See the [[full|/static/files/MBI/Module%203/Chap%205%20Kawasaki%20-%20The Art of Starting.pdf]] article.

''Manage for cash flow, not for profit''
Bootstrappable business has the following properties:
* Low upfront captial
* short sales cycles (under a month)
* short payment terms (under a month)
* recurring revenue
* word-of-mouth advertising

''Build up a [[Bottom up forecast]]''
* Look at the # contact moments with customers rather than the total market

''Ship, then test''
Works in most cases except medical and biotech
Questions to ask:
* Does our product ./ service leapfrog the competition?
* Can we ship in a geographic area or market segment that is small?
* Is there a tolerant group of customers willing to guinea pig?
* Do we have a vision for creating 'meaning'
* Does it largely fullfill the demands of our customers?
* Does the current state of the product endanger or do harm to the customer (think correctness of data)?

''Forget the proven team''
* Focus on inexperience, young and enthousiastic people over proven experience ones.

''Focus on function not form''
* Don't select the expensive, estabished companies but make sure that their size fits what you need

''Pick your battles''
Make sure that your new product does not solve everything but does have unique selling points:
* What is the crucial 'magic' that we are creating?
* Do customers buy 'parts' or 'integrated' solution?
* How can we tap into efforts of other organisations to get to market faster, better, cheaper?
* How many processes can we do well?

''Go direct''
Do not use resellers as they usually want to fill demand, not create it (compare Phenom)

''Position against the leader''
This helps explaining 'fast' what you are trying to achieve

''Take the 'red' pill''
Metaphore from the matrix meaning that you need to be real. 10 points
# When is your product going to be ready?
# What are the fully loaded costs?
# When will you run out of money?
# How much of your sales pipeline will become an order?
# How much of your accounts receivable is collectable?
# What is your unique selling point?
# Who are underperforming employees?
# Are you maximizing sharehlder value?
# How good are you as a leader of the organization?

''Get a morpheus''
Again a matrix metaphore: get someone who will confront you with reality

''Understaff and outsource''
Prevent lay offs

''Build a board''
You will need good guidance
You will need their network to raise money

''Sweat the big stuff''
Focus on:
* Product or service creation
* Selling it
* Collecting the money

* Set and communicate goals
* Measure progress
* Single point accountability
* Reward achievers
* Folow through on issues until its done or irrelevant
* Heed Morpheus (be real)
* Estabilsh a culture of execution
Fri, 04 Mar 2011 12:23:53 GMT
Fri, 04 Mar 2011 12:23:53 GMT