Being a tech entrepreneur is tough work. For women, it may be even tougher writes Jennifer Walzer, founder and CEO of New York-based Backup My Info!, in an article in yesterday's New York Times titled "Nobody Ever Said It Would be Easy."
In starting up and running her company, Walzer has often been treated as if she were "a non-technical female with a nice smile, sent to butter [clients] up in the hopes of scoring a second meeting with a 'real' engineer,'" she writes. "I've had technical questions fired at me like bullets, with the expectation that I'd crack under pressure, but I always try to answer the questions calmly, coolly and knowledgeably, often to the surprise of those around the table.
"I'm biased toward tech. I think this industry is great and full of opportunities, so if you know of a woman heading to college with an interest in math, science and problem-solving, tell her to give tech a try.
"But let's face it, no matter your gender or what you are trying to do, you're going to face someone who writes you off without giving you a chance, thinks your idea is foolish, or doesn't have time to hear what you have to say. If you think you are strong enough to get up every day and try again and again to make it work, you just might be an entrepreneur."
Very sound advice for both men and women.
Wednesday, September 23, 2009
Tuesday, September 22, 2009
Belt-Tightening and Selectivity are the Watchwords for Venture Investors Today
A year after the collapse of Lehman Brothers, venture capital investors continue to emphasize belt-tightening and investing only in companies that have the very best chances to succeed, says an article on the Venture Capital Dispatch in yesterday's Wall Street Journal.
The article is based on a panel discussion on "Keeping Portfolio Companies Alive and Thriving," at the Dow Jones Private Equity Analyst Conference in New York last week.
"If you're not getting escape velocity, that company should be sold or closed," said Kate Mitchell, a managing director with Scale Venture Partners. While there's still a willingness to invest in portfolio companies that are doing well, Mitchell said "there's a lot more dialogue about whether it's too early or too late" to try to accelerate a company's growth.
"The best CEOs are very cognizant of how hard it is to get new funds and [are] adjusting their spending accordingly," said David Lane, a general partner with ONSET Ventures.
Not all the talk on the panel was negative. All panelists saw opportunities for companies to succeed during the recession, but the concept is the need to be very selective.
It's anyone's guess as to how long this attitude will last among venture investors.
The article is based on a panel discussion on "Keeping Portfolio Companies Alive and Thriving," at the Dow Jones Private Equity Analyst Conference in New York last week.
"If you're not getting escape velocity, that company should be sold or closed," said Kate Mitchell, a managing director with Scale Venture Partners. While there's still a willingness to invest in portfolio companies that are doing well, Mitchell said "there's a lot more dialogue about whether it's too early or too late" to try to accelerate a company's growth.
"The best CEOs are very cognizant of how hard it is to get new funds and [are] adjusting their spending accordingly," said David Lane, a general partner with ONSET Ventures.
Not all the talk on the panel was negative. All panelists saw opportunities for companies to succeed during the recession, but the concept is the need to be very selective.
It's anyone's guess as to how long this attitude will last among venture investors.
Monday, September 21, 2009
Is Entrepreneurship Right for You?
Pointing out that starting a business is in some ways like becoming a parent, an article in today's Wall Street Journal poses five questions that an individual should ask before starting a business.
The article, "How to Decide If Entrepreneurship is Right for You," by Colleen Debaise, points to the following five questions:
Am I passionate about my product or service? Because your enthusiasm for you product or service typically makes the difference in making the sale and building the business, "it's unwise to start down the path of entrepreneurship unless you've got a zeal that will get you through the rough patches and keep you interested long after the initial enthusiasm has faded."
What is my tolerance for risk? "Nothing about starting a business is for the faint of heart," the article states."...There's no guarantee of success or even a steady paycheck. If you're risk-averse, entrepreneurship probably isn't the right path for you."
Am I good at making decisions? "No one else is going to make them for you when you own your own business...Decision-making only gets more complicated as time goes on, once you have employees or clients depending on you...The choices you make can lead to success or downfall, so you must feel confident in your ability to make the right call."
Am I willing to take on numerous responsibilities? "Solo entrepreneurs in particular must be versatile and play a number of roles...If juggling many roles doesn't suit you, entrepreneurship probably won't either."
Will I be able to avoid burnout? "Working seven days a week, losing touch with friends, abandoning old hobbies and interests, and not making time for loved ones can quickly lead to burnout in the midst of starting up--and ultimately to business failure." The article gives a specific example of total burnout. With this particular entrepreneur working on his second startup, he has embarked on a better work/life balance, including not working on Sundays, making time for hobbies, and building close ties with other business owners through a faith-based support network.
"Take some time to mull over these questions, do some soul-searching, and then if you think you have what it takes, go for it," the article advises.
Good advice!
This article was adapted from a forthcoming book, "The Wall Street Journal Complete Small Business Guidebook," (Three Rivers Press, scheduled for publication December 29, 2009).
The article, "How to Decide If Entrepreneurship is Right for You," by Colleen Debaise, points to the following five questions:
Am I passionate about my product or service? Because your enthusiasm for you product or service typically makes the difference in making the sale and building the business, "it's unwise to start down the path of entrepreneurship unless you've got a zeal that will get you through the rough patches and keep you interested long after the initial enthusiasm has faded."
What is my tolerance for risk? "Nothing about starting a business is for the faint of heart," the article states."...There's no guarantee of success or even a steady paycheck. If you're risk-averse, entrepreneurship probably isn't the right path for you."
Am I good at making decisions? "No one else is going to make them for you when you own your own business...Decision-making only gets more complicated as time goes on, once you have employees or clients depending on you...The choices you make can lead to success or downfall, so you must feel confident in your ability to make the right call."
Am I willing to take on numerous responsibilities? "Solo entrepreneurs in particular must be versatile and play a number of roles...If juggling many roles doesn't suit you, entrepreneurship probably won't either."
Will I be able to avoid burnout? "Working seven days a week, losing touch with friends, abandoning old hobbies and interests, and not making time for loved ones can quickly lead to burnout in the midst of starting up--and ultimately to business failure." The article gives a specific example of total burnout. With this particular entrepreneur working on his second startup, he has embarked on a better work/life balance, including not working on Sundays, making time for hobbies, and building close ties with other business owners through a faith-based support network.
"Take some time to mull over these questions, do some soul-searching, and then if you think you have what it takes, go for it," the article advises.
Good advice!
This article was adapted from a forthcoming book, "The Wall Street Journal Complete Small Business Guidebook," (Three Rivers Press, scheduled for publication December 29, 2009).
Tuesday, September 15, 2009
SBA Lending Has Risen This Year, But When Stimulus Money Runs Out, Where Will Additional Funding Come From?
An article in yesterday's New York Times cited a good news/bad news situation with regard to monies available for SBA lending to small businesses. The article, "SBA Lending is Rising, but What Happens When the Stimulus Runs Out?", says that lending backed by the SBA has rebounded back from last winter's low point. But it adds that, unfortunately, the spigot may run dry again when stimulus money runs out. And, it adds that it is unclear whether Congress will be able to find a way to keep the money flowing.
"We're almost back to '08 levels," said Karen Mills, SBA Administrator. "Almost a thousand banks that did not make a loan from that frozen point in October have come back to the program and are making SBA loans. And more than half of those banks hadn't made a loan since 2007."
Since the stimulus law went into effect, Mills said, the SBA has approved $7.7 billion in loans, and "leveraged $9.5 billion into the hands of small businesses."
Officials in Washington are trying to find a way to keep the stimulus going, the article says. It is unlikely to be funded by an additional appropriation, it says. But an aide to a senator on the Appropriations Committee said committee members are looking at legislation that would permit the unused money from the Troubled Asset Relief Program (TARP) allocated to secondary market loans to be used to extend the stimulus provisions.
This would be a positive development for small-business growth.
"We're almost back to '08 levels," said Karen Mills, SBA Administrator. "Almost a thousand banks that did not make a loan from that frozen point in October have come back to the program and are making SBA loans. And more than half of those banks hadn't made a loan since 2007."
Since the stimulus law went into effect, Mills said, the SBA has approved $7.7 billion in loans, and "leveraged $9.5 billion into the hands of small businesses."
Officials in Washington are trying to find a way to keep the stimulus going, the article says. It is unlikely to be funded by an additional appropriation, it says. But an aide to a senator on the Appropriations Committee said committee members are looking at legislation that would permit the unused money from the Troubled Asset Relief Program (TARP) allocated to secondary market loans to be used to extend the stimulus provisions.
This would be a positive development for small-business growth.
Monday, September 14, 2009
Nimble Serial Entrepreneur Transforms Technology Developed for Stock Price Forecasting Into Low-Cost Data Storage Application
The path to new business success is not always a straight line. An article on Scale Computing, of Indianapolis, in The New York Times on September 10 traces the circuitous route of Jeff Ready and his business partners in moving from the use of an artificial intelligence technology they had developed for forecasting stock prices and building a hedge fund, to using the technology to build a successful data storage company.
By the time they had developed the technology to the point where they thought they could commercialize it, the economy and the financial markets had turned sour, and they could not raise the $100 million they thought they needed to commercialize it for the stock market application. Furthermore, there were some problems with the technology that made it impractical at that time for this application.
Ready and his partners, CFO Scott Loughmiller and COO Ehren Maedge, are serial entrepreneurs. Prior to starting Scale Computing, they built and sold several other companies.
After their pitch fell on deaf ears, they came up with the idea of selling the low-cost storage nodes, and started Scale Computing in April 2007. This past February, they started delivering the nodes, and orders have been coming in. "Small business, hospitals, law firms, school districts and even one Fortune 100 company like the devices because they can buy as few as they want and as their storage needs grow, they can add as many as they need at multiple locations," the article says.
"I've never run a company that gained so much traction so quickly," Ready said. The company has grown to 22 employees, and Ready projects sales of $2 million this year and $8 million in 2010, though he concedes that fortunes can change quickly at startups, either up or down.
Professor Andrew Zacharakis, an entrepreneurship expert at Babson College near Boston, said Ready and his partners have exhibited the familiar entrepreneurial trait of nimbleness as circumstances change. "They take low-cost tests and learn along the way," he said. They don't get discouraged."
This is an excellent example of entrepreneurial fortitude and persistence paying off.
By the time they had developed the technology to the point where they thought they could commercialize it, the economy and the financial markets had turned sour, and they could not raise the $100 million they thought they needed to commercialize it for the stock market application. Furthermore, there were some problems with the technology that made it impractical at that time for this application.
Ready and his partners, CFO Scott Loughmiller and COO Ehren Maedge, are serial entrepreneurs. Prior to starting Scale Computing, they built and sold several other companies.
After their pitch fell on deaf ears, they came up with the idea of selling the low-cost storage nodes, and started Scale Computing in April 2007. This past February, they started delivering the nodes, and orders have been coming in. "Small business, hospitals, law firms, school districts and even one Fortune 100 company like the devices because they can buy as few as they want and as their storage needs grow, they can add as many as they need at multiple locations," the article says.
"I've never run a company that gained so much traction so quickly," Ready said. The company has grown to 22 employees, and Ready projects sales of $2 million this year and $8 million in 2010, though he concedes that fortunes can change quickly at startups, either up or down.
Professor Andrew Zacharakis, an entrepreneurship expert at Babson College near Boston, said Ready and his partners have exhibited the familiar entrepreneurial trait of nimbleness as circumstances change. "They take low-cost tests and learn along the way," he said. They don't get discouraged."
This is an excellent example of entrepreneurial fortitude and persistence paying off.
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