Spending money to validate your idea is the last step. There is a whole lot you can do if you understand business models to figure out if you are dead on arrival first. Let me take you through a thought process of how to evaluate a business idea. But first, you need to set your expectations with your initiatives. Are …
How do you start a billion dollar company from scratch?
I can share some thoughts from 3. First rule of fight club is you have no ******* idea it will be a unicorn. Anyone who says otherwise is full of ****. It’s like the victor rewriting history. So your question is actually something you ask a Tarot card reader. It’s a dumb question. There are things you can do to …
What happens to VCs and other investors when a startup fails and stops existing?
This happens a lot. It’s not a big deal. Generally: VCs forget you immediately Founders wonder WTF to do as they are likely broke Staff look for a job There are 3 outcomes (if you are in Bay Area): Fail with no cash left Fail with some cash left Fail and get an acquihire Fail with no cash left No …
What do startup founders typically get wrong when starting a business?
One could write a hundred+ points, but really it comes down to the basics. It’s such a boring answer, but getting the basics right matters. Everything else doesn’t if the fundamentals aren’t there. What are the boring fundamentals? Timing: The time has to be right. The research was done on this but I want to keep answers brief so they …
Is it a bad sign when a CEO of a company sells his stock?
Generally, yes. In public markets, it is always not a positive sign. If it is a small amount, fine. CEOs of public companies are typically not the founder. They are salary man (in Japanese terms) there with the goal to make bonus from LTIP and STIP structures. If they are selling it flags they don’t believe the stock is going …