Jordan Weisman - Warning startups maybe dangerous to your health (and ego)

WARNING: STARTUPS MAY BE DANGEROUS TO YOUR HEALTH

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Jordan Weisman Jordan

Weisman

SURGEON GENERAL’S WARNING: The following speech contains; gross oversimplifications, unverified correlations, nonsensical assumptions, illogical conclusions, and downright stupid stuff. Historical performance not indicative of future performance – your actual mileage will vary. None of the claims made in this speech have been verified by the Federal Food and Drug Administration. Produced in a facility that hires and retains nuts.


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EntrepreneurEntrepreneurRestaurateur Restaurateur

Likely to FAIL.

Dictionary Definition:


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Entrepreneur


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Entrepreneur ( Icarus )


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ICARUS’ JOURNEYICARUS’ JOURNEY

1. Vision2. Leadership3. Funding4. Creation5. Hubris6. Failure

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VISIONVISION

• Perceiving something via the eyes

• Seeing something that doesn’t exist

• Seeing something that doesn’t exist BUT should exist

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LEADERSHIPLEADERSHIP

You must convince others to BELIEVE in something that doesn’t exist.

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CON MEN


FUNDINGFUNDING

• The Rumpelstiltskin equation Straw + Labor = Gold Alchemy

• The transformation of common materials into precious metals (i.e. weaving straw into gold)

• Sources of Funding– Friends & Family– Angel– Venture– Crowd Funding

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CROWDFUNDINGCROWDFUNDING

INSPIRE them with your vision.ILLUSTRATE that vision for them.PROVE that you can realize that vision.MARKET the KS Campaign.

People will only “invest” in your idea AFTER YOU have invested in it.

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COSTS of CROWDFUNDINGCOSTS of CROWDFUNDING

• Website’s share & credit card processing– Figure on a combined 10% off the top

• COGs AND Picking, Packing, & Shipping– Figure on 15% to 20%– On the higher side for smaller campaigns

• Community management– During the funding campaign AND Throughout the

development period!

• Early adopter audience has already “bought”– Your best costumers will produce 0 revenue at launch

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Giving BIRTH to something is:

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MESSY and PAINFULMESSY and PAINFULJust ask your Mother

CREATIONCREATION

To create games and game companies requires: Talent Time Money Human Sacrifice


HUBRISHUBRIS

• Hubris– Excessive pride or self confidence

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THE MECH & THE MOUSETHE MECH & THE MOUSE


1980 Founded FASA Corporation

1987 Founded Virtual World Entertainment

1989 Opened BattleTech Center in Chicago

1992 Tim Disney buys a majority of VWE

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1978 U.S. Merchant Marine Academy


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Cheap to buildCheap to operate


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Expensive to buildExpensive to operate


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Morale of the Story:

1.Don’t let early success go to your head

2.Don’t believe your own hype

3.Track data and rely on it - not on your “gut” or emotions


FAILUREFAILURE

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It Sucks !It Sucks !


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A team’s ability to FAIL is the best predictor of it’s eventual

SUCCESS.


SUCCESS & FEARSUCCESS & FEAR

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A Tale of Turkey and Clix


Turkey & ClixTurkey & Clix

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• Cheap cool looking figures• Big armies• Figures don’t break easily• Fast playing• Rules they can understand

• For Kids• Having to Superglue and paint• Figures are expensive• Games take forever to play• Figures break easily• Rulebooks are huge

• For Retailers• Takes up too much space• Low margins

Barriers to Entry:What Kids Want:



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Gameplay:

Fast playing

Short Rules

No in-game tables or charts

Low cost, Prepainted, Preassembed figures

Retailers:

Small footprint

High margins

Organizedplay

Tooling usage and amortization


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FASA Passed – too risky

Started Wizkids

Wizkids grows quickly

Wizkids buys FASA

Topps Inc buys Wizkids


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New product concept

Wizkids team had become risk adverse

2 years later . . .


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WHY ? No personal financial risk Low corporate financial risk No distribution risk

Fear of Failure ! 3 Hit lines in a row Wizkids was “Golden Boy” Any Failure would be Very Public


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23% 77%

Who would you rather be?

Source: World Renowned statistician Jerry Seinfeld


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Length of Development

5 years

3 years

1 year

6 months

3 monthsWe now develop products

LIVE & IN PUBLIC


• Start-Ups have Less of everything:– Less resources– Less access to talent– Less access to capital– Less bureaucracy – Less competing agendas

• Start-Up’s Superpower are that . . .

– They are expected to FAIL!

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WHY do I LOVE Start-Ups?WHY do I LOVE Start-Ups?


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Thank You

Jordan Weisman

Thank You

Jordan Weisman

Business

Jordan Weisman - Warning startups maybe dangerous to your health (and ego)