I build a scale down version to really test the market first? I have a question. You are talking about a tech start-up here where building a prototype is relatively inexpensive. How about other industries? I have a real-estate start-up and building a prototype without raising a capital first is impossible. I did a market research and financial model and I am ready to talk to investors to raise capital to open a first location. Should I build it out in full scale and call it prototype for the next round of financing, or should I build a scale down version to really test the market first?

]]> By: Rharrison12 http://www.bothsidesofthetable.com/2009/08/17/most-common-early-start-up-mistakes/comment-page-1/#comment-21530 Rharrison12 Thu, 16 Dec 2010 20:31:13 +0000 http://bothsidesofthetable.com/?p=731#comment-21530 Loved reading this article, very good advice. Thanks very much Loved reading this article, very good advice. Thanks very much

]]> By: Coniferousone http://www.bothsidesofthetable.com/2009/08/17/most-common-early-start-up-mistakes/comment-page-1/#comment-21425 Coniferousone Tue, 14 Dec 2010 05:39:24 +0000 http://bothsidesofthetable.com/?p=731#comment-21425 9. Founder Vesting: I strongly disagree with this idea, at least without significant mitigating discussion. For example, how is one to handle a situation where founders initially split the initial investment, and equity is based on this split. Several may be working, others may just front the money. It strikes me as highly unethical, as someone who has experienced this situation as an investor/employee to retroactively determine that someone's previous investor-only (an investing non-employee) investment is somehow 'less valuable' as time goes on. A drop in relative percentages may certainly be appropriate, but it should be accompanied at the very least by a tangible, provable increase in the overall stock valuation. My percentage stake may go from %30 to %20, but the value of it as an asset should not drop from $300 to $200. This sort of approach may be something one could expect from Uriah Heep, but it is behavior of a sort that I do not believe ought to be tolerated. 9. Founder Vesting: I strongly disagree with this idea, at least without significant mitigating discussion. For example, how is one to handle a situation where founders initially split the initial investment, and equity is based on this split. Several may be working, others may just front the money. It strikes me as highly unethical, as someone who has experienced this situation as an investor/employee to retroactively determine that someone's previous investor-only (an investing non-employee) investment is somehow 'less valuable' as time goes on. A drop in relative percentages may certainly be appropriate, but it should be accompanied at the very least by a tangible, provable increase in the overall stock valuation. My percentage stake may go from %30 to %20, but the value of it as an asset should not drop from $300 to $200. This sort of approach may be something one could expect from Uriah Heep, but it is behavior of a sort that I do not believe ought to be tolerated.

]]> By: Handmade Knitwear http://www.bothsidesofthetable.com/2009/08/17/most-common-early-start-up-mistakes/comment-page-1/#comment-20696 Handmade Knitwear Wed, 01 Dec 2010 15:05:13 +0000 http://bothsidesofthetable.com/?p=731#comment-20696 I think there is a lot to be said about preparation. We have recently set up a new company in the fashion industry and have spent the last 12 months preparing for the launch. This included the premises, materials, a website, and of course everything financially behind the scenes. We have a whole host of trade shows to visit in our attempt to market our company, and all of this was penned in a long time before the company launched. Admittedly we are a very small company so the planning may not be anything like that of a larger set up however the same rules apply. There's some great advice here. I think there is a lot to be said about preparation. We have recently set up a new company in the fashion industry and have spent the last 12 months preparing for the launch. This included the premises, materials, a website, and of course everything financially behind the scenes. We have a whole host of trade shows to visit in our attempt to market our company, and all of this was penned in a long time before the company launched. Admittedly we are a very small company so the planning may not be anything like that of a larger set up however the same rules apply. There's some great advice here.

]]> By: Wills Online http://www.bothsidesofthetable.com/2009/08/17/most-common-early-start-up-mistakes/comment-page-1/#comment-20296 Wills Online Tue, 23 Nov 2010 15:05:00 +0000 http://bothsidesofthetable.com/?p=731#comment-20296 When starting out nowadays i think it's worth contacting organisations like SeedCamp who specialise in supporting entrepreneurs. They can give you invaluable tips on getting off the ground and ensuring that your new business does not stagnate. When starting out nowadays i think it's worth contacting organisations like SeedCamp who specialise in supporting entrepreneurs. They can give you invaluable tips on getting off the ground and ensuring that your new business does not stagnate.

]]> By: How to Work with Lawyers at a Startup | CloudAve http://www.bothsidesofthetable.com/2009/08/17/most-common-early-start-up-mistakes/comment-page-1/#comment-840 How to Work with Lawyers at a Startup | CloudAve Wed, 27 Jan 2010 13:40:22 +0000 http://bothsidesofthetable.com/?p=731#comment-840 [...] 1. When to get a lawyer - If you plan to be a venture or angel backed technology company (what I mostly write about) the best time to start meeting and getting to know lawyers is long before you ever start your company.  Many people start companies arse backwards.  They get together with a few buddies, bounce around ideas, build some code (sometimes internally, sometimes through contractors), start talking to potential angel investors and then register their company.  This is one of the biggest source of future problems for the company.  I write about some of the lessons in my post on Startup Mistakes. [...] [...] 1. When to get a lawyer – If you plan to be a venture or angel backed technology company (what I mostly write about) the best time to start meeting and getting to know lawyers is long before you ever start your company.  Many people start companies arse backwards.  They get together with a few buddies, bounce around ideas, build some code (sometimes internally, sometimes through contractors), start talking to potential angel investors and then register their company.  This is one of the biggest source of future problems for the company.  I write about some of the lessons in my post on Startup Mistakes. [...]

]]> By: Knowtu » links for 2010-01-21 http://www.bothsidesofthetable.com/2009/08/17/most-common-early-start-up-mistakes/comment-page-1/#comment-839 Knowtu » links for 2010-01-21 Fri, 22 Jan 2010 01:06:06 +0000 http://bothsidesofthetable.com/?p=731#comment-839 [...] Most Common Early Start-up Mistakes (tags: startups entrepreneurship) [...] [...] Most Common Early Start-up Mistakes (tags: startups entrepreneurship) [...]

]]> By: How to Work with Lawyers at a Startup http://www.bothsidesofthetable.com/2009/08/17/most-common-early-start-up-mistakes/comment-page-1/#comment-838 How to Work with Lawyers at a Startup Thu, 21 Jan 2010 19:55:03 +0000 http://bothsidesofthetable.com/?p=731#comment-838 [...] 1. When to get a lawyer - If you plan to be a venture or angel backed technology company (what I mostly write about) the best time to start meeting and getting to know lawyers is long before you ever start your company.  Many people start companies arse backwards.  They get together with a few buddies, bounce around ideas, build some code (sometimes internally, sometimes through contractors), start talking to potential angel investors and then register their company.  This is one of the biggest source of future problems for the company.  I write about some of the lessons in my post on Startup Mistakes. [...] [...] 1. When to get a lawyer – If you plan to be a venture or angel backed technology company (what I mostly write about) the best time to start meeting and getting to know lawyers is long before you ever start your company.  Many people start companies arse backwards.  They get together with a few buddies, bounce around ideas, build some code (sometimes internally, sometimes through contractors), start talking to potential angel investors and then register their company.  This is one of the biggest source of future problems for the company.  I write about some of the lessons in my post on Startup Mistakes. [...]

]]> By: Joe Beck http://www.bothsidesofthetable.com/2009/08/17/most-common-early-start-up-mistakes/comment-page-1/#comment-9253 Joe Beck Mon, 14 Dec 2009 23:58:53 +0000 http://bothsidesofthetable.com/?p=731#comment-9253 Most software developers get really pi*ssed off when people/friends ask them to write code for little or no money, even in return for stock options (which, 99% of the time, turn out to be worthless). If you were developing property, you would have to PAY the architect from Day One, even for just drawing a few rough pictures. Why does everyone assume programmers will be happy to work for magic beans?<br><br>Writing the code is the bulk of the work in developing a web business, and takes the bulk of the professional knowledge and experience. Unless you're going to make them an equal partner in your business, don't expect good programmers to work for peanuts (or fresh air). Most software developers get really pi*ssed off when people/friends ask them to write code for little or no money, even in return for stock options (which, 99% of the time, turn out to be worthless). If you were developing property, you would have to PAY the architect from Day One, even for just drawing a few rough pictures. Why does everyone assume programmers will be happy to work for magic beans?

Writing the code is the bulk of the work in developing a web business, and takes the bulk of the professional knowledge and experience. Unless you're going to make them an equal partner in your business, don't expect good programmers to work for peanuts (or fresh air).

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