I started a business. It made me want to drink copious quantities, smoke myself into oblivion and hit my head against a brick wall. Instead I wrote a blog.
Site Launch Day: 38
User Count: 60
Going right: Convinced a successful self-professed "Repeat, repeat entrepreneur" of the beauty of my business model.
Going wrong: No additional users yesterday.
Comment: Keep feeling the constant pressure to advertise and come up with the next best thing. Can't wait til referrals system is built properly...
Am working today with a renewed vigor. It's a beautiful day outside and inside I am doing my most favorite thing - excel modeling. Also, I got a whole 7 hours sleep. We are a family that feels vaguely human again. On top of all of that, last night I had a long phone call with a lovely Frenchman. The French I find - when they get it right - are one of the greatest nationalities. Luckily for other nationalities, this is fairly rare.
Living there for 10 years taught me a lot about their culture and their subversive sense of humor. For those of you who don't believe it exists (yes Americans, am talking to you), go watch the film 'Father Christmas is a filthy piece of scum' (own translation) and remember that one of their greatest comedians had a strong chance of winning the presidency. They are also an extremely entrepreneurial people. I think it stems from their strong belief in "la revolution" prompted by an inherent laziness and intolerance of disrespect (NB. FROM others, not TO others).
"The thing about an advisory board" said the lovely Frenchman "is that they may not cost any money themselves, but as soon as they start giving you advice, it will result in you spending more money. In any case, the only point in getting them is to impress investors - which you don't have yet - and when you do get investors, they'll want to give you advice themselves and you'll have a conflict."
The upshot of the conversation was that this lovely Frenchman will be introducing me to some business angels and I am very happily updating my business model to demonstrate our assured success - remember how I said it was sitting in my computer vaults ready to be dusted off? That time is now :)
His Top Five tips in preparation for seeking funding:
1. A power point deck may be necessary unless you have a working demo, concept and idea (like us)
2. Don't be closed to an exit strategy of merger/acquisition; better instead to identify prospective partners and/or collaborations because investors may not be satisfied with dividends
3. You will need an excellent demonstration of financials to convince your investors that you are serious (that's a service we provide so we're very well placed to have it)
4. When you look for funding, it takes time and effort - so you're best off covering your bases with a margin for 2-3 years; that means forecasting at least 5-6 years in your business plan. ROI headed vaguely for 2-3 years also, no one is interested in waiting longer.
5. If you are looking for funding of less than 0.5 M£, talk to Business Angels. Venture Capitalists will hardly be interested in investing this amount of money. Plus Business Angels require less justification (well, we'll see Mr lovely Frenchman. Watch this space).
So Business Angels, if you'd fed up with the non-existent interest rates at the Bank, and got pots of cash hanging around, am looking for £2ooK. It's a fair amount, but certainly not to build a business worth £25 Million in 6 years....(if the excel model says it, well it MUST be true)
Site Launch Day: 39
User Count: 62
Going right: Built financial model from the bottom up using conservative assumptions; exceeded all expectations of EV and profit. Excellent.
Going wrong: Listening to Bill Withers...how can anything be wrong? ...it's gonna be...a lovely day!
Comment: Kick off of new dev stage ...check, financial model looking good ...check....launched YouTube contest for beta testers...check...
Yesterday I had my first equivalent of therapy for professionals. Yes that's right. My name is Louisa and I am a coached woman. It was a freebie offered by another of my contacts (the word FREE works miracles on me..."Free bits of cheese on the deli?" Oh ok, not hungry but it's free..."Free worming tablets for your dog?" Oh ok, don't have a dog but sure I can probably use them...they're like diet pills right?).
The first thing you have to know about this coach is that just her picture makes you smile. Not because she's a weirdo or anything, but because she herself is very smiley. It makes for a lovely start.
"So what do you know about coaching?" she asks. Bang. Lay it on the table. Let's talk about what I don't know.
"It's like psychoanalysis for business?" I venture tentatively. "I've never had any coaching, but I definitely like therapy and had some - who wouldn't like it when you get to talk about yourself for an hour or two. Although am not quite sure where personal and professional separates because I bring so much of myself to my business."
"A therapist helps someone who is not able to function because something in their past is holding them back." she responds confidently. "Coaching helps someone go from good to great" or something to that effect. I am not listening because I am focused on the first part of her response. Hang on, did I not just tell her I liked therapy and had had some? And did she respond by telling me that I hadn't been functioning? That's not MY definition. Hackles raised after one sentence, but I like her so I try to calm down. And remember it's free. Unfortunately just then, by accident or subconscious design I put the phone down.
After another false start, she continues to explain what she does "I recognize that women are unique because they have so much passion. But many women get caught up in self doubt, so even though they've taken the enormous step of creating their own business they still suffer from a lack of confidence."
I'm listening and thinking "If you know that all women are unique, how is it that you are pitching this to one who doesn't suffer from a lack of confidence?" The thing is - even if I did suffer from a lack of confidence surely it is one of those traits that may be personal - and I certainly don't appreciate the inference from someone I have talked to for 5 minutes that I suffer from it. As a matter of fact self confidence is not a universal trait in my book. I have every confidence in my business acumen and model, but not so much in my personal appearance. I have a big nose and despite all possible attempts at Cyrano-type self belief, I still have little fantasies about rhinoplasty.
She says "I come from a marketing background. Marketing for many women is a reflection of their own inner landscape so we do a lot of work there to make sure you are really able to put yourself out there."
I wonder whether she really knows how much I put myself out there and whether she has read this blog which is full of uncomfortable revelations and out-there-ness. Also, I come from a finance background. Marketeers were never my friends.
By the end of the session - and it's been a challenging one for both of us - she freely admits that her coaching services are perhaps for women whose businesses and financial plans are a little smaller scale. But she has succeeded in coaching me and reminding me of several lessons which after all as the purpose. I'm glad that she has taken learnings from our session too.
1. Women in general care more about their businesses than men. When you are seeking to align yourself with a woman, passion for what you do is the name of the game.
2. You should always have a scout round the background of the person you are talking to in business because people appreciate that you are pitching at an appropriate level.
3. Don't assume. Her assumption was that I was interested in getting better marketing skills, whereas I couldn't care less. I am interested in getting more PR, but am very happy to leave it to other professionals.
Nevertheless, having said that - she will get a repeat customer in me in future, because it's those conversations which stimulate conflict that push you to get the best out of yourself. She was adaptable, considerate and friendly. I've said it before and I'll say it again. When you get along with someone, you're willing to put up with a lot more. Even in business.
If you want a peek at the business that's driving me insane you can click here.