Minimap
November 2020
A complete list of all the mistakes I have made:
Founder selection
A. No behavioral assessment was performed by me.
A leader lacking the necessary traits is no person to lead.
Solution: Work on challenging tasks together.
Lessons:
A wealthy founder is a dangerous founder.
Founders without camaraderie are entering a death sentence.
The necessary characteristics of a leader include charisma, cunningness, competitiveness, innovativeness, and salesmanship.
2. Team selection
A. General rule: Three non-tech co-founders forming a tech startup is a bad idea.
Issues this lead to:
Hiring inexperienced college devs.
Having a non-incentivized tech-lead.
No code review.
No communication b/n devs.
Prioritizing part-time devs over full-time devs.
Choosing the wrong codebase and framework from day 1 (due to not having tech advisers).
Solution: Take your time with the hiring process.
Lessons:
When it comes to labor, know when to go cheap.
A tech startup should prioritize quality talent over quantity.
Seek advisers for each team (i.e., marketing, tech, and design advisers).
3. Legal formation
A. Spent 30% of the company's runway on miscellaneous legal expenses.
Solution: Seek legal advice from a trustworthy, experienced perspective mentor and persuade them to help with the initial setup in exchange for equity.
Lessons:
Do not spend a majority of your runway towards legal fees.
Incorporating a business from day 1 is a waste of money -> What's the rush? First, investigate if there is a need for your product before you spend money!
Include an options pool once incorporated.
Trademarking before revenue or investment is not recommended.
4. Product
A. Prematurely developed a product during the research stage.
Issues this lead to:
Redesigning development tasks
Overload of features in an MVP
Delayed execution date
Solution: Properly research before you develop a product! (i.e., identify the problem, understand the market, competitors, value prop, monetization plan, etc.)
Lessons:
Shortcuts with development lead to longcuts. Take the time to research and design the product properly before sending that over to development.
Having an elaborate MVP defeats the purpose of an MVP. So, focus on one critical feature.
4. Management
A. I did not produce a detailed roadmap from day 1.
Issues this lead to:
Spending weeks on a business plan -> Avoid this early on.
Not prioritizing market strategy.
Ineffectively approaching market validation.
Solution: Work together on forming a realistic roadmap. The roadmap may change daily. However, having a long-term blueprint will make it easier to plan and recognize where to place priority.
B. The entire team's productivity decreased as it continued remotely.
Solution: Be remote only if you must be! (might as well hire cheap foreign labor).
Lessons:
If a team is remote, then conduct short daily syncs!
5. Logistics
Quick avoids:
A. Going cheap on a website
B. GoDaddy Domains
C. Spending unnecessary $
$1,000 on a logo.
$3,000 on a shitty marketing video.
To be further updated.