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Live and learn (hopefully!) ...

Lute Olson was a very popular basketball coach at the University of Arizona.  He had many of his players move on to great careers in the NBA and other professional basketball leagues.  This quote is a good summary of his philosophy for sharing and teaching how to be a better player.  It works well for innovators and entrepreneurs, too ... let's do what we can as best as we can and learn and iterate and pivot as we go.  But, let's try hard to learn from what didn't go well, and not do the same thing again the next time around.

News Release Implementation Plan

Phase 1

  1. Outline base story
  2. Identify key individuals in the story
  3. Establish time frame for activities
  4. Identify target media

Phase 2

  1. Interview story makers
  2. Write a short story (3 pages) as a follow-up to requests for more information from the media or readers/viewers
  3. Write a focused news release(s)
  4. Send news release(s) to media

Phase 3

  1. Field inquiries from media regarding the release
  2. Track response to release
  3. Follow-up as needed

Phase 4

  1. Summarize activities ... package the story, news release(s), tracking info, results, suggestions for follow-up

Venture Hypothesis Outline

  1. Title slide or page ... venture concept name, team members, 3-word concept summary
  2. Opportunity ... the problem, market research and analysis, first customer(s) beachhead
  3. Solution and venture concept ... products and services, competitive advantage
  4. Business model ... how the venture will earn money (or self-sustain)
  5. Marketing and sales strategies ... how the venture will attract and retain customers, tactical marketing
  6. Product development and operations strategies ... how the venture will develop and deliver solutions to customers
  7. Team and organization ... the current team and what do they do, advisors, team members to be added
  8. Risks and variations ... downside and upside risks, timeline, and tolerances
  9. Financial model ... estimate of units sold, average selling price, revenue, expenses, and EBITDA for first 5 years; key assumptions; significant startup expenses
  10. Validation plan ... how the hypothesis will be validated
2.03

Red Flags ...

I have worked (in varying degrees, from light to heavy) with literally hundreds of new venture planning and startup teams, through my 20+ years at the University of Arizona, as a private consultant, and as a startup team member. 

I have a personal mental checklist that I use to evaluate the success probability of a new venture: can it move from the planning stage to a financially stable self-supporting business.  Some science here, some "gut feel", some "told you so" experience coming through ... but here are some of my "red flags": things startup team members say and what I really "hear".

They say: "We don't have any competition!"  ... I hear: "We haven't done our homework to see what else is really out there."

They say: "We the first to ever do this!" ... I hear: "So who cares?  If it's never been done before, maybe that's because there's really no need to do it."

They say: "Everyone is going to want one of our new gizmogadgets!" ... I hear: "Our family and close friends think our gizmogadget is really neat!"

They say: "We're going to build a much, much better gizmogadget and sell it for half as much as the competition!" ... I hear: "We have no idea how much it will really cost to make our gizmogadget or how much it will really cost to market it."

... and there are more!  Check back every now and then, and I'll update this post.

Financial Objectives

Here's a photo of a whiteboard from my old office at the University of Arizona that shows a representative example of setting some "financial objectives" for a business venture ...

Android Apps I've found most useful ...

OK, I admit it ... I'm an "Android Guy".  My tablets, my smartphone, even my Chromebooks all have Android apps.  I'm a (usually) happy camper.  Here are some of the apps I've found most useful ... no particular order ...

Google Keep (notes and lists), Memento (relational database), Squid (graphics and notes), Evernote (notes and articles filing, document scanning), File Commander (file management), Open Camera (photography), Google Drive (file storage and document scanning), Google Calendar (time management), HereWeGo (offline maps and navigation), Skype (video communications), Google Voice (text messaging, telephone), LinkedIn (personal networking), Gmail (email), LastPass (password management), Night Clock (soft night clock), ClockSync (time), OpenTable (dinner reservations), OurGroceries (shopping, to-do, packing lists), OfficeSuite (off-line word processing, spreadsheet, pdf), Google Slides (off-line presentations), Google Docs (on- and off-line word processing), Chambers Thesaurus (offline thesaurus), Chambers Dictionary (offline dictionary), Amazon Music (off- and on-line music), Speedtest (internet performance measurement), Easy Voice Recorder (audio recording), Google Photos (photography storage), Amazon Kindle (books and materials), Touch RPN (RPN calculator), Blogger (blogging), AP News (news), Google News (news), Amazon (shopping) ... [- Jim]

LLC Operating Agreement Checklist

An operating agreement is the legal foundation document describing an LLC (limited liability company) ... this document serves the same function for an LLC as corporate bylaws serve for a corporation. Following is a checklist of items to be considered ...

GENERAL
1. Under what state law will the LLC be formed?
2. What is the name of the LLC?
3. Has the name been checked with the Secretary of State?
4. What is the purpose of the LLC?
5. What is the term of the LLC?
6. Is the LLC member managed or manager managed?
7. Who is the manager if manager managed?
8. Who is the agent for service of process?
9. Is the manager a limited liability entity?

CAPITAL CONTRIBUTIONS
1. What is the initial capital contribution of the managing member?
2. What is the initial capital contribution of the other members?
3. Will members be required to make additional contributions if necessary?
4. What happens if a member fails to make a required capital contribution?
5. What approvals are required to add new members?
6. Are members allowed to withdraw their capital contributions? If so, under what
circumstances?
7. Is a member entitled to interest on his or her capital contributions?
8. Does any member have any priority on distributions over any other members?

ALLOCATIONS
1. How are distributions to be divided among the members?
2. How are tax allocations made?
3. When are distributions to be made?
4. Will there be special distributions required to be made to at least pay for tax on each member’s pro rate income from the LLC?

MANAGEMENT OF THE LLC
1. How broad are the management powers of the manager?
2. What limitations are there on the powers of the manager?
3. If there is more than one manager, what actions require the consent of all of the managers?
4. Is the manager obligated to devote any particular amount of time to LLC matters?
5. Is the manager and its affiliates free to engage in other activities?
6. Is there any limit on the manager’s right to form other entities?
7. Will the manager be broadly protected from liability?
8. Will the manager be indemnified for acts taken on behalf of the LLC?
9. Under what circumstances might the manager be liable to the members for acts or omissions?
10. What specific duties does the manager have?
11. Will the LLC have officers?

COMPENSATION TO THE MANAGER
1. What fees is the manager entitled to?
2. What reimbursements is the manager entitled to?
3. Is the manager entitled to incentive compensation or a carried interest?

BOOKS, RECORDS, ACCOUNTS AND REPORTS
1. What books and records are to be maintained by the LLC?
2. What access rights will the members have to books and records?
3. What reports will the members be required to receive?
4. Who will be the tax matters partner?

VOTING RIGHTS
1. What voting rights will the members have?
2. What major actions can the manager take without other members’ approval?

MEETINGS
1. Where will meetings be held?
2. How can meetings be called?
3. What notices for meetings must be given?
4. What quorum is necessary for meetings?
5. Can actions be taken by written consent of the members?

ASSIGNMENT OF INTERESTS
1. Do the members have the right to assign their interest in distributions?
2. What rights does an assignee of a member’s interest get?
3. In what situations will assignment be prohibited?
4. What are the procedures for substitution of members?
5. What happens on the death, incompetency or bankruptcy of a member?
6. Is there a right of first offer or first refusal on transfers of interests?

TERMINATION OF A MANAGER
1. Under what circumstances can the manager voluntarily withdraw as the manager of the LLC?
2. What are the events that will result in the manager ceasing to be the manager of the LLC?
3. Under what circumstances can the members remove the manager?
4. What happens to the manager’s interest when it has ceased to be the manager?

DISSOLUTION AND TERMINATION OF THE LLC
1. Under what circumstances will the LLC be dissolved?
2. Under what circumstances can the LLC continue notwithstanding a technical dissolution?
3. How are distributions to be made on liquidation of the LLC?

MISCELLANEOUS
1. Which amendments to the Operating Agreement can be effected solely by the manager, without the consent of the members?
2. How are other amendments to the Operating Agreement to be effected?
3. When will amendments to the LLC’s Certificate of Organization have to be made?
4. What power of attorney is granted to the manager?
5. Is there an arbitration clause that governs any disputes among the members?
6. Are the members liable in circumstances other than for their capital contributions?
7. What competitive activities may the members engage in?

[Thank you, Small Business Kit]

How to Solve a Problem

  1. Define the problem
  2. Define a set of criteria for a good solution
  3. Explore potential causes of the problem
  4. Explore existing solutions
  5. Identify alternative approaches for resolving the problem
  6. Select the best approach for resolving the problem based on the criteria for a good solution (number 2 above)
  7. Plan the implementation of this approach
  8. Implement the plan
  9. Monitor the results
  10. Verify the problem has been resolved
[1.05]

Our Purpose in Life

Ahhh, that classic question: What's the meaning of life?  Hmmm ... suppose it really is "42"?! (You'll have to see Hitchhiker's Guide to the Galaxy for those details.)  In the meantime, here's a chart that may help you with your answer ...