Rules for entrepreneurs - Part I

Filed in archive Entrepreneurship on July 20, 2005

I have been compiling some personal learnings over the last years - some might be pretty common sense - some might offer value. The inspiration for this comes from here. Mr. Rumsfeld has compiled a much bigger archive of some very noteworthy rules for life.

So let me start with my first 8 rules:

1) Accept the even highly specialized knowledge tends to be commoditized and accessible through databases. Instead focus on networked learning and application of knowledge from multiple sciences. Have your network of experts ready in your tool of choice.

2) If you create something (that is a company or product) make sure you can sell sooner or later through the internet. Be sure you have the potential to provide the best product in this world. (even if it's a very, very small niche).

3) Avoid businesses with huge inventory or logistics if you can.

4) Be realistic about revenues - even if you write bullish business plans.

5) If you can use guerilla marketing go for it! It gives much more feedback on your product and costs you only time not your advertising budget.

6) Go ahead and be original, because it's the people passion, guts, and daring that will win. Not just because going through life with passion and guts beats the alternative (which it does), but also because it's the only way to be successful. Today, the one sure way to fail is to be boring. Your one chance for success is to be remarkable. (Seth Godin)

7) Have extra patience. Many business models require extra patience in order to be successful. Don't be hectic - proceed with sales and marketing and make sure you won't miss the tip of the mountain. I have seen enough startups that did felt they might never make it but moved into high profitability only some years later.

8) Always have a competitive cost structure never settle with an average cost structure - it's not worth it.