There have been a lot of articles and commentary about how the tech/internet industry will be affected by the global financial meltdown in progress. It surprises me more to see that people in the industry are surprised by it than anything else. As an entrepreneur, the market is always a playing field and you don’t always get the conditions you hope. It’s a lot like the Three Little Pigs. The wolf is coming either way. What really matters is your house.
My start-up, 9, is less than three months old. It has two parts, consulting and content. 9 has a project out for acquisition, is bringing in revenue from its first few clients, and is in a few partnership talks, but it’s still just a baby. When people ask me if I’m afraid the answer is honestly no. I’ve never owned a company in a downturn, but my first start-up was in an early market (2004). I had to run it as if it’d be hard to make money because it was.
I don’t think things are much different now. How will I get my new start-up through the coming year? By running it the way I run all my projects:
1. Keep it lean. Even if I raised capital, you would not see me spending much. Tons of great companies are run out of homes or apartments. You rarely see really successful entrepreneurs in the market bouncing around industry events and parties. Don’t get caught thinking you need to seem big or have things. The right people will judge your company by its progress.
2. Focus. One of the biggest things I tell other entrepreneurs I mentor is to keep their effort focused. Network only where it matters, set objectives and only do things that support them. No entrepreneur I know has the time to go out every night. Spend the majority of your time on your business but make sure it’s on what will give you a return.
3. Wear the hats. I know founders who feel they shouldn’t have to do marketing or handle their own PR, but if you’re willing to get your hands dirty wherever it’s needed, your company will be better for it. The web makes it so possible (and so inexpensive) to do a lot of work yourself. Do it.
4. Explore all options. When I created Stylediary in 2004, web 2.0 hadn’t happened yet and there was very little money in the market. I always had multiple revenue streams baked in for the reason. Look at all the ways you can make money and set your effort on those that make sense.
5. Make the sacrifice. I stay in most of the time and keep my social life to very low key, very targeted parties, dinners and events. When push comes to shove, the business comes first, always. For the first two years of owning Stylediary, I worked another job. Your business is your project. Long hours, long efforts will always be part of it.
