Advice on building a startup from Simeon Margolis, creator of Utterz/Utterli
December 30, 2008 :: Steve FisherHis bio on his personal blog is one line – “Entrepreneur trying to make it in the mobile world”. Many may know Simeon as the “Maestro of Utterz”. Utterz, the micro voice messaging company, was an idea he had that was launched by RPM Communications, the firm he was working for at the time.
In the second part of this three part interview, the impact of micro-messaging tools like Utterz/Utterli and Twitter on the business community and events like the 2008 election. Here is the transcript of that conversation:
Steve: I would like to switch gears a bit and talk about entrepreneurship in general. Since you are now officially a serial entrepreneur with your new venture in stealth mode, it would be good to get some perspective. Having been through many business cycles and with the economy in a tough spot these days, do you feel it is a good time to start a business?
Simeon: I pretty much feel like a first time entrepreneur but I think that’s working to my advantage because in many ways, I don’t know any better. I think right now is a great time to be starting a business but at the same time I’m thankful I didn’t start six months ago. There are tons of talented people out there looking for contracting work and there’s likely to be more. Prices are coming down a bit and people are generally more willing to give good terms on everything except cash. If you’re thinking about starting a business that doesn’t require much overhead, I think now is the perfect time to start. There is nowhere to go but up and while most people are running for cover, you have a unique opportunity to use the leverage you do have very aggressively. Plus, if you can prove a concept over these next 2-3 years, you’re in very good shape when the sea begins to rise again.
Steve: One question I get from people thinking about starting a business is “do I need a business plan”? I tell them that if they are a freelancer and selling their skills, they don’t, but… if they are planning to grow a business that they can’t run without one. What is your philosophy on this type of thing?
Simeon: Business plans as blueprints for how you’re going to operate your business are pretty much worthless, but they are still essential to forcing yourself to think about different strategic approaches and financial alternatives. Personally, I wrote a short business plan that was obsolete 2 days after I finished it. But, I still look at elements of it if not for guidance than just as food for thought. Overall, whether you choose to write a business plan or not, no matter what kind of business you are in, it helps to find yourself a process to do some scenerio planning…painful but necessary. Plus, if you’re planning on raising any money, you’ll need something to outline investor expectations.
Steve: I would like to get a “Top 5” from you. Since we are facing some tough economic times ahead for possibly the next 12-18 months, what are the Top 5 things you would recommend new entrepreneurs running a business should do to weather the storm?
Simeon: Ah, the Top 5 list. We should get Chris Brogan in here for that one, but I’ll take a shot.
1. Be aggressive at everything that doesn’t require cash – go network, do people favors, roll up your sleeves and make some cold-calls, get your team excited about any silver lining you can find, just don’t shrivel up….it’s contagious.
2. There’s no need for overhead. If you’ve got a ton of it, sorry, get out of what you can. I’m working out of my house again happy I didn’t start 6 months ago.
3. Along with #2, the old rule still applies…hire late, fire early
4. Be patient. I’ve worked with too many people who expect instant results and flounder when they don’t find them around every corner. Now is the worst time to be disappointed if everything doesn’t go your way. Stay patient and flexible.
5. Don’t listen to what you read or hear, including this. Sure, read it, hear it, absorb it, but don’t listen to it. Listen to your customers and your team members. My top 5 is much different than yours and you should take the time to figure yours out, now more than ever.
Related Interview Posts:
The Power of Micromessaging from the creator of Utterz/Utterli, Simeon Margolis
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