@tawheed:
My notes from @msuster’s talk at @500Startups
1. Do pick a name for your company that no one can pronounce
2. Don’t wait for the “right age” - get going now, start young, start early, there is no time limit. You can take any risk when you’re young. It becomes order of magnitude harder as you get older.
3. Do work on stuff you’re passionate about.
4. Don’t raise too much money. Too many high expectations. Fundamentals do not change, don’t get too drunk off of your own koolaid.
5. Don’t have too many co-founders. Don’t take on a cofounder at Startup Weekend. It’s like meeting someone and getting married in Vegas.
6. Don’t push PR before your product is ready. Don’t set expectations you may not be able to live up to.
7. Don’t launch too many products all at once.
8. Don’t internationalize too early.
9. Do build a team that complements your skills.
10. Don’t hire the bullshit overpriced non-operational people when you’re early.
11. Do know whether you’re a Shaper vs Completer/Finisher
12. Don’t hire too senior of a team. Hire people who punch above their weight class.
13. Don’t be conference ho.
14. Don’t try to run a burger chain if you’ve never flipped burgers. Understand and be involved in all the components of your business.
15. Don’t charge too much money relative to your market.
16. Don’t become a prostitute for revenue — ie Don’t just say yes to any customer.
17. Do think about selling your company. 8% of your time should go to meeting people that might buy you. This opens up all kinds of opportunities.
18. Don’t stay too long. See #3 re:passion.
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Tips on Funding:
1. Raise for 18 to 24 months
2. Decide on whether you’re on the Express or the Local. How much money you raise and from whom dictates what your minimum acceptable price is. Think hard about life and what you’re in it for.
3. Start Lean. When you have PMF, double down and go Fat.
4. You need to go Fat if you want to compete with the likes of FB, Yelp, etc.
5. There are about 50 >100m exits every year. Most of those companies have raised a ton, and a lot of those founders have made sub-1m.
6. If you can raise the money, you should. Don’t try to overoptimize. It doesn’t mean you have to spend it all.
7. Don’t herd cats when raising seed/angel round. Get one anchor.
8. Don’t cold call. Get a warm intro.
9. Beware of Gym Salesman VCs.
10. If it doesn’t feel good when you’re courting, imagine how you’ll feel when you’re married.
11. Don’t ignore the macro economic conditions: Unemployment is high, State/City cutting back, housing stock overhang, stagflation, political malaise in DC, etc. These things do impact funding, markets and your business.
12. The market is flowing right now. Get it while it’s good.
13. Go raise the money.
