Tips for Launching a Startup

By Cynthia Kocialski

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I love startups and all the wonderful gadgets they make. The problem is, most of these wonderful things never make it because the entrepreneur is in love with the technology and lacks an understanding of the business. It’s one thing to develop a product that does something cool, but entrepreneurs need to ask whether it actually solves a problem. Ultimately, the business determines the ultimate success or failure of the product.

Here are some tips for anyone considering launching or financing a startup:

It’s Not About the Product

The product may be the heart of the company, but the product no more makes a company than a heart makes a human being. There are many components to a company that all have to work together harmoniously to succeed.

Have the Courage to Discover

The early-stage startup process is one of discovery, not step-by-step execution. Many first-time entrepreneurs believe you come up with a great product idea, then a detailed business plan, and finally hire people to execute the plan. Discovery is the starting point from which the product and business will evolve, iterate, and be refined as the concept meets the customers, the market, and the investors.

Retool and Revise

The first idea is never the final product. The worst work you will ever do is the first work you do. Press forward past the first iteration, and make use of the lessons you learn along the way.

Build Your Team

You need a team, but not just any team. You need the right team for that stage of a company's life. You wouldn't hire a college professor to teach kindergarten. For that, you need early elementary teachers. Startups also need to find the right people for the right jobs. Those people need to have the right attitude and need to be at a stage of their careers that makes them a match for a startup.

Think Like an Investor

Investing in a startup is risky. If investors wanted a moderate return, they'd invest in public companies like IBM and Coca-Cola. What entrepreneurs don't get is that, to an investor, the company is the product. Entrepreneurs need to understand the investor's perspective. Entrepreneurs create end products, but they also need to create the company. Investors buy companies, not products. For an investor, the best-case scenario is a tested, proven business with a market poised to grow rapidly.

The spirit of American business is embodied in the startup. Innovation and guts are the foundation of the startup, and those qualities also happen to be characteristic of the most successful mega-firms. Let those qualities form the dynamic of your startup. and you’ll be off to a good start.

Cynthia Kocialski has founded three high-tech companies and now is a consultant for startups. She is the author of Startup from the Ground Up.

C12's 2011 Leaders Conference back in Central Florida

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C12 launched here in Central Florida in 1992. Now, after hosting its national conference in cities across the U.S., the 2011 Leaders Conference: Standing in the Gap will be held here, at the Gaylord Palms Resort & Convention Center in Kissimmee Oct. 27-29.

This event is a time of targeted, practical equipping for both superior business performance and workplace ministry. Attendees will also experience rich fellowship with like-minded peers from across America and from abroad.

The conference kicks off Thursday with a keynote dinner featuring Kris Den Besten, an Orlando Christian CEO and author of SHINE: Five Empowering Principles for a Rewarding Life.

Friday features a full day of conference and breakout sessions, wrapping up with a fellowship dinner.

The conference concludes Saturday morning with a plenary session, followed by the C12 Open golf scramble at Celebration Golf Club from 1-6 p.m.

Special room rates of $129 are available. Early registration discounts expire Sept 15. Details are on the C12 website.

The C12 Group of Central Florida is a personal advisory board of Christian business owners and CEOs, all committed to your personal, business and eternal success.

Kris Den Besten to speak at next Chamber luncheon

Kris Den Besten

Kris Den Besten, president & CEO of Vermeer Southeast and author of the book SHINE, will be our keynote speaker at the Sept. 8 Business-Building Lunch. At our November 2009 lunch, Kris shared how God brought him, his family and his company through some very dark times; now Kris returns to tell the rest of the story!

SHINE is not simply a how-to formula to make you employee of the month or salesperson of the quarter -- although that could happen. Rather, it is a Bible-based, Christ-centered approach for transforming your attitude about work: from that of making a living to that of making an eternal difference.

Join us Sept. 8, 11:30 a.m.-1 p.m., in Faith Hall at First Baptist Orlando. The doors open at 11 a.m. if you want to get in some extra chat time. Cost: $25 for chamber members and first-timers, and $40 for nonmembers. Registration deadline is noon on Sept. 6. Register online, or call the office at (407) 814-1124. Table sponsorships are available to members only; a table for eight people is $200. Sponsorships are sold only by phone.

Here's a sample of the wisdom in Den Besten's book:

Credible workers get things done. They do not make excuses but always come through by meeting or exceeding expectations. They are prompt, they meet deadlines, and they can be counted on at all times. They do not take shortcuts or skimp on quality. They do not grumble and complain. Rather, they display an eagerness to model Christ with positive words and actions.

Please join us for what is sure to be an inspiring session.

Blessed Are The Peacemakers

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Ken Sande, president of Peacemaker Ministries, will give the keynote at the Aug. 11 Business-Building Lunch. Too often we hear about Christian brothers and sisters using the judicial system to solve disagreements. Mind you, that’s not a new problem. Paul wrote to the church in Corinth about it. You would think we’d have learned by now…

Sande is passionate about bringing the life-changing power of the gospel and God's peacemaking principles into the lives of Christians and their churches to solve this ancient problem. Over the years, he has ministered to parties in hundreds of conflicts ranging from simple personal disputes to complex church and legal conflicts.

Ken Sande

Sande is a consultant to churches and Christian leaders and has written numerous resources about conflict resolution. He has co-authored two books: Peacemaking for Families and The Peacemaker Student Edition for teens.

Come hear Sande speak about solving conflict Biblically Aug. 11, 11:30 a.m.-1 p.m., in Faith Hall at First Baptist Orlando. You can register online.

Preventing Everyday Conflicts

Conflict seems to be everywhere: in our homes, our workplaces, and especially lately, in our government. But it doesn’t have to be a part of your daily life, according to Tim Scudder. His firm helps companies and executives handle workplace conflict.

Dan Tero — iStockphoto

He says conflict anywhere can be an opportunity to resolve long-standing issues and can help us lead more productive lives. It’s not just about resolution. It is also, he says, about learning to have nicer conflicts.

Scudder is CEO of Personal Strengths USA and co-author of Have a Nice Conflict: A Story of Finding Success and Satisfaction in the Most Unlikely Places. “As one set of conflicts is resolved,” he says, “others will take their place, so it’s important to learn how to make conflicts productive and positive, instead of allowing them to distract us from our goals.”

Scudder shares five keys to conflict:

Anticipate. Know who you’re dealing with. Consider how differently others might view the same situation. When people see things differently, there is potential conflict. Keeping that in mind can give you a good shot at steering clear of it.

Prevent. Use deliberate, appropriate behaviors in your relationships. A well-chosen behavior on your part can prevent conflict with another person. But sometimes, you also need to prevent conflict in yourself. That might have more to do with choosing your perceptions than choosing your behaviors.

Identify. There are three basic approaches to conflict: rising to the challenge, cautiously withdrawing, or wanting to keep the peace. When you can identify these approaches in yourself or others, you are empowered to handle the situation more productively.

Manage. This has two components: managing yourself and managing the relationship. Create conditions that empower people to manage themselves out of the emotional state of conflict. It’s also about managing yourself out, which can be as easy as taking time to see things differently.

Resolve. To reach resolution, we must show others a path back to feeling good about themselves. When they do, they are less likely to feel threatened and are free to move toward compromise and resolution.

“Unresolved or poorly managed conflict costs companies in ways they can’t even calculate,” he adds. For example, recent research shows the top reason people leave jobs is poor relationships with supervisors. “Lost institutional memory, low productivity, bad morale, high turnover all cost real dollars.” But well-managed conflict can not only prevent those losses -- it can also promote higher productivity and a stronger bottom line.

Maybe Scudder should visit Washington, D.C.


Tim Scudder is a CPA and president of Personal Strengths Publishing Inc. Since 1995, he has focused on helping clients improve relationships.

For more about resolving conflict, join us at the August luncheon,
where Ken Sande will talk about peacemaking.

Do you have expert advice to share? E-mail Kristen.

Helping people find their purpose

If you heard Kevin McCarthy speak at the chamber luncheon last September, you know his mission is to help others be on-purpose.* Many of us have been through the On-Purpose Leader Experience, a transformative seminar that helps people focus on their purpose, vision, and mission.

Kevin is looking to broaden the On-Purpose reach with a small group study, and has applied for a grant from Intuit, maker of Quicken and Quickbooks software. To get the grant, Kevin's company,  On-Purpose Partners, needs votes:  http://bit.ly/khwhji.

If On-Purpose Partners wins the grant, it will fund completion of the small group materials for his book The On-Purpose Person. This would be a great resource, so I encourage you to support the endeavor.

* If you didn't hear Kevin speak at the chamber, here's a link to a replay.

Listening to Your Customers

By George F. Brown Jr.

Successful business strategies build upon shared successes. When your strategy creates value for your customers, your firm also gains value.

Photo by Carl Dwyer | sxc.hu

One tool critical to such strategies is customer-based insight. Many businesses have some kind of Voice of the Customer program to gather insight from customers. There are three primary goals for such a program:

Gain customer input.

Learn the customer’s perspective on the future business environment and their most pressing needs. This brings insights about product innovation, critical services, trends, and more. These insights can help you get ahead of opportunities and strengthen your value. The key is to keep looking forward, rather than focusing on past performance.

We’ve all had “Duh!” moments—when an insight that should have been obvious was overlooked. One of my Duh! moments (and I admit to many) occurred in a company I was running some time ago, when we faced major challenges keeping up as our customers expanded globally. The Duh! moment came when a colleague asked, “Have we ever asked our customers about their expansion plans?” We started to do so, and the problem never resurfaced.

Effective listening doesn’t stop with direct customers. It’s necessary to listen to all of their customers. Pay attention to the entire customer chain: the path that leads from your customers all the way to the final users of their products. Perspectives vary at each stage, with implications that ripple backwards and forwards. Remarkable insights can be gained simply by asking customers at each stage what they would like to know about the other stages.

Learn what makes a best-in-class supplier.

Identify the metrics customers use to evaluate their suppliers, then develop internal action plans to meet those targets. Blue Canyon Partners identified three clusters where such metrics are concentrated: relationships between suppliers and customers, the suppliers’ ability to meet customers’ expectations, and suppliers’ ability to deliver high-value innovations.

Two things make this a challenge: First, while the three metrics clusters almost always apply, actions to be implemented differ from one customer to the next. Customize your program to gain insights about individual customers. Amalgamated data can yield an outcome that is right on average, but missing the mark with each individual customer.

Second, it takes insights from many people to get an overall picture. A customer’s perspective is shaped by the experiences of many people: designers, engineers, salespeople, and so on. Rarely does any individual know all the details relevant to every dimension of the supplier’s relationship with their company. It takes a lot of listening to understand what matters to a major customer, but that effort is required if a solid portrait is to be developed.

Fix what’s important to the customer.

Too often, this is the only goal addressed by the Voice of the Customer program. It is important, but is third in terms of long-term impact. It requires focusing on what can be improved along all the dimensions of customer interaction. There are three keys to doing this without focusing on the past:

First, topics should only be brought up after discussions about the future environment and the characteristics of best-in-class suppliers have been completed.

Second, distinguish between generic wishes for “better” and situations in which current performance is bad compared to competitors or a meaningful benchmark.

Third, learn whether customers will reward a supplier for improvements in metrics where they say they want “better.”

Select a few targets in which to invest management attention. Narrow the focus to action plans where improvement will provide a payoff. Learn what the customer would do differently if a certain change were made. If the answer is “nothing,” then the change should be reconsidered. On the other hand, if the customer can explain with clarity how the change would leave them better off, then the change has the potential to create value for both firms.

George F. Brown Jr., along with Atlee Valentine Pope, is the co-author of CoDestiny: Overcome Your Growth Challenges by Helping Your Customers Overcome Theirs, published by Greenleaf Book Group Press. Brown is also CEO and co-founder of Blue Canyon Partners Inc., a strategy consulting firm.

Do you have expert advice to share? E-mail Kristen.