Starting up and staying alive Adam Siegel e. [email protected] t. @inklinghq, @amsiegel b....
22
Starting up and staying alive Adam Siegel e. [email protected] t. @inklinghq, @amsiegel b. blog.inklingmarkets.com February 26, 2011
-
Upload
barnard-booker -
Category
Documents
-
view
213 -
download
0
Transcript of Starting up and staying alive Adam Siegel e. [email protected] t. @inklinghq, @amsiegel b....
Starting up and staying alive
Adam Siegel
e. [email protected]. @inklinghq, @amsiegelb. blog.inklingmarkets.com
February 26, 2011
Topics
1. Background
2. Being a consultant
3. Starting a company
4. Lessons learned
5. Questions
Background
• Graduated from Indiana University in spring of 1995, Bachelor’s Degree – political science
• Went to work for Accenture (then Andersen Consulting) in fall of 1995
• Got seed funding from Paul Graham’s yCombinator to start a company in November 2005
• Left Accenture in December 2005
• Now the co-founder of 2 businesses: Inkling (inklingmarkets.com) and Cityposh (cityposh.com)
Being a Consultant
Projects:• Internet Business Solutions (what should companies be
doing with the “world wide web?”)• AT&T Intranet Strategy and Development• ac.com redesign• MCI & MCIWorldCom• Dot.com incubator• Instant messenger bots for language translation and
meeting scheduling• Intel global extranet for Intel Inside program• U.S. Department of Agriculture• Digital pen business applications• The interactive wall (American terminal at O’Hare)• Generating new ideas: microgrants / internal blogging• Tea time with Adam
Being a Consultant
Post mortem on consulting life:• Pick up an enormous amount of skills in a very
short period of time• You become a food and hotel snob and a loyalty
point program whore• Good project management skills are extremely
valuable…and rare• Design was considered just another ingredient in
the recipe for a successful project• Brutal lifestyle if you’re a “family person”• Regardless of technology, expertise, and
reputation, it still always came down to trust and “people skills” to get things done.
• Really isolated from outside world
Leaving Consulting
Why I left:
• 2005 New Year’s resolution :)• Company and nature of work was changing• Found I wasn’t looking up to anyone anymore• I didn’t like what my value system had become• Decision making always second-guessed and always
driven by someone else’s agenda• No longer felt inspired • Amount of work > impact• Entrepreneurial bug wasn’t being addressed
Starting up
• Contacted by an old colleague who had an idea• Applied to a start-up competition run by
yCombinator (http://ycombinator.com) in Nov ‘05• Selected• Quit job• Rented a house off Craigslist in Cupertino, CA• Drove to California on January 1, 2006 with dog• Built the product through end of March• Launched end of March• Returned to Chicago in April
• No paying customers• No salary• Mortgage, dog• Had to fire one of the co-founders
About Inkling Incorporated
• Elevator pitch: Using prediction markets, Inkling collects opinions from your employees, partners, and customers to more accurately forecast business outcomes
• How it’s used: Businesses use Inkling to quantify operational risks, to pick what projects to fund, and better understand internal and external trends.
• Value: Inkling is an “early warning system” to help companies be more proactive in their decision making, cut through the politics and information spin inherent in any large organization, and raise awareness and collaboration around important issues.
Inkling Today
• Self-funded• ~40 clients including Procter & Gamble, Chevron,
Ford, AstraZeneca, DowCorning, and the U.S. Government
• 4 employees• Largest marketplace ever was CNN for the 2008
election: 65,000 traders, 2.5 million trades in 6 months
• Robust pipeline• Profitable• We still don’t have dedicated office space• Product is stable and scalable: SaaS and licensed• Our time is 100% our own
Lessons Learned
1 of 12
It all comes down to trust in every aspect of the business: customers, co-founders, employees, partners.
No trust, no success.
Lessons Learned
2 of 12
Boot-strapped companies have to work twice as hard to maintain credibility vs. venture-backed competitors. However you do have some advantages:
• Can stay lean, focused, and nimble• Prove you can be a viable business before taking
more funding which increases your value• Forces you to always be scrappy• Certain forums appreciate boot-strapped more
Lessons Learned
3 of 12
Be able to describe what you are doing in a few sentences and the value you will bring or people lose interest. (You’re a small company, not from a big consulting firm or University)
Lessons Learned
4 of 12
Technology for technology’s sake may be interesting and generate some sales, but eventually you need to be solving someone’s problem and fit in their world.
Lessons Learned
5 of 12
Resist the urge to keep adding feature requests, especially when you’re small. Instead iterate on what you already have and make it better. (Some features on Inkling are in their 20th and 30th iteration)
Features you don’t use yourself are not going to get the love they deserve.
Learn to say “no.”
Lessons Learned
6 of 12
Good design is highly coveted these days and is a barrier to entry - it has a direct impact on sales.
Lessons Learned
7 of 12
Take advantage of larger “buzz” trends if you are small (rising tides lift all boats)
Lessons Learned
8 of 12
LISTEN to people who have been through this before. Lessons learned are the most valuable information possible when starting a company and running a small business.
Look for another business to aspire to and model yourself after.
Lessons Learned
9 of 12
In a world of horrible customer service, good customer service really stands out.
• Quick response• Helpful• Friendly• Transparent
Lessons Learned
10 of 12
Don’t be a jerk and always be as responsive and helpful as possible.
You never know who knows who or what network someone is connected with.
People contact us 3+ years later that we end up doing deals with or get a reference from.
Lessons Learned
11 of 12
Cut your losses immediately and move on.
• Features• People• Business models
We’ve been through 1 founder, 2 accountants, 2 lawyers, 2 sales people, and a PR firm.
Lessons Learned
12 of 12
Founding and running a company means you’re exposed to everything. Translation: make sure you have the mental fortitude to do this. Know yourself.
