7 Teeth Gnashing Mistakes I Made With My Start Up(blog.lendingclub.com)
blog.lendingclub.com
7 Teeth Gnashing Mistakes I Made With My Start Up
http://blog.lendingclub.com/2008/08/26/7-teeth-gnashing-mistakes-i-made-as-an-entrepreneur/
19 comments
Loved the article. Ambivalent about the office advice. There's a false dichotomy here between "basement" and "vanity offices". A couple hundred a month will get you a couple rooms and an Internet connection. Having a single place for everyone to work that is an office, and not your house, has advantages. We find that they're worth it (and I dragged my feet for over a year on this, forcing my team to work out of the library).
Agreed. Some people can work just fine at a home office or basement. Others (like me) find that a strict separation between work and home makes both go more smoothly.
Another common mistake: Imagining your business will have a fairytale YouTube-style ending.
"Not Using Open Source" - I wish more small businesses would realize they don't need a full custom website when they shell out 5K for a site that I could do with a custom wordpress theme for a few hundred.
Best list on the topic I've seen in a while!
Living through a start-up for last 5 years they are all great. Here's a couple thoughts on some of the items.
* Get book on managing people and read them
* If you dare hire friends, make sure you understand each others expectations to a 't' and check-in often.
* Spend as if you have to live on your own means
* Prove your business model early
* Dont define yourself by what your start-up is. Keep yourself intact.
Living through a start-up for last 5 years they are all great. Here's a couple thoughts on some of the items.
* Get book on managing people and read them
* If you dare hire friends, make sure you understand each others expectations to a 't' and check-in often.
* Spend as if you have to live on your own means
* Prove your business model early
* Dont define yourself by what your start-up is. Keep yourself intact.
There's nothing wrong with raising money before you have customers at all. A lot of great businesses started out that way. You just have to be adaptable.
I'm not sure I agree that starting a business with your friends is a bad idea. If things go wrong, perhaps it would be worse, though?
starting a business with friends and hiring friends are two different things.
Exactly. Having a friend as a W-2 employee was a terrible experience for me. I wouldn't be opposed to starting a business with a friend though.
In what way is this different? I've done both (hired friends and partnered with friends), and they seem to have similar advantages and disadvantages.
Advantages: you enjoy the people you work with; deeper level of commitment and trust.
Disadvantages: if your professional relationship struggles, your friendship struggles; conflict of interest between friendship and business.
Advantages: you enjoy the people you work with; deeper level of commitment and trust.
Disadvantages: if your professional relationship struggles, your friendship struggles; conflict of interest between friendship and business.
If you're in business with friends, either the friendship or the business needs to come first, and everyone should clearly know what that is. Are you willing to harm your friendship for the sake of the business? Or are you willing to let your business suffer for the sake of the friendship?
If you're in business with strangers, the decision is easier.
If you're in business with strangers, the decision is easier.
Nos. 3,4 & 5 - Sounds just like the current startup I work for... Time to jump ship!
I don't know, it sounds like a sweet gig if Nos. 3,4 & 5 are the problem. I'd say start saving and keep the resume polished though. Oh, and steal your chair on the day it ends. :)
Can't the IRS get you for mixing personal finances with your business finances?
Mixing isn't the right word. Its more losing track of who owns what and who owes what. Then when they ask you to prove something such as if it was your business taking the deduction, or if it was your business receiving the income, not you, then you can't. And then they get you.
I wouldn't even recommend going into business with a friend.
Curbing too much diversification!
What?
It is okay to diversify on napkins (concept stage) or after series A/B/C... but stick to the plan in the middle path.