How to start a Startup – Lecture 1

This week we found an interesting video related with startups that we wanted to share and comment a little bit. Bellow you have the link if you’re interested in knowing more.

HOW TO START A STARTUP: LECTURE 1

Why to start a Startup – https://www.youtube.com/watch?v=CBYhVcO4WgI

So the four areas are: You need a great idea, a great product, a great team and great execution.

You should never start a Startup just for the sake of doing so. There are much easier ways to become rich and everyone who starts a Startup always says that they couldn’t have imagined how hard and painful it was going to be. You should only start a startup if you feel compelled by a particular problem and that you think starting a company is the best way to solve it. The specific passion should come first, and the Startup second.

The first of the four areas: a great idea. It’s become popular in recent years to say that the idea doesn’t matter. You need to build a business that is difficult to replicate. This is an important part of a good idea. Derivative companies, companies that copy an existing idea with very few new insights, don’t excite people and they don’t compel the teams to work hard enough to be successful.

Its best if you’re building something that you yourself need. You’ll understand it much better than if you have to understand it by talking to a customer to build the very first version. If you don’t need it yourself, and you’re building something someone else needs, realize that you’re at a big disadvantage, and get very close to your customers.

To build a really great company, you first have to turn a great idea into a great product.

Step one is to build something that users love, all the other stuff —PR, conferences, recruiting advisers, doing partnerships—you should ignore all of that, and just build a product and get it as good as possible by talking to your users. It’s better to build something that a small number of users love, then a large number of users like. It is much easier to expand from something that small number of people loves, to something that a lot of people love, then from something that a lot of people like to a lot of people love. One way that you know when this is working, is that you’ll get growth by word of mouth. If you get something people love, people will tell their friends about it. This works for consumer product and enterprise products as well. When people really love something, they’ll tell their friends about it, and you’ll see organic growth. Very few startups die from competition. Most die because they themselves fail to make something users love, they spend their time on other things.

People have this vision of being the CEO of a company they started and being on top of the pyramid. Some people are motivated by that, but that’s not at all what it’s like.
What it’s really like: everyone else is your boss – all of your employees, customers, partners, users, media are your boss. I’ve never had more bosses and needed to account for more people today.

“The life of most CEOs is reporting to everyone else, at least that’s what it feels like to me and most CEOs I know. If you want to exercise power and authority over people, join the military or go into politics. Don’t be an entrepreneur.”

-Phil Libin

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