Seedcorn competition

The 5 hardest startup lessons I’ve had to learn

One of my highlights of this busy past week was chatting with the Public Service Launchpad cohort of entrepreneurs & intrapreneurs in London and sharing with them a few of the hard lessons I learned as we were building Learning Pool.  Even though I probably scared the life out of everyone with my stories a few people have asked me to blog this session so here we go.  I’ve organised my thoughts into my 5 key learns – I’m sure other entrepreneurs out there will have more of their own to add.

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Lucy Knight’s amazing sketchnote of my talk.

Relentless execution is required to the exclusion of all else.  The odds are stacked against you in a startup.  70% will fail and won’t make it to the end of the first 18 months.  You have to move your project forward every day.  This means no distractions or other side projects.  No social life and the bare minimum in terms of spending time with your family.  I can remember my mum saying to me that she saw less of me in those first 2 years at Learning Pool when I was 20 miles down the road than she did when I was previously working in London 500 miles away.  If you’re only prepared to work 60 hours a week in your startup you might as well forget it as you’re wasting your time and everyone else’s.  You have to deal with exhaustion and sometimes the sheer boredom of it as you spend a lot of time doing stuff you don’t enjoy.  You have to use every minute productively.  Make all your phone calls when you’re hanging around.  Use time on planes to write blogs and website content.  If you go away on holiday, expect to work every day – even if you have a co-founder and team.  There’s no off button.  You’ll work 364 days in those first few years (everyone’s entitled to take Christmas Day off!).  You’ll also constantly iterate and pivot based on customer feedback, make endless decisions (often with insufficient info), do your damnedest to hit deadlines, overdeliver and do rework for customers without being paid for it (suck it up) and you’ll always be selling and doing a load of other stuff you’ve never had to do and are probably uncomfortable with.  It’s quite common to hear startup entrepreneurs talk about all the stuff they’ve gradually shed to make more time in their working week and in extreme circumstances that will include sleep.  I was discussing this with Mark O’Neill of Government Digital Service this morning & we concluded that kickstarting an early stage startup is like throwing cats against a wall and hoping some of them will manage to scrabble up to the top – not that Mark or I would ever do such a thing.  Also the knowledge that others out there might have cats with sucker pads instead of paws…

Financing – should you take investment or bootstrap.  Sometimes this decision is dictated by your product.  You can’t launch a new drug or build a semiconductor company without investment.  If you take investment, expect to be bitterly disappointed by the early doors valuations you receive and brace yourself for the late night calls and crazy demands of your investors.  They’ll all spin you that line about owning a smaller slice of a bigger pie.  If you bootstrap, be prepared for the pressures that will bring.  Complete focus on getting to revenue, constant running of your numbers, daily cashflow forecasts, making the awkward phone calls when you can’t pay your suppliers.  Having to borrow from the bank and then compartmentalising that worry.  Being really honest with yourself or yourselves about where you are against your business plan.

3.     Learning properly how to sell and all the boring stuff you have to do in order to sell successfully – scanning for tenders, writing responses, following up for feedback when you don’t win them, iterating your pitch, implementing and using a CRM (I know at least one startup entrepreneur who used to fire people for not keeping the CRM up to date), getting ISO accredited, building a brand, having a proper sales deck and collateral, constantly refreshing your website content.  The discomfort of making yourself pitch if you’re not a natural salesperson and (if you’re sensible) learning to sell in pairs.  Making smart decisions about what to chase with your limited time and resource.

My friends Martin Howitt and Lucy Knight from Devon County Council

My friends Martin Howitt and Lucy Knight from Devon County Council

        Dealing with your own people.  You can’t afford anyone experienced so you recruit for potential.  That then requires a lot of time (that you don’t really have) as the team doesn’t know much and therefore they run everything past you.  Not many people can write coherently so you’ll spend a lot of your time re-doing what others have done – usually after they’ve gone home or gone off on holiday.  I found a lot of time is spent trying to second guess the mistakes your team are going to make in some sort of order of priority.  In reality, not that much bad stuff happens.  It’s the excruciating moment when you see an email that’s gone out or overhear someone talking nonsense on the phone.  It’s useful to teach your team early doors how to make their own decisions.  If you don’t do that it will add to your own already massive decision burden.  Letting people go when they don’t work out.  This gets a bit easier over time and the interval between joining and leaving certainly shrinks dramatically.  Disappointment when people you’ve been good to let you down.  That doesn’t get any easier.  The realisation that you’ve become a worse person inside yourself over the years.

5.      Working out the people mix, building the culture you want and creating a cohesive team.  After all it’s your opportunity to create the sort of business you’ve always wanted to work in yourself.  Sticking to your values and not compromising on them.  It’s easy to own the moral high ground when you’re a PAYE person; you soon discover where your values limits lie when your house is on the line.  The stuff you find out about yourself that you may not necessarily like.  Burying that ego that’s been growing during your years in education and when you were climbing the career ladder.  As Jim Collins says in Good to Great, looking in the mirror when things go wrong & through the window when things go right (to see who else was involved in getting that good result).  The sheer amount of time you will spend with your co-founder(s) and team in those early years.

Gloria and Katrina from the Diverse Leaders Network, part of the PS Launchpad

Gloria and Katrina from the Diverse Leaders Network, part of the PS Launchpad

So – I hear you all ask – this sounds bloody awful so why bother?  That’s easy & I have 5 reasons why it’s worth it:

1.       The Prize – financial and other.

2.       The huge satisfaction you get from building something from scratch that you’re proud of.

3.       The highs are amazing.  When you make a big sale or you land a sale where you started out as the underdog.  When you win a big award.  I still remember how I felt the night the call came in telling us we were the Intertrade Ireland regional Seedcorn competition winners.

4.       Putting yourself out there as a startup entrepreneur means you meet some great people and have some incredible experience.

5. Nothing can touch being your own boss and taking control of your own destiny – no matter how terrifying that can be from time to time.

I h  I hope this rather long blog has been useful to someone out there and I’m dedicating it to all the people who helped us when we needed help – you know who you are.  If you have any comments or questions feel free to add them in via the comments section below and I’ll do my best to answer them.  Good luck to all the PS Launchpad projects by the way.  I’m waiting for you guys to connect with me via the usual channels!

Going for business awards – is it worth all the hassle?

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Over the 5 years Learning Pool has been trading we’ve entered a few – won some & lost some – but is it worth the time & effort that it takes?

Like most things in life, the answer is probably “it depends”…which I know isn’t a great deal of help to you if you’re reading this blog to find out.  The thing is that awards cover a huge spectrum.  At one end are the “straightforward” awards – for example, the Deloitte Fast 50 technology awards.  It costs nothing to enter, you don’t have to write an essay or deliver a presentation, you don’t have to be a Deloitte customer, it’s up to you if you want to buy a few more places at the Awards dinner but there’s no pressure.  All you have to do is make your published financial information available and a calculation is performed of your revenue growth over a defined period of time.  The 50 companies with the highest growth are then ranked with the winner being the company whose revenue has grown by the biggest percentage.  It’s black & white and the numbers don’t lie.  We like this one & have been the Rising Star winners in Ireland for the past two years.

At the other end of the spectrum are the much less clear & transparent “industry” awards such as those run by e-Learning Age magazine.  I don’t know this is the case but from our perspective winning appears to be all about who you know in the industry and how much money you’ve spent with the magazine in sponsorship and advertising – as I say – only my own opinion from Learning Pool’s experience.  We’ve entered twice and although shortlisted each time have won nothing.  The winners are judged behind closed doors by a panel of industry “experts” – most of whom have their own e-learning companies and are therefore in direct competition with many of the entrants.  A more cynical person may conclude that everyone who enters gets shortlisted so as they’ll fork out for a very expensive table at the Awards dinner.  I shouldn’t scoff so – at least our last experience of this farce served to remind us that Learning Pool’s industry is very much the public sector and not e-learning.

Somewhere in the mix lies the business “competitions” – usually for seedcorn monies aimed at new or fast growing start-ups.  These require a detailed business plan, a significant time commitment and a number of presentations over a period of time.  The one & only time Learning Pool entered the Intertrade Ireland seedcorn competition (in 2008) we did well and won the Northern Ireland heat (we’re very proud of our trophy and that’s it in the photograph).  We were pipped to the post by resellers of 3D printers…I’ll say no more but c’est la vie.  This competition is definitely worthwhile for new start-ups, we learned a lot in the process and I would recommend it for any Irish companies thinking about entering.

In the future Learning Pool will continue to enter the Deloitte Fast 50 but we’ll probably be a bit more discerning about other awards and only enter in partnership with our customers to showcase their projects and achievements.

In summary, I don’t know whether entering awards is worth it or not – and I’ll be interested to hear your views on this.  Awards dinners are a fun night out for your team, especially if you win, but weigh up how much time and energy entering will take up and think about whether or not you would be better off, certainly as a start-up business, investing that resource into making sales.