{"id":19186,"date":"2010-06-18T22:06:14","date_gmt":"2010-06-18T21:06:14","guid":{"rendered":"http:\/\/alienbabeltech.com\/main\/?p=19186"},"modified":"2010-06-18T22:27:13","modified_gmt":"2010-06-18T21:27:13","slug":"19186","status":"publish","type":"post","link":"https:\/\/alienbabeltech.com\/main\/19186\/","title":{"rendered":"Startups\u2026Being There at the Beginning"},"content":{"rendered":"
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The following is by G. A . “Andy” Marken, President of Marken Communications<\/span><\/a> Inc. He has kindly given us permission to republish his thought-provoking commentary. As with everything that we publish at AlienBabelTech, the opinions expressed are solely those of the individual writer and do not necessarily reflect the views and the opinions of the rest of the ABT staff.<\/span><\/span> <\/span> \u2013Mark Poppin,<\/span> ABT Senior Editor<\/span><\/span> <\/strong><\/h6>\n<\/blockquote>\n

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\"Figure-1\"<\/a><\/p><\/blockquote>\n

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\u201cGet in on the ground floor, put in a rough year or two and retire a millionaire.\u201d<\/em><\/strong><\/p>\n

<\/em><\/strong><\/p>\n

\u201cWe\u2019re open to new and innovative compensation options.\u201d<\/em><\/strong><\/p>\n

<\/em><\/strong><\/p>\n

\u201cPlay a key role in tomorrow\u2019s Amazon\u2026FaceBook\u2026oh heck, Apple!!\u201d<\/em><\/strong><\/p>\n<\/blockquote>\n

You\u2019ve heard these pitches.<\/p>\n

You watched with amazement at the \u201cease\u201d of funding, the fantastic company multiples thrown around and how \u201cimmediately\u201d ordinary people were transformed into multimillionaires, even billionaires.<\/p>\n

They were just ordinary people with ordinary talents.<\/p>\n

Just folks at the right place at the right time.<\/p>\n

It could have been \u2013 should have been \u2013 you.<\/em><\/strong><\/p>\n

Maybe\u2026maybe not.<\/p>\n

There\u2019s an adrenaline high in building a new company.<\/p>\n

There\u2019s a thrill in building something new from the ground up.<\/p>\n

People need to be confident in their expertise, experience, certain they can make a difference.<\/p>\n

There\u2019s a feeling of solid satisfaction in doing things the way they should be done and seeing the results of your efforts pay off for the company\u2026and for you.<\/p>\n

The dotcom bubble is nothing but a painful memory.<\/p>\n

We once again have a rapid proliferation of new business opportunities.<\/p>\n

Hardware, software, service, consumer products and special interest activities are being started.<\/p>\n

Fueled by great ideas and a new influx of venture capital money the start-ups all have something in common.\u00a0 Starting salaries are low because of the stock options, benefits are reasonable, job security is nonexistent, hours are long and resources are in critically short supply.<\/p>\n

Facing the Challenges<\/strong><\/p>\n

What the optimistic founders don\u2019t tell you is that the chances of success are extremely slim.\u00a0 Actually less than two in ten survive after two years and only one in 20 will experience modest to major success.<\/p>\n

For those who choose to join the startup it still means sharing used desks and chairs, troubleshooting your own computer, shortages of office supplies, long hours and tons of weekend work.<\/p>\n

It also means adjusting their lifestyle to the reduced paycheck, carrying company expenses on their credit card, wooing investors and ridiculous deadlines. It also means understanding the uncertainty in knowing that a giant in the industry could roll over in its sleep and crush the fragile organization with better products\/services, stronger distribution, greater visibility\/credibility, more aggressive pricing.<\/p>\n

Sometimes it means coming to the realization that the investors, not the individual or the founders are calling the shots pushing the company in a different direction.\u00a0 It means meeting arbitrary investor deadlines to keep the infusion of cash flowing.<\/p>\n

But the options are still in front of you and you\u2019ve been getting good press coverage.<\/p>\n

Things are looking good.<\/p>\n

Then it happens.<\/p>\n

An investor pulls out.<\/p>\n

A competitor beats you to the market with the same or slightly better product or service.<\/p>\n

Key developers or personnel defect.<\/p>\n

People underestimate the difficulty and the time required to accomplish key tasks.<\/p>\n

Product or key supplier delays force the company to delay the product\/service launch.<\/p>\n

Startups have a much narrower margin for error.\u00a0 The events that are outside of the individual\u2019s control can have significant repercussions.<\/p>\n

Keeping the bad news inside the organization is one of employees\u2019 responsibilities.\u00a0 Keeping the investors happy is also their responsibility.\u00a0 Getting mediocre to luke warm reception for the \u201calmost ready\u201d product or service is their responsibility.\u00a0 Not getting favorable coverage for the company\u2019s progress to date is partially their fault.<\/p>\n

Suddenly, they are tainted.\u00a0 They are infected.\u00a0 They are fired.<\/p>\n

Yes But\u2026<\/strong><\/p>\n

Before people enter the promising world of the startup, they need to understand the odds. There are lots of statistics available. The bottom line is that very few startups are successful. Many of them fail spectacularly. Those that are successful are not necessarily incredibly successful, but they mange to keep their heads above water.<\/p>\n

If you\u2019re still inclined to take the plunge, you should do your due diligence.<\/p>\n

Ask questions:<\/p>\n