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Nick Nolan

Nick Nolan

3 years ago

In five years, starting a business won't be hip.

More on Entrepreneurship/Creators

Rachel Greenberg

Rachel Greenberg

3 years ago

The Unsettling Fact VC-Backed Entrepreneurs Don't Want You to Know

What they'll do is scarier.

Photo by DESIGNECOLOGIST on Unsplash

My acquaintance recently joined a VC-funded startup. Money, equity, and upside possibilities were nice, but he had a nagging dread.

They just secured a $40M round and are hiring like crazy to prepare for their IPO in two years. All signals pointed to this startup's (a B2B IT business in a stable industry) success, and its equity-holding workers wouldn't pass that up.

Five months after starting the work, my friend struggled with leaving. We might overlook the awful culture and long hours at the proper price. This price plus the company's fate and survival abilities sent my friend departing in an unpleasant unplanned resignation before jumping on yet another sinking ship.

This affects founders. This affects VC-backed companies (and all businesses). This affects anyone starting, buying, or running a business.

Here's the under-the-table approach that's draining VC capital, leaving staff terrified (or jobless), founders rattled, and investors upset. How to recognize, solve, and avoid it

The unsettling reality behind door #1

You can't raise money off just your looks, right? If "looks" means your founding team's expertise, then maybe. In my friend's case, the founding team's strong qualifications and track records won over investors before talking figures.

They're hardly the only startup to raise money without a profitable customer acquisition strategy. Another firm raised money for an expensive sleep product because it's eco-friendly. They were off to the races with a few keywords and key players.

Both companies, along with numerous others, elected to invest on product development first. Company A employed all the tech, then courted half their market (they’re a tech marketplace that connects two parties). Company B spent millions on R&D to create a palatable product, then flooded the world with marketing.

My friend is on Company B's financial team, and he's seen where they've gone wrong. It's terrible.

Company A (tech market): Growing? Not quite. To achieve the ambitious expansion they (and their investors) demand, they've poured much of their little capital into salespeople: Cold-calling commission and salary salesmen. Is it working? Considering attrition and companies' dwindling capital, I don't think so.

Company B (green sleep) has been hiring, digital marketing, and opening new stores like crazy. Growing expenses should result in growing revenues and a favorable return on investment; if you grow too rapidly, you may neglect to check that ROI.

Once Company A cut headcount and Company B declared “going concerned”, my friend realized both startups had the same ailment and didn't recognize it.

I shouldn't have to ask a friend to verify a company's cash reserves and profitability to spot a financial problem. It happened anyhow.

The frightening part isn't that investors were willing to invest millions without product-market fit, CAC, or LTV estimates. That's alarming, but not as scary as the fact that startups aren't understanding the problem until VC rounds have dried up.

When they question consultants if their company will be around in 6 months. It’s a red flag. How will they stretch $20M through a 2-year recession with a $3M/month burn rate and no profitability? Alarms go off.

Who's in danger?

In a word, everyone who raised money without a profitable client acquisition strategy or enough resources to ride out dry spells.

Money mismanagement and poor priorities affect every industry (like sinking all your capital into your product, team, or tech, at the expense of probing what customer acquisition really takes and looks like).

This isn't about tech, real estate, or recession-proof luxury products. Fast, cheap, easy money flows into flashy-looking teams with buzzwords, trending industries, and attractive credentials.

If these companies can't show progress or get a profitable CAC, they can't raise more money. They die if they can't raise more money (or slash headcount and find shoestring budget solutions until they solve the real problem).

The kiss of death (and how to avoid it)

If you're running a startup and think raising VC is the answer, pause and evaluate. Do you need the money now?

I'm not saying VC is terrible or has no role. Founders have used it as a Band-Aid for larger, pervasive problems. Venture cash isn't a crutch for recruiting consumers profitably; it's rocket fuel to get you what and who you need.

Pay-to-play isn't a way to throw money at the wall and hope for a return. Pay-to-play works until you run out of money, and if you haven't mastered client acquisition, your cash will diminish quickly.

How can you avoid this bottomless pit? Tips:

  • Understand your burn rate

  • Keep an eye on your growth or profitability.

  • Analyze each and every marketing channel and initiative.

  • Make lucrative customer acquisition strategies and satisfied customers your top two priorities. not brand-new products. not stellar hires. avoid the fundraising rollercoaster to save time. If you succeed in these two tasks, investors will approach you with their thirsty offers rather than the other way around, and your cash reserves won't diminish as a result.

Not as much as your grandfather

My family friend always justified expensive, impractical expenditures by saying it was only monopoly money. In business, startups, and especially with money from investors expecting a return, that's not true.

More founders could understand that there isn't always another round if they viewed VC money as their own limited pool. When the well runs dry, you must refill it or save the day.

Venture financing isn't your grandpa's money. A discerning investor has entrusted you with dry powder in the hope that you'll use it wisely, strategically, and thoughtfully. Use it well.

Pat Vieljeux

Pat Vieljeux

3 years ago

The three-year business plan is obsolete for startups.

If asked, run.

Austin Distel — Unsplash

An entrepreneur asked me about her pitch deck. A Platform as a Service (PaaS).

She told me she hadn't done her 5-year forecasts but would soon.

I said, Don't bother. I added "time-wasting."

“I've been asked”, she said.

“Who asked?”

“a VC”

“5-year forecast?”

“Yes”

“Get another VC. If he asks, it's because he doesn't understand your solution or to waste your time.”

Some VCs are lagging. They're still using steam engines.

10-years ago, 5-year forecasts were requested.

Since then, we've adopted a 3-year plan.

But It's outdated.

Max one year.

What has happened?

Revolutionary technology. NO-CODE.

Revolution's consequences?

Product viability tests are shorter. Hugely. SaaS and PaaS.

Let me explain:

  • Building a minimum viable product (MVP) that works only takes a few months.

  • 1 to 2 months for practical testing.

  • Your company plan can be validated or rejected in 4 months as a consequence.

After validation, you can ask for VC money. Even while a prototype can generate revenue, you may not require any.

Good VCs won't ask for a 3-year business plan in that instance.

One-year, though.

If you want, establish a three-year plan, but realize that the second year will be different.

You may have changed your business model by then.

A VC isn't interested in a three-year business plan because your solution may change.

Your ability to create revenue will be key.

  • But also, to pivot.

  • They will be interested in your value proposition.

  • They will want to know what differentiates you from other competitors and why people will buy your product over another.

  • What will interest them is your resilience, your ability to bounce back.

  • Not to mention your mindset. The fact that you won’t get discouraged at the slightest setback.

  • The grit you have when facing adversity, as challenges will surely mark your journey.

  • The authenticity of your approach. They’ll want to know that you’re not just in it for the money, let alone to show off.

  • The fact that you put your guts into it and that you are passionate about it. Because entrepreneurship is a leap of faith, a leap into the void.

  • They’ll want to make sure you are prepared for it because it’s not going to be a walk in the park.

  • They’ll want to know your background and why you got into it.

  • They’ll also want to know your family history.

  • And what you’re like in real life.

So a 5-year plan…. You can bet they won’t give a damn. Like their first pair of shoes.

Eve Arnold

Eve Arnold

3 years ago

Your Ideal Position As a Part-Time Creator

Inspired by someone I never met

Photo by Nubelson Fernandes

Inspiration is good and bad.

Paul Jarvis inspires me. He's a web person and writer who created his own category by being himself.

Paul said no thank you when everyone else was developing, building, and assuming greater responsibilities. This isn't success. He rewrote the rules. Working for himself, expanding at his own speed, and doing what he loves were his definitions of success.

Play with a problem that you have

The biggest problem can be not recognizing a problem.

Acceptance without question is deception. When you don't push limits, you forget how. You start thinking everything must be as it is.

For example: working. Paul worked a 9-5 agency work with little autonomy. He questioned whether the 9-5 was a way to live, not the way.

Another option existed. So he chipped away at how to live in this new environment.

Don't simply jump

Internet writers tell people considering quitting 9-5 to just quit. To throw in the towel. To do what you like.

The advice is harmful, despite the good intentions. People think quitting is hard. Like courage is the issue. Like handing your boss a resignation letter.

Nope. The tough part comes after. It’s easy to jump. Landing is difficult.

The landing

Paul didn't quit. Intelligent individuals don't. Smart folks focus on landing. They imagine life after 9-5.

Paul had been a web developer for a long time, had solid clients, and was respected. Hence if he pushed the limits and discovered another route, he had the potential to execute.

Working on the side

Society loves polarization. It’s left or right. Either way. Or chaos. It's 9-5 or entrepreneurship.

But like Paul, you can stretch polarization's limits. In-between exists.

You can work a 9-5 and side jobs (as I do). A mix of your favorites. The 9-5's stability and creativity. Fire and routine.

Remember you can't have everything but anything. You can create and work part-time.

My hybrid lifestyle

Not selling books doesn't destroy my world. My globe keeps spinning if my new business fails or if people don't like my Tweets. Unhappy algorithm? Cool. I'm not bothered (okay maybe a little).

The mix gives me the best of both worlds. To create, hone my skill, and grasp big-business basics. I like routine, but I also appreciate spending 4 hours on Saturdays writing.

Some days I adore leaving work at 5 pm and disconnecting. Other days, I adore having a place to write if inspiration strikes during a run or a discussion.

I’m a part-time creator

I’m a part-time creator. No, I'm not trying to quit. I don't work 5 pm - 2 am on the side. No, I'm not at $10,000 MRR.

I work part-time but enjoy my 9-5. My 9-5 has goodies. My side job as well.

It combines both to meet my lifestyle. I'm satisfied.

Join the Part-time Creators Club for free here. I’ll send you tips to enhance your creative game.

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Michael Salim

Michael Salim

3 years ago

300 Signups, 1 Landing Page, 0 Products

I placed a link on HackerNews and got 300 signups in a week. This post explains what happened.

Product Concept

The product is DbSchemaLibrary. A library of Database Schema.

I'm not sure where this idea originated from. Very fast. Build fast, fail fast, test many ideas, and one will be a hit. I tried it. Let's try it anyway, even though it'll probably fail. I finished The Lean Startup book and wanted to use it.

Database job bores me. Important! I get drowsy working on it. Someone must do it. I remember this happening once. I needed examples at the time. Something similar to Recall (my other project) that I can copy — or at least use as a reference.

Frequently googled. Many tabs open. The results were useless. I raised my hand and agreed to construct the database myself.

It resurfaced. I decided to do something.

Due Diligence

Lean Startup emphasizes validated learning. Everything the startup does should result in learning. I may build something nobody wants otherwise. That's what happened to Recall.

So, I wrote a business plan document. This happens before I code. What am I solving? What is my proposed solution? What is the leap of faith between the problem and solution? Who would be my target audience?

My note:

Note of the exact problem and solutions I’m trying to solve

In my previous project, I did the opposite!

I wrote my expectations after reading the book's advice.

“Failure is a prerequisite to learning. The problem with the notion of shipping a product and then seeing what happens is that you are guaranteed to succeed — at seeing what happens.” — The Lean Startup book

These are successful metrics. If I don't reach them, I'll drop the idea and try another. I didn't understand numbers then. Below are guesses. But it’s a start!

Metrics I set before starting anything

I then wrote the project's What and Why. I'll use this everywhere. Before, I wrote a different pitch each time. I thought certain words would be better. I felt the audience might want something unusual.

Occasionally, this works. I'm unsure if it's a good idea. No stats, just my writing-time opinion. Writing every time is time-consuming and sometimes hazardous. Having a copy saved me duplication.

I can measure and learn from performance.

Copy of the product’s What and Why’s

Last, I identified communities that might demand the product. This became an exercise in creativity.

List of potential marketing channels

The MVP

So now it’s time to build.

A MVP can test my assumptions. Business may learn from it. Not low-quality. We should learn from the tiniest thing.

I like the example of how Dropbox did theirs. They assumed that if the product works, people will utilize it. How can this be tested without a quality product? They made a movie demonstrating the software's functionality. Who knows how much functionality existed?

So I tested my biggest assumption. Users want schema references. How can I test if users want to reference another schema? I'd love this. Recall taught me that wanting something doesn't mean others do.

I made an email-collection landing page. Describe it briefly. Reference library. Each email sender wants a reference. They're interested in the product. Few other reasons exist.

Header and footer were skipped. No name or logo. DbSchemaLibrary is a name I thought of after the fact. 5-minute logo. I expected a flop. Recall has no users after months of labor. What could happen to a 2-day project?

I didn't compromise learning validation. How many visitors sign up? To draw a conclusion, I must track these results.

Landing page

Posting Time

Now that the job is done, gauge interest. The next morning, I posted on all my channels. I didn't want to be spammy, therefore it required more time.

I made sure each channel had at least one fan of this product. I also answer people's inquiries in the channel.

My list stinks. Several channels wouldn't work. The product's target market isn't there. Posting there would waste our time. This taught me to create marketing channels depending on my persona.

Statistics! What actually happened

My favorite part! 23 channels received the link.

Results across the marketing channels

I stopped posting to Discord despite its high conversion rate. I eliminated some channels because they didn't fit. According to the numbers, some users like it. Most users think it's spam.

I was skeptical. And 12 people viewed it.

I didn't expect much attention on a startup subreddit. I'll likely examine Reddit further in the future. As I have enough info, I didn't post much. Time for the next validated learning

No comment. The post had few views, therefore the numbers are low.

The targeted people come next.

I'm a Toptal freelancer. There's a member-only Slack channel. Most people can't use this marketing channel, but you should! It's not as spectacular as discord's 27% conversion rate. But I think the users here are better.

I don’t really have a following anywhere so this isn’t something I can leverage.

The best yet. 10% is converted. With more data, I expect to attain a 10% conversion rate from other channels. Stable number.

This number required some work. Did you know that people use many different clients to read HN?

Unknowns

Untrackable views and signups abound. 1136 views and 135 signups are untraceable. It's 11%. I bet much of that came from Hackernews.

Overall Statistics

The 7-day signup-to-visit ratio was 17%. (Hourly data points)

Signup to Views percentageSignup to Views count

First-day percentages were lower, which is noteworthy. Initially, it was little above 10%. The HN post started getting views then.

Percentage of signups to views for the first 2 days

When traffic drops, the number reaches just around 20%. More individuals are interested in the connection. hn.algolia.com sent 2 visitors. This means people are searching and finding my post.

Percentage of signups after the initial traffic

Interesting discoveries

1. HN post struggled till the US woke up.

11am UTC. After an hour, it lost popularity. It seemed over. 7 signups converted 13%. Not amazing, but I would've thought ahead.

After 4pm UTC, traffic grew again. 4pm UTC is 9am PDT. US awakened. 10am PDT saw 512 views.

Signup to views count during the first few hours

2. The product was highlighted in a newsletter.

I found Revue references when gathering data. Newsletter platform. Someone posted the newsletter link. 37 views and 3 registrations.

3. HN numbers are extremely reliable

I don't have a time-lapse graph (yet). The statistics were constant all day.

  • 2717 views later 272 new users, or 10.1%

  • With 293 signups at 2856 views, 10.25%

  • At 306 signups at 2965 views, 10.32%

Learnings

1. My initial estimations were wildly inaccurate

I wrote 30% conversion. Reading some articles, looks like 10% is a good number to aim for.

2. Paying attention to what matters rather than vain metrics

The Lean Startup discourages vanity metrics. Feel-good metrics that don't measure growth or traction. Considering the proportion instead of the total visitors made me realize there was something here.

What’s next?

There are lots of work to do. Data aggregation, display, website development, marketing, legal issues. Fun! It's satisfying to solve an issue rather than investigate its cause.

In the meantime, I’ve already written the first project update in another post. Continue reading it if you’d like to know more about the project itself! Shifting from Quantity to Quality — DbSchemaLibrary

Guillaume Dumortier

Guillaume Dumortier

2 years ago

Mastering the Art of Rhetoric: A Guide to Rhetorical Devices in Successful Headlines and Titles

Unleash the power of persuasion and captivate your audience with compelling headlines.

As the old adage goes, "You never get a second chance to make a first impression."

In the world of content creation and social ads, headlines and titles play a critical role in making that first impression.

A well-crafted headline can make the difference between an article being read or ignored, a video being clicked on or bypassed, or a product being purchased or passed over.

To make an impact with your headlines, mastering the art of rhetoric is essential. In this post, we'll explore various rhetorical devices and techniques that can help you create headlines that captivate your audience and drive engagement.


tl;dr : Headline Magician will help you craft the ultimate headline titles powered by rhetoric devices

No alt text provided for this image

Example with a high-end luxury organic zero-waste skincare brand


✍️ The Power of Alliteration

Alliteration is the repetition of the same consonant sound at the beginning of words in close proximity. This rhetorical device lends itself well to headlines, as it creates a memorable, rhythmic quality that can catch a reader's attention.

By using alliteration, you can make your headlines more engaging and easier to remember.

Examples:

"Crafting Compelling Content: A Comprehensive Course"

"Mastering the Art of Memorable Marketing"


🔁 The Appeal of Anaphora

Anaphora is the repetition of a word or phrase at the beginning of successive clauses. This rhetorical device emphasizes a particular idea or theme, making it more memorable and persuasive.

In headlines, anaphora can be used to create a sense of unity and coherence, which can draw readers in and pique their interest.

Examples:

"Create, Curate, Captivate: Your Guide to Social Media Success"

"Innovation, Inspiration, and Insight: The Future of AI"


🔄 The Intrigue of Inversion

Inversion is a rhetorical device where the normal order of words is reversed, often to create an emphasis or achieve a specific effect.

In headlines, inversion can generate curiosity and surprise, compelling readers to explore further.

Examples:

"Beneath the Surface: A Deep Dive into Ocean Conservation"

"Beyond the Stars: The Quest for Extraterrestrial Life"


⚖️ The Persuasive Power of Parallelism

Parallelism is a rhetorical device that involves using similar grammatical structures or patterns to create a sense of balance and symmetry.

In headlines, parallelism can make your message more memorable and impactful, as it creates a pleasing rhythm and flow that can resonate with readers.

Examples:

"Eat Well, Live Well, Be Well: The Ultimate Guide to Wellness"

"Learn, Lead, and Launch: A Blueprint for Entrepreneurial Success"


⏭️ The Emphasis of Ellipsis

Ellipsis is the omission of words, typically indicated by three periods (...), which suggests that there is more to the story.

In headlines, ellipses can create a sense of mystery and intrigue, enticing readers to click and discover what lies behind the headline.

Examples:

"The Secret to Success... Revealed"

"Unlocking the Power of Your Mind... A Step-by-Step Guide"


🎭 The Drama of Hyperbole

Hyperbole is a rhetorical device that involves exaggeration for emphasis or effect.

In headlines, hyperbole can grab the reader's attention by making bold, provocative claims that stand out from the competition. Be cautious with hyperbole, however, as overuse or excessive exaggeration can damage your credibility.

Examples:

"The Ultimate Guide to Mastering Any Skill in Record Time"

"Discover the Revolutionary Technique That Will Transform Your Life"


❓The Curiosity of Questions

Posing questions in your headlines can be an effective way to pique the reader's curiosity and encourage engagement.

Questions compel the reader to seek answers, making them more likely to click on your content. Additionally, questions can create a sense of connection between the content creator and the audience, fostering a sense of dialogue and discussion.

Examples:

"Are You Making These Common Mistakes in Your Marketing Strategy?"

"What's the Secret to Unlocking Your Creative Potential?"


💥 The Impact of Imperatives

Imperatives are commands or instructions that urge the reader to take action. By using imperatives in your headlines, you can create a sense of urgency and importance, making your content more compelling and actionable.

Examples:

"Master Your Time Management Skills Today"

"Transform Your Business with These Innovative Strategies"


💢 The Emotion of Exclamations

Exclamations are powerful rhetorical devices that can evoke strong emotions and convey a sense of excitement or urgency.

Including exclamations in your headlines can make them more attention-grabbing and shareable, increasing the chances of your content being read and circulated.

Examples:

"Unlock Your True Potential: Find Your Passion and Thrive!"

"Experience the Adventure of a Lifetime: Travel the World on a Budget!"


🎀 The Effectiveness of Euphemisms

Euphemisms are polite or indirect expressions used in place of harsher, more direct language.

In headlines, euphemisms can make your message more appealing and relatable, helping to soften potentially controversial or sensitive topics.

Examples:

"Navigating the Challenges of Modern Parenting"

"Redefining Success in a Fast-Paced World"


⚡Antithesis: The Power of Opposites

Antithesis involves placing two opposite words side-by-side, emphasizing their contrasts. This device can create a sense of tension and intrigue in headlines.

Examples:

"Once a day. Every day"

"Soft on skin. Kill germs"

"Mega power. Mini size."

To utilize antithesis, identify two opposing concepts related to your content and present them in a balanced manner.


🎨 Scesis Onomaton: The Art of Verbless Copy

Scesis onomaton is a rhetorical device that involves writing verbless copy, which quickens the pace and adds emphasis.

Example:

"7 days. 7 dollars. Full access."

To use scesis onomaton, remove verbs and focus on the essential elements of your headline.


🌟 Polyptoton: The Charm of Shared Roots

Polyptoton is the repeated use of words that share the same root, bewitching words into memorable phrases.

Examples:

"Real bread isn't made in factories. It's baked in bakeries"

"Lose your knack for losing things."

To employ polyptoton, identify words with shared roots that are relevant to your content.


✨ Asyndeton: The Elegance of Omission

Asyndeton involves the intentional omission of conjunctions, adding crispness, conviction, and elegance to your headlines.

Examples:

"You, Me, Sushi?"

"All the latte art, none of the environmental impact."

To use asyndeton, eliminate conjunctions and focus on the core message of your headline.


🔮 Tricolon: The Magic of Threes

Tricolon is a rhetorical device that uses the power of three, creating memorable and impactful headlines.

Examples:

"Show it, say it, send it"

"Eat Well, Live Well, Be Well."

To use tricolon, craft a headline with three key elements that emphasize your content's main message.


🔔 Epistrophe: The Chime of Repetition

Epistrophe involves the repetition of words or phrases at the end of successive clauses, adding a chime to your headlines.

Examples:

"Catch it. Bin it. Kill it."

"Joint friendly. Climate friendly. Family friendly."

To employ epistrophe, repeat a key phrase or word at the end of each clause.

The woman

The woman

3 years ago

I received a $2k bribe to replace another developer in an interview

I can't believe they’d even think it works!

Photo by Brett Jordan

Developers are usually interviewed before being hired, right? Every organization wants candidates who meet their needs. But they also want to avoid fraud.

There are cheaters in every field. Only two come to mind for the hiring process:

  • Lying on a resume.

  • Cheating on an online test.

Recently, I observed another one. One of my coworkers invited me to replace another developer during an online interview! I was astonished, but it’s not new.

The specifics

My ex-colleague recently texted me. No one from your former office will ever approach you after a year unless they need something.

Which was the case. My coworker said his wife needed help as a programmer. I was glad someone asked for my help, but I'm still a junior programmer.

Then he informed me his wife was selected for a fantastic job interview. He said he could help her with the online test, but he needed someone to help with the online interview.

Okay, I guess. Preparing for an online interview is beneficial. But then he said she didn't need to be ready. She needed someone to take her place.

I told him it wouldn't work. Every remote online interview I've ever seen required an open camera.

What followed surprised me. She'd ask to turn off the camera, he said.

I asked why.

He told me if an applicant is unwell, the interviewer may consider an off-camera interview. His wife will say she's sick and prefers no camera.

The plan left me speechless. I declined politely. He insisted and promised $2k if she got the job.

I felt insulted and told him if he persisted, I'd inform his office. I was furious. Later, I apologized and told him to stop.

I'm not sure what they did after that

I'm not sure if they found someone or listened to me. They probably didn't. How would she do the job if she even got it?

It's an internship, he said. With great pay, though. What should an intern do?

I suggested she do the interview alone. Even if she failed, she'd gain confidence and valuable experience.

Conclusion

Many interviewees cheat. My profession is vital to me, thus I'd rather improve my abilities and apply honestly. It's part of my identity.

Am I truthful? Most professionals are not. They fabricate their CVs. Often.

When you support interview cheating, you encourage more cheating! When someone cheats, another qualified candidate may not obtain the job.

One day, that could be you or me.