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Marketing. Web Business. What Makes an Entrepreneur? Four Letters: JFDI. This is part of my Startup Advice series. I had a picture in the office of my first company with the logo above and the capital letters JFDI. (In case it’s not obvious it’s a play on the Nike slogan, “Just Do It.”) I believe that being successful as an entrepreneur requires you to get lots of things done. You are constantly faced with decisions and there is always incomplete information.
This paralyzes most people. Not you. Entrepreneurs make fast decisions and move forward knowing that at best 70% of their decisions are going to be right. I spent nearly a decade building software for large companies and then advising companies on the same. The technology team disagrees on direction and wants resolutions. I learned quickly that I needed to just do things. Yes, I know it’s my job as the CEO to be the coach for people and that’s fine. So I took on the motto JFDI to symbolize this. Another side of JFDI is finding ways to get stuff done that seem impossible. 1. “Why?” That is a true story. Using an Agile Software Process with Offshore Development. One of the fundamental tenets of any agile software methodology is the importance of communication between the various people involved in software development. Furthermore agile methods put a large premium on improving communication through face-to-face communication.
As the agile manifesto states "The most efficient and effective method of conveying information to and within a development team is face-to-face conversation. " Extreme Programming emphasizes this with its practice of a single open development space where the team can work closely together. Cockburn's book spends a lot of time talking about the importance of physical proximity in agile methods. Another trend that's been grabbing the software development world recently is the move to offshore development, where much of the development work is done in lower paid, ahem more cost effective countries.
Offshore development seems opposed to agile development in a couple of ways. Lessons Learned But there is good news. Two Ways To Build A Pyramid -- Software Development -- Informati. The outcome of large software projects depends on factors that are beyond the control of the development team. That's why our guest columnist, John Mayo-Smith, VP of Technology at R/GA, recommends that teams finish the design, coding, and debugging of each component before beginning work on the next. Some time ago, a pyramid builder was hired to build a tomb for the pharaoh. The tomb had to meet two requirements: it had to be finished before the pharaoh died and it had to be big. The builder had two problems. For many years, the project progressed well. Mindful of his predecessor's mistakes, the next pharaoh tried a different approach.
After a long, productive life, the pharaoh passed on, and he was laid to rest in a very elegant monument with a square base and triangular walls that met at a point at the top. Like the pyramid in this story, the outcome of large software projects depends on factors that are beyond the control of the development team. More Insights. Angel Financing: Legal Tips for Entrepreneurs | WALKER CORPORATE. Angel Financings: 5 Tips for Entrepreneurs | WALKER CORPORATE LA.
Introduction This is part two of my two-part series on angel financings. In part one, I provided the following five tips for entrepreneurs: (i) push for the issuance of convertible notes; (ii) understand the key business terms; (iii) diligence the angel(s); (iv) never subject yourself to personal liability; and (v) comply with applicable securities laws. Below are five additional tips for entrepreneurs to help them through the angel financing process. Obviously, this is still a difficult environment in which to raise capital; however, I am confident that 2010 will bring greener pastures. Tips for Entrepreneurs 1. Get Your House in Order. Remember: angels may have hundreds of potential investment opportunities each year, but will only choose a select few. 2. The good news with respect to these groups is that, generally speaking, they are a solid source of smart money for entrepreneurs, and they often have strong relationships with venture capitalists and other investors. 3. 4. 5.
Mistakes in Raising Capital. This post discusses the five most common mistakes entrepreneurs make in raising capital: (i) playing securities lawyer; (ii) selling securities to non-“accredited investors”; (iii) advertising or soliciting investors; (iv) using an unregistered finder to sell securities; and (v) selling preferred stock to angel investors.
The abridged video version is directly below. Mistake #1 – Playing Securities Lawyer A company may not offer or sell its securities unless (1) such securities have been registered with the Securities and Exchange Commission and registered/qualified with applicable state commissions; or (2) there is an applicable exemption from registration. The most common exemption for start-up companies is the so-called “private placement” exemption under Section 4(2) of the Securities Act of 1933 and/or Regulation D, the safe harbor promulgated thereunder. This is very complex stuff – and now is not the time for entrepreneurs to play securities lawyer. Term Sheet – Anti-Dilution. It has been a while since I put up a term sheet post so I thought I’d tackle a hard one today.
While it’s fun to tease lawyers about math (and – actually – about anything), my co-author on this series Jason Mendelson (a lawyer) often reminds me that lawyers can do basic arithmetic (and occasionally have to resort to algebra). The anti-dilution provision demonstrates this point. Traditionally, the anti-dilution provision is used to protect investors in the event a company issues equity at a lower valuation then in previous financing rounds. There are two varieties: weighted average anti-dilution and ratchet based anti-dilution. Standard language is as follows: Full ratchet means that if the company issues shares at a price lower than the Series A, then the Series A price is effectively reduced to the price of the new issuance.
Where: Recognize that we are determining a “new conversion price” for the Series A Preferred . Got it?