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| − | Module overview:
| + | M3-S4 - Session notes |
| − | ** The hazards of technologist with cash:
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| − | ** Some cause of unexpected cash flow issues in tech ventures
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| − | ** The art of frugality
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| − | ** Benefits of bootstrapping
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| − | ** Principles of bootstrapping
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| − | ** Cash-based strategic decisions
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| − | Causes of Company X problems
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| − | * Too much money will give technologist the wrong focus
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| − | * Took a long to time to industrialize designs and to get products to the market
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| − | * Made some poor IP investments that had to be written of
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| − | * Bad projects should have been killed sooner
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| − | * Over-estimated the value of the technology on its own
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| − | Deprivation or strategic philosophy?
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| − | * Gave example of verisign:
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| − | ** \$200K,- profit
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| − | ** \$100M,- of venture capital
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| − | ** \$512M of public offering
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| − | Analogy:
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| − | http://www.businessinsider.com/what-sunk-veoh-and-joost-too-much-cash-too-soon-2009-7
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| − | The strategic benefits of bootstrapping:
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| − | * Forces strategic focus:
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| − | ** Highlights tough choices
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| − | ** Less likely to take on too much
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| − | * Promotes discipline & care
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| − | ** Less likely to burn resources on developing something nobody wants
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| − | ** It can encourage creative use of resources
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| − | * Raises returns to all stakeholders
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| − | * Encourages true entrepreneurship
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| − | Principles of bootstrapping:
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| − | * Be realistic about how limited your resources really are
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| − | * Operate in experimentation mode (potential deal killers)
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| − | * Focus on doing the few important things well
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| − | * Try to delay or avoid activities that have a distant revenue prospects
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| − | * Bring revenue prospects as far forward as possible
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| − | ** Finish one product first (do not bet on multiple products)
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| − | * Where you can't earn any income off what you are doing, ask yourself whether it is still worth doing and if so for how long
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| − | * Seek to draw down the future value you may create for suppliers
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| − | * Share out your risk
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| − | * Negotiate everything
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| | [[Category:mbi]] | | [[Category:mbi]] |
