Understanding the roadblocks ahead will help you better manage your technology needs.(http://www.entrepreneur.com/article/172858)
This article explains the importance of the technology in our company that is a valuable tool for companies trying to streamline their business and increase productivity and efficiency. However, the author highlights that, even though these can be reached with the help of the technology, technology does not do all of these things easily, it is multifaceted, complex and always improving. That’s why he advices companies that, before they try to implement any innovation make sure to prepare detailed technology plan like a business plan. And when it comes to managing company’s technology there are couple of challenges facing companies nowadays. These are: lack of education about technology options, an inability to prioritize which technologies are most important at what time, how to go about integrating technology into your business and, finally, how to protect it. And I will focus on lack of education and inability to prioritize.
Lack of education is one of the most important things while implementing technology. Because people do not have information about what is going on about technology, they might not be able to choose the best solution for their plan. The author gives a web site example: Having a normal web site is really easy and inevitable task for every single company, however if a competitor has really functional web site, which increase the productivity and customer satisfaction, then you need to add new features to web site in order to catch or head them off. Thus, in order to educate ourselves the author leads us to pay attention to the following points: reading technology sections of small-business-focused magazines, keeping in touch with local technology advisor, taking the advantage of technology seminars.
Because the company generally have a limited amount of time and money to implement the new technology that we need, it is really important to have a technology plan in place to prioritize what technology you decide to implement and when. In every case, when you are trying to implement a new technology, you will always encounter new things either from inside the company or outside the company. Therefore we won’t be able to focus on our aim, what is more, we may lose our path to implement the new technology and focus on another thing. If we have a technology plan we will plan our goals for near, mid-term long and long-term future.
If you want to start strong, steer clear of these funding fantasies. (http://www.entrepreneur.com/article/204198)
The article that I found explains 4 common venture capital myths. And the reading that we are assigned to read this week is mainly discusses the process of having a venture capitalist, such as explaining the ideas to the VC, talking the financial details with VC, managing the agreement with derivatives. In their opinion VC’s are masters of procrastination. They keep all options open until the last possible moment, and then they will invest. So in this process because VC’s are more experienced than entrepreneurs, entrepreneurs should be really careful about what they are doing.
The first myth is: “By demonstrating the tremendous value of my idea, I will be able to demand a high valuation for my new company.” The author discussed that, management of the money and the company depends on the amount of investment. And generally venture capital firms insist on owning at least 20 percent of all early-stage portfolio companies, which is called Lead VC.
The second myth is: “I am going to retain control of my company.” The author highlights that, after a single round of financing, the founders no longer have “control”, not to mention the specific veto rights that the VCs will have over key matters, such as acquisitions, the next round of financing.
The third one is: “By taking less money now, I will avoid dilution.” To remain attractive for the quick flip in a sale of company, entrepreneurs sometimes choose to raise lower amounts of investment in order to eliminate dilution. And the author says that, even though they choose to have lower amounts of funding, the difference between the two amounts will not be huge. And he points out that “At the end of the day, start-up businesses fail for one reason: because they run out of money.”
The last myth is: “I am going to be able to choose the right VC for my company.” As GO Company also encountered this situation, they were talking about every single company to be invested by. And they decided not to call everybody, if they couldn’t get any answers then they would try to reach the others. The author also mentions that, if an entrepreneurs don’t have any experience, their job is really hard to get a venture capitalist. Therefore, they will be less selective because they need funding to run the company.
It’s not about starting over–it’s about empowering yourself to keep going.
In contras to the most of the articles, the article that I have found explains the positive sides of thinking whether it is time to quit or not. The author says that every entrepreneur challenges that make him question about quitting, trying new ideas or alternative career. Even though entrepreneur plans everything in his business there are always unpredictable things that my come up. And entrepreneur needs to be prepared for this kind of situations.
As entrepreneur processing his ideas in business, he will increase his experience and knowledge. Either negative or positive every experience that an entrepreneur gains will be the most important thing which will guide him to decide which way is best for him. And the author underlines that, even the negative results will open new unique opportunities. The author says that, entrepreneur should promise himself that he will only quit when the time is right. This frees entrepreneur so he can pursue all possible solutions. The author also says that, only an entrepreneur can block himself, the other obstacles only compel the entrepreneur but they help entrepreneur to gain experience. In these kinds of situations, by seeking solutions entrepreneurs gain energy and create distinctive methods for obtaining even greater success.
The author considers the entrepreneurs as an expert at testing new ideas and seeking them through to the end. They should view their business as an experiment, therefore every single attempt will add new knowledge and experience on the entrepreneur. Therefore, the author suggests entrepreneurs to fire their enterprising spirit and find new solutions to the current business instead of quitting.
The article that I found explains the importance of the innovation on the small companies. It discusses the difference between big companies and small companies on the innovation road. The question is why do large companies are not successful by doing innovations but acquiring. Because they have money, existing market share to launch startup easier than the small companies. So there should be some reasons under that topic, and the author underlines the effects of people, culture, cost, organizational structure, and risk about that situation.
People and culture are the significant parts of the companies. They reflect their companies’ values. And to launch a startup, a company needs to have innovative entrepreneurs which is typically isn’t in a job description for a large company. Big companies generally hire new people, when they need more workforces rather than having people who think and come up a new idea. What is more, people who are working in large companies, generally work to achieve their goal for the company, not for the more. There are of course exceptions in that topic, for example Google forces their employers not to work on their current job but allows them to work on their individual projects. Which makes people more creative and causes them to come up new, innovative ideas. But most of the companies, this is not the case, they want their employers just finish their routine work as soon as possible.
If we look at the cost and organizational structure, the difference is about, because small companies or startups try to beg, borrow and barter to find funds. However large companies reinforce established processes, to accomplish same things at a much slower speed with more cost. That’s why, this lack of money triggers small companies to come up different, unique, solutions to solve the problems that leads to innovations.
Risk is the other important topic, which prevents large companies to give a chance for the new ideas. Instead of taking risk for the new ideas, they would prefer to buy the small companies which are successful for their launch ups.
Pitfalls abound when entrepreneurs decide to become partners. Know what they are ahead of time so you can set up guidelines that allow people to walk away if things go wrong. (http://www.entrepreneur.com/article/196912)
My article explains 7 things that entrepreneurs should avoid while setting up an agreement. And in the readings that we are assigned for this week is mainly discusses the importance of the partners. GO Company encounters difficulties while they are setting up agreements either with IBM or HP. They chose IBM to work out, but IBM set up couple of difficulties to deport GO Company from the field or use their technology like as their technology.
The author resembles the marriage and the partnership and mentions that half of all marriages don’t survive. Thus entrepreneurs have to be very careful about setting the partnership agreement. The first thing that he highlights is “Sharing capital instead of expenses”. If you share your own capital with your partner, you will automatically give away your enterprise ability he says. What is more, by doing that, it will be hard to break the deal and go away if things go wrong. In GO Company’s case, IBM was to get 50 percent of all revenues that GO Company received from parties other than IBM and licenses to all of the patents and copyrights. IBM’s royalties to GO would be capped, which means that, IBM would have free use of GO products. So IBM was really demanding and instead of helping the GO Company, their main aim is absorb the company and take their business advantage. The second one is “Partnering with someone because you can’t afford to hire”. If an entrepreneur has an idea and someone has the ability to implement that idea, instead of incorporate that person into the partnership with an agreement, just hire him or her or work out an independent contactor agreement. The other important point that we can relate to the GO Company is “Overlooking a limited partnership”. By doing that limited partner will not liable for the actions or obligations of the general partner. The other one is “Lacking an out or an exit strategy”. If GO Company would have set an exit strategy in the agreement, instead of selling the company or accepting the harsh conditions they would terminate the agreement having less damage.
These crucial points are related to the GO Company’s situation and if they would have described their business strategy better for themselves, they would see the future before that happen and sign the agreement with respect to that.