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http://failconference.creativemediadays.be
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Toon Vanagt (@Toon)Chronic Entrepreneur
Source: http://www.gapingvoidart.com/fail-p-2396.html
Exhibit A:
Business problem in 1998: • Underutilized X86 servers in datacenters, full
of racks, full of identical hardware…all running different OS-versions and applications.
Exhibit A:
Solution in summer of 1999• Add ‘abstraction layer’ software between hardware
and Operating System and name it ‘virtualization’…
Image by Vmware.com (2006)
Exhibit A:
Issues (while pitching to VCs in Silicon Valley):• Too early Laughing VC: “…not a single CIO will trust your mystic layer. They want to
know which disk holds their files and which processor computes their transaction…’
• No credible team • No track-record • No working prototype
http://www.google.com/trends/explore#q=virtualization&date=1%2F2004%20106m&cmpt=q
Exhibit A:
Lessons: • Timing is everything• Consulting doesn’t count as ‘track-record’• Get a sparring partner / team• Build a credible prototype or mock-up: my
‘virtualisers’ later became known as ‘hypervisors’…
• Hold on to your domains in case of failure
Exhibit B:
Business problem in December 1999: • Find reliable
contractors and compare quotes to improve my house in down town Brussels.
Exhibit B:
Solution launched in spring 2000:
• Casius technology platform is the leading online marketplace in the Benelux to connect consumers with pre-screened residential contractors and home service professionals.
• Casius offers the most effective and targeted Internet marketing solution for residential contractors while providing consumers with better choices and guarantees for their home improvement projects.
• Service is free for homeowners.
Exhibit B:Issues:• We burned 4.000.000 EUR of VC money to
build a 1.850.000 EUR turnover business…• Chicken-Egg dilemma when you need to
build a national network• Off-line marketing is a very expensive way
to convert on-line leads• Human ressources are a crucial bottle
neck, but also your core asset• Too many founders (5 ‘chiefs’)• Unfocussed: lots of money in the bank
makes it very hard to kill your darlings, cut fancy features and skip your wishlist
Exhibit B:
Lessons:• Well timed for first dot.com bubble• Founders quiting day jobs shows commitment &
dedication to VC• Business plans are bull shit, but you need them
anyway• Tiny % of a huge market seems solid ground for
business plan• “Sweat for equity” stinks! • Cash is more important than your mother• Grow slow if you can’t scale fast
Exhibit B:
More lessons:Gravity does not apply to your sales funnel!• It takes hard work to ‘squeeze’ those leads
UP in order to win & keep customers
Exhibit C:
Problem:• Very expensive roaming fees
on mobile phone calls, while national ‘family’ subscriptions are cheap and ‘unlimited’…
Exhibit C:
Solution offered in Februari 2006: Get your personal telephone gateway with a mobile ‘family’ subscription on VoIP platform (eg Skype). Name it the Internet Phone and abbreviate it to “IPhone”…
Exhibit C:
Problems• Timing (roaming fees got cheaper)• Impossible to keep up with undocumented
software releases of third party VoIP providers (Skype, Google Talk,…)
http://www.google.be/trends/explore#q=iphone
Exhibit C:
Lessons: • Business case evaporated when
European commission limited those telco roaming ‘robbery’ fees
• Never build your ‘physical’ product on top of undocumented software platforms you don’t control
• Hold on to your domains in case of failure
Exhibit D:
Problem in 2011: Why is it so hard to find comprehensive business information for Belgian companies?
Exhibit D:
Solution launched in April 2012:Search engine & monitoring tool for business information that is:
• Intuitive
• Easy & fast
• Using centralized info
from public Belgian government websites
Exhibit D:
Issues:• Legal hurdles: Outdated privacy laws with respect to big data
technology and commercial information brokers
• Conflict of interest for government agencies: Free Open Data versus Closed Belgian company info
• High entry barrier: KBO/BCE sells a daily copy of its database to 6 commercial information brokers for 100.000/year. Belgian companies have to publish official data and must pay for entering these updates too…
Exhibit D:
Lessons
• Legal hurdles are very slow and uncertain to overcome
• Nowadays it is easier to build a lean technology start-up than a decade ago…
Failure is a consequence of risk taking.
My 5 most valuable tips to limit risk:1. Focus2. Pivot3. Focus4. Pivot5. Keep it fun to enjoy the ride
You’ll fail until you succeed
Source :http://www.gapingvoidart.com/fail-often-p-2405.html
© & contact:Toon Vanagt
[email protected]+32 479 27 29 29
@ToonGhent 6/11/2012FailConference.be