Dr. Horsepower (DRHP) whom made me CEO of their company last September and then changed the terms in October asked to meet with me last week. They said that they want me back to run the company.
I told them that some things would have to change but, I would consider it. I met with them today and got a look at their financials and deals in progress. I realized there is a huge gap between how I think of a startup and its components than how they currently think. I also got a look at how messy it can be to step into a startup that already has been started.
Here are some thoughts about how to start a startup:
First you need to have a very good team. A team is more important than an idea to prove this go to any VC with a brilliant idea and ask them to sign an NDA---they will blow you off---ideas have no value but, a great team with a mediocre idea certainly has value.
Second: create something that people actually want and do it with as little money as possible. Most startups fail because they failed to do one of these------if you can do well at all three your startup has a good chance at success.
The team is important because business is like your love life---there is always give and take and there must be passion for them to work. If your product is something people want and they derive value from it ---they will seek it out and buy it. That is why a hole in the wall restaurant at the far edge of town will be packed while a "nice" restaurant downtown with marginal food will have to put out coupons to get people in the door. People will go to great lengths to obtain something that gives them value.
The third and most important component (from my perspective) is to do everything with as little money as you can. While expensive (furniture, office space, etc.) looks impressive and says success ------spending unnecessarily can be the kiss of death for a startup.
After that--dig in and never look up until you hit your numbers.
I need to figure out what to do with these energy drink guys.
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