Kelly Kim

Bob and Pat talk with Twylah Cofounder Kelly Kim about Twylah, a web service that turns your tweets into an attractive, SEO-optimized web page.

We talk with Kelly about Twylah’s approach and value proposition, living in Twitter’s world, what it’s like to be married to your cofounder and the challenges and issues women founders confront.

Thinking about doing a MicroConsult with Bob Walsh? Details at 47hats.com. Or, send me your startup question via AskBob, and let’s get a conversation going!

Play it now!

Download Show #136 here: Show #136 Or if you prefer, Subscribe to the podcast in Apple iTunes.

Bob Walsh is at 47Hats, @bobwalsh or you can email him at bob.walsh@47hats.com. Patrick Foley blogs at PatrickFoley.com, is @patrickfoley or you can email him at patrick.foley@microsoft.com.

URLs mentioned/relevant to this show:

• JOBS bill passes – New era for startup funding starts now.
• Twylah.com.
• Twylah Reviews.
• And of course on Twitter at @Twylah.
• Buffer.

Bo Fishback

Bob and Pat talk with Zaarly CoFounder Bo Fishback about this buyer-driven hyperlocal online marketplace and how he went from the front row of a Startup Weekend to $15.1 million in startup funding.

Zaarly, where you post what you want and the price you pay and what services you or your company offer, has over 300,000 users and is adding 50,000-100,000 new users a month.

We talk to Bo about his amazing rocket ride so far, the power of social proof raising equity funding, the real secret of how Zaarly got funded so fast and so well and making deposits in the Karma Bank. Interestingly enough, 85% of Zaarly’s transactions are made from mobile devices.

Thinking about doing a MicroConsult with Bob Walsh? Stop by 47hats.com and let’s chat a bit about your startup as a first step. I hold free “online office hours” Monday-Friday 4-6pm PST UTC -8. Details at 47hats.com. Or, send me your startup question via AskBob, and let’s get a conversation going!

Play it now!

Download Show #135 here: Show #135 Or if you prefer, Subscribe to the podcast in Apple iTunes.

Bob Walsh is at 47Hats, @bobwalsh or you can email him at bob.walsh@47hats.com. Patrick Foley blogs at PatrickFoley.com, is @patrickfoley or you can email him at patrick.foley@microsoft.com.

URLs mentioned/relevant to this show:

• Zaarly.com.
• The Zaarly Blog.
• The Kauffman Foundation.
• KISSmetrics, Mixpanel and Geckoboard.

Steve Blank

Bob and Pat talk with Stanford professor Steve Blank about the theory and methodology of Customer Discovery, an approach that is redefining how founders build startups in Silicon Valley and beyond.

Prof. Blank lays our what makes Customer Discovery work, how do you know you’re doing it right, why it’s an art not a science, his Lean Launchpad online class, and much more.

After founding 8 startups, Prof. Blank “retired” to teach entrepreneurship Stanford University, UC Berkeley and Columbia University, wrote the highly-regarded book, “Four Steps to the Epiphany” and is widely considered to be one of the key thinkers of the Startup economy.

During the interview, we also discussed at length his brand-new and highly anticipated book, The Startup Owners Manual.

This particularly awesome interview was made possible by Michigan Lean Startup Conference slated for May 17th – If you can get there, you should be there.

This time around, Bob and Pat talk briefly after the interview about Customer Discovery and why this stuff is absolutely key if your startup is going to succeed.

Thinking about doing a MicroConsult with Bob Walsh? Stop by 47hats.com and let’s chat a bit about your startup as a first step. I hold free “online office hours” Monday-Friday 4-6pm PST UTC -8. Details at 47hats.com. Or, send me your startup question via AskBob, and let’s get a conversation going!

Play it now!

Download Show #134 here: Show #134 Or if you prefer, Subscribe to the podcast in Apple iTunes.

Bob Walsh is at 47Hats, @bobwalsh or you can email him at bob.walsh@47hats.com. Patrick Foley blogs at PatrickFoley.com, is @patrickfoley or you can email him at patrick.foley@microsoft.com.

URLs mentioned/relevant to this show:

• Steve Blank’s web site.
• Order in the U.S. the Startup Owner’s Manual (now shipping).
• Order outside of the U.S. the Startup Owner’s Manual.
• Articles about Steve Blanks in the New York Times: here, here and here.
• Presentations by Steve Blank on SlideShare.
• About the Lean Launchpad Class and here.
• The Michigan Lean Startup Conference 2012 on May 17th.

Pat’s notes on the show:

• Customer Development: There are no facts inside your building, so get the heck outside. Seems obvious when you think about it
• Key Mistake of the past: We were treating startups as small versions of large companies
•  — Big companies are about execution
•  — Startups are searching
•  — Distinction between searching and execution is huge – and you have to get out of the building to search
• I’m thrilled that people are using at all, and I’m thrilled Eric Ries has spread the word so effectively
• Customer Development goes in phases – it’s really hard
• It’s not just data and insight – it’s an art
• Customer Development is a lot harder than it sounds in the book
• You know you’re doing CustDev right when you start to realize that some of your cherished hypotheses are wrong. It’s both depressing and exhilarating
• Entrepreneurs have to be driven and passionate while still having that voice in the back of your head saying “maybe you’re wrong”
• Pivot vs Iteration
•  — Pivot – Fundamental change in the business model (e.g, going from freemium to some other model)
•  — Iteration – a step-wise change in some element of the business model (e.g., changing the specific price)
• Entrepreneurship is still an art – following a specific book or methodology doesn’t guarantee success – it just increases the odds
• How many people to talk to? Depends on size. If it’s a million-dollar enterprise software package, 5 customers might be enough of a signal to start scaling. If it’s an Internet business, you need a lot more than 5
• You’re trying to get enough data to show patterns – do you have enough information to bet your kid’s college fund on?
• Another important idea – is the market large enough so that you can scale the business if everything works?
• Do you have a local maximum or a global maximum – have you discovered 50 customers out of a possible 300 or out of a possible 300,000?
• Does your product solve a need?
• The purpose of your customers is not to buy your product – the purpose of your company is to solve a customer’s problem or need. Your job is figuring out what that product/market fit is.
• The real problem on the web is getting customers. Customer acquisition. Getting people to come to your site is step 1. Activating them is step 2. If you don’t build value, you can get people to your site, but they won’t activate, they won’t buy.
• The Startup Owner’s Manual goes through this process step-by-step with your customers
• Going straight to the solution instead of focusing on the problem is a common problem for entrepreneurs. Unfortunately, 99% of the time, you’re wrong – we’re trying to encourage a process of maintaining that drive and vision while nurturing the little voice telling you that you might be wrong.
• Entrepreneurs are “crazy” people who are driven to work through this process. When we fail, we just pick ourselves up and try again
• There are people who succeed without doing these things, but there’s a lot of luck involved
• This is not a checklist that will guarantee your success. It’s a method that will help you reduce the stupid mistakes you make
• These concepts tend not to resonate with 20-somethings who “don’t need no stinkin manual.” Fine – go do it. This is for the other 99.99% of us.
• These concepts also tend not to stick with corporate execs who say, “we need to be entrepreneurial.” You can’t just plug this stuff in. You can’t assign it to somebody.
• Entrepreneurship is not a job. It’s a calling. It’s like volunteering for the Marine Corps.
• We used to have this thing called a telephone … calling people you don’t know is scary. Customer Discovery is like asking your first date. It’s awkward. It takes time to learn how to make eyeball-to-eyeball contact
• You can’t just do this online. You have to get the nuances that come with being in person
• Correlate your big survey data with interviews where you “see their eyeballs dilate in person.”
• What do you show people during Customer Discovery? This differs wildly in the physical vs digital channels. If you’re building something physical, you have to build a prototype. The tactile response to a physical product changes how your mind works. You could probably right a PhD thesis on this. It doesn’t have to be functional – it just has to be physical.
• For a website, it can be low-fidelity or high-fidelity. On the low side, you could have mockups, wireframes, etc. A high-fidelity MVP could have polished features, but it doesn’t have to be complete. It should walk people down the main path in a fairly polished way. The Startup Owners Manual goes down this path step-by-step
• The beginning of Customer Develop is not about getting orders or users. It’s about understanding whether my core hypothesis is on the same planet of what customers are thinking about.
• Lean Launchpad is a new class based on The Startup Owner’s Manual (and leveraging concepts from Business Model Generation, Lean Startup, and others – these form the basis of an entrepreneurial “education stack”) – it will be about 10 courses, and anyone can take it from anywhere in the world! There will be tie-ins with programs like Startup Weekend so that you can complete it in teams.
• You could go to business school and learn how to be a great corporate executive. It’s only been in the last 3-5 years the creation of a toolset for entrepreneurs
• When building a second product, ask yourself – is this a product line extension or a new customer segment? If it’s a new customer segment, then you have to invest in all new learning about your channel and customer segment. If you come up with a new product that has new customers, you have to do all that stuff over again.
• For example, IBM didn’t use their mainframe market to sell PCs. Fairchild Semiconductor was selling transistors like crazy when they came up with the integrated circuit, a groundbreaking discovery. Yet when it came out, their VP of Sales delayed the launch because he knew it would hurt their sales of transistors. ICs took a completely different selling model. Developing that would cost a lot of money. They tried to sell it with their existing force, and it didn’t work
• If you have a new product for new customers, you need a new sales force.
• If you want proof that this stuff works, you’re not going to get it. There are no numbers on this stuff. If this doesn’t make sense to you, then don’t do it. I’m not recruiting anybody, and I’m not selling anything. I’m retired. If it’s not obvious to you, then don’t do it.
• About the book – it’s heavy. It’s big. There is a web version coming out eventually, but the print version is the MVP. Also, it’s not a novel – it’s a reference. You’re startup is not likely to unfold just like the book. All we can do is give you guidelines. If you have a business where your biggest problem is figuring out where to put the stacks of money, then throw this book off the roof! This is a book for when you’re confused. It’s not the bible. I suspect this is just the beginning of a ton of books for helping entrepreneurs succeed

Sailesh Ramasray

Bob and Pat talk with BizFusion Founder Sailesh Ramasray about his online accounting solution geared towards small businesses with inventories.

Sailesh, a serial startup founder in the Netherlands, explains how they differentiate their accounting web service for physical product-centric companies from their competitors, and tier pricing through different subscription plans.

We talk with Sailesh about the Dutch Startup Scene, going after a series of national markets, advice for European startups and more.

Also, during the first 13:52 we talk about Bob’s newest project, FreelancerCashFlow.com, a cash flow web/mobile app for freelancers and the self-employed.

Thinking about doing a MicroConsult with Bob Walsh? Stop by 47hats.com and let’s chat a bit about your startup as a first step. I hold free “online office hours” Monday-Friday 6:30am-7:30am and 4-6pm PST UTC -8. Details at 47hats.com. Or, send me your startup question via AskBob, and let’s get a conversation going! Play it now!

Download Show #133 here: Show #133 Or if you prefer, Subscribe to the podcast in Apple iTunes.

Bob Walsh is at 47Hats, @bobwalsh or you can email him at bob.walsh@47hats.com. Patrick Foley blogs at PatrickFoley.com, is @patrickfoley or you can email him at patrick.foley@microsoft.com.

URLs mentioned/relevant to this show:

• PlaceKitten.
• Bootstrap, from Twitter (now even more awesome 2.0!).
• 7 Free Twitter Bootstrap Themes for WordPress.
• FreelancerCashFlow – sign up now for a special launch offer!
• Happy Birthday! Noah Kagan was born on 2/17/1982, so says Skype.
• BizFusion
• BizFusion Blog
• The other Dutch Startup Interview: Show #121: Marc Köhlbrugge, founder Betali.st

David Feinleib

Bob and Pat talk with David Feinleib – VC, startup mentor and author of Why Startups Fail: And How Yours Can Succeed.

David’s experience as General Partner with a $2B VC firm, starting 4 startups (two acquired) and now author of a must-read book for founders gave us plenty to talk about.

We discussed finding the right Big, the one key metric that stands above all others, jumping the VC Chasm, why you should start with a 30-second marketing video, why you need to be very clear about what your building, taking the “sales learning curve” at a proper time and speed, and more.

Thinking about doing a MicroConsult with Bob Walsh? Stop by 47hats.com and let’s chat a bit about your startup as a first step. I hold free “online office hours” Monday-Friday 6:30am-7:30am and 4-6pm PST UTC -8. Details at 47hats.com. Or, send me your startup question via AskBob, and let’s get a conversation going!

Play it now!

Download Show #131 here: Show #131 Or if you prefer, Subscribe to the podcast in Apple iTunes.

Bob Walsh is at 47Hats, @bobwalsh or you can email him at bob.walsh@47hats.com.

Patrick Foley blogs at PatrickFoley.com, is @patrickfoley or you can email him at patrick.foley@microsoft.com.

URLs mentioned/relevant to this show:

• AskBob.
• New York Times: How the U.S. Lost Out on iPhone Work.
• Joel Spolsky: Two things about SOPA/PIPA and then I’ll shut up .
• Brad Feld: A Few Last Thoughts On SOPA/PIPA From Last Week.
• David’s Blog.
• David is @vcdave on Twitter.
• Why Startups Fail: And How Yours Can Succeed at Amazon.
• Public video examples of what Dave meant by 30 second marketing video: here and here.

Notes from Pat:
· Sorry for some of our audio difficulties in the interview

· If you want to jump right to the interview, it starts at 12:16

· Biggest mistake is not doing it!
o Take the risk sooner because it doesn’t get easier
· Mentoring should be valuable to both parties
· DIY accelerator – when Dave finds an entrepreneur
· Great exercise is to make the 30-second marketing video before building the product.
o Why is anyone going to remember this?
o What does my product do?
o How am I going to get it out there so people care about it?
o Works equally well for consumer, business, whatever
o One of the toughest but most valuable exercises to recommend
o People love video – it’s quick, it’s fun, and it’s a forcing function
· Q: How to reconcile need to focus with need to go after big market?
· A: They’re different things
o Go after a big market because this is really hard – sometimes it’s precisely because there’s not much market to go after
o Focus comes down to being very clear about what your building, how you are going to get it to market, and what are the really core pieces you have to build to get it to market
· What’s the ONE thing you’re going to do better than anyone else
· Q: Do you prefer horizontal or vertical markets?
· A: There’s many different ways to go after a market. Horizontal vs vertical is often a question of timing. You might start with one and more to the other
· Your idea is a “big idea” if it’s going to reach a large number of businesses or consumers – it doesn’t have to be particularly fancy, but it needs to make a difference in a lot of people’s lives
· Q: How big does it have to be to get venture capital?
· A: It’s one thing to say it could be used by a lot of people, but HOW are you going to reach those millions of people or thousands of businesses.
o That’s what’s usually missing from a pitch – how are you going to take that idea to the next level that could result in a huge outcome
· Q: What degree of uniqueness is required?
· A: Quite often those who are later to market get to benefit from those who came earlier. You gotta have just the right product-market fit to be the one who hits it out of the park
· Often someone will have a great idea but won’t understand the market itself. Getting adoption is about building a product people want, but it’s also about doing the basics of getting the word out and understanding users of your product
· The kind of business you want to build is a very personal decision. Some people enjoy smaller or “lifestyle” businesses. Others are more interested in businesses that lots and lots of people will use.
· The “sales learning curve” – don’t try to accelerate sales before you’re ready
· “net promoter score” – will customers refer you to others?
· Cohort analysis is important, but you need to have enough customers to make it work. Ultimately, you have to test what works
· Q: how do you jump the “VC chasm”
· A: A mentor is really helpful … a lot of the work is PRACTICING your pitch and responses to likely questions. You also have to be genuinely enthusiastic about what you’re doing. Finally, you have to understand the profile of your investors – present them a story for why your company is going to provide them their desired outcome.
· Q: How do angel investors fit in?
· A: It depends on the angel – some are looking for big outcomes, some are not
· Getting VC funding can seem unapproachable but it’s not – if you have a good team, a good idea, and can tell your story well, you can get funding
· Q: Is this still a good time to raise money?
· A: Now is a great time
· Dave is a classical violinist (as is Patrick)

Michael Sliwinski

Bob and Pat talk with Michael Sliwinski, founder of GTD productivity platform Nozbe. Michael shares with us how he grew Nozbe from a side project in 2007 to a 9-person company with over 100,000 subscribers.

We cover a range of issues: how to discover, support and grow specific markets, being confident but not overconfident, the fine art of spotting opportunities and acting upon them, how to approach competing with many similar apps, and more.

Pat and I are using Nozbe now to better project manage this podcast, and it’s definitely helping us.

Also, is if you use the promo code STARTUPSUCCESS, you can get an annual Nozbe subscription for 37% off.

Get your startup moving in 2012! Why not do a MicroConsult with Bob Walsh? Instead of hypotheticals and too much information, Bob will work with you for an hour via Skype developing 8 to 10 specific todos that will get your startup in gear. Details at 47hats.com.

Play it now!

Download Show #129 here: Show #129 Or if you prefer, Subscribe to the podcast in Apple iTunes.

Bob Walsh blogs at 47Hats, is on Twitter at http://twitter.com/bobwalsh or you can email him at bob.walsh@47hats.com.

Patrick Foley blogs at PatrickFoley.com, is on Twitter at http://twitter.com/patrickfoley or you can email him at patrick.foley@microsoft.com

URLs mentioned/relevant to this show:

• Nozbe.
• Nozbe iPhone, iPad, Android (new), PC (new beta), Mac (new beta)
• A well done GTD video course: GTD Course.
• promo code STARTUPSUCCESS will get you 37% off a Nozbe annual subscription.

Welcome to 2012!

It’s that time again when Bob and Pat review their predictions for the year past, make a few for 2012, and mull over ways we can make this podcast more valuable to our great listeners.

Tired of being stuck in neutral in your startup? Why not do a MicroConsult with Bob Walsh? Instead of hypotheticals and too much information, Bob will work with you for an hour via Skype developing 8 to 10 specific todos that will get your startup in gear. Details at 47hats.com.

Play it now!

Download Show #128 here: Show #128 Or if you prefer, Subscribe to the podcast in Apple iTunes.

Bob Walsh blogs at 47Hats, is on Twitter at http://twitter.com/bobwalsh or you can email him at bob.walsh@47hats.com.

Patrick Foley blogs at PatrickFoley.com, is on Twitter at http://twitter.com/patrickfoley or you can email him at patrick.foley@microsoft.com

URLs mentioned/relevant to this show:

• ESPN’s Web Site.
• Announcing HTML5 Support in Kindle Format 8.
• Apple TV Complaints 2011.
• Kickstarter project sought $75k, raised $527k: Elevation Dock: The Best Dock For iPhone.

Brad Feld

In this show Bob and Pat talk with tech luminary Brad Feld about one of the most important and least discussed aspects of successful entrepreneurism: how do you build a startup and not burn down your marriage?

In this very candid conversation, Brad shares with us tips, practical techniques, frameworks of communication and insights on how you as an entrepreneur can deal with the unique personal costs, challenges and frustrations your passion bring to the key personal relationships in your life.

Brad, with his wife Amy Batchelor, are gathering material for a book they are co-authoring, “Startup Marriage: Balancing Entrepreneurship And Relationship.”

Whether you’ve been married for years, just dating, or have zero personal life, Brad is an enormously successful early stage investor, startup founder, blogger, and incubator creator: you will want to hear what he has to say.

Want 2012 to be the breakout year for your startup? Why not do a MicroConsult with Bob Walsh? Instead of hypotheticals and too much information, Bob will work with you for an hour via Skype developing 8 to 10 specific todos that will get your startup in gear. Details at 47hats.com.

Play it now!

Download Show #127 here: Show #127 Or if you prefer, Subscribe to the podcast in Apple iTunes.

Bob Walsh blogs at 47Hats, is on Twitter at @bobwalsh or you can email him at bob.walsh@47hats.com.

Patrick Foley blogs at PatrickFoley.com, is on Twitter at @patrickfoley or you can email him at patrick.foley@microsoft.com

Relevant Links:

Brad Feld Thoughts.
Startup Marriage: Balancing Entrepreneurship And Relationship..
About Brad Feld.
Foundry Group.
TechStars.