Warner Music Exec Ping Ho Gives Important Tips For Music Startups

Music startups academy, Nashville, music startup,startup,startup tips,startups

Larry Miller, Medianet (L), Ping Ho, Warner Music Group (R) (photo: NMI 2013)

Warner Music Group’s Director of the Digital Strategy Team, Ping Ho, was in Nashville today for the Music Startup Academy. The event is meant to merge musicians, labels, lawyers, publishers and entrepreneurs working on startups that are touching the music business.

In my startup experience I’ve get to talk to a lot of startups. I’ve also sat on a few committees that have vetted startups for accelerator programs. So often I’ve met music based startups who have no idea how big the can of worms is when they want to do something with commercial music.

Ho, has been with Warner Music Group over the last 8 years, and always with the digital department. She’s been through just about the entire boom of the digital music age.

We’re going to continue to dive more into music focused startups in the future here at nibletz.com but in the mean time, at the event today Ho gave some very good advice to music startups.

First things first, in my experience, I’ve met quite a few founders who want to offer some kind of “radio” or “streaming” service and are adamant about doing their own thing and not using an API from someone like Spotify or Rdio. That may be the biggest mistake you’ll ever make.

Licensing music directly from a major label and can be very costly. Legitimizing your startup among independent artists can be a very long tail process. If you don’t have millions (and I’m not exaggerating) you may want to reconsider those Spotify API’s until you can build up traction.

Stubborn? Headstrong, oh ok you have the greatest idea in the world and want to go directly to the label then read on…

For starters Ho did say that it’s a lot easier to score a meeting or at least a chance to get your startup in front of her team than it would be for an artist to get in front of a traditional A&R. But pay attention here or you’ll blow it.

The Boy Scout Rule: Be Prepared.

Sure this is common knowledge but for Ho, and her counterparts at other labels this means.

– knowing your pitch
– knowing your market
– knowing your competition
– knowing what you need from the label
– having a white paper or deck, but they want to see both business plan and product, and in depth.

On this, here is the absolute biggest thing Ho said that will get your meeting shut down…

Have a ProtoType, DO NOT BE IN A CLOSED WORKING BETA.

Ho said that many times startups have pitched her. They get to a meeting and have set up a wonderful login for her to use to access their startup. They are happy, headstrong and proudly say, “We’re in a closed beta with 5000 users, and they love it”, “They’re using our service four hours a day each”. Then she, or an executive in her position, goes to the actual product and they’re using Warner’s music in the “beta”. Well guess what, your great idea and great startup are now stealing WMG’s product, and with 5,000 users using the service four hours a day, you’re stealing a lot of that.

The music business is going through it’s biggest fundamental change ever. An executive with Sony earlier in the program said “The album is dead, we need to find more high margin product businesses”, digital licensing is now the catalog vault.

“I’m going to rely on the artist to help build my customer base” makes Ho cringe the way that “we’re going to grow socially and organically over the first two years” makes me cringe.

Artists aren’t going to get involved until they see how your startup is impacting their bottom line. This can be a double edged sword as well because remember, the death of the album is affecting artists just as much as it is labels. They’re getting into more and more businesses, and a lot of them are digital.

So now that you’ve got all that, check out digitalmusic.org they’ll help you get to that next step.

Here are more great startup stories from Nashville.

 

11 Founders Offer Advice On Getting A Job With A Startup

Startup Jobs,Startup TipsStartups are what are fueling the new economy. The bulk of job creation is coming from companies that are less than five years old, and startups are becoming more and more attractive. A lot of college students are finding the startup culture more attractive than traditional corporate America. These 11 founders offer tips to getting that post college job with a tech startup.

Become a Regular at Tech Meetups

“As with any industry, networking like hell is the name of the game. If you become a regular at tech meetups in your area, you’ll make the types of friends who can get you through the door at those startups you’ve had your eye on.”

Steph Auteri | career coach, writer, and editor, Word Nerd Pro
Don’t Ask for Permission

“If you want to land an internship or a full-time job with a startup in your area, pick out the top ones that interest you and give yourself permission to start adding value for them. Literally. Don’t ask for their permission to start, just begin by creating something (e.g. a competitive research report, a SWOT analysis, or by finding bugs on their website). Showing initiative gets results.”

Be Incredibly Persistent

“The unfortunate truth is that most startups have an unorganized hiring process. Resumes and emails often get lost in the shuffle, and may not resurface when it’s time to make a hiring decision. Be persistent and keep emailing and applying until you get a response, one way or the other. Startups will appreciate your hustle.”

Crawl, Walk, Run

“The best way to work your way into a tech startup is to chose a few companies you’re super passionate about, and try to work your way into a job. You can do this by making contact with people at the company and trying to get a part-time job or internship to prove yourself. If they like you, they’re likely to then hire you full-time when they have an opening. It also lets you “try before you buy.””

Score Informational Interviews

“Informational interviews are a great way for students and new grads in any field to get to know professionals who can help point them in the right direction. Find a few people who have already gotten “in” and invite them to coffee to ask them about their experiences. They’ve been there too, so chances are they’ll love to help.”

Allie Siarto | Partner, Director of Analytics, Loudpixel
Work on an Awesome Project

“Want a startup to sit up an notice you? Prove that you can do great things without needing someone to poke and prod you. Build something cool of your own: a small event, app or some other creative project proves your worth before they even consider hiring you. As an added bonus, you can prove that you have skills that don’t show up anywhere else on your resume.”

Be Willing to Start at the Bottom

“Even if you have 20,000 Twitter followers and graduated at the top of your class, be willing to do what it takes. You’ll get more responsibility if you’re willing to learn — it sounds counterintuitive, but it’s true. Be open to learning from people who are outside of your area of focus and interest. Ask to help with projects outside of the scope of responsibility. Show you care!”

Spoons and Windows?

“Startup founders get hundreds of emails per day, so yours will definitely get deleted before they even get to your sentence about you ‘being a hard worker who can add a lot of value’. To get noticed, send them something absolutely ridiculous. In the last year, I’ve done two big deals because I sent CEOs a 4-foot wooden spoon and a real window, based on conversations we’d had in the past.”

Joe Cassara | Founder / CEO, You Need My Guy
Research and Development

“The easiest way to get a startups attention is to build something amazing. Pick out a tech startup of your choice, find their API docs, and build an awesome product on top of their service. As you’re working on the project, you’ll network with the startups developers — the next time they are looking for a hire, you’ll know their system better than most.”

Wade Foster | Co-founder, Zapier
Be Open-Minded to the Startup Scene

“Keep an open mind for all different types of startups. You might have your heart set on a startup that focuses on sports, but could find a great job working for a startup involved with medicine.”

Josh Weiss | Founder and President, Bluegala
Just Start Writing

“If you’re looking to get into the startup world, get yourself noticed by blogging. If you have certain marketable talents and passions, write about them. Then, share the content with as many people as you can. If you’re transparent in your writing by saying you’re hoping to be hired, your words just might land on the desk of an ideal decision-maker.”

Logan Lenz | Founder / President, Endagon

The Young Entrepreneur Council (YEC) is an invite-only organization comprised of the world’s most promising young entrepreneurs. In partnership with Citi, the YEC recently launched #StartupLab, a free virtual mentorship program that helps millions of entrepreneurs start and grow businesses via live video chats, an expert content library and email lessons.

We’ve got more startup tips for you, here.

Richard Branson: Four Tips For Avoiding Startup Mistakes

Richard Branson,entrepreneur advice,startup,startups,startup tips

photo: fashionindie.com

Sir Richard Branson, the founder of Virgin Atlantic among 100 other companies (mostly successful) has been doling out great entrepreneurial advice over the last 30+ years.

The great staff at KissMetrics have compiled a plethora of great Branson advice. If you’re an entrepreneur chances are you’ve either heard some of Branson’s advice first hand, or second hand from a friend or colleague. Chances are you are already acting on something that’s come from his infinite wisdom and you don’t even realize it.

Below we’ve got four tips for avoiding startup mistakes that everyone could learn from. Before we dive into that though there are a couple other really important lessons you could learn from Sir Richard Branson.

Your First Year is all about surviving.

Although I’m a serial entrepreneur and have had two successful exits neither was easy in the beginning, and nibletz has been even harder. Branson says:

“In a company’s first year, your goal should be simply to survive, and this will likely take everything you’ve got. No matter how tired or afraid you are, you have to figure out how to keep going.”

Always take notes.

We know always be closing and all those other ABC’s but Branson is a die hard when it comes to taking notes. Whenever he is meeting with anyone he is always taking notes. I personally just started taking notes with paper and pen rather than on my iPad. It makes whoever I’m talking with more comfortable and writing things down with a pen actually helps you remember them.

Branson says:

“Anyone who aspires to lead a company must develop a habit of taking notes. I carry a notebook everywhere I go.”

In this article from entrepreneur magazine, Branson shares Four Tips For Avoiding Statup MistakeStay on target – You need to be clear and concise in explaining your idea. Branson says that the shorter the pitch is, the clearer it will be. Don’t plan too many years in advance, and stay on target.

  1. Be realistic about costs – Don’t underestimate the cost that it will take to launch your company. Branson says that JetBlue needed $160 million to launch. Conventional wisdom said that cost was too high and they wouldn’t be able to raise that much capital. But they did and had one of the most successful launches in airline history and turned a profit after only six months.
  2. Hire people you need, not people you like – It’s been said that people would rather work with people they like than people who are competent. Branson says entrepreneurs may want to stay away from working with friends because, if they don’t work out, it will be difficult letting them go.
  3. Know when to say goodbye – Entrepreneurs need to know when to step away from the CEO role. This doesn’t mean turning your back on the business, but realizing you’ll have a new role in the company which will allow you to focus more. It also doesn’t mean that you cannot return to running the company, as Larry Page did at Google.

We highly suggest you check out this Kissmetrics piece on Richard Branson, don’t forget a note pad.

Great startups will learn a lot here. Check it out.

Non Tech Co-Founders Check Out TechSpeak For Entrepreneurs

TechSpeak For Entrepreneurs,Nelly Yusupova, Fred Wilson, startup tips,startup news

Nelly Yusupova founder of TechSpeak For Entrepreneurs (photo: tech.co)

Although he hasn’t led a deal this year, the venture capitalist of all New York venture capitalists, Fred Wilson, is still sharing great advice on his “avc” blog. If you’re not a regular reader of avc.com you need to be.

Last week he wrote about his friend Nelly Yusupova, the CTO at Webgrrls International and the founder and creator of TechSpeak For Entrepreneurs.

As you might imagine, TechSpeak For Entrepreneurs, is a two day bootcamp that teaches us non-technical founders the ins and outs of the software design and build process, and how it works.

Wilson says “…that entrepreneurs who are not deeply technical spend too much money, time, and effort trying to get their ideas turned into software products. Many hire the wrong people, get a product that doesn’t meet what they wanted, and worse of all, many get ripped off in the process. ” Wilson is not a “design” or “developer” snob and realizes that all great startups don’t need a technical founder, but they need to be technically savvy.

TechSpeak for Entrepreneurs also helps non-technical founders learn the lingo and the language on the design and development side. To some, speaking tech is like a foreign language, taking the time out of  your busy schedule to attend a TechSpeak for Entrepreneurs could give you the leg up.

There are three TechSpeak For Entrepreneurs’ bootcamps coming up in Phoenix, Silicon Valley and New York.

Phoenix, AZ   Apr 05-06

Silicon Valley, CA   Apr 13-14

New York City, NY   May 04-05

“If you are a non technical entrepreneur, I strongly advise you to get technical. And TechSpeak for Entrepreneurs is a good way to start on that journey.” Wilson suggests.

Wilson is a VC and Principal at Union Square Ventures in New York. Click here to check out avc.com his personal blog. 

Learn more, check out these Startup Tips at nibletz.com

Startup Lessons From The Formspring Shut Down, Or Not!

Formspring,Startup Tips, startups,startup news, Silicon Valley startupFormspring, the very popular, anonymous, question and answer site, was supposed to shut down on Sunday March 31st. We went to see where they were in the shut down process and saw the note above. So it looks like it’s possible Formspring could have one last reprieve.

The service has millions of users and billions of questions, asked and answered. It was a great tool to ask anonymous serious questions too, and also became a very abusive tool among younger sets. A  young, openly gay, actor in Atlanta said he used to love getting critiques and questions about his local theater performances and some of his tv appearances, but at some point he became inundated with requests for naked pictures, before turning 18.

It was things like that, that made Formspring flirt with safety to the point where some of their staffers stomachs turned.

Anonymity is one of the things that Cap Watkins, a former lead designer for Formspring highlights in this personal blog post.

He recaps his time at Formspring and the wild ride of one of the quickest rising startups in the country. Now sites like Quora, and to a point Cha-Cha (which is rumored to be running out of money), carry the bulk of the question and answer flow.

Watkins shares three things that could have “steered the product to a more successful outcome”.

Watkins shares:

We protected anonymous content to a fault

Formspring’s initial success was, in large part, due to giving our users the ability to ask each other questions anonymously (even without a Formspring account). In under a year, we skyrocketed to our first billion questions answered and showed few signs of slowing down. Yet even as we celebrated these milestones, we were all discussing how anonymity would or wouldn’t play a part in the future of our product. On the one hand, anonymity was a really popular feature (duh). On the other hand, we saw a lot of bad and abusive content come through that channel (double duh). A fact that we wound up being pretty infamous for.

But man was it hard to let go of anonymity as a core feature. We tried workaround after workaround. We prompted for sign-up after asking an anonymous question. We started pushing privacy settings for users into our on-boarding (which they never changed, of course). We started setting up elaborate filters to catch bad or abusive questions and put them behind a “Flagged Questions” link in users’ inboxes.

We spent a lot of time on anonymity. It was our sacred cow. Looking back, we should have spent that time finding ways to gracefully degrade that feature instead of finding ways to keep it alive. When you find yourself constantly giving a feature CPR, you should stop and consider whether or not it’s worth saving (or even possible to save).

Our opaque follow-model shot us in the foot

In a way, this lines up with our stance on anonymity. Following on Formspring was, for years completely anonymous. You couldn’t see who followed you and others couldn’t see that you were following them. This meant that we gave people a microphone and they kind of had to hope people heard what they were saying. And until we eventually launched our Smiles feature (akin to Facebook Likes), there was no way to know that your content was being consumed. We debated this a lot internally and came to the conclusion that the Twitter public-follow model was broken in that it put unnecessary social pressure on users to follow back. We felt we could build social features on top of the content (like Smiles) that let our users receive feedback and let their followers out themselves purposefully.

Formspring eventually allowed public following (not as a default, and after I left), but it was too little too late. My takeaway from this has been to always double check to make sure you’re not designing toward your own biases instead of what’s best for your product and users. Formspring had clearly struck a chord with people aching to share more about themselves with their friends. And instead of making it apparent that they were achieving their goal, we put an artificial barrier in place and prevented them from knowing if Formspring was working for them or not.

We skated toward the hockeystick

The biggest sin of them all from a product perspective, but also the hardest to avoid (and one that I see companies make over and over again).

Our initial graphs at Formspring, as you probably know, all hockeysticked up and to the right. Nearly straight up. That part was totally awesome! We were super popular! We could be the next [insert gigantic company name here]!

Oh wait, the graph has peaked and is starting to slowly (very slowly) trend downward. What do we do? Make big bets, right? Try to recapture that crazy growth!

And so we tried. The first big project we worked on was a Formspring button that sites could embed at the end of blog posts or other content. We had millions of users, so we figured it wasn’t a stretch to imagine they browsed other web sites and would gladly click a Formspring button at the end of a post (which asked “What did you think?” and allowed them to post a response to their Formspring page). This was just as the Facebook Share and Twitter “Tweet This” buttons were appearing, so we figured it made perfect sense to follow who we viewed as our closest competitors at the time.

We literally spent months on that system. We had to make sure our servers could handle a potentially huge influx of traffic (we based our estimations on our main site’s traffic, which was honestly insane), had to design and implement the feature, make sure the implementation was easy for publishers, make deals with publishers, etc. We bet huge. On someone else’s (Facebook and Twitter’s) plan.

 

 Continue reading at Cap Watkins blog

A note form Formspring founder Ade Olonoh on the Formspring web page on Sunday March 31, 2013 indicates that they may have a hail mary deal in the works. Stay tuned for more.

Lucas Rayala, founder of Altsie, shared this when his startup failed gracefully

 

4 Startup CoFounders You Don’t Want

Co-founder, co-founder issues,startups,startup tipsBack in October we had a great guest post from Mike Moyer the author of “Slicing Pie: Funding Your Company Without Funds”. In that guest post Moyer talks about how to divide equity in a startup, fair and square. If you haven’t read it, it’s definitely worth the read.

Co-founder contribution is one of the biggest things that co-founders argue about when they are distributing equity. I’ve been down this road three different times and have learned some pretty important lessons along the way. My co-founder at nibletz.com, Nick Tippmann, compliments me and the business in ways that will hopefully make nibeltz succeed far beyond our wildest dreams.

Every startup isn’t so fortunate. Many startups and cofounders find that other people on their team fit into one of these four categories, at least in their first time around.  Scott Annan at startupplays.com did a great job of summarizing them:

The Disappearing Cheerleader
Initially excited and enthusiastic about how your solution will change the world, they start missing meetings, not following up on things they said they’d do, are slower responding to emails.  They’re on the to the next shiny object, and things get awkward.

The “All In If It Works Out” 
Cautious from the beginning, you get the impression that this character is hedging her bets… Putting in enough time to be part of the team if it takes off, but keeping that day job, not changing their Linkedin Profile, or forgetting to mention your new super-awesome project at the latest meetup.

The Big Talker
This is the uber-connected person who can open any door with their massive contact list.  But once you need their help, the contacts aren’t so quick to help, or aren’t as strong as you were led to believe.  Or, worse, excuses are made why you’re not really “ready” for intros yet – and you get the feeling you’ll never be “ready” enough.

Allergic to Work
Despite an epic startup weekend, life gets in the way of getting stuff done.

It happens.  And if you’ve ever started a company, it’s probably happened to you.  Next is the awkward conversation “that-should-have-happened-a-long-time-ago” and ensuing equity renegotiation that at worst can kill your startup – and at best dilute your company unnecessarily.

 Check out the rest of Annan’s post here, as well as Mike Moyer’s video on the “Dynamic Equity Split”

Fair and Square how to divide equity in a startup.

The Pilot In Command: Facing Unexpected Obstacles Head On

Moe Glenner, Guest Post, startup tips

Moe Glenner (photo: Huffington Post)

By Moe Glenner

As a professional pilot, I meticulously pre-plan my flight including strong and continuous consideration and planning for the weather. I can’t control the weather, but I can control how I react to it, including choosing to divert or not fly in it at all. However, there are times that, despite the planning, Mother Nature has her own little surprises. Regardless, as Pilot in Command (PIC), I must continue to safely fly the plane.

It is no different with life’s surprises for any of us. Sometimes, we can anticipate them and pre-empt either the change itself or its impacts. Other times, we may not be able to control the events themselves, but we can certainly control how we react to them and our consequential actions afterwards.

Ask yourself this question: Do events control you or do you control events? Or better yet, are you influenced by life events or do you influence life events? How many times are we faced with a situation that seems hopeless and resign ourselves to whatever fate presents?

Resignation is insidious. Sometimes when “the chips are down,” we will defer our own free will and ability to take charge of the situation and instead wallow in whatever was presented. Typically, this will happen at what I call a “failure moment.” For many of us, the failure is a fait accompli. It is time to accept the reality and finality and move on.

But if we look at the failure as not the end itself rather a means to an end, then the failure is just a speed bump to be traversed and not finality. In fact, failure might not be a bad thing in itself. Failure can spur as to be more innovative, better at what we do and possibly reach an even better solution than originally intended. The key is not to resign and/or give up when confronted with failure. After all, failure is an opportunity to be even better if we alter our mindset to accept it as an impetus for being better.

Once, an early morning airline flight was cancelled before I even left for the airport and then mysteriously reinstated with a long delay. Despite written notice of the cancellation, the airline refused to reschedule me without their requisite $250 rescheduling fee. Escalating the situation to senior management did not satisfactorily resolve the issue. In essence, I was out of luck and money.

At first, I was quite angry. How could the airline not take responsibility for its own screw-up? Why do I have to pay extra just to get them to rectify their own error? Why do I now have to placate my client about my non-arrival, even though it wasn’t my fault? What am I going to do about this in the future?

After the initial anger subsided and a calmer head prevailed, I decided to do something about it. I always wanted to be a pilot and fly to different places. Twenty years ago, I intended on taking flight lessons but somehow “life got in the way” (or rather, I allowed it to detract from my goal). Ten years ago, I intended to take flight lessons, but again “life got in the way.” Now, I was ready to do it and not have to rely on the airlines and their arbitrariness. With careful planning, I was ready to go.

Through considerable effort and dedication to learning, practicing and flying nearly every day, I was able to gain the various certifications necessary to not only fly myself in good weather, but even in poor visibility weather and to fly others around as well. As a professional pilot, I even have additional income opportunities available by being a corporate pilot for local companies. I was able to take an adverse experience, that for some is routine, and channel that into positive action. I was not and am not willing to concede to a culture of victimhood. I refuse to believe in “it is what it is.” I will only believe that “it is what you make it to be.”  Of course, it helped that I was motivated to make the change and that I remained motivated throughout.

We are constantly faced with changes in our everyday lives. Some of them are (or can be) reasonably anticipated and perhaps even planned for. Others are sudden and/or involuntary. Either way, the only thing constant in life, is change. How we plan and react to these changes is critical to personal success and realization of our goals.

It is too easy and convenient to simply blame others for our own lack of success. We blame our society for all of its ills. We blame our government for their ineptness (even though it was us that elected them). We blame and blame and blame some more but with all of the blaming and pointing fingers, we ultimately concede control of our own destiny. As such, we have taken ourselves out of our optimal state and instead moved to the United States of Denial.

Denial is a powerful psychological weapon that we self-employ to keep away the truth. With apologies to Jack Nicholson (A Few Good Men), we can’t (and don’t want to) handle the truth. It is easier to close our eyes, ears, and brains and pretend that whatever ails us is not our fault. And it is therefore acceptable to blame whatever culprit happens to be convenient. We see what we want to see and believe what we want to believe, regardless of the actual reality or the truth. Except that we can and should handle the truth. How else will we improve? How else will we make ourselves and the world around us better if we won’t even concede that it is our problem to solve?

It would have been too easy for me to simply blame the airline and leave it at that. What guarantee would I have had that it wouldn’t happen again? I refused to be a victim and took concrete action that would reduce the likelihood of a repeat occurrence. This action required an investment of time, effort and money, but it would be difficult to argue that a solid return wasn’t achieved for that investment.

What happens when we inevitably hit that “bump in the road?” We must continue to fly our airplanes. When a pilot is on final approach for landing, he lines the plane up to land on the centerline of the runway with no drift and pointed down the runway. If he encounters a strong crosswind and doesn’t take positive corrective action, the plane will drift in the direction the wind is blowing. The plane might not be pointing straight and on landing might actually go off the side of the runway, damaging the airplane and possibly resulting in injuries (or worse). By taking immediate corrective actions, such as slipping or even a go-around to land on a different runway or different airport, the pilot affirms his control of the situation and allows for a positive and safe outcome.

Our intended goals should not be setback by a strong crosswind, a bump in the road, or even severe turbulence. We need to immediately recognize the situation and then take corrective action to stay on-track and continue pointed straight down the successful goal achievement runway. We are in command and we must stay in command to achieve positive results.

ABOUT THE AUTHOR

Moe Glenner is the founder and CEO of PURELogistics, a leading consulting firm that specializes in change management, and a regular speaker at trade shows and industry events. Glenner earned his MBA at Lake Forest Graduate School of Management and a Lean Six Sigma Black Belt Certification from Villanova University. In Selfish Altruism, Glenner explores the personal motives and emotions that can impact organizational change. Selfish Altruism ($13.95) is available at www.amazon.com.

Now check out this Guest Post, Startup Marketing Lessons From Everywhere Else.

Myth Busters: Money Does Not Grow On Trees In Silicon Valley [video]

Neil Parikh,Communly,Silicon Valley,startup,startup tips,launchyourcity

Communly co-founder Neil Parikh talks with Memphis based entrepreneur Ryan Ramkhelawan at the LaunchLounge on location in Silicon Valley (photo: NMI 2013)

We just wrapped up the LaunchYourCity, nibletz.com mission to Silicon Valley. On that trip we spent lots of time connecting to investors, accelerators, incubators, entrepreneurs and startup founders from San Francisco to Mountain View and everywhere in between.

As the voice of startups everywhere else, we kept our minds open throughout the trip and soaked up every nook and cranny of information that we could.

In working with hundreds of startups across the country, and around the world (everywhere else), we have found that a lot of people think money grows on trees in the valley.

In talking with a variety of Silicon Valley based startups in various stages we found that, that’s not the case. In some cases it’s actually harder to raise money in the valley because there’s much more competition.

Silicon Valley is like the Hollywood of statups. Founders move to Silicon Valley in droves in hopes of getting their big idea discovered.  It certainly isn’t that easy.

You have to figure for every idea out there, there are three more people working on that same thing. Sure the biggest VC’s are based in Silicon Valley but they’re getting pitched every minute of everyday. One VC we spoke with said he, like Mark Cuban, routinely gets pitched in the bathroom.

Sure all startups are looking for their big funding break and all VC’s are looking for the next Facebook or Instagram, but the chances that the two will connect are very difficult.

More than one startup founder told us that they had raised money at home, and thought that was the signal that they were ready to raise in Silicon Valley and now they’ve moved onto another startup.

There are several factors that could account for this happening. One is that when you grow your startup in your hometown and can pick up any bit of local traction, your local investors know you. They’ve seen you grow and seen your failures and victories. When you venture out to Silicon Valley you quickly become just another startup.

There’s also a much better chance that an angel or VC in Silicon Valley has heard your particular idea hundreds of times, where your local investors have only heard it once, from you.

Does this mean that you shouldn’t move to Silicon Valley? Not necessarily there are advantages too that we’ll be posting about later. This is definitely some nourishing food for thought though.

We got a chance to talk to 21 year old serial entrepreneur Neil Parikh of Communly about the myth that money grows on trees in Silicon Valley. Check out the video below and check out communly here.

 Find a lot more great startup tips here at nibletz.com

5 Rules For Naming Your Startup: Memphis Firm Offers Advice In SXSW Panel [sxsw]

archer malmo,memphis,startup,naming startups,startup tips,sxsw,sxswi60 year old Memphis advertising and PR firm archer>malmo presented their panel “When Bad Names Happen To Good Startups” last Monday at SXSW Interactive. Over 100 people attended the panel discussion and stayed throughout the entire hour long session.

archer>malmo Chief Creative Officer Gary Backaus and Senior Copy Writer Justin Dobbs presented the entertaining hour long session for startups curious about naming. The duo of advertising executives mixed humor with the session which made it quite entertaining.

Despite having a client roster that includes names like Pfizer, Verizon and RJ Reynolds, Dobbs broke the ice and established credibility by making light of the fact that the firm is located in Memphis. He showed a few slides of new technologies that archer>malmo currently employs including; email, and intranet. He also showed a slide of a rack card rack that you would find at a hotel, saying they were creating something new called the “Take One”.

When it came down to content though, Dobbs and Backaus gave out some great tips in their “5 Rules for Naming Your Startup”.

1) you’re not naming a startup you’re naming a brand.

2) Create a first impression that’s positive, intriguing and clear

3)  Don’t create conceptual or technical hurdles

4) When necessary be descriptive, whoa whoa not that descriptive

5) If it ain’t broke.

It was during the fifth rule where Backaus discussed the work that the firm is doing with nibletz.com The Voice Of Startups Everywhere Else. (disclaimer: nibletz is a portfolio company for archer>malmo a>m ventures arm).

One of the biggest takeaways we got from the panel wasn’t an actual rule “You don’t need a big idea for your name you just need a name for your big idea” Backaus told the audience.

Find out more about archer>malmo here and a>m ventures here.

Here’s more of our great startup coverage from SXSW 2013

10 Tax Tips For 1099 Startup Employees

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By Kevin Sandlin, Founder at @deductmor

Guestpost,1099, contract employee,startup tips

It’s tax time. For tax accountants, it means filing extensions and sifting through piles of papers for clients. For W-2 employees, it means getting your stuff together to give to your tax guy. But for 1099ers, it means paying your taxes.

Didn’t use to be that way.  Before 1943, everyone got all their pay in their paycheck, and everyone had to file and pay their federal taxes on or before April 15.  During WWII, Congress introduced payroll withholding and quarterly tax payments with the vote of the Current Tax Payment Act of 1943. The U.S. Department of Treasury describes tax withholding as follows:

“It also greatly red

uced the taxpayer’s awareness of the amount of tax being collected, i.e. it reduced the transparency of the tax, which made it easier to raise taxes in the future.”

You gotta love Congress, don’t you?  There’s your history lesson for the day.

It’s 100% your responsibility to pay Uncle Sam just because you got a 1099.  YOU and you alone are responsible for paying the full amount of payroll taxes on the amount listed on the Form 1099.

“The 1099 form by itself is nothing. A 1099 means you’re liable for self-employment tax.”   – Thomas Jensen, managing partner of Portland, Oregon-based Vaerdi Financial

Here are ten 1099 tax tips that should help you get through April 15 a little easier.

  1. Health insurance premiums are tax deductible for the self employed. If you are self-employed, you may be eligible to deduct premiums that you pay for medical, dental and qualifying long-term care insurance coverage for yourself, your spouse and your dependents. Read the rules here.

 

  1. Do your 1099 taxes quarterly.  Doing something painful a little at a time makes it less painful.  Keep that in mind for # 4 as well.  You generally have to make estimated quarterly tax payments if you expect to owe tax of $1,000 or more when you file your return.  Do the math: if you make ~$5k/quarter, pay estimated quarterly taxes.

 

  1. Mileage: it’s your BIGGEST deduction.  To get the maximum deductions for your business vehicle, you must maintain a written log of business miles.  I don’t know anyone who does this. Instead, take a picture of the odometer every Monday. Make it a habit. Fifty-tive cents per mile adds up quick and big.

 

  1. Set 25% aside from every single payment you receive.  If you were a W-2 employee, you would pay (ok, the government would withhold) half of your Social Security (FICA) and Medicare tax. Your employer pays the other half. But you’re not W-2, are you? So guess who your employer is? YOU! You pay ALL of your FICA and Medicare tax. Put it in a savings account so you can’t touch it.

 

  1. Know what you can and cannot deduct. Your taxable 1099 income is the same thing as your “net profit”, which is your 1099 income minus your deductible (‘ordinary and necessary to operate your business’) expenses.

 

  1. The home office deduction. Do. Not. Miss. This. Deduction. Create a dedicated space to work from home. Measure it in square feet. Figure out the percentage of that space in relation to your whole house. You can deduct that percent of all your home expenses: utilities, mortgage interest, cleaning, repairs & improvements, water, etc.

 

  1. Retire! OK, don’t retire yet, but think about it and put money towards it.  The best tax write-off for the self-employed is a retirement plan. A person with no employees can set up an individual 401(k).  As of 2012, the individual can contribute $17,000 as a 401(k) deferral, plus 25 percent of net income.

 

  1. Go back to school. Any educational expense is potentially tax-deductible.

 

  1. Keep every receipt. “Every receipt” means every receipt. Create a system that fits your 1099er lifestyle and stick with it.  You want to reduce your taxable income (aka ‘net profit’) as much as possible. The IRS requires receipts for deductions.

 

  1. Go digital! And there’s an app for that (shameless plug).  Sign up for the beta at deductmor.com and you can get this service completely free forever. deductmor lets you knock out #9 and #10 simultaneously. Keep every receipt by going digital. Take a picture of every receipt. deductmor stores it (securely, forever), and organizes all your receipts every quarter (#2, check!) and every year into a report your tax accountant will swoon over.

Full disclosure: I founded deductmor. There are several other very good services for capturing receipts with your smartphone. I encourage you to check them out, and use the one that’s best for you.

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Is Your Startup Launch Ready? Add These To Your Checklist

Spencer Fry,startup,startup tips

(photo: Floridatoday.com

For some the real joy in a startup comes from actually launching. Some startups spend a few months preparing for launch while others have taken up to two years (if not more). There are hundreds of things that can go onto your launch checklist.

Spencer Fry, a 28 year old serial entrepreneur who founded TypeFrag (2003), Carbonmade (2007) and Uncover (2012) has a lot of experience launching startups. He penned “Startup Launch Checklist” on his blog at spencerfry.com. Here are some of the highlights from his checklist.

Web and Marketing tips:

Complete Homepage copy: One of the pages we left for last – and I know many new startups do – is the copy for the homepage. You need to write about whatever you’re selling in a clear, concise and engaging way. If you can’t quickly capture the interest of a visitor to your service then you’re going to immediately fail. This leads to my next point.

Contact page copy: For us it’s a matter of making sure that we list all of the different ways visitors to our service can reach us. It’s not enough to simply provide an email address nowadays. Lots of customers want to reach you on Twitter, Facebook, and other social networks.

Determine FAQ strategy and write it: One of the things I like to leave to the last minute is writing the Frequently Asked Questions. If you write it too early, then chances are your service will have changed and it’ll become outdated. Writing the FAQ will also help put you in the mind of a customer right before launch. It’s a great last-minute exercise in making sure your app is clear.

He has five more web marketing tips here.

Modeling

Model our potential revenue: You should never found a company without a good idea about how you plan on making money. Even better, you should project how your potential revenue stream will grow over time.

Set monetary/sales goals: After you’ve modeled out your potential revenue growth, setting sales goals will give you a better understanding of when you can raise money on good terms or quit your day job and bootstrap. It’s great to have numbers to work toward that aren’t arbitrary. Knowing exactly how many users you need over a projected time frame helps to determine whether you’re matching projections.

Launch Day

Add to various services around the Web: To help with SEO and to possibly get the word out, sign up your new app with Crunchbase, AngelList, StartupList, Listio and others.
Press Coverage: Every successful app has a great short term and long term press plan. However, right after launch you should ask yourself how much press you actually want. Do you want to reach out to blogs for coverage? Do you hope to get on Hacker News? Sometimes you might want to delay press coverage until you’ve had a chance to fix up the bugs.
Email friends and family: Last, but not least, you should email your friends and family about the new app you’ve built. Chances are that leading up to its release you’ve been so busy that you haven’t had time to update them. Now’s the time!

There are plenty more tips including 17 programming tips, sales tips and more here at spencerfry.com

We’re sneaker strapping again across the country and at SXSW13 Check this out

 

Startup Marketing Lessons from the Everywhere Else

Brandery,Startup Branding,Mike Bott, Startup Tips, Guest Post

Mike Bott GM of The Brandery and former P&G Brand Manager talks about Branding for startups at everywhereelse 13 (photo: Allie Fox for NMI)

By Joe Recomendes, Command Partners 

I recently had the opportunity to attend the Everywhere Else conference in Memphis, TN to meet and learn with many promising startups from across the country – Dan Rogers of Millenium Search, LLC has outlined some of the most promising companies in attendance on his blog – but I was there to focus on marketing for the startup community. The conference was founded to provide a networking opportunity for startups not based in the hubs of New York or Silicon Valley, but rather those entrepreneurs cutting their own paths “everywhere else” in the country.

I was there not as a startup, but as a marketing agency looking to see what startups are doing to market themselves and learn from other successful founders. Scott Case, the CEO of Startup America, provided a crucial wake-up call to the founders in attendance – “It’s not ‘if you build it, they will come,’ it’s ‘If you market it,  they will come.” Startups everywhere need to pay attention – you may have a great idea, but if no one knows about it, it will not work as a business.

A branding session by The Brandery outlined the following steps that every startup should consider when beginning a marketing strategy and build a brand pyramid, the foundation of all marketing messaging:

  • Brand Promise – The essence of your brand, and the highest-level benefit that your company or products contributes to the consumer.
  • Brand Positioning – The value statement of your company or product, similar to an elevator pitch. Why does anyone need the idea that you are bringing to market?
  • Brand Character – The portrayal of your idea that should convey truth and inspiration while demonstrating the need for your idea.
  • Brand Attributes – The base level of your brand, which should illustrate points of difference and points of parity between your product or idea and your competitors.

Once you have your brand defined, it’s time to consider how you will market your idea, and through which channels. Startups should consider the following strategic marketing initiatives:

  • A Website – Absolutely, a must have for traffic, leads, and information about your company. This should be the foundation of your marketing channels, and should be optimized to capture and convert leads. All other marketing efforts should drive people to the site. While I won’t go into detail here, it is also important to support your website through SEO, PPC, email marketing, and other website marketing efforts.
  • Public Relations – Depending on the quality of your media outreach efforts and the potential importance of your idea or business, public relations can either be a huge boon or wasted time. As a technology startup, getting coverage in Mashable, Techcrunch, VentureBeat, etc. can catapult you into the public sphere, but the chances of getting this coverage without properly curating your pitch and relationships are slim.
  • Social Media – While time-consuming, a well-groomed presence on social media can give an air of credibility to your brand, while allowing for communication distribution and engagement with your key audiences. Start with a presence on Facebook, Twitter, LinkedIn, and Angel’s List. These four networks will allow you to engage existing consumers, find new leads, and show a presence to potential investors.
  • A Pitch Deck – For getting new investors, a pitch deck will be a crucial piece of your marketing mix. Ensure that it is short but impactful by providing the information that investors need, and consider revising your deck for each pitch based on the conversations that you have had with the investor prior to your meeting.

Marketing a new startup can be time-consuming, but is of paramount importance to achieve awareness, recognition, and success. If you’re unsure where to start, hire a startup marketing agency to help define your brand and business goals, and execute your marketing strategy for you.

What have you found to be the most valuable channel for marketing your startup, or what other advice would you give? Let us know in the comments.

Command Partners is a Charlotte based internet marketing company with a passion and love for startups. Find out more at commandpartners.com

Don’t miss everywhereelse.co 2014 more information can be found here

Learn From Everyone You Can At SXSW, Advice From Joseph Kosper CEO Of RideScout

Ridescout,Hatchpitch,sxsw13,startup tipsTuesday we posted the twelve finalists of the HatchPitch competition who will be pitching at SXSWi this year. Last year’s contest saw some great startups. One of those was GoingMyWay which has now changed their name to RideScout.

There’s an abundance of great transportation app startups out there. There are services like Uber and Hailo which allow you to use your phone to hail a ride via sedan or taxi. There are ride share apps out there like SideCar and there are apps out there like RideScout. RideScout aggregates ground transportation ride options which allows users to compare and then book transportation or link to it in real time.

“Our goal is to provide ground transportation information and connectivity so intuitively and efficiently that consumers experience the same on-demand flexibility and reliability that they do driving their own car.” RideScout CEO and Co-Founder Joseph Kosper said on the hatchpitch blog.

RideScout came in second place in last years HatchPitch contest. This year rather than spend time talking about how great RideScout is Kosper posted this piece, to help give some best practices to startups braving SXSW.

Through my radio career and then as a tech journalist I’ve had the privilege of attending a dozen or so SXSW events. If this is your first, or even second time attending it can be an overwhelming experience. Tuesday we posted these tips, most of which came from SXSW seasoned veteran Robert Scoble.

Kosper gives his best practice which really amounts to learning from anyone you can. See I’m not going to sugar coat it for you, SXSWi is a cess pool of ego maniac hipster founders. Everyone has the best everything out there period. In that piece on Tuesday we talked about the big reality that come next year at SXSW 14 not even a quarter of the startups we see this year will be around.

Swallow your pride and gel off everyone you can. You’ll undoubtedly have people that can learn from you, and in turn you will be able to learn from other people. If you knew everything you wouldn’t need to go to SXSW, right?

“Your startup isn’t going to “accidentally” succeed. RideScout and my other endeavors get better each day because I’ve spent time learning from those around me. Most of that learning has been experiential and in the shadow of others, so it is only natural that I try to pass it along. People will be what they can see– and I have been fortunate to learn from a lot of different people in the start-up ecosystem.” Kosper said in his piece on hatchpitch.

Get more wise words from a SXSW alum who’s a) startup is still up and running b) who finished second in last years Hatch competition, here.

SXSW is part of our Sneaker strapped nationwide startup road trip part DEUX, help us out if you can.

 

Beware the Ill-Planned Innovative Rollout

Startup Tips, Guest Post, Moe Glenner,nibletz,huffington post

Moe Glenner, Founder PURELogistics (photo: Huffington Post)

By Moe Glenner, Founder PURELogistics

It happens repeatedly. A company adopts a new technology platform that ostensibly will ease the workload, streamline operational processes and result in overall gains in efficiency and budget spending. The intention is spot-on but the execution is decidedly less so. A post-mortem will usually reveal errors in the execution but misses the real culprit: planning errors. While Garbage In – Garbage Out (GIGO) is true for any process, it is especially apparent in change initiatives. If the initiative is not planned properly, the end result will almost always reflect that lack of planning.

I frequently observe companies that attempt technology-based change initiatives with the latest and greatest new technologies. Many believe that the provider of this technology will also ensure that their technology will successfully effectuate the intended changes. They effectively defer the planning, execution and most importantly control to this third party. More times than not, this recipe fails and takes the change initiative down with it. The result; blame the technology and try to find a “better” technology. In other words, they blame the equipment and not themselves.

When my clients engage my consulting services to help effectuate change, I advise them that successful change involves a three-step process: Plan, Communicate and Execute. These are not mutually exclusive, as each step comprises elements of the other two steps.

Step 1 – Plan

Since planning is the most critical step, most of my attention will be here. Successful planning necessarily means an objective discovery of the real problem driving the change. Frequently the stated and/or obvious problem is not the real problem, rather a symptom of a bigger underlying issue. We can better discover the real issue by channeling our inner four-year old and repeatedly ask why. In Total Quality Management (TQM), the 5-Why Process is a useful tool to achieving real issue discovery.

For example, if we are having trouble staying compliant with the Unsafe Driving portion of CSA:

Q1: Why are we having this trouble?
A1:
We’re ticketed too often for speeding, illegal lane changes, etc.

Q2: Why are we getting ticketed so often?
A2:
Because our drivers are rushing to make their deliveries

Q3: Why do they need to rush to make their deliveries?
A3:
Because their schedules require them to make x number of daily deliveries

Q4: Why do we need to schedule so many deliveries per driver?
A4:
Because otherwise we can’t meet our service commitments

Q5: Why are our service commitments so tight?
A5:
Because the competitive landscape requires them.

The 5-Why Process doesn’t have to repeat 5 times and it could actually be more than 5 questions. When we hit a why, that we don’t have a clear answer for, we likely are at the real issue.

Once we have discovered the real issue, we need to properly define the scope of both the problem and its intended solution. A frequent planning occurrence is when the problem is clearly defined, but the solution slowly expands to include more than just the problem. In project management terms this is called ‘scope creep’. While it is admirable that a solution goes well beyond what it’s intended for, if the ‘well-beyond’ is not planned for, it could compromise the entire initiative. The signs of scope-creep will usually include budget and time overruns.

Once the scope has been established, proper risk management must be employed. What are the risks involved with rolling out this new technology? If it’s an EBOM rollout, will our veteran drivers have trouble with it? If they do have trouble, can we provide them the proper support? With the difficulty in finding new drivers, what is the risk with rolling out this initiative and possibly losing some veteran drivers? What is the plan if we do lose these drivers? While we cannot possibly plan for every contingency, we can plan for every category of risk. This will give us a significant head start in successfully addressing the problem and continuing on unabated.

Step 2 – Communication

There is no such thing as over-communication. The key is to provide honest, constant and relevant communication between the change team members, upwards to senior executives and outwards to those that will be affected by the change. This communication must take place in every step of the change process for the initiative to be successful. Since most of us resist change primarily due to the fear if the unknown, we must make special and concerted efforts to combat this through every form of organizational communication (i.e. face-to-face, email, video conferencing, etc.). Most importantly, if we don’t have an immediate answer, we must honestly and in a timely fashion, communicate this as well.

Step 3 – Execute

Assuming that we have planned and communicated properly, we still must execute according to plan. If we have planned properly, than the likely ‘hiccups’ inherent in any change initiative will have been planned for and can be addressed according to plan.

The end result will not be an ill-planned innovative rollout, but a rollout that encompasses the best of change management and, most importantly, accomplishes its intended goal(s).

Moe Glenner is the founder and president of PURELogistics, a leading consulting firm that specializes in organizational change. He earned his MBA at Lake Forest Graduate School of Management and a Lean Six Sigma Black Belt Certification from Villanova University. Glenner’s new book, Selfish Altruism: Managing & Executing Successful Change Initiatives ($13.95 | Amazon), explores best practices in organizational change. For more information, visit www.moeglenner.com.