Monday, February 9, 2009

The Art of the Start - A Summary

I recently read the book "The Art of the Start" by Guy Kawasaki and as a wannabe entrepreneur I really enjoyed reading this book and found some nuggets of wisdom that I want to remember and apply in future. Below is a summary of what resonated most strongly with me:
  • Find a reason to do business – a reason bigger than making money. Create something that does some good, something helps people. Working for a cause makes what you do meaningful and keeps you going through the tough times. An example would be – “helping people save money”.

  • Think of a catch line or a mantra defining the product/service/company that people will easily remember and associate with the company. For instance, Nike’s mantra is – “Authentic Athletic Performance”.
  • Start creating and delivering the product/service instead of waiting to perfect it. There is no better way of learning than getting your feet wet.
  • Decide on your business model or how the business will make money. Keep it simple. Test it for sustainability – determine why people would want to keep paying for the product/service.
  • Take project plan approach in execution. At the simplest level, compile major milestones and steps that will lead to them. This will introduce discipline in execution and ensure that things get done.
  • Position the offering - make it personal. For example - this product “reduces air pollution” vs. “prevents you from having lung problems”. The latter is more personal. Keep it customer centric – focus on what your offering does for the customer.
  • In early days of the business, manage cash flow, not profitability because it is cash that will keep the business afloat. Good cash flow essentially means – short sales cycles and recurring revenue.
  • Focus on function not form in each and every part of the organization from the offering to operations. Adopt a frugal approach – under-staff and outsource. It is better to have too much work and not enough people as opposed to the other way round.
  • Build a board of people who can act as trusted advisers to your business.
  • Recruit evangelists. These are typically people who like the product or service and are happy to help spread the word. Ask them for help. Equip them with the right tools and make it easy for them to spread the word.
  • Foster a community focused on the product/service.
  • Ensure that a business plan addresses the following: - Problem - Solution - Business model - Unique Selling Proposition or the magic formula - Marketing and sales - Competition - Management team - Financial projections and key metrics