The 10 lessons of business failure
Author: Ruan Yifeng published in the May 1, 2009 Not long ago, playcafe.com stopped three months after the update, officially announced the closure of the Nike Air Presto Mens site founder Mark Goldenson wrote a long open letter, summed himself from the failures. . 10 lessons learned, he said: I write below is a ‘post-mortem’, summarizes we do things right and wrong, and how we will improve next time I feel that many entrepreneurs do not. willing to talk about their failures, but also do not want to reflect on. I hope that you from my failure to find some useful things. Before showing this ‘post-mortem’, I briefly say something, playcafe.com in the end is a kind site. In fact, much like playcafe.com website, as it is more like a file real-time network television programs from April 2007 website creation, until May 2008, at 6:00 each evening and 7 point, it is time to play the second game shows visitors through the network, while watching TV, while to answer questions raised in the program, the winners get prizes visitors can watch the show flash interface is as follows (click to enlarge): 2015 Latest Nike Shoes Although playcafe .com The effect is not bad, actually quite good: the average residence time is 87 minutes per visitor, within a week, 40 percent of the first visitors would choose to visit again, however, because the number of visitors. always enough, coupled with the financial crisis, resulting in a closed site. ===================== Here is Mark’s 10-point lesson, and I feel every bit of .1. as soon as possible to get the venture capital Find quick money first. Mark say they are fortunate to know some of Silicon Valley’s most powerful venture capitalists, but later found out, this is not advantageous because such a venture home, the hands of a lot of items to choose from, so they usually do not want to intervene too early, preferring to wait until the risk is minimized when the re-vote the money. However, for entrepreneurs, money is more valuable than the advice and contacts. Mark believes that if given the opportunity to start again, they will focus on those who are less well-known venture capitalist who fight in the early stages of the project will get the investment, he said, you have to remember that, if met three times in the future or settle down, so not your project does not work, that you got the wrong man. From another perspective, if your project is a good momentum, you do not look for the big venture capitalists, they will find their own home. ([thoughts] I think this one is only suitable for those good market prospects, but the project will not be profitable in the short term. If your project can generate cash flow, there is no doubt, it is by no means the first thing you look for venture capital home, but to ensure that the project is self-sufficient, because venture capitalists finally taken away, than to give you a lot more.) 2. Do not be content Content businesses suck. every day to provide valuable content to visitors, is a Items daunting task at the same time achieve good content and excellent site performance, Personality Nike Air Force 1 Unisex All White Shoes looks plausible, in practice difficult to achieve. Case in the three major US networks, they are only responsible for the dissemination of the program, most of the play The programs are purchased. The reason is that the ‘create content’ and ‘communication contents’ are two different things, but the difficulty is great, so it’s better division of labor .Mark that we know their content production a novice, but we think, to find a pretty girl in front of the camera a stop to the audience and out the subject enough proved us wrong, produce high-quality content, beyond our financial resources can afford. Recall what ‘American Idol’ this TV show, it is the highest rated US programs can use almost unlimited resources. But still, this program is still in the live broadcast will continue to go wrong. This illustrates the difficulty of content production. In addition to the content, not to mention, we have a server crash, attack, website upgrades, customer complaints, and so these things to worry about. I recommend any entrepreneur or investor, prior to making a selection in this direction, we must think twice. walk the contents of this road, this road than by technology, an order of magnitude more difficult to .Youtube founder of the website to sell Google, the price is $ 1.65 billion, but the content providers on Youtube, want to make the program even if this number The one percent, I am afraid it is impossible. Furthermore, digital video technology and network DVR share Download, will make reducing your income, sent packing any advertiser perhaps, take the ‘production of content’ This way, the most important and the only reason is that you really love to do it, not to make money. ([thoughts] I totally agree with that, so I’m not optimistic about any of the blog as ‘content platform’ project.) 3. Speed vs. stability Know when to value speed vs. stability. To a good performance, slow development of the site, or to a poor performance, but the rapid development of the site? how would you choose? In our original envisaged, PlayCafe is a fairly complex website content and technical aspects of complexity, taking up a lot of development time, and ultimately hurt us. Every aspect of the site, we all want it to do good and stable. (This is not surprising ., human nature is such), but, unfortunately, we therefore slow the pace of action, and in this novel and entertainment-based industry, which is fatal to have a metaphor, I really like: If you allow a novice to take two steps once, then he can beat chess masters. (A chess novice can defeat a master if moving twice each round.) rapid development generally increases errors and stability of the software, if you are perfect advocates, you will feel offended. But I agree with Reid Hoffman argument, that is, when the first version of the website when released, if you look at it does not feel embarrassed, it shows you the time to develop too much. (If you review your first site version and do not feel embarrassment, you spent too much time on it.) There is one exception, if your product is used to complete a specific task, then the above statement not established. For example, ebay shopping features and twitter’s message, you must remain stable and easy to use. The slow development of this function, it is precisely because there are a large number of users to use it, it can not be so anxious. You have to put this feature do right. ([feelings] This is Paul Graham said, the entrepreneur first thing to do is to come up with a prototype as soon as possible, no matter how bad, as long as can be on the line, and then let the market decide the future development direction.) 4 Cherish every minute Set a dollar value on your time. I have a bad habit, it is like looking for a Latest Nike Air Force 1 Mens White Black Shoes bargain, so often bargain with others in order to reduce wireless Internet bill $ 100, I can spend three hours to negotiate. My mistake was to ignore the value of time with respect to the investment we have received, so time is simply not worth it. Time important than money because you can not earned more time. (Time is arguably more valuable than money because you can not raise more time.) ([thanks] I love above this sentence. Jordan RCVR A lot of people fail, not because he can not afford to, but because he can not effectively manage time. I myself am One example, must always remind ourselves to improve efficiency ah.) 5. Marketing is important Marketing requires constant expertise.PlayCafe main reason for the failure is that sales working in other areas, we really do not bad, is not selling, has failed to attract enough visitors. I later realized that marketing is not a novice in his spare time he figured it out you can, but need senior, experienced professionals. The Internet is a super-saturated areas, success marketing to create and attract ‘difference of demand’, which for amateurs, it is a bit hard. Next time, we will be more than raise some funds to hire a marketing expert as soon as possible. The exceptions are the product itself is very filmmaking Users from within the heart agree with you, support you. Then you do not have to do marketing, you will take the initiative to help you promote, pull to new visitors. However, even such products, marketing can accelerate its growth. ([thoughts] I think this one less of a premise, Mark did not clear that the product is the first, marketing second place because if your product does not work, then a wise marketing is also useless.) Next The picture is in April 2008, American student Rachel excited to show, she was involved in playcafe.com online games, prizes obtained – an iPod, a month later, playcafe.com announced by the player two a day set of game shows, instead playing a set each week. Six months later, it finally announced a new program to stop production, and in April 2009 completely shut down the site. ================= === 6. develop an accurate estimate of the cost of users Control and calculate your user acquisition costs. Early site opened, our idea is naive, I think it is fun to shoot some video, organize fun games, engage in some attractive prizes, This will get people to the site. The idea was not wrong, but the best marketing strategy must be precise and controllable, but can not be so rough and full of variables. If you know the cost of developing a new user, you know how much money you need and income, you can control the whole process, you can substitute speculation and assumptions .Google’s AdWords keyword tool use mathematical formulas, it is a very good starting point. It will tell you, every search the number and flow estimates. You can advertise for a particular search. ideal launch target is 10,000 times more than the number of searches per month, it has sold advertising bids not more than three, and there are with your site strong correlation between search terms. For example, ‘game TV shows’ 12000 searches per month, has sold the bid advertising is seven, and ‘2008 game show’ there are 14,800 searches per month, sold advertising Only one. correlation of these two search almost equal, so the latter is the better choice, so you can get visitors more cheaply. Your first visitors are usually the most expensive, Each needs to 10-20 dollars in development costs, future site grows and word of mouth brand, development of the user’s cost will come down. A mistake we made is that too much money will be invested in public relations firm, web advertising and above traditional media advertising. On one occasion, we spent $ 5,000, requested a promotion specialist, but in the end there is no effect, who claimed $ 5,000 will also need to be effective. …… then, I will try to just give money Investment in precise data as the basis for marketing .7 early partnerships Form partner relationships early, even if informal. in partnership with other companies, usually do not have a significant effect in the short term, and this relationship you can not control. But in the long term, this approach does have some potential advantages. Each partner will bring you more channels of communication with the outside world, richer marketing tools, to help you identify potential competitors may even eventually become a takeover you. Because we are too confident, did not put a priority development partners, resulting in missed opportunities for a closer relationship with CBS, FremantleMedia and TV networks to develop such a GSN. They later said If there is more cooperation, a better understanding of our values, it may be money to buy us. I’ve learned that sometimes informal relationships is also useful, but do not spend a lot of time will be able to set up. Simply visit decision-makers at other companies, all contribute to the development of relations and goodwill between the parties .8. You always underestimate expenditure Plan costs conservatively and err on the side of raising too much. I really think that, if there are more The funds, our end may be different, because we will be able to try more strategy. Although we made a very detailed budget, but still greatly underestimated the costs. Next time, we will know more about some of the cost of After the real situation, to do the budget, and at the time to raise funds, the amount must exceed the amount of the budget. It also helps to save your time, do not rush to the next round of financing. Although the first draft of the budget must be wrong too outrageous, but it is still useful, you did not waste time. It can help you on every aspect of business operations, there is a rough estimate, and whether your business model is sane than mad, crazy or sane than .9 . do no other choice negotiations The key to negotiating is having options most useful advice I ever heard a single, is this sentence:. (. Always have options) ‘. always keep a variety of options’ as the founder and CEO I did everything almost all negotiations choice of risk investors are negotiating to hire staff negotiations, the signing of commercial agreements are negotiated pay suppliers negotiations, even within the company is also negotiating to talk about technical issues. The best make obey other way is expressed or implied, you have a variety of options, not necessarily unusual to talk to him. choose not much, two is enough. If you have only one way to go, non-negotiated with each other is not, you waiting to be repaired it (Being at the mercy of a lone option is a recipe for getting screwed.) for talks, my experience is: * The more decision-makers involved in the negotiations, the whole thing more worthy of negotiation * If you hear someone say, ‘This is non-negotiable’, but can not tell the reason, which shows that you should look for his boss talks. * politely hint to each other, you have more patience than they are. * Sales who are generally more likely to be persuaded, because they are more sociable, and income and sales linked to .10. easier said than done Knowing is not enough. You know what I’m most frustrated thing? That is more than nine, large Part I knew before the start, but ultimately fall on them the Before founding PlayCafe, I have been working for the company in the business for 10 years (although this is the first time as CEO). If two years ago to see the top these words, my thoughts must be with you in a lot of people are now thinking the same: ‘The old story, nothing new.’ For me, the real new experience, that I very painful experience to the ‘knowledge’ and ‘line divide ‘between in Silicon Valley this place, everywhere someone will give you advice, but just as a surgeon, not personally go to surgery, the surgery will not learn. I think there must be a lot of first-hand experience, you discover the reality is so complex and full of unexpected things that a lot of people with some advice, that they will say:.. ‘only until you are in trouble, will understand what I mean by’ Yes, from the accumulation of knowledge, Experience is a wonderful thing with a high price in exchange for a variety of conflicting recommendations, such as some people say, ‘to better understand the customer’s needs,’ while others say ‘the first based on your own needs.’; some people say ‘ Do not financing too much ‘, while others said,’ Do not financing too. ‘Which view is right? Maybe it depends on the different situations, and there is no Cheapest Nike Air Force 1 High Womens All Blue Shoes uniform answer the recommendations of others like software code as guarantee can run. They’re more like coordinates on the map, you have Jordan Aero Mania to trained, and in case there is a reference to help you. I hope that I can make this fail me (and you) from the more recent success Some. (End)