Startup Blog

We Are Not in Kansas Anymore

2012-03-08T09:30:00.001-05:00

History has always had a major impact on the future and the same is true for the future of startups and entrepreneurs. Past successes and failures will always be part of the guiding principles for every entrepreneur. Entrepreneurs review history of businesses and use that information to try to gain advantages in their new company. There is nothing wrong with using the history to guide your new business ventures, but there is sometimes a complication. The ability to translate the history to the present and future is not linear.

Over the last 20 years, I have seen countless companies developing a new product line anticipated to be a major improvement on what is currently in development or on the market. The companies go out to raise capital but to the surprise of management, the investor-meetings are few or the investors do not show interest. One of the underlying issues is that even though the newest and greatest technology is the focus of the NewCo, prior companies with related technologies have burned investors in the area.

I often joke that my scientific career has included research on disease targets that have killed more investors than patients. Look at a few areas when you get time: septic shock, blood substitutes, antibiotic peptides are just a few examples. While the cancer immunology market place is immerging, the score is 950 failures in the clinic with only one approval. A recent review by a respected group suggests there will be more than 4 approvals of products in the space by 2015. However, the landscape is filled with investors that have lost funds on technologies in this space. Even the one drug approval that Dendreon (DNDN) achieved has caused disappointments recently due to failure to meet earnings expectations. Similar disappointments occur in most other technology areas; this is not just a biotechnology issue.

In the early 1980s, startups were met with significantly greater funding opportunities. Why not, it was the new thing and prospects seemed great. The 1990s drove the technology companies to great valuations and IPOs in this sector were amazing. 2000 showed a downturn that caused many to lose more than 70% of their net worth if they had heavy investments in technology. The time from 2001-2006 was described by one friend as the nuclear winter of financing; trying to raise capital was horrible! Many of the venture funds had lost money for their investors. In one discussion with a major financier of venture funds, I learned they had decided to limit investments. The changes in investing patterns of this group and many others caused many of the venture groups to rethink their goals; some folded.

The economy is picking up, but investors are only getting back to their levels of 2007. Some will never return to their levels of 2000 before the start of the downturn. So what does this mean for you and your startup?

· History is great but make sure you also use your interpretive skills to predict the present and future in a realistic manner. Otherwise, you may head down a more difficult path than you need to tread!

· When looking at your product or technology area, keep it simple. New and improved is great, but if all the prior companies in your space lost funds for investors, you will have a major problem convincing the investor community you will be successful. Remember, they lost money in this sector. Your NewCo will have “guilt by association”.

· Seek great technology, management, and be able to stand-alone. The more you can separate your business from the crowd and the more exciting & realistic the technology looks, the better your NewCo may look to investors. Investors love sizzle and excitement in the technology, but they also have become more savvy and discriminating when it comes to making their investments. You may be a serial entrepreneur, but they may view you as a serial killer depending on your prior ventures.

· Drop the HYPE and SELL REALITY. They will figure the truth about the business anyway. Why not show them how they will make money and how you can manage. Sizzle is important, but investors do not like so much SPIN that they view is as lie; the truth will set you free. Your image will follow you to each venture beyond the one you are pitching now.

· When reviewing the history, above all remember: “We Are Not in Kansas Anymore” so make sure you adjust your strategy accordingly.

You can follow Taffy Williams on Twitter by @twilli2861 and you can email him with questions at twilli2861@aol.com and his company website , photo website, or like ColonialTDC on Facebook. You can also find him in the group Startup Group on Linkedin. Other articles can be found in the Charlotte, NC- small business section of Examiner.com. This blog is now listed on StartUpRoar and on Alltop®.

Collaborating and Investing in the Indian Life Sciences Industry

2012-03-07T08:36:00.000-05:00

Slide Show on Reverse Merger

2012-03-06T16:29:00.000-05:00

Try With All Your Might. You Will Never Get It Right!

2012-03-05T15:17:00.000-05:00

Agreements are an essential part of business. In my article, “If It Walks and Quacks Like a Duck, IT MUST BE A DUCK!”, I highlighted the need for mechanisms for resolutions of conflicts stemming from agreement disputes. Preparing agreements to cover working relationships takes a significant amount of time and energy. The costs of the legal work can be excessive. Given the time and cost contributed by the company coupled with high quality legal teams, it is surprising that issues ever come up that are not clear in agreements.

One of the first things to recognize is that a few years after completing an agreement, the language and/or interpretation may no longer fit the situation. As soon as a conflict arises, the other side starts to interpret the wording in the agreement differently. The differing interpretations often come about in an effort so seek an advantage in negotiating new issues. The back and forth will certainly increase the tensions on both sides.

Keeping notes at the time of contract generation that provide some understanding of the initial intentions may be helpful. This does not mean the other side will agree that their understanding was the same at the time the contract was completed. The discussions to resolve the differences can be a problem when the two sides want something very different. For example, in one case an organization licenses a product to a company. The organization believes the license covers a narrower scope of uses than the company believes is in the agreement. The original discussions are long forgotten and maybe the original negotiating individuals are gone. The new situation places the organization in the position of trying to extract more money or license parts of the technology to a different business to increase their revenue potential. The company does not want to pay more money and believes they have an exclusive. The conflict places the two on opposing sides and without a mechanism to resolve the issues, the process will only grow worse.

The potential for future conflicts makes it worth significant effort in creating clarity around the language and definitions while drafting of the agreements. Futuristic thought has a value in considering issues that may arise during the working relationship. In addition, adding some type of dispute resolution mechanism helps. Even with a great agreement, but do not expect to predict all issues or circumstances because it is not possible to predict the future.

This brings up the point of this article. You will never create an agreement that will cover all future issues. In fact, do not be surprised if the language has a different meaning to the parties a few years later. This is especially true in conflict situations. An attorney once stated to me, “I have never written an agreement that meant the same thing to all the parties 5 years later.” I have experienced this issue a few times personally!

In short, “Try With All Your Might, You Will Never Get It Right.” When developing working relationships, try to keep things on a friendly basis and make sure you have real partners that work with you. It is much easier to work out problems with people trying to accomplish like goals. It is also much easier when both sides see a Win-Win relationship.

If It Walks and Quacks Like a Duck, IT MUST BE A DUCK!

2012-03-01T12:21:00.000-05:00

I am certain that all entrepreneurs will execute confidential agreements with possible business partners or other entities. The agreements usually say confidential information will not be used for business purposes other than to evaluate a possible business relationship. They may go a bit further to cover the restricted uses, because it is important for startups and other companies to protect their information.

Strange that signing the agreements does not always translate into one or both parties adhering to the agreement, sometimes intentionally and other unintentionally. Businesses start-off indicating they want to play fair and that they are interested in Win-Win business relationships. I have experienced the Win-Win opening dialogue as the case in the numerous conflicts resulting what appeared to be a breach of confidential information. It always amazes me how attitudes change when one or both parties think they made a new discovery after having seen confidential data under a Confidentiality Agreement.

Litigation is not usually the best way to resolve the conflict, but I experienced one prior episode that resulted in significant legal expense. No attempts to resolve the issue by proposing a Win-Win scenario were successful. Writing the CEO of the company and the legal team for the other side continued during the whole confrontation. The judge could not even force a settlement. Costs on both sides were huge and largely unproductive to both parties. It was resolved, but that is a story for a different day.

It is always the possibility that one can come up with a new ideas. Coming up with a new idea after seeing the other side’s data looks strange to the revealing side. This remains a concern even if the new idea was created without having seen the confidential data. Keep in mind that it is nearly impossible to convince the revealing side that the new invention was invented fairly once they provide their confidential data. Remember the phrase, “if it walks and quacks like a duck, it must be a duck.” Get it!

Developing great business relations takes much more effort than taking a great story. Both sides must feel that fairness and logic are part of the relationship. This also means sometimes having to give up more than you may feel is warranted. Win-Win scenarios are a way to create a stronger alliance and team interaction. Both sides must believe the other cares and will treat them fairly: even if the misuses or deviations are real or were unintended.

Heading off disputes is important at all stages of an alliance. Having special individuals to work out the resolutions is one way to be ready to tackle dispute resolutions. Waiting for problems to resolve themselves or kicking the can down the road only allows tenseness and anger to build. The emotions only make the problem harder to resolve. Fix the problem and not the blame but FIX THE PROBLEM SOONER AND FAIRLY.

Why do I bring this topic up today, because it comes up every day, including today. I suspect you will see the problem a few times in your startup. A few ideas on steps to take when it happens:

· Agree in advance how the groups will handle dispute resolution. This is not always so easy, but worth consideration. Establish a way to engage in discussion once a problem arises.

· Try to limit the members to work out a pre-resolution. Have them solicit acceptance from their side. Large group negotiations are horrible.

· Make sure those working on the resolution do their homework before engaging. Try to clarify the issues that cause the dispute and to understand what lead to the problem. Sometimes just understanding the other side helps.

· When possible, try to have everyone be a winner in the dispute. Maybe they do not win all they wanted, but everyone should feel they have a reasonable and fair resolution.

· Avoid the bad stuff if possible; Legal action, anger & resentment are just a few. Remember, teams working together can do far more in shorter periods. Everyone has a chance to win and make money.

Putting Lipstick On The PIG

2012-02-29T13:48:00.000-05:00

You may have heard someone say “Let’s Put Lipstick on the Pig”, or maybe they use language like “Perfuming the Pig.” The phrase conveys trying to sell or promote something that may be less than popular by making it look more attractive. For example, a company has a technology that is not in its primary core activity. The technology may be a candidate to sell off. It may even be in your primary area but your primary business has not gotten traction. The goal would be to make it look more appealing to someone in order to gain a financing or have the business purchased.

The fact that the concept is so common that the language reflects dressing up something prior to promoting it for sale or financing, should tell you something. It happens a lot! Your startup goals are always to create the best business that is possible. This includes the technology, staff, leadership, products and structures. Failing in any key area can result in a business that is suboptimal and attracts less attention. Your only way out could be a sale of the pig.

You should always strive to improve the business. Those steps that generate real change and an improved business do not fit with the phase above. Use of the phrase occurs when you cannot improve the business and your primary efforts are trying to make it look better via a cosmetic approach. The underlying business may still be suboptimal, yet by changing how it is presented, or by cleaning up just enough to hide flaws, the business starts to look better. A very simple example might be in a corporate presentation. The underlying data is the same as is everything else about the slide show. Yet, your hope is that by changing the slide show it will sell better.

The approach cuts two ways. In a previous article, “Got a Great Pitch, GET IN LINE” described the fact that buyers and sellers have pitches and it is important to see the facts in addition to the hype. It is hard to tell how the business has changes unless you have seen it before. Most interestingly, may on the financial hunt for funding will revise their slide deck and present it to financial investors. An interesting point is that the sophisticated investors keep the OLD SLIDES. Trying to convince them with NO NEW DATA is a hard sell unless their investment philosophy has changed. In fact, I have had some say, “So nothing has changed since I saw you last?” Those that are not so direct might say, “What is NEW since you were here last.” You would be surprised how many entrepreneurs keep presenting the same old stuff hoping for a different response from an investor.

The company should strive every day to make progress. Adding new data and company enhancements greatly improves the pitch for funding, sale, or partnering. It often takes several visits to consummate a transaction beneficial to your company. The gradual improvement in the pitch showing the NEW stuff really helps provide confidence to the listener. The ability to make that sale to the listener based on real data is one of the reasons that the entrepreneur must keep the company on track even in difficult times. It is so much easier to make the sale based on solid and real data rather than old tired data or product that is dressed up.

There may come a time when your business has decided to stop all work on a technology or product but want to recover some of the costs by selling it off. In that case, you just may want to “PUT LIPSTICK ON THAT PIG” to sell it off. Just keep in mind that for your core holdings, try to show continual strength and progress. Try to keep the lipstick for the things you can afford to keep any more.

THINK!

2012-02-23T14:22:00.000-05:00

I just returned from a full day of discussions and a seminar at a prominent university in Philadelphia, PA. The day consisted of meeting faculty with inventions and entrepreneurial leanings. Then I gave a seminar on how to create a startup company. The standing room only audience consisted group of faculty and graduate students from different schools at the university. A few weeks before I met with some local startups to discuss issues they were having. I usually like to provide ideas on ways the businesses can advance with fewer funds or to help them overcome current issues they may be facing.

One common pattern often shows when discussing alternative ideas, the listeners sometimes show that light in their eye that says “I Get It.” They then say, “That is a great idea.” The interesting part is that the idea is not that novel but it is novel to them. The experiences I typically relay have come from ranges of activities and interactions in the past. The prior experiences help in formulating alternative solutions for those needing help. Recall, I continually encourage entrepreneurs to get mentors and advisors for just this reason. However, this is not the key point of this article. You will have to wait until the end to find out the point I am making.

Take for example a group of IT professionals starting a company. A few of the companies are preparing for a product launch and need to raise capital for marketing. No telling how long it will take to get the funds and there is no real data to show their ability to capture market yet; does this sound familiar? The suggestion was to provide the product for a year free to a handful of high volume users. These special users get to use the product free as long as they write articles on the use and allow the companies to advertise on their site. In addition, the users would receive an extension of free use if they help recruit a certain number of additional high volume users that pay for the service. Those paying users might get some type of discount for a fixed number of referrals.

With no funds, the company could use the concept to start a trial launch and trouble-shoot any issues that arise on the limited scale. As momentum picked up, they would be on top of the platform and ensure the end users have minimal issues and have a great experience. Finally, by collecting data and testimonials from users the company would be able to use the info to approach investors with real sales and experiences from end users. You will have to wait to see if the approach works, a few of the companies are trying it now.

As I stated earlier, the issue is not that the idea is new but new to the companies. The point of this article is not to get mentors and advisors but I strongly recommend it. It relates to how you think of the problem and whether you insist on sticking to a hard and fast traditional approach or think of alternatives.

In Summary, the REAL POINT IS TO:

You can follow Taffy Williams on Twitter by @twilli2861 and you can email him with questions at twilli2861@aol.com and his company website , photo website, or like ColonialTDC on Facebook. You can also find him in the group Startup Group on Linkedin. Other articles can be found in the Charlotte, NC- small business section of Examiner.com. This blog is now listed on StartUpRoar and on Alltop®.

Are You Over Your Capabilities?

2012-02-20T09:52:00.000-05:00

I wrote an article titled “The One Word Entrepreneurs Do Not Say.” The word is Can’t just in case you have not read it. It is true that real entrepreneurs do not use this word and their primary mode of action is to seek ways to solve problems; go around them, over them, under them, or through them. The never give up attitude is critical to success. However, there is a cautious warning that sometimes there will be situations or businesses that you cannot fix or build. In fact, it may be beyond your skills or those of anyone. This is difficult to imagine, but it does happen.

I was reminded of this issue due a persistent Blue Bird! Yes, you read this correctly, a Blue Bird. Not just any old blue bird but the one pictured here:

This bird is a true entrepreneur in every sense of the word. He does not have the word Can’t in his vocabulary. He has nested in the small house for the last few years. Now, he has his eyes on a much larger home, MINE! For months now, he comes to the windows and continues to seek a way to move in. He flies up and bangs into windows or doors producing a thud sound trying to get in. I would have thought he would have sustained injuries but he is fine. He will not be deterred nor can he be convinced to stop and he continues to show that amazing entrepreneurial spirit that comes in every startup. There is only one problem, he is over his skill set and is not getting in here!

This inability to complete a task happens in startups too and can results in failed businesses. All of the properly conducted background work may be great; i.e. the markets exits and the business proposition are great. Suppose the founder or management team cannot execute properly because of lack of experience or skills. Remember, it takes a great management team to seek alternative ways of resolving problems. The team survives on these skills. When the background training and lack of advisory support are missing, there is greater room for failure. This is why I have covered the area of finding great mentors and advisors as a topic in prior articles. Great mentors and advisors can increase your chances of solving problems by bringing their prior experiences to help seek solutions.

I firmly believe there is a solution to every problem. Sometimes the solutions are not so easily visible. It is important that you not keep hitting the windows or doors like the blue bird. The repetitive attempt to solve the problems with the same solution repeatedly just does not work. Find as many alternatives as you can and keep trying. Call on mentors and advisors and make use of their skills. Your goal is not to do it alone, but to DO IT. Who cares if a cast of thousands helps you? Just find a solution that works and stop repeating those that do not. Don’t be like the blue bird, be a more skillful version and keep up your entrepreneurial spirit.

You can follow Taffy Williams on Twitter by @twilli2861 and you can email him with questions at twilli2861@aol.com and his company website or photo website. You can also find him in the group Startup Group on Linkedin. Other articles can be found in the Charlotte, NC- small business section of Examiner.com. This blog is now listed on StartUpRoar and on Alltop®.

Got a Great Pitch, GET IN LINE

2012-02-17T12:25:00.000-05:00

Entrepreneurs learn that an important part of building a startup is to develop a great pitch. They practice the pitch and via “trial by fire” give the pitch to other parties. They are always refining the story in an effort to improve it and gain investments or partners. This is all a normal part of developing and growing a startup.

Sometimes, we all forget that our startup is not the only business that has developed a pitch. ALL of the prospective investors, business partners, contractors, sales people, and service providers have their own pitch. It is hard to be in sales or service without having some story to present to clients and develop a skill of closing a transaction. It is in the development of your startup that you must realize that the people you speak with are also pitching YOU! This means you have to evaluate them with some of the same scrutiny as they are evaluating you.

You must protect the resources in your startup. Every sales pitch you hear may cost you money, time, or other resources, even if it is nothing but trying to evaluate the other side. Take for example, your approach to an investment-banking group. Every one of these firms has one real goal that is that they want to make money. Your startup is a potential product for them so present to investors and if they are successful, they make money because you get funds from the investor. They represent you, but their real customers are the investors they go to with all their other companies that need cash. The companies they hawk are the inventory they sell. It was no surprise when a friend once told me that investment-bankers were “all whores, the only difference it the price of their suit.” The phrase was to relay the fact that the firms tell you what they think you want to hear. In the end, the deal gets done or it does not. Investor-relation firms fall in a similar frame. They know how to present your company to help you gain recognition. They know how to sell! Get the picture. They also know how to sell to you.

Your prospective partners or service providers want your business. They have developed skills to present why you should be working with them. They will have slides, handouts, great sales people, demonstrations, dinners, and other benefits. The companies have become viable because they honed the skills required to get business. Maybe your business.

A much bigger issue is your ability to assess who you believe is REAL and who is NOT. The companies, partners, or investors may also be terrific (or not). The ones you pick should be selected because your diligence suggests they provide you with the greatest chances for success. They should be people you trust and want to work with. In essence, you need to do due diligence on them, just like they will need to evaluate you.

The need for knowing and trusting your possible partners also goes for trust in your investors. You will need money. Are you evaluating how the investor will affect your business? Many of the investors will want to be on the board or have some other part in the business. Companies sometimes end up with boards of investors that just kill the company. I know of a few of these situations and believe me when I say the situations are terrible to deal with.

The whole point of this article is that you are not the only one pitching your wares! You have to listen to others and will need to learn to evaluate what is said as well as the ability of the other party to deliver. In the end, you are the CEO & Manager. You must “PLAY YOUR CARDS, AND TAKE YOUR CHANCES.” At least make sure you have built the strongest hand to play!

You can follow Taffy Williams on Twitter by @twilli2861 and you can email him with questions at twilli2861@aol.com and his company website or photo website. You can also find him in the group Startup Group on Linkedin. Other articles can be found in the Charlotte, NC- small business section of Examiner.com. This blog is now listed on StartUpRoar and on Alltop®.

Clarity NOT Charity

2012-02-15T09:55:00.000-05:00

Communication is one of the most important skills an executive or an entrepreneur needs, especially when it comes to running a startup with a highly focused and skilled team. The spoken words must convey the clarity and specificity needed to get what you want done completed. Clarity is especially needed in making the value proposition for your startup. In an effort to not offend others, words are used in less than clear terms. The explanations being something like “I was being politically correct.” To that, I say:

“Guess what, I did not understand what you wanted or why it needed to be done. Your sense of urgency was completely lost on me. Now, I am off doing something that I thought you said you wanted and we just lost time and money. Oh yes, and guess what, the problems you had are not solved because I was not working on them.”

I have become a strong believer of being more direct. This may not be taken as a pleasing experience when communicating with others, but hopefully they will understand what is being said. Even with being direct, the meaning and instructions can get lost. This is one of the most difficult issues a manager can face when trying to lay out strategy, correct personnel issues, communicate the value proposition to an investor, and many other situations.

There are a few things that may help to ensure the message is relayed properly and the other side gets it. Here are just a few:

· Follow up with a written description of what you want. Sometimes a person seeing it written down will take the meaning a bit different than hearing a verbal description. They may also remember it better.

· Have the person repeat back to what they think you wanted. When the person repeats what was expected and it is clear, you have a better idea that you communicated your point. It may still be a good idea to have a written follow up to ensure memory of what was expected.

· Spend time explaining why you made the request. If appropriate, having a rationale stated to the other side can help put the issues in perspective. Bringing the other side to a level of understanding the problem may get you two things; 1) they may have other ideas on the way to resolve the issues, and 2) they may better be able to address your concerns and accomplish what you really want.

· Make sure the words you use relay what you really need. You may be asking someone to help resolve an issue. The description of the issue may relate to a different set of problems than the one you want resolved, resulting in a person trying to solve a different but real problem rather than the one you sent them to deal with.

· Ask if there are any questions. This at least allows the other side to recognize the instructions can be questioned and clarified if they were not understood.

· Monitor the progress. If you walk away and do not monitor, the other side will proceed and you may not catch the error in communication until far too late. Monitoring progress regularly will help you set things on the correct path more quickly and save time and frustration.

You can follow Taffy Williams on Twitter by @twilli2861 and you can email him with questions at twilli2861@aol.com and his company website or photo website. You can also find him in the group Startup Group on Linkedin. Other articles can be found in the Charlotte, NC- small business section of Examiner.com. This blog is now listed on StartUpRoar and on Alltop®.

Unintended Consequences

2012-02-10T13:05:00.000-05:00

One day someone will tell you to watch out for the law of “Unintended Consequences.” You will certainly run into this law as you perform your entrepreneurial activities. I mentioned a few examples in the last article titled “If It Ain’t Broke, Don’t Fix It.”

Planning for your business is a time consuming activity. Strategic planning is essential in order to accomplish the goals in the business plan. You will always be looking at activities on a daily basis and seeking ways to improve the company performance and delivery. Predicting your milestone timings and then hitting the timings presented to potential investors is maddening and stressful. You will be a hero if you are successful and a goat if you miss or fail.

The scope of duties expected of the CEO or manager includes improving or changing the business or organization as needed. Review of all activities along with your creativity may provide clues on improvement steps. Keep in mind, there are always the unintended consequences you can never predict. These unexpected events can be good or bad. They do not occur in every scenario, but when they do, you should be prepared to deal with them.

Take for example litigation against Company A. The litigation was in progress for about 3 years with no court date set. There were many trips to the judge and lots of name-calling occurred. While the litigation took its own path, the suing company continued to develop contacts and identify potential partnerships. One day a director of the suing company gets a call from a possible partner. The call resulted in a meeting between the CEO and Company B. It was a strange meeting. The CEO walked in and said “if you want to talk, I want x of funds in my account before the end of the month. Otherwise, go away!” Guess what, the deal closed in less than three weeks. The litigation with Company A settled in the following few months. This is the short version of a good outcome and ability to act quickly to an unexpected event.

The case of the two employees mentioned in the last article is a case of a bad outcome. Two stellar individuals both able to perform at the highest levels were hired. One was a contractor while the other was an in-house employee. The fact that the two personalities conflicted was greatly unexpected. The characterization of the two being like “Gasoline and a Match” was even more unexpected. Eventually one of them was asked to leave. This was sad. Both individuals were terrific. The devastation left behind from their interactions was not expected. It took a long time to clean up after one of them left.

The take home message is that you must be aware that unexpected events happen. They come after thoughtful and well-planned activities or actions, and they occur by accident. You MUST be vigilant and take advantage of the good ones, and rapidly correct the bad.

You can follow Taffy Williams on Twitter by @twilli2861 and you can email him with questions at twilli2861@aol.com and his company website or photo website. You can also find him in the group Startup Group on Linkedin. Other articles can be found in the Charlotte, NC- small business section of Examiner.com. This blog is now listed on StartUpRoar and on Alltop®.

If It Ain't Broke, Don't Fix It!

2012-02-08T20:07:00.000-05:00

Are you the kind of person that likes to tinker with things to optimize performance? I am! It is hard for me to see devices without trying to improve the performance. Sometimes, this activity overlaps into managing a business. People look at how well something is performing and they want to improve it.

This happened recently at a local restaurant. While the owner decided to sell the business, the new owner took over and revised the total menu on day one. The new menu was enough different that those people that frequented the location, seem to be greatly reduced in number. The changes may have worked well if done over a longer period. Perhaps customers would have adjusted better, but the immediate adjustment seems to be a problem; at least for the short term.

Once I hired an outside program manager to run research studies for a business. Extensive reference checks and analysis of prior performances showed the individual to be a stellar find. A key program was handed to the individual to manage and performance was excellent as expected. I wanted to fine tune the program and bring control in house! I retained a search firm to hire an in house program manager. The search firm brought a fantastic candidate, which we immediately hired at a great salary plus options. The new hire was tasked with management of the overall program including external projects and people. The result was a bit like having “Gasoline and a Match.” The whole thing blew up due to personality differences between the two great people. Fine-tuning did not deliver the anticipated results.

When I was younger, I liked to tinker with an old car I drove. I always was trying to make it run smoother or faster. My mechanical knowledge is minimal so tinkering was exactly what I was doing. When I would take it to my mechanic, he would have to fix what I had messed up much of the time. Finally out of frustration he turned to me and said, “if it ain’t broke, don’t fix it!” (Remember I am from the SOUTH.)

The saying stuck with me all these years. Fact is it fits with business and most situations. When you have something running smoothly, you always stand the chance of screwing it up by tinkering with it. You are always better off by real analysis of the situation and determination of exactly what you intend to accomplish. You will likely not always get the outcome you thought you would obtain. So be cautions that when fixing something that is not broken, you don’t do more harm than good.

You can follow Taffy Williams on Twitter by @twilli2861 and you can email him with questions at twilli2861@aol.com and his company website or photo website. You can also find him in the group Startup Group on Linkedin. Other articles can be found in the Charlotte, NC- small business section of Examiner.com. This blog is now listed on StartUpRoar and on Alltop®.

“Popeye Syndrome”

2012-02-07T11:26:00.000-05:00

Invariably everyone has a time in their life when things seem to create too much emotion and they just want to do something about the situation. Actions that take place at this time can cover a wide range of responses. Sometimes, the actions are planned and at other times, the actions are spontaneous. The breaking point is what a friend of mine once called the “Popeye Syndrome.”

For those people that do not know who Popeye was, you missed the cartoons on Saturday morning when growing up. Popeye was a sailor that had a girl friend named Olive Oyl and a friend named Wimpy and a rival named Bluto. In many episodes, Popeye got into a fight with Bluto, a much bigger and stronger looking sailor. Bluto would always over power Popeye until Popeye ate his spinach, which turned him into an ultra-strong person. Then he would win the day by defeating Bluto. It is the point when in the fight that Popeye realized he cannot take any more abuse and he says “ I had all I can stands and can’t stands no more”; what my friend referred to as the ”Popeye Syndrome.”

It is important to recognize that this point in your business will come. The events may be widely different. They may be during intense negotiations or debate. You realize that you are working far too hard for the quantity of business coming in the door. A competitor has taken much of your business away. An employee created significant problems, which will take you days or weeks to correct.

Hopefully, you will realize the timings and situation but you most likely will not feel like taking the step back that you really need in order to develop a plan to solve the issue. Your stress level is usually too high and you just want the issue OVER. Secondly, you are prone to not considering the issues carefully, and you will feel less like speaking with a person you trust to help develop a solution. The potential that you act too quickly and with little planning can result in situations that are even worse.

It is important that you learn to recognize the “Popeye Syndrome” in you when it occurs. It is even more important that you train yourself to act in a manner that is not so spontaneous and that you consult with others. Planning can help reduce the possibility that your intentions to relieve your stress will just make the issue worse.

In short, when you “had all you can stands and can’t stands no more”, take a break. Maybe go to the Gym and work it off or take a walk. Wait a few days if time permits. Think about solutions and discuss them with a close confidant. Always try to execute a plan that will improve your stress and the situation.

Oh, and as far as Wimpy goes, my favorite line from him was “I will gladly pay you Tuesday, for a hamburger today.” You may recognize similar lines from people you work with that seem to want things from you free. Try to control those situations or you will eventually just get upset with your friends or work associates.

You can follow Taffy Williams on Twitter by @twilli2861 and you can email him with questions at twilli2861@aol.com and his company website or photo website. You can also find him in the group Startup Group on Linkedin. Other articles can be found in the Charlotte, NC- small business section of Examiner.com. This blog is now listed on StartUpRoar and on Alltop®.

Have A Great Idea? Hold that Though!

2012-02-02T11:21:00.000-05:00

Interacting with many entrepreneurs and inventors is rather interesting. You learn a lot, but you also have to clean up many missteps. One of the more common issues occurs with inventors. Inventors often get excited about new ideas and they want to share their enthusiasm and have others be excited as well. The timings of the discussions with others and the information relayed can lead to problems. It does not matter whether the transmitted information comes from the entrepreneur, CEO, employee, or the institutional scientist.

Entrepreneurs often start companies with the technology originating from a university or government facility. The institutional scientists creating the technology have goals that are not aligned with the newly formed company. These scientists usually have to publish their work, speak at conferences, obtain grants, and/or interact with vendors. This is how they are recognized and evaluated by their institution and their colleagues.

Scientists are enthusiastic by nature when it comes to their work or inventions. They want to engage in discussions that may help them refine their ideas. They also want to present the work of their research to others in a variety of ways. In a few situations, this can be an issue, for example:

· Presenting information before filing patents, copyrights or other IP, may prevent the ability to protect the inventions or ideas.

· Presenting to the wrong company may allow them to capture the ideas and claim it as their own.

· Finally, if the ideas are not to be patented, the relay of information eliminates the moat around your business that would be created by internal know-how.

There are correct ways to engage others and still attempt to protect your intellectual property. It is extremely important that entrepreneurs learn these and relay the info to their scientists as soon as possible. Otherwise, cleaning up the missteps will take very much of someone’s time.

A few ideas how to protect information:

· Do not talk! – The best is keeping the idea quiet. What others do not know will not hurt the company.

· Confidential Agreements – Develop confidential agreements and have them in place before speaking with those outside the company. Hopefully, all the company staff and management have the confidentiality clauses in their contracts.

· File IP before interacting – There are filings and invention disclosures your counsel can do prior to that special conference, meeting or other event. Invention disclosures lead to Provisional Patents that will help protect the inventions.

· Identify other alternatives by speaking with your counsel.

In short, when you get that great idea, keep it to yourself until you figure how to protect it.

You can follow Taffy Williams on Twitter by @twilli2861 and you can email him with questions at twilli2861@aol.com and his company website or photo website. You can also find him in the group Startup Group on Linkedin. Other articles can be found in the Charlotte, NC- small business section of Examiner.com. This blog is now listed on StartUpRoar and on Alltop®.

Did You Forget Something?

2012-02-01T13:11:00.002-05:00

Why is it that smart people sometimes forget to do smart things? I am always amazed at how stories from others match my experiences and confirm failures of people trying to make contact. Negotiations, networking, searching for jobs, seeking funding, and many other activities are common events. A person reaches out to another and desires to discuss obtaining something. In approaching others, why do some people not take time to learn about those they plan to approach? This is not smart! If you sending a resume to a person you never met, at least take the time to send a cover letter!

Just last week I received a call from someone I know well. The person had placed an advertisement in Linkedin in order to recruit a new employee into a business. More than 100 resumes were received with only 4 people taking the time to add a cover letter. When applying for a job, it makes a bad impression when you do not attempt to learn about the recipient of your resume or demonstrate knowledge of the business! Sending a cover letter gives a great way to summarize why you should be considered. Not attaching a letter is just not smart and gives a bad impression!

When attending an interview or networking visit, it is always a good practice to know something about the people you plan to meet. The knowledge helps you plan and carry on a better discussion. I network a lot and I get requests to help others. What kind of impression do you think it gives when asked how much do you know about me? As an example, I received a call from someone trying to raise capital for a company. The person had spent a year trying to help the company develop as an advisor. When he approached me via an introduction, the call seemed rather odd. He could not answer any questions about the technology, Intellectual Property, and he seemed to be unable to answer key questions about the technology. When I asked what he knew about me, he had not learned anything. I then took time to review my background. I really wanted to ask, “Why did you call me do I have sucker stamped on my head?”

The same thing happens with people wanting to raise capital. I get emails from unknown individuals describing they are seeking money and have nothing describing their technology. To top it off, they have spent no time in learning who I am or what I do. If I called you asking for money with that type of introductions, how inclined would you be to give me money; NOT LIKELY!

As an entrepreneur, you are smart and driven for success. I hope that you want to display a professionalism that will place you with a great first impression. This is critical with every contact you make. It is true whether you send an email, make a cold call, or seek funding from VCs. You really need to learn all you can about the people you approach and/or businesses. Take the time to do things the right way and be smart about all your interactions. Do not come across as someone that has no manners or no interest in others. It is a bad way to start a relationship.

In short: Do your homework and make smart approaches to everyone you desire to speak with or meet!

You can follow Taffy Williams on Twitter by @twilli2861 and you can email him with questions at twilli2861@aol.com and his company website or photo website. You can also find him in the group Startup Group on Linkedin. Other articles can be found in the Charlotte, NC- small business section of Examiner.com. This blog is now listed on StartUpRoar and on Alltop®.

Now You See it, Now you Do Not!

2012-01-25T13:13:00.002-05:00

One of the most difficult of topics to discuss is the demise of your startup. There is nothing to say in advance or after it happens to make you feel any better. No words exist that will take away the sting of the failure and you will relive aspects of the process the rest of your life. Many serial entrepreneurs have lived through at least one failure and some, more than one. There are a few that have not experienced it and if lucky never will.

The purpose of this article is to alert you that many startups just do not make it. The reasons are wide-ranging and sometimes just strange. Sometimes, you cannot prepare in advance. When possible, planning an orderly shutdown is preferable over hitting the wall at 100 miles per hour! At least in an orderly shutdown, you have a chance to manage creditors, staff, and operations to protect as many as possible and as much of the assets as possible.

The following is a short list of reasons for demise: 1) Product failures, 2) Commercial failures, 3) Development failures, 4) Management failures, 5) Financial failures, and 6) other. Experienced executives can sometimes manage these events and turn a business around. The less seasoned professionals may face more challenges than experience allows for effective management. Many times, it does not matter how good the manager is, the company will be doomed.

As an example, I ran into a friend a few weeks back. This person is a great manager. He was developing a company for a VC group. After much planning and having a deal done for the next financing, he received a call saying the fund was not going to go through the deal. The news came about a week before the business would run out of funds. There were no other prospects for investment and the time was too short. My last discussion with the friend was along the lines that he would be closing the company in about 5 days!

In the biotechnology space, clinical trials are required to demonstrate effectiveness of a product and gain FDA approval. Two Phase III trials are generally required to demonstrate safety and effectiveness of the product. Many early stage biotechnologies have experienced break of the code and analysis of the Phase III data to find their product did not work. This typically makes all investors run for the hills! If the company is not well capitalized, it will be gone in days. This has taken place numerous times and it is not something you can plan for. Companies having received in excess of $300MM have failed over night for just this type of event.

The point of this article is to alert you that FAILURE happens. You can learn from it, you may be able to manage it, but more often than not, the company disappears quickly. Just be aware that the streets of “Startup Land” are not paved with “Gold”. You will put in long hard hours and experience many great things, but sometimes the magic catches up to you and poof, “Now you see it, Now you don’t”!

You can follow Taffy Williams on Twitter by @twilli2861 and you can email him with questions at twilli2861@aol.com and his company website or photo website. You can also find him in the group Startup Group on Linkedin. Other articles can be found in the Charlotte, NC- small business section of Examiner.com. This blog is now listed on StartUpRoar and on Alltop®.

Answer the Question

2012-01-24T13:09:00.002-05:00

One of the first things you are likely to encounter when interacting with others is the question and answer interactions. Typical conversations with friends, interactions with staff or supervisors, sales & marketing, business partnering discussions, raising capital and most every other kind of interaction has a Q & A component. Listen to candidates in debates. They get questions and have to answer.

You will find many different approaches to answering questions. Some people provide an extensive amount of information, some brief terse answers, others are vague, and some highly specific. Usually, the person asking the question has a limited attention span and really has an interest in hearing the answer to the question asked. They may have asked a specific question to get to a point in the conversation that is further in the discussion.

So what is the problem? Most people are guilty of not being specific in their response at times. For example, you may have heard a response to a question you asked that took more than 5 minutes to give. You wanted to be polite and not interrupt so you allowed the person to continue talking. Yet, the person was answering a different question or at least not specifically answering your question. This gets rather annoying if it occurs frequently.

One way to deal with the issue is thinking ahead about what you want to say when answering. Perhaps you need to provide a significant amount of detail or you want to clarify how you came up with the answer. Maybe you are unknowingly being defensive in your response. Your thinking about the question and your intended response allows you to put the answer in a better form.

One thing I learned (the hard way) is to give the short version of the answer first. Make a short specific answer the first thing out of your mouth. Then add whatever detail or explanations wish to provide. This way the listener can turn off if they really did not want to listen and be satisfied you gave them the answer. (It may not be polite, but it happens.)

In short, when you get a question, give a short specific answer first & make sure the initial response is specific and clear. Then add whatever else you want to say about the topic. People will follow you much better and you won’t lose them as easily in the discussion.

You can follow Taffy Williams on Twitter by @twilli2861 and you can email him with questions at twilli2861@aol.com and his company website or photo website. You can also find him in the group Startup Group on Linkedin. Other articles can be found in the Charlotte, NC- small business section of Examiner.com. This blog is now listed on StartUpRoar and on Alltop®.

You Just Made the Sale, Now SHUT UP!

2012-01-23T15:16:00.000-05:00

Pardon the language, but the title says a lot. It sometimes takes a very long time to convince a buyer to buy. This is the case whether the buyer is:

· someone purchasing a retail product,

· a possible business transaction like partnering or M&A

· providing financing in the form of debt or equity

· or most anything else.

It is so easy to continue to press the point without paying attention to what is taking place. However, there is benefit in taking time to listen and stopping. The best way to describe this is by elaborating on a deal that was in progress many years ago.

A company was courting two businesses to gain assistance in evaluating a product. The company was seeking services and testing on behalf of both entities. One was a government facility the other was commercial. After tense discussions with both, the company had decided that it would rather have the commercial entity as a partner. However, the in house discussions reviewed possibilities of doing business with either. In the case of the commercial business, the company desired to have a partnership were the commercial business would provide testing and some cash to the company. As a fallback, the company was willing to pay for testing at the government facility in a different type of deal. This was the FALLBACK, not the primary desire. Now that you have an idea of the thinking in the company look at what actually transpired.

The company scheduled a meeting with the commercial business and several of the senior team traveled to attend the meeting. It was clear there was serious interest from the commercial business and a partnership was in the making. The meeting to close the transaction lasted for a few hours. Plans covered the next few year strategy, the funds to be given to the company by the commercial company, and the testing the commercial company would perform at their expense.

The deal took shape and management was ready to close. Now for the big finish:

VP: “when do you think we can start the first tests?”

Commercial Company: “in next few weeks. We will finalize the deal documents first.”

VP: “can we move it any quicker?”

Commercial Company: “maybe, but why?”

VP: “we have lined up a different facility to do the work, if you cannot.”

Commercial Company: “You are going to pay someone to do this and we are paying you?”

Well you can guess what happened. That deal died right there and then. The whole discussion fell apart and the relationship ended. It was a good thing the VP asking the questions was traveling back by a different route; otherwise, a different fatality would have occurred.

The point: Once you make the sale, close and SHUT UP. Be careful of what you say because you can kill the deal. Don’t over sell and don’t go into things that are not needed!

You can follow Taffy Williams on Twitter by @twilli2861 and you can email him with questions at twilli2861@aol.com and his company website or photo website. You can also find him in the group Startup Group on Linkedin. Other articles can be found in the Charlotte, NC- small business section of Examiner.com. This blog is now listed on StartUpRoar and on Alltop®.

What Are You Talking About?

2012-01-06T13:24:00.001-05:00

Have you ever spent 20 – 30 minutes listening to someone and really have no idea what the person was talking about? You heard them, but the presentation was not clear to you! The problem is a trap that plagues early stage entrepreneurs. They tend to forget that the listener may not have the history, background, interest, or other attributes to allow them to follow the discussion. I have been in a number of pitch meetings where a scientist will talk for 30 minutes and my first question is, “What is your product?” The scientist spent so much time describing all the science, the product definition was missing.

Better planning and thought will ensure you address the issue before it becomes a problem. A few simple considerations:

1. At the very start, make introductions and ask for background information for the people in the room.

2. Slant your presentation to the lowest level person in the room. This may mean you provide more background information than usual, but it will help you not loose people during the pitch delivery.

3. Ask how much time you have. Stick to the limit unless the listeners extend the limit.

4. Organize your talk and provide the first and last slide telling the listeners what you key points are in the pitch.

5. Define your product up front. Later, describe the product again including any required detail that helps the least knowledgeable person understand the product. Please, do not leave listeners with the nagging question of what your business is planning to sell.

6. Put places in the pitch to stop and ask if people have questions. Sometimes, it is better to clear the issues up earlier.

7. Make the number of slides a few less than the number of minutes allotted to speak. 15 slides in 20 minutes may be good, 30 slides in 20 minutes may be a movie!

8. Know your business and the market place COMPLETELY, before you schedule the meeting. You will get questions and want to make a good showing. The knowledge will also show through in your presentation and follow on questions.

You can follow Taffy Williams on Twitter by @twilli2861 and you can email him with questions at twilli2861@aol.com and his company website or photo website. You can also find him in the group Startup Group on Linkedin. Other articles can be found in the Charlotte, NC- small business section of Examiner.com. This blog is now listed on StartUpRoar and on Alltop®.

It Is Not a Fit

2012-01-05T10:21:00.002-05:00

What did that investor mean “it is not a fit?” Why did he not see how wonderful our company is? Just a few questions you might have after hearing the famous words. They come from investors, potential partners, friends, family, and YOU.

Think about what this means in simple terms. (By the way, all of these examples are real life ones)

1. You give pajamas to a family member. You went to the trouble to buy the largest size made to make sure they fit. The family member comes back and says they are too small and I do not like flannel. OK the size and material were all wrong. “Not a fit!”

2. You have a jar of M&Ms with all colors. Your friend eats all of the M&Ms but leaves the blue ones; what is up with that? The friend says he does not like blue! “Not a fit!”

3. You are investing in stocks. You want a diverse investment of 5 stocks one in each of 5 sectors. You have one from the following groups so far: financial, discretionary, utility, & energy. Someone shows you a second financial stock. You need a technology stock to round out the portfolio. The second financial is, “Not a fit!”

4. You approach a VC. The VC will invest in 6 companies this year. They already have two companies they hold investments with technology related to yours from previous year’s investments. They determined which technologies they have interest in for this year last December. You may have great technology, but your company is, “Not a fit!”

5. You are talking to big pharma about partnering your drug. They have 5 related drugs in their pipeline which you are not aware of. Your drug is “Not a fit!”

6. Your technology, business concept, and/or management are not something that is attractive to an investor. No particular reason, they just do not get excited about it. You got it, “Not a fit!”

I could go on about this concept, but hope you are getting where the discussion is leading. Every part of life has the potential to not be a fit with the here and now of what is taking place. This includes things like eating M&Ms all the way finding the right business relationship with a partner.

Your job is to evaluate as much as possible the landscape and help show the fit to the investor, partner or other entity. This is all part of your planning which must take place before engaging in discussions or negotiations. It is hard to sell a product to someone that already has 5 of them and is not happy with the product at all. You are better off selling something they need. You may have to show them they need it, but that is easier if they do not have it already.

Summary: Selling and marketing is more than what you do at the retail level. In startups, it is what you do to find funds and to get business partnerships. It is possible to make a square peg fit in a round hole if you try hard enough. I took back the PJs and got a different brand, and I am the one that finishes the blue M&Ms that are left (I cannot tell the difference anyway).

You can follow Taffy Williams on Twitter by @twilli2861 and you can email him with questions at twilli2861@aol.com and his company website or photo website. You can also find him in the group Startup Group on Linkedin. Other articles can be found in the Charlotte, NC- small business section of Examiner.com. This blog is now listed on StartUpRoar and on Alltop®.

Your First Action Is Not Raising Capital

2012-01-04T11:14:00.000-05:00

More times than I recall, entrepreneurs make contact and the first topic is how they can get funding. The same goes for some institutions. In fact, I even got someone on Twitter send me note indicating that they were seeking an Angel Investor. This makes me wonder what these people are thinking.

I expect to walk down the streets of New York, Miami, and San Francisco and get accosted by people wanting money to eat. These people do not know me. I understand and sympathize with their plight. They have developed a life style that causes them to need money for food. They have nothing to sell, no idea of ever speaking to me again, they are willing to hit up the next person going by and are usually looking for a few dollars. Well, except for the person I see in midtown NYC that always asks for a spare $100 dollar bill. At least he is enterprising and makes me smile!

When you ask someone for an investment, you are not begging for money like a street urchin! You are seeking a business relationship that will bring a person into the company. They may even require a Board seat. It is beyond me as to why some entrepreneurs assume the process of seeking funding does not require building a relationship or doing the required work to develop their business. To top it off, some of them are so bad that taking a first meeting is a waste of time. It only makes things worse when you provide contacts that may be helpful and you get a call months later asking for the info again because you lost it. That does not make you appear like a viable CEO or a leader. Why invest with this person? By the way, a person’s time is an investment too.

Most people worked hard to obtain what money they have. They are not ATM machines and they have personalities and feelings. The act of asking for funds or a partnership goes hand in hand with developing a trusting relationship. Recently, I saw a question in Quora wanting to know why a particular VC would not take a meeting with a tech company; “ How about they were not interested!” There must be a desire for a financial person to want to invest in what you have. This comes from learning about you, your company, your technology and seeing how it fits in their investment strategy. The investor has a desire to increase the value of their fund by strategic investing. If you are not a fit, it can be for a host of reasons.

Simply because you started a company does not guarantee that you will ever find the funds to run it. You have to work smart and hard. Maybe the money will come your way if you do work hard. As an interesting note, I spoke with a few institutions that want lectures on finding money. Great thought but it is the last topic to address for a startup, not the first. The planning, construct of the company, the markets and many other topics should come first. How can someone ever seriously consider giving funds to a person that has nothing to sell?

Every university faculty knows how to find grant funding. This is possible in startups and that even requires a lot of preparation. When most individuals invest their own funds, they hopefully spend significant time understanding the investment. Not doing this creates too much risk for that investment.

Summary: If you just started a company, do your work. Then approach possible investors. Why blow your chances with real investors due to complete lack of preparation. In a sense, it is like the saying, “if you do the crime, you need to do the time.” Stop thinking people owe you and start thinking I have to work harder every day to do the right things. If I do, maybe they will invest in me!

You can follow Taffy Williams on Twitter by @twilli2861 and you can email him with questions at twilli2861@aol.com and his company website or photo website. You can also find him in the group Startup Group on Linkedin. Other articles can be found in the Charlotte, NC- small business section of Examiner.com. This blog is now listed on StartUpRoar and on Alltop®.

Are You Looking for Things the Correct Way?

2012-01-03T16:35:00.000-05:00

Entrepreneurs want money, intellectual property, staff, space, business intelligence and much more. Oddly enough, entrepreneurs usually start by asking for the MONEY even if they have not done the background work to get it. Nothing is easy about your startup, if it was everyone would do it. This is something you must remember from day one when you decide to take the leap.

I have described many important aspects of building a company. Networking is critical but you need all of the supporting information or you have nothing to show the people you meet. Hanging a shingle on the office is not a license to have cash deposits made in your account. You have to earn it.

Finding people to work with you takes time. You can pay a recruiter or you can find them on your own. The possible new hires want so know why they should be in the company and if there is a future there. You have to sell them on the prospects.

Marketing information is available on the internet, but most likely, you need much more extensive search ability to find what will finalize the data marketing plan. Your job is to tailor each discussion to meet the needs of the individuals you are pitching. This could be your legal counsel, accounting firm, prospective investors, or prospective employees. The market information can help to show how you plan to compete and make money.

A key to all of this is looking in the right places. A friend once told me “even a blind squirrel can find nuts.” He was saying that finding what you want means sticking to the task. It becomes easier when you do the background work and organize it properly. You can find anything you seek.

In short, no one is going to deposit any of the important assets you need in your startup. You are going to have to work to get it. Your preparation is critical to increasing your chances for success. The process is an everyday challenge because you will learn something new each day. This means changing your pitch to fit.

You are part salesperson, part entrepreneur, part employee, but you must be full time prepared. Yes a “blind squirrel can find nuts”, but they have years of experience and preparation. They have learned and honed their skill or they die. Learning is the same for you and your startup, i.e. ALWAYS IMPROVE AND DEVELOP YOUR SKILL or your startup will die.

You can follow Taffy Williams on Twitter by @twilli2861 and you can email him with questions at twilli2861@aol.com and his company website or photo website. You can also find him in the group Startup Group on Linkedin. Other articles can be found in the Charlotte, NC- small business section of Examiner.com. This blog is now listed on StartUpRoar and on Alltop®.

Starting Off the Year: Healthcare with a Twist

2012-01-02T12:50:00.002-05:00

It should not be a surprise to you to learn that I work heavily in the healthcare space. I assist several types of businesses. Some are startup, some not-for-profit, some make money, and some do not. The people I work with are terrific. They did not pay me to say this, but I did choose to work with them because they are terrific. I met a lot of them at meetings!

I have discussed the importance of networking, knowing your markets, finding financing, and many other topics. Each year that I manage to get an invitation to the JP Morgan Healthcare conference, I GO! The reasons are rather simple:

· Many healthcare companies from all over the world present their companies there; big, small, and not-for-profit.

· Many investment groups set up off site office and schedule meeting back to back for the week. Others are on the floors and listening to the presentations.

· The conference invites around 6K people, but large numbers of people with no invitation come to network BIG TIME. They hang out in the lobby or other venues.

· Nearly every company my clients want to partner with are there taking meetings to see what technologies are available. Last year alone I met with more than 10 Big Pharma companies.

· There are at least 3 alternate healthcare conferences going on in other hotels.

· I always meet new people that fit nearly every aspect of what may be needed in the future.

That is just a short list. I have other reasons for going and have attended for many years.

You may not be in the healthcare space, but Apple has hosted conferences around the same time in the same city. Other tech conferences are similar to the ones I attend and are located in nice places to visit.

The point of this article is that for your New Year Resolution consider attending the most important conference in your field. Use the meeting to NETWORK, IDENTIFY EMPLOYEES, FIND MONEY AND MEET POTENTIAL PARTNERS. Get in the habit of seeking out the best places. Just showing up, you may improve your chances of success.

You can follow Taffy Williams on Twitter by @twilli2861 and you can email him with questions at twilli2861@aol.com and his company website or photo website. You can also find him in the group Startup Group on Linkedin. Other articles can be found in the Charlotte, NC- small business section of Examiner.com. This blog is now listed on StartUpRoar and on Alltop®.

Buy a Ticket

2011-12-22T15:08:00.000-05:00

This is not an article about funding your startup using such risky capital as a lottery ticket. However, there are lessons one can learn about winning the lottery. The lottery is nothing more than legal state sponsored gambling. Many of the states have them and the people that buy the tickets want their chance to strike it rich. Well most entrepreneurs want the same thing with their startup.

There are schemes that suggest how to buy tickets and most of them are nonsense. A few people however, have managed to use science and statistics to determine ways to increase their chances of winning. They determine in advance how many numbers they must purchase in order to increase their odds of winning. Then they organize teams to purchase the required number of tickets. You may have seen the news reports on these schemes because the group wins. Well in your startup, you organize the team and focus them on the projects and timings needed to win. If you are good, you also work to have the odds of success in your favor.

Like the lottery, your startup is risky and you may not make any money. You may also lose your total investment. The odds of your having a big hit are not in your favor, but you can increase your chances by planning. That is one of the most important parts of organizing your startup; i.e. putting the odds of success in your favor.

To this point the message is:

1. Entrepreneurs want to make it big

2. They need to organize the business & team carefully

3. The can increase the odds by good planning

4. They can lose their investment. Startups are not risk free!

There is a final point. The following story will help describe it:

“An old man was down on his luck and really needed help. For 10 years, he made the same prayer each day:

I need help. I am down on my luck and nearly broke. I cannot support my family. My home is going into foreclosure. The family needs food. My children need money for school. I feel like such a bad father. PLEASE LET ME WIN THE LOTTERY.

Finally, in desperation he said the same prayer for one last time. He was ready to give up. He was certain his prayer was not being heard. So he ADDED:

I have asked for these things each day for 10 years. I do not know what else to do. I thought you would grant my prayer requests. What am I doing wrong?

It was at this point that a voice answered “YOU HAVE TO BUY A TICKET”

Maybe you can guess what the last key point is. There may be risk and a need for planning, but if you do not start the company, you have lowered your odds to ZERO. You may not lose, but neither can you WIN.

So if you are an entrepreneur, BUY A TICKET = START A COMPANY. Plan well and increase your chances for winning.

You can follow Taffy Williams on Twitter by @twilli2861 and you can email him with questions at twilli2861@aol.com and his company website or photo website. You can also find him in the group Startup Group on Linkedin. Other articles can be found in the Charlotte, NC- small business section of Examiner.com. This blog is now listed on StartUpRoar and on Alltop®.

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