Non-competes can advance the interests of investors to the detriment of entrepreneurs. That is why Founder Friendly Standard section 2.5 limits non-competes to the period of a founder’s work for the company, making it possible for a founder to earn a living in his/her industry after he/she leaves.
The data table below shows the odds of starting a High-Growth Company in each major city in America. This data serves as a baseline for the ecosystem innovation fund model that I introduced in Innovation Casino. I am sharing my research notes here so that you can incorporate this data into your angel investing or venture capital models.
Founder Friendly Standard and customer-funding can help founders avoid “No market need, Running out of cash, Not the right team,” and 7 more reasons startups fail.
The above graph shows the top 20 reasons why startups fail from CB Insights. I marked up the graph with green checkboxes to show which risk factors customer-funding (also called bootstrapping) can help you manage. Orange checkboxes denote risk factors that Founder Friendly Standard can help manage.
Risk Factor: No market need
If you’re bootstrapping, you’ll find out pretty quickly if there is no market need. Unlike your angel and VC-funded cohorts, you’ll be able to make fast pivots while they’re lining up their organizations’ change management strategies.
Risk Factor: Ran out of cash
If you are bootstrapping, you are financing innovation with organic cash flows. This is a key growth driver in the Credit Suisse Family 1000 research. If your company is controlled by its founders, you’re more likely to pace yourself, spending the money like it’s your own vs. your VC-funded competitors who are quick to spend (principal–agent theory).
How the startup struggles of three entrepreneurs inspired Founder Friendly Standard
What follows is the story of the startup struggles that inspired Dan, Adam, and me to write Founder Friendly Standard in 2017 to help other entrepreneurs avoid our mistakes. The story is called, “I’ll be the Sean Parker to your Mark Zuckerberg.” It was originally written as a speech about entrepreneurship I delivered one time at Southern Methodist University (SMU) on March 2, 2018.
When I was in my 20s, I met Gk Parish-Philp, a co-founder of DivX. I asked him how to get investors for my startup. He said, “You don’t want investors. They’ll take too much control.”
“That can’t happen to me,” I thought.
Years later, when I was getting forced out of a successful company that I started, I realized Gk was right.
Lowell McAdam, the CEO of Verizon, told analysts, “This is going to be one of those if-you-build-it-they’ll-come moments…” He was explaining at the JP Morgan Technology, Media and Telecom conference why Verizon plans to keep investing in microcells and attaching them to buildings.
It’s the same reason John Donovan told analysts at the Citi Technology, Media and Telecommunications Conference why AT&T was boosting its network capacity. When network speeds get faster, new technologies spring up to consume that speed. According to Donovan, “5G is different because its performance is so much better that it’s going to enable a whole bunch of new-to-the-world use cases, whether it’s live maps, autonomous cars, virtual reality.” We are indeed witnessing an if-you-build-it-they’ll-come moment for telecom.
Only a few Dallas drivers follow at a two-second stopping distance. Maybe this is why I crawl past two and three accidents every day on my way to work.
Generally, my blog is about designing business-to-business (B2B) marketing that shortens the customer journey. This takes focus and mental energy. Accident-related traffic erodes mental energy. Today at Toastmasters, I raised the issues of following too closely and distracted driving.
My assignment from the competent communication manual was Speech 2: Organize Your Speech. Below is the transcript.
Thank you for that warm introduction, Mr. Toastmaster.
Good morning! Last week, I left my house at 6:15am to drive to our meeting. Five minutes into my drive, brake lights lit up all around me.
A firetruck was blocking the fast lane on the 30. Ambulance and police lights flashed. There was a car wreck. I got onto the 635 freeway. Five minutes on the 635 freeway and the scene repeated itself. I passed the second accident. As I was taking the off-ramp, I found myself admiring a dark green, sleek Jaguar – as it cut me off.
I pulled into the parking lot here at Denny’s and breathed a sigh of relief. This story happened last Wednesday, but it happens every day in Dallas.
Early this morning, I was running on the treadmill and listening to an economics lecture by professor Timothy Taylor.
He said the year 1870 kicked off our modern era of economic growth. If you take the Gross Domestic Product (GDP), a measure of productivity, of the richest countries in the world in 1870 and compare them to the poorest countries, the ratio is 9:1.
One rainy morning in 2005, I walked out of class in Popovich Hall on the campus of USC. Next to the Starbucks coffee cart, I saw a floor sign, “Dennis Bakke. CEO of AES. Speaking at 11am.” I followed the arrow to an auditorium packed with MBA students. I was an undergrad, and I had happened upon something great. I found an open seat. What I heard next made an impact on me that has lasted to this day.
According to Quantcast, Yelp is the tenth most popular website on desktop and the second most popular website on mobile in the United States. With so many sites out there, why is Yelp so special?
My theory involves Yelp’s use of identity. Identity is central to the human experience. One of the first things we learn is how to say our names, “I am Eisaiah. I am Susie. I am Peter.”
Yelp’s users call themselves as “Yelpers.” Top users are called “Yelp Elites.” Businesses identify themselves with stickers that say, “People love us on Yelp.” In the video above, there are 41 pieces of my identity attached to my Yelp profile.