O.K., now we’re at the end of January. What have you done so far? How is the year going? Good pace or need to speed it up?
11 months left in 2020.
Venture…
Update 12-30-2019:
O.K., now it’s the beginning of another week of limited productivity. That’s a unique opportunity for all of us. Use this week to get ready for a stronger 2020. Write down your goals, be very specific, make deadlines. Vague, unwritten goals are meant to be broken.
Go stand on a mountain or go to the beach and look out at the vista. Now is the time.
Happy 2020!
From 12-21-2019: From about a few days ago until about January 6th, things will be pretty quiet in your professional life, as they should be. It’s a time to reflect, be with family, eat too much, watch old movies –– whatever you do during these two weeks. You’re probably at home this week, or rushing around for last minute prep for the holiday.
But it’s also a time when your mind is still working, in fact working better because you don’t have the the Urgent stuff to work on, the responsibilities, the little things, and most people have their minds switched off of work this week.
I’ve had some of my best business thoughts, ideas and transactions during this 2 week period. One time I recovered a major piece of business from a competitor because they weren’t willing to meet their “new’ major customer on December 27. We took the meeting and took $15 million away from them.
I now love December 27th, it’s one of my favorite days of the year.
But you don’t have to have any transactions; you can think about next year, plan it out. Think bigger thoughts. Or meet up with people you’ve met this year if they have time. I do that a lot, too.
I once started a new sales job on December 21st for a software company. My new employer told me that I could take the first 2 weeks off (with pay!) because they were on vacation. I decided to ahead and show up on the 23rd. As I sat there alone in our office in Los Angeles, the phone rang, so I answered it. It was our VP of Sales calling to welcome me to the company. He had decided to work that week also.
We talked for awhile on the phone, then he invited me to fly up to San Jose the next day and have lunch with him. I did, and that lunch changed my entire trajectory at that company.
So, put the business task list away, enjoy your family and friends, but allow your mind to think, brainstorm, build your momentum for 2020.
And if a major prospect wants to talk on December 27th, take the call.
Yes, freelancing is hard. it’s much more difficult and less steady than the good old paycheck.
The Traveling Web Developer
Every week I meet a new web developer or content developer or social media freelancer online who tries to make traveling their number one priority in life, using their freelance work to support it. That’s pretty hard to argue with, kind of a dream come true for many of us, a reordering of your priorities to being able to see the world while having an income at the same time.
I’m sure not all of them are as successful as they claim, but many are thriving. WordPress development seems to be a popular choice here. You can get $1,000 to $10,000 to build a site that takes 1-4 weeks if all the stars align correctly.
And there are a lot of WordPress sites to be built. That could all change, but for now a laptop, lots of free software, and a Mai Tai is all you need. And instead of a boss, you have clients. People get very creative in mixing travel with freelancing – Winnebagos, third world countries, cabins in the mountains. This could also possibly be done when creating a startup and being a real entrepreneur, but it’s much more difficult. I wouldn’t recommend it.
The Traveling Travel Blog Blogger
This growing sub-genre of freelancing seems to be growing quite quickly, a lone person or often a couple will start a blog about their travel experiences, logging each day with words and pictures. They try to use the revenue they make from selling ads and their travel photos to finance the journeys.
It sounds like another dream come true. It’s difficult to see how you could make enough to live on just blogging, unless you were really good at it, but I’ve seen hundreds of these lately. Most admit on their websites that they supplement their blog income with money from travel-related sponsors, building websites, and even taking jobs on the road (like teaching English or working as SCUBA instructors).
Whether they make much money or not, power to them for the choice they made.
WHAT WOULD SETH DO?
Seth Godin is another one of my favorite pundits on several topics but definitely a bold leader in talking about differentiation, hacking the core and freelancers. He has a great way of explaining the problem with positioning yourself as a freelancer. Basically, Seth’s theory is that if you’re performing any job for someone else that is not extremely unique, your employer or client is incentivized to replace you with someone cheaper.
Why? Because they can. Why shouldn’t they?
It’s just smart business. He covers it in his book We Are All Weird. Another way to drive the point home is to look at offshore freelancers. Almost any replaceable skill can now be found in India or the Philippines for $5-10 per hour. So it boils down to offering a service or product that is either in higher demand than supply, or that you yourself are able to offer cheaper.
We have a giant contingent of freelancers in the workforce marketplace now, due to large companies drastically decreasing the amount of people that they are willing to hire as full-fledged employees with benefits and longevity. This makes it even harder to differentiate yourself.
The lesson here is that even in the field of software development, which thousands are flocking to currently, you must differentiate yourself. Avoid being seen as a commodity.
This site [ tomnora.com/blog/ ], is my new Command Central for all my work related content –– Podcast, Business Writings and Rants, Tech Advice, Design Thoughts, and all things related.
I will also post excerpts from my books HACKING THE CORE and the upcoming CEO book.
Occasionally original art and photography will be showcased, my own and others. Here’s a sample…
I get approached often by tech startups looking for their first outside funding. They come in lots of different flavors and stages of fundability. Most are making major mistakes in their approach when seeking capital. Remember, this is a professional process you are conducting with legal and financial processes.
One of the easiest mistake to fix is timing.
In their quest for sustainable growth, the elusive dream for most first time founders is that first funding. The idea of outsiders entrusting them with a million dollars to spend is intoxicating. This article is based on my experiences and the typical mistakes I see every week in startup land.
High growth startup companies need seed money to get things going. Without funding most tech startups will die. This can either come from the founder(s) own bank account or from outside investors.
They need the money to rent offices, hire staff, and establish their initial presence (website, incorporation, marketing). Most important is that they need to grow into a real company quickly.
The last point above is important — high growth. Without seed funding most startups seeking high growth won’t make it. They need too much capital to keep pace with the market and their competitors. Capital = Growth.
When launching your company there are 2 times to raise your outside seed funding, and one time window to avoid.
Option One: Before you launch — when you are just starting, probably no product or service yet.
Option Two: Once your product or service is up and running and gaining traction. In between those times it’s pretty tough.
If you’ve already soft launched, have a product available, are telling the world about your awesome company but don’t have revenue/user growth, you’re probably in the red zone. This is not a good time to ask for outside funding.
Option Three: Or don’t raise funding. If you’re bootstrapping, you don’t need to worry about either of these options. Your strategy is to create growth with little or no money. There are several great examples of technology startups that do this. Most grow more slowly, but the longer term growth curve can be pretty impressive. They also have the enviable lifestyle of no outside investors.
This article focuses on the first two options…
Option One: Raise before you launch (Pre-Launch)
If you take this approach, you need to have built a relationship with the potential investor — a cold inquiry (a common mistake) hardly ever works and you can ruin your first impression to investors. The “idea” must be well thought out, there needs to be a team or potential team, the presentation needs to be very good, confidence must be high.
At this stage you’re essentially selling yourself and your cofounders. You are being judged on your resume, trust and the excitement you can build. That’s why much early stage funding is “Friends and Family”; your friends and family naturally overrate you and/or can’t say no.
Also, people who know you from your career are great sources, if they have had success or other positive relationships with you in the past, and want to work with you in the future. They’re betting on you.
Pre-launch funding is pretty common in Silicon Valley, but that’s a unique case. There are so many Facebook/Google/Apple multi-millionaires who receive new stock options every quarter, often a few hundred thousand dollars every quarter, that feel they should put something back into the system, plus they like the idea of being an investor.
Statistically they usually lose their investment, but that’s o.k., it’s one step closer the the next winner. They risk money they can afford to lose. They are comfortable with “risk investing” more so than anywhere else in the world.
But to get that Silicon Valley angel funding you have to be part of that social network; most of the rest of the world doesn’t have that frothy environment.
Option Two: Post-Launch — Raise when you start getting traction
To me, this is the best time to raise your seed. You’re less vulnerable, pay less equity for your funding, and you have some very specific things to talk about.
PreCog Security, a company I am currently helping to build as cofounder, is taking this approach. As we prepare for our first funding we are assembling a value chain from partners and vendors to clients. Every day it gets a little better and our brand name gets a little more well known.
So far we have no office, minimal travel and other cost cutting, but we are slowly getting stronger and our outside funding needs are getting more strategic. And we will have plenty to talk about when we sit in front of potential investors.
When you delay your raise until post-launch it’s harder to get that early stage super-growth that’s required in some niches and you don’t have the good type of scrutiny from outsiders analyzing your moves. But you also don’t get the bad type of scrutiny, especially from friends and family.
You have the freedom to build your foundation and make very quick decisions. Also, if you can build a nice little group of advisors and partners you will have the added momentum from all those people as well as some potential future employees.
In summary, which is best for you depends on your skills, what you’re building and your own tolerance for no income. Whichever you choose, keep your eye on the goal, believe in yourself and your team, read a lot of inspiring articles and drink lots of coffee. Good hunting.
This article is an excerpt from an upcoming book about Startup CEOs by the author.
This article is a quick note to answer the many inquiries I get about finding the perfect cofounder.
Over the past few weeks I’ve been casually looking for someone to work with, to develop and market a suite of mobile applications (iOS, Android) for the entertainment world. I’m describing this other person variously as a cofounder, partner, CTO, and collaborator.
The focus has been on someone with the right combination of technical experience/excellence, mutual chemistry, plus the right timing and inclination in their lives to do this.
I’ve asked around, talked to friends and even put a little ad in craigslist in Los Angeles. Through all this there have been many responses, some very positive, and some pretty weird. I realized what I’m doing is inadvertently conducting a social experiment here.
The explosion of mobile phones and mobile apps has created an almost visceral response when you mention mobile, or Droid, or especially iPhone, or iPad. Everyone wants to have a connection with it, whip out their smartphone, show you their aquarium screen saver.
You either have one or wish you did. When I was a child, it was having the newest Schwinn bike, in a cool color. $37.95. Or the latest hot record album. You either had them or wished you did.
Now it’s another computer device that you can carry with you, is “always on”, and can do almost everything (and plays the latest hot album). Suddenly waiting in line somewhere you can instantly become productive if you want, or play a game.
If you carry this one step further – actually being involved in developing and deploying mobile apps, it’s even more compelling. A higher level way to become part of the society and possibly make some money.
COFOUNDER FOCUS
The focus should be more on the functionality or enjoyment or how you’re improving the world, but it’s not – it’s more the idea of being part of this new baby-app world. The result is many apps and businesses that come and go quickly.
Over 2,200,000 iOS apps are deployed plus equal amounts of Android and others. Most are unused or have a short lifespan and very little revenue. It’s more of a hobby or personal challenge than a scalable business.
In looking for a co
founder, I’m searching for the combination that will allow us to build a long term growth company, scalable and adaptable over several years. I want to create long term jobs and products people will use. That’s not the sentiment of most CTO-types I talk to. They want Cash Now, to be paid for their work by the hour/project.
KEEP LOOKING
I see the economy has changed the focus to short term survival, not entrepreneurship (except in Silicon Valley). People believe they can learn app dev in 3-6 months and then create their own long term income, and they’re right on the mark in many cases.
Aside from revenue generation, mobile apps are needed for basic business existence in most areas. Almost all companies are retooling their public image while also increasing their ability to market real-time. The mobile phone/pad is becoming central to our lives, more than our computer in many cases.
I’m going to keep looking for a cofounder. I’ve been lucky enough to create a few new products in this world that stick, which creates the backbone of scalability, I’m having more fun in this new domains than ever before. If you know anyone, send them my way. @tomnora @cowlow