How to Learn From a Failed Business

I work for a technology startup that is going out of business. While it is painful to see a company die, you can learn a lot. This article will teach you basic business principles from the lack of management at the startup I work for.

Instructions

Difficulty: Easy

1. Have a realistic business plan. No business plan equals no business. It is that simple!
2. From day 1, define your market. Know who your customers are and how you will make money. If you don't know your market, you will fail. Build it and they will come does not apply to startups! You need to find ways to score runs to win the game.
3. Mathematicians with Ph.Ds make terrible business people. Awards and accolades do not make you a business person. The company that I work for has Ph.D management. They may be able to build a better lemonade stand but they can't sell lemonade!
4. Be teachable. Be teachable, and to be safe, be teachable. If you hire business consultants, listen to them. Business people know more about business than Mathematicians with Ph.Ds know about business. Egos are not an excuse for not listening and not learning.
5. Take advice from these words of a venture capitalist. "Your mathematical theories and your degrees mean nothing. How are you going to make me money?" If you can't answer that question, don't talk to investors. Ricci flow and conformal geometry mean nothing to a venture capitalist. That is fine. Tell them how you are going to make money!
6. The answer to the previous question is not a multiple choice answer. A few good ideas is not as good as one good idea. Less is more. When you are asked to answer that question, give them one answer with a solid business plan.
7. Making money is not easy. Creating a successful company is not easy. It takes time. For the mathematical Ph.Ds, Success = Time + Money. Alter those two variables and you alter success.