The Rebound: The Ultimate Guide To Starting A Business After You Have Lost Your Job

The Rebound
The Ultimate Guide to Starting a

Business After You Have Lost Your Job
Feargal Byrne
The Rebound:: LostJobStartBusiness.com
The Rebound: The Ultimate Guide to Starting

a Business After You Have Lost Your Job
Feargal Byrne B.A., M.B.S., M.M.I.I.
2010
LostJobStartBusiness.com
Web’s number one resource for people who have lost

their job and are starting a business.
info | at | LostJobStartBusiness | dot | com
1
Foreword:
Losing your job is a stressful and difficult time in your
life. Your ego has taken a bashing, and your self
confidence is at an all time low. You are starting to
question why you spent all those years at university,
learning a trade or working your way up an
organization's hierarchy.
! It's strange when all you have believed, in the
past, seems to have let you down. Right now, you have
two choices 1) wallow in self pity and 2) do something
about it. Think about it, this is actually an opportunity
for you. The opportunity cost of starting a business has
decreased dramatically.
! You now have the chance to step out of the
worker drone rut that you have been in for so many
years, and step up to the next level. That next level is
moving from being an employee to becoming an
entrepreneur.
! Who is going to save the economy? Who is
going to create jobs? Who will make society better?
The answer is you. As an entrepreneur, you are the true
economic superhero. Be creative, be innovative and
figure out a business model that works in the modern
economy. You have the power. Sitting around and
waiting for others to do something is not enough. You
have got to act. There has never been a better time to
start a business. Costs have come down. Highly skilled
workers who have also lost their jobs in multinationals
are now available to growing start-ups.
! Remember, keep motivated because everyone
needs you to succeed. Even if they don’t know it yet.
You see, start-ups are the true spark for economic
recovery and you hold the spark stick.
Feargal Byrne
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Chapter 1: Change Your Mindset 6
Different Ball Game 6
Employee Mentality Versus Boss Mentality 8
Are You An Entrepreneur? 10
Chapter 2: Tips for Start Up Entrepreneurs 13
Ten Fundamental Tips 13
It's a Marathon 18
Chapter 3: Market Research 20
Cheaper to Just Start 20
It Would Be Cool If... 21
Do Your Research The Practical Way 21
First Things First: Establish a Point of Reference 23
Integrate Your Product Development With Your

Market Research 26
Chapter 4: Business Planning 29
The Business Plan Myth! 29
Why Your Business Plan Should Be a Five Minute

Read 31
Business Plan Layout 32
Don!t Fear The Financials 35
3
New Business Plan Format 38
Chapter 5: Marketing 42
Salespeople Who Work for Free 42
Will People Rave About You? 45
Build a Fan Base 46
The Internet a Start-up!s Best Friend 48
The Marketing Mix Delusion 50
Trade Shows - Are They Worth It? 53
Marketing What Does it Mean for Start-ups 54
The Psychology of Getting Investment 57
Venture Capital Explained 58
Picking an Investor - Do Due Diligence on Them 60
Your Start-up Team 61
Getting On The Radar Of Potential Investors 63
Traction Is The Key To Unlocking The “Series A”

Vault 66
VCs are not the Bad Guys 68
The P/E Ratio 69
Networking and The Advisory Board 71
Potential Investor Meeting 72
Investor Meeting Playing the Traction Card 77
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Changing VC Investment Style 83
Chapter 7: Your Type of Business 85
Build a Business Model that Works in a Recession

85
What to Copy From Established Businesses 86
Entrepreneurs and Warren Buffett 87
Importance Of Cash Rationing 90
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Chapter 1: Change Your Mindset
Different Ball Game

You wake up to the same ringing alarm clock. You
stumble down the same stairs and make the same
coffee. Everything seems the same. On the face of it, it
is. But, behind it all, it’s not. If life were a computer
game the developers have kept the same graphics but
changed the game engine. The first day you become an
entrepreneur is probably the biggest turning point in
your life. It’s probably more important than graduation,
than that job promotion you got five years ago, and if
you’re married, it might be even be more important
than your marriage (don’t tell your spouse I said that, or
they will not allow you to read this blog anymore).
! It’s a whole different world when you step over
the threshold and into the realm of the entrepreneur.
Everything changes. You’re not in the zoo anymore
you’re in the jungle. There are no zoo keepers to help
you now. You have to hunt for yourself, find shelter on
your own, find water. On top of that, you must avoid
being eaten by other wild animals. Yeah life is more
interesting this way but it’s also more perilous. You
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can’t get away with just showing up. You need to be

active and work smart. !
! You are about to embark on the most rewarding
and fulfilling learning experiences life has to offer. It’s
important to enjoy it. Just remember to admit when
you’re wrong. Being wrong is a virtue if you can admit
to it. Then you can move on and do the right thing. You
don’t have a boss that will criticize your mistakes.
Making mistakes is a key process in entrepreneurship.
It’s how winning strategies evolve.
! As an entrepreneur, you don’t have a social
ladder to climb. Internal company politics is out the
window. This is replaced by cold hard fact. I think that
this is really good for creativity. Because, you don’t
waste time running social scenarios through your head
on top of trying to innovate. If what you do works, then
great. If it doesn’t, then back to the drawing board.
! As I have mentioned many times before. It boils
down to the “Right First Time” versus the “Incremental
Improvement” mindset. That’s the underlying game
engine that happens when you become an entrepreneur.
When you get to grips with this. Believe me, the sky is
the limit.
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Employee Mentality Versus Boss Mentality

I have noticed time and time again that when people
who have previously been in employment “go out on
their own” they seem to still carry with them the same
culture as the organization they have left. They wear
the same clothes to work. They have a similar signature
on their email. They still behave as if they are working
for a multinational.
! These are the symptoms of the Employee
Mentality. It’s important to change this mindset and
move into the Boss Mentality. No, I’m not talking
about acting like Bruce Springsteen all the time. I’m
talking about projecting confidence and controlling
your own destiny. I’m talking about being decisive and
accepting failure as the natural process of working out
the best way to do things.
! An important lesson that I have learned is not to
get bogged down in formalities. Formalities and start
up companies do not like each other, they will never get
along and there is no point in trying to make them get
along. Why is this? you ask.
! Well, speed of decision making and flexibility,
in other words lack of formalities are competitive
advantages for a small new business. Don’t deny your
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new business these tools of success just because the

company you worked for had formal processes and
systems for almost everything.
! Remember, the only way to find out if
something will work or not, is to try it out in the real
world. Business in 2010 is different to business in
1999. It’s also different to business in 2006. Business in
2011 will probably be different to business in 2010. It’s
changing and it’s changing fast. You have to be super
flexible. The companies that are laying off workers
right now all have outdated business models and cost
structures that are no longer viable. They can’t adapt.
! The single biggest error that you can make
when starting your business is continuing your
Employee Mentality. You must change this. However,
it’s not easy. You have been living in that environment
for the last number of years. It will take time to change
your mindset. You need to acclimatize. However, it’s
important that you begin to take those incremental steps
towards the Boss Mentality. Now is the time for you to
fulfill your potential by starting to drop the Employee
Mentality and assuming the Boss Mentality.
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Are You An Entrepreneur?

Working for someone is easy. You show up every
morning and do what is expected of you. You get a
paycheck at the end of the month for your efforts.
That’s it. There are benefits, you have the resources of
your organization behind you. The ground work has
been done already. All you need to do is slot into the
system, keep your head down, and work away. Your
social group will be impressed with your job title. You
will fit in just nicely to conversations with new people
you meet that center around where you work. Fantastic.
! For most people this is really attractive. Security
and stability are their priorities. Regular income is what
floats their boat. That’s fine, everybody is entitled to be
happy in their lives. However, for some people the
above is a vision of hell. These people are the dreamers.
Their brains are constantly thinking up new ideas. They
are not afraid to let their imagination sweep them off
their feet. They love the thrill of not knowing where the
next paycheck will come from. They rather be broke
right now with the chance of making millions in future
than having a reasonably respectable salary hitting their
bank account each month. They don’t need to impress
others by talking about the multinational that they work
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for. The are just up for the challenge. Are you one of
these people? Are you an entrepreneur?
! To make a comparison, working for somebody
else is like living in a modern city. You have roads,
running water, communications and electricity. Not to
mention buildings, fast food, public transport, police
and many other things that we all take for granted. On
the other hand, entrepreneurs are the trailblazers who
founded the city. They built the first shelter, organized
the first road, set up the local political system etc.
Everyone who lives in the modern city owes it to the
original founder. Everyone who works for a large
business owes it to the original entrepreneur.
! It’s all well and good saying that you have the
entrepreneurial spirit. Are you prepared to learn the
skills needed to be a trailblazer? You got to be able to
hunt for yourself, find water, build improvised shelter,
navigate without sat-nav. As you can see, it’s a different
skill set than modern living. Likewise entrepreneurship
requires a different skill set than working in a large
organization. You must be prepared to adapt both your
workstyle and your lifestyle when you become an
entrepreneur.
! Here are some questions that if you answer yes
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to them all you can safely say that entrepreneurship is

the path for you.
Are you prepared to live below the poverty line until

your business takes off?
Are you willing to fail ten times to succeed once?
Are you willing for your friends to criticize you and
your business?
Are you willing to argue your case with your spouse
during the difficult start-up period?
Can you cope with 4 hours sleep a night?
Are you prepared for people to reject you and you
business time and time again?
As you can see it's not a walk in the park but the
journey is fun and the rewards are astounding.
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Chapter 2: Tips for Start Up Entrepreneurs
Ten Fundamental Tips

There are a lot of issues that you need to consider when
starting a business. Here are 10 of the most important
ones.
1. Keep Your Cash Burn to a Minimum
You can’t operate like a typical established business. If

there is no need for office space then don’t rent it. Set
up in your garage or living room. Use Skype or another
VOIP provider for your phone service. Use as much
free software as you can such as OpenOffice, Google
Docs etc. Every cost you can eliminate or reduce
increases your chances of success. Look at it like this.
Cash is the oxygen for your business. When there is no
cash your business will die. However, if you reduce the
amount of cash needed, your business can keep living
for longer.
! This gives you scope for failure. You will make
mistakes, so it’s essential that your business keeps
going long enough to learn from them. In other words,
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by keeping your cash burn to a minimum you have

more rolls of the dice.
2. Get Another Job
I know that you want to start a business but hear me

out. You need income to survive. You may have a
redundancy package and some savings but you
shouldn’t eat into these too much right now. A good
idea is to get another job because it will provide you
and your family with income until your business gets
off the ground.
! You are probably concerned that you won’t have
enough time to work on your business. Believe me; you
will have more than enough time to get your business
off the ground. Here are some of the benefits. Because
your time is limited, you will become more productive
in your business time. You will also not make any rash
decisions for your business due to personal financial
pressure.
3. Leverage the Internet
It’s 2010 and traditional marketing methods are losing

their effectiveness. The Internet offers the best value for
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you to promote your business. Do not fall into the trap

of traditional radio, print or TV advertising. It doesn’t
work very well anymore. If you are going to spend
money on advertising, limit it to search engine pay per
click. Remember, the most important part of Internet
marketing is testing and measuring constantly. You will
make incremental improvements that overtime will lead
to healthy results for your business.
! Use sites like YouTube and Squidoo to improve
awareness of both you and your business. Use social
networking to make contacts and participate in
discussions relevant to your business. You must also
start a Blog that is interesting to your target market. The
Internet is the great equalizer for start ups and you can
use it to your advantage.
4. Don’t Jump In at the Deep End
Here is a general rule of thumb. Before you eat the cake

take a small nibble first and see if the cake is nice. By
this, I mean you should try and make some sales before
you formally set up your business. If you get sales or
traction then engage in the formal business set up
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process. If you don’t, then try something else. I call this

organic market research.
5. Make Your Business Plan Simple and

Straightforward
If your business plan can be understood by a 5 year old

then it is good to show investors. Your business plan
should be super user friendly. An ideal business plan
would have a one page cover letter and a PowerPoint
slide deck of 10 – 15 slides with notes if needed. This is
much better than an 80 page thesis that induces a
headache for anyone who reads it. By presenting your
plan in a direct straightforward way you are showing
respect for those who read it. Their time is valuable, so
don’t waste it. Your time is also valuable. You don’t
spend as much time formatting 10-15 PowerPoint slides
as you would proofing and formatting 80 pages of text.
It’s a win win situation.
6. Sign a Shareholders’ / Stockholders’ Agreement
This is massively important. Don’t say I didn’t warn

you!
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7. You Must Self Fund First Before Investors Will

Touch You
Why would anyone invest their money in a venture if

the founder(s) have not put some of their or their
family’s savings in the business? Besides, particularly
in the economic situation we find ourselves in today,
investors want to see traction. You are going to have to
put some of your money and sweat equity on the line
and show positive results before you will get any
external investment.
8.! It’s Vegas Baby!
A lot of the decisions you will make as a business

owner can be best described as educated guesses. Some
will work and some won’t. Business management can
be boiled down to doing more of what works and doing
less of what doesn’t work. It’s of crucial importance
that you monitor each decision you make in order to
determine it’s effectiveness.
9.! Shop Around and Negotiate Down Professional

Fees
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Given the current recession you should definitely try

and squeeze the best value for accounting and legal
advice. Many accounting and legal practices are finding
the recession tough just like everyone else so make sure
you get the best possible price for their services.
10.! Realize That You Probably Won’t be an

Overnight Success
Overnight successes are rare so the chances of your

business becoming one are slim at best. However, if
you aim at making incremental improvements to what
you do, and never give up, you are likely to eventually
succeed. Hard work is the key.
It's a Marathon
Starting up is like running a marathon. It’s not a sprint.
The success of your new business depends on what
happens in the long term. This is critically important to
how you make decisions. It’s always tempting to sprint.
To take the shortest route. To make choices that will
benefit you now but have negative repercussions the
future. Sustainability is key. Investors will recognize if
your decisions can be sustained into the future and
therefore keep producing worthwhile returns.
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! Look, the value of your business is what it can

achieve in the future. This potential is an asset. By
making decisions that benefit your business in the long
term you are building this asset. If you make decisions
that only benefit in the short term, then when it comes
to company valuation you are not going to gain.
Remember, be sensible and avoid temptation. Don’t
corrupt your start-up’s business model for short term
gain.
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Chapter 3: Market Research
Cheaper to Just Start

More than ever, the costs of starting a business are
plummeting. It has reached a stage that the costs of
starting a business are actually less than doing market
research on starting a business. As a result, we have
seen a new type of market research. Now, the most
efficient and accurate form of market research is a
combination of prototyping and early stage testing and
measuring.
! Market research has become a real time decision
making process that aims to constantly improve your
business on various fronts. The key to making your
start-up successful is to achieve word of mouth
amplified by the Internet. Achieving this is a process
that involves constant evolution of your product and
marketing. You cannot achieve this through traditional
marketing techniques. It costs too much, particularly
for a cash strapped start-up. By initially engaging in
traditional market research tactics you are pointing your
business in the wrong direction from the beginning.
! You never really know what’s going to happen
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until you start-up. However, if you listen to the early

adopters and are prepared to make changes you will
develop your business in the right direction.
It Would Be Cool If...

When you get feedback from early adopters, you are
essentially being told what you need to do in order to
spread word of mouth. I think the best type of feedback
starts like “it would be cool if….” Not only are you
getting useful development pointers, you are also
finding out what could spark the word of mouth chain
reaction that is every marketer's/entrepreneur's dream.
So, the next time you are talking to a “geek” about your
product, don’t look at it from a developers standpoint
only. Put on a marketing hat and try to work out how
this information can help you build your marketing
strategy.
Do Your Research The Practical Way

Earlier on we touched on Organic Market Research.
Here are some practical tips that can help you. When
doing market research you can do it either the scientific
or practical way.
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! Since you are building a business in the real

word that you hope will make real money I would
suggest doing your market research the same way. Are
you doing a Phd.? Do you even own a lab coat? Then
why would you do scientific market research?
! I know what you’re thinking. What does this
guy mean by “practical market research”. Well, here
goes (I will try to make my explanation as practical as
possible).
! Find similar listed companies in your sector and
read their annual reports. Find out what is and isn’t
working for them. Also, find out what their future
strategy is and why they will be following it. Go onto
LinkedIn and ask for advice. Post questions. Use
forums and Google Groups to do the same. Build a beta
or prototype and start showing it to early adopters/
geeks.
! Listen to them tell you how awful your beta/
prototype is and make the appropriate changes. Get
more feedback from the early adopters. Repeat this
process until they start telling their friends about you.
! Sounds simple, doesn’t it? Well it is. It’s much
less time consuming than writing out questionnaires
and running focus groups. You are achieving the same
22
results but in a real world practical setting. And here is

the important part, by doing practical market research
you are also getting traction. That’s my third favorite
word after profit and sale.
First Things First: Establish a Point of Reference

Right, sometimes this idea gets me into trouble with
academics who study entrepreneurship in a lab setting.
However, I have been converted to this view by a hard
dose of reality with one of my previous ventures. Let
me explain, when I was fresh out of college I solidly
believed that you must do lots and lots of market
research before you build anything.
! I believed that before you even prototype, you
should put together a questionnaire and get 600 or so
responses. Then you should statistically analyze your
results. You should also run a focus group with your
target market. On top of this, it was also a great idea to
do interviews with some potential customers.
! But that’s not all, you need to read report upon
report on your market segment. You must also dissect
each one of your competitor’s businesses from all
analytical standpoints.
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! After all of this is done, you should have a good

idea if your business is feasible. The theory goes
further, if you determine that your business has
significant potential to become a success you then write
a business plan which will help you get investment."It
all sounds reasonable, doesn’t it? However, it’s not
practical. It takes too long to complete (remember you
can’t go for an extended period of time without any
money coming in). It’s too expensive to outsource for a
start-up. If you do it yourself nobody will believe it, no
matter how objective you are. The results are likely to
be biased in some way. It doesn’t help you get traction
(traction is the most important thing). "
! The good news is that there is a better way to go
about market research for your new business. I like to
call it “Organic Market Research”. In summary,
Organic Market Research involves putting together a
prototype or beta and getting it out there. Show people
what you have. Allow them to use it. After they tell you
why your product is awful, make the appropriate
changes to improve it. You will know when your
product is at a good standard when the early adopters
start telling their friends.
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! Look, traditional market research is sub optimal

for a new start-up. You must listen to real world
feedback and make the appropriate adjustments in real
time. By taking a step back and viewing the market
research and initial prototyping stage as one process
you are leveraging the most from your time and
resources.
! As you know, this is extremely important in a
start-up setting. Remember, you’re not Procter and
Gamble so get your hands dirty from the word go.
However, you must realize that your product will be
criticized. The key is to listen to the criticism and then
do something about it.
! Another key point to remember is that you are
probably not going to be “right first time”. People who
think this, are either delusional or complete geniuses.
And there are not a lot of geniuses walking around
these days. No matter what you do, building your
business is a process. There is no magic formula that
always works. You must constantly evolve. You will
make mistakes, but if you accept these mistakes as part
of the learning curve you have a great chance of
building a successful business.
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! Another major reason for throwing a marker

dart earlier is that you can reach traction quicker. This
is the most important factor in getting external
investment (if you need it). What you do in the real
world is worth 100X what you do in a “scientific”
market research scenario. Therefore, by focusing on
improving your business from your initial starting point
you are spending your time generating traction. My
friend, that’s what this start-up game is all about.
Integrate Your Product Development With Your

Market Research
This is really important. See, look at it as if you are
trapped in a tank with a limited amount of air. You have
a better chance of surviving if you act quickly and find
an escape. What you don’t want to do is take too long.
The problem is that doing market research and product
development sequentially takes too long. The chances
are that you will run out of air.
! Believe me, good quality scientific market
research for a start-up is expensive. Just get a quote
from a market research firm and you will find out.
However, there is a better way. You can do your
product development and market research
26
simultaneously in real time. This saves you time,

energy and money. Most importantly it helps you get
traction quickly.
! Not only does this reduce your cash burn but it
also helps you and your founding team psychologically.
It creates momentum, and believe me, this in infectious.
Like a moth to light, you should immediately move
towards traction.
! When you sit back and think about it.
Traditional market research is a simulation. It’s not real,
and represents nothing more than a best guess. When
you use reality as your testing lab your results are real
and indisputable and this is key to presenting your case
during your pitch. I can’t emphasis this enough. Behind
all the VC and Business Angel rhetoric all that really
matters is traction.
! Sounds simple, but if it was, everybody would
be landing Series A rounds. However, by being laser
focused on traction you are giving yourself a head start
on those entrepreneurs who believe that their idea is so
good they don’t need traction. Look, they are living in
fantasy land.
! All aspects of your start-up go hand in hand. As
a result, don’t compartmentalize. You’re not a
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multinational. Everyone is involved in everything.

Everyone is marketing. Everyone is developing,
everyone is making the coffee. See, you are all in it
together. Make life easy for each other and spread the
load.
! Imagine standing in front of a panel of
investors. How can you future proof your start-up for
their questions? You gotta be bullet proof. Traction is
the ultimate body armor. Much better than self
conducted market research.
! In the start-up game real results always win.
Everything else is a waste of time. Without real results
you lack the number one objective truth. That truth is
what investors are looking for. It gives them a good
idea if they are going to make money.
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Chapter 4: Business Planning
The Business Plan Myth!

Lets get this straight from the word go. Nobody invests
in an idea and a business plan is just one big idea. As a
result, it is not that important for you to get funding.
Instead your plan should be created to get you traction.
Don’t worry about fancy formatting. Don’t worry about
detailed descriptions for other people. Just worry about
getting traction.
! See, traction is the key to getting investment not
the actual plan. If your plan gets you traction then it’s a
good plan.
! Let me redefine the “Business Plan” right here.
To me a “Business Plan” is a story about how you got
traction, and also, a description of how you are going to
get more.
! Nobody has time to read it. So do them a favor.
Keep your plan for investors simple and to the point.
People should be able to understand your plan in 5
minutes. Remember, your objective is to convey a
message and not to put people to sleep.
29
! In summary, the business plan that you write for

yourself should look like a scorecard and the business
plan that you write for investors should be a 10-15 slide
deck.
! The next time you hear someone insist that you
need to write a 60+ page business plan, think about the
research from the Robert H. Smith School of Business,
University of Maryland which shows that entrepreneurs
need not worry about writing an in-depth business plan
to get funding from VCs. The research shows that
business plans play an insignificant role in the decision
making process of Venture Capitalists. The paper titled
“Form or Substance? The Role of Business Plans in
Venture Capital Decision Making.” which was co
authored by David Kirsch, Brent Goldfarb and Azi
Gera, contains research on 718 funding requests from
the period April 1999 - February 2002.
! There are some great resources on business
planning such as sample templates and videos on
LostJobStartBusiness.com. Be sure to check them out. "
The key is not to focus on the plan as a stand alone
issue. Focus on building your business and use the plan
as a reflection of what you are doing as well as what
you intend to do in the medium term.
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Why Your Business Plan Should Be a Five Minute

Read
We have all seen it. The behemoth 80+ page business
plan."It’s a sight to behold. Very impressive indeed. A
lot of work went into it. In fact, it took four and a half
weeks to write and proof read. It contains every
conceivable detail and the writers believe that it leaves
no stone unturned.
Okay, it sounds good doesn’t it? Well in fact, when you

think about it, it’s not. Here are seven reasons why.
! 1.! If you are looking for investment, the people

who you want to invest in your business don’t
have the time to read it.
! 2.! If you can’t condense what your business is
about into a five minute read, either you are an
extreme scatter-brain or your business has way
too many moving parts for a start-up.
! 3.! If you are going to use the plan in the day to day
management of your business it’s not practical
to have a plan that resembles a telephone
directory.
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! 4.! It’s good to take care of the environment.

Mammoth business plans = less rain forest = not
good at all.
! 5.! The more technical jargon there is, the more
you are diluting the two core elements of the
plan. How is this business going to make
money? and how much can it make?
! 6.! Law of averages are against you when you have
an sixty plus page plan. Less people will read it.
So if you are looking for investment, there is a
smaller pool of people that you can draw from.
! 7.! You have wasted time writing it when you
should have been working on getting traction
and making sales for your business. Sales matter
much more than a business plan.
Business Plan Layout

This suggested layout is not set in stone, but is a good
starting point. You should include a one page cover
letter at the start. It’s good to present the body of your
plan in the form of PowerPoint slides that are printed
out or in PDF format.
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Slide 1: The problem you solve, the solution your

business provides and a usage example. Try to keep
each point to one sentence.
Slide 2: Potential exits: Who will buy your business?

Do they have a track record of acquisitions.
Slide 3: Problem breakdown: Go into detail about the

problem that you solve (remember back up everything).
How many people have the problem and how much in
money terms does this problem cost them?
Slide 4: Traction: This is the number of users, key

reference sites or sales that you currently have. If you
are not at that stage yet, list the milestones you have
reached (this is probably the most important slide).
Include any IP such as patents that your business has.
Be aware that without traction you most likely will not
get investment.
Slide 5: Market overview: Size of market and projected

growth (back up everything).
Slide 6: Business model: How you will make money. It

might be good to mention other companies that use the
same model.
33
Slide 7: Milestones: Show the key milestones you

intent to meet. It’s usually good to show these on a
timeline.
Slide 8: Competitors: List your competitors along with

their strengths and weaknesses (Hint: if they are a
public company read their annual reports). Use a “What
we can do but they can’t” and a “What they can do but
we can’t” (be honest) matrix.
Slide 9: SWOT analysis: List your Strengths,

Weaknesses, Opportunities, and Threats.
Slide 10: PEST analysis: List the Political, Economic,

Social and Technological issues within your industry
sector.
Slide 11: Management Team: Background, education,

ownership etc.
Slide 12: Financial Projections: Usually for three years.

Include graphs. Make it clear how you got the sales
figures.
Slide 13: Current Objectives: Funding needed and

immediate milestones.
34
Don’t Fear The Financials

The single most important skill that you can have when
putting together financial projections for your business
is common sense. If you can apply common sense,
doing the financial projections for your start-up is easy.
Don’t outsource your projections. You will need to
change these constantly and revise them as you analyze
real world data when it comes in. By constructing the
financial projections for your business yourself, you are
gaining an invaluable insight on how your business will
work.
! The hard part is getting your assumptions right.
Obviously, your are not going to be 100 per cent
accurate, but you should try to be as accurate as
possible. Read annual reports of similar companies. Try
to find out typical conversion rates for your sector.
Also, identify the key financial indications for your
industry. However, remember if your business model is
different to the industry standard your key financial
indicators will also be different.
! I believe that the best way to do your
projections is to think through how each item in your
financial projections relates to others. This is a great
process that helps you understand your business model.
35
You can find out your expenses by getting actual quotes

for each item. Don’t guess what your expenses could be
when you can get accurate quotes. Once you have your
assumptions established all you need to know in order
to complete your financial projections is how to add,
subtract, multiply and divide. You don’t have to be a
financial analyst. As long as you apply logic to your
projections they should come out okay.
How to do Sales Projections

Many entrepreneurs get this very wrong. Some do not
apply any methodology to obtaining their sales figures.
In the vast majority of business plans, the sales
assumptions are simply plucked out of thin air. As a
result, the vast majority of business pans are worthless
and are a waste of time, energy and resources.
! Would you build a house on quick sand? Then
why would you build a business plan on unvalidated
sales assumptions?!
! There are many different ways to estimate your
sales figures. One way is to use the key performance
indicators for your industry sector. That’s what most
accountants would suggest. However, this in unrealistic
for a new business. Firstly, these figures are an average
36
of the industry. So therefore, they naturally reflect

businesses that have spent years building a client base
and solidifying their market position. As a start-up, you
have none of the above. Also, in start-up mode your
business model will most likely be different to
established businesses in your sector. As a result, I
believe that Key Performance Indicators are a lazy way
to compile your financial projections.
! The best way to build your sales assumptions is
to use a bottom up approach. This does not require any
financial wizardry. It only requires a cold hard dose of
common sense. In order to do this, you must understand
your business model. In particular, you need to
understand each step of your sales funnel. What will the
conversion rates be for each stage of your sale funnel?
However, all of this is still speculation until you
actually start selling. The reality is, that nobody is
going to believe your estimates, especially hardened
business angels or VCs, without real world evidence of
them being achieved.
! This leads us to what could seem like a chicken
and egg situation. However, it’s not. As an
entrepreneur, you need to bootstrap to early stage sales
and then use your results as back up to advocate your
37
future projections when you are looking for funding to

scale your business. At the very start, you need to make
assumptions for your own use. Once you start selling,
monitor your conversion rates. Refine your assumptions
then show them to potential investors. When they start
asking questions, you will be in a great position
because your assumptions are backed up by conversion
rates that you are actually achieving.
! Another point is that you should show each
stage of your sales funnel in your projections. Have a
separate assumptions page where each figure is broken
down into it component parts. It’s like a story laid out
in figures. The story is about how somebody is going to
buy from you. Remember, when trying to get
investment it’s not about science fiction it’s about
science fact.!
! You can get sample financial projections and a
how to guide form LostJobStartBusiness.com
New Business Plan Format

I remember being in business school. One of the
modules was business planning whereby we had to
write a business plan for a fictitious company. Of
course, we all produced a cliched 80 page behemoth of
38
a document. We made sure that it ticked all the boxes

so we could get the most marks. When I finished and
entered the real world, I firmly believed that I should
write a similar plan for my start up. How wrong I was.
! This approach to teaching business planning is
common place. Most people who leave a business
school have a distorted view of the business planning
reality.
! Some people recommend that people write a
detailed business plan just for their own management
use. I agree with this. However, I believe that they
should only use one A4 page and a pen. They should
write their internal business plan in the form of a
scorecard and they should regularly check their
progress.
! With regard to a business plan for investors,
since then, I have seen the light, and now advocate a
more practical approach to writing one. Now, I view a
business plan as a story. It’s a story about your business
so far, and a best guess on what is going to happen in
the future, based on your current conversion rates etc. It
should be presented in a format that is quick and easy
to read. Potential investors should understand your
business model within five minutes of picking up the
39
plan.
! In general, I agree with the new consensus that
you should write your business plan on a 10-15 slide
deck with notes.
! The more you can back up your assumptions
with hard evidence of actual conversion rates, cost per
customer acquisition, positive product reviews by
industry experts and glowing customer testimonials the
better your business plan will be. In other words, if
your plan is packed with real world evidence, you have
a great chance of getting investment.
! However, the same amount of background work
goes into a plan in this format. The difference is that
you don’t have to spend two weeks writing, formatting
and proofing a massive document that will never be
read in it’s entirety. See, as a start-up entrepreneur who
requires investment to scale, your job is to make
investing in your business a no brainer.
! Think about it, the easier you make it for
investors to understand your business the better the
chance that they will invest. It has been proven that
business plans are not as important as they are made out
to be. Research from University of Maryland’s
Business School shows this. Your business plan is not
40
an investment tool, it’s a communication tool and just

one component of many that a potential investors will
consider.
! In conclusion, if you tell an interesting story
about your business that points to future success you
are onto a winner. On the other hand, If you produce a
70+ page document, potential investors will have
another cure for insomnia and your message will be
lost. Remember, the work isn’t in the writing, it’s in the
building of a business model that gets results.
41
Chapter 5: Marketing
Salespeople Who Work for Free

You only need sales people for bad products. It’s
official, you’ve read it here. Sales people are obsolete
for good products. Of course, by good I mean
remarkable. However, if a product isn’t good enough
for someone to tell their friends about, is it any good at
all?
! Being remarkable has almost become a manta
for the modern marketer. As a result, it should be a
mantra for new entrepreneurs. You need to be noticed.
You need people to tell their friends about you. In other
words, if you step back and take the big picture view,"
you will realize that you are an engineer building a
word of mouth engine.
! You see, the default setting for new businesses
is full camouflage. They don’t stand out. As an
entrepreneur, it’s your job to take off the camouflage
jacket and put on a yellow high visibility vest.
! If what you are doing is not exciting, funny,
controversial, revolutionary or really cool you are
facing an uphill battle. The chances are, that you will
42
not make it to the top of the hill. However," if what you

are doing is one or all of the above, then you have a
great chance of building a fan base and generating word
of mouth.
! You don’t need sales people. Why pay someone
to deliver the “hard sell” when you can get somebody’s
friend to deliver the “soft sell” for free by
recommending your product? Nothing works better
than social validation. Today, it’s easy to recommend
stuff to friends. The person who recommends
something cool (early adopter) will get social kudos.
The followers (who are the majority) will feel good
because they fit into this new trend. This can
reverberate through different social structures. See the
scalability?
! You don’t have to spend hundreds of thousands
of dollars on a sales force. From the start, build your
product and business with word of mouth generation in
mind.
! As I pointed out earlier, marketing today and
engineering have a lot in common. Instead of building
an actual machine, with marketing, you are building a
structure that helps generate and reverberate word of
43
mouth. That’s where the money is! It makes perfect

sense. Doesn’t it?
The Evolution Of Marketing

Face it, you are a marketer. It’s the most important
thing that you do. I know, you think that you are an
engineer/designer/techie, and that’s okay. But in the big
picture you are a marketer.
! See marketing has evolved. It’s not like it was.
It’s not what you read in “marketing” text books. As the
way people communicate and interact has changed so
has marketing. In the past, marketing was
predominantly a communication between the company
and the consumer through the medium of advertising.
That’s how it worked in the stone age.
! Now, marketing is about communication
between the consumer and all their friends. It’s about
their sphere of social influence. Your job as a marketer/
designer/engineer is to create something that is worth
talking about.
! So, the next time you are creating something,
put on your marketing hat and ask yourself – How can I
make this stand out enough so that people will tell their
friends? Without it, you don’t have much of a chance.
44
Will People Rave About You?

In his excellent book “Purple Cow” Seth Godin talks
about being remarkable. As a start-up, you must be
remarkable. It’s important for you to understand that
word of mouth is your only shot. How are you going to
get people to tell their friends about you, if your
product is “run of the mill”? I’m sure you agree, you
can’t.
! Traditionally marketers called this the Unique
Selling Point (USP). However, as Seth points out, it
goes beyond just being unique. People must care about
how you are different or unique. It must be something
that motivates people to comment. They must feel the
need to tell their friends, to post on message boards, to
bookmark your site, and so on.
! I have talked to many fellow entrepreneurs who
rattle on about how many sales people they are going to
put on the road. They seek hundreds of thousands of
dollars in equity investment just to put a sales force on
the road. To me, if you need a sales force you haven’t
generated enough word of mouth.
! Think of it like this. Why don’t you make your
customers the sales force? You don’t pay them, they do
45
the job for free. All you have to do is be, as Seth Godin
would say, “remarkable.” "
! The important thing is to be remarkable with
meaning. This is the most critical component in your
marketing mix. By achieving this you will get
maximum leverage with any other marketing tactic you
use on top of this base.
! Being remarkable and comment worthy is only
the first step. However, it’s probably the most crucial.
! When you get early adopters to use your
product (beta, prototype etc.) listen to what they have to
say. If they make suggestions not only are they helping
you improve your product but they are also telling you
how to press their “word of mouth” button. The
chances are that if you implement their suggestions
successfully they will tell all of their friends, blog about
you, social bookmark you, review you and so on.
Build a Fan Base

Once you have generated word of mouth you need to
build a loyal fan base. Even though there is a Global
recession going on right now, Apple have achieved
some great results. The main reason for this is their fan
base. People who buy Apple computers are not simply
46
customers they are fans. Apple means more to them

than a simple computer. To them Apple is a way of life.
! This is infectious. Have you ever taken your
MacBook on a train and gotten a thumbs up from a
complete stranger. The generic laptop user beside you
always looks on with envy.
! I was at a Bruce Springsteen and the E-Street
Band gig in Dublin. I was in the line to get into the pit.
I was surrounded by the most hardcore "Boss" fans that
I have ever seen. Most of them were not from Ireland.
They were from France, Spain, Italy, USA, Canada,
England and Scotland. They were following
Springsteen and the E-Street Band on their European
tour. It was a great atmosphere. I overheard
conversations about past set lists and predictions of
what the band would play later that evening.
! So, why do thousands of people follow a band
across a continent? Why would someone want to see a
band play more than once? Well, it’s like a drug. The
great thing about the band is that the set list changes
just enough to make you want to find out what will be
played the next night. You definitely “got value” , 3 hrs
and 15 mins! (that in itself is remarkable for an
international touring band) and got to hear “Sherry
47
Darling” but they didn’t play “The River”, but they

might play it next time. Wow, better buy the plane
tickets and fly to the next show.
! Once you have made something comment
worthy and created word of mouth you must keep
people interested. How you do this depends on who
your customers are. Apple has the keynote at MacWord
for their fans. This is more fuel for the word of mouth
fire. How many times has a friend e-mailed you a video
link for Steve Jobs at MacWorld announcing the new
iPhone when it first came out?
! Always remember that you are an engineer
building a word of mouth engine.
The Internet a Start-up’s Best Friend

! You’re probably saying “Oh, I’ve heard that a
thousand times before.” But hear me out. It’s not the
technology that makes the Internet important to start-up
entrepreneurs, it’s the interactions.
! The Internet is a vehicle for communication.
Ideas spread quickly and widely through this medium.
A simple link sent over MSN or Facebook by one
person to their friend has profound influence. See, the
48
Internet makes it easy for people to tell their friends

about stuff. That’s what makes it a powerful tool.
! Traditional advertising and marketing
techniques are in decline. As a start up entrepreneur,
you should leave them to Nike and Pepsi. Use the
Internet to leverage people telling their friends about
you. That’s your primary objective. Getting people to
talk, link, review, blog, vlog, comment, recommend,
rate and endorse you, is what the game is about.
! The Internet is the only way you can get in the
mix. Forget about PR firms and Ad agencies, they are
not for you. Focus your resources on the Internet. This
gives you the biggest leverage for your time spent on
“marketing” which today means generating word of
mouth.
! However, I can’t overstate the need for you to
have your fundamental word of mouth generator in
place. This is the part of your product that is comment
worthy. Internet marketing does not work without it. It
doesn’t matter how many Twitter posts you make. If
what you do is not comment worthy, it will not spread.
! In other words. If you are bland you will lose.
Simple huh?
49
The Marketing Mix Delusion

Imagine this, you have just learned the rules of poker
and you are sitting at your first table." Do you think it
would be wise to bet on every hand? Will you learn
anything from doing this or will you just go broke? Do
you think that you could beat the more experienced
players?
! There’s only one thing that’s going to happen.
Your chip stack will vanish quickly and you will be out
of the game. Another thing that you definitely don’t do
is go “all in” at the very start. This is a lot like
marketing a new start-up. !
! A lot of start-up entrepreneurs make this
mistake. Hey, even I did it. Thankfully I have learned
my lesson. You see, the difference between marketing
and gambling is that in marketing once you find a
winner it will probably keep winning for a while to
come. The trick is to find a winner without spending
too much cash. As a result, I think that paid advertising
is the wrong place to start for a new business. You may
as well take out your lighter and start burning cash. You
will run out of cash before you find a campaign that is
profitable. Leave this to Nike. They have enough
money to do it. You don’t. !
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Instead, focus on marketing activities that you can do

without spending cash. You could call potential key
reference sites with your pitch. However, I wouldn’t do
that at the very start. I would focus all my attention on
building a global base of early adopters."In other words,
I would focus on the Internet. It’s the perfect vehicle for
new businesses. It’s free and you can reach people all
over the world. You are a global business with a click
of the mouse. However, the Internet requires a more
thorough approach than most other marketing tactics.
! See, you need to monitor everything. That’s the
advantage of the Internet. You can test and measure
almost anything. This information is essential for your
marketing activities. I have noticed that too many start-
up entrepreneurs don’t do nearly enough testing and
measuring online. To me this is crazy.
! Imagine this, you get people on your site for
free. If you make one small change you can improve
your conversion rate from 0.4% to 3%. That little
improvement is probably the most significant event in
your start-up’s history. You know that on average you
are getting 250 dollars for every one hundred
visitors."Now, because you have a 3% conversion rate
you can ramp up your Internet marketing activity." In
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other words buy visitors (Search Engine Optimization

is better in the long-term but it takes time. You get
immediate traffic with Pay Per Click). Only do this
when you have a conversion rate that gives you a profit
after the advertising is paid for. For the following let’s
assume that you use Google AdWords.
! So because you know that you are getting 250
dollars profit from every one hundred visitors. You can
spend 100 dollars to get one hundred visitors and still
clear 150 dollars on average. You can incrementally
ramp this up. Imagine spending $100,000. See you can
now scale your business. Also, you can invest more in
SEO and reduce your PPC spend.
! If you focus on one main marketing tactic like
the Internet you can try enough things in that area to
find out what works and what doesn’t. Once you have
your website working as a marketing machine. You can
then expand your activities outside the realm of the
Internet.
! Whatever tactics you decide to use in your start-
up marketing campaign make sure that you can give
them the depth required and not to scatter your
resources too thinly.
52
Trade Shows - Are They Worth It?

Lot’s of start-up entrepreneurs go to trade shows
thinking that they will set the world on fire with their
super cool stand. They think “Yeah, we got an LED
wall, how cool is that? I’m sure everyone will want to
buy our stuff.” In reality, this hardly ever happens.
! Yes, I know that trade shows are of some
benefit. However, since your time and energy is scarce I
don’t believe that they are worth it. That’s right, in my
mind trade shows are sub optimal for you. Remember,
you are a start-up and everything is limited. You must
use what you have on the things that give the highest
returns.
! Firstly, forget about getting a stand at a show. It
simply costs way too much and I’m talking about both
time and money. Secondly, only attend if you’re are
really sure that there is nothing more you can do with
your product, website, blog etc.
! I have attended many trade shows in the past
and for me they were a waste of time. I will not be
attending anymore because there are other things that I
can do with my time that give me greater benefits. By
being just another stand or being just another guy who
53
took a card from a desk doesn’t really give you any

benefits.
! Believe me, the environment at trade shows is
not conducive for a start-up. Leave it to the experienced
trade showers. Save your money and time for other
things.
Marketing What Does it Mean for Start-ups

Marketing in the context of a new business is often
misunderstood. In many cases, it’s relegated to a
number under the header “sales and marketing” in an
excel spreadsheet. This is sad, real sad. Relegating
marketing to an after-thought puts a new start up at a
distinct disadvantage." This is particularly true in
today’s economic situation. The number one reason for
this, is a complete misunderstanding of marketing. This
is not the entrepreneur’s fault. They just haven’t been
shown the light yet. You see, most start-up
entrepreneurs are from technical backgrounds. They
have no exposure to marketing. Therefore, they assume
that all they need to do in order to market their start-up
is run advertisements in newspapers, on local TV, on
radio and use Google AdWords (if they have heard of
it).
54
! This just doesn’t hack it for a start-up. It’s like a

space shuttle being launched into space. A new business
has to generate a lot of force to leave the atmosphere. It
needs an extra kick more than an established business.
However, most start-up entrepreneurs take their
marketing cues from established businesses. As a result,
they miss the target.
! The secret behind start-up marketing is really
simple. As outlined earlier, it’s about getting people to
tell their friends about you. In turn, they will tell their
friends and the cycle continues. In order for this to
happen there has to be a spark. It’s the first job of the
entrepreneur to create that spark.
! Creating this spark involves creating a product
that gets people talking. The second step is to help
people megaphone your start-up. It’s about using word
of mouth as a tangible marketing strategy."It’s about
turning your customers into salespeople who work for
free.
! For this to work you need a perfect storm of
idea, vision and execution. This is what entrepreneurs
should work towards. Invest in making this happen
instead of advertising.
! Investors are looking for sustainable businesses.
55
If your turnover depends on advertising spend then

what happens when this is turned off?
! By focusing on creating word of mouth
generators for their start-up, entrepreneurs are taking
the ideal approach to start-up marketing. Hopefully,
more entrepreneurs will focus on this instead of apply
clichéd marketing techniques.
56
Chapter 6: Getting Investment
The Psychology of Getting Investment

This is probably the most overlooked area of
entrepreneurship. Yet it’s crucially important. Dealing
with Business Angels and Venture Capitalists
(especially Venture Capitalists) is a game. In most
cases, investors in new businesses get thousands of
propositions every year. Therefore, they don’t put any
value on entrepreneurs who send them business plans
and harass them at events.
! You must give them the impression that you
don’t need them. That they are surplus to your future
plans. You must also subtly, give them the impression
that other investors are interested in you. Essentially,
what you are doing is creating higher value for yourself
in their minds.
! What’s the best way to do this? It’s quite simple.
Just build a business that is self sufficient but if it got
additional investment could really scale. When you
have this, your subconscious will automatically convey
what investors are looking for.
57
! Also, if you are getting industry reviews, being

recommended on industry websites, being twittered
about, being blogged about, professional investors will
pick up on it. If they don’t, then you don’t want them
investing in your business. They are not tuned into your
market sector.
! Another thing that you should do, is set criteria
for investors to meet. For example, if a potential
investor needs to be explained a typical industry
practice then you should tell them that you are looking
for an investor that is well versed in your sector. Thank
them for their time and interest but don’t accept their
offer.
! Oh and finally my golden rule of thumb. Never
contact Business Angels or Venture Capitalists directly.
Venture Capital Explained

Okay, one of the most important things that you, as an
entrepreneur, need to understand is how venture capital
works. Business angels operate a little bit differently
but the same principals apply. It’s actually quite simple.
See, it comes down to a numbers game. For example,
they invest in ten companies. Most of these companies
58
will fail therefore losing the VC’s money. However,

let’s say that out of the ten companies three actually
make it.
! The VC must get the money that they invested
in the seven companies that failed back from the three
successful companies. Let’s say that two of the three
companies are mediocre success stories. They are not
giving super high returns. But, there is one company
that is the star of the bunch. The company is now
making stratospheric profits and can be sold for
hundreds of millions of dollars.
! When the VC sits down and looks at it’s
portfolio of companies it averages out the return over
all ten in the portfolio. Makes sense doesn’t it?
However, you need to be aware that this approach to
investing has knock on implications on how companies
who have received VC funding can operate, and
ultimately, how much they can be sold for. Often, this
results in a conflict of interest between the Entrepreneur
and the VC.
! For example, if you are operating a successful
VC backed company and you receive an offer for a
trade sale of 20 million dollars the VC may turn it
down because it doesn’t match it’s investment strategy.
59
They are holding off for a 200 million dollar offer. You
as the entrepreneur would have been more than happy
to take the 20 million dollar exit but you can’t because
you signed the term sheet with the VC.
! Look, when you get investment from a VC just
remember that you must conform to their investment
strategy. Be aware of this from the start. Remember,
that it’s all about the return on investment.
Picking an Investor - Do Due Diligence on Them

This is just as important as putting together your
founding team. Investors differ widely so you need to
pick one that has the right skills for your business.
Don’t take the first offer that comes your way. Also,
consider the skill set of a potential investor as part of
the package. The money isn’t everything.
Ask yourself these key questions -
Who has the Business Angel or VC previously invested

in?
Have they had many successful exists?
60
What’s their background?
What are their key skills?
Will they be hands on or hands off?
Can you get along with this person?
What non-financial things can they bring to the table?
Google their name both in news and in regular search.

Call up portfolio companies and get their take on the
potential investor.
! I know it’s obvious, but many entrepreneurs
don’t do enough research on a potential investor before
a meeting. You are doing yourself and the potential
investor a big favor by doing your research.
Your Start-up Team

I’m going to say this once but you really need to listen.
Sign a Shareholders’/Stockholders’ agreement. Okay,
now that’s out of the way let’s look a your start-up
team.
61
! This is the most important issue concerning

your business. Firstly, you should all get along. Also,
you all and I mean all, need to be obsessed with the
business.
! Currently, I work alone but I have been part of a
start-up team before.
! I think a three person team is good at the start.
Two on development and one on marketing. As I said
before, all members of the start-up team must be
obsessed. Even if one member is only 3/4 obsessed
your team will not work. "
! You have to realize that trial and error is part of
being an entrepreneur so this will happen a lot at the
start. Here are some start-up team pointers.
1) Be in constant communication. Tell the team exactly

what you have done and what you plan to do.
Always ask for clarity if you don’t fully understand
what another team member is saying.
2) Don’t set unrealistic deadlines. Let each member set

their own deadlines because they know their area of
expertise best.
62
3) As soon as you start having difficulty with

something tell the team.
4) Be honest with everything. If you think someone

should be doing a better job then tell them straight
away.
5) Hold you hands up when you make a mistake.
6) Don’t expect miracles. Everything takes time and

effort.
7) If someone wants out, refer to the shareholders

agreement.
There will be problems. The key is how you deal with

the problems that will determine how successful your
founding team is.
Getting On The Radar Of Potential Investors

Okay, first things first. The idea that sending a business
plan is all that you need to do in order to get on the
radar of investors, is preposterous. Unfortunately,
63
Venture Capitalists and Business Angels are inundated

with plans from expectant entrepreneurs. However,
most of these get thrown straight into the bin.
! If this continues I am going to have my Bob
Geldof moment and organize a series of multi continent
concerts to raise awareness of the environmental impact
of ignorant entrepreneurs printing hundreds of business
plans and sending them to VCs.
! This is the most ineffective tactic used to get the
attention of investors. Also, contacting investors cold is
another bad idea. Investors won’t appreciate it. Don’t
be one of the hundreds of entrepreneurs who harass
investors. Believe me, there is a better way.
! Investors pay attention to their industry. It’s in
their interest to keep an eye on new companies in their
sector of expertise. As a result, the key to getting on
their radar is to generate word of mouth among industry
circles.
! There are many ways to do this. You could get
your product reviewed by an industry publication/blog.
Send press releases to industry journals, magazines and
websites. Ultimately, if the early adopters start noticing
you, so will the investors.
64
! It’s important to create higher social value

among investment circles by generating a good industry
buzz about your company. This takes time and is
difficult to do with only your own funds. However, it
demonstrates your dedication and competence to
potential investors. This is important because many top
level investors invest in the person just as much as they
invest in the business.
! It’s important not to go cap in hand to investors.
They won’t respect you if you do. Remember, they are
not a charity. If you can create a start-up with solid
fundamentals and the potential to scale then investors
will recognize that immediately.
! By not contacting investors directly you will be
in a better negotiating position when they contact you.
Besides, if you contacted them directly they probably
would not have arranged a meeting.
! It’s also important to note that many investors
are notified about potential investment opportunities by
accountants or by their legal advisors. You should be
aware of this if you happen to get into conversation
with such a person at an event.
! In summary, the best way to get on an investor’s
radar is to be so good that they can’t ignore you.
65
Traction Is The Key To Unlocking The “Series A”

Vault
If you had the option of placing a bet either before the
race starts or half way through it, what would you
choose? Obviously, you would choose to place the bet
half way through. You can see how each horse is
running and determine who to bet on based on the most
up to date, and more importantly, relevant information.
! See, that’s what Venture Capitalists and
Business Angels do. It’s important for entrepreneurs to
understand this. There are too many start-up ideas to
invest in. By “sitting on the fence” and watching which
start-ups are performing well and getting traction,
investors are gathering the information required to
make a diligent investment for themselves, or in the
case of Venture Capital, for the VC fund.
! Once you realize this, you can begin to focus all
your power on getting traction. When you sit back and
think about it, nothing else really matters. Traction tells
the investor quite a lot about your business. It answers a
great number of questions.
1) It proves that there is a market.

66
2) If you are making sales it shows that people are

prepared to pay for your product.
3) It shows that you can manage and develop a
business.
4) It is a good base for your future projections.
5) It’s the best form of market research.
The truth is that external funding is to scale, and not to

start-up. When you get traction it helps investors to
gauge how much you can scale from that point.
Investors should be experts in your industry sector and
therefore should know how early stage traction relates
to scalability.
! All the market research and strategic planning in
the world doesn’t mean squat without traction. As a
start-up entrepreneur your time is limited. You must
focus on the activities that further your cause the most.
You can’t do everything according to the business
strategy and market research text books. You must
prioritize.
! On to the big question. How do you get
traction? I believe that there is no set way to achieve
this. Different businesses will have different paths to
traction. However, the important thing is to constantly
67
evolve your approach by testing and measuring.

Establish a point of reference by implementing your
best guess and then refine it incrementally.
VCs are not the Bad Guys

Okay, I know what you are telling yourself. “This guy
has sold out.” “He’s turned to the dark side.” “The VCs
have secretly taken over the blog!!!” !
! I understand your initial reaction but take some
deep breaths and relax. I have lost count of the number
of times fellow entrepreneurs have moaned, bitched and
complained about VCs. I never was so hard on them.
! My college degree was in Accounting and
Finance so somewhere in my subconscious I held a
little bit of sympathy for the VC community. I
understand that they seem arrogant, self righteous, and
egotistical to someone from a technical engineering/
scientific background." Sorry, can I rephrase that? –
They seem arrogant to most human beings. However,
it’s not their fault. It’s the position that they are in.
! Look, their responsibility is to subscribers of the
fund. The people who put money into the VC fund.
They must maximize the return for these people. As a
result, it’s only ethical that they are so hard on
68
entrepreneurs. On top of this, let’s face it, entrepreneurs

can be annoying. We can seem arrogant, self righteous,
and egotistical to VCs. Venture Capitalists are also
scared because the World’s oxygen supply is being
diminished right before their eyes by the thousands of
80+ page business plans that come in the mail ever
year.
! You see, they are not in the business of being
nice. That doesn’t make them bad people. In fact, if you
show a VC a little bit of love who knows they might
even invest!
The P/E Ratio

I know that it’s boring. I know finance is all about guys
in bland suits with even blander personalities. I do
apologize for bringing up this technical financial term.
However, there was no way around it. I tried brain
storming a better way to sugar coat it but unfortunately
my mind hit a blank. Right, so lets get down to
business.
! The P/E Ratio is the most important financial
ratio for entrepreneurs. Let me explain, the P/E Ratio is
a method of valuing companies. It looks at a company’s
69
profits and compares it to the value of the company. It

is expressed as a multiple.
! For example, an average P/E Ratio of ten in
your industry means that an entrepreneur can argue a
ten times profit valuation for their business. So, if they
had a profit of one million dollars they would value the
company at ten million dollars. There are a number of
slightly more complicated considerations such as taking
an average of profits over a number of years etc. but on
the whole, you should understand the principle.
! So, how do you find out the P/E ratio. Well, the
easiest way is to use Google and Yahoo finance. They
will give you the P/E ratio of similar listed companies.
It’s a good starting point.
! As you can see, the higher your profits the
higher your valuation. So, let’s make this clear, you
should strive not only to make sales, but to have a
business model that minimizes costs and therefore
maximizes profits. Cost cutting is easy and will have a
major impact on your bottom line. If your objective is
to sell your business then cutting costs and running an
effective and efficient business is worth multiples of the
cost saving.
70
Networking and The Advisory Board

Many advise new entrepreneurs to seek advisory board
members who have contacts in the sector concerned
and who can advise on certain key issues. My problem
is that the people who give this advice don’t realize
how hard this is for a first time entrepreneur to do.
! It’s a lot like getting actual investment. In fact,
for someone who will actually add value to your
advisory board their time is often more valuable than a
significant proportion of the investment required. Just
because somebody has experience in the industry
doesn’t mean that they will contribute to you in any
positive way. As a result, you need to be aware of how
passionate your advisory board members will be. You
must judge their personality.
! Also, you should pay them in equity. That way
they benefit from the upside but not the downside.
Ultimately you should look for people who you can get
along with and that have a track record of success in
your niche. I know it’s common sense but it’s always
worth saying.
! Ask yourself, what can this person contribute to
the company. If they can pick up the phone and
introduce you to a key client then obviously they are of
71
value. However, if all they offer is advice and don’t

leverage their network for you then you should think
twice.
! Make sure your advisory board members allow
you to use their name with your start-up. This gives you
instant credibility. If they don’t allow you to name drop
in one to one situations then don’t have them on your
advisory board. They don’t have confidence in you or
your business and it’s not conducive to have people like
that involved.
! In reality, all an advisory board can do is open
doors. It’s up to you to walk through them. It’s useful to
have but remember it’s difficult to get really good
people on your advisory board. In some cases it can be
harder than getting investment.
! However, the good news is that the traction card
will work here too. Ultimately the combination of
traction with a good advisory board can be extremely
powerful and most likely will fast track your growth.
Potential Investor Meeting

The Entrepreneur has just finished their presentation.
They are feeling good. It came off without a flaw. They
think the hard part is over – or is it?
72
Investor: Right, nice presentation you didn’t bore me

as much as I was expecting when I saw you walking in
the door. You seem to have a natural flair for presenting
things. That’s well and good, but now let’s get down to
business. I have a few questions.
Entrepreneur: Fire away.
Investor: How do I know that your product is as

awesome as you suggest? Are there users that I can call
up to get their opinion?
Entrepreneur: Well we have an Alpha version. There’s

a few bugs but if you use it and can see past the bugs
I’m sure you will see how this product can be a success.
Investor: I’m not your target market. I would like to

hear what your target market has to say about your
product. If you had some reviews or testimonials I
would have a much better idea about your product.
Entrepreneur: I understand. Unfortunately we are not

at that stage just yet.
Investor: Moving on, are you sure that you looked at

your competition hard enough? It seems hard to believe
73
that only two other businesses are currently involved in

what you believe is a lucrative niche. It makes me think
that either you haven’t done enough research or your
niche isn’t as lucrative as you believe.
Entrepreneur: We searched Google for the main

keywords of the niche. Those two companies are all
that showed up.
Investor: Hmmmm. I have another meeting in 25

minutes so I am going to move quickly on. Let’s take a
look at your financial projections, they seem a bit far
fetched to me. How did you come up with your sales
figures?
Entrepreneur: We looked at the overall market and

estimated that it was worth a total of $200 million per
year. We estimate that we can get 1% of this market in
year 2. We have used this as a base for out sales
assumptions.
Investor: Do you know how many businesses I have

seen that project a 1% market share by year two or
three? Let’s move on.
Entrepreneur: Okay.
74
Investor: Looking at your expenses. It seems to me

that you have completely missed the mark on how
much you need to spend on marketing. Those sales
figures are unobtainable based on your marketing
spend. Look, I’ve been in this game a long time and
you are trying to get water from a stone with these
projections.
Entrepreneur: Thanks for the advice. We thought that

our marketing expenses were okay. Our Accountant
produced the figures and that’s what he believed would
be sufficient to generate the sales in the plan.
Investor: I’ll tell you straight up. I don’t like your

founding team. You guy’s don’t have the level of
experience that can take your idea and turn it into a
business that I would be prepared to invest in. Right
now, I’m not going to invest. You need to work on your
business more.
Entrepreneur: Wow, err, well thanks for your time
This scenario plays out countless times all over the

world. First time entrepreneurs do not realize what they
need to do in order to construct a viable investment
75
proposal to Business Angels and Venture Capitalists. If

entrepreneurs understood what was required to get
investment from the very start, they would be able to
structure their business model in such a way that would
make it easier for them to get funding to scale.
! It’s not complicated. In fact, it’s much simpler
than many first time entrepreneurs believe. Get traction,
become cash flow positive and make profits.
! Experienced investors will be able to judge the
benefits of their investment to your business and get a
more realistic appraisal of the potential returns.
! Sadly, many entrepreneurs don’t put themselves
in an investor’s shoes. However, if they investigate
what makes a good investment for a Business Angel or
Venture Capitalist they will be able to fit their business
model into this criteria. It’s like looking down the sight
instead of just firing wildly from the hip.
! In order to avoid the above scenario,
entrepreneurs need to focus on creating a sustainable
business model that will generate returns for investors.
There is no need for window dressing. Remember,
investors don’t invest in an idea they invest in a
business. So, focus on building a business with solid
foundations.
76
Investor Meeting Playing the Traction Card

As we have seen above, you must be ultra prepared
when you are pitching to investors. However, being
prepared means more than just being prepared for the
meeting. You must prepare your business to a level that
gives investors confidence in you and your team, shows
a market for your product, and indicates that your
business can scale to a level that will give an
appropriate return.
! You must always remember that top level
investors will test you by asking awkward questions.
They will push you and observe your reaction. They
will be observing not only what you say but how you
act. The buzzword that you should always remember in
this situation is confidence. The best way to convey
confidence is to have your homework done and have a
business that is getting some good traction.
! I cannot over emphasis how important traction
is. It’s a critical foundation for you to advocate your
business plan to potential investors. If you don’t have
traction it’s very hard to argue your point.
! Here are some demo questions and answers that
you should be prepared for. They show the importance
of traction as a base to support your plans. I have
77
picked the more difficult questions that many

entrepreneurs come unstuck by. These are real
questions that I have encountered as an entrepreneur.
1) Question: Your team is not very experienced, I don’t

know if you can deliver. Is there anything that will give
us confidence in your team?
Answer: Since we began the business we have

achieved $X sales with a relatively low marketing
budget. In the last three months, we have been
profitable, and as a result, the business is now self
sufficient and we are paying ourselves. This business is
already a success and we have shown a high degree of
competence in achieving this success. We want to carry
on our success and scale the business. We believe that
our results speak for themselves. We understand that
there are some gaps in our experience. However, our
experience with this business so far demonstrates our
capabilities as entrepreneurs.
Note: Use your past results as a means to advocate your

competence. You do need to have achieved positive
results in your business. If you haven’t got any traction
78
then you will have a hard time answering this question.

Remember, never talk yourself down.
2) Question: I don’t think your projections are realistic,

did I miss something?
Answer: Our projections are based on conversion rates

that we are actually achieving. These conversion rates
can be maintained as we scale. We make $X on every
$Y spent on Google AdWords. We have used Google’s
Traffic Estimator to show that this can be maintained as
we ramp up our PPC spend.
Note: You show that your projections are being

achieved in the real world. This makes it very hard for a
potential investor to shoot them down. It’s very hard to
argue against reality. I understand that organic web
traffic is the best way to attract visitors. However, Pay
Per Click (PPC) gives a tangible matrix. It’s easier to
present as part of a plan.
3) Question: Your competitors’ products are much

better than yours. Why would anyone want to use your
product?
79
Answer: Our product meets the needs of X niche much

better than our competitors’ products. This is the reason
why we have generated word of mouth and made some
early stage sales. You should read this review from
reviewofyourproduct.com. It answers your question
quite well. Also, here are some quotes from our current
customers.
Note: It’s always good to introduce independent third

party references for your product. Reviews in industry
magazines, websites and blogs help dramatically in
backing up your point. Also, it’s a good idea to have
quotes from actual customers in this situation.
4) Question: Regarding the international market. I

don’t see any infrastructure in place that shows you can
make this work. How are you going to sell
internationally?
Answer: A substantial number of our early customers

are international. They have found us through our
website. Also, we have noticed that once we get a
customer in a region many more follow afterwards.
This shows that our product generates a good degree of
word of mouth. Look, we are already selling worldwide
80
and this model works for us. There is a lot of room

within this model to scale. We intend to do this first
before we apply other marketing methodologies.
Note: Again you rely on your traction to back up your

point. Without it, it’s very difficult to put forward a
convincing argument.
5) Question: You have no sales staff I am not happy

with your business model. Can you convince me
otherwise?
Answer: When we started out we couldn’t afford to put

sales staff on the road. Instead we developed a business
model based on Internet marketing. We focused on
creating a product that generates word of mouth. To put
it another way, our customers are our sales staff.
Because we have worked hard on constantly improving
or website sales and marketing engine, we have made it
easy for people to spread digital word of mouth. Again,
this model is working for us. We just need to scale it.
Note: If your current model is not giving results then

investors won’t back it. You need to base your
81
assumptions on real results. This is the best way to

show that your planned model can work.
6) Question: I have looked at the Key Financial

Indicators for your sector. Your assumptions are totally
out of whack. Why should I believe them?
Answer: I have also looked at the Key Financial

Indicators for our sector. However, the difference
between us and the average business in our sector is
that our business model is much more streamlined. As a
result, our assumptions are different to the Key
Financial Indicators. Be rest assured, our projections
are based on actual results that we are achieving right
now.
Note: Again, this point is almost impossible to argue

without being able to show real word results. As you
can see, traction is the glue that ties your business plan
together when under inspection from external investors.
You see, when faced with either Venture Capitalists or

Business Angels you really require traction in order to
put forward a good case.
82
Changing VC Investment Style

With the success of Y-Combinator many Business
Angels and Venture Capitalists are changing the way
they invest in start-up companies. In the last number of
years the cost of starting up has plummeted. This is
particularly the case with Web 2.0 companies.
! As a result, Venture Capitalists are adjusting
their investment strategy to reflect this. The days of a
five million dollar series A could be over. However,
there are benefits to this new level of prudence. As an
entrepreneur, I know that if the money is there it will be
spent. Conversely, If a start-up has to live on less then it
will adapt. In fact, it’s a win win for both parties.
! By taking on less investment at the start, the
entrepreneur avoids unnecessary dilution. On the VCs
end, they haven’t gone “all in” with a massive series A
round. Their risk is mitigated.
! Ultimately, this will result in less waste and
better business models. Given the current global
downturn, restructuring VC investment methodologies
to something more similar to Business Angel groups
will help get the sector out of it’s current slump.
! Start-up accelerators such as Y-Combinator and
Berkerley Ventures seem to be the most sustainable
83
method for new business investment. I predict that we

will see more and more established VC funds following
suit in the next few years.
84
Chapter 7: Your Type of Business

Build a Business Model that Works in a Recession
What was wrong with the US auto companies? Simply
put, their business model was outdated and obsolete.
What was wrong with all the banks? Their business
model could only survive in an economically opulent
time. The same can be said with most businesses that
are struggling right now.
! So, what are the options open to established
businesses that are struggling? Well, they can either
change or fail. However, change is extremely difficult.
Core beliefs and practices that have been ingrained in
the organization must change. To anyone familiar with
organization behavior. This is a nightmare.
! You, on the other hand, don’t have to worry
about change. You can start with a business model that
not only will work in a recession but will position you
excellently for any economic upswing.
! I know that some of your friends are neigh-
sayers. They like to criticize your plans. I guess that
some people will always take the negative stance no
matter what. However, the next time you hear “Hey,
you are crazy for starting that business in this
85
recession” put it down to their lack of business

knowledge. See, this recession is caused by business
models and a good business model can do well despite
the recession.
! “The Recession” is the biggest excuse out there
right now. The key for you, is not to use it as an excuse.
There’s plenty of opportunity out there for you.
! Keep your business as lean as possible. Really
squeeze the costs down to a minimum. Bootstrap like
your life depended on it (it does).
What to Copy From Established Businesses

Some of your competitors have been around the block a
few times. As a result, they have learned a thing or two.
Why not piggy back on their experience and copy them
on a few things?
! You must be selective on what you copy.
Remember, you must have something that people want
to talk about. You must be different in some way. But if
people don’t care about that particular aspect of a
business model then I think it’s a good idea to copy it
from a competitor. No point in reinventing the wheel,
huh?
86
! Typically, look to areas like distribution,

technical support, warrantees, licensing etc. for
opportunities to follow in the footsteps of your
competitors. Just make sure that your product does not
become generic as a result. Keep the remarkable
elements.
! As you can see, this is a tougher decision than
you may have thought at first. It’s a balancing act and
does require tweaking over time. I’m sure you agree
that by copying your competitors in some “behind the
scenes” operations you are benefiting from their
experience without having to make the mistakes. "
! If you are seeking external investment you can
use your competitors as back-up for any operational
question that you may be asked.
! A great way to find out what your competitors
are doing is reading annual reports and also doing a
news search on google for other businesses in your
sector.
Entrepreneurs and Warren Buffett

Warren Buffett loves reading annual reports. He looks
at a company’s business model in detail. He applies a
simple and straight forward approach. In many ways,
87
Buffett acts like a super business angel. His methods

have been proven right in the long term. Entrepreneurs
can learn a lot from Buffett’s investment strategy. The
difference is, that instead of reading reports and doing
research on the company, entrepreneurs are at the forge
and are writing the annual reports by their actions.
! There are many distractions that all too many
times lead entrepreneurs down the path of failure. It’s
important to have one eye on the money engine at all
times. The trap of “high-tech escapism” is very easy to
fall into.
! Having a clear understanding of what
fundamentally makes a good company is invaluable for
entrepreneurs. It’s the framework on which you hang
your core business strategy. It’s the compass point that
will get you to your destination. Once you have this
established in relation to your business everything must
focus towards it.
Ultimately, three common sense questions sum this up.
1) How much will the business make?
2) How much will it cost to run the business?
88
3) Will your income stream and cost structure be

sustainable into the future?
As an entrepreneur your goals and ambitions set the

criteria for your business. How much do you want to
make? How hard do you want to work?
! Now what you are looking for is a convergence
of what makes sense for you to start a business and
what a potential investor is looking for. If your criteria
meets their criteria then you have a real chance of
making a deal. However, if you don’t focus on the
money engine from day one, it’s very unlikely that your
start-up will be positioned for investment to scale.
! A vast majority of investors are looking for
historical data that indicates future potential. You must
get this traction. The higher up the traction ladder you
are, the better chance you have of getting investment.
! There is plenty of information on Warren
Buffett’s investment strategy. Try to build a business
that Warren would invest in and I’m sure you won’t
have any problem finding others who will believe in
you.
89
Importance Of Cash Rationing

The most important issue facing a start-up is cash burn.
It may sound easy to manage, but in reality, it takes a
lot of planning to get right. From my past experience
there is a large range in cost for almost everything a
start-up needs. These costs add up and if left unchecked
can mean that the business must fold before it manages
to achieve any significant traction.
! This requires start-up entrepreneurs to do a
“cold light of day” cost benefit analysis. In other words,
only pay for the absolute essentials. Use as much open
source software as possible. Don’t rent office space.
Start up in a garage or bedroom. Use Skype for your
incoming and outgoing calls. Use a web host that gives
you extreme value. If you can keep your cash outflows
to under $80 a month you are well on the way to
building a cockroach like enterprise.
! Something that is hard to kill might just live
long enough for you to learn from your mistakes and
make enough sales to vault to the next level. Look, I
believe that every start-up entrepreneur should do a line
by line assessment and squeeze any unnecessary
expenditure out. Lean is the name of the game.
! It’s important for entrepreneurs to ration cash
90
like their life depended on it (and it does). However, I

still see the majority of entrepreneurs overlooking some
cash savings that could keep their business alive during
the development stage. Be vigilant and reduce costs at
any opportunity.
Type of Business for Your First Venture

As you already know, there are various types of start-
up. You’ve got the Web Based Start-up, the Bio-Tech/
Pharma Start-up, the Retail Start-up and so on. Each
start-up involves different structures during the start-up
phase.
! For me, I think the best type of business for first
time entrepreneurs is one that is cheap to start and has
plenty of scope for learning. To take this idea further, a
business that involves extensive market research and
upfront expenses is probably bad for first time
entrepreneurs.
! When you are a first time entrepreneur you
don’t have the access to funding that a previously
successful entrepreneur would have. It makes sense to
start a business that you can bootstrap on your own.
Also, as you become successful with your start-up you
are building confidence in the eyes of potential
91
investors. So, if you require additional funding to scale,

you have a better chance of getting it.
End Note
Starting a business is an exciting and rewarding
experience. It requires that you step out of your comfort
zone. It enables you to move away from the restrictions
of playing the game by someone else’s rules and
instead write the rule book yourself.
! It’s a process that is the most important
component in an economic recovery. Right now, I
believe that there has never been a better time to start-
up. The combination of technology and lower start-up
costs mixed with global communications make
bootstrapped business models that offer high returns
possible. I hope that this ebook will help you along the
way. If you embrace entrepreneurship wholeheartedly,
the day you lost your job could be the best day of your
life.
92
About the Author
Feargal Byrne is an entrepreneur with experience in the

software and entertainment sectors. He holds a B.A. in
Accounting and Finance and an M.B.S. in
Entrepreneurship and Marketing. He is a member of the
Marketing Institute of Ireland. He blogs on
LostJobStartBusiness.com.
You can contact Feargal by email:

info | at | lostjobstartbusiness | dot | com
Twitter: LJSBusiness
93

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The Rebound

The Ultimate Guide to Starting a

The Rebound: The Ultimate Guide to Starting

Feargal Byrne B.A., M.B.S., M.M.I.I.

Web’s number one resource for people who have lost

info | at | LostJobStartBusiness | dot | com

Chapter 1: Change Your Mindset 6

Different Ball Game 6

Employee Mentality Versus Boss Mentality 8

Are You An Entrepreneur? 10

Chapter 2: Tips for Start Up Entrepreneurs 13

Ten Fundamental Tips 13

Chapter 3: Market Research 20

Cheaper to Just Start 20

It Would Be Cool If... 21

Do Your Research The Practical Way 21

First Things First: Establish a Point of Reference 23

Integrate Your Product Development With Your

Chapter 4: Business Planning 29

The Business Plan Myth! 29

Why Your Business Plan Should Be a Five Minute

Business Plan Layout 32

Don!t Fear The Financials 35

New Business Plan Format 38

Salespeople Who Work for Free 42

Will People Rave About You? 45

Build a Fan Base 46

The Internet a Start-up!s Best Friend 48

The Marketing Mix Delusion 50

Trade Shows - Are They Worth It? 53

Marketing What Does it Mean for Start-ups 54

The Psychology of Getting Investment 57

Venture Capital Explained 58

Picking an Investor - Do Due Diligence on Them 60

Your Start-up Team 61

Getting On The Radar Of Potential Investors 63

Traction Is The Key To Unlocking The “Series A”

VCs are not the Bad Guys 68

The P/E Ratio 69

Networking and The Advisory Board 71

Potential Investor Meeting 72

Investor Meeting Playing the Traction Card 77

Changing VC Investment Style 83

Chapter 7: Your Type of Business 85

Build a Business Model that Works in a Recession

What to Copy From Established Businesses 86

Entrepreneurs and Warren Buffett 87

Importance Of Cash Rationing 90

Chapter 1: Change Your Mindset

Different Ball Game

can’t get away with just showing up. You need to be

Employee Mentality Versus Boss Mentality

new business these tools of success just because the

Are You An Entrepreneur?

to them all you can safely say that entrepreneurship is

Are you prepared to live below the poverty line until

Chapter 2: Tips for Start Up Entrepreneurs

Ten Fundamental Tips

1. Keep Your Cash Burn to a Minimum

You can’t operate like a typical established business. If

by keeping your cash burn to a minimum you have

2. Get Another Job

I know that you want to start a business but hear me