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Entrepreneurs’ Top 10 Mistakes from Apple’s Former Chief Evangelist

Entrepreneurs’ Top 10 Mistakes from Apple’s Former Chief Evangelist

Building a business is hard. Don’t make it harder for yourself by making these avoidable mistakes. Take it from Guy Kawasaki, Apple’s first Chief Evangelist, serial entrepreneur, and VC investor. He’s written 13 books on entrepreneurship, startups and business. Below is an extraction of his 10 tips from a talk at Silicon Valley’s Startup Grind.

1. Projecting based on the 1 percent

How hard could it be to get a little piece of the pie? Guy open by talking about the entrepreneurs who project a huge market and figure that the conservative estimate is to capture 1%. Getting that first 1%, say one million, is no small number. Do you even have traction with your product? Also, no investor wants to hear you only have ambitions for 1% of the market. If your product is worth investing in, it should take significant market share.

Use a realistic projection funnel. Based on your traction and sales, do a more realistic prediction. Do a market feasibility test before prototyping. When you prototype, continually get feedback from your target customers and grow your customer base as you are refining your product. By the time you pitch, you will have real numbers to base your calculations on.

2. Scaling too soon

After raising money, entrepreneurs often put their capital into the wrong resources; they get multiple offices and hire in anticipation of sales to come. As Guy puts it, you have people in Bangalore waiting to provide great customer service to non-existent customers. Because re-hiring later when sales catch up seems inefficient, one isn’t willing to let go of that expanded team. However, your product will never ship on time and your sales will likely never meet your projections.

Don’t hire until you’ve shipped product. Don’t hire in anticipation of growth. Also, the most stable thing to do is to grow a company based on sales revenue and pivot based on market demands. For example, the team of programmers who loved coding began by making Pandaform, but then evolved into a web and mobile development agency that builds products in-house and for clients.

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3. Partnerships…why?

If you have a strategic partnership that translates to opening your sales spreadsheet every day, keep it. Most partnerships are just a patch for a company’s shortcomings. Partnerships entail e-mails, meetings, plans and distractions from selling a product and generating real revenue.

Only sales matter. Guy summarises sales as keeping your investors happy. A startup’s ultimate survival test is to make revenue. Make revenue and you have happy investors, employees, and (a bit more) peace of mind.

4. Treating pitches as silver bullets.

Y Combinator Startup School

    A good pitch may help you win a business plan contest and give a good impression. However, a prototype with real traction is the best way to convince an investor. Guy references bootstrapping to get your startup off the ground. He urges founder to use Rackspace and Amazon Web Services for hosting and social media for free marketing.

    Prototypes are worth a thousand pitch decks. Build a basic prototype and make sales to demonstrate the product you are pitching has potential.

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    5. Slide overkill.

    Despite all the great examples of pitch decks out there, you’ll always have the entrepreneurs who can’t help thinking they’re the exception. They’ll give you 60 slides with 8 pt font. It never works.

    Go with the tried-and-true rule: 10-20-30. 10 slides, 20 minutes, 30-point font

    How can your business model in 10 slides and 20 minutes? Think of the limitation as a challenge to crystallise your idea. If your product is unique enough, it should be easy to convey in one sentence. Also, your slides are not your notes. If pitch shows enough concrete numbers, an investor will follow-up. Check out some of the most successful startup pitch decks online.

    6. Making life serial.

    Wouldn’t it be nice if life went step by step: prototype, raise money, hire awesome people, get sales, hack hockey stick growth, then have a spectacular exit.

    Life doesn’t wait for step one to finish before starting the next. Realistically, an entrepreneur needs to be building that prototype, fundraising, recruiting top talent,making sales, and figuring out business strategy. The chicken and egg feeling will never go away. If you are growing, your next opportunity will always be that uncomfortable stretch.

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    7. Recognise that 51% is an illusion of control.

    The moment you’ve taken outside money, you’ve lost control. Walked out of your last fundraising round with 51% of company ownership? As a founder, you are accountable to all your stakeholders. Your investors may not be that involved in running your business, but they can get 100% involved in voting with their feet. You need your investors behind you, and they get behind you when they think they will get $50 per $1 that they invested in you.

    8. Using patents for protection.

    Guy puts it succinctly: patents are for your parents. You’ll make them happy, and if you’re lucky, maybe the company acquiring you in the future will like it. That’s a big maybe.

    Realistically patents do not bring you sales and if a larger company produces something similar, are you going to sue them? Are you really going to spend all your investor money on litigation? Your investors probably wouldn’t want to take on Microsoft or Apple.

    Market share is the best self-defence. Get over yourself. For every product that you come up with, someone else in the world has probably developed something similar. One of Oursky’s favourite in-house products is Filesq, which is similar to many other prototyping and wireframing tools out there. Companies like InVision got market share. We didn’t. They didn’t steal our idea; most product managers and UX professionals wanted the same thing. Life moves on.

    9. Thinking VCs add value (and trying to make friends).

    Your investors are busy people. VCs and angels alike are looking at a dozen portfolio companies and maybe even running their own business on the side. Of course, they want you to succeed and will pick up the phone to connect you to the right person, but they won’t do much more.

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    Earn attention by performing. VCs think you may be a good investment and after closing the round, they’ll hover to see how you do. Your investors are much more likely to engage if they see you’re gaining traction and growing sales. Guy suggests you expect 2-3 hours from your investor. They’re not there as a buffer for your screw-ups. Guy summed it up as a Tindr world.

    10. Hiring yourself.

    He just gets it. From the moment you sit down for coffee, you two can go on and on for hours. You both have the same vision, concerns, working style and, of course, sense of humour. He fits the company culture. He’s hired. By the time you’re on your 10th team member, you’ve got a hundred blind spots and one big HR problem.

    Fill the gaps with complementary people. Hire someone who is different from you and brings in a complementary perspective. Bringing in men, women, people of colour, people with experience, people with inexperience depending on where you are. You need a team that can make, sell, and collect your product. A systematic way to do so is to map out all the different hats you (and your early team members) are wearing. Figure out where each of you are weakest and where the company has the greatest need. Start scouting for someone to fill that gap, even before you’re ready to hire.

    You can check out Guy Kawasaki’s talks on Youtube. Let us know what your best biggest learnings were as a founder!

    Featured photo credit: Drew Bennett via flickr.com

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    Last Updated on May 22, 2019

    50 Great People To Follow On LinkedIn, No Matter Your Industry

    50 Great People To Follow On LinkedIn, No Matter Your Industry

    LinkedIn is an excellent platform to network with great people to help you in your career and businesses. However, with over 575 million people on the site, who should you follow? This list will steer you to the right people to follow, organized by categories of expertise.

    Job Search Experts

    You will likely have several jobs throughout the course of your career, and you will constantly need advice on new trends and strategies out there in the job market. Here are the LinkedIn experts who you should follow on these matters.

    1. Liz Ryan is the CEO and founder of Human Workplace. Her articles on job searching are filled with creative and colorful cartoons.

    2. Lou Adler is the author of The Essential Guide for Hiring and Getting Hired.

    3. Dr. Marla Gottschalk will help you make an impact in a new job.

    4. Hannah Morgan runs CareerSherpa.net, where she gives expert advice on job searching and how to be more visible online.

    5. Alison Doyle is the CEO and Founder of CareerToolBelt.com.

    Management Experts

    They say that people leave managers, not jobs. These experts in LinkedIn will help you become your employees’ dream manager.

    6. Jeff Weiner. How can we leave out the CEO of LinkedIn himself?

    7. Nozomi Morgan is an executive coach. She can help you transition from a boss to a true leader.

    8. Mickey Mikitani is the CEO of Rakuten. He constantly shares his expertise in managing a global player in e-commerce platforms.

    9. Andreas von der Heydt was the head of Amazon’s Kindle Content and now the Director of Talent Acquisition. He has extensive experience in management, branding, and marketing.

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    Productivity Experts

    By maximizing your productivity, you can win in all aspects of life. The following LinkedIn experts will help you win big in your career.

    10. Gretchen Rubin is a happiness coach and the bestselling author of the The Happiness Project.

    11. Carson Tate is the founder of Working Simply. She advises us to include play in our schedules.

    12. Greg Mckeown is an essentialist. Part of being an essentialist is saying no to many things so that we can focus on the things that matter.

    13. Brian de Haaff, CEO of Aha! Labs Inc. provides strategies on how to be productive and happy at work at the same time.

    Marketing Experts

    14. Sujan Patel is VP of Marketing at When I Work, an employee scheduling software. He is an expert in content marketing and he even shares his ideas on content marketing in 2020.

    15. Megan Berry is the Head of Product Development at Rebelmouse, a content marketing and AlwaysOn powerhouse.

    16. Sean Gardner will help you navigate the social media landscape. This includes how to use different platforms to help accelerate your career. He is also the bestselling author of The Road to Social Media Success.

    17. Christel Quek is an digital and marketing expert. She is the VP of South East Asia at Brandwatch. Their products help businesses utilize social media data to make better business decisions.

    18. Jeff Bullas is a digital marketing expert. His blog has over 4 million readers annually.

    19. Michael Stelzer is the CEO and Founder of social media powerhouse site, Social Media Examiner.

    20. If you’re looking for inbound and content marketing expertise, follow Dharmesh Shah, Founder and CTO of Hubspot.

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    21. David Edelman is a McKinsey partner and is at the helm of the Digital Marketing Strategy Practice Department.

    22. Dave Kerpen leads the social media software company Likeable Local. He is the author of Likeable Social Media: How to delight your customers.

    23. Clara Shih is the CEO of Hearsay Social and the author of The Facebook Era.

    24. Aaron Lee is Grand Master of Customer Delight at Post Planner. He is an excellent resource for everything social media.

    25. David Sable is the CEO of Y&R, one of the largest advertising firms in the world.

    26. Content marketing trumps traditional marketing these days, and who else better to lead you in this area than Joe Pulizzi, Founder of Content Marketing Institute.

    Personal Branding Experts

    Part of what we market in our personal career is our brand. When people hear your name, what kind of brand comes into their mind? What traits and qualities do they associate with you?

    Here are some personal branding experts from LinkedIn to improve your own brand.

    27. Dorie Clark is the author of Stand Out and Reinventing You. He can help you craft the professional image you’ve always wanted.

    28. Dan Schawbel is the managing partner of Millennial Branding. If you’re a millennial, Dan is the guy to help you craft your personal brand.

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    29. Lisa Gates is the expert to follow if you’re negotiating for higher salaries and promotions.

    30. If you’re a Baby Boomer, Marc Miller will help you navigate the continually changing landscape of the workplace.

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    31. To avoid getting your resumé moved to the “No” pile, read Paul Freiberger’s excellent advice.

    32. James Caan provides insightful ideas on careers in general. He is also a serial entrepreneur.

    33. Jeff Haden writes on various topics, such as leadership and management. He is the owner of Blackbird Media.

    34. If you’re looking for expert business advice on getting new customers and keeping them, follow Jay Baer.

    35. Suzanne Lucas, aka Evil HR Lady, is a great human resources specialist.

    36. If you need help in using Twitter to boost your career, Claire Diaz-Ortiz can guide you in the right direction.

    37. Ryan Holmes is the CEO of Hootsuite, a social media management tool.

    38. Customers are the lifeblood of a business and Colin Shaw focuses on revolutionizing this customer experience.

    39. Brian Solis often reflects on the future of business and how technology can disrupt our world.

    40. Nancy Lublin provides advice on more lighthearted topics, which are perfect after a long day’s work. She is the CEO behind Dosomething.org, a portal designed for social change; and the founder & CEO of Loris.ai and Crisis Text Line.

    41. Katya Andresen provides advice on how to manage your career. She was the CEO of Cricket Media and now responsible for the SVP Card Customer Experience at Capital One.

    42. Gallup has created a system to test what your strengths are and how to use them at work. Jim Clifton is the CEO of Gallup.

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    43. Adam Grant is a Wharton Professor and the author of Give and Take, which provides advice on why being helpful at work can accelerate your career.

    44. Hunter Walk is a partner at Homebrew Venture Capitalist Company and has specialty in product development and management.

    45. If you’re running a nonprofit organization, follow Beth Kanter for expert advice on this area.

    46. Emotional Intelligence is necessary to succeed in your career, and Daniel Goleman is your expert for that.

    47. Rita J. King connects science, technology and business.

    48. Tori Worthington Rose is a Creative Director at Mary Beth West Communications, LLC. She has extensive experience in sales and digital media.

    49. If you’re looking for some advice on how to use writing and personal content marketing to boost your career, follow Ann Handley.

    50. Tim Brown is the CEO at IDEO and shares his insights on Leadership and Creativity.

    These are just some of the key thought leaders and movers in various industries. They will provide you with constant inspiration, as well as the willpower to pursue the career that you’ve always wanted. Their stream of expert ideas in their respective fields will help you become well-equipped in your professional pursuits.

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