Post on 13-Jan-2015
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WARNING: STARTUPS MAY BE DANGEROUS TO YOUR HEALTH
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Jordan Weisman Jordan
Weisman
SURGEON GENERAL’S WARNING: The following speech contains; gross oversimplifications, unverified correlations, nonsensical assumptions, illogical conclusions, and downright stupid stuff. Historical performance not indicative of future performance – your actual mileage will vary. None of the claims made in this speech have been verified by the Federal Food and Drug Administration. Produced in a facility that hires and retains nuts.
WARNING: STARTUPS MAY BE DANGEROUS TO YOUR HEALTH
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EntrepreneurEntrepreneurRestaurateur Restaurateur
Likely to FAIL.
Dictionary Definition:
WARNING: STARTUPS MAY BE DANGEROUS TO YOUR HEALTH
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Entrepreneur
WARNING: STARTUPS MAY BE DANGEROUS TO YOUR HEALTH
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Entrepreneur ( Icarus )
WARNING: STARTUPS MAY BE DANGEROUS TO YOUR HEALTH
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WARNING: STARTUPS MAY BE DANGEROUS TO YOUR HEALTH
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WARNING: STARTUPS MAY BE DANGEROUS TO YOUR HEALTH
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WARNING: STARTUPS MAY BE DANGEROUS TO YOUR HEALTH
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WARNING: STARTUPS MAY BE DANGEROUS TO YOUR HEALTH
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WARNING: STARTUPS MAY BE DANGEROUS TO YOUR HEALTH
ICARUS’ JOURNEYICARUS’ JOURNEY
1. Vision2. Leadership3. Funding4. Creation5. Hubris6. Failure
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WARNING: STARTUPS MAY BE DANGEROUS TO YOUR HEALTH
VISIONVISION
• Perceiving something via the eyes
• Seeing something that doesn’t exist
• Seeing something that doesn’t exist BUT should exist
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WARNING: STARTUPS MAY BE DANGEROUS TO YOUR HEALTH
LEADERSHIPLEADERSHIP
You must convince others to BELIEVE in something that doesn’t exist.
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CON MEN
WARNING: STARTUPS MAY BE DANGEROUS TO YOUR HEALTH
FUNDINGFUNDING
• The Rumpelstiltskin equation Straw + Labor = Gold Alchemy
• The transformation of common materials into precious metals (i.e. weaving straw into gold)
• Sources of Funding– Friends & Family– Angel– Venture– Crowd Funding
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WARNING: STARTUPS MAY BE DANGEROUS TO YOUR HEALTH
CROWDFUNDINGCROWDFUNDING
INSPIRE them with your vision.ILLUSTRATE that vision for them.PROVE that you can realize that vision.MARKET the KS Campaign.
People will only “invest” in your idea AFTER YOU have invested in it.
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WARNING: STARTUPS MAY BE DANGEROUS TO YOUR HEALTH
COSTS of CROWDFUNDINGCOSTS of CROWDFUNDING
• Website’s share & credit card processing– Figure on a combined 10% off the top
• COGs AND Picking, Packing, & Shipping– Figure on 15% to 20%– On the higher side for smaller campaigns
• Community management– During the funding campaign AND Throughout the
development period!
• Early adopter audience has already “bought”– Your best costumers will produce 0 revenue at launch
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WARNING: STARTUPS MAY BE DANGEROUS TO YOUR HEALTH
Giving BIRTH to something is:
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MESSY and PAINFULMESSY and PAINFULJust ask your Mother
CREATIONCREATION
To create games and game companies requires: Talent Time Money Human Sacrifice
WARNING: STARTUPS MAY BE DANGEROUS TO YOUR HEALTH
HUBRISHUBRIS
• Hubris– Excessive pride or self confidence
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THE MECH & THE MOUSETHE MECH & THE MOUSE
WARNING: STARTUPS MAY BE DANGEROUS TO YOUR HEALTH
1980 Founded FASA Corporation
1987 Founded Virtual World Entertainment
1989 Opened BattleTech Center in Chicago
1992 Tim Disney buys a majority of VWE
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THE MECH & THE MOUSETHE MECH & THE MOUSE
1978 U.S. Merchant Marine Academy
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THE MECH & THE MOUSETHE MECH & THE MOUSE
Cheap to buildCheap to operate
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THE MECH & THE MOUSETHE MECH & THE MOUSE
WARNING: STARTUPS MAY BE DANGEROUS TO YOUR HEALTH
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THE MECH & THE MOUSETHE MECH & THE MOUSE
Expensive to buildExpensive to operate
WARNING: STARTUPS MAY BE DANGEROUS TO YOUR HEALTH
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THE MECH & THE MOUSETHE MECH & THE MOUSE
Morale of the Story:
1.Don’t let early success go to your head
2.Don’t believe your own hype
3.Track data and rely on it - not on your “gut” or emotions
WARNING: STARTUPS MAY BE DANGEROUS TO YOUR HEALTH
FAILUREFAILURE
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It Sucks !It Sucks !
WARNING: STARTUPS MAY BE DANGEROUS TO YOUR HEALTH
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A team’s ability to FAIL is the best predictor of it’s eventual
SUCCESS.
WARNING: STARTUPS MAY BE DANGEROUS TO YOUR HEALTH
SUCCESS & FEARSUCCESS & FEAR
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A Tale of Turkey and Clix
WARNING: STARTUPS MAY BE DANGEROUS TO YOUR HEALTH
Turkey & ClixTurkey & Clix
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WARNING: STARTUPS MAY BE DANGEROUS TO YOUR HEALTH
Turkey & ClixTurkey & Clix
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• Cheap cool looking figures• Big armies• Figures don’t break easily• Fast playing• Rules they can understand
• For Kids• Having to Superglue and paint• Figures are expensive• Games take forever to play• Figures break easily• Rulebooks are huge
• For Retailers• Takes up too much space• Low margins
Barriers to Entry:What Kids Want:
WARNING: STARTUPS MAY BE DANGEROUS TO YOUR HEALTH
Turkey & ClixTurkey & Clix
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Gameplay:
Fast playing
Short Rules
No in-game tables or charts
Low cost, Prepainted, Preassembed figures
Retailers:
Small footprint
High margins
Organizedplay
Tooling usage and amortization
WARNING: STARTUPS MAY BE DANGEROUS TO YOUR HEALTH
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Turkey & ClixTurkey & Clix
FASA Passed – too risky
Started Wizkids
Wizkids grows quickly
Wizkids buys FASA
Topps Inc buys Wizkids
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Turkey & ClixTurkey & Clix
New product concept
Wizkids team had become risk adverse
2 years later . . .
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Turkey & ClixTurkey & Clix
WHY ? No personal financial risk Low corporate financial risk No distribution risk
Fear of Failure ! 3 Hit lines in a row Wizkids was “Golden Boy” Any Failure would be Very Public
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23% 77%
Who would you rather be?
Source: World Renowned statistician Jerry Seinfeld
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Length of Development
5 years
3 years
1 year
6 months
3 monthsWe now develop products
LIVE & IN PUBLIC
WARNING: STARTUPS MAY BE DANGEROUS TO YOUR HEALTH
• Start-Ups have Less of everything:– Less resources– Less access to talent– Less access to capital– Less bureaucracy – Less competing agendas
• Start-Up’s Superpower are that . . .
– They are expected to FAIL!
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WHY do I LOVE Start-Ups?WHY do I LOVE Start-Ups?
WARNING: STARTUPS MAY BE DANGEROUS TO YOUR HEALTH
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Thank You
Jordan Weisman
Thank You
Jordan Weisman