Stop The Startup Madness

It’s not often I read anything said by Robert Scoble and agree with everything he has said 100%. I find I disagree with him more often than not, but usually that’s somewhere in the Twittersphere or Friendfeed-ersphere. Either way, he’s spot on with his post, The worst things startups do.

If you don’t know who Scoble is, one thing you should know about him is that he talks to a lot of startups. Everytime I turn around he’s talking to a startup CEO, CTO, visiting their offices, reviewing their products, etc. I have known Scoble to do this for years now. Anyway, from what I know as a consultant to startups, my academic training, and my observation of the industry over the last several years, Scoble’s list is accurate. Literally every item on this list are rampant symptoms among dysfunctional startups. So. If you plan on launching a startup, or you have one and you’re wondering why you’ve spent thousands of dollars and nobody is interested in your product, please review Scoble’s list and make adjustments immediately. Your livelihood (and any good employees you’ve managed to lure in) are at stake.

3 thoughts on “Stop The Startup Madness”

  1. If you like that, you should read Kawasaki’s blog posts on the lies startups tell, and the lies venture capitalists tell. The list affected my thinking so much I used it to revamp my startup pitch and won the 10 Grand top prize in a business plan competition at Baruch College.
    On the flip side, warnings like Scoble’s and Kawasaki’s also scare me to death, and I’ve never been able to launch my own ideas. There are 6 million ways to fail, and I can chart half of them out for you in a strategy document.
    Until all the conditions are correct, I’ll daydream about startup success and instead of living it. 🙁
    Liz are you still CTO of a startup?

  2. Good call, Cali. That was a good read.
    It’s kind of funny how this whole industry runs on ghost money and ghost profits but people act like it’s real money. I can understand doing those things if you funded your own company.. It’s still a bunch of bad ideas, but at the end of the day, you end up with no money instead of owing money that someone lent you AND not being able to provide ROI to your investors so that stigma follows you to your next attempt.

  3. @Hashim, no I parted ways with them in early 2009, for many of the reasons listed on Scoble’s post. I agree posts like this are scary, and definitely require some amount of risk. I’m not sure how much of a risky individual i am, but I do enjoy working with startups.
    @Bill, I thinkt he nature of startups work this way in terms of funding. Anyone familiar with the startup funding process knows the deal, but I think laymen or wannabe’s hear and see funding dollars and acquisitions take place and think this is pure profit dollars at work. I think anyone truly interested in being in this industry needs to make sure they read up on how the system works. I’m finding a lot of web entrepreneurs aren’t interested in the risks or perhaps aren’t realizing how much they are going to be held accountable for these risks.

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