If you can craft a compelling pitch in 10 minutes for something called  Banana Tax, imagine what you can pull off for something you’re passionate about? Here’s how we worked it.

1. We all wrote some random words on pieces of paper.
2. We formed into partners and drew two random words for each team.
3. We then had 10 minutes to brainstorm the first pitch.
4. One partner then pitched to everyone. You have 2 minutes.
5. Once each team had pitched once, we all gave feedback on the pitches.
6. We broke into teams again for 10 minutes to brainstorm the second partners pitch, incorporating the feedback.
7. Your partner then pitches.
8. More feedback, done.

This was our first time running this event and IMHO it was great. The feedback in the room was massively valuable and we just don’t get enough chance to actually practice pitching day to day.

I’d love to hear what others who attended thought. Please comment below if you were there.

Goal #1 at Startupify.Me is launching new technology businesses. A close #2 is building up our developers networks and getting them working directly with the people leading our industry. We’re combining those goals with our mentor program. Our mentors have committed to spending time here at ThreeFortyNine working directly with our developers on our projects.

Today, we listed a glimpse of some of the people our developers and clients will be working with. If you’re a developer who feels you have the chops to get into the world of building software based businesses, then let us know. We’re hiring, like right now!

My response was to disagree. Here’s my concern with ramen profitability, as a goal. A large part of entrepreneurship involves gambling on yourself. You have to become very good at measuring, and taking on, risk. No risk, no nothing. Risk is a requirement. You have to measure that risk effectively so that you aren’t taking unnecessary risks. Once you do take a risk, preparing a series of safety nets is just you deciding you’re going to fail.

“Every person who wins in any undertaking must be willing to burn his ships and cut all sources of retreat. Only by doing so can one be sure of maintaining that state of mind as a burning desire to win, essential to success”

Your subconscious is powerful. If there’s an exit available, it’ll take you there. I speak in public occasionally. I swear, in every case, had someone said to me right before I went up “hey, sorry, we’re running behind, do you mind going next time?”, I’d be all over it. Exit available, exit taken.

There are times when you should be removing failure as an available option instead of preparing it. Did you take driver training when you got your license? Remember being taught about the point of no return when driving into an intersection? As you’re approaching, you are aware of the green light and that it may turn yellow. You explicitly pick a point in time, after which it doesn’t matter if the light turns yellow, you are going through that intersection. It it turns yellow before that point, you hammer on the brakes and stop safely.

What’s the point? The point is that once you pass that point, you can focus and things get simpler. You no longer care about the colour of the light. If the light changes, you don’t flinch, tap the brakes, you just focus on the traffic in the intersection and your only job is to drive through it.

Remember jumping off bridges as a kid? Someone triple dog dared you? Why accept dares like that? Simple, you’re using peer pressure to remove your safety net. You no longer have any choice except to step off that bridge.

Parkinson’s Law says that “work expands so as to fill the time available for its completion”. For entrepreneur’s it’s worth considering the role safety nets play. Is it possible that success only expands so as to fill the safety nets available?

“No one likes schleps, but hackers especially dislike them. Most hackers who start startups wish they could do it by just writing some clever software, putting it on a server somewhere, and watching the money roll in—without ever having to talk to users, or negotiate with other companies, or deal with other people’s broken code. Maybe that’s possible, but I haven’t seen it.”

The cliche ‘sales solves all problems’ applies here as well. I spoke with friend recently who is a seed stage investor. I asked them what is the one thing they look for in an investment above all else? Product management skills, user experience, rockstar coder? Their answer was the ability to sell. They require all of those other skills but those can be augmented, taught, hired for. If the person they’re investing in doesn’t appear to have the ability to sell themselves and the product then no deal.

If I wake up in the morning stressed about a product or business I’m working on, I’ve trained myself to focus on selling more that day. If I wasn’t able to sell yesterday then my current plan is flawed. So I make a new plan and go to work selling it. Lean startup folks like to call this a pivot but believe me it’s nothing they created. This is a quote from 1937:

“If the first plan which you adopt does not work successfully, replace it with a new plan, if this new plan fails to work, replace it, in turn with still another, and so on, until you find a plan which does work. Right here in the point at which the majority of men meet with failure, because of their lack of persistence in creating new plans to take the place of those which fail.”

Remember that selling isn’t just about revenue. Selling is about acquiring a customer. Acquiring a customer gets you someone to work for, deliver value to. It gets you your list of todos for today. It gets you out of your office. You can’t hide in your office if you’re selling.

“Thomas A. Edison ‘failed’ ten thousand times before he perfected the incandescent electric light bulb. That is — he met with temporary defeat ten thousand times, before his efforts were crowned with success”

If you’re in software, chances are slim you have any experience selling. Selling doesn’t always mean you’re literally on the road selling. Sales support is selling. Product development is selling. Software development, done well, is selling.

I’m exciting about hosting our half baked session because of that, get us some time to practice selling. You’re given two random words, 5 minutes to prepare, then you have to pitch. You have to focus on who the customer is and what they’re problem is. Fail. Great, you have another 5 minutes to make a new plan and your partner pitches again. Rinse, repeat. The hope is this practice helps us all sell better.

“You have to understand, we’re a really simple band. We think we suck and we try really hard to make good records and we practice.”

His sentiments reminded me of the startup scene. First time entrepreneurs often believe their path to success is a beauty contest. We’re immersed in pitch contests, incubator application processes etc that’s it’s hard not to get caught up in it. There is a lot of ‘putting lipstick on pigs’ going on in the startup world. That lipstick line isn’t mine, I stole that from a local tech investor lamenting the beauty contest atmosphere we’ve cultivated. Back to Grohl..

“Something’s got to give. It can’t be song contests on television for the rest of our lives. It can’t be the same playlists on every radio station for the rest of our lives. It can’t be music made entirely by computers with people talking over it the rest of our lives. It can’t go that way, it just won’t.

I feel like as a musician and a part of this rock’n'roll scene, I have a responsibility to make shit real, to not think about all of that other bullshit, not think about making music for money or promoting music for fashion, the contests. My responsibility is to make shit that’s real. Once you start doing the right thing, it will get better.”

Startups are businesses at the end of the day. Creating a new business is not a contest. I’m not suggesting you don’t apply for an incubator, pitch to investors, or try to win a local pitch contest. Just realize none of that has anything to do with building your business. If you decide to go those routes, make sure that you’re solving a problem *you* actually have! Think about what Grohl says, don’t let all that other bullshit distract you. Focus on your product, your market, your customer. Make shit real, deliver.

When Grohl talked about how they keep their focus, it reminded me of what we’re doing here at ThreeFortyNine…

“we don’t pay attention to any of that. We have our own studio, our own label, and we do everything on our own terms”

We’re working hard to build ThreeFortyNine into our clubhouse. A place where people work hard together to build new tech businesses on their own terms. We’ll earn that freedom only through hard work and practice not by winning beauty contests. Focus on your customer and your product, product, product! Did I mention your product?

“No Talk, All Action, Launch a Startup in 54 hours.”

Heard of Lean Startup Machine?

“Lean Startup Machine will change the way you view entrepreneurship forever — for the better”

While I’m only an outside fan of event’s like these, what I love most about them is their unrelenting focus on action based networking. Networking is second nature to established entrepreneurs. For the rest of us, it doesn’t come as easy yet. These events shift the focus away from networking for the sake of networking and instead get straight to the action. Through the action, networking occurs.

We already have a lot of networking, let’s get together and have a drink, events. What we need more of is, let’s get together and build something together. My question, would you participate in an event with the following framework that we’d run in conjunction with Startupify.Me?

• One evening, starting at 7pm at ThreeFortyNine, ending whenever we’re done or pass out.
• Project to work on is set in advance. We’ll need to build a process to select them, possibly taking on some hack-for-good projects? They will likely be new projects, however, we may have some that span events?
• 6 to 8 attendees, ideally with diverse skillsets, ie not all coders.

Starting at 7pm, we quickly set the work agenda for the evening and decide on deliverables. Then we get to work and build it, in an evening. We’re not likely building a startup in an evening but you never know.

This is an opportunity to work on something tangible with people in your community. It’s a chance to get a taste of this whole startup thing. It’s a chance to try your hand at something you don’t work on all day at your work.

Interested? Please let me know? Comment below or email me directly with your thoughts.

PS. I’m working with Leila and Corey to bring a HackDays event to Guelph early next year. Update, registation page is up for Guelph HackDays on Feb 18th.

The format would likely involve an invited speaker who handles the bulk of the material for that evening followed by an intimate Q&A. We’d host it at ThreeFortyNine, which means we may be able to fit a pint in after we wrap up.

Do we need something like this locally?

Would you consider attending?

What topics need to be covered?

Can you offer up a better name?

I spoke at Guelph web maker meetup recently about how to quit your crappy job. The talk was a tongue in cheek way to talk about what a real business is. I used Josh Kaufman’s definition, which is this:

“Every successful business (1) creates or provides something of value that (2) other people want or need (3) at a price they’re willing to pay, in a way that (4) satisfies the purchaser’s needs and expectations and (5) provides the business sufficient revenue to make it worthwhile for the owners to continue operation”

Most startup folks think they need Fred Wilson, Guy Kawasaki and Clay Shirkey as advisors. While I’m sure those guys would be great to chat with, you don’t need them. I’m not suggesting you turn them down but what you need are folks who have experience building real businesses, ie those 5 points above. Chasing rock star advisors is a massive waste of time with questionable returns. To continue that metaphor, most rock stars are so far removed from the required grunt work of an early stage touring band that they can hardly relate. Can they write a cheque, make some intros? Sure but that’s likely not what you need today.

For someone who has yet to start and run a successful business, your available pool of mentors includes everyone who has done just that. For me, my mentors include the woman who owns my local coffee shop, the guy who cuts my hair, my bookkeeper, the hot dog cart guy downtown, etc.

At their roots, even sexy tech startups are still just plain old businesses. Yes those folks can’t help you decide whether to build native mobile apps or html5 but those are the easy parts. Stop chasing or waiting for the rock stars. Trust me, they will be lined up at your door once you have your thriving business alive and growing. Go out now and buy a coffee for a new mentor, share with them and most importantly, listen!

Every great sitcom eventually needs a Robert Downey Jr but he’ll gladly sign up for season two. No one wants him for their pilot.

Finding Demos

I do not want to chase people to submit demo pitches. It’s a lot of work to find people who want to demo. So let’s distribute that work. I’m looking for 5 volunteers to help me with this. All that I’m asking is that you make the commitment that you will find us two people who will submit a pitch for a demo spot. That guarantees our selection committee will have at least 10 demos to choose from. Please contact me directly if you’re willing to make this commitment and help us find great demos. I will make sure to recognize your efforts publicly at our event.

Music

Having live music after our event was an experiment. For some reason I never took it beyond ourselves. Part of the motivation of having live music was to provide a means for our local arts and music scene to collide with our tech scene. That isn’t happening as we’re doing it today. We’re basically exposing a single artist to the tech scene. So this time around, we’re going to promote the music show on it’s own. The intent being that when we wrap up, some music fans will trickle in and they’ll have no choice but to co-mingle with us techies.

Thoughts? Feedback?

In the meantime, let me clarify some of the key points.

Forced Exit

We are not a custom development shop focused on building prototypes for clients. We will turn over our entire team every 6 months. All the developers exit at the end, ideally into a new business they’ve helped prove. For the client, we offer an opportunity to find the technical cofounder this new business demands. For our developers, this is your chance to step into a new business and ride shotgun.

Built To Accelerate

While we are talking about creating startup companies here, it is a unique model. We want these new products to have the best shot at survival. What our client companies bring to that is an existing business. They have an experienced team who has created value, marketed it, sold it, delivered it, and done it all within a financially viable model. Ie, they’ve proven they can run a business. Some, or all, of those are what a new entrepreneur needs to learn in a hands on fashion. Once Startupify.Me has proven this new product can get to it’s market, we now have everything required to truly accelerate it. We don’t need to find angel investors. We don’t need business mentors. We don’t need a market, a sales team etc.

Scale

All our clients have existing businesses. Most of those businesses are services businesses, which means each dollar in is tied directly to people, which means they are difficult businesses to scale. As well, most of businesses are necessarily connected to their founders. What we’re offering those client’s is a chance to co-create a new technology based product business. It will certainly have to leverage their existing business but in the case we’re successful, it will scale well. The leverage points may be technology they’ve built to deliver their services better, their client base, an ability to access a particular market, etc.

We have a few more spots left on the bus for client businesses and software developers willing to take their first step down this entrepreneurship path. Let me know if you’re either of those!