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Kevin Ready - Startup: An Insiders Guide to Launching and Running a Business

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Kevin Ready Startup: An Insiders Guide to Launching and Running a Business
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If I was going to start a new business today I would be sure to study and pay close attention to Kevin Readys new book, Startup. His wisdom, experience, and his self-effacing and honest writing make this a real gem for aspiring entrepreneurs and business people of all kinds.Bob Beaudine, author of The Power of WHOStartup: An Insiders Guide to Launching and Running a Business is for people who are excellent at somethingproduct or web development, writing code, marketing or selling anythingbut who are now toiling for others. Yet they have long had a dream: to take that special skill set and use it, on their own terms, in a startup business.This pattern is romanticized by the media in the form of the tech entrepreneurthe guy brainstorming with buddies in a garage who ends up selling his startup for millions. But what is the reality behind stories like that one? For that matter, what mental processes, frames of reference, hard knocks, and lessons learned make up the back story behind any startup success? This book not only reveals the actual experience of entrepreneurship, but it provides readers with a set of universal entrepreneurial skills and tools they can use to build a business.Author Kevin Ready has made this journey, and more than once. He earned his MBAMaster of Bruise Acquisitionthrough numerous encounters with situations, problems, black holes, bad employees, sea monsters, not enough money, and other karate chops to the organizational body. Startup illustrates in detail the lessons he learned the hard wayso you dont have to.Backed up by stories of both his successes and failures, Ready helps readers learn shortcuts to help them do what eight out of 10 entrepreneurs cant: Build and sustain a successful start-up.Illustrates the entrepreneurial journey from start to finish Helps readers decideor notto start a business Provides dozens of lessons learned and other takeaways budding entrepreneurs can put to use today What youll learn What entrepreneurship is, and what it is not. How to get into the skin of an entrepreneur and see the world from that perspectivebefore you quit your job and put everything on the line. Key lessons that have left burn marks and abrasions on the (now very thick) skins of successful entrepreneurs. Why building your product is only half the battle. What the most important goals and imperatives are for any business, ensuring that you can start working on them from day one instead of stumbling into them years later and losing time, money, and opportunity in the process. What you must know about finding, recruiting, and growing a team of dedicated employees that will share your vision and eventually take ownership of your ideas and carry them forward for you. The advanced mind-over-business strategies for staying on top of (and inside of) the complex currents that make up your business and the market it flows within. These tools are a prime distinguishing factor for superstar entrepreneurs. Who this book is for This book is for anyone wishing to start a business, but especially IT workers toiling in the trenches who have dreamed of a starting a business. Whats involved? What challenges can I expect? How do I survive common entrepreneurial mishaps? Once I get the business up and running, how do I keep the wheels turning profitably? How do I attract customers? How do I manage people? This book answers those questions and many more. Table of ContentsChapter 1: Setting the Stage for Starting a Business Chapter 2: Operations and Decisions: Core Lessons in Execution Chapter 3: Marketing Your Products and Services Chapter 4: Building a Team: You Cant Do It Alone Chapter 5: Strategic Thinking: Advanced Lessons for Founders Chapter 6: The Exit: Letting the Business Go

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Startup An Insiders Guide to Launching and Running a Business Copyright 2011 - photo 1

Startup: An Insiders Guide to Launching and Running a Business

Copyright 2011 by Kevin Ready

This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. Exempted from this legal reservation are brief excerpts in connection with reviews or scholarly analysis or material supplied specifically for the purpose of being entered and executed on a computer system, for exclusive use by the purchaser of the work. Duplication of this publication or parts thereof is permitted only under the provisions of the Copyright Law of the Publishers location, in its current version, and permission for use must always be obtained from Springer. Permissions for use may be obtained through RightsLink at the Copyright Clearance Center. Violations are liable to prosecution under the respective Copyright Law.

ISBN-13 (pbk): 978-1-4302-4218-5

ISBN-13 (electronic): 978-1-4302-4220-8

Trademarked names, logos, and images may appear in this book. Rather than use a trademark symbol with every occurrence of a trademarked name, logo, or image we use the names, logos, and images only in an editorial fashion and to the benefit of the trademark owner, with no intention of infringement of the trademark.

The use in this publication of trade names, trademarks, service marks, and similar terms, even if they are not identified as such, is not to be taken as an expression of opinion as to whether or not they are subject to proprietary rights.
While the advice and information in this book are believed to be true and accurate at the date of publication, neither the authors nor the editors nor the publisher can accept any legal responsibility for any errors or omissions that may be made. The publisher makes no warranty, express or implied, with respect to the material contained herein.

President and Publisher: Paul Manning
Lead Editor: Jeff Olson
Editorial Board: Steve Anglin, Mark Beckner, Ewan Buckingham, Gary Cornell,
Morgan Ertel, Jonathan Gennick, Jonathan Hassell, Robert Hutchinson,
Michelle Lowman, James Markham, Matthew Moodie, Jeff Olson, Jeffrey
Pepper, Douglas Pundick, Ben Renow-Clarke, Dominic Shakeshaft, Gwenan
Spearing, Matt Wade, Tom Welsh
Editorial Assistant: Rita Fernando
Copy Editor: Damon Larson
Compositor: Apress Production
Indexer: BIM Indexing & Proofreading Services
Cover Designer: Anna Ishchenko

Distributed to the book trade worldwide by Springer Science+Business Media New York, 233 Spring Street, 6th Floor, New York, NY 10013. Phone 1-800-SPRINGER, fax (201) 348-4505, e-mail .

For information on translations, please e-mail .

Apress and friends of ED books may be purchased in bulk for academic, corporate, or promotional use. eBook versions and licenses are also available for most titles. For more information, reference our Special Bulk SaleseBook Licensing web page at www.apress.com/bulk-sales.

TO KAZUKO, CONNOR, MITCHEL, MAE, AND
RAYMOND

Contents
About the Author

Kevin Ready loves building things and helping people to build things. Over the last 20 years, he has built, run, consulted for, and advised numerous startups and businesses. For him, there is nothing more interesting than understanding business models and the problems that entrepreneurs come up against in their markets. As he says often, It is my work and my play. I never get tired of it.

Born into a engineering family, Ready started his first company right out of college. While the venture was a success, he saw the limitations to scaling the business. As the Internet era took shape, he joined the tech wave through the late 1990s, starting several online businesses. Years before Facebook, he was a founder of a social networking site with nearly one million users. Later, he and a partner spun off and sold a digital mapping business, then moved on to become an online software and media retail business that merged with a larger rival in 2008. That same year, he became a partner at an online real estate business that was in crisis mode. By applying the lessons presented in this book, he helped turn the business around. Just 13 months later, it was acquired by a company in the newspaper industry. That businesswhere he still works as technical director and strategistnow brings in millions of dollars of profit per year and touches over 4 million consumers monthly.

In addition to his entrepreneurial ventures, he has worked in engineering positions at Dell Computer and Toshiba, and as an executive at Classified Ventures, LLC.

Acknowledgments

Many thanks to those people that have inspired my work as an entrepreneur, and to those who freely gave of their time and knowledge to assist me in putting this book together.

I especially appreciate the time I spent with my friend Joseph Wright, his father Wayne Wright, Sr., and their family during my teenage years. Observing this wonderfully entrepreneurial family, I decided that business building was a lifestyle choice worth emulating.

Special thanks to Dr. Fernando Macias, Dr. Ken Price, George Mora, and Daniel Castro, for their substantial investments of time to assist me with this manuscript

Also great thanks to Jeff Olson, my editor from Apress. Your persistence and patience are the difference that made the difference.

Preface

What we do is a function of what we know, and what we have experienced and come to understand. As entrepreneurs, we encounter myriad difficult, novel, and challenging situations that normal people will never be faced with, and we build up a library of such experiences over time. In the entrepreneurial world, this is sometimes aptly described as scar tissue, and it is with some level of respect and admiration that we say that somebody has a lot of it. Some of these experiences and lessons stand out above the others and grow to serve as a basis for the entrepreneurs decision-making ever after. This book is about scar tissue, about lessons learned, and about how we can use those lessons to make business less painful, less difficult, and more profitable.

A great interest of mine is helping motivated people to start their own businesses. I especially enjoy working with people who are absolutely excellent at something. These are folks that have an area of excellence that they have developed over many years. They have realized that they could provide greater value for themselves and their families if they focus all of their time and energy on exercising that area of excellence as a business, in the form of a startup. This is a great leap, and it is one of the most exciting moves you can make. What most people find, however, is that their area of excellence alone is not enough to carry them through the challenge of wrapping a business around it. Their core skill set (programming, DNA analysis, etc.) needs to be mated with new business skills to make it all work.

As an example, my friend John (who is a highly skilled PhD microbiologist) recently started his own genetics company. He knows DNA sequencing up and down; he has been doing it for years. It was easy for him to imagine leaving the university research environment and applying his skills for his own customers. It was so easy to imagine, in fact, that John actually quit his university research job, took out a business loan, bought a lab full of equipment, and is now on his ownand is realizing at a visceral level that he

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