producing technology - how you can launch startups having only idea and zero resources
TRANSCRIPT
producing technology
Alexey Krol
https://www.linkedin.com/in/alexkrol
how you can launch startups having only idea and zero resources
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goal of speech• huge of people believe if they haven’t money or connections
with influential people they can not start projects
• I think this is harmful bias, and we have all the resources to achieve anything
• I will show why this is true and
• how you can launch the startups having only idea and zero resources
• I will show how it works
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a little about me• My name is Alex Krol, actually i was born billions yeas ago in a distant galaxy
• 52 years ago i came to Earth with helping my mom and dad
• This happened in Soviet Union which had high-end science and technology
• so I am ex-scientist from Soviet Union and we was developing military technologies
• but when Soviet Union was broken at the early 90's i was forced to leave science and become entrepreneur
• for last 30 years i launched more then 25 startups in information technology, media, education and movie producing
• I had successful and failed projects, but anyway my career was likes this
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and finally i want to know what’s wrong with me?
every time it’s very hard and painfully stand up after fail
i wanted to find common startup approach to avoid fail
and what i found
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bad news first
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anyway the starting project is most difficult job for all people
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entrepreneurs career for first years likes a broken game
first idea and smallest self-employment
employ
level 2: self-employment or ownership
level 1: employment for corporation
employ
start-up 1
employ
start-up 2
employ
start-up 3
employ
start-up 4
?
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failures distribution over the years from maturity of startups
0
22.5
45
67.5
90
1-st year 2-st year 3-st year 5-st year 8-st year
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we have good news too• there are a huge books and gurus speaking about success
• usually they tell that it’s very simple, something like this: set a goal, follow plan, have positive attitude and so on
• but they warn
• if you will try many times and don’t gave up
• if you will not die from frustration and hanger …
• probably, you will win
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that’s what the modern startup approach is!
Actually i found a lot of tips by billions smart guru, but i could not find clear road map
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so if you can’t find something, create it
I decided to create common startup approach
and i self is my first customer
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short history of producing framework• i was developed first version 10 years ago - i found some reasons why i had some problems
• 9 years ago i started career as movie producer and studied how projects are launched in movie industry
• additionally i strongly studied startups in religions, psychotherapy, motivation speaking, education and on self-help market
• 7 years ago i used my technology and produced documentary movie series and attract more then 2 million $… May be someone thinks this is a small money. Absolutely!
• but it was in Russia, not in Silicon Valley - so it was really cool
• 6 years ago i gave my first seminar about producing. it was free seminar and more then 300 attendees were there.
• since that time i gave more then 250 seminars and gave a huge consulting and mentoring sessions
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i am focused only on earliest stage, when you develop idea before launch the startup
i like it, because this is most creative stage
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bad news again• people fail because they just give up their projects
• more people never can launch projects
• people believe that main reasons of fail is lack of skills or knowledge
• but actually people have fear and haven’t confidence
• they believe if they haven’t money, connections, competence they can not step forward
• most of people prefers to wait passively instead to do pro-actively
• and absolutely all entrepreneurs feel loneliness
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what entrepreneurs need• entrepreneurs need someone like mentor or couch who helps them to
keep moving
• entrepreneurs don’t like aggressive pitch, especially geeks, because they frustrated after pitches
• entrepreneurs need friendly group where they could talk and get feedback in free, creative and relaxed manner
• almost 100% of geeks, scientists, teachers and professionals have big problems with sales and others social skills
• actually people need something like road map or plan which they can follow
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i understood that
if i want to create reliable startup approach
i must help people instead to just teach them
students want degree, but entrepreneurs want outcomes
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at 2011 i launched virtual incubator on the base Israel incubation model
press link to see how it works
http://prezi.com/oj5lf1iybr0_/?utm_campaign=share&utm_medium=copy&rc=ex0share
press link to se presentation
http://www.slideshare.net/AlexKrol/virtual-incubator-and-rd-network
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my mission is involving as more as possible people
everywhere in innovation and entrepreneurship
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one of the most important goals is developing more appropriate startup launch approach
more like movie producing
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i set some requirements for this framework• you don’t need any resources on
early stage
• you can have only raw ideas or no ideas
• you can have any background
• you can have any age, country, industry
• it can be used both independent and corporate startups
• if you follow framework, you can get near from 100% of success
• framework must be easily to scale and have self-improvement options
• we have to use both on-line and off-line delivery and framework have to be free
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current status• now my focus is developing project-base course of producing framework
• for 2014 i was testing framework in individual mentoring sessions
• and this year i took a small group where i incubate projects on the base of producing framework
• we develop profit and non-profit projects for business, not for investors pitching
• i have projects from US, Israel, Ukraine, Belarus and Russia
• we have projects in education, neuro technology, content creation and publishing, music, internet service and drones
• we communicate only via internet
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so… let me tell you how you can start having only idea and
zero resources
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what 90% people has on early stage?people usually have
• raw idea
• small experience
• a small courage
• a lot of doubts
• education and qualification
people usually have not
• sometimes no ideas
• money and connections with right people
• team
• competence and skills
• success story and strong track records
• Stanford or some level university in background
• they don’t live in Silicon Valley or even in US or developed country
• usually they haven’t money to take self in Silicon Valley24
problems people have• people believe they need money to start up
• people believe if they haven’t money they can not move forward
• people don't know how they can attract funds
• the money attraction seems something mystical for most of people
• i told with high professionals who could do fascinating things
• but if we told about funds attraction those smart people become like naive idiots
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that’s why i paid attention how get funds, because people worry about this matter
I always was successful in funds attraction therefore i knew that if people love what you do they give money
of course, they have some explanations why they give money, but actually they did it if they just love what you do
no one knows future, but we know what we love and what we believe
so what we need it just to give people what they love
if we can give people what they want they will pay us its time, loyalty, work and sometimes money
think• how many people who has money? a few!
• can we get in touch with them? yes, but this is not so easy, especially if you live anywhere, not in Silicon Valley
• how many people who have not money, but they have time, skills
• and all what they wants this is growth? a lot!
• where we can find them? everywhere!
• if so we don’t need to attract money, if we can attract people
• its very important points, because it takes our attention from money and put on what we actually must keep in mind - people
• the most important question is what is really attracts people?
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key points of producing approach
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remove the money from the equation
• money disturbs people and causes them to think about money, not about finding solutions
• we develop the any project without money as long as possible
• we use volunteers and partners instead money
• we use more options, benefits, barter and partnership instead bills payment
• this is not bootstrapping because bootstrapping when you use own money, but we try remove money as possible
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what’s about investors?
investors are good idea, but when they come in right time
if you want to develop great idea you don’t need any investors
usually investors are extremely useful on scaling stage, but no before
producing approach for planning and resources
management2
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classical project planning basics are
• resource management
• setting your goals based on resources you ALREADY have
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producing planning• usually there are no any resources on early stage
• so we are attracting resources more, then manage it
• resources and project development appear simultaneously while we are on the way
• we are setting goals before, and then we attract the resources, instead of setting the goals on the resources base
• therefore we are limited only by our ability to attract people
• we can set any goals
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producing is self improving and learning
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why producing works anyway?• we develop our ability to engage people, so theoretically we have unlimited
resources
• involvement of people become the primary function instead of product development
• if you can engage most talented developers, you get best product finally
• we are going beyond own mental limits and we help people go beyond their limits
• if we don’t pay people, usually they can not help us full time
• so if we want to get more we have to think and do by another way
• we have to be more innovative
• whatever you do, this approach shows the most outstanding results
• and all great companies followed this way
producing approach for ideas development
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classical startup approach
• we are looking for the needs and problems of customers
• we are thinking about customers
• we are developing product for customers
• product is basic of monetization
• isn’t so in producing approach
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producing approach• naturally, we have same that classical startup approach has, but
also
• we have a second type of customers and create a second product
• second customers are volunteers and partners
• idea is our second product for volunteers and partners
• idea is monetization on early stage, because you haven’t any products on this stage and, therefore you can not sale products
• but you can sale the idea at any moment
• actually if you have good idea, you can attract people immediately as idea comes in your mind
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special focus• classic formula says - find a need and satisfy it, but
• there are two things which are more valuable than simply needs
• often people are ready to pay 10 times more for getting it
• often people are ready to spend their time for helping, for getting it
• usually engineers and scientists have problems with this, but entrepreneurs take it easily
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what is it?• first of all this is feelings, experiences, strong
emotions
• but there is something more strong and valuable for creative and ambitious people then just experiences
• it is the hope and the promise of new opportunities, belief in a dream come true, and the getting of wealth
• all is associated with success, fame, power, the ability to change the world
people pay much more for the success and feeling than for
problems solvingengineers don’t understand it, but entrepreneurs do
it means when geek talks about cool user experience,
i would like to take him in Las Vegas so he could be actually to feel what cool user experience is
Steve Jobs understood it, nerds not
some real case• a few months ago I invited group of entrepreneurs from Russia
• when those groups come to the Silicon Valley, usually they go to Google, Facebook campus or offices of large companies
• i doubt, if you came in offices of large companies your creativity will improve
• so i didn’t take my friends in Google campus, and even Facebook
• instead we was in Las Vegas, in Death Valley, i shown them giants redwoods and ocean, we was in Disneyland and Universal Studio, we was driving along the highway 1
• It seem they loved Hearst Castle more than Facebook office
• I think big company could be sent employees in Las Vegas more often
How producing works (1)• first of all you have to understand there are no any
corporations or organizations
• there are only people and their communities
• you will deal always only with people, not corporations
• all people have reasons, something that makes sense for their life
• If a person has a choice, he always would work towards for getting his values.
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• When a person believes that this choice is able to bring him to his values, he takes a risk, he spends the time, he supports your project
• When a person believes you, it is easy to get everything you ask
• The meaning of life is not a set of words - it is the hope of getting something extremely important for the soul
• If you want the person helped you, give him so cool meaning of life that he changed all his priorities anyway
• when meaning of life comes, there is nobody who will not change their behavior and priorities
• anyone does everything possible for achieving the meaning of life
How producing works (2)
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why 99% fail at the process of project start
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The truth is that best ideas do not exist• the ideas became brilliant when we develop it
• as they say in Hollywood - scripts doesn’t write, but rewrites
• when the idea just came to mind, it is raw and we feel a lack of confidence
• when we feel a lack of confidence, we are looking for someone for getting support
• what is why we go to the investors too early
• bad idea got only smile and skepticism that frustrates us even more, and we give up idea, instead to develop
• people afraid of failure
• many people are willing to criticize your idea, but it's hard to find someone who is willing to support you, but not your idea
• i do that
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how you can launch startups having only idea and zero resources
• To launch the project, you need resources
• To attract resources - you need people
• To attract people - you need idea
• What is needed to develop the idea?
time, desire and approach
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producing approach1. Product and customer development - who is your customer? What they want, need,
dream? How do you can change their life? what we sale and so on?
2. Partner development - who is your partners and volunteers ? What they want, dream? How do you can change their life? What we can offer them? What we need from their?
3. Business development - How we deliver value to our customers and partners?
4. Scale model development - How will grow?
5. Financial forecast - What is about sustainability? What is our measurable goals?
6. Preliminary planning - what’s our primary goals and who we need to achieve it?
7. Team and partners attraction - it’s all about important people engagement
8. Main planning - what we have to do, what resources we need
9. Anyway, launch the project
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