Last year, I attended my first ever Startup Weekend. I had no idea I was going to leave the event with a new company, or that the following 12 months were going to be such a wild ride. I’m proud to say that so far, my team and I have managed to avoid becoming another failing Startup statistic! Johnny on the Spot, the surfer’s personal diary, has launched in the Apple store with a much improved version coming to both iOS and Android very soon.
Some of you have JUST attended a Startup Weekend for the first time. In a year’s time you might feel just as I felt: excited; exhausted; and armed with a whole lot of knowledge you didn’t have 12 months ago.
Starting and owning an entrepreneurial business is one of the steepest learning curves you will ever go through. I would like to take this opportunity to share a bit of what I’ve learned over the last year.
Start Marketing Now
You spend countless hours perfecting your product. You love it, and you’re sure the world is going to love it too.
But the telephones don’t start ringing. Your inbox isn’t bursting. Something must be wrong. But the truth is, no matter how good your product is, it takes a lot to get people to sit up and take notice.
Use the months (maybe even years) before you launch to build up a network of people who are going to care about your product.
Create a blog. Use it to build your brand name without pushing your product. Post articles that give your target customers value and create a positive image.
If you’re not sure what to write, hire a good copywriter. They’re worth their weight in gold.
Find other blogs in your field and guest for them. Again, don’t push your product – just choose a subject area of interest to your target market. This article about an issue related to our product saw us shoot to the top of the App Store for a week.
Make connections with other companies and referral partners. Find out how you can help them. Who is the one person that by mentioning your product will give you more interest than you could muster in a month? A blogger? An industry expert? An ambassador? Find them, and be very, very nice.
Engage in Twitter conversations with other people in your industry. Start Instagram, Pinterest, Facebook accounts. Use the time to work out which channels work best for you.
But don’t, most definitely don’t, leave all this until the last minute!
Company shares don’t have to be complex
Financial shares, and how to divide them up, are one of the most difficult issues facing a Startup. The more you start looking into them, the more complicated they become. What class of share should everyone have? Do I give them share options? Voting Shares? Non-voting shares? And how on earth do you decide who gets what?
One thing to bear in mind with shares. You are not going to get it right.
I’ve really gone full circle with this with regards to Johnny on the Spot. Everything was fine until I began to realize that some people weren’t putting in the effort they’d originally promised and some people were much more valuable than I thought.
I looked into ways of calculating team members’ individual value and came across the Grunt Fund concept, essentially a spread sheet into which you put all the hours you work and it calculates your ‘piece of the pie’. We combined this with a system that worked out your hourly rate based on age, experience and job type. All really useful, but in practice very time consuming. Considering we’re all still working around regular jobs on the project, I wanted every hour possible to be going into getting it ready for launch.
Example company using the Grunt Fund calculator.
For me, going back to my original, simple approach has been the most refreshing decision I’ve made in ages. We agreed percentages based on everyone’s contribution to date and signed an agreement that stipulated they would get them when we launch the next version.
My final piece of advice would be to leave divvying up shares for as long as you can. A year down the line and I’m only just allocating shares for Johnny on the Spot. I’m very glad I didn’t do it any sooner.
It also makes you far more attractive to media. Going to people with just a product can be really hard. Going to them with a story about how you are trying to raise funds for a product and why is a much more appealing approach. What’s more, when you get funded, they may well do a follow up story about how they helped you get funded.
A word of warning – Crowdfunding isn’t easy and if you choose to go down this route you need to prepare for one hell of a month, and to do everything you can to make sure you get funded. Including funding it yourself if needs be. But the rewards, even if they don’t end up being financial, will be well worth the effort.
After the excitement of Startup Weekend, there are going to be some huge anti-climaxes. Long periods of frustration where it seems like nothing is happening. Late, unrewarding nights. Welcome to the trough of disillusionment.
Don’t worry. It’s all part of the process. If your idea is good enough for a team of people to believe in, and you have the passion, then you’ll see this through. Embrace the hard times and do what it takes to get through them. However good an idea is it takes more work than you can imagine to bring it to market.
Ask for Help
Starting with the Startup Weekend you are going to be surrounded by people who have been through the exact same process you are about to embark on and are more than willing to offer their help. Make sure you ask them! Once the Startup Weekend is over and you’re out in the real world, seek out potential mentors. There aren’t many people who are too busy to be bought a cup of coffee. Admitting we’re feeling a bit lost and need some help doesn’t come easily to most of us, but getting over that and mining the knowledge of those more experienced than yourself is one of the best uses of your time as a Startup entrepreneur.
It’s your product
By taking the leap of faith and putting time, money, sweat and heartache into your product, you are doing something really interesting and exciting. Everyone, from friends and family to the bloke down the pub (bar) is going to be interested, and they will all have an opinion on how you should go about it. “It would be awesome if the app could do this…” “Why don’t you add this…”
Feedback can be great and you’d be foolish not to take it on board, especially if it comes from a potential customer. But don’t forget this is your product. Everyone is going to have their ideas, but not everyone is going to be sitting up until 2 in the morning working out marketing strategies. Don’t try and incorporate everything to please everyone. Stick to your core concept and make it happen!