STARTUP MYTHBUSTERSThings you need to “unlearn” as an entrepreneur

Utku Azmanutku@citusdata.com

MYTH 1: RAISE $$ FAST TO BUILD MOMENTUM

FOR AGAINST

MYTH 1: RAISE $$ FAST TO BUILD MOMENTUM

FOR AGAINST• Pay big salaries to attract good

people

• No immediate sales/profit pressure

• Early start to marketing, build brand

• Unnecessary dilution

• Spending too much time & focus on money vs. other priorities

• Rushing into “not-so-smart” money

MYTH 1: RAISE $$ FAST TO BUILD MOMENTUM

My verdict:

MYTH 1: RAISE $$ FAST TO BUILD MOMENTUM

My verdict:

MYTH 1: RAISE $$ FAST TO BUILD MOMENTUM

BUSTED!

MYTH 2: ATTEND LOTS OF EVENTS, WORKSHOPS FOR XP

FOR AGAINST

MYTH 2: ATTEND LOTS OF EVENTS, WORKSHOPS FOR XP

FOR AGAINST• Hear lots of feedback, learn

• Network

• Practice pitching

• Takes a lot of time

• Too much advice, many in different directions

MYTH 2: ATTEND LOTS OF EVENTS, WORKSHOPS FOR XP

My verdict:

MYTH 2: ATTEND LOTS OF EVENTS, WORKSHOPS FOR XP

My verdict:

MYTH 2: ATTEND LOTS OF EVENTS, WORKSHOPS FOR XP

BUSTED!

MYTH 3: HAVE SPECIFIC GOALS AND PLANS (VS. REACTIVE)

FOR AGAINST

MYTH 3: HAVE SPECIFIC GOALS AND PLANS (VS. REACTIVE)

FOR AGAINST• Helps focus resources

• Aligns people on same goals

• Let’s you measure success, failure

• Rely on assumptions that may not be true

• Give up other opportunities, paths

• Takes time, adds overhead

MYTH 3: HAVE SPECIFIC GOALS AND PLANS (VS. REACTIVE)

My verdict:

MYTH 3: HAVE SPECIFIC GOALS AND PLANS (VS. REACTIVE)

My verdict:

MYTH 3: HAVE SPECIFIC GOALS AND PLANS (VS. REACTIVE)

CONFIRMED

MYTH 4: BUILD STRATEGIC PARTNERSHIPS W/ ENTERPRISES

FOR AGAINST

MYTH 4: BUILD STRATEGIC PARTNERSHIPS W/ ENTERPRISES

FOR AGAINST• Gets you a good reference

• You get resources, maybe money

• You may land a big deal at the end

• Enterprises are slow

• Engagements will tie up valuable resources

• Difficult to align goals

MYTH 4: BUILD STRATEGIC PARTNERSHIPS W/ ENTERPRISES

My verdict:

MYTH 4: BUILD STRATEGIC PARTNERSHIPS W/ ENTERPRISES

My verdict:

MYTH 4: BUILD STRATEGIC PARTNERSHIPS W/ ENTERPRISES

BUSTED!

MYTH 5: HIRE SLOWLY, FIRE FAST

FOR AGAINST

MYTH 5: HIRE SLOWLY, FIRE FAST

FOR AGAINST• Hire really good people

• Minimize bad influence on team

• Don’t have time to wait for prince charming

• Firing is difficult...

• May affect team morale

MYTH 5: HIRE SLOWLY, FIRE FAST

My verdict:

MYTH 5: HIRE SLOWLY, FIRE FAST

My verdict:

MYTH 5: HIRE SLOWLY, FIRE FAST

CONFIRMED

MYTH 6: FIND AN IDEA EVERYONE LIKES

FOR AGAINST

MYTH 6: FIND AN IDEA EVERYONE LIKES

FOR AGAINST• Feel good about yourself

• Win competitions

• You’ll probably get angel funding

• It’s probably not that revolutionary

MYTH 6: FIND AN IDEA EVERYONE LIKES

My verdict:

MYTH 6: FIND AN IDEA EVERYONE LIKES

My verdict:

MYTH 6: FIND AN IDEA EVERYONE LIKES

BUSTED!

BONUS MYTH 7: LISTEN TO EXPERT, MENTOR ADVICE