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Building Your High-Tech Start-up

Building Your High-Tech Start-up 7
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Dr.JesperHunt,United States,Researcher
Published Date:16-07-2017
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Building Your High-Tech Start-up 1foreword Many of you have already decided and others are seriously considering to build a high-tech start-up company. Why ? 2the 4 most cited reasons  30% self employment, autonomy/freedom  20% income, wealth  15% like the challenge  10% achievement, accomplishment  25% other 3first, a definition What is a start-up ? A startup is a temporary organization used to establish and develop a repeatable and scalable business model. large scalable company startup • Business model found • i.e., Product / Market fit • Customer finding • Repeatable sales model 4no recipe to success, just some valuable tips There is absolutely no secret“recipe” or well known checklist that ensure success to your startup. There is, however, a remarkable number of wise considerations and suggestions that you can consider generated by decades of experiences in starting-up technology businesses. This chapter 1 oftoday’s lesson guides you though a number of those valuable tips as to: “how do I increase my chances of success ?” and, in the same time: “how can I stay far from the most frequent reasons of failure?” 5focus on the DOs and the DONTs My aim oftoday’s lesson is then to provide you with a number of“DOs” and“DONTs” that are suggested by my experience in starting-up and managing high-tech enterprises as well as by the experience of many others around the world who sailed the (very often) pretty rough waves of“I-start-my-own-enterprise”. 6some basic math Before anything else, all young high tech entrepreneurs should consider the simple and basic math of success in start-ups: success failure - you have roughly a one-third chance of losing time and/or break-even money - a one third chance to breaking even - and a good one third chance of becoming substantially suc- cessful and wealthy 7way to success  First and foremost remember that it takes a great deal of determination and perseverance because  Starting a company is a process, not an event  There is no such thing like and elevator to success, you have to take the stairs 8ways to fail The 6 most frequent reasons for failing in your start- up or business venture: 1. inadequate knowledge of the market 2. ineffective marketing or sales 3. underestimating competition 4. undercapitalization i.e., unplanned operating expenses 5. weak business plan 6. weak leaders or management team The latter is by far the most frequent and most fatal. 9building a successful high-tech start-up A. Founders / Management Team B. Products & Services C. Markets and Customers D. Business Plan E. Funding 10the importance of the Team  A weak Management Team is the most frequent deal-killer for almost all investors and Venture Capitalist even if the proposed idea or product is outstanding (i.e., VCs do not invest in weak teams).  Strong executive teams, instead, have significantly higher chances to become successful on a weaker Business Plan while weak Management Team are unlikely to be successful even with a great Business Plan. 11the ideal Team Team Leader 12the values of a successful Team 1. Problem solving - thoroughness, practicality, analytical ability, creativity, broad perspective 2. Motivation– drive, determination, persistence, initiative, goal orientation 3. Work habits– self-discipline, responsibility, integrity, dependability 4. Organization / planning– setting priorities, punctuality, flexibility 5. Interpersonal Characteristics– self-confidence, stability, friendly attitudes 6. Leadership – delegation, firmness, participation, example 13the DON’Ts of start-uppers 1. lack of integrity 2. lack of motivation 3. trying to retain all control 4. give poor directions 5. make business decisions for non-business reasons 6. hire ineffective friends or relatives 7. being slow to correct operational problems 8. inability to learn from the past i.e., repeat mistakes 14building a successful high-tech start-up 1. Founders / Management Team 2. Products & Services 3. Markets and Customers 4. Business Plan 5. Funding 15product Most people, especially engineers, believe they have invented the perfect product or perhaps they need to invent a perfect new product to start a business. In real life, that is not so 16product  As funny as it may sound, the definition of the product or service around which you build your start-up is MUCH less important than most people think.  It is in general advisable: - to strive for a superb execution in developing and marketing a perhaps less-than-excellent product rather than - for a less-than-excellent execution in developing and marketing a superb product. 17no “single” anything in your start-up No“single” anything in your start-up - no single product, - no single customer, - no single supplier, - no single investor. Remember to diversify every aspect of your business in order to diminish the risk. 18the important new products and technologies 1. innovation in energy - energy saving - new“green” sources of energy 2. next generation chips and memories, nanotechnologies-based 3. wireless communications of all kinds 4. new medical equipment, preventive medicine 5. life-sciences, genomics analysis 6. personalized medicine i.e., the right drug, for the right patient, at the right time and stage of the disease i.e., not just the“cut-burn &poison” type of medicine. 19the important new products and technologies 7. sensor networks and all its applications, the Internet- of-things 8. services for institutions and enterprises 9. WEB services of all kinds (but be creative ) 10. security services (surveillance, scanners etc.) 11. search & access services - enterprise search - access to information - visual access - geographic access - semantic access 20