Blue Screen of Death

B l u e S c r e e n P a g e 1 o f 2 6 8


The Blue Screen of Death

A Desi’s Misadventure in the Land

of Opportunity

Jawwad Ahmed Farid M BA , C o l um b i a Bu si ne s s S c h o o l

Fe ll ow S o ci et y of A ct ua ri es

BC S, F A S T I C S


Published by Alchemy Technologies, 103 – 104 Amber Estate, Main Shahrae-Faisal,

Karachi, Pakistan.

http://www.alchemya.com

In the US: Alchemy Technologies, 21650 Steatite Court, Ashburn VA 20147.

http://www.alchemya.com

Copyright @ 2006, Jawwad Ahmed Farid and Fawzia Salahuddin

First Edition, April 2006

Revised Edition, July 2006

All rights reserved. Except for brief passages quoted for purposes of review or scholarly

comment, no part of this publication may be reproduced, stored in a retrieval system, or

transmitted by any means, electronic, electrical, chemical, mechanical, optical,

photocopying, recording or otherwise, without the prior written permission of the copyright

owner. Inquiries should be addressed to the publisher at the above mentioned address.

This book is sold subject to the condition that it shall not by way of trade or otherwise, be

resold, or circulated in any form of binding or cover other than that in which it is published.

ISBN 0-9785060-0-6

Cover Design: Mohtashim Ahmed

Text Design: Uzma Salahuddin

Editors: Adnan Haider, Kris Sherer

Book website: http://bluescreen.alchemya.com


“Behind every successful man is a penniless wife.”


Dedications

To l os e r h u s b a n ds a nd l ov in g wi v e s ;

To F aw z i a f o r s ay i n g ye s;

To m y A m mi ( s ) f or t he ir s up p o rt a n d pr a y er s;

To A b b a f o r b el ie vi ng i n u s de sp it e ou r

fa il ur e s ;

To W h i tn ey , Bi g g a di ke a n d K en f or a s k in g “ W h y

no t? ”

To S ar w a r a n d D en i s e fo r Av i c en a .


Ta bl e o f C o n t e n ts

Fo r e w or d . .. . .. .. .. .. .. .. . .. .. .. .. .. .. . .. .. .. 7 Au t h o r No te . .. .. .. .. .. .. . .. .. .. .. .. .. . .. .. . 11 Ch a p t er Z er o .. .. .. .. .. .. . .. .. .. .. .. .. . .. .. . 18 Ch a p t er O ne – W ho a m I .. . .. .. .. .. .. .. . .. .. . 21 Av i c e na T im el i n es . .. .. .. . .. .. .. .. .. .. . .. .. . 28

Bo ok O n e . .. .. . .. .. .. .. .. .. . .. .. .. .. .. .. . .. .. . 29 Ch a p t er T wo - M em o r ie s .. . .. .. .. .. .. .. . .. .. . 31 Ch a p t er T hr ee - B e f or e t h e B eg in ni n g . . .. .. . 36 Ch a p t er F ou r – Al e p h on t h e Sc en e .. .. . .. .. . 48 Ch a p t er F iv e – Ca l i fo rn ia .. .. .. .. .. .. . .. .. . 63 Ch a p t er S ix – H ir i n g .. .. . .. .. .. .. .. .. . .. .. . 74 Ch a p t er S ev en - P r e L au n c h . .. .. .. .. .. . .. .. . 83 Ch a p t er E ig ht – P r o ce ss . . .. .. .. .. .. .. . .. .. 1 03 Ch a p t er N in e – La u n ch . .. . .. .. .. .. .. .. . .. .. 1 11 Ch a p t er T en – B us i n es s De ve l op me nt . .. . .. .. 1 19 Ch a p t er E le ve n – T h e Si lv er Li ni ng . .. . .. .. 1 28 Ch a p t er T we lv e – T h e En d . .. .. .. .. .. .. . .. .. 1 52

Bo ok T w o – Th e Bl u e S cr ee n o f D e a t h .. .. . .. .. 1 61 Th e b lu e sc re e n o f de at h . .. .. .. .. .. .. . .. .. 1 62 Hi n d s ig ht .. . .. .. .. .. .. .. . .. .. .. .. .. .. . .. .. 1 64 Ep i l o gu e - Re b o ot . .. .. .. . .. .. .. .. .. .. . .. .. 2 06 Wh y f ai lu re ? .. .. .. .. .. .. . .. .. .. .. .. .. . .. .. 2 11 Ap p e n di x A - C a st o f Ch ar ac t er s .. .. .. . .. .. 2 37 Ap p e n di x B - A vi c e na T im e li ne s .. .. .. . .. .. 2 47 Ap p e n di x C - T h e o r ig in al l i st o f m y th s . .. 2 60


Foreword

En tr ep r e ne u r s s ee m to c o me i n tw o v ar i e ti es .

Th er e a re th o se th at b e g i n s ma ll …p er h ap s w i t h

an i n v e nt i o n cl o s e t o h o m e, b u i l di ng a p r o d uc t

to m ee t a v e ry s p e ci f i c n ee d, e it he r fo r

th em se l v es o r fo r a f r i en d i n a no th er bu si ne ss .

Th ey bu il d t he fi rs t i te r a t i o n o n a sh oe st ri ng ,

an d d e li ve r i t to th ei r in au g u ra l c us t o m er .

Th ey e x pe r i en ce so m e s u c c e s s, a nd se l l th e

pr od uc t to ot h e r c u st om er s.

Be fo re th e y kn o w it , t he y h av e a f le d g l in g

bu si ne s s . Th e b u si n e ss g ro w s w i t h ou t a

ri go ro u s bu si ne s s p l a n, b o ar d o f d i r e c to r s ,

di sc ip l i ne d m ar ke ti n g , o r a ny o f t h e ot he r

ac co ut r e me n t s o f m a tu re f ir m s .

Th es e bu si ne s s es g r o w e a s i ly u p t o th e po in t

wh er e t he e n t r ep re ne u r ca n n o l on g e r p e r s o na l l y

ma na ge ev e r y f ac et of t h e bu si ne s s . A t t h i s

po in t, mo s t of th es e e nd e a vo r s s t r u gg le ,

hi tt in g t h e w al l w i t ho u t di sc ip l i n ed p r oc e s se s

an d pr oc ed ur e s . A sm a l l pe r c e n ta g e o f t h e s e

bu si ne s s es m a ke t h e t r a ns i t io n t o m at u r e

ma na ge m e nt p r o c es s e s of p l a n n in g , i m pl e m en ti ng ,

an d m e a su r i n g . M a n y re ma in s m a l l b u s i ne s s es ,

st ay in g w it h i n t he fo u nd e r ’s co mf or t z on e. An d

ma ny d i e .

I’ ve a lw a y s c al l e d th i s bu s i n e ss f o u nd e r th e

“a cc id e n ta l e n tr e pr e n eu r ” . T h e y ar e d r iv e n b y

ne ed . T h ey c r ea te a p r od uc t t o s ol ve a fo cu se d

pr ob le m , bu t a re ra re ly d r iv e n b y a l o ve fo r


b u si ne s s in t h e ab st r a ct , o r b us in e s s a s a n ar t

fo rm . O ft en t h e y a re su rp ri se d a t t h e ir ow n

su cc es s , ha vi ng b e g u n w i t h mo de st g o a l s. T he y

so on f i nd t h a t b u i ld in g t he f i rs t p r od u c t ,

ta ki ng o n t he r ol e o f in v e n to r, is v er y

di ff er e n t t h a n th e ro le o f bu s i ne ss ma n . M os t

fa il wh en th ey ei th er ca n’ t o r w o n ’ t t ra ns it io n

fr om b u i ld i n g a p r o du ct t o b u il d i n g a b u si ne ss .

Th is bo ok i s n o t a b o ut t h e Ac c i d en ta l

En tr ep r e ne u r . I t is a b ou t t he “ p u rp o s e fu l

en tr ep r e ne u r ” . T h e Pu rp os ef ul E nt re pr en eu r

be gi ns w it h a b i g i de a . N ot t he s o l u t io n t o a

sm al l, fo cu se d p ro b l e m, bu t a n i d e a w it h l ar ge r

sc op e a nd im pa ct . F ro m t h e v e r y b eg in ni ng th e

Pu rp os e f ul En tr e p r en eu r p l a ns on bu i l d i ng a

bu si ne s s w it h im pa c t . T he y t h in k f u rt h e r

ah ea d. Th ey ha ve vi si on s o f g re at n e ss . T h e y

ar e d r i ve n by sc al e. Th e y w an t t o c ha n g e th ei r

pi ec e o f t h e w o rl d .

Bu t mo st o f al l, e ve ry P ur po se f u l E nt re pr en e u r

th at I h av e k n o w n l o v es bu s i ne ss . B us i ne s s fo r

bu si ne s s ’ s a k e . A s a n a r t f o rm . A s t h e

hi gh es t ex pr es s i o n o f t he m os t co mp le x

st ra te g i c g a m e s t h a t hu ma ns p la y .

So w ha t d o e s th e Pu r p o se fu l En tr ep re n e u r do ?

Th ey p l an o n b ig ne ss fr om t h e st ar t . Th e y p la n

on s uc ce ss . Th ey pl an o n r ap i d s uc c e ss . Bu t

mo st ly th e y p la n. T h e y p u t t h e ri gh t t ea m

to ge th e r . T h e y r a i s e c ap it a l . T he y ex ec ut e

qu ic kl y . Th e y su cc ee d o r m e et t h e B l u e S cr ee n

of D ea t h .


T h e w or l d i s l i t te r e d wi th bo ok s a b o u t

en tr ep r e ne u r i a l su cc es s. E ve n bo o k s

do cu me n t in g h ig h pr of i l e f ai l u re s b eg i n w i t h

wi ld s u cc e s s. Bu t m os t a tt em pt s t o c re at e

si gn if i c an t b u s in es s e s ou t of d u s t d o no t e n d

wi th e n tr e p re ne ur ia l s uc c e ss . Th e y e n d i n

an gu is h .

Wh en t h e A c c i de n t a l En t r e p re n e u r fa i l s i t is a

pa in fu l t hi n g , b ut th e s p h e r e of pe op le to uc he d

by t he e ve nt is l i m it e d b y t h e s c o p e o f th e

st ar tu p . W he n t h e Pu r p os ef ul En t r e p r en eu r

fa il s… w e ll , w e ar e l e f t w it h a mu ch bi g ge r h ol e

in t he g ro u n d .

Wh y i s th e r e s o l it t l e w r it te n a b o u t

en tr ep r e ne u r i a l fa il ur e, w i th th is t h e m or e

co mm on ex p er ie nc e? Fo r on e, i t t ak e s a lo t o f

co ur ag e , co nf i d en c e , a nd b o r de rl in e a ud ac i t y t o

wa lk t h e p at h of t h e P ur po se fu l E n t r e p re n e ur .

Wh en f a il ur e h a pp e n s, it sh a k es on e t o t h e v er y

co re . F ew w a nt t o ta l k a bo u t it , le t al on e

wr it e a b oo k . M o st re tr ea t to t he sa fe t y o f

tr ad it i o na l e m pl o y me n t. A f ew l i c k th e i r

wo un ds an d gi ve i t a n o t h er g o . F e w er ye t

ev en tu a l ly s u c c ee d .

“T he B l ue Sc re en o f De at h” i s an i mp o r t an t

bo ok . I t ca p t ur es t h e v e ry es se nc e o f t h e g ut -

wr en ch i n g e f f o r t i t t ak e s t o cr ea te a c o mp a n y

fr om n ot h i n g . An d e v e n t h ou g h i t i s

fu nd am e n ta l l y a bo u t f a il u r e, y ou w i ll re c o gn i z e

th at t h e d i f f e re nc e b et we en fa il ur e a nd s u cc e s s

is b u t a f ew sm a l l d ec is io ns . J aw wa d F a r i d ,

no w a su c c e s sf u l en tr ep r e n eu r, em e r g e d f ro m

B l u e S c r e e n P a g e 1 0 o f 2 6 8

f a il ur e m or e v al u a b le th an i f he ha d s uc ce ed e d .

He l e a rn ed t he pr o c es s , b ut a l s o le a r ne d m u ch

ab ou t t he i n f l ec ti on po in ts th at d e f i ne f a i lu r e

an d su cc es s. J aw w a d i s o ne o f t h e f ew t ha t

to ok s t oc k o f th e l es s o ns le a r ne d , g r ea tl y

ex pa nd e d hi s p er s o na l c a p it a l , an d g av e i t

an ot he r go .

In t he en d, if y ou hu n ge r s uc c e ss , i t is m os t

im po rt a n t t o s t ud y fa il ur e.

Sh an e A . C h a l k e

CE O

Fi ne tr e Co r p o r a ti o n

ww w. fi n e tr e . c o m


Author Note

Du ri ng my e a rl i e r a ca de mi c a n d p r o f e ss i o na l

li fe i n P a k i st an , I n ev er t ho u g ht I wa s

de st in e d fo r a n M BA a t a n I vy L e ag u e sc ho ol ,

th at I w ou l d t ak e t h e pl un g e in to S t ar t up La nd ,

or t ha t I wo u ld fa il m is er ab ly at a nu mb er o f

at te mp t s to ea rn a l iv i n g b y c ut ti n g my se lf a

ch ec k.

To a si gn if i c an t e x te n t , t h es e t ho u g ht s h a d

be en r e in f o r c e d b y m y f at he r’ s e xp e ri e n ce s a s

an e nt re pr en e u r. H i s c h o i ce o f l i ve li h o od l e f t

tw o st ro n g b u t c o n f li c t i n g i m p r e ss i o ns o n m y

yo un g m in d. F i rs t, w o rk in g f or h im s e l f af f o r de d

hi m a d eg r e e of pe rs on a l , pr o f es s i on al , a n d

fi na nc i a l f l e x ib i l it y t h a t e ve r y o ne en vi ed .

Un fo rt u n at e l y , t he do w n si d e w as th e

un pr ed i c ta b l e s c h e d u le of hi s i nc o m e s tr ea m

th at a t t i m e s le ft my f a m il y w on de ri n g wh et he r

we w o u l d b e be tt er of f w i th re gu la r p ay c h ec ks .

As a n a du l t , p u tt in g my a ca d e mi c a n d

pr of es s i on a l t ra i n in g to u se i n ea rn in g a

pa yc he c k si g n e d by so m eo n e e l se b e c a me m y fi rs t

go al ; ri sk in g g u ar a n te e d pa y t h ro ug h se lf -

em pl oy m e nt j u s t w a s n’ t ko sh e r .

Af te r p ay i n g my co ll eg e d ue s a nd s u c c e ss fu l l y

ha nd li n g th e c ha l l en ge s f ac i n g a y o u ng a n d

ri si ng co ns u l ta n t , I th ou gh t I wa s w el l o n m y

wa y t o se c u r i ng th at g o a l f o r li f e . Wi t h a

ba ch el o r ’s de gr ee i n c o m p u te r s c ie n c e a nd a n

AS A f ro m t he S o ci e t y o f A c t u a r ie s ( As so ci a t e o f


S o ci et y o f A ct ua r i e s) un de r m y b e l t , th e r e w er e

st il l a nu mb er of mi le st o n es to be re ac he d o n

my ca r e er ca le nd ar , b ut th e p at h a nd th e p a c e

we re bo th ri gh t. I wa s o n t he c o ve te d

pa rt ne r s hi p t ra ck w i th m y f ir m, ma n a g e d a t ea m

of 1 3 p ro f e ss i o n al s g en e r at i n g th re e ti me s

th ei r gr os s an d o v e r he ad ex p e n s e s, a n d r a n a

po rt fo l i o of e ig h t i nt e r na ti on al c li e n ts t h a t

ke pt c o mi n g b a ck w it h r e p ea t b us in es s . Fo r

so me on e a f ew ye ar s ou t o f s c ho ol , I wa s qu it e

ha pp y a nd s a t is f i e d wi t h th e di r ec t i on m y l i f e

wa s ta k i ng .

In M a r c h 1 9 9 7 , a c o mb i n at io n o f ev e n t s ch an ge d

al l t h a t. Th e f i rs t w as th e a cc e p ta nc e of Ni da ,

my y ou ng e r s i st e r , to M I T, H a r va r d , C al te ch ,

an d C o rn el l af t e r h er A l ev e l s (U ni v e rs i t y o f

Ca mb ri d g e e q u i va l e nt of hi gh s c h o ol ) . M IT an d

Ha rv ar d ga v e he r fu ll y fu n d ed o f fe r s t o

co mp le t e fo ur - y ea r d e g re e s i n Bo st o n . M y f am i l y

an d I f ou n d ou t on e f in e m o rn i n g a t 4 :0 0 a . m. ,

wh en N id a wo ke a ll o f us u p by b an gi ng o n ou r

do or s a nd ju mp in g u p a n d d ow n w it h a n a th l e ti c

ab il it y th a t ha d n o t be e n w it n e ss ed b ef o r e i n

ou r f am il y. T hi s w as th e f ir s t h i n t o f

so me th i n g in ou r s h a r e d ge ne po ol t h a t

su gg es t e d an i nt e l le ct ua l pr of il e su it a b le t o

at te nd i n g a s ch oo l wi th t he r i g ht p e d ig r e e i n

th e Un i t ed S t a t es .

So on a f te r N i da ’ s mu lt ip l e ac ce pt a n c es ca m e a

ch an ce m ee t i ng wi t h a f r i en d w h o th o u gh t t h a t

ar me d w it h a n I v y Le a g u e M B A , t he re w as a

hi gh er p a th w ay a bo v e th e o n e th a t I wa s

cu rr en t l y on w hi c h c ou l d b e ex pl or e d e ve n


t h ou gh I p la nn ed t o r e t u r n t o P ak i s ta n af te r

gr ad ua t i on .

As i t h ap p e ns w it h d e st i n y, t hi s b it o f

in sp ir a t io n ( Ni da ) an d b i t o f gr ee d ( fr i e nd )

wa s f o ll ow ed by c on fl ic t i ng a d v ic e f ro m t w o

el de rl y in di v i du a l s I r es pe ct e d. Th e fi rs t

pe rs on c o n f i r me d t h at a to p - r a nk e d M BA wo ul d

op en d oo rs t ha t I wa s no t pr i vy t o in m y

sh el te r e d ex i s te n c e an d t h e se c o nd v e h em e n tl y

de ni ed th e p os s i bi li ty o f a ny su ch ru mo r s .

Wh en I l o ok b a ck no w , I th in k t he d e ni a l s ea le d

it . T a ke a 2 6 -y ea r - ol d , dr i v e n, al ph a ma le ,

fi rs t te ll h i m th at p ro f e ss i o na l p ar ad is e

ex is ts on t he ot he r s id e of th e d o o r, t he n t el l

hi m th e r e i s n o d o o r an d th e n w a t c h .

Th e d o o r t h a t I o p en e d to ok m e t o Co l u m bi a

Bu si ne s s S ch oo l a nd b e y on d . Di d I f in d

pr of es s i on a l p ar a d is e? I do n’ t kn ow . I w en t

lo ok in g f or an sw e r s t o q u e s t i on s a n d fo u n d m or e

di ff ic u l t qu es ti on s ; t he re we re n o e a s y

an sw er s . W h i c h i s o n e w ay o f pr es en ti n g t h i s

bo ok —t h i s bo o k is n ot a b ou t a n sw er s, q ui c k ,

ea sy , o r o th er wi se . I t d oe sn ’ t d o c u m en t a su re -

fi re w ay to s uc c e ed or f ai l , g et ri ch o r

fa mo us . It t e l ls t h e st or y of m y li fe as i t

ha pp en e d , c ir ca 1 9 9 9 – 20 06 . S ev en ye a r s t ha t

ma rk ed a fu ll c i r c le o f d um pi ng a si za bl e

pa yc he c k , f am il y, a nd fa m i li a r it y; mo v i ng t o

Lo nd on ; w or ki n g fo r G ol d m an Sa c h s ; st a r t i ng t h e

MB A a t C ol u m bi a ; l i vi n g o n ca m p us t w o s tr e e ts

sh or t of H ar le m; h a v in g a b l a s t w r i t i ng “ t h e

bu si ne s s pl a n ”; p ic k i n g un ce rt ai nt y o ve r

ro ut in e ; es c a pi n g t o C al i f or n i a; bu ry in g


v e nt ur e s n u m b e r o n e , t w o , a nd t hr ee ; re tu rn i n g

to fa mi ly an d f am i l ia r it y ; a n d r e p e a t. No th in g

to o p r o f ou nd , d ee p , o r i ns i g h tf ul , j u s t th e

st uf f l i fe , n o t d r e am s, i s m a de o f .

Wh y t h e b o o k ? We ll , e v e r y ot he r w e e k I m ee t

so me on e w ho h a s a n i nt e r e s t i n m y p a st b e ca u s e

he o r s he is pl a n n i ng t o s ta rt so m e t h in g o f

th ei r o wn a n d wo ul d l o ve t o ha ve a ro ad ma p o r a

ch ea t s he e t . Ra t h e r th an ha n d i n g o ut i nf or ma l

ad vi ce d is t i l le d on t he s po t, I th o u gh t

in si gh t s co ll ec t e d i n m o m e nt s s na tc he d f ro m

sl ee p, w or k, t ra ve l, f am i ly , a n d b o r e do m w o ul d

be f ar m or e r e l ia b l e.

I d i d n ’ t w an t t o w ri t e a p r e s c ri p t iv e t e x t

si nc e in st ru c t i on s ne ve r di d m e a ny g oo d . Y o u

ha ve t o fo ll ow t h e m , w hi ch i s s om e t hi n g I a m

no t g oo d at . S o I c h o se th e n e xt be st th in g an d

wr ot e a de sc ri pt iv e on e . Ma n y s uc h to me s ar e

de di ca t e d t o s u c ce s s , mo n e y , n et w or k s ,

co nn ec t i on s , a nd am b i ti o u s t e a m s o f

pr of es s i on a l s w ho c ou l d . T hi s on e fo c u s es o n

on e wh o co u l d n ’ t.

Ju st a s i n t h e fi r s t bo ok I r e ad wh er e t he h er o

ac tu al l y d ie d an d wa s no t mi r a c ul o u sl y

re su rr e c te d ( W il l i am G ol dm an ’ s M ar at ho n Ma n 1) ,

I w an te d to t e ll t h e re al st or y. N o t li k e a ba d

B m ov i e he ld to ge t h e r b y a c o l l ag e o f b or r o we d

1 W i l l i a m G o l d m a n s o l d o u t a n d d i d j u s t t h a t i n B r o t h e r s , t h e s e q u e l t o M a r a t h o n M a n i n w h i c h S c y l l a i s w h i s k e d o f f t h e s c e n e o f h i s d e a t h a n d g i v e n a n e w l i f e .


a n d u n li ke ly p l ot s , b ut l ik e o l d lo v e l e t t e r s

dr aw n f r om f o r g ot t e n re ce ss e s o f o u r l i v es .

Th e l o v e l et te rs w e r e a p r ob le m . Fi ve mo ve s i n

fi ve y e a rs h a d t a k e n t he ir to l l i n t he f or m o f

mi sp la c e d d ia ri es , st o r a ge b ox es , a nd l iv e s .

Th e o n ly c o n st a n t w as d a t a ba c k up . I co ul d n ’t

do l o v e l et t e rs , b ut I co ul d ce rt ai n l y d o

em ai ls ; e m a i l s ex tr ac te d f ro m c om p u t er ba c k u p s

do ne i n t he l as t d ay s of r us he d m ov e s i n

Lo nd on , N ew Y or k , s o ut he rn Ca li fo r n ia , n o r th e r n

Vi rg in i a , a nd K ar a c h i. W i t h t he h el p o f a

li tt le co n t e xt , I ha ve u se d t he s e em a i l s t o

te ll t h e A vi ce na s t o ry m y wa y— no t i n w or ds b u t

in b i t s —s o m e r a n d o m , s om e d e l i b er a t e. M y h o p e

is th at t h e se c h oi c e m o r s e ls w i ll h el p

re co ns t r uc t i n yo u r m in d th e s e tt in g in wh i c h

th ey w e r e o r i g i na l l y wr it te n .

Th at i s j u s t Bo o k O ne . I n Bo ok T wo , I t a k e th e

ma te ri a l an d m i x a nd ma tc h i t w it h l e ss on s t ha t

I h a ve le ar n e d , m y li st of “ do n ot do ’s ” . I f

yo u h a t e em ai l s , f ee l f re e t o sk ip Bo ok O n e an d

go s tr a ig h t t o B o o k Tw o. I f y ou e ve r f i n d

yo ur se l f wo n d e r i ng h o w a nd w h er e I ca m e u p w it h

a l e ss on in B oo k T wo , he ad ba c k t o t he e ma il s

an d t r y to f i gu r e ou t e x a c tl y w he r e th e l e s so n

wa s le ar ne d. I f y o u h a t e ci r c u l ar r e f er e n ce s 2

i n E x c el o r ob l i q ue t re a s ur e h u nt s, t hi s b o o k

is p ro b a bl y n o t f o r y ou .

2 A r e f e r s t o B , B r e f e r s t o A , y o u n e e d b o t h t o f i n d o u t A a n d B ’ s v a l u e .


I f y o u a re t ru l y l o st , t he a p p e nd i c es at th e

en d o f t h e b o o k w il l h e lp y o u g et y o ur b e a ri ng s

wi th r es p e c t to c ha r a ct er s, t i me li n e s an d

le ss on s .

Pe nn in g t hi s t al e h as be e n gr ea t t he r a py . I t

fi na ll y he lp ed m e c om e to t er m s wi th m y

pe rs on a l f ai l u re , a l lo w e d m e t o re v i ew d a y s

pa st w it h a m or e d i si n t er es t e d pa ir o f ey es ,

an d c h a lk e d ou t t h e pa th f o r a n ew a d ve n t ur e

th at h a s n o w b e co m e A lc he my ( ww w . a l c he m y a. co m) .

Al ch em y is a n E nt e r pr i s e R i sk ad vi s o ry f i r m

th at h a s g ro wn an n u a ll y b y m or e t ha n a hu n d re d

pe rc en t y ea r - o n- y e ar fo r t he l a s t t h r e e ye ar s

an d i s o n t r a ck to be at th at p e r fo rm a n ce ag ai n

in o u r fo ur t h y e a r 3. W h e r e my e a rl i e r fa i l e d

ve nt ur e s n ev e r r ea c h ed r e ve nu es n or p ay i n g

cu st om e r s, A l ch e m y ha s al re ad y c r o ss ed a n

an nu al i z ed re v e nu e r u n ra te of ei gh te en m i ll io n

ru pe es , p ic k e d u p t w o in d u s t r y a n d pe er aw ar ds ,

em pl oy s 25 p e o pl e a n d i n th e li st o f i ts 3 5

cu st om e r s c o u n ts t h e c e n t r a l ba nk o f Pa ki st a n ,

th e l a r ge st l i fe i n s u ra nc e c om pa ny , t he l a rg e s t

br ok er a g e h ou se , th e l ar g e st s t o c k ex ch an g e ,

th re e of t he fi v e l ar g e st b an k tr ea su r i es a s

we ll a s t w o te n bi l li o n d ol l a r r eg io na l b a n ks .

In te r m s of ma rk e t sh a r e A lc h e my c u s t om er s

re pr es e n t m or e t ha n 7 5% of ba nk in g a n d 80 % o f

in su ra n c e as s e ts i n Pa ki s t an . W i th o u t p u tt i n g

to w o r k l e s s o ns th at w e r e l e a r n ed fr om e a r l ie r

3 Y e a r l y g r o s s r e v e n u e g r o w t h r a t e s - 1 0 0 0 % y e a r 2 , 1 2 3 % y e a r 3 , 2 1 6 % y e a r 4 .


f a il ur e s a nd r ei n f or ce d w hi l e w ri t i ng t hi s

bo ok , t h is w o u l d n o t be p os s i bl e .

A n um be r o f p e o p le , fr ie nd s a n d f a m i l y

pr im ar i l y, p a i d f o r th i s j o yr id e . S i m p l e w o r d s

wi ll n e ve r b e e n o u g h t o th an k t he m f or t h e i r

ge ne ro s i ty , un d e rs t a nd in g , s ac ri fi ce s a n d

su pp or t o ve r t h e l as t t hr ee an d a h a l f d e c ad es .

Ra th er th a n n a mi ng t he m o ne by o n e , I wo ul d

ju st l ik e t o sa y t h an k y o u t o al l o f y o u w h o

ha ve p us he d me w h e n I w a s r e a d y t o q ui t an d

as ke d m e t o st ep b ac k w h e n I w as s e t to di e

tr yi ng .

Ja ww ad A hm e d F a ri d

Ka ra ch i , P a k i s t an .

ww w. al c h em y a . c o m


Chapter Zero

“I s t h a t wh a t th e y ar e t e ac hi n g at bu s i n es s

sc ho ol th e se da ys ? T o wa lk aw a y f ro m a s ho t a t

a f ew h un d r e d mi l l io n f or se v e nt y t h o us an d

af te r t a xe s ? ”

Yo u h a ve n e v er me t Sa rw a r . Sa r w ar t o fr ie n d s,

SM t o pa r t n e rs an d c l i e n ts , M r. M u s h ta q t o

ot he rs . D ir e c t a nd c u rt n ow , a tt e n ti ve a n d

ch ar mi n g a f ew se co nd s l a t e r . Yo u c ou ld pr ed ic t

hi gh t i de s a n d p ha se s o f th e m oo n , b ut yo u

co ul d n ev er t e l l w he r e yo u s to od w i th hi m . T ak e

an a rt i st , t h ro w i n th e ri g h t m ix o f e ye ,

mo od s, c on t r ov er sy , aw kw a r d ne ss , co nf l i ct , a n d

co lo r a n d y o u w il l ha ve S ar w a r.

Wi th a n a ur a o f m ys t i qu e an d a hi nt of m is ch ie f

in h i s v oi c e , h e l o ve d t h ro w i ng c ha l l en g e s a t

un su sp e c ti n g a ud i e nc es . T h e wi s e r on e s w al k e d

aw ay ; t he le ss f o r t un a t e t oo k th e b a i t. I a m

no t s u r e i f it w as w i s d om , f o r tu ne , or t h e

ab se nc e o f b o t h th at le d t o t he co n v e rs at i o n w e

ha d ju st f in is he d. L oo ki ng b a c k , I k n ow t h a t

th e b o o k th a t fo l l ow s w o u l d n e v er h a ve b ee n

wr it te n if e i t h er h ad p re va i l ed .

Th e s h ot a t a f e w h un d r ed m i l li o n wa s a

bu si ne s s pl an t ha t ha d b ee n w r it t e n, te s t e d ,

an d p u t a s i d e . M y g ro u p ha d go tt e n a d ec en t


g r ad e o n t he c l a ss p r oj ec t, wh ic h w as th e fi rs t

wa rn in g si gn . I n a w or l d of c o n t r ar i a n

su cc es s e s, a n y p ro j ec t t ha t g ar n e rs mo re t h an a

C s h o u l d b e i nt e r pr et ed a s a fa il ur e. In ou r

in fi ni t e wi s d om , w e ha d s he l v ed it b e ca u s e

ev er y m em b e r of t h e or i g in a l te am w ho ha d

to uc he d t he pl an h ad ch o s en c e rt ai nt y o ve r

am bi ti o n . A rn o w as of f t o C SF B i n L on do n, K e n

to Hu d s on Ri ve r I n l a y, K a ma r t o B CG in Bo s t on ,

Ju n t o K or ea , a nd Da ni el to th e p ub l i c p ol i c y

sc ho ol d ow n t h e s t r ee t.

As fo r m e , t he s e ve nt y t h ou sa n d af t e r t a x e s

we re t w o o f f e rs , o ne i n N ew Y o rk C it y, t h e

ot he r i n T am p a , Fl o r i da . I h ad be en a

co nf or m i st mo st o f my li f e, th e g uy w h o w an te d

to b e l o ng , b e li ke d, a n d w ho a lw a y s d id th e

sa fe t hi ng . Un t i l , th at i s, S a r wa r d e ci d ed t o

pl ay t r ut h a n d d a r e. Th e od ys s e y t h a t b eg a n

wi th h i s w or ds to o k us a c r os s t he Pa ci fi c, th e

At la nt i c , a n d b ac k ; p u t u s i n t he b o a rd ro o m s o f

th e t h i rd l a r ge s t ba nk a n d th e m os t a dm i r ed

au to mo b i le ma n u fa c t ur e r o n th e p l a ne t; a n d m a d e

Ya ho o a nd R e u te r s c a ll u s th e s am e da y m y

ap ar tm e n t o w n er p la ce d an e vi c t i o n n ot ic e

ou ts id e my d o o r. I t a ls o ta ug ht m e so me th in g

mu ch m o re i m p o rt an t— t h e w is d o m o f w al k i ng aw a y ,

bo th f r om ki ng do ms in ou r m in d s an d f ro m e a c h

ot he r.

Th ey sa y G o d f a s hi o n ed pa r a di se af te r

Ca li fo r n ia , w h i c h i s w he r e I l ef t S ar w a r a y ea r

an d a ha l f la t e r f or e x ac tl y $ 68 ,4 00 a f t e r

ta xe s. I le f t be ca us e it wa s t i me to sa y g o od -

by e. T h is w as on e t h i ng t he y h ad ta ug ht w e l l a t


C o lu mb i a : f i rm h a n ds ha ke a nd d on ’t f o rg e t t o

se nd a t ha nk -y ou n o te la te r. T h er e w er e n o

ch er ry t re es , su nn y af te r no o n s, o r ol d fr ie nd s

at t h e l a st r it e s . I we n t to t he g y m , s wa m a

fe w la ps , an d wh en I c am e ba ck i t wa s ov er . I

ha d w a s he d m y se l f cl ea n o f t h e s pi ri t, d o u b ts ,

an d he a r tb r e a k . O n l y de bt s r e ma i n e d .

An aw k w ar d c o n ve rs a t io n w i t h S M an d D en i s e

st ar te d th e d i se n g a g e me n t p ro c e ss . He d ro ve m e

ou t t o Da na Po in t ju st p a st t h e Ri tz at L a g un a

Ni ge l. A sh or t ho p d o w n st e e p , c r e e p e r- li n e d

st ai rs a nd w e we re o n a be ac h th at w as j us t a

sh ad e l ig h t er t h a n t he m e ss w e w e r e in . W e

wa lk ed , l is t e n e d t o t h e s e a br ee ze , e nj o y e d th e

su ns hi n e , a nd t al ke d. T h e Pa c i f i c w a t c he d u s

si le nt l y as we c h a t te d a bo ut w h y, wh y n o t ,

fa it h, a nd o u r pl a c e i n th e l i v es t h a t w e ha d

pu t o n h o ld be ne a t h t h e C al i f or ni an sk y. I t

di dn ’t he lp . I d i d n’ t h a ve th e an s w e rs h e

ne ed ed ; h e d id n’ t k no w t he q u e s ti o n s I w a s

an sw er i n g.

Th is i s ou r s to r y . T he re ar e n o h ap p y en di n g s

at th e e n d o f t hi s b o o k . A v i ce na w a s d ea d ; l on g

li ve A v i ce n a !


Chapter One – Who am I

and why did I write this book?

I w a s b or n i n Ka ra c hi 4 b ut sp e n t ev er y ot he r

su mm er i n Bo mb ay . N e it he r o f th e tw in c it ie s

co ul d su rv iv e t wo c on s e cu ti ve s um me rs of m y

lo vi ng at te n t io n . I st il l r ef e r to m y se l f as a

Bo mb ay w a la (m ea ni ng f ro m B om ba y) f ir st a n d a

Ka ra ch i i te s e c on d . B o mb ay , af t e r my r e f us a l t o

ce as e an d de si st , fr om u si n g t h is u n s an c t io ne d

af fi li a t io n , s w it c h ed t o th e na m e M u mb a i .

At th e i mp r e s s i on a b le ag e o f 1 4, I f o un d m ys e l f

wo rk in g a s a n in t e rn i n a hi gh -t ec h s t ar t u p

na me d N ex t H a r dw ar e Sh o p . T he r e wa s a ct i v e

de ba te on wh et he r i t w as Sa rw a r or St ev e J o b s

wh o c a m e up wi th t he na m e f ir s t an d w ho s h o ul d

su e w h o m. A ll th e m o r e s o b e c au s e S a r wa r ’ s N ex t

so ld a n d r e p a ir e d Ap pl e c om p u te rs i n P ak i s ta n 5.

Be fo re lo ng , i t r ea ll y d id n’ t m a t t e r si n c e b ot h

Ne xt s fi rs t s li p p ed i nt o d i sr e p ai r a nd t h e n

ob sc ur i t y.

4 T h e c o m m e r c i a l c a p i t a l o f P a k i s t a n , K a r a c h i b o a s t s a p o p u l a t i o n o f 1 5 m i l l i o n a n d a c o s m o p o l i t a n m i x o f s o u l s w h o a r e a t e a c h o t h e r s ’ t h r o a t s m o r e o f t e n t h a n n o t . 5 I n t h e m i d e i g h t i e s , w i t h t h e b l e e d i n g e d g e d e f i n e d b y 4 . 7 M h z p e r s o n a l c o m p u t e r s , r e p a i r i n g M a c s o f f Z a m z a m a i n K a r a c h i w a s a s h i g h t e c h a s h i g h t e c h c o u l d g e t .


I t wa s at Ne xt th a t I se t t h e p re ce de nt fo r th e

re st o f my l if e — b lo wi ng u p po w e r su p p li e s a n d

wr it in g of f e x pe n s i v e a n d ( th e n ) ra r e p or t a bl e

co mp ut e r s. Wi th i n a f ew da ys of my ar ri va l, I

wa s b a ni sh ed f ro m th e o r g a ni za t i on ’ s w or k s ho p

an d al l th in gs e l e c t ri ca l . O v e r t he n ex t tw o

de ca de s m y f a mi l y an d f r i e nd s a dd e d to t h i s

“c an ’t - t ou c h- t h is 6” l i s t pl as ti c ( ba gs ,

wr ap pe r s , Zi p l oc a n d th e sp en d i ng f r i en d l y

ki nd ), p l um b i ng , d r iv i n g , ba by s it t i n g, r e a l

wo rk , a n d t h e a bi l i ty t o ea r n a l i v i ng .

Ye ar s o f s lo th an d a n i na bi l i ty to ma ke qu i c k

de ci si o n s u lt i m at e l y p re s e nt ed m e wi th a c ar ee r

ch oi ce b et we en s of tw a r e en g i n ee ri n g o r

ac tu ar i a l s c i e n c es . I f a il ed to pi c k ei t h e r on e

in ti m e a nd ha d to op t f or b ot h. Th i s p ro f o un d

co mb in a t io n l ed t o a ca ll in g de v o t ed t o

bu il di n g r e a l ly b ad a c t ua r i a l so ft wa re ,

fo ll ow e d by e q ua l l y d is a s tr ou s a t t em pt s t o s e l l

th e s a m e. S o m e wh er e al o n g t hi s p at h , I ma na ge d

to pi c k up an FS A (F el lo w S oc ie ty of Ac t u a ri e s )

de si gn a t io n a n d a n M BA fr om C o l u mb i a B us i n es s

Sc ho ol (t h e o n e in Ne w Y or k) a nd d e c i de d t o

st ep o u t i n t o t he r ea l wo rl d on m y o wn .

My in te rn at io n a l c a r e e r be ga n w it h a ta l e n t fo r

ge tt in g lo s t i n L o n d on ( f i r st ), B os to n (n ex t) ,

an d W a s hi n g to n D . C . ( la st ) o n c ol d a nd w e t

6 I m m e d i a t e f a m i l y m e m b e r s o n m y a b i l i t y t o d e a l w i t h p l a s t i c : “ Y o u c a n ’ t a s k J a w w a d t o d o a n y t h i n g w i t h p l a s t i c s i n c e h e i s h o p e l e s s w i t h i t . W e c a n ’ t e v e n u n d e r s t a n d w h a t C o l u m b i a s a w i n h i m o r h o w h e e v e n s u r v i v e d L o n d o n , N e w Y o r k , C a l i f o r n i a a n d V i r g i n i a ” .


w i nt er ev en in g s . T h i s w a s b a l an c e d b y a si mi la r

ta le nt fo r g et t i ng l os t i n J ed da h ( fi r s t) ,

Du ba i ( ne x t ), an d R iy a d h ( la st ) o n h ot an d

hu mi d s um me r n ig ht s. Al on g w i th my a d ve nt ur es ,

I d i sc ov er ed mi sm a n ag e me n t , l at e de li ve ri es ,

bu dg et ov er -r un s, al l- ni g h t er s, pe rs on al i t y

co nf li c t s, Mo u n ta i n D e w, na c h os , B o b Se ge r , 10 -

sp ee d bi ke s, Co s t c o , cr e d it c a r ds , m i dl i f e

cr is es , P ac if ic C o a s t H i g h wa y , wo rk in g w it h

fa mi ly , a nd bu gs t h a t de f i e d p es t i c i de s a n d al l

kn ow n la ws o f ph ys ic s, b io l o g y, a nd c he mi st r y .

I al s o l os t th e e q u iv a l en t of m y fo r e fa t h e rs ’

co mb in e d li fe ti me e a rn i n gs i n l e s s t ha n a y e a r

an d to pp ed t hi s du bi ou s di s t i nc ti on b y qu ic kl y

bo rr ow i n g a n d t he n r ep e a te dl y l o s i ng s i mi l a rl y

en or mo u s a mo u n ts w i t hi n p r og r e ss iv el y sh or t e r

in te rv a l s.

In th e h op e t ha t m y c hi l d r en m a y s om ed ay l e ar n

fr om t he i r f a th e r ’s m is a d v en t u re a nd t h at m y

fr ie nd s , fa m i l y , a n d p ar e n ts ma y f o r gi v e m e fo r

my d i s p la y s of g r e e d, ig no r a n ce , a r r o g an c e ,

se lf is h n es s , a ng e r, a nd q ui te o ft en j us t pl ai n

ba d m a n ne r s , I w ro te th is b o o k. In st ep w i t h m y

ch ar ac t e r, I e xp e c t e ve ry on e t o p ic k u p a f e w

co pi es a nd p a y fo r th em . Ra nd o m s tr a n ge r s a r e

ex cl ud e d f ro m th i s c o n d it i o n bu t th ei r

co mp li a n ce w o u l d s t il l be a p p re c i a t e d.


And now for the official reasons:

Id ea s f or a ne w v en t u re a rr i v e w it h a mo m e n t o f

bl in di n g i ns i g ht . S o me s t ar t a s ac c i d en ts ;

ot he rs ta ke u s y ea rs of wa n d er in g e ff or t t o ge l

th e r e a l c o n c ep t i nt o s h a pe . R e g ar dl e s s o f th e

ca us e, fo r m os t n ew v e n t ur e s , t he fl as h o f

in sp ir a t io n i s fo ll ow ed b y a d o w nh i l l jo u r n e y

th at f ad es i nt o i n s i gn if i c an c e . It is a r ar e

ve nt ur e w ho se or i g i n al v i s i on a n d p ot en t i al ar e

fu ll y r e al i z e d .

Wh y i s t h at ? U nl i k e p ar e n th o od , t he r e is n o

pa te rn a l i n s t i nc t t ha t g u i de s u s i n n u rt u r in g

an d g ro wi ng yo u n g b u s in es se s . Be y o nd t h e

mi ss in g pa te rn a l i n st in c t , th er e i s a n

ob se rv a b le p a tt e r n o f r ep e a te d f at a l is t i c

be ha vi o r th at in d i c a te s f a i lu re i s ne i t h e r w e l l

do cu me n t ed n o r we l l u nd er st o o d.

My f a s c in a t io n w i t h fa i l u r e h as no w s p an n e d 1 5

ye ar s — ye ar s s pe n t wi th ne w v en tu re s i n s o m e

sh ap e o r fo r m , b e it a s i nt e r n, em pl oy ee ,

co ns ul t a nt , c u st o m e r , ve n d o r, o w n er , i nv e s t or ,

st ud en t , m e n t o r, or in n o c e nt by st an d er . A n d I

fo un d t he sa m e p ar al l e ls in ev er y d om ai n: r is k

ma na ge m e nt , i n su r a n c e , c ou n se l i ng , co ns ul ti ng ,

of fs ho r e ou t s ou r c i n g , e - e du c a ti on , c ap ac it y

bu il di n g , tr a i ni n g , te ch n o lo g y , an d fi na nc i a l

se rv ic e s . Y et m o s t co nt em p o r ar y l i t e r at u r e

th at I ca me ac ro ss f oc us ed on D os . I ha v e b ee n

ha rd -p r e ss e d t o f in d g o o d m at er ia l o n Do n ’ t s .


A t ti tu d e s, h e lp f u l hi nt s, p r a c ti ca l an d

im pr ac t i ca l a dv i c e a bo u t mo n e y, p r od u c t s ,

cu st om e r s, em pl oy ee s — yo u n am e it a n d so me o n e

to ok t he ti m e t o w ri te a bo ut t h e ri g h t w a y o f

do in g i t .

Wh at a b ou t t he w ro ng w a y ? Ev er y t i m e I w en t

do wn in fl am es , I wo ul d h av e a p pr ec i a te d

so me th i n g a l o n g t h e li n e s o f "b re ak t hi s an d

fo ll ow in s t r u c ti on s i n c a s e o f a n e m e r ge n c y. "

Po st fa il ur e s , r a t he r t ha n r ea d i ng ab o u t

su cc es s e s, as a t h e ra p e u t i c e x e r ci s e I wo ul d

ha ve l o ve d t o re ad ab o u t ot h e r f ai lu re s. A f te r

bu rn in g t hr ou gh t h r e e y ea rs o f my l i fe an d

sa vi ng s a nd m o ne y t ha t I di d n ’ t h av e, I d id n’ t

wa nt t o re ad ab o u t th e o n es w h o g o t aw ay . I

wa nt ed to re ad ab o u t t he on es wh o d i d n’ t , t h e

lo se rs wh o p ro ve d t ha t I wa sn ’ t th e o nl y o n e .

Ev en d u ri n g th e i n - be t w ee n y ea r s wh en I w as a

re gu la r w a g e ea rn er , j us t p la i n si m p l e m or bi d

fa sc in a t io n w o u l d m a k e m e p i c k u p t he l on e b oo k

on f a i l ur e a m on g s he lv es st a c k e d w it h se cr et s

of b us i n es s s u c ce s s a t th e l o ca l B o r de r s s to re .

On a p e r so na l a n d r el ig io u s l e v e l , I b e li e v e

th at t h e o n e th i n g w e s o re l y ne ed i s g o o d

co mm en t a ry o n su re - f ir e w a ys t o fa il . O u r

de si re to co m p e te an d s uc ce e d is th e r oo t ca us e

of al l e vi l ( im a g in e t hi s d el iv er ed i n a n on -

ev an ge l i ca l t o ne w i t h j u s t t h e ri gh t hi nt o f

ma dn es s i n t he ey es ). A d as h o f f ai lu re ev e r y

no w a n d t he n w il l do al l of us a w o rl d o f g o od .

Fo r o n e, it i s fa r ea si e r to f in d G o d o r t h e

eq ui va l e nt s p i ri t u al de i t y w he n y ou a r e do wn ,

lo st , a nd co nf us e d as co m pa r e d t o w h e n y ou ar e


b u sy c e le br at i n g v ic t o ry . F o r a no t h er , f a i lu re ,

wi th t he c om pa ra ti v e i s o l at io n th at i t br in gs ,

is a g r ea t t im e to re -e x a mi n e y ou r l if e an d t o

de ci de i f t h i s is w ha t y ou w a n t ou t of it . A

to ta l s ys t e m re b o o t is a l so a go od o p po r t un it y

to t a k e an in ve nt o r y o f y ou r r es ol ve , y o u r

co mm it m e nt , a n d y o u r dr iv e t o s u c c e e d.

Fo r m o s t o f u s , f ai l u re re p r es en ts th e st u f f o f

ni gh tm a r es . W h a t w i ll h a p pe n w h en t h e re i s n o

mo ne y i n th e b an k a c c ou nt ? I f I m is s m y cr ed it -

ca rd p a ym e n ts ? H o w wi l l I m a ke p a yr ol l o r e v e n

re nt t h is m on t h ? W ha t d o I t el l m y e mp lo y e e s o n

th e f i r st o f t he m on t h ? W ho w i ll c ov er t h e

bi ll s? Sc ho o l fe e s a nd da y c a r e, i n s u ra nc e

pr em iu m s , m i l k 7? W he n w i ll t he y c ut of f

el ec tr i c it y , p ho n e , n at u r a l g as an d w a te r 8? H o w

ba d is t ha t e v i ct i o n no ti ce ?

7 S o m e h o w t h e r e i s a l w a y s a w a y t o p a w n s o u r c e s o f c a f f e i n e , n i c o t i n e a n d o t h e r s a t a n i c v i c e s , s o y o u s h o u l d n ’ t w o r r y a b o u t t h o s e . 8 J u s t f o r t h e r e c o r d , i f y o u a r e s h o r t o n c a s h , p a y y o u r t e l e p h o n e b i l l s b e c a u s e t h e B e l l s ( P T C L i n P a k i s t a n ) a r e a r e a l p a i n i n c u t t i n g o f f y o u r p h o n e . T h e y a r e n o t s u p e r e f f i c i e n t ; t h e y c a n j u s t d o i t e l e c t r o n i c a l l y . E l e c t r i c i t y , w a t e r a n d n a t u r a l g a s y o u c a n s k i p . T h e l a s t t h r e e u t i l i t i e s a r e f a r m o r e p o l i t e t h a n y o u r l o c a l t e l c o p r o v i d e r . T h e p o l i t e r o n e s w i l l f i r s t s h o w a n o u t s t a n d i n g b a l a n c e i n y o u r b i l l ( o n e m o n t h ’ s g r a c e , n o r u d e r e m i n d e r s ) , t h e n s h o w a n o t h e r o u t s t a n d i n g i n y o u r b i l l ( t w o m o n t h ’ s g r a c e , s t i l l n o r u d e r e m i n d e r s ) a n d t h e n f i n a l l y s e n d a p a y u p o r w e w i l l d i s c o n n e c t n o t i c e . Y o u m i g h t b e a b l e t o s t r e t c h t h e n o t i c e f o r a f e w m o r e d a y s o r w e e k s d e p e n d i n g o n t h e s i z e o f y o u r c i t y a n d s t a t e . I h a v e o n l y t r i e d t h i s i n C a l i f o r n i a , V i r g i n i a a n d K a r a c h i , b u t I w o u l d h a z a r d a g u e s s t h a t y o u s h o u l d s e e s i m i l a r p a t t e r n s e l s e w h e r e . T h e o n l y e x c e p t i o n t o t h e a b o v e w o u l d b e i f t h e M a f i a ( I t a l i a n , R u s s i a n o r C h e c h e n ) i s r u n n i n g u t i l i t i e s i n y o u r t o w n .


I s i t r e a l l y t h a t b a d ? W i t h a p o l o g i e s t o E m i l i o

E s t e v e z , B i l l y t h e k i d , B o b S e g e r a n d W a r n e r

B r o t h e r s , “ W h y d o n ’ t y o u t u r n t h e p a g e a n d f i n d

o u t ? ”


Avicena Timelines


Book One

The Story


Av ic en a Sn a p s h o t

Business Name: Avicena LLC

State of Incorporation: California

Nature of Business: Online education

Subject Focus: Corporate Finance education

Customer Focus: Banking and Insurance industry

Positioning: Knowledge acceleration

Business model: Per course, per seat, per year

license

Number of employees/consultants: 6

Rounds of funding: Two

Years in business: Two

Total capital raised: 300,000 US$

Total capital deployed: 820,000 US$

Technology status at termination: Interface, website,

content and content tools live in Production

Number of courses produced: Five

Beta customers: Three

Business plan 1.0 date: April 1999

Go live date: October 2000

Date of death: June 2001

Business plan edition on date of death: 57A

Famous last words: This valuation is too low

Reason for Failure: Read attached 250 page book


Chapter Two - Memories

Br oa dw a y an d A ms t e rd am . N ew Y o r k, t h e y ea r

19 99 . Ch er ry t re e s i n fu ll b l o ss om , su nn y

af te rn o o ns , a n d S u n d a ys . Th at ’s h ow I r em em be r

th e be g i nn i n g .

Su nd ay is th e o nl y d a y to ex pe r i e nc e C ol um bi a’ s

Ri ve rs i d e c a m pu s as a f ir s t -t i m e r . T uc ke d

be tw ee n Br oa d w ay a n d A ms t e rd a m w it h R iv e r s id e

Ch ur ch an d t h e M an ha t t an Sc h o ol of Mu si c o n on e

di ag on a l e nd , i t lo ok s do w n o n a s tr ee t

sp ri nk l e d w it h de li s, co r n er s h o ps , w at er i n g

ho le s, a nd et hn ic r es t a ur an ts o n t he o t h er .

Wa lk a li t t l e f a r t h er to wa rd s do wn to w n , a wa y

fr om t h e c am pu s, a n d y o u w il l c om e a cr os s a n

ol d ch ur ch s q ua t t i n g in t he mi ds t of 20 t h -

c e nt ur y co n s t ru c t io n. W h e re t he ch ur ch o n

Ri ve rs i d e i s s le e k , t a ll , a n d el e g a n t, S t . J oh n

th e D i v in e i s f la t , br o a d , a nd wi de . B ot h w il l

ca tc h y o ur e y e .

Wh en S ab oo r, F a wz i a ’s c o u si n , t oo k u s f or o u r

fi rs t l oo k it wa s a S u n da y. We pa r k ed on 1 20 th ,

ri gh t n ex t t o t he S c h o ol o f En g i n ee ri ng . F aw zi a

an d I s te pp ed o u t of t h e h e a t e d Ca mr y i n t o

ch il le d De ce m b er a n d lo o k ed a r o un d. W e w er e

he re ! A w id e e mp t y ro ad d es e r te d b y t ra f f ic

we lc om e d us to a b ro w n st on e f o r es t m ad e o f

mu lt is t o ri e d d or m s , s ch o o l s, ap ar tm en t s , an d

wa lk wa y s , t o p pe d w i t h c l e a r b l u e s ki e s an d

se rv ed w it h a n ic e co ld b re e z e.


O u r p e r so n a l t ou r o f t he ca mp u s le d u s a cr o s s

co bb le d p av e m en ts , p as t b a r e t r ee s a n d th e

im po si n g fa ç a de o f th e t w o l ib r a ri e s of f

Co ll eg e Wa l k . I c ou ld n’ t be li ev e th i s wa s a l l

ou rs t o ex pe ri en ce fo r t he ne xt 1 8 m o n t h s ,

es pe ci a l ly af te r w h a t w e ha d ju s t g o n e th ro ug h

in Lo n d on 9. T h e b u s in es s s ch o o l wa s c lo se d f o r

an ot he r t wo w e e ks an d t he se cu ri ty gu a r d a t th e

en tr an c e wo ul dn ’ t l et us in . W e w er e e ar l y bu t

I ha d s e en e n o u gh . It w as l o v e a t f i rs t si gh t.

In ce pt i o n

A cl as sr oo m of f B r o a dw ay an d a br e a k o ut r o o m

ov er lo o k in g A m st e r da m is wh e r e Av ic e n a wa s

bo rn . Th e b i r th w a s re la ti ve ly p ai n- fr e e a n d

fo r t h e fi rs t c ou p l e o f d ay s , we we r e n’ t s u r e

if it wa s a n y th i n g m or e t ha n a st i ll bo rn c l as s

pr oj ec t m a s q u e ra d i ng as a b us in es s p l an . T h e n

ag ai n, NA S D A Q wa s a y e ar a wa y f ro m i ts p e a k ,

ve nt ur e c ap it al r et ur ns a n d i n f l ow s w e re se t

fo r a re co rd - b re a k i n g y e a r , a n d a n i n - p ro g r es s

MB A w i t h a b u si n e ss pl an go t m o r e m i l e ag e t ha n

on e wi t h n o p l a ns a t al l.

Th e c l as sr oo m i n qu es ti on w ou l d b e bo o ke d f o r

th e l as t c la ss on Th u r sd a y e v e ni ng sc he du l e d a n

ho ur b ef or e s un s e t. T he re we re 1 5 o f u s in th e

ro om f or mi ng a U on c om fo rt ab l e c h a i r s. S o m e

9 T h e U S e m b a s s y d e c i d e d t o d e c l i n e m y F 1 s t u d e n t v i s a a p p l i c a t i o n f o r t h e M B A p r o g r a m a t C o l u m b i a U n i v e r s i t y t w i c e . T h e w e e k b e f o r e I w a s a l l s e t t o s a y g o o d b y e t o t h e M B A p r o g r a m a n d h e a d b a c k t o K a r a c h i , t h e y r e l e n t e d o n C o l u m b i a i n t e r v e n t i o n a n d i s s u e d m e a v i s a .


f r om S I PA 10, s o me f r o m t h e b us i n es s s c h oo l , a ll

wi th m or e th an a p as s i n g in t e r e st i n th e

su bj ec t Do n S e x to n ta ug ht .

Do n w o u ld a r r i ve f iv e m i n ut e s be fo re c l as s

st ar t ti me , pu ll in g h is b l a ck r ol l- on s ui tc as e

fi ll ed wi th a 30 -y ea r c ol l e ct io n o f t ap e s ,

ha nd ou t s fo r t he da y’ s s e s s i o n, a n d h is An th on y

Ho pk in s s mi l e . T he r o o m w o u l d fi l l qu ic kl y o nc e

hi s p r e se n c e be ca m e kn o w n. F o r th e n ex t f ew

ho ur s, he w o ul d w ea ve a m aj es ti c s h o w t ha t

fo cu se d o n gl ob al m a rk e t in g. B e g i nn i ng wi t h a

se le ct i o n o f t he be st TV sp o t s e v er m a de , f ro m

au to mo b i le s ( T he V W Bu g / B ee tl e) t o so ft d ri nk s

(M ou nt a i n De w ) , fr o m i ns t a nt c o f fe e ( Ta s t e r’ s

Ch oi ce ) to ov er ni g h t de li ve ry ( F ed Ex ), w e

le ar ne d w ha t i t t oo k t o e s ta b li s h a n d gr ow a

br an d in te rn a t i on al ly . Do n ha d ta ug h t th e

su bj ec t f or t h re e d ec a d e s a nd k n ew ho w t o h ol d

hi s au d i en c e .

On e wo ul d ex pe ct a t t en da n c e t o be t hi n; t hi s

wa s, a f te r a l l , th e l a s t c la ss o f t h e we ek ,

co mp et i n g f o r at t e n ti on wi th th e h a p py h o u r an d

th e w ee ke nd . P ar t y so un d s f r o m U ri s 11 D e l i b e l o w

wo ul d s of tl y s ne ak in th ro ug h w i n d o w fr a m e s an d

10 S c h o o l o f I n t e r n a t i o n a l a n d P u b l i c A f f a i r s i s t h e p u b l i c p o l i c y s c h o o l a t C o l u m b i a . 11 U r i s H a l l s i t s s n u g l y b e t w e e n t h e e n t r a n c e t o t h e g y m a n d C o l u m b i a ’ s S c h o o l o f E n g i n e e r i n g a n d h o u s e s t h e b u s i n e s s s c h o o l . W i t h U r i s c a m e U r i s D e l i , U r i s L i b r a r y , t h r e e f l o o r s o f c l a s s r o o m , f a c u l t y o f f i c e s a n d R o o m 3 0 3 – t h e C o l u m b i a B u s i n e s s S c h o o l A u d i t o r i u m , w i t n e s s a n d h o s t t o o r i e n t a t i o n s , p r e s e n t a t i o n s , p r i m e m i n i s t e r s , p r e s i d e n t s , k i n g s , a n d s t u d e n t b o d y m e e t i n g s . U r i s i s n o w c o m p l e m e n t e d b y W a r r e n H a l l , t h e s h a r e d b u s i n e s s a n d l a w s c h o o l b u i l d i n g o n A m s t e r d a m .


v e nt s in t h e r o om . Th e m o re a d v en t u ro us am o n g

us wo u l d s te p o ut an d c o m e b a c k w i th sa lv a t io n

in p la s t ic c u p s a n d o n pa pe r pl a t e s .

Fo r t h e du ra t i on o f D on ’s c l as s a n d mu ch l a t er ,

I w al ke d p as se d t he c h er r y t r e es s t an di ng gu ar d

ov er t h e s id e en tr an ce o n Br oa dw ay . C a nv as s e d

ag ai ns t t he fa ça d e of Ea r l H al l, wh it e b lo ss om s

wo ul d s ta n d o u t in th e r e dd i s h h az e c as t b y th e

dy in g su n. O n my sh o r t tr e k t o Ro om 3 10 , I

wo ul d s te p i n s i de an d t he y w ou ld b e th er e . M os t

da ys I w ou ld sn ea k a lo o k fo r s ig n s a nn o u nc in g

th e a r r iv a l of sp r i n g. F o r m e, th e f ir st b l oo m

of b l o ss om s, b e fo r e t he l ea v e s fi ll e d o u t th e

co nt ra s t , w o u l d a lw ay s b e a ss oc ia te d wi th t h e

fi rs t dr af t of o u r bu s i n e ss p l a n. T h e s e c o n d

bl oo m w it h t h e s ea r c h f o r ou r n am e a nd

in cu ba t i on ; t he t h i rd an d f in al wi th ou r

de mi se .

Th in gs m ov ed s lo wl y fo r t he n e x t s i x mo n t h s .

Th er e wa s r e s ea r c h th at ha d to be d o n e a nd a s

mu ch t hi nk in g ; b o t h we r e c a rr ie d ou t w i ll i n gl y

on t h e s ta i r s i n fr on t of U r i s on su nn y

af te rn o o ns . I n i ts i ni t i a l st a g es , a ll th e

bu si ne s s pl an h a d d e fi n e d w as a po s s i b le ne ed ;

it w a s s il en t o n h ow t h e ul t i m at e f i n is he d

pr od uc t w ou ld b e b u i lt , w ha t pl a tf o r m wo u l d b e

ch os en , w ho w o u ld bu i l d i t, wh o w o u ld w ri t e th e

co nt en t , wh o w o ul d b u y it , a nd a t h o u sa nd ot he r

qu es ti o n s th a t w er e as ke d , a ns w e re d , d eb a t ed ,

an d t h e n a sk ed a g a i n. Ar no , K e n (B at es a n d

Wh is ke y ) , K a m a r , a n d I be ca me f ix tu re s i n th e

co rn er ro om ov er lo ok i ng th e d el i t h a t s e r v e d a n

un en di n g su pp ly o f tu n a on r y e, fr ie d f i s h


f i ll et , ic e d t ea , a n d r ic e pu dd in g. T he l on e

wh it e bo a r d s er v i ng a s o ur b at tl eg ro u n d , th e

bu si ne s s p l a n o ur e mp ir e.


Chapter Three - Before the Beginning

An Iv y L ea gu e b us i n e ss s c ho o l is a g re at p l ac e

to g e t y ou r be a r i ng . In a w or l d c ha r a ct e r i ze d

by 7 00 pl u s G MA T sc o r e s , o ut st an di n g c o ll eg e

gr ad es , f as t- pa ce d ca r e e rs , an d a o ne -i n - t e n

en tr an c e ra te , y o u en d u p c o mp e t in g o n a da il y

ba si s w i th t h e be s t a nd t he b ri g h t e s t.

On e w o u ld th in k t h a t i n th e p r e se n c e o f s u c h

ma st er s of t h e u n i v e rs e , no c on ce pt w ou ld b e

di ff ic u l t to un de rs t a n d o r d ec i p h er ; n o

as si gn m e nt t o o d if f i cu l t t o h a n dl e; a n d i t

wo ul d be o ne e xt en de d tw o- y e a r v a c a t i on b e f or e

yo u w a lk ed o ut wi t h a s u b st a n ti al i n c re a s e i n

yo ur f u tu r e p ay c h e c k a nd a ch oi ce o f p lu m

po si ti o n s. W h o wo u l d st u m bl e a n d p an i c j us t

be ca us e th e y ha d a me as l y s ta t i s ti cs o r

co rp or a t e f i n an c e a ss i g nm e n t du e t he n ex t

mo rn in g o r a ma cr oe c o n om ic f i na l t he da y a ft e r ?

Wh o in de e d ? W it h a f ew e xc e p ti on s, e v er y o ne ,

re ga rd l e ss o f th ei r ba ck g r ou n d , ed uc a t io n , o r

ex pe ri e n ce , a d mi t t ed to be in g o v e r wh el m e d w it h

th e co u r se l o a d o f th e fi rs t te r m .

My c o u rs e l o ad wa s no d i f fe r e nt . Co l u mb i a h a d

an e x e m pt i o n po l i c y fo r c or e c ou rs e s— ma nd at o r y

co ur se s t h a t fo rm ed th e f ou nd at i o n o f se co nd -

ye ar el ec ti ve s . Yo u t h in k y o u kn o w th e s ub je ct ,

ta ke t he e x e mp t i o n ex am , pa ss i t, a n d a d v a n c e

to t he ne x t l ev el of e le ct i ve . Du e to t h e

po li cy , s t u d e n ts fa mi li ar wi t h th e c o re c o u l d


m o ve o n t o hi gh er - l ev e l to pi cs w it ho ut b e i n g

he ld b a c k b y t h e s t ru ct ur e o f t h e p r og r a m.

In a t em po ra r y fi t o f i ns an i t y , I e x e m pt e d ou t

of c or po ra te f in an ce a nd to o k a P h D e le c t iv e

ti tl ed “ Co n t i nu ou s Ti me F in a n ce ” ( CT F fo r

sh or t) , a su bj ec t I th ou g h t I kn ew fr om pr i o r

ex po su r e . M ar i a V a ss a l ou , t h e p ro f e ss or , w ar ne d

me o n t he d ay of r eg i s tr at i o n ab ou t th e

co mp le x i ty of t he s ub j e c t an d he r e x p er i e nc e

wi th p re v i o us a mb it io us M B A s t u d en t s w h o ha d

wa nd er e d in he r c la s s un d e r th e m is ta ke n

as su mp t i on t h a t a l l Ph D f i n an ce e le ct iv es w er e

al ik e. A f t e r ig n o r i ng h e r fr ie nd ly a dv ic e , I

un de rt o o k a 12 - w ee k t or tu ro u s jo u r ne y o f

ig no ra n c e an d se lf - d is c o ve ry . T o wa rd s th e e n d

of m y fi r s t te r m , I w a s ju st a s l o s t an d

co nf us e d a n d wo rr ie d a bo ut fl u n k i ng t h e fi rs t

te rm as e v e ry o n e e ls e wa s a bo u t th e i r

pa rt ic u l ar d e m o ns .

Fo r h e l p I t ur n e d t o s e ar c h en gi ne s . U nl i k e

no w, w h er e G oo gl e t ur n s up 2 00 pl u s pa ge s o f

re le va n t h it s 12, A l ta Vi st a d id n ’ t yi el d

an yt hi n g us ef ul i n 1 99 9 . Yo u go t s e v e r al pa ge s

of h i t s b u t no ne i n cl u d ed m at er i al s t h at wo ul d

he lp m e pa ss my CT F f in a l . A n i nf o r ma l s ur v e y

of ot h e r s tu d e n ts in d i ca t e d t ha t i f I wa s b e in g

ke pt a w a ke b y CT F an d a pa u c i ty of ma te r i a l o n

th e s u bj e c t, ot he rs w e r e f a c in g si mi l a r

ni gh tm a r es w i th a c co u n t i n g, m ic r o e co no mi cs ,

12 T h a n k y o u G o o g l e


s t at is t i cs , co r p or a t e fi n a nc e , o pe ra ti on s

ma na ge m e nt a n d ca p i ta l ma rk e t s.

Tw o o p t io ns w e re t e a c hi ng a s si st an t s an d t ut o r s

(a cc es s t o e it he r wa s l i m it e d ) o r s pe nd in g

ho ur s a rg u i ng th e f in e r p oi nt s o f t he to pi c a t

ha nd w it h c l a ss m a te s. B o t h o p t i on s w e r e ou t

be ca us e a s a “ ha s b e e n m as t e r o f t hi s un i v er s e ”

it wa s b el ow my di gn it y t o p u b l ic l y de cl ar e m y

ig no ra n c e b y be in g ca ug ht o ut s i de o r i ns i d e a

tu to ri a l s e s s i o n w i th o rd in a r y m o r t a ls .

Th e s t r uc t u re of t h is pr ob le m l ay wi th t h e

co mp os i t io n o f t he ty pi c a l bu s i ne s s s ch o o l

po pu la t i on . T o ma in ta in b a la n c e a nd t he r i g h t

ch em is t r y, o n e -t h i rd of th e s t u d e n t p o o l c am e

fr om c on su lt i n g, o n e -t h i rd fr o m b an k i ng o r

fi na nc i a l i n s ti t u t i o ns , a nd o n e- t h ir d f r o m

li be ra l ar ts b ac k g ro un ds . T h e l ib e r al a r t s

ma jo rs ( or p oe t s ) w er e b l o w n aw a y b y t h e

nu mb er s re qu ir ed in t h e f i r s t t e r m an d

st ru gg l e d t h r o ug h o ut th e i r s ta y i n s c h o ol . O f

th e co ns ul ta n t s a n d ba n k e rs , pr ob ab ly h al f ha d

th e m a t h ba c k gr o u nd ne ce s s ar y t o do we ll i n

sc ho ol b ut o n ly a s ma l l s el e c t pe rc e n t ag e ha d

th e r i gh t c o mb in at i o n of e xp e r ie nc e, s tu di es ,

gr ad es , an d m i n ds e t n ec es sa r y t o t h r iv e .

Th e r e s t h ad l ed s h el t e re d, c o m f or t a b l e li ve s

in na rr ow ly de fi ne d f un c t i on s. At e a se i n ar ea s

si mi la r t o t h e ir ow n w o r k , t h e y w er e j us t a s

lo st a s t h e po e t s wh e n th e y w e r e f or ce d t o

ve nt ur e on to u nf a m il ia r t e rr it or y . A b a c k- o f -

th e- en v e lo p e c a l cu la t i on s a i d th a t of a p o o l o f

80 0 st ud en ts , 70 % w ou l d l oo k a n d p a y fo r


a s si st a n ce i f t he y co ul d g e t i t di s c re e t ly ,

co nv en i e nt l y , a nd c os t ef fe c t iv e l y .

Wh y? B e ca us e e ve ry on e w an te d t he c o ns u l ti ng a n d

in ve st m e nt b an k i ng j ob s w i t h t u it i o n

re im bu r s em e n t s an d gu a r a nt e e d fi rs t y ea r

bo nu se s . T h e on ly p r er e q ui si te w a s r e s p ec t a bl e

gr ad es . Al l in te r v ie w e rs w an t e d th e to p 5

pe rc en t i le a n d e v e n a s in gl e ba d gr ad e wo ul d

de fl at e d re am s, a mb it i o n s, c ar ee rs an d bo n u s

pr os pe c t s.

If Co l u mb i a ha d m o r e t h a n 60 0 l os t s ou ls e v er y

ye ar , w he n y ou ad d e d t h e o th er to p 5 0 s ch o o ls ,

yo u w e r e l o o k in g a t a n o t h er 1 5 , 0 00 s tu de nt s i n

a s im il ar f i x al l w i l l in g t o s pe n d U S$ 2 0 to 3 0

a m o nt h 13 f o r pe rs o n al t u t or i a ls , gu id an c e ,

as si st a n ce , a n d an sw e r s. Th i r ty do l l ar s a mo n t h

fr om 1 5, 00 0 st ud en t s ad de d up t o U S $ 4. 5

mi ll io n a y e a r, wh ic h wa s a l ot m or e t h a n

an yt hi n g I c o u ld h o p e t o e ar n o v e r th e n e x t

de ca de o f m y p r of e s si on al l i f e.

It t o o k Do n S e x to n, o u r In t e rn a t i o n al M a r k et i n g

pr of es s o r, to pr o v i d e t h e fr am ew o r k t ha t b ec am e

th e b a s is of t h e bu s i ne ss p l an fo r A vi c e n a . Th e

pi tc h w as ve r y s im pl e : 12 0, 00 0 a d u lt s a p p l y t o

bu si ne s s s c h o o l e v e ry y e a r. O f th os e, 3 0 % g e t

in . O f t he a d mi t t ed c an d i da te s, 7 0% w i ll n e e d

so me a ss is ta n c e w i t h at l ea st t wo s u b je c t s i n

13 P r i v a t e t u t o r i a l s e s s i o n s r a n a t 1 5 – 2 0 d o l l a r s a n h o u r . S t u d e n t f o c u s g r o u p s h a d i n d i c a t e d a w i l l i n g n e s s t o s p e n d a s m u c h a s 1 0 0 – 1 5 0 d o l l a r s a m o n t h f o r a s s i s t a n c e w i t h t h e e n t i r e c o u r s e l o a d .


t h ei r f ir s t t e r m a nd wi th m o r e l at e r on . I f yo u

co ul d ca pt ur e a r e a s on a b le s ha re of t h e se i n

th e fi rs t t e r m, r e t ai n t he m th ro ug ho u t th ei r

re ma in i n g te r m s at s ch o o l, a n d c on v i nc e a

sm al le r pe r c e n ta g e t o k e e p o n c om in g ba ck t o

th e s i t e f or an s w e r s t o t he ir qu e r i e s o ve r

th ei r wo rk in g li v e s , t h e n u mb er s qu i c k l y a d d e d

up to a f ai rl y s ub s t an t i a l g ro s s re v e nu e

fi gu re .

An d t h i s wa s j us t b us i n es s s c ho ol : W he n y ou

ad de d ot he r pr of es s i on a l e du c a t i o n, c o n ti n u in g

pr of es s i on a l de ve lo p m e nt , a nd c e rt if ic at i o n

ma rk et s , th e n um b e r s j us t g ot bi gg er an d

be tt er . Th e q ue s t i o n wa s co ul d y ou g en e r at e

co nt en t an d s er ve i t t o t h is gr ou p in a co s t -

ef fe ct i v e f a s h io n t o b u i l d a p r o f it ab l e ba se .

If yo u c ou l d , t h e o p p or tu ni t y wa s y ou r s f o r th e

ta ki ng . A s w it h e ve ry t hi n g e l se , t h e on l y su re -

fi re w a y t o f in d o ut w a s to ta ke a l ea p o f

fa it h, j um p i n , a n d g iv e i t a s h ot ; w hi c h i s

wh at w e di d .

From: Kenneth R. Bates

To: Arno Goboyan; Jawwad@Columbia, Cluster X

Sent: Wednesday, July 14, 1999 9:38 AM

Subject: Message sent out

This is a message to a select group of classmates from Ken Bates, Jawwad

Farid, and Arno Goboyan. We're asking for about two hours of your time

on Friday morning to get your opinion on a new product that we are

developing. We'll supply the pizza. It's an internet based supplemental


learning product targeted to current or former students in an MBA

curriculum. We are learning about this from a new products class, but we're

developing it for real, as in start-up, entrepreneur, etc. We have only sent

this note to about ten classmates who we thought might be interested both

in how we're doing this focus group and in helping us out.

Those receiving an invitation are: Kamar, Jason Brown, Liz Kuhse, Scott

Grunther, Mike Beckerman, Ria Spencer, Nicholas, Stephanie, Alain,

Jacqueline, Shannon, and Tim Kelly.

The specifics on the schedule are as follows:

Time: Friday 7/16/99 from 10:00 am to about noon (hopefully a little

shorter)

Place: New building, Room TBA14

Activities: Brief explanation of the product (15 minutes)

Access to a product sample on your laptop (BRING YOUR COMPUTER) and

chance to use the product sample briefly (30 minutes)

Questionnaire regarding your experience with the product sample (15

minutes)

Questions and comments while you eat your 2.3 pieces of pizza,

With the inevitable questions, delays, and shooting the breeze, we're hoping

the entire process will be finished in a little over 90 minutes. We hope that

it will be informative and interesting for you as well as us.

Please reply now with your confirmation about attending, so that we can

plan accordingly. Otherwise, one (or all) of us will talk to you on

Wednesday or Thursday.

Thanx!

14 T o B e A n n o u n c e d


From: Kenneth R. Bates

To: Arno Goboyan; Jawwad Columbia; Kamar Bakin; Ria Spencer ; Tim Kel ly

Sent: Fr iday, July 16, 1999 3:42 AM

Subject: You're the Best! !

Thanks for agreeing to come to our Focus group tomorrow morning! We're

totally committed to making it fun and interesting, as well as educational.

Here's the specifics:

TIME: 10:00

PLACE: WARREN (NEW BLDG.) 209

AGENDA:

Coffee and Donuts from 9:45 to 10:10

We'll tell you all about the product 10:10 - 10:30

You'll get to test-drive the product and give feedback (rest of the time)

Pizza is planned during the wrap-up at around 11:30 - 12:00

See you there... KB15

15 1 . Y o u w o u l d b e s u r p r i s e d a t h o w w i l l i n g y o u r n e t w o r k i s i n s h a r i n g i n s i g h t s , f e e d b a c k a n d i d e a s w h e n i t c o m e s t o t e s t i n g a n e w p r o d u c t . M a k e s u r e t h a t y o u m a k e f u l l u s e o f i t . 2 . C r e a t i n g t h e r i g h t t r a n s c r i p t f o r a f o c u s g r o u p s e s s i o n i s p a r t a r t , p a r t s c i e n c e . T h e t r a n s c r i p t d e s i g n i s a f u n c t i o n o f w h a t y o u w a n t f r o m t h e f o c u s g r o u p – n e w i d e a s , v a l i d a t i o n o f p r o d u c t c o n c e p t , a t t r a c t i v e n e s s o f s p e c i f i c p r o d u c t a t t r i b u t e s o r i n s i g h t s i n t o p r o d u c t p r i c i n g a n d d i s t r i b u t i o n . T h a t d e t e r m i n e s h o w a q u e s t i o n i s a s k e d a n d h o w i t s h o u l d b e a n s w e r e d b y p a r t i c i p a n t s . 3 . T h e f e e d b a c k f r o m o u r s e s s i o n w a s v e r y p o s i t i v e . W e r e c e i v e d i n d i c a t i v e p r i c e r a n g e s f o r h o w m u c h s t u d e n t s w o u l d p a y f o r l e a r n i n g o n l i n e , w h a t a t t r i b u t e s o n t h e p r o d u c t p l a t f o r m a t t r a c t e d t h e m a n d w h a t w e r e s o m e a r e a s w h e r e p r e s e n t a t i o n o f m a t e r i a l s c o u l d b e i m p r o v e d . W h a t w e l e a r n e d f r o m t h i s f o c u s g r o u p f o r m e d t h e b a s i s o f p l a t f o r m d e s i g n , p r o d u c t s t r a t e g y a n d A v i c e n a ’ s e v e n t u a l a r c h i t e c t u r e .


From: Jawwad

To: Gary Travnicek

Sent: Monday, November 22, 1999 9:58 PM

Subject: Re: Jawwad

Hi Gary.

After Amin, I just went under for six months. It was such a tremendous mind

shift for both of us but we are really enjoying the experience. He will turn

seven months (Insha Allah) this weekend and he has started standing up.

I am more or less through with my third term at BSchool. I am graduating in

May (hopefully) and it has been a great experience. Learned a lot, met some

really good people, brushed up on a quite a few weak spots in my

education. I even like to think that I am a better person now. (Always helps

to know the limits of one's knowledge)

Fawzia and I are planning to stay in the US for the next two years if

everything works out at home. I took out a personal loan for BSchool and I

need to pay that back. On a Pakistani salary that would be difficult to

manage hence the two year delay in our return home.

I have been working on an education venture with a few friends for the past

six months and we are trying to decide if we want to do it on a full time

basis. Decision point would most probably be in Feb-March 2000. Also

spoke to a few companies in the New York area but nothing is confirmed as

yet.

We are also thinking about visiting Florida in March. It’s a maybe but if we

do I would definitely like to come over and see you.

How are things with the new firm? Was the transition smooth or did you hit

any rough spots...


Well that is all from me, for now. I will stay in touch and keep you posted

on how things go. I am planning to visit home (Pakistan) in the winter break

for three or four weeks. Would be back by mid of January. Take care

Jawwad


On T ak e a wa y s

You couldn’t possibly highlight the takeaways listed here

with the innocuous emails included in the preceding

section. And no there isn’t enough meaning hidden between

the lines for you to pick these up as subliminal messages.

When it came to putting down takeaways, I cheated. I

didn’t stop at the emails but also thought about the phase

at which Avicena was and the handful of things I still

remember and would like to pass on. Here is my list of

handfuls.

Takeaway

Team: Brilliance can only take you so far. To be

really successful in life, you need more than just

yourself – which means you will reach a stage where

you will need others.

Ultimately it’s the team that delivers, meets a

deadline, books a customer win, and pays the bills.

Without a team, you - the entrepreneur, are nothing.

It’s the team that gives you the confidence to take

the plunge and carries you through in your weakest

wins. And yes it is the team that makes winning

worthwhile.

Yes the comfort of company will cost you a sizeable

share of your future net worth. Is it worth it? Only

you can decide.


Running a business while at school: Your single

biggest obstacle when it comes to entrepreneurship is

opportunity cost. Opportunity cost is the size of

your current pay check that you would forgo, if you

stepped out as an entrepreneur. If you earn six

figure per annum today, letting it go to starve and

struggle for a few years may not fit in your

definition of moving up in society.

At school you have already given up the paycheck (and

the opportunity cost problem) in your quest for self

improvement.

Can you actually do it? Graduate school is a walk in

the park if you tackle the problem of mixing business

with studies correctly. In my last term at school I

structured my classes from 8 am to 6 pm on Tuesdays

and Thursdays, wrapped up my assignments by 9pm the

same day, and was free to work on Avicena for the

remaining five days of the week.

In that term I made the dean’s list, competed in two

business plan competitions, finished the proof of

concept, marketing, strategy and financial projection

documents, closed the Aleph and Appsys deals, managed

an introduction with a recently retired head of a big

five accounting firm and moved to California.

School is also interesting in that you have access to

a unique microcosm of society that may open future

doors and give you valuable feedback for free. My

social network at Columbia had a Bankers Trust MD, a

hedge fund analyst, a fund raiser for the Clinton

campaign, a member of Reuters management team in

North America, the son of IBM’s CEO, four actuaries,


an F-14 pilot, two nuclear submariners, two engineers

from Qualcom and Intel, a popup video editor, a fair

mix of Indians, Pakistanis, Portuguese, French,

Englishmen, Australians, Peruvian, Italian and

exactly one Venezuelan (potential) contender for the

Miss Universe title. This was just my network;

imagine what the other 700 students looked like.

Customer Validation: Liking the product or believing

in it yourself is not enough. You need to get more

feedback from people who will use the product. The

feedback is not just limited to feature sets, you

need to ask question about pricing, purchasing power,

product appeal, presentation and likelihood of

purchase. Sometime the feedback is not what you

expect. If that happens determine whether product,

presentation or strategy should be tweaked to make

the concept work or (in rare cases) should the

difference in opinion be ignored completely.

Set personal and family expectations: Three years of

hard back breaking labor and then – we will get used

to it.


Chapter Four – Aleph on the Scene

Ke n, A r no , a n d Q a m ar 16 h a d ma de it cl e a r t h a t

th ey w e re go in g b a c k t o r eg ul ar j o b s af te r

gr ad ua t i on . I n t h e a b s en c e o f an y r ea l p ar tn er s

to s h a r e t h e r is k an d g iv e n t h e ha nd fu l o f

of fe rs I h a d , I w as r e a dy t o ta k e t he s af e

pi ll . B ey on d w h at wa s a va il a b le in th e U . S . , a n

Iv y L e a gu e MB A c ou ld do j us t a s w el l i n Eu ro pe ,

th e M i d dl e E a s t, a nd t h e r es t of A s i a . W it h

As ia n c os t o f li v i ng an d U. S. sa la r i es , y ou

co ul d m a ke y o u r d o l la r go a f ai r d i s ta n c e.

Th e c on ve rs at i o n w i t h S a rw ar wa s t h e fi r s t t im e

I t ho u g ht it wo ul d b e p o s s ib le t o gi ve Av i c en a

a s ho t . Be fo r e t he n, it ha d b ee n s o m et h i n g t ha t

I h a d i n ve st e d in a nd w a n t ed to ta k e fu rt he r

bu t I ha dn ’t r e al l y t ho u g ht a b o ut h o w e x a c t l y

th at wo u l d h a pp e n . S ar wa r f o rc ed th e

co nn ec t i on . A l ep h h ad a l r e ad y b ee n w o rk in g o n

th e I n t er ne t f r on t f o r th e l as t t h r ee ye a r s an d

ha d e x e cu t e d re a s o n ab l y so ph is t i c at ed wo r k .

Th ey h a d a te am of de ve l o pe r s in Ka r a ch i t h a t

th ey w er e w i l li n g t o p a r ti al ly a ll o c at e f o r

Av ic en a wo rk , ha d of fi c e s in P ak i s ta n a n d

Ca li fo r n ia th at w e co u l d u se , h ad a d e c e n t

ne tw or k o f c l ie n t s in t h e f i n a nc i a l s er vi ce s

se ct or th at we co u l d t ap in to , a nd wo ul d m a k e

fu nd s a va i l ab l e to en s u r e t ha t w or k t ha t

16 P l e a s e s e e t h e a p p e n d i x o n c a s t o f c h a r a c t e r s


c o ul dn ’ t be d o ne by th e i nt e r n al te am co ul d b e

ou ts ou r c ed t o A pp s y s.

We ha d t wo d e t a il e d c o nv e r s a t io n s o v er 4 8 ho ur s

an d t h e n s h o o k h an ds . T h e y w ou ld g e t 15 % o f

Av ic en a a nd w e wo ul d g et tw o y e a r s o f s up po rt ,

a ha n d fu l o f p ro g r am me rs , ac ce s s t o A l ep h

fa ci li t i es , a f a t c h un k o f Sa rw a r a n d D en is e’ s

ti me , ad eq ua t e e x p o s u re t o th ei r cl ie nt s, a nd ,

as a f i n al k ic k e r , th e y wo ul d f un d A pp sy s t o

bu il d t he c o r e e n g in e a r o un d w hi ch A vi c e n a

wo ul d s t an d .

Fa wz ia an d o ur fa mi li es we re n ’t s u r e wh e r e t hi s

wa s h e a di n g . Wi t h o ut a ny re a l c a pi ta l an d w it h

a wi fe , a k i d , a n d a p e r s on a l lo a n t ak en t o

fu nd t h e M BA , i t w as im p o s si bl e f or a t hi nk in g

hu ma n b ei n g to un d e r st an d h ow I e xp ec te d i t t o

wo rk o u t. M y st re ng th ( a n d w e a kn e s s) wa s t ha t

ev en I ha d n ’ t t h o u gh t th at f a r ou t . I wa s

ta ki ng th i n g s on e s te p a t a t i m e b ec au se t h e

bi gg er pi c t ur e w a s j u s t t o o b l e ak a n d

de pr es s i ng w h e n vi e w e d f ro m s an e e y e s, b u t f ul l

of o pp o r tu n i t y an d pr om is e w h en s e e n f r o m mi ne .

Th en c a me th e t r i p t o C al if or n i a a nd Al e p h

of fe re d F aw zi a a j ob . T h e t w o of u s t a l k e d

ab ou t it an d it ma de p er fe ct s e ns e t o ta k e u p

th e o ff er an d j us t m o v e t o s ou t h e rn Ca li fo rn ia .

Af te r a l l, th i s w a s d es ti ny a t w o r k .


From: Jawwad17

To: SM

Sent: Saturday, December 25, 1999 5:24 PM

Subject: Bplan: Jawwad

BPCG is the Business Plan (40 pages)

Exec Summary is the first two pages of BPCG (2 pages)

EFinFinal is the Valuation. (10+ pages)

You may want to print these out first. You can take a look at the proof of

concept at http://www.columbia.edu/~jaf71/GuideHome.htm . You would

need to use Explorer since it won't work on Netscape. This was done in

June, but captures the essence of what we were thinking. Over the past six

months we have changed the design a lot. Think amazon.com, except

replace books with concepts. Let me know what you think. Take care

Jawwad

From: SM

To: Jawwad

Sent: Thursday, December 30, 1999 7:47 PM

Subject: Re: Bplan: Jawwad

When would you like to meet???

17 S e n t i m m e d i a t e l y a f t e r t h e H u n d r e d M i l l i o n d o l l a r c o n v e r s a t i o n w i t h S a r w a r o n C h r i s t m a s E v e .


From: Jawwad18

To: Denise Davies

Cc: SM; Fahad;

Sent: Sunday, January 16, 2000 1:48 PM

Subject: Re: Concepts.com : Early Sunday morning

Okay made it to NYC in one piece. It’s close to 4a.m. here and I am finally

done with unpacking and cleaning. Off to sleep in a little while

Fahad and I worked on Friday to further firm up the scope document. I did

some more work in the air. It's all on paper and I will try to get it down in

word/excel and mail it out latest by Monday evening. Once I have this out,

finalizing the database design should not be a major issue.

Denise I will call you up on Tuesday, after I have taken care of the above

two items. Take care

J a w w a d

From: Jawwad

To: AlephKarachi; AppsysKarachi ; SM; Denise;

Sent: Wednesday, January 19, 2000 2:55 AM

Subject: Re: Concept.com: Spec Document

Good evening everyone. Here is the document that describes the discussion

Fahad and I had on Friday. There is also a screen definition portion that

18 W i t h i n t e n d a y s , S a r w a r a n d I h a d a g r e e d o n a t e r m s h e e t f o r A l e p h ’ s i n c u b a t i o n o f t h e n e w v e n t u r e , r o p e d i n F a h a d a n d A p p s y s t o d o t h e c o r e p r o g r a m m i n g e n g i n e w o r k , r e v i e w e d t h e i n i t i a l d e s i g n d o c u m e n t , t h e a r c h i t e c t u r e a n d s i g n e d o f f o n t h e i n i t i a l p r o j e c t p l a n . T h e u r g e n c y w a s n e c e s s a r y s i n c e I h a d t o l e a v e f o r N e w Y o r k b y m i d J a n u a r y a n d d i d n ’ t k n o w w h e n I w o u l d h a v e a c h a n c e t o s i t d o w n w i t h F a h a d n e x t .


describes what we think would happen on each individual screen. The excel

document includes the screen shots.

As I have mentioned in the attachments, please review this thoroughly and

raise as many points/questions as possible. For analysis and design we are

not limiting the scope to just the pilot. The Pilot is still limited but it would

be useful to get an idea of what would be expected from the whole system.

I still owe you the relational data base design and process flows. Two more

days. Meanwhile this should keep you busy.

Fahad see if you have enough to start talking with Faisal. As I said the DB

design in its existing format is around 80% done. With these two documents

you should be able to identify any missing parts. I would also appreciate if

you and Faisal can start talking about the partitioning between the Front end

and the back end.

Look forward to your comments. I may drop off to sleep but would be

online again in 7 hours. I would be really happy if I can have some (any)

feedback on these by then. BTW you need winzip to unzip the files. Take

care

Jawwad19

19 E v e n t h o u g h i n p r i n c i p l e , I h a d d e c i d e d t o s t a y a w a y f r o m t e c h n o l o g y , i n r e a l i t y a r c h i t e c t u r e w a s s t i l l d e p e n d e n t o n w h a t I w a n t e d f r o m t h e p l a t f o r m , n o t j u s t n o w b u t a l s o a f e w y e a r s d o w n t h e r o a d . I f w e g o t t h e a r c h i t e c t u r e r i g h t , e v e r y t h i n g e l s e w o u l d f o l l o w . F a h a d – t h e l e a d d e s i g n e r f r o m A p p s y s a n d I s p e n t o u r f i r s t f e w d a y s w o r k i n g t o g e t h e r t o m a p a r c h i t e c t u r e i n a d o c u m e n t t h a t c o u l d l a t e r b e u s e d a s a r e f e r e n c e b y a n y t e a m m e m b e r .


From: Jawwad

To: Karachi; AlephKarachi ; SM; Denise: Fr iends; BoardOfDirectors;

Sent: Sunday, February 06, 2000 11:18 PM

Subject: We Final ly have a name.. . .

Finally we have a name... I am at peace. I have registered the .com and .net

addresses

I like it a lot... It’s what I was looking for. We are named after Ibn Sina an

Arab scholar of some fame who did a lot of work across different fields. In

the western world he is known as Avicenna and for his contributions to

medicine.

But a little known fact that actually stood out for me was that his biggest

contribution was synthesis / compilation of existing knowledge. Sina added a

lot of value by his insights and his systematic approach to his work. So the

name ...... drum rolls... is... Avicena.com20

(Avicenna was already taken and most of the original Arab variations were

also gone. I thought since we are naming the thing after him, he wouldn't

mind one missing n.)

20 T h e s e q u e n c e o f n a m e s t h a t w e w e n t t h r o u g h b e f o r e w e s e t t l e d o n A v i c e n a : a . C o o k a r a c h a G u i d e s b . C o n c e p t s . c o m c . Q u i c k C o n c e p t s . c o m d . Q C o n c e p t s . c o m e . A v i c e n a . c o m C o n c e p t s w a s n i c e b u t d i d n ’ t h a v e a n y b u z z o r z i n g t o i t . Q u i c k C o n c e p t s a n d Q C o n c e p t s w e r e b o t h f u n c t i o n a l n a m e s . W e w a n t e d a n a m e w i t h a s t o r y , a b i t o f m y s t i q u e , c l a s s a n d t h e a b i l i t y t o b r a n d n o t a t a f u n c t i o n a l ( a t t r i b u t e d r i v e n ) b u t p s y c h o l o g i c a l l e v e l ( i m a g e d r i v e n ) . A v i c e n a d e l i v e r e d o n a l l o f t h e a b o v e .


Finally since our primary customer base is in North America and Western

Europe, Avicena would probably be easier on their tongues than Ibn Sina or

Sina or Bin Sina.

As I said, I am at peace. I have found what I was looking for. Will look

forward to your feedback. And I mean feedback. FROM ALL OF YOU.

Jawwad

From: Jawwad

To: John G. Murtha

Sent: Monday, February 07, 2000 4:19 AM

Subject: Hi there

John

Hi. Thank you very much for the baby snaps. I got back home on the 15th

and have been busy with one thing after another.

We actually found a very good tech subcontractor in Pakistan. Sold 15% of

the firm to them and in return got 2 years of software development,

execution & implementation support. (Read: Five Web developers & one

core manager for our management team). Also picked up a name for the

business. Planning to do a market test in March followed by a bigger one in

May. If things move along as predicted will be open for business in August 1,

2000

What about you? How is the healthcare business & fatherhood treating you?

I hope everything is fine at home & work. Keep me posted. Take care

Jawwad


From: Jawwad

To: SM

Sent: Wednesday, February 09, 2000 2:50 PM

Subject: Business Plan and Contract Issues

SM.

As mentioned earlier, I am meeting one potential source of funding on

Friday. Also setup a time with another potential source on Monday morning.

I need to make a couple of major changes in the business plan reflecting the

progress that has been made since 18th December (last update). One of the

big things that have happened is the contract with Aleph. It’s probably the

biggest asset Avicena has on its books. However, once I put the details of

the contract in the plan, it would go beyond an understanding between you

and me to a relationship between two firms. I understand that for all

practical purposes it’s already at that level, but we would be introducing a

formal structure that did not exist on paper before.

Is it possible for both of us to agree on a one page statement of

understanding that could then be included in the business plan? The

statement would form a basis for valuing the contract and the firm. It's

important to get this done before the next week is over.

I need the initial value so that when I actually walk into a room with these

people I can say, this is what the firm was worth before the contract, this is

what it’s worth now, this is what it will be worth after the market test. And

since I need x million dollars, this is the portion of equity the new investors

can get for their contributions.

So far I have thrown about a figure of 1.5 Million dollars for the Fair Market

value of the services provided by Aleph to Avicena over the next two year

period. The basis that I used was the following


1. Thirty percent (30%) of Sarwar Mushtaq's time subject to availability

spread over the next two years = 1,000* hrs @ 450$** an hour = 450,000

2. Web Development Team (1 Graphic Designer, 3 Web Developers, 1 Tester)

5 People - available on demand for Avicena related work at a charge out

rate of $300,000 per year for two years for the team = $600,000

3. Technical execution & consulting support in Karachi and California= ???

(the remaining amount)

4. In return Avicena sold 15% of its equity to Alephinc. Sarwar Mushtaq

joined Avicena core management team and will represent Aleph's interest in

the firm

* (30% * 150 hrs a month * 24 months = 1080 hrs)

** ( (250,000 per annum * 3 )/ (150 * 12))

I need to get a feel for your level of comfort with the above. The important

issue here is what happens if the contract is formalized and I lose control of

the firm or its management. What kind of safeguards Aleph would like to

place in the contract to protect its position and its interests.

On the other side the issue is that our understanding is worth a lot of money

to a lot of people. We need to put a market value to it in order for us to

reap the full financial benefits. As long as we understand how much it’s

worth, we can ensure that it’s reflected in the value of the firm and that new

investors pay a fair price for the equity they buy. That is we don't give

away any discounts to people who have come on board at a later stage.

These are things that both of us have to think about. The issue is also

important because we are now moving to a phase where outside investors

may get in a position to exploit our understanding and relationship. Please

feel free to bring out any concerns / reservations / issues / problems / ideas

that you have about anything discussed above.


If you agree with the overall assessment above, I will raise the figure to 2

Million dollars for fair value of the contract. Which would put the (ball

park) value of the firm at 13.3 Million $. Which means that if we sell an

additional 10% stake in the firm to VC's we should be able to raise 1.3

Million $. Take care

Jawwad

From: Jawwad

To: John Cusick21

Date: 27t h March 2000

Dear John

We met at Columbia Business School Mentoring for Entrepreneurs Program in

November 1999 and February 2000 (Tom McKnight’s class). We spoke about

our online education venture and the possibility of getting in touch again

when we were ready.

Things have progressed significantly since our last discussion. We now have

a name, a committed management team, a proven technology, dedicated

and reliable contractors and a very focused business plan. One of the first

things you had appreciated about us in our earlier meetings was our focus on

Finance and how that would allow us to exploit marketing, advertising and

execution efficiencies.

21 W i t h i n t h e V e n t u r e C a p i t a l a n d I n v e s t o r n e t w o r k s , i t i s n o t a b o u t w h a t y o u h a v e o r w h a t y o u c a n b u i l d , b u t w h o y o u k n o w a n d w h o r e f e r r e d y o u . I n J o h n ’ s c a s e i t w a s a n o t h e r P r o f e s s o r a t C o l u m b i a a n d a f a i r l y l o n g c h a t a t a C o l u m b i a M e n t o r s N e t w o r k e v e n t . T h e b a d n e w s w a s t h a t w i t h a f e w e x c e p t i o n s , n o o n e w o u l d r e t u r n y o u r c a l l s o r e m a i l s , i r r e s p e c t i v e o f t h e i r r e l a t i o n s h i p w i t h t h e C o l u m b i a n e t w o r k . I t w o u l d t a k e a p e r s o n a l r e f e r e n c e t o e n s u r e t h a t y o u r e c e i v e d a n y a t t e n t i o n . T h e o n e s h i n n i n g e x c e p t i o n w a s V i n o d K h o s l a a t K P C B w h o w r o t e a w e e k l a t e r s a y i n g h e h a d l o o k e d a t t h e e x e c u t i v e s u m m a r y a n d w a s n ’ t i n t e r e s t e d .


I have enclosed a copy of our business plan for your reference and will look

forward to receiving your comments and advice. If you have any questions

please feel free to contact either me or Sarwar at our given numbers. I will

call you in the second week of April to follow up on our conversation. Best

Regards

Jawwad Ahmed Farid

Avicena Inc

From: Jawwad

To: Sarwar

Date: 15 Feb 2000

V i s i o n

I keep coming back to the statement you made when we were speaking

about how the Internet is going to change the world (mid Jan, 2000). Both

of us agree that the net implies a fundamental shift, across the board, in how

things will be done in our day to day lives. But such fundamental shifts

require financing. Irrespective of who benefits from the shift, one definite

beneficiary of shifts through out the history of shifts is the Financial Services

industry. Look at railroad, automobiles, pc’s, wireless and now the net.

Look at how the Financial services industry transformed in response to each

of these shifts. Individual company’s may come and go, but financial services

will always extract its “pound of flesh”.

What are the implications for us? As I have said in the modified biz-plan,

the industry may change shape or form, but at its core it would remain a

process driven business (relationship management, portfolio construction &

management, risk assessment, financial underwriting, asset liability

management, etc). This implies a number of things. First as the industry

grows, it will need new blood and resources. Second since the industry’s

core processes are complicated there would be a steep learning curve. Third


since the fundamental shift will change some of the core processes, there

would also be a need for continuous learning Lots of new hires, lots of

training, lots of continual education Need for a flexible (geographic, time,

content) professional development program.

What is out there right now. On the web, it’s just personal finance. If you

are finance professional, you get material that updates you about what is

happening in the market, but that is it. If you want to grow professionally,

you are on your own.

H o w d o w e m a k e m o n e y f r o m t h i s o p p o r t u n i t y ?

Actually this new direction makes more sense for us.

There is a big interest within financial services in trained man-power

(experience, education or certification). Certification normally has a

continuing education program attached to it. At present continuing

education is only through seminars and symposiums. If we offer a flexible

and credible alternative, there is definitely enough demand out there.

a. It allows us to charge a premium for our content, since the content with

the CPE credits is worth a tangible amount of money to these people

b. It also solves the motivation problem that we have struggled with

c. It also addresses the desire / ability / capacity to pay issues

Beyond all of the above, the space is wide open. There is no one out there.

(as of yesterday). So we are definitely ahead of the wave. As the industry

grows and demand begins to rise, the wave would get bigger and bigger and

we would still be way ahead….

Because the industry has so many complicated processes, it won’t be easy to

generate the content. You would need some very specific skills and resources


and substantial effort on standardizing content generation. Possibly

indicating that competition in the future would also be limited. Not every

second person we know would be able to replicate what we would be trying

to do. Since hardly anyone we know really gets finance.

Bottom Line. First mover, ahead of the wave, lots of growth, empty space,

below average competition, complicated content Higher margins and

profits

H o w d o w e g e t t h e r e ?

My multi-stage plan:

First six month total focus on getting the professional certification bodies on

board. Our niche is still financial courses but we should get chartered

accountants, CPAs, CFAs and Actuaries on board about our continuing

professional education offerings. Next one year we expand our offerings to

Insurance and Re-insurance companies. Year two onwards we become “THE

Financial Services choice for professional development and continuing

education”. Let me make myself clear here. The focus is still Finance. The

courses we offer are still focused on Finance. But we would be selling the

same content with minimal changes to the whole financial services industry.

It will just be wrapped differently.

This is on the marketing side. On the execution side, we have already

outsourced technology. End of the first six months if it looks as if our over

all strategy is on the mark, we set up an offshore content generation facility.

Either Dubai or Karachi. There is solid talent in terms of MBA’s, Actuaries,

Chartered Accountants, CPA’, etc that is based in PK / Middle East. We can

harness this pool for generating top quality content for our customers.

Would need to put in effort for standardizing the generation process and our

products but once that is done. We are there.

Obviously this revises the financial projections and our revenues targets.

Hence my total rewrites. I have done the financial projections. I will include


the excel worksheet with this document and the changes that I have so far

made in the biz-pan. But there is work that needs to be done to bring

everything upto date.

The good thing is that there are no major changes in the technology plan. Or

atleast none that I can see. For now.

Jawwad


Takeaway

Support network: More people quit and fail because

they don’t have the right person to talk to than you

would imagine. You are not alone in the world. Look

around and you will find help. Just ask for it.

On deals:

1. A one pager is good enough. Sometimes even a

little less will also do.

2. Funding decisions happen in less than 30 seconds.

The rest is just logistics.

3. You have no hope without a reference or a prior

link. The best references are customers, individuals

who share your profession, or people who have worked

with you before.

4. There are times when getting what you need and

raising capital are two completely different things.

Naming the venture: Mystique, class, story and style.

Avoid functional names or functional branding. A fast

car sold as a fast car is functional branding. A fast

car sold as a throw back to younger days, passion,

spirit, freedom and individuality is such a powerful

brand that Ford used it to sell the same concept

(Mustang) to two separate generations.


Chapter Five – California

Wh en o u r pl a n e s t a rt ed d e sc e n di ng ov e r lo w

wa re ho u s es , l a n ds c a pe d of f i c e b lo c k s , ap ar tm en t

co mp le x e s wi t h po o l s, o p e n r o a d s, an d gi an t

ma ll s, I k n e w he ad in g w e s t h ad b e e n a sm ar t

mo ve . T he Jo h n W ay ne I n t e rn a t io na l A i r p or t i n

Or an ge C ou n t y w as a pl ea s a n t s ur p r is e a f te r

be ar in g t he ma dn e s s t h at i s La Gu ar d i a a t 6 :0 0 a m

in t he m or ni ng . S o m e ho w, ev e n t he s u n s h i n e d

br ig ht e r on S un f l o we r an d M cA r t hu r t h a n it ha d

on B ro a d wa y a n d A m s te rd am .

Ou r n e w ap a r tm e n t h ad t h e s am e sq ua r e f oo t a ge

as ou r t wo -b ed ro om in Ne w Y or k b ut wa s n ew e r ,

wi th c e nt r a l a ir c on di ti o n i ng a nd a f a r b et te r

la yo ut . W e h a d a p oo l , a wa l k i ng p a t h t ha t

cu rv ed ar o u n d a m a n ma d e la ke , an d a gy m t h a t

wa s o p e n 2 4 ho ur s. Tw o d ay s la te r o n A mi n’ s

bi rt hd a y , w e d is c o ve r e d D ar y a , a Pe r s ia n

re st au r a nt , t h a n ks t o S a rw ar an d D e n is e , j u st a

sh or t h o p a w a y .

Do n’ t g et me w r o n g . N e w Yo rk w a sn ’ t ba d, b u t

Kp h2 22 o f f S ou th P l a z a D r i v e c om pa re d t o 5 4 0

We st 1 2 2n d S tr ee t w as a he ft y u pg r a de in ou r

li fe st y l e. He r e ou r b al c o ny ov e r l o ok ed t h e l a k e

an d on co l d n ig ht s y o u c ou ld se e th e m i s t

ri si ng fr om t he he at ed p oo l a nd t he st ar s

22 V e r s a i l l e s o n t h e L a k e , o p p o s i t e S o u t h C o a s t P l a z a , S a n t a A n a .


a l ig ht in t h e sk y. I n N ew Y o rk , w h e n I n e e de d a

br ea k a nd l o o ke d o ut si de t h e wi nd ow o f m y

st ud y, I s aw a n ot h e r w in d ow s i ll s t a i ne d b y b ir d

dr op pi n g s a n d t he k it ch en o f th e ap a r t me n t o n

th e o t h er si d e . In su nn y C a l if or ni a , it w a s th e

sp ar kl i n g b l u e p oo l en c l o s e d w i th in a d ar k

gr ee n h ed g e , sh ad e d by a ca n o py of ca r e f r e e

tr ee s.

From: Jawwad

To: c lusterx00

Sent: Sunday, May 21, 2000 8:13 AM

Subject: Update from LA LA Land

X'ers

I owe most of my friends and clustermates an explanation of where I have

been hiding myself for the past six months.

As some of you are already aware that I started something in January of this

year. It's still a very small venture focusing on online education. With a

team of four people in the US (and another 6 in Pakistan) we are working

on content generation processes & distribution technologies for the

education industry. (Not as complicated as it sounds)

Since my technology and marketing team (represented by two very sharp

people) are based in Orange County, we (me and Fawzia) decided to move

in early March. I have been traveling back and forth on almost a weekly

basis to get the venture off the ground and finish school. Hence, my

absences from most cluster events. With two new ventures (remember Amin


Farid from last year), moving, commuting to school and remaining sane, I

have had a very interesting schedule.

On the financing side, one of our key suppliers agreed to cover our

technology related expenses for the next two years. They took a % of equity

in exchange. Our next round is now planned for September / October when

we officially plan to roll out some of our products.

It has been a pleasure knowing all of you. If you are ever in southern

California, please feel to drop in. And if there is anything that I can do, all

you have to do is ask.

Best of luck in your efforts to change the world. Stay in touch.

Jawwad

From: Jawwad

To: BoardOfDirectors

Sent: Sunday, May 30, 2000 8:13 AM


Please see copy of attached update post meeting with Sarwar23 and answers

to his queries on current status across a few crucial areas.

23 F i v e m o n t h s i n t o o u r r e l a t i o n s h i p , S a r w a r w a s q u i t e c o n c e r n e d a b o u t o u r m o m e n t u m a n d d i r e c t i o n . P a r t o f h i s c o n c e r n w a s d r i v e n b y t h e f a c t t h a t a f t e r a d e m o n s t r a t i o n o f t h e c o r e t e c h n o l o g y e n g i n e , i n M a r c h , n o t m u c h h a d h a p p e n e d o n t h e t e c h n o l o g y f r o n t . W e h a d b e e n b u s y w i t h s u b m i t t i n g b u s i n e s s p l a n s a n d p r o j e c t i o n s a n d h a d n ’ t h a d t h e t i m e t o m a k e p r o g r e s s o n t h e c o n t e n t s i d e . E v e n t h o u g h p a r t o f t h e t e c h n o l o g y s o l u t i o n w a s r e a d y , w i t h o u t c o n t e n t t o p l a y w i t h , t h e r e w a s n o v i s i b i l i t y f o r c u s t o m e r s , i n v e s t o r s o r A l e p h . T h i s n o t e w a s t h e f i r s t u p d a t e t h a t w e n t o u t t o S a r w a r a n d o u r B o a r d , d e s c r i b i n g w h e r e w e w e r e o n n u m e r o u s f r o n t s . T h i s w a s f o l l o w e d b y a B o a r d m e e t i n g i n N e w Y o r k i n A u g u s t a n d p e r i o d i c u p d a t e s v i a p h o n e c a l l s a n d


Jawwad

[Sarwar] After our meeting at the office and the follow up meeting at

Souplantation, there has been no update on what the progress has been and

where we stand on timelines and milestones.

[JAF] I think the best way to address this would be to set up a regular time

for a weekly meeting between us. We can do it physically when we are in

the same city or over AOL Instant Messanger when we are not. For starters I

suggest Friday (evenings or mornings depending on our respective

schedules). As long as we stick to these weekly sessions, the paranoia should

not recur.

[Sarwar] I sense that we are losing direction, but hope that it’s just paranoia.

I am assuming that you are the helm of the ship and steering.

[JAF] You assume correctly as far as me being at the helm but not about

losing direction. For me the direction is fairly simple

1. Find a customer

2. Get the product out

3. Get some money, either from the customer or on the basis of 1 or 2.

4. The amount of money we need would depend on how desperate we are,

and how far we have reached with respect to 1 and 2 above.

e m a i l e x c h a n g e s a f t e r t h a t . I n S e p t e m b e r w e a d d e d o n e m o r e m e m b e r t o o u r B o a r d a n d h a d m u l t i p l e o n e o n o n e m e e t i n g s o n d i r e c t i o n , s t r a t e g y , p r e s e n t a t i o n a n d p i t c h i n N e w p o r t B e a c h . A n a c t i v e , e a s i l y a c c e s s i b l e , a g g r e s s i v e b o a r d a d d e d a l o t m o r e v a l u e t h a n a p a s s i v e o n e .


For the next three months this is my direction and as per our last meeting at

soup plantation this is the direction we agreed on as a company.

The only thing new in direction is the training on the Internet side for

corporate customers. It’s a related business that can be used to pay our bills

and refine our product. At the same time it helps us build credibility, starts

the inflow of revenues (if only for investors’ sake) and is a step in the

direction that we want to go in.

This occurred on Friday during the meeting with MB when Ping was talking

about training loan officers. I don’t know how you feel about it, but I think

if we get it right we have a good shot at getting MB as our first customer

and we can build on that.

[Sarwar] Progress tracking mechanism, some clear deadlines, and measurable

milestones.

[JAF] Programming

We now have close to 90% of the functionality covered. Some changes have

to be made because some of the processes are confusing and need to be

modified. Also we underestimated the power of the search engine required.

So work needs to be done on that end also.

A new related project is the data entry, index generation side of Avicena. I

have asked Fahad to generate a scope document. It is not a very complicated

application but would be separate from the site and the original scope.

Apparently Fahad needs your or Denise’s approval and a resource to move

forward on this. No progress has been made on this item for the past one

month. Although it is not urgent right now by mid June it will become a

high priority item. My objective is to have the process and search engine

work wrapped up before the 15th of June.

[JAF] First course offerings


I am working with three courses now:

1. A dummy basic finance course that would serve as an introductory course

for users, investors, employees, customers and contractors

2. A credit assessment course that could be easily modified and licensed to

Manufacturers Bank. Please see comments above

3. A course on interest rate models and dynamic valuation techniques for

actuaries. The idea is to have an outline and some content ready for review

by Society of Actuaries and our technical consultants.

The deadline for the first two courses is 15th June. The deadline for the last

course is early August.

These two items are critical. Accountants, Lawyers, Customers, Employees,

Investors; for all of them we need to have a site that works, that has a

course that can be sold in real life and a process that is down to earth and

really easy to use. If we can get these done and finished with by 15th of

June it would be relatively easier to meet the rest of our mile stones.

For me the only direction right now is hitting my target of 15th June with

both of the above objective met and crossed out.

[JAF] Hiring

I am now going to work with a number of people on a consulting basis. The

three ways that I can work is equity, per hour charge or a combination. My

preference is equity because it’s a very powerful tool for retaining interest.

And it also allows me to keep the cash needs to a minimum. The three

people I have in mind are people that I met at CBS and may or may not be

interested in this arrangement. I will know for sure by the time you get here.

[JAF] Deloitte and Touche

I would like to stay in touch with Fred and follow up with him. However as

per our soup plantation meeting, the business plan and raising money in the

short term now has a slightly lower priority. I plan on having one or two


meetings with him and keep him updated about the strategy that we are

following and the success that we have had. I expect him to be on the top

of my list again in early July.

[JAF] Lawyers

Azra (Akila’s sister) has been in touch with a few of her friends and I am

waiting for her references. On more immediate legal issues I can count on

her support. And if we need to speak to a lawyer in a hurry, she is a resource

that we can use.

[JAF] University of Phoenix

I have some of the information that we had asked for. Getting a meeting

with UOP will not be a problem. But we need to have something that will

blow them away. They become top priority after June 15th or as soon as we

have the course and the site in respectable shape. I have a list of names that

I can contact and follow up as soon as we are ready. But as I have said I

need to have something that I can show.

[JAF] Other universities or institutions

The other key prospects are Strayer University, New Horizon, Unext,

Pensare, Digital Think and Smart Force in that order. Follow up with them is

scheduled in late July and would be shaped by how discussions proceed with

UOP.

[JAF] Professional Bodies (Actuaries and Finance professionals)

Society of Actuaries on top of our list. To be followed up in parallel with

UOP in mid June.

[JAF] Board members, advisors

I have two more people on my list that I would like to contact but that

would be after June 15th.


My other strong feeling is that if any of the bigger players sign up with us,

we would need to ramp up in a hurry and have some pool of investment

ready for immediate use. I think it would be beneficial to keep the July

meetings as an internal deadline for a review of our strategy based on our

performance till then. I am keeping the financing provided by Aleph for the

next three months as a backup and a lender of last resort if we have any

immediate cash expenses. Since Joe fell through and we have switched over

to the consulting model, it’s possible that some of the requirements would

be delayed.

Beyond that I would like to line up 150,000 – 250,000 in potential

financing from other sources for mid July, early August. This is where Fred

and some of the resources in New York may come in to play. If you have

sources that you can access, its time that you start spreading the word. For

the bigger chunk (the 3 – 4 mill) we will wait till October.

[JAF] What do I need from you

A couple of things. I need to get the look and feel done and finished by 15th

June. I can take care of the programming side but I need help on the look

feel. I agree with you that the site is really dull and dead. But I need to see

something that I am comfortable before I can write the existing version off.

If we are thinking about going live in mid June, there is not enough time to

wait till the programming side is finished. Both of these have to run in

parallel. Given the number of iterations we had to get where we are now, I

think we need to start sooner. Can you give me something that is really earth

shattering by that date? I will give you trouble since I know what I want but

I still don’t have it. Once again my key words are Creative Chaos, Life,

Vibrance, Originality and Creativity. I see all of that in the first page on

www.avicena.com. But as soon as I go inside it goes away. So one word…

HELP.


From: Jawwad@avicena

Sent: 07 June 2000 12:08 pm

To: TMPGroup; Friends; Professors;


Hi there.

Thought you would appreciate an update from LA LA Land.

Three weeks since commencement and I am putting my b-school education

to good use. We have settled down in Orange County, signed the lease,

found a day care, bought some furniture, moved in to the new apartment,

got DSL installed, got consensus on strategy going forward, got sign off on

the implementation action plan, became a member of Costco and saved (or

spent) a fortune (depends on how you look at it) at their warehouse in

Fountain Valley. You know that you have completely shifted to the mindset

of an entrepreneur when your bedside reading comprises solely of office

supplies catalogs. I even put some money in Staples stock (outstanding year

selling red ink to startups).

The day begins at six or sooner if Amin (our son) wakes up and ends at

midnight. 90% of my time goes in managing the relationship with Aleph

(our incubator) and ensuring that we stay on schedule for the roll out in

July. When I started working I thought I would have the time to focus on

product development, but that has now been relegated to late nights and

early mornings. Important lesson: take yourself out of any sensitive

schedules and primary responsibility for serious deliverables.

Building and/or running a business is a full time job and you simply don't

have the time to do anything else

The hunt for lawyers continues. Still processing references but don't have the

same level of comfort that we have with Deloitte (they agreed to work with

us for a while and are now waiting for the next version of the business plan

and the site). Private placement is still on schedule for mid/late July. Two


serious angels lined up, plus family and friends, plus Aleph. Any advice on

the execution / legal side of placements would be highly appreciated.

Have identified the first customer and started talking. Found them hidden

away in Aleph's list of clients. Important lesson number two: Look around

your existing relationships and you will find what you are looking for.

Important Lesson number three: Keep your mind open to unthinkable

applications of your product: You would be surprised at some of the thing

people are willing to pay for.

Another interesting thing happened. I am not sure how you would react to

this. As a group we decided to take our last 15K out of the bank and into

the market. We did this in school as Moral Hazard: “When you have

nothing to lose, you are willing to take bigger and bigger risks". Interesting

to experience it first hand. I manage the money and spend four hours a

week ensuring that it stays liquid and doesn't evaporate. So far it has been a

thrilling experience. (I don't need caffeine any more, just the opening half an

hour at six thirty and I have had my full day’s quota)

Every day the opportunity gets bigger and better. The only problem is that I

have two hands and 24 hours in a day. Desperately looking for hired help,

willing to work for options and/or minimum wage, relocate to Santa Ana

and live on sunshine and faith. Let me know if you find some.

Take care, Jawwad


Takeaway

Partnerships: An equity partner is a partner

irrespective of the size of his ownership stake. He

has a right to ask questions, to be briefed on

strategy and to express his opinion on your

decisions. You must respect that. If you think you

will have a problem with respect, create a model

where you can work without capital partners

More on expectation management: If you don’t manage

expectations some one else will.

Bottlenecks: As an owner / founder you are destined

to be a bottleneck and will remain a bottleneck

unless you fix it. As owners we enjoy being a

bottleneck because it allows us to feel important,

needed and useful. But your goal state (Nirvana) is

when nothing depends on you and everything works like

clockwork with or without your presence. You are

ready to grow up as business when that happens.


Chapter Six – Hiring

In t h e fi rs t s ix m on t h s a ft er s ig n i n g th e

in cu ba t i on ag re em en t wi t h Al e p h , w e ma d e s i x

jo b o f f er s . Al l w e r e t ur ne d d o w n. Pr io r t o

Av ic en a , I h ad b e e n r es p o ns i b le fo r h ir i n g

ta le nt fo r my te a m at A nd e r se n W or l d W id e ’ s

re pr es e n ta t i v e f ir m in Pa k i s ta n. Th o u gh i n

ti gh t ma rk et s i t wa s al w a ys d i f fi cu lt t o f i n d

pe op le yo u l ik ed , a t A nd e rs e n , o nc e w e p ut ou t

of fe rs t he y w er e ge ne ra ll y ac ce pt e d . T hi s

re je ct i o n b u s i n es s wa s ne w.

In m o s t sm a l l b us i n es s e s or n e w v en t u re s , y o u

wa nt ed p eo p l e w ho w ou l d m ak e y o ur d r e am t h e i r

ow n. I n a s h or t 3 0- mi nu t e i nt e r vi e w , i t w a s

di ff ic u l t t o ga ug e th e s u cc es s of t r a ns f e r o r

dr ea m ad op ti o n i n an y ca nd i d at e . W he n y o u

co ul d, mo ne y a n d o ur ab il it y t o r ai se i t b ec am e

an i s s ue . M o st ca n d id a t es w is e l y as k e d to s e e

so me th i n g o n th e ta bl e (c o m mi t m e n t s, t er m

sh ee ts , f un d i ng , f in a n c i n g, b a nk b al a n c es )

be fo re th e y w ou l d th in k a bo u t co mm it t in g. Y o u

(m ea ni n g w e) we r e t he r is k t ak er ; ev er yb o d y

el se wa s ju s t th er e f o r a p a id r i d e . It t o ok m e

a wh il e to f ig ur e th is o ut a nd u nt il I d id , I

to ok e ve ry r ej ec ti o n v e r y p er so na ll y. I t en de d

up b e co mi ng a d e mo n t ha t c ou l d on l y b e

ex or ci s e d b y r ai s i n g a f e w m il li on do ll ar s t ha t

pr os pe c t iv e e m pl o y ee s wa n t ed t o s ee b ef o r e

th ei r l e ap o f f ai t h .

Ou r f i rs t b r ea k c a me w i t h A sh a r . Em p l oy e e

nu mb er on e. D i d n’ t w a n t t o w or k w i t h u s b e ca us e


o f t he dr e a m . H e j us t w a nt e d to m ov e o v e r

be ca us e h e wa s b or ed wi t h w h a t h e w as d oi n g an d

wh er e i t w as l e a di ng an d w a n te d t o d o s o m e th in g

di ff er e n t a n d me an i n gf u l w i th h is li f e . I t

he lp ed th a t h e h ad b ee n a st u d e nt of mi n e, ha d

wo rk ed wi t h m e b ef or e , k ne w m e to be fa i r, an d

ha d a n i m pi s h se n s e o f a d ve nt u r e t h a t w o u l d

ma ke h i m o p t f or c h al l e ng es w he n ev e r t he y w er e

of fe re d . To o t h e r s i t s ee m e d t h at h i s

wi ll in g n es s t o jo in so m e t h in g t ha t w a s l i t t l e

mo re t ha n a n ou tl i n e on p ap e r a nd a fe w

th ou sa n d li ne s o f c od e w a s a de at h w i s h. Fo r

hi m i t w as j u s t a no t h er op p o rt un it y t o f i n d an d

de fi ne h im s e l f .

Qu ic kl y af te r A s ha r c am e Sh ar l e en , a n ot h e r

re st le s s MB A w i th a d es k j o b at a m u lt in a t io n a l

ph ar ma c e ut i c a l fi rm in Ka ra ch i. To ge th e r ,

Sh ar le e n a n d A sh a r f or m e d t h e c or e te am t ha t

wo ul d p ro d u ce c o n t e n t f o r o ur c o ur s e s, k ee p a n

ey e o n A le p h a n d A p ps y s ’ te ch n o lo g y t ea m , a n d

en su re t h at p ri or it ie s w er e c o mm u n i c a te d a n d

ma na ge d be t w e e n C a l if or ni a a n d K a r a c hi .

Be ca us e o f o u r p r i or r e l a t io ns h i p, I h ad n o

de fi ne d ro le f or As ha r ex c e pt t o b e th e

de si gn a t ed t r o u bl e s ho ot er a n d p ro b l e m- s o lv er i n

Ka ra ch i . We a l so ha d a st ro n g V u l ca n m in d s yn c

co nn ec t i on t h a t al l o w ed us t o be ef fe ct iv e o ve r

th re e a nd a h al f c on ti ne n ts . I w o ul d t hi n k an d

he w ou ld m ak e it h ap p e n — w it h t h e h e l p o f

in st an t m es s a g i n g a n d a wo r k s ch e d u l e t h a t k ep t

bo th of u s u p a n d r un ni ng 20 h ou r s a d ay , se ve n

da ys a w ee k .


From: Jawwad

To: Ashar Zaidi

Sent: Sunday, June 15, 2000 4:08 AM

Subject: More motivat ion

As always it’s great to hear from you. Send me your home phone / cell

phone number. One of these days when I am rich enough I may actually

give you a call.

Things are pretty good at this end of the planet. So far I have lived in three

continents and on the shores of three oceans. The other two (oceans) are

just too cold for my taste. Work is slow as I told you. It is tough working

with just me.

Glad to hear that you finally made the move to Arooj's team. How are

things? Had an exchange of emails with Ammar and heard that as always

things are not good.

No debt just equity. But I am probably risking the remaining percentage of

my friends and family who are still on speaking terms with me by putting

their money at risk

Costco is a big retailer in US and Europe. You have to become a member and

shop at their warehouse and you get whole sale price for top level brands.

So 24 cans of Mountain Dew / Pepsi cost 3 dollars which is 150 rupees.

Which is 6 Rupees per can (330 ml). Van Heusen dress shirts are 12 dollars

(which is like damn cheap) and so on so forth.

The complete deal is content generation, processes, technology and

distribution for the education and professional development market. Last

time I checked it was worth 700 billion a year. I would settle for .1% of that.


Don't go any place. How would you like to work with me NOW. I will even

pay you in dollars or better yet in options? Of course this means that you

are staking your livelihood on your ex boss and teacher. At the end of three

years you will either never speak to me for the rest of our lives or will have

enough to pay for b-school out of your own pocket. Or both. Let me know

if you are interested in giving it a shot.

If you are then we have to work out a really long term strategy of getting

you here. The quote indicates that you now have a much more positive

outlook on life. Take care

Jawwad

From: jawwad@avicena

To: Ashar Zaidi

Sent: Sunday, June 16, 2000 4:00 PM


Give me a time when I can reach you at home. We should talk on the

phone. I think the plan will answer most of your questions.

1. It would but not to a great extent since changing the course outline will

also change the CPE's you receive for it. This segment is only our first target

market. At a later stage we would be looking at additional markets. And

then CPE would not be a binding constraint

2. Me, Fawzia, Sarwar Mushtaq (Aleph Inc), Denise Davies (Aleph Inc). We

are planning to raise additional money in the next two - three months and

the picture will change again. Also negotiating with two prospective

employees to join us. For all practical purposes you will be employee

number one. For the moment I and Fawzia are the majority owners


3. Don't get too hung up on the job description. Within a startup setting

they change every minute. Although I see your primarily role in that capacity

in the next six months or so and even later you would probably have your

hands in everything (all the way from cleaning the closets and running

errands, testing the interface, to hiring and firing people)

4. This is the most important point. If you do decide to take this mission,

there is a 90% chance that it will self destruct in less than three months.

Then you, me and every body else will be on the road. There is a 10%

chance that we will all be around in the next six months and there is less a

1% chance that will go public in the next 4 years. You need to have the

flexibility, the profile and the mindset to handle this risk.

5. When can I get you to the US? Once again a lot will be determined in the

next six to eight months. There is a chance that I may ask to stay back and

help us in building the organization in Pakistan. There is also a chance that

we may ask you to move to Dubai and spend anywhere between six months

to a few years over there. If things work out there would obviously be a

number of trips to the US. There is a really small chance that I will ask you

to come to the US in the first year. But second year onwards. who knows...

So think of it like that.

6. The safest thing to do would be to work on a part time basis till things

are ready to fly and you can then leave SHMA. When I say part time, I am

thinking 10 - 15 hours a week till we get things moving and then it will be 18

- 20 hours a day. Time frame will probably be 2 - 4 months. This would also

give you a deeper idea of what is it that we are and what is it that we are

upto. How volatile I am on a day to day basis and if the work is as exciting

as I made it sound...

7. You would primarily be an Avicena employee. But on the interfacing side,

you would be talking to Fahad and Aleph in Pakistan...


8. Yes for the time being we are all working from home.

9. One of the first things you should do is get a US visitor Visa on your

passport while you are still a SHMA employee. The ability to move quickly

to the US even for short periods of time is valued a lot.

10. If there is a move to Dubai or the US the rates would be revised. If we

get significant funding the rates would be revised again.

In the first six months think of it as investing yourself and your time in an

opportunity. Beyond that think of it as believing in me to pull it off. It’s like

a vote of confidence. Jawwad, I am jumping in the fire for you, don't screw

up my life. Don't think of the amount as reflective of your abilities. You are

obviously worth a lot more and I know that...

11. Here is the interesting part. If you do join and do decide to stay and do

come on board full time and stay on for three years (and the magical

number again) you start with owning .5% of the firm Doesn't sound much

but if you consider our current valuation of 10 - 30 million dollars it could

be worth anywhere from 50K to 150K 2 - 3 years from now (in US dollars

do your own numbers)

12. Yes I do need your resume... but you are hired the minute you say yes.

No interviews, just commitment & faith.

13. Next step. Go over the business plan in minute details and send me your

comments. I had to take the numbers out since it adds up the size.

14. This is very hush hush. Not a word to a soul. Just talk to your parents

and may be your friends but not a word beyond that. And if anybody tells

you, you are out of mind on taking this up tell them they are absolutely on

the mark. Take care... happy thinking.


From: Ashar Zaidi

To: Jawwad

Sent: Sunday, June 17, 2000 1:00 PM


It is amazing how slow life can be for a couple of months and then suddenly

take off to the 7the moon.

1. My answer is 'yes'. I'm ready to join.

2. The money sounds fine. I'll start work now and if you have cash flow

problems, pay me later when they are sorted out. I know you'll be fair, so

that’s OK. But you'll have nothing but my word to determine how much

time I’m putting in and how much I'm billing you!!! The .5% of share of the

company sounds exciting. Is this something you plan on offering to all

employees and will I become a share holder immediately after joining -

permanently or after 3 years??

3. Your description of the job makes it 'versatile' hmm cleaning cup-boards to

hiring and firing. Interesting. I understand that things are fluid and will take

time to stabilize and that is when 'roles' within the organization will become

concrete.

Ashar


To: Ashar Zaidi

Sent: Sunday, June 17, 2000 3:00 AM


Take a look at the job description I think you will find it interesting to know

that I have waited (stayed up) all night for your email to arrive.


Congratulations. Welcome on board. Now I really have to make it work. On

the equity side, half of the half is yours immediately. The remainder will vest

over the next two years. The vesting period starts immediately.

The only problem is that there would be restrictions on selling it to external

parties and caps on the maximum price you would get from the firm if you

decide to leave before the three year period is over.

Let me know if you have any other questions. Things will once again slow

down till I figure out what should I ask you to do as your first assignment.

Thanks for the vote of confidence. Together we will make it work. For the

time being don't let the news out. Have a chat with Fahad about what is it

that we are trying to do but ask him to keep it to himself. I am just going to

inform the management team here but will tell them the same thing.

Brace yourself, it will inshah Allah be a very exciting ride.

Last question is. Would you prefer [email protected] or

[email protected]? Think six hundred people in three years. It will take a

few days to get that up and running but we are working on it. Let me

know...

Jawwad


Takeaway

The honest truth: No one wants to work for a small

company with no money and possibly no future. Deal

with it. In a new venture you sell to every one you

touch, starting with employees. If you haven’t

already, learn to sell.

Hiring sources: Your network is your single best

source of leads, referrals and future employees. Let

it know of what you need and be patient. Job

advertisements and recruiting agencies do not work

for young businesses.

Hiring Motivators: People switch jobs because of

boredom, change and desperation. Not money or

opportunity or the chance to change the world. Hunt

for passion in boring places.

Ask the right questions. Listen.

Be honest and be fair: If you work with old

technology say so; if you will not pay salaries on

time say so; if you want them to clean cupboards say

so. And if they still want to work with you, hire

them and take care of them.


Chapter Seven - Pre Launch

It to o k u s e ig ht mo n t hs f ro m t he po in t t h a t th e

te ch no l o gy wa s bu il t an d d em on st ra te d to t h e

ti me t h at i t b ec a m e a c om m e r ci al ly v i ab l e ,

fu nc ti o n al so lu ti o n. B u t on ce w e ha d i t i n

al ph a (m ea ni ng w e h a d r ol le d i t ou t fo r

in te rn a l qu al it y as su ra nc e b ut h ad s t i l l no t

sh ar ed i t w i t h th e ou ts i d e wo r l d) , w e s t a r t e d

sh ow in g ou r s t u ff a ro un d.

Pr e l a u nc h w as al s o on e o f t h e mo s t p ro t r ac te d

st ag es in Av i ce n a ’s sh o r t l if e. St a r t in g f r o m

Ma rc h 2 00 0 , wh en t h e f ir st de m o wa s m ad e w i t h

Fa ha d’ s kn ow l e dg e - ma na g e r en gi ne w or ki ng w i t h

si te a n d f ro nt -e nd de si g n , t he re wa s a lo t o f

wo rk t ha t h ad t o be do ne : bu s i ne s s p la n

re vi si o n s, ex ec u t i ve su m m a r ie s , th e m o v e t o

Ca li fo r n ia , s a m pl e c o u rs e s f or in i t ia l t e s ti ng ,

si te c on te nt , ma rk e t in g l e tt e r s, l og o de si gn ,

bu si ne s s c a r d s an d st a t io n e r y pr in ti ng ,

re cr ui t i ng , h ir i n g, ho st in g, an d h ar dw a r e

pu rc ha s e s. I be ca me th e o n e - ma n a rm y

re sp on s i bl e f o r t r a c k in g an d co mp le ti n g a l l o f

th e a b ov e. A le p h a n d Ap p s ys t o o k ow n e rs h i p of

th ei r e n d a n d di d g o o d wo rk in it ia l l y ,

re in fo r c in g m y v i e w th a t k e ep in g te c h i n- h o us e

wo ul d n ot a d d an y va l u e t o A v i ce na . It w a s

ea si er le tt i n g t h e m s o rt ou t w ha t n e e de d t o b e

do ne .

Id en ti t y an d i m ag e d e s ig n w a s on e a re a wh e r e w e

sp en t a lo t of t im e. I h ad b ee n a s tr on g


b e li ev e r in t he p o w e r o f br an d i de n t it y b e f o r e

I g o t t o sc h o ol a n d th e tw o co ur se s w it h D o n

ha d f u r th e r re in fo r c ed it . W e h a d t o g et th e

br an di n g ri gh t up -f ro nt b e ca u s e we w o ul d n o t

ge t th e op p o r t u ni t y t o re vi s i t i t l a te r .

I n e ve r e xp e c t ed i t t o b e a f a ir yt al e a nd i t

wa sn ’t . T he r e we re h ic c u p s, b o u ts o f ac ne ,

ir ri ta t e d di g e st i v e sy st e m s , s h o u ti ng ma t c h es ,

an d t an tr um s. Sa rw ar , D e ni se , a nd I g el l e d v er y

we ll a s a te am a nd th ou g h t he r e we re is s ue s a t

th e p r oj e c t m an a g em e n t le ve l, t h e y d i d n’ t

be co me a f a c t or in ou r p e rs o n al ch e m i s tr y . Al l

th re e o f us we nt t o g re a t p ai n s to e n s ur e t ha t

ou r mu t u al r e l a ti o n sh ip s st a y ed p o s i ti v e .

Ev er y ti me I wo ul d bl ow a fu se o n K ar ac h i , I

wo ul d wr it e a s ho r t n ot e t o SM a nd Da vi e s o n

th e si de t o k ee p t h em in t he l oo p a n d l e t t he m

kn ow t ha t i t w a s r a in i n g br im s t on e i n K a r a c h i

bu t cl e a r s k i e s p r e va il ed i n Sa n t a A na .


From: Jawwad

To: SM; Davies; fahad; mk; fawzia

Sent: Thursday, July 17, 2000 10:24 PM

Subject: www.avicena.com

1. Please sort out the login issue. It has been more than four weeks since I

originally pointed it out and recently informed Denise as well as Fahad

about it. We cannot get past the first security screen whose official user id

and password is (Avicenna, avi2000). FIX IT24

2. Please do whatever is required to sort out the server issues. It’s becoming

a joke now. I have been hearing about server issues ever since we installed

the Servelet Engines. If there is something that needs to be done, do it or get

it done. Don't keep on sending emails back and forth. Use the PHONE.

24 B u i l d i n g t e c h n o l o g y a n d c o m m e r c i a l i z i n g i t a r e t w o d i f f e r e n t d i m e n s i o n s . N o w t h a t w e h a d c o n t e n t a n d f r i e n d s a n d f a m i l y l o o k i n g a t o u r o f f e r i n g , t h e r e w a s a s t e a d y s t r e a m o f e r r o r s , b u g s a n d f e e d b a c k c o m i n g i n . F r o m a m a r k e t i n g p o i n t o f v i e w t h e l a s t t h i n g y o u w a n t e d w a s t h e a p p l i c a t i o n t o c r a s h d u r i n g a c u s t o m e r d e m o n s t r a t i o n . F r o m a q u a l i t y a s s u r a n c e p o i n t o f v i e w w e h a d b e e n w o r k i n g w i t h t h e t e c h n o l o g y s i n c e J a n u a r y 2 0 0 0 . S i x m o n t h s l a t e r i t s h o u l d h a v e w o r k e d b u t i t d i d n ’ t . Y o u c o u l d l i v e w i t h t h a t , w h a t y o u c o u l d n ’ t l i v e w i t h w e r e b u g s t h a t w e r e f i x e d b u t w o u l d s h o w u p a g a i n , t h a t w e r e n ’ t f i x e d d e s p i t e b e i n g i d e n t i f i e d m o n t h s e a r l i e r a n d s h o w s t o p p e r s t h a t w o u l d s t o p u s e r s a t t h e f r o n t p a g e ( e . g . l o g i n e r r o r s ) a n d n o t l e t t h e m d o a n y t h i n g a t a l l w i t h t h e s i t e . O n e o f t h e p r o b l e m s b e i n g f a c e d i n K a r a c h i w a s t h e a b s e n c e o f a d e d i c a t e d P r o j e c t M a n a g e r ( P M ) o n A v i c e n a w h o c o u l d t r a c k w h a t w a s h a p p e n i n g . A l e p h a s s i g n e d t w o s e p a r a t e P M o n e a f t e r a n o t h e r b u t t h e i r n o n - A v i c e n a w o r k l o a d m a d e t h e m i n e f f e c t i v e . I t w a s o n l y a f t e r A s h a r ( s e e t h e h i r i n g c h a p t e r ) j o i n e d f u l l t i m e t h a t t h i s p i c t u r e s t a r t e d i m p r o v i n g .


3. My understanding is that the site WILL BE up and running (New

version, look and feel and bug fixes) by this Friday. Please confirm that this is

the case. If it’s not then give me a final date.

4. If there are any issues with any of the above, I would appreciate if I am

informed immediately.

5. So far I took a backseat since I assumed that technical management of the

project will be taken care of in Aleph Pakistan. I am extremely dis-satisfied

with performance on that side. The only result of that move is that we have

seen no progress at all in Avicena's work. If you feel that this statement is

incorrect, please feel free to correct me by pointing me towards a link that

works and has implemented all of the changes that have been suggested since

early May.

7. If you have work that Fawzia needs to do, please send very very detailed

instructions and follow up on a regular basis. Fawzia's speciality is not NT

configuration. If you can manage it from Pakistan, terrific, if you can't, call

her up and walk her through whatever it is that needs to be done.

8. As you can obviously tell, I am really upset. So for a change, do

something to pacify me. I am not at all interested in a conversation. Show

me some action and show me the site.

Jawwad


Sidebar: Email Effectiveness

Despite the role technology has played in my life and the

tech focus of my jobs and my companies, my humble

recommendation is to always use the phone or a more

personal mechanism for getting your point across or

ensuring that something gets done. Email is fine for

sharing information, connecting, and staying in the loop.

For real work use the phone or use your feet and have a

one-on-one meeting.

From: Aqeel Khan

To: Jawwad; SM; Nadeem Ahmed; Mohsin Khwaja; Deni se Davies


Subject: Avicena

Please Check Welcome Page For Avicena (With New Mouse Overs)

http://www.alephinc.net/avicenanewlook/welcome.htm

Aqeel Khan

From: Jawwad

To: SM; Davies; fahad; mk; fawzia

Sent: Thursday, July 27, 2000 10:24 PM

Subject: www.avicena.com

Fahad can you please take a look at why www.avicena.com throws a

“Directory Listing Denied. This Virtual Directory does not allow contents to

be listed” error.

And let me know when and how it will be resolved. Apparently NOBODY

else gives a shit. Let me know if you need access to any resources.


From: Sarwar Mushtaq

To: TeamInKarachi


Subject: Re: Avicena

I AM REALLY NOT IN THE MOOD TO START MAKING MORE

UNPLEASANT CALLS TO KARACHI. CAN WE PLEASE GET OUR ACT

TOGETHER???????????????????? 25

From: Jawwad

To: SM

Sent: Thursday, July 20, 2000 12:50 AM

Subject: Re: avicena logo f inal

I am really big on symbolism. To my untrained eyes it looks and feels like a

typical Ayn Rand-ish character's bid to reach the star (albeit a red one).

Can't help the romantic tendencies26. BTW I am talking about AV3.gif where

you start thick and end thin. Nadeem just called and asked about look and

feel. Did you guys connect?

25 W h e n S a r w a r t h r e w a f i t , h e t h r e w a f i t . M e r c i f u l l y f o r u s , t h e b r u n t o f t h e s e r a g i n g s t o r m s w a s b o r n e b y A l e p h ’ s K a r a c h i t e a m s i n c e S a r w a r t o o k g r e a t p a i n s t o e n s u r e t h a t A v i c e n a t e a m h o s t e d i n A l e p h ’ s K a r a c h i p r e m i s e s a l w a y s f e l t a t h o m e . 26 A s w i t h n a m e s , w e w e n t t h r o u g h n u m e r o u s i t e r a t i o n s o n t h e l o g o f r o n t . T h e p r o b l e m w i t h d e s i g n i s t h a t i r r e s p e c t i v e o f h o w y o u e x p r e s s i t , y o u c a n o n l y t e l l w h a t y o u l i k e w h e n y o u s e e i t . T h i s m e a n s y o u e n d u p d o i n g t h r e e t o f i f t e e n i t e r a t i o n s b e f o r e y o u h i t s o m e t h i n g t h a t w o r k s . A n d t h e n y o u t w e a k i t .


From: Dylan Steeg

To: [email protected]

Sent: Tuesday, August 08, 2000 6:21 PM

Subject: Re: SAMO

Jawwad,

Yes, I started @ Intel Capital last month. Learning lots, have no time, but

having fun. I look forward to the launch email and hopefully {like all great

start-ups} you will have an enormous launch party in order to squander 33%

of your VC's invested capital in one swoop. Sorry. Fatigue setting in.

I hope that all is well with your family.

From: Jawwad

To: Fred Poska

Date: August 26, 2000

D e a r F r e d

In our last discussion you had asked us to give you a plan for tackling the

actuarial segment for our online education business. The material in the next

two pages gives an outline of that plan.

S O A S u r v e y

The Society of Actuaries recently published a membership survey. The most

relevant results and implications are presented below:

49% of sample supported an effort to establish an online university that

supported professional development and continuing education activities

under Society of Actuaries banner.


Members indicated a preference for Employer and Society of Actuaries

sponsored events compared to events conducted by third parties and for

profit companies.

21% of the sample expressed a definite desire to use online courses for

professional development and continuing education efforts. 40% of sample

expressed a desire to mix online courses and conferences to support their

continuing education activities.

Employers generally underwrite professional and continuing education

expenses. As a result the target segment is relatively price insensitive between

the price range of 600 – 1500 dollars. A price tag beyond that level would

have an impact on demand for courses.

73% of the profession has access to the Internet at home as well as at work.

50% of the sample felt that continuing education courseware should focus

on new and emerging issues in the practice area. 74% of the members also

agreed that the choice of subject was the key decision factor in their

selection of a seminar or conference.

For us this has the following implications:

One of the largest membership organizations in the profession has validated

the need for an Internet based professional development workplace for

Actuaries. A significant percentage of members have validated the need for

online courses.

We can increase our chances of acceptance by the profession if the course

ware is co-branded by Society of Actuaries and is offered as an Employer

Sponsored program.


The choice of subjects can have a tremendous impact on the popularity and

acceptance of a course.

Strategy going forward27

The drivers for the strategy are credibility and acceptance. The results of the

survey have already set a direction for us. Our objective now is to enroll

the full support of Society of Actuaries for our course development efforts

and to get as many employers onboard as possible. Although the ultimate

end users are still individual actuaries, we feel that the right distribution

channel is the employers and the Society of Actuaries. The following steps

will allow us to move in that direction.

Conduct an additional survey. The objective is to determine membership

preference for subject areas that we are working with. The survey has

already been developed and tested with a sample of eight actuaries. Next

step is to roll out the survey over the next four to six weeks.

27 T h i s e m a i l m a r k s a k e y t r a n s i t i o n i n t h e A v i c e n a s t o r y . B e f o r e I w r o t e t h e s t r a t e g y p a p e r f o r F r e d P o s k a , I w a s s u r e t h a t t h e m a r k e t f o r o u r p r o d u c t w a s m e m b e r s h i p o f p r o f e s s i o n a l b o d i e s - d e f i n i n g u s a s a B u s i n e s s t o C o n s u m e r ( B 2 C ) v e n t u r e . P o i n t ( 3 ) o f t h i s n o t e m a r k s t h e t r a n s i t i o n t h a t c h a n g e d o u r f o c u s f r o m a B u s i n e s s t o C o n s u m e r m o d e l t o a B u s i n e s s t o B u s i n e s s ( B 2 B ) o n e . J u s t a s A d r i a n ’ s n o t e l a t e r o n i n C h a p t e r 1 2 m a r k e d t h e e n d o f A v i c e n a f o r m e , t h e t r a n s i t i o n f r o m B 2 C t o B 2 B m a r k e d t h e b e g i n n i n g o f t h e e n d f o r u s . F r o m a d i s t r i b u t i o n p o i n t , i t w o u l d h a v e b e e n s i m p l e r a n d e a s i e r t o l a u n c h w h a t w e h a d w i t h S o c i e t y o f A c t u a r i e s a n d t h e i r 1 6 , 0 0 0 s t r o n g p o o l o f m e m b e r s t h a n t o g o a f t e r i n d i v i d u a l i n s u r a n c e c o m p a n i e s , s e l l i n g t h e m o n t h e n e e d f o r t r a i n i n g a n d p r o f e s s i o n a l s e r v i c e s f o r t h e i r a c t u a r i a l e m p l o y e e s . I n t h e e n d , t h e d e b a t e b o i l e d d o w n t o c h o i c e o f d i s t r i b u t i o n c h a n n e l a n d m e d i u m u s e d t o c a p t u r e a n d a t t r a c t c u s t o m e r s . W e d u m p e d s i m p l i c i t y a n d a d d e d a l a y e r o f c o m p l e x i t y t h a t w o u l d m o v e o u r t i m e t o m a r k e t b y a n o t h e r s i x m o n t h s . M o r e o n t h i s l a t e r . T o F r e d ’ s c r e d i t , b e i n g t h e s h a r p p r o f e s s i o n a l h e i s , h e p o i n t e d o u t t h a t t h i s t r a n s i t i o n w o u l d d i l u t e o u r f o c u s a n d h a r m o u r c h a n c e s f o r r a i s i n g m o n e y a n d o u r a b i l i t y t o e x e c u t e .


Meet with the Society of Actuaries and present options for developing co-

branded courseware. We would also discuss opportunities to use Avicena’s

platform and technology to leverage existing content developed by the

Society of Actuaries. Follow up would include approaching additional

international membership organizations in United Kingdom, Australia and

Canada. We have already established contact with the Society and are in the

process of arranging the first meeting.

Meet with mid size reinsurance companies and present options for

developing courseware for in-house training programs and clients. In case a

program does not exist, we propose the establishment of a virtual training

center to leverage existing content and training programs. Client Actuaries

and Underwriter training is a significant value added service provided by

reinsurance companies and the virtual training program is a very cost-

effective way of providing that service.

Reinsurance firms are the most efficient distribution channel for rolling out

our product to the insurance industry. A mid size reinsurer has a portfolio of

100 – 500 insurance companies who would get exposed to Avicena

technology and courseware, when the reinsurer signs up with Avicena.

Create visibility for Avicena by attending seminars targeted at Valuation

actuaries and Reinsurance actuaries. We are now covering all the seminars

offered before the Society of Actuaries annual exhibition in October 2000.

We feel that the events are an excellent networking opportunity as well as a

chance to show off and get feedback on our products.

Use the Society of Actuaries annual Exhibition in October this year as the

official launch date for our course offering.

I hope this answers some of the questions you have had in your mind. I

look forward to seeing you on Tuesday, the 29th. Best Regards.

Jawwad Farid


From: Jawwad


Date: 27 August 2000

Dear Barbara

Thank you very much for your email. As requested I am enclosing some

additional information about Avicena LLC.

We are a year old online education startup that teaches Applied Finance on

the Internet. Over the past twelve months, we have developed and refined

our teaching methodology, our online learning environment, our course

generation processes and our technology that allows our customers to

generate customized courses on the fly. Our planned course offering are

divided in four major tracks:

a. Derivative securities and applications

b. Stochastic Models

c. Asset Liability Management

d. Intersections (A compilation of selected courses that build on principles of

Financial Economics, Investment & General Management. Examples include

Applied Strategy, Value investing & Fundamental analysis)

We founded this company because we believe that:

28 I n A u g u s t 2 0 0 0 , t h r e e m o n t h s a f t e r o u r m o v e t o C a l i f o r n i a w e m a d e c o n t a c t w i t h B a r b a r a w h o w a s m o r e t h a n r e c e p t i v e t o t a k i n g a l o o k a t w h a t w e h a d t o o f f e r . O u r r e s p o n s e – w e w i l l g e t b a c k t o y o u l a t e r . I f f a t e i s k i n d e n o u g h t o g i v e y o u a c h a n c e , p l e a s e d o n ’ t s l a m t h e d o o r i n i t s f a c e .


As the paths of banking and insurance industries merge, there will be an

increasing need for course ware that transfers the ability to apply new

knowledge and skills to practical problems in convenient, self controlled

and self directed environments.

For professions responsible for the design of financial products, there will be

a need for a broader in-depth understanding of complex financial securities

and transactions.

Professionals within the banking and insurance industry only have a

superficial understanding of derivative instruments, stochastic models and

asset liability management. There is strong and definite interest on part of

the same professionals to educate themselves, but the technicality of current

literature in these fields prevents them for taking any corrective action.

We feel that an opportunity exists where we can create valuable options for

professional development and continuing education for Society of Actuaries

membership. One such option is the development of co-branded

educational courseware on the Internet for continuing education and

professional development needs of Society members.

I would very much like to meet with you and the continuing education

department to present some of the ideas that we are working with as well as

discuss scenarios where immediate cooperation between the Society of

Actuaries and Avicena LLC is possible. I will call you on Friday afternoon

(August the 23rd) to setup a mutually convenient time. Best Regards

Jawwad Farid


From: Jawwad@School

To: Dylan Steeg29

Subject: Re: SAMO

Date: Fr i , 8 Sep 2000 17:02:37 –0700

Dylan

Here comes the awkward moment. We are still trying to go live in 10-15

days (yes, it never ends.) But at least the site is at a level where we can start

showing it to people without undue embarrassment. Three favors

1. It’s still in Alpha (beta to follow in 10 - 14 days) but you will get a link

emailed to you sometime in the next one week

2. I will also send you a 2 page exec summary.

3. I need an introduction within Intel Capital. Would you be in any position

to help out on that side?

4. Is there anybody else within the institutional VC side that you think

would be interested?

D&T has agreed to accept us as a formal client. They need to do their regular

due diligence before the process is completed but they have agreed in

principle to do it. They have also introduced us to a law firm they work

29 D y l a n a n d I h a d a l r e a d y w o r k e d t o g e t h e r o n t h e s t r a t e g i c p o s i t i o n i n g a n d b e n c h m a r k i n g p a p e r f o r A v i c e n a w i t h r e s p e c t t o i t s c o m p e t i t o r s . T h i s w a s o u r l a s t c l a s s p r o j e c t i n t h e s t r a t e g i c m a n a g e m e n t c o u r s e t a u g h t b y R a l p h B i g g a d i k e . B e s i d e s s t r a t e g y , w e h a d a l s o s h a r e d a g r o u p i n T u r n a r o u n d s w i t h L a u r a R e s n i k o f f a n d h a d b e c o m e g o o d f r i e n d s . G i v e n h i s r o l e a t I n t e l C a p i t a l , h e w a s a n a t u r a l c h o i c e a s a p e e r r e v i e w e r f o r b u s i n e s s p l a n s , p r o j e c t i o n s , a n d i n v e s t m e n t m e m o r a n d u m s .


with (Paul Hastings) and have agreed to shop the biz plan around within the

angel community in Southern California.

I am in NYC these days checking out competition and talking to some

potential customers but I should be back by the 19th of Sep. Let me know if

you need any additional information.

The business by the way is online education and we are targeting finance for

professionals and practitioners. It would be nice to get Intel onboard as a

customer also. Take care

Jawwad

From: Dylan Steeg

To: Jawwad

Sent: Fr iday, September 08, 2000 2:20 PM

Subject: Re: SAMO

Jawwad,

Good to hear from you. There are two areas of focus within Intel Capital

which I believe you may or may not fit within. The first is Services, and the

second is E-Business. I'm leaning towards the latter, but am not sure.

Let's talk this weekend. I'd like to see your latest executive summary and

proforma. I can start looking @ the org chart here and find out who would

be right in looking at this.

The tricky thing is, Intel Capital typically wants to see a new technology,

ability to increase the demand for chips, or a high-chance of return. I know

that you were working on a new way to aggregate and provide content.

Perhaps we should focus in on this ability, and use the education focus as its

first application. {Writing while thinking}. I'll call you.


Dylan


To: Dylan Steeg

Sent: Saturday, September 09, 2000 6:51 AM

Subject: Avicena

Dylan

This is where its gets confusing. Even I am not sure where we would fit in

with this classification... May some background info will help

How do we see our selves? We see ourselves as a business that produces

courses on applied finance (How to do Proforma Projections to Asset

Liability Management to Portfolio Construction to Interest Rate Models and

Derivative Instruments).

There are two sides to this business. The first is content generation where we

feel we have an edge due to the non-traditional and unconventional

approach to teaching that we are taking. Our learning experience is a four

step process.

a. Introduce terminology and notation (break the code, understand the

language),

b. Introduce basic principles,

c. Walk through applications and

d. Provide feedback on performance.

e. Add an additional layer that allows customers to generate custom courses

to learn what they want and you have a powerful combination

The second side is marketing the stuff. The first target market (proof of

concept) that we have selected to work with are actuaries and corporations

with structured and unstructured training programs. If the program exists we

are a supplement, if it doesn't we are a very powerful alternative to existing


options. Once the product has been tested and refined, we scale it up to

universities and distance learning programs (think of all the junior colleges

with dreadful finance professors and the processors they would have to buy

to support this venture). The key thing is to position this as a supplemental

choice rather than a competitive threat or alternative

How does it fit with Intel chip making business? I primarily see this as

another application that pushes more people to spend more time with their

computers and on the internet -- Broad based Internet Application --

demand for servers & hosting services

Are we services businesses? I am not sure since traditional definition of

service implies fixed costs and overheads and manpower and labor. Yes there

is an aspect of all these within our venture, but once the content is up and

running, you can recombine it, repackage it and resell it as many times as

you want. Which is one reason why we believe that this will be a very

profitable venture once we get beyond a critical mass of courses that can be

licensed on an annual, per seat basis.

The exec summary is ready and available but the numbers are all out of date.

I would need to spend some time on that before I can send that you. But the

link should be with you before the end of next week. In the mean time if

you have any questions at all, please feel free to email me. Take care and

thanks

Jawwad


To: SM; Denise Davies; Fawzia; Ashar; Nadeem; Naushad

Sent: Wednesday, September 06, 2000 5:28 AM

Subject: Avicena

Ladies and Gents...


The site is up at www.avicena.com. The user id is denise, the password is

denise1. Please go through the first course called corporate finance

We have all put in a tremendous effort into this between January and now

and have made really outstanding progress almost on all fronts and have

also learned a lot about how this would come together. All the stuff is out

there. But ...

Notice there is always a but.

There is still a lot to be done. Naushad is facing a resource crunch and needs

more people to meet the deadline, I had a long conversation with him and

his initial need is two developers with Java experience and expertise.

According to him the resources do not exist within Aleph. I have asked him

about the COCO team and he is not sure if there is anybody there that he

can use.

We now have two questions. We have the site. We have the first course.

There are some packaging issues and some stuff left over that is being taken

care of by Naushad. Between Ashar and Sharleen and Mohsin (employee

number four), these will be worked out over the next two weeks.

The big problems for us are the following issues:

1. Since this is the first time the site is working with a full course we are

getting a lot of feedback on User Iterface issues.

2. Course input has been a total nightmare without an automated way of

entering stuff inside and that brings us back to the backend question

3. Testing engine / part is also critical for moving forward and getting

customers on board.

B l u e S c r e e n P a g e 1 0 0 o f 2 6 8

How do we want to work with these issues?

I know that the answer in our minds is to lets get funding and then sort it

out but it will probably create more problems in this case. We have created a

lot of momentum in the last two months and putting a hold on the project,

may just as well kill it.

There is a time to market issue here also and an urgency to get more

customers on board. I also feel that we are now within an arms reach of

something really big and stopping short will just push us in the wrong

direction.

Please let me know how we want to proceed on this. I will look forward to

your comments. Take care


Takeaway

Inspiration: Inspiration is just the beginning of a

journey. What follows later is dull, boring and

unexciting. Without the dull and boring part there

is no beef.

Anger Management: There has not been a single

occasion in my life where I have looked back and said

losing my temper was exactly the right move at that

time. DO NOT LOSE YOUR TEMPER.

Sales cycles: Business to business sales cycle is

long. There is a big difference in buying something

for yourself and buying something for which you need

corporate and official approvals.

You need to start selling long before your product is

ready. Ideally pre-selling a product to a customer

reduces yours and his risk. You have some one to

underwrite expenses and he has an opportunity to

preview things before they are set in stone.

Validation: Pre-sales also provides an opportunity to

validate your idea at a concept stage. Ideally look

for market validation for your core selling points.

For e.g., the Society of Actuaries survey quoted in

the email above saved us a few thousand dollars

because it delved deep into the minds of our initial

target audience, asked and answered questions that we

wanted to get answered, as well as created

credibility in front of investors.


Strategic shift: Do not change a simple strategy with

a more complex one. Do not let go of a quick win that

will get you in front of customers and closer to

generating revenues for something more complex or

longer term. Small wins first.

Touch a customer: An opportunity to work with a

customer (no matter how small) should always be

preferred over an opportunity to work by yourself on

perfecting the product, perfecting your strategy or

improving your valuation.


Chapter Eight – Process

At t h e he a r t o f o u r b u s i ne ss m od e l w e re th e

co nt en t ge n e r a t io n pr oc es s e s we h ad t o p ut i n

pl ac e in K a r a ch i a n d C al if or ni a . U n d e r id ea l

co nd it i o ns , w e w e r e s et u p t o w or k w i t h f ou r

te am s— P r od u c t & Q A U .S . , C o nt en t U. S . , Co n t e n t

Of fs ho r e , an d St an d a rd s & QA O ff s h or e. I n

re al it y , w e c o ul d o n ly af fo r d t wo —m e he re i n

th e U. S . a n d A s ha r an d Sh ar l e en i n K ar a c hi .

Product Development Team US

:

Identifies courses for target segmentsDraws out course outlineMarket Tests outline

Content DevelopmentTeam: US

Generate objectives for the courseIdentifies resources withrelevant backgroundsGenerates course definition

Set atandards for the outsourcing team

Quality AssuranceTeam US

Approves outline forsubmission to offshore contentdevelopment teams.

Quality Assurance Team:Offshore

Approve content forsubmission to knowledge base.

Feedback to Offshore and USTeams

Content DevelopmentTeam: Offshore

Fills in course definition

Standards Team: Offshore

Ensures that content generated

follows guidelines for copyrights, flow, ease of use,applications, formats, etc

Knowledge base of conceptsand courses

Direct customers andrelationship partners Distributors and alliances


S i nc e w e st il l h ad to do e ve ry th in g w e h a d l ai d

ou t a b o ve , i t ma de se n s e t o in ve s t a l it tl e

ti me i n m a k i n g s ur e t h a t w e go t t h e pr oc es s

ri gh t. If t h at wo rk ed , t he n e ve n w i t h f ou r

te am s s ho r t a nd a h op e l es s r e s o u rc e s i tu a t io n

we c ou l d s t i l l de l i ve r so me t h in g .

Th e e m ai l s i n cl ud ed i n th is s e c t io n ar e

im po rt a n t fo r a fe w r ea s o n s. Fi rs t t h is i s t h e

on ly s ec ti on i n t h e e n t ir e bo ok , wh er e I

ac tu al l y hi n t a t o ne of th e r ea s o n s w hy Av ic en a

wa s d i ff e r en t f ro m it s c om p e ti t io n . T h e

in sp ir a t io n f or b re ak i n g k no w l ed ge do w n i n t o

at om ic co mp on e n ts an d t he n r ec o m bi ni ng i t ba s e d

on u s e r ne ed s a n d re q u i r em e n ts ca m e fr o m a

pa pe r p u bl is he d i n M I T S lo a n M an ag em en t

Re vi ew 30. T h i s a to m i c st r u c t u re o r DN A is w ha t

th e f ir s t e ma i l de sc ri b e d . I t w a s t h i s

st ru ct u r e t h a t a ll o w ed u s t o c re at e c us t o m

co ur se s ba se d o n in di vi du a l n ee d s o n t h e f l y ,

re al t i me a n d cr ea te a n o ff er in g t h a t w a s

un ma tc h e d a t t ha t t im e . T he se co nd em ai l

de sc ri b e s t h e mi n d s et re qu ir ed to m a ke i t wo r k .

It w a s th e p ro ce ss e s ou tl in ed i n t h e fo ll ow i n g

se ct io n t ha t m ad e i t p os s i bl e f or us to bu i l d

wi th le s s t ha n a m il li on do ll ar s , w ha t

co mp et i n g f i r m s c o u ld n’ t do w i t h mo r e t ha n 4 0

mi ll io n d ol la rs i n fu n d i n g . Th an k yo u, M e y e r

an d Z a c k. (I f t h e c o n te nt g e ts to o t ed i o u s f ee l

fr ee t o sk i p i t ).

30 T h e d e s i g n a n d d e v e l o p m e n t o f i n f o r m a t i o n p r o d u c t s , S l o a n M a n a g e m e n t R e v i e w , S p r i n g , 1 9 9 6 , M e y e r , M H & Z a c k , H Z .



To: AvicenaKarachi ; AlephKarachi ; SM; Denise;

Sent: Sunday, September 10, 2000 8:13 PM

Subject: Course Generation

Ashar and Shar leen

Please work within this process for all future work on the courses side. Let's

take a step back from the course on ratio analysis and see how we can

proceed using the following process. Once we have done that, we can go

back to the text and use sections and chunks of it in the concepts that we

decide to teach.

These are just guidelines that I had developed working on the first course.

They need to be formalized and improved and if anyone has any suggestions

about what needs to be done, please feel free to let me know. Take care

Jawwad

Process for generating courses

1. Create outline in the standard definition format. The standard definition

format is

a. Notation and Terminology

b. Basic Principles

c. Applications Feedback (Questions & Answers, MCQ's, Examples,

Additional Cases)

2. Pass the outline back to the course generators for initial review and

feedback. Add more questions, materials, comments, items, etc to the outline

and the standard definition document.


3. The outline serves a key purpose. It is a blue print of what we want to

teach. What is it that we want the customer to walk away with when he is

finished with the course? What is it that he will retain when he is done?

4. The key is to remember the objectives behind each section of the standard

definition format.

5. Notation and Terminology are only meant as introducing base definition

and material. These items are generally too basic to warrant a full course or

too simple to be covered as a standalone concept

6. Basic Principles is what you want to teach. What are the six things you

want the person to remember, retain, and learn at the end of the course. In

the first few iteration the focus should not be on generating content, but

more on identifying and designing the course objectives and figuring out

what is the best way of covering that material. As the course outline get

more defined and we are able to identify even smaller concepts that we

would like to teach, we start focusing on what is the best way of teaching

the material

7. Our objective should be that courses should always be taught by example.

Avoid long unbroken chains of text that elaborate on definitions and

concepts. Always engage the customer with an example that he can related

to and follow in his head. This is the best way of teaching. People tend to

get lost in the abstract

8. Application. Application will always be a comprehensive walk through

case that lays out what needs to be done and brings together the material

covered in Notation and Terminology and Basic Principles. This is really

important. If it didn't warrant an inclusion in the case, it should not be there

in the first place. On the other hand if it’s important enough to be included

in the preceding material, it has to be illustrated in the case.


9. Sometime we may need two separate cases to cover all the concepts

covered in a course. When this happens, we need to be more careful about

how the course is structured. The best possible solution in such a situation

would be to break the course in two parts

10. Finally remember that the customer has to have a sense that he walked

away with something. That he achieved something and learned something.

This has important implications for motivation as well as the optimal course

length.

Once the standard outline has taken shape, we can go ahead and start filling

in the content. However it may be advisable to repeat the same exercise for

the concepts at a lower level.


To: AvicenaKarachi , AlephKarachi, Davies, SM;

Sent: Sunday, September 10, 2000 5:42 AM

Subject: Re: course 2

Sharleen

I read the material once again. More suggestions.

1. First, please don't look at this as criticism. These are just point of views

that I have developed over the past six - eight months and Ashar has also

experienced them on a first hand basis. This is not a reflection on your work,

just guidelines for all of us. (have some free time now since one of my

appointments got cancelled.)

2. Before any of us write content we have to imagine who is the ultimate

end user of our products and under what environment will he be using our

courses. Our ultimate end user is someone between the ages of 25 - 50

years, who wants to learn something new and different and would like to


use the net to do that. There are a few scenarios that you can play with to

put things in perspective

a. He is probably working late at night or early in the morning, is probably

working with a lamp light in a dark room that is forcing him to go to sleep.

So you have two enemies. He is tired and he is sleepy and he is somewhere

that is literally screaming at him to drop this and go to sleep. How do you

keep him up? You can only keep him up if you keep him engaged. If you talk

to him and ask him to do things or throw things at him that are interesting

or relevant and that he can associate with. So we post questions about what

is the right price and how can you figure it out. Or here is a puzzle; try and

solve it. Or even present things at an intuitive level (Stop reading. Try and

think this through before you move forward.)

b. Scenario b is even more complicated. Now the same guy is working from

office and needs to learn something in a hurry either for a meeting or a

conference call or simply because he has to understand this before he leaves

for home. In this scenario it’s important that we use a different approach.

What are the seven key things he needs to know about ratio analysis. Why is

it important? How does it make sense at an intuitive level? What is the

shortest and easiest route for him to understand these? Once again

engagement is important because it gives him a sense that he is picking up

something. It also allows him to focus on doing something rather than

reading it.

What is the bottom line?

1. Think of yourself when you are tired, sleepy or in a rush and then think.

How would I react to what I just wrote if I was in that state of mind? What

can I do to make it more attractive for myself?

2. Don't use definitions. Use creative ways of showing people what you

mean. If you have to use a definition don't go beyond a couple of words

(one short sentence is all that you can play with)


3. Use lots of examples and opportunities for engaging and interacting with

your customers

4. Use real life brand name exciting examples and real data. God knows

there is enough out there

5. Keep it simple, concise to the point and attractive

6. Be very very very careful of copy rights issues.

Let me know if you have any comments or suggestions. Take care

Jawwad


Takeaway

On Process: Whether it is quality assurance,

productivity, or a decision to scale up, there is one

common denominator that determines how good a job you

could possibly do. That denominator is process. Fix

the process and everything else will fly. Ignore the

process and thou shall wilt, wither away and die.

Do not fall in love with your process.


Chapter Nine – Launch

Th e i d e s of la un ch . T ak e me aw ay f r om sl e e p fo r

a w ee k, p um p m e f u l l of Mo un ta i n D e w , p u t m e o n

a je t p la n e t o a c it y wh er e I h av e n e ve r b e en ,

de nt m y lu gg a g e, b o o k m e a ro om i n a lo us y 19 t h -

c e nt ur y h o t e l , ov er dr aw m y ac co un t, c an ce l m y

ca rd s, cr as h m y s e r v e r, i g n o re m y i ns t r uc t io n s ,

de cl in e m y ke y pr e s e nt er ’ s v is a a pp li ca ti o n ,

an d th en ca l l m e. T ha t m or e or l es s s um s i t .

Th e o n l y t hi ng I l ef t o u t ar e t he ob sc en it i e s

be ca us e I wa n t th is b o o k t o r et ai n i t s PG -1 3

ra ti ng .

Do es n’ t ma t t e r h o w m uc h y ou p re pa re f or y ou r

la un ch , w he n t h e t im e c om es to pu s h th e sw it ch ,

yo u w i l l t ak e t h e w ho l e bl oc k d ow n w it h y o u .

Al ep h a nd Ap ps ys ’ K ar a c hi te am go t t o a po i n t

wh er e t he y w o ul d h a v e wa lk ed o u t o n m e i f

Sa rw ar ha d n ’ t b u f f e re d t he w a r m wi nd s bl ow in g

fr om m y en d. B u t t he n it w as a ll v er y

an ti cl i m ac t i c . T he re w er e n o v e nt u r e

ca pi ta l i st s 31, n o cu s t om e r s, a nd n o mo n e y. J u s t

a r ea l l y n ea t s ys t e m a nd an ev en ne a t er de m o .

We d id ge t qu it e a f ew l ea ds t ha t w e st ar t e d

fo ll ow i n g u p b ut t h e m i l l i o n- do l l ar c h e ck t h a t

I th ou gh t wo ul d b e wa i t i n g a r o u nd t h e c o r n e r

31 P e o p l e w i t h m o n e y w h o w r i t e b i g c h e c k s f o r s m a l l c o m p a n i e s s o t h a t t h e y c a n m a k e e v e n m o r e m o n e y f o r t h e p e o p l e w i t h m o n e y .


w h en i t al l c a m e to g e th er w a s n ow h e re i n s ig ht .

Ha d I f o re s e en th is d i s ap po i n ti n g e n d r e s u l t, I

wo ul d h av e t ak en i t ea si er a n d s al va ge d a t

le as t a f ew r el a t io ns hi p s t ha t w er e da ma g e d

be yo nd re pa ir i n t he tw o p r e -l au nc h w ee k s . At a

mo re p er so na l le v e l th e p o s t l a u n ch d ep re ss i o n

wa s a c ou nt er i nt ui ti ve ph e n o m en o n . Yo u w er e

fi na ll y a bl e t o s h o w th e w or l d w h at y ou h a d

sl av ed tw o ye ar s t o pr o d uc e b ut t he wo rl d

wa sn ’t i nt e r e s t ed .

In a p a ci n g se ns e, l au nc h i s t h e f ir st o f m an y

mi le st o n es to co m e . D on ’t ex p e c t to ge t i t

ri gh t o n yo u r fi r s t l au n c h an d d on ’ t ex pe c t

cu st om e r s t o sw ar m ov er a nd b u y y ou r pr o d u ct .

Yo u n e e d t o h av e e no ug h r es e r ve s l ef t o ve r t o

fi gu re ou t w ha t n e e ds to be fi xe d a n d tw ea k e d

fo r y o u to re a c h th e s e i mp o r ta nt r o un ds ( g e t i t

ri gh t a nd cu st om e rs sw ar m ) . I f y ou gi ve it al l

or t he l au nc h t a k e s i t a l l, y o u w i l l b e th e

bo xe r w it h t he b ro ke n n o s e w ho t h r e w in th e

to we l a n d c o u l d n’ t ma ke i t p a st r o u n d t h re e.



To: Nadeem Ahmed; Denise Davies; SM; AlephKarachi ; AlephBoston;

AvicenaKarachi

Sent: Tuesday, September 12, 2000 3:04 AM

Subject: Avicena New Course and Si te

Davies, SM, Nadeem, Fawzia, Mohsin, Naushad, Asif, Saif, Waseem, Sabeel,

Ashar, Sharleen, Fahad Zubair, Fahad Shameem

Thanks a lot. I cannot express my gratitude for what you have done. You

have all done a tremendous job in getting us where we are today...

I can't apologize for keeping all of us awake (since it is still not over) at all

time of day, night, family quality time, personal time and other unreasonable

demands that I have made since January but I can assure you that together

we have built something that has no parallel in the world. The technology,

the interface, the content and the quality of everything that has gone into

Avicena has been just world class.

Of course this doesn't mean that the work by any chance is over. We are

almost there. It’s the last 3% - 4% that will drive some of us into nervous

breakdowns and burn outs. But it is the last 3% or 4% that will get us

beyond and better than anything anyone has to offer anywhere in this

world. We don't want to be world class. We want to be in a class of our

own, a class that is good enough to change the world.

Once again gratitude on the part of the team at Avicena for the support and

commitment shown by everyone involved in making it happen. Bear with

me for a few more years (ok... ok... months... just a few more months) and

the world will come knocking on our doors.

Take care

Jawwad


For those of you who are wondering what is this about it.

Check out (www.avicena.com) Click on courses, click on corporate finance,

and behold, We are live and kicking.

Naushad can you pls make sure that everyone associated with Avicena get a

copy of this email. SM please make sure that Saif and Sabeel get this. Ashar

confirm that Sharleen gets a copy of this message.

BT W b e tw ee n a ll o f u s. . . r eg i s tr at io n st il l

do es n' t wo r k …

From: Bates, Ken

To: Jawwad Ahmed Farid

Sent: Tuesday, October 24, 2000 12:50 AM

Subject: Surf ' s up

If you pull your nose away from the monitor screen once in a while, you'll

find that REAL Californian's gotta know how to SURF! (not the "web", the

waves!!) Haven't heard from you and miss our chats. Did you give me an

Avicena password? I try to check the site, but don't have a password. Let me

know, so I can take some of your finance courses or give you some feedback.

Love to Fawzia and Amin (no others yet, right?)


To: Bates, Ken

Sent: Tuesday, October 24, 2000 8:47 PM

Subject: Re: Surf ' s up

Hello there...

I have kind of been living in an alternate reality version of the real world

where there is no sleep just caffeine and servers crashing right left and

center. One last minute esoteric bug has now delayed the launch of Avicena


for more than two weeks. We finally figured out what was wrong and are

working on it.

Chicago went very well. Four demos lined up for sometime around this

week. Speaking to another group on the banking side of business that has

customers we need. And we have the tech that they are looking for.

Looks like that we may actually have that half a million in revenues before

the year is out. Insha Allah... Everything else is pure madness. The user id

is denise. The password is denise1. It goes up and down as we update it and

test it and crash it. But its normally around. If you can’t get in at all, try

half an hour later, or call me.

Unfortunately to become a real Californian would require that I switch from

my very healthy lifestyle of going to office, working, sleeping at office,

working, coming home, changing clothes, working, sleeping at home,

working... going to office... working... eating at office...working.............

I miss Harvey... Was in Chicago the other day32....

32 W h a t a r e e x h i b i t i o n s r e a l l y g o o d f o r ? I n r e a l t e r m s t h e S o c i e t y o f A c t u a r i e s ( S O A ) A n n u a l E x h i b i t i o n , t h e l a u n c h i n g p a d f o r A v i c e n a , d i d n ’ t d o t h a t m u c h f o r u s . I t s e t a d e a d l i n e t h a t w e h a d t o m e e t , w h i c h w e d i d n ’ t . I t g a v e u s a n o p p o r t u n i t y t o t a l k t o a g r o u p o f c u s t o m e r s a n d s e e h o w t h e y w o u l d r e a c t t o o u r p r o d u c t c o n c e p t . W h i c h t h e y d i d . I t g e n e r a t e d a h a n d f u l o f l e a d s t h a t w e t r a c k e d d o w n a n d f o l l o w e d u p a f t e r t h e e x h i b i t i o n . D i d w e c l o s e a n y m a j o r d e a l ? N o . D i d w e s i g n u p a n y c u s t o m e r s ? N o . D i d w e r o c k t h e w o r l d w i t h o u r c u t t i n g e d g e t e c h n o l o g y ? N o t r e a l l y . D i d w e f o l l o w u p w i t h B a r b a r a ? O u c h . W a s i t w o r t h i t ? Y e s . P a r t i c i p a t i n g i n e x h i b i t i o n s i s s o m e t h i n g t h a t y o u h a v e t o d o t o c r e a t e v i s i b i l i t y , t r a c t i o n , k e e p a n e y e o n c o m p e t i t i o n a s w e l l a s s o l i c i t c u s t o m e r f e e d b a c k i n a c o s t e f f e c t i v e f a s h i o n . Y o u g e t b e t t e r a t i t w i t h t i m e a n d p r a c t i c e . F o c u s e d e v e n t s l i k e t h e S O A a f f a i r a r e r e c o m m e n d e d b e c a u s e t h e y b r i n g y o u r t a r g e t m a r k e t t o y o u r s t a l l . T h e r e s t i s u p t o y o u .


From: Jawwad@School

To: c lusterx00

Sent: Monday, November 06, 2000 10:02 PM

Subject: Update from LA LA Land: Jawwad Farid

Remember me...

We are now live. The team has spent a tremendous amount of time and

energy in rolling out the site. www.avicena.com has been up from 27th

October and moved into Beta33 Testing on 1st November. Avicena LLC, the

business, was officially launched at the Society of Actuaries annual exhibition

in Chicago on 15th October. We have been on the road talking to potential

customers and industry professional, eliciting feedback on the product, the

technology and positioning.

I wanted to share the work we have done on the technology, processes and

content fronts with you. So here goes (preceded with a shameless self

promotional plug)... For those of you who survive the plug, there is a Beta

User Instruction Sheet at the end.

33 Q u a l i t y a s s u r a n c e o n s o f t w a r e a t p r o g r a m m i n g t e a m s h a p p e n s i n f i v e k e y s t a g e s . A p r o g r a m m e r w r i t e s c o d e a n d t e s t s i t o n h i s c o m p u t e r ( a l s o k n o w n a s u n i t t e s t i n g ) . W h e n h e i s s a t i s f i e d w i t h t h e o v e r a l l q u a l i t y h e m o v e s i t t o a n e n v i r o n m e n t w h e r e t h e p r o j e c t t e a m c o d e r e s i d e s . T h i s e n v i r o n m e n t i s k n o w n a s d e v ( s h o r t f o r d e v e l o p m e n t ) . O n c e t h e q u a l i t y a s s u r a n c e t e a m i s s a t i s f i e d w i t h t h e c o d e r e s i d i n g i n d e v a n d w a n t s t o t a r g e t i t f o r r e l e a s e , t h e c o d e i s m o v e d t o a l p h a . W i t h i n a l p h a c o d e u n d e r g o e s m o r e t e s t i n g b u t i s s t i l l n o t v i s i b l e t o c u s t o m e r s . F r o m a l p h a t h e c o d e m i g r a t e s t o b e t a , a c u s t o m e r v i s i b l e t e s t i n g e n v i r o n m e n t w h e r e e x t e r n a l u s e r s a l s o b e c o m e p a r t o f t h e q u a l i t y a s s u r a n c e t e a m . F r o m b e t a t h e c o d e s g r a d u a t e s t o p r o d u c t i o n , m a r k i n g r e l e a s e o r l i v e e n v i r o n m e n t s .


Shameless self promotional plug34

Avicena is a knowledge management company, in formation for a year. We

teach Applied Finance online and our focus is on functional knowledge -

what is it that you have to know to excel at work. The target market is small

businesses and corporate customers that need scalable learning solutions for

employees, customers and stakeholders.

Please feel free to contact me if you have any problems, comments,

suggestions and feedback. Looking forward to hearing from all of you.

Jawwad Farid

A v i c e n a L L C

34 N o t i c e t h e s w i t c h – N o l o n g e r a c t u a r i e s o r p r o f e s s i o n a l b o d i e s – B 2 B l a n g u a g e t h a t w a s e x p e c t e d t o l e a d t o a h i g h e r v a l u a t i o n .


Takeaway

Mind your manners: Say thank you. Say sorry. It

doesn’t matter how many times you say it, it will

never be enough.

Disappointment: Be prepared for the launch event to

fail and disappoint you.

If you feel the need to savor your disappointments, I

recommend country music, nachos with cheese and a

bottle of non-alcoholic sparkling apple cider.

Self Pity: Do not let the wallowing period last for

more than a day.


Chapter Ten – Business Development

By t he ti me 2 00 1 b e ga n , we h ad t ak en ca re o f

ou r t e c hn o l og y h ic c u ps a n d th e p ro d u ct an d

pl at fo r m we r e bo t h ma t u ri n g ve r y n i c e ly .

Co nt en t p ro ce ss es w e re i n g oo d h an d s a nd As ha r

an d S h a rl e e n ha d a g o o d g ri p o n n e w c ou rs e

de ve lo p m en t a s w e l l as t h e e d i t o r ia l st an da r d s

th at w e ha d s et f o r o u r s e lv e s . To g e t h er w i t h

Sa rw ar an d h is te a m s i n K ar a c h i a nd B o st o n , w e

st ar te d w or ki ng on a m ak e o ve r f or th e s it e a s

we ll a s n ew m ar k e ti ng c o ll a t e r a l t h a t wo u l d

pr es en t a mu c h mo r e p ol i s he d a n d ma t u re im a g e

in f ro n t o f o u r c l i en ts .

Wh il e t hi s w a s b ei ng do ne , I de ci d e d t o r e fo cu s

my se lf co m p l e t el y o n A vi ce na b y st ep p in g a wa y

fr om A l ep h a s si g n me nt s a n d pr oj ec ts . Th e g o a l

wa s t o ge n e r a te ca sh t h r o ug h r e v en ue s or cl os e

an i n v es t m e n t r ou nd w i t h an i n st it ut io n a l

in ve st o r w it h i n t h e n ex t q u ar t e r. A l ep h h a d

st ar te d s tr u g g l i ng a n d i t w a s im p o r t an t t h a t w e

be ab l e to st a n d by o u rs e l ve s, su r v iv e , a n d , i f

po ss ib l e , s up po rt t h em i f t he y r an i n t o h ar de r

ti me s. Tw o w ee k s ’ w or th of sa le s c a l ls wo ul d

st ar t y ie l d in g r e s u l ts i n a no th er m o n t h o r so .

If t he y d i d , th e p ho n e c al l s wo ul d be t h e

wi se st a nd m o s t p r o fi ta bl e u s e o f m y t i m e.

We ll , m ar k e ti ng is al l a b o ut fo ll ow u p . T h a t

is w h a t I di d . On c e a l e a d c a m e in , I to ok i t

ov er a n d s ta y e d wi th it sh a m el es sl y u nt i l I wa s


g i ve n cl e a r i ns t r uc ti on s a bo u t w ha t t h e n ex t

st ep w ou l d b e f o r t h a t r el at io ns hi p . P r im ar y

le ad g e ne ra t i on h ap p e n ed t hr o u gh A l ep h ’ s

af fi li a t e n e t w or k , te ch no ve n t u r e e v e n ts , c ol d

ca ll s, i nv es to r di re ct or i e s, C o l um b i a al um n i ,

pr of es s o rs , c l a ss m a te s, a n d i nd u s t r y m a g a z in e s .

My fa t h er h a d sp e n t a ll o f h is pr o f es s i o n a l

li fe s el l i n g in su ra nc e, a nd o ur c h il dh oo d

se ss io n s in w h ic h I h ea rd ho w h e ta ug ht h i s

te am a b ou t p r os p e ct in g , s e ll i n g, a n d cl os i n g

st ar te d co m i n g in q ui te h an d y .

Ev en t h ou g h w e h ad go t t e n t h e co ll at e r al ri gh t

an d i t s ta r t ed p a y in g d i vi de nd s , w e s t il l

ha dn ’t so r t e d o u t th e p r i ci n g s c he du l e f o r ou r

pl at fo r m . I n t wo cu st om e r c o n v e rs a t io ns , w e

st um bl e d b a d l y o n p r ic i n g q ue st io ns b ec au se w e

we re n’ t s u r e wh at e x ac t l y o ur c o mp e t i t i on wa s

up t o o r w h o w e w e r e co mp et i n g w i t h .

On t h e c as h g en er at io n s id e , tw o e a s y h it s

wo ul d ha ve b ee n t h e i nd i v id u a l ma rk e t a nd t h e

So ci et y o f A ct ua r i e s p ro p o sa l t ha t w as l y i n g o n

ic e s o m ew h e re on my la pt o p . B ut I d id n’ t w a n t

to g i v e up o n t h e co rp or a t e s eg me nt s o so on ,

es pe ci a l ly n o w t h a t w e h ad ma d e th e

br ea kt h r ou g h i n D ub a i . Wi th h in d s i gh t, w e

sh ou ld ha ve a l s o g on e b ac k t o D el o i tt e & T ou ch e

an d a s k ed t h e m i f w e c o u ld d o s om e t hi ng f o r

th em o n th e t r a i ni ng si de t h at wo u l d h el p br in g

th em o n bo ar d a s b et a c u s t om er s a nd a r ef er ra l

on t h e ve r y fi rs t d ay . B ut t he th o u g h t c am e

fi ve y e a rs t o o la t e .



Sent: 25 February 2001 00:31

To: Jawwad List


Well its time for one of those warm and mushy emails from LA LA Land. It’s

been a long time since I sent one of those out. Got something in the email

today from my incubator that I really really really wanted to share with you.

You know it’s that engineering / Dilbert thing – look what a cool toy I

bought – so bear with me.

Things have been moving at kind of hectic pace. I have been all over the

world since late November and finally landed in LA two weeks ago. Its

2a.m. right now on the pacific coast and on a whim decided to take time out

and tell all of you that New York was never as bad as I made it sound and

that I miss you, the school and the city.

We have finally managed to wrap up all the technology issues. Considering

that I told my partners “this will not take more than three months”, the fact

that it took just over a year is very humbling. Also found some money in

the most unlikely of all places. Well technically speaking, I still haven’t

found it, just found a group of people willing to listen to our presentation,

read our business plan and make encouraging noises. But as a result the

business plan is back to being the bane of my existence. We are now all the

way upto version 35a. When I look at the projections in version 1.0 and the

projections in 35a, I am quite surprised that the SEC is not knocking on my

door.

The relationship with the incubator is still very warm and encouraging. They

haven’t started blaming me for all the evil in the world, NASDAQ’s current

problems, the dried up funding market as well as the rains in southern

California. But I guess if I keep on going at my current rate, that too will

change.


On the learning side, learned that your first most obvious and most

cherished market segment is not the one that generates the most revenues

first. We have gone from being a professional development service targeted

at finance professionals to a professional development service targeted at the

insurance industry to a company that develops courses for banking

professionals. And guess it’s the bankers who are willing to write the check.

Not the finance professionals, nor the insurance companies. Well anyhow

the good news is that we are currently working with atleast three banking

leads, the product is our most recent offering, a course for credit & loan

officers that is equally valuable to the guys in the back office and the

management committee.

No, I am still not managing oodles of people. Just a two member really

really dedicated team in Karachi, one really devoted and faithful CPA in LA,

two down to earth interns and the relationship people at the incubator.

Apparently you need serious money to pay people and besides the group

above, I have had major difficulty in finding young, driven, talented

professionals willing to work on faith and sunshine. If you find some, please

send them my way.

Now for that cool toy bit I was talking about earlier. There are two files

attached to this email. The first is a plain html file; the other is a flash

shockwave object. Save both of them in the same directory (any directory

will do). Then open the html file (Internet Explorer will be just fine). You

should see a 30 second flash presentation about Avicena. We are using this

to market our product as well investor presentation. Let me know what you

think. The contact details are still the same –Pacific Time and this email

address.

Oh and one more thing. If you are looking for really serious punishment, I

converted our two brochures to pdf files. They are 1.8 Meg zipped - each.

Send me an email if you would like to see those and our creative juices at


work– or your mailing address and I will mail you copy. If you want you can

also download the brochure from the following link

http://www.alephinc.net/thi/AvicenaBrochure.zip. That is all folks. For now.

Time to crash and burn. Take care

Jawwad

From: Dylan Steeg

To: jawwad@avicena

Sent: Saturday, March 03, 2001 11:07 PM

Subject: Re: Update from LA LA Land

Jawwad,

Hey there. Gave the attachments a try, but only got a purple screen35.

Dunno. I'm running a PII so the computer shouldn't be the issue.

All the best with the changing b-plan.

Dylan

35 W h a t w i l l g o w r o n g w i l l g o w r o n g . W e b o m b e d o n t h i s e m a i l . I h a v e a l r e a d y w r i t t e n a b i t a b o u t h o w t h e Q u a l i t y A s s u r a n c e ( Q A ) p r o c e s s w o r k s i n t e c h n o l o g y c o m p a n i e s i n e a r l i e r f o o t n o t e s . W h a t I h a v e n o t w r i t t e n a b o u t i s h o w d i f f i c u l t i t i s t o f i n d g o o d Q A r e s o u r c e s a n d g e t a g o o d q u a l i t y a s s u r a n c e t e a m u p a n d r u n n i n g . U n l i k e p r o g r a m m i n g t a l e n t , Q A t a l e n t c o m e s f r o m a d i f f e r e n t s t o c k a n d b a c k g r o u n d a n d i s i n f a r s h o r t e r s u p p l y . W h i c h l e a d s t o Q A f u n c t i o n s t h a t a r e b a r e l y a d e q u a t e w h e n f a c e d w i t h t h e n e e d s o f a r a p i d l y e v o l v i n g p r o d u c t .



To: Dylan Steeg


Date: Sun, 4 Mar 2001 01:25:52 –0800

Dylan

My apologies. I goofed up. There is some issue of a shockwave object not

downloading and I have received other complaints also. Anyhow we have

now put the link on the web and you can try it from this link

http://www.alephinc.net/avicena/demo.html

Take care

Jawwad

From: Dylan Steeg

To: jawwad@avicena

Sent: Sunday, March 04, 2001 10:55 PM


No prob. Better to beta test with friends than prospective funders ... :-)


To: Dylan Steeg


Date: Sun, 4 Mar 2001 15:04:31 -0800

You know the funny part is that we did test it internally before we sent out

the email, but apparently we failed to cater to the fact that different people

have different security settings on their machines and that the shockwave


object will fail to load. Luckily we found out pretty quickly when some one

in the first group reported not being able to run the animation.

You learn a new thing every day. I hope things are going well at Intel. Did

you catch the red herring coverage on e-learning. Take care.

Jawwad


Takeaway

More on branding: You can only educate the customer

when you understand what you are selling.

What were we selling? The essence of our pitch was

that you could learn smarter and in a more focused

pace online with the right learning acceleration

tool. You could further leverage this by focusing on

things that really mattered – the 20% that covered

80% of functional, practical knowledge required at

work. And you could do this in an area (Finance) that

traditionally was covered in mystique and

complications, baring traditional audiences outside

its door.

Yes we were web based, yes we were online, yes we

where cheaper than traditional educational

opportunities and yes you could learn at our own time

and pace. These were all replicable functional

attributes that could very easily be mimicked by our

competition. What differentiated us was how we stored

information (the Zack and Meyer paper), how we made

the process of acquiring the right material flexible

and how we generated that content.

You could make a case that even this (our

differentiating factor) could be replicated but that

required a change in our competition’s architecture

that was not supported by industry tools or even main

stream thinking. Seven years later that mindset

still hasn’t changed.


What is the difference between marketing, business

development and sales?

Awareness, deal making and the purchase or

acquisition decision by a customer


Chapter Eleven – The Silver Lining or

Biz Dev II

Cl os e t o a y ea r in to th e g a me , w e w e r e fi n a ll y

fi gu ri n g o ut w h at ne e d ed t o b e d on e t o g e t s om e

at te nt i o n. Re em a w a s c r a n k in g o ut s t r a te g i c

in ve st m e nt p r o po s a ls fu l l - t im e ; I wa s s pe n d in g

ha lf t h e d ay on co nt en t a nd si te re v i ew s , t h e

ot he r h al f o n ge ne ra ti ng le a d s a nd w or ki ng th e

ph on e f o r c li e n ts a nd i nv es t o rs .

St ar ti n g Fe b r u a r y 2 0 0 1, a l o t of ac ti on st ar te d

ha pp en i n g a t o nc e . We go t o ur fi rs t q ue ry f o r

de ve lo p i ng co u r se ma t e ri a l f o r a b a nk i n g c li e n t

fr om on e o f A l e ph ’ s a f fi l i a t e fi r m s . Th e S ak ur a

Ba nk s ub si di a r y i n L A s ta rt e d c ha tt in g us u p

ab ou t t he po s s i bi l i ty of a b et a t e s t f o r c re d i t

an d l o an o f fi c e rs u si n g o ur c on t en t a n d

in te rf a c e. Ch es c o r e, Hi g h Te k , an d H im a l ay a

ve nt ur e p a r t n e rs an sw er ed ou r p ho ne c al ls a n d

ha d a s em i- in te re s t ed co nv er sa t i on ab ou t t h e

po ss ib i l it y o f a fi t i n t he i r po r t f ol i o .

Re ut er s a n d Y a h oo ca l l ed o u t of th e b lu e a n d w e

se nt a c op y o f th e st ra te gi c in ve s tm e n t

pr op os a l to S o ft Ba n k , K ap l a n, Mc G r aw - H il l, a n d

a n u m b e r o f o t he r p ub l i sh in g p o w er h o u s e s. Yo u

co ul d s ee th e m o me nt u m sl ow l y bu il d i ng u p . In a

fi t o f o pt im is m, I ev e n tr ie d p ic k i ng up th e

le ad s f ro m t he SO A l au n c h fr om Ch ic a g o b ut t o o

mu ch t i m e h a d p as s e d si nc e l a st O c t o be r .


C h es co r e a nd P ea r s on w e r e ou r tw o b i gg e s t

re fe rr e d l ea d s . In e ss e n ce , Mo e z M uz a a fa r i 36 a t

Ch es co r e ag r e ed t o ta k e th e co n v er s a t io n

fu rt he r as lo ng as w e c ou ld d o a re gi on a l p la n

mo re f oc us ed o n t h e M id d l e Ea s t er n m a rk e t . W e

ha d s p e nt t h e la s t ei gh t we ek s g et t i ng th a t

do ne . H e a sk ed u s t o s ta rt t h e d ue d i li g e nc e

pr oc es s w it h an a s s o ci a t e a t Ch e sc o r e. W e w e r e

ho pi ng th at h e w ou ld ha ve s o me go o d ne w s b ef or e

Ma rc h wa s o v e r si n c e i t wa s n o w h is ca ll . Th e

Pe ar so n co n t a c t , o n t he o th er h an d, h ad li k e d

th e i ni ti al o ut l i ne a n d t h e fi t w e h a d

su gg es t e d a n d h ad a gr e e d to f or w ar d t h e

pr op os a l t o t h e ir p re si de nt .

An ot he r t w o o r t hr ee mo n t h s a nd we ho pe d t o se e

so me pa yo ff fo r a ll t h e m i d n i g ht h o ur s e ve ry on e

ha d pu t in . I t wa s ab ou t ti m e .

36 P l e a s e s e e t h e a p p e n d i x o n c a s t o f c h a r a c t e r s


From: Jawwad Farid

To: Jason Kubica; SM ; Denise Davies

Cc: Carlos

Sent: Thursday, February 22, 2001 4:17 PM

Subject: E-Education venture

Jason

Carlos Desmaras, Class of '00 mentioned his conversation with you about

Reuter's interest in e-education. I work for Avicena LLC, an online education

venture in Orange County. Our focus is only on the financial services

segment and I am sure there are areas of mutual interest that we can talk

about. I would like to schedule a telephone conversation and if you can let

me know when would be a good time for you next week. I am on Pacific

Time but still keep New York hours. Look forward to our conversation.

Warm Regards

Jawwad Farid

Avicena LLC


To: Jawwad Farid; Jason Kubica; SM; Denise Davies

Cc: Carlos

Sent: Wednesday, March 07, 2001 12:23 PM

Subject: Re: E-Education venture

Jason It was a pleasure talking to you this morning. I sincerely hope that

over the next few months, we will get a chance to work together. As

promised I have enclosed the Avicena materials with this message. I think the

best place to start is our very short flash presentation that gives a quick

overview of who we are and what we do. Please click on the following link

to see the online presentation.



I have also attached a short executive summary followed by the Beta user

instruction sheet that will provide you with the passwords needed to access

the website. At the end of this email are two additional links to our most

recent product brochure (pdf file) and the recent coverage in Red Herring on

e-learning. Additional materials, including a detailed business plan, are also

available on request.

We work with corporate customers to address specific knowledge,

application and skills gap. Avicena develops standard and custom courses

targeted at specific learning needs identified by its customers. The

environment also generates feedback on individual learning and areas

requiring further training support. The courses are instructor-less and web-

based (online, Internet) allowing for scalability, 24 x 7 access and

instantaneous, standardized, global rollouts of new training curriculum.

Content drives this business and for us the important piece was getting the

production processes right. We now believe that we have a very good grip

on those. Beyond that, certain key product features determine how

successful & popular an e-learning solution is with customers. Flexibility, fit,

emphasis on learning, availability on demand and depth and impact of

content are some of the issues that we identified earlier on and have

emphasized in product design, technology and production.

What I would really like to do is setup a time for a 30 minute demo after

your trip to Europe. We can also use it as a detailed Q/A session on the best

way to move forward on this. Let me know when would be the most

convenient time to arrange this. Meanwhile if you have any questions or

comments that I can answer, please feel free to contact me. I will look

forward to our conversation.

Jawwad Farid

Avicena LLC



Sent: Monday, March 05, 2001 4:10 AM

To: PearsonContact; SM; Reema

Cc: Denise Davies

Subject: Hel lo there. . .

Hello there.

Remember me. I do disappearing acts - getting very good at them. Life has

been quite crazy since the last time we spoke but I am happy, busy, putting

on weight, having the time of my life, getting my innocent cousins (Reema

just joined us last week) and friends and family involved in my .com

misadventures.

I have a few things that I wanted to show you. The first is a flash

presentation that we have been showing to investors and customers.


Second is the executive summary, which is also attached.

Third is a 1.4 Meg zip file with the latest Avicena brochure targeted at

banking customers - http://www.alephinc.net/thi/AvicenaBrochure.zip

We are trying to start a conversation with Sylvan ventures to explore the

possibility of them coming on board as a strategic investor. Then I thought of

you and Pearson and wanted to pass this by you.

Pearson actually has quite a few ventures in place / on the ground with some

of the b-schools (Michigan and Wharton). There is also FT knowledge.com

that leverages FT's content and its relationships. However there is nothing

visible as yet and certainly no venture focusing on the Financial services

segment or Finance in the e-learning.

Couple of questions:


1. Is this worth exploring?

2. Would Pearson be interested - especially now that they own all major

respectable publishers?

3. Who would be the best people to talk to and what would be the best way

of getting an introduction?

That is all for now at least on the business front. Work is cool. Difficult for

me to imagine if I would ever be fit for a regular job after this gets over. I

am seriously thinking of retiring and just staying home, raising kids, cooking

and watching x-file reruns. Take care

Jawwad


To: Dylan Steeg; nyer inca



I had been on the road since late November - Canada, Tokyo, home (as in

Pakistan), Middle East, and finally got here mid Feb. On the money front

we have now moved our focus to some of the larger groups - Sylvan,

Pearson Education, New Horizon, etc – organizations that have been big

before and are now looking to throw chump change (for them, but not for

us) at fresh new ideas (like ours). Take care

Jawwad


To: Ralph; Jawwad List ; TMP Group;

Sent: Wednesday, March 07, 2001 6:13 AM

Subject: Stop Press! Update from LA LA Land

18 long months and today we receive our first phone call from a very serious

customer...


Not that its money in the bank (btw it is a bank), but we are meeting them

on Monday and after a 4 week beta, there is a good chance that they will

come on board permanently with 50 licenses and two of our courses.

Pricing is still a question mark but we will work that out Inshah Allah37.

After I stopped screaming and jumping (yup guys do that too), the first

group I thought of were you guys and gals. Just thought you would like to

know. Take care

Jawwad Farid

Avicena LLC

Afterthoughts

Quite a few people had a problem with the flash animation that went out.

We have now put it on the web http://www.alephinc.net/avicena/demo.html

and the brochure that made the sale (this is a 1.4 meg zip file)

http://www.alephinc.net/thi/AvicenaBrochure.zip

From: PearsonContact

To: Jawwad@avicena; SM; Reema


Subject: RE: Hel lo there. . .

Jawwad,

37 W h e n m e e t i n g w i t h f i r s t - t i m e c o n t a c t s , c u s t o m e r s , a n d p a r t n e r s , S a r w a r a l w a y s i n t r o d u c e d t h i s p h r a s e b y “ I f w e d o e s t a b l i s h a w o r k i n g r e l a t i o n s h i p y o u w i l l h e a r u s i n v o k i n g t w o w o r d s o n a r e g u l a r b a s i s . T h e f i r s t i s I n s h a h A l l a h ( G o d W i l l i n g ) a n d t h e s e c o n d i s M a s h a l l a h ( b y t h e G r a c e o f G o d ) . ”


Thank you for your note and the information. I have not looked at the

attachments and probably will not get to them before the end of the week.

However, here are some initial comments about Pearson in general:

- Pearson purchased NCS for its strength and richness of applications in the

education market. The type of stuff you are talking about fits best with NCS

Pearson. So, I think you would want to get in touch with someone at NCS

Pearson, rather than Pearson plc.

- If you are looking for interest in your product, then yes it is worth

pursuing. If you are looking for investment, I think it will be a long stretch.

However, it does not hurt to try.

- Take a look at vue.com (part of NCS Pearson). They do a considerable

amount of electronic testing business.

I will take a look at the information and get back to you with a more

complete response.

All the best


To: PearsonContact; Reema

Cc: SM; Denise Davies; Jawwad@avicena

Sent: Fr iday, March 16, 2001 2:13 AM

Subject: Re: Hel lo there. . .

Hello...

Just following up on the note from last week. Did you get a chance to look

through the material?

We have done a reasonable amount of research on what companies like

Sylvan, Tribune, Pearson, News Corp and Knowledge Universe (KU) are


doing in the e-learning space in general and the corporate training segment

in particular.

With the exception of KU, there is no focused or directed attempt to service

the learning needs of the financial services sector. It is not that there is

nobody present in that space. There are a number of players in the offline

training business, a few in the assessment and custom and exec. education

programs but only a handful in e-financial training for financial services.

What little exists in the online space is focused on technology related

training programs. Given that

a. Banks, commercial lenders and insurance companies have the highest

budgets per employee for on-the-job training,

b. There is tremendous pressure on this segment to improve its bottom line

and use technology as a driving force to cut costs and improve employee

productivity,

c. The increasing awareness about e-learning, its applicability and relevance

to these businesses

We very strongly believe that an opportunity exists for the right players with

the right products. Reema is working on a memo that puts that opportunity

in perspective. Its also elaborates on our desire to work with a strategic

partner (or investor) who sees the opportunity and is interested in exploring

it.

NCS Pearson is extremely active on the assessment side, but todate there are

no ventures that fit our profile. K-12, Assessment, Training, Technology - Yes;

Finance, Financial Services, Corporate training - No. Pearson itself has

executive education business by the name of FTknowledge that is leveraged

off FT's brand. The problem there also is reliance on an offline model to

compete in an online world.


Please let me know what would be next appropriate step for us. Will look

forward to your feedback. Take care

From: PearsonContact

To: Jawwad@avicena


Subject: RE: Hel lo there. . .

Jawwad,

I got some initial (positive) feedback from one of our controllers. He and I

both feel that Pearson Education (of which NCS Pearson is a part) would be

interested in something like this. We see it as an educational tool for

professionals who do not have a financial background, but need to have an

understanding of accounting/finance basics (the scope of your curriculum

maybe much broader, this is just based on the courses that we have seen).

Pearson Ed. is a huge organization, and I have only met the CEO and the

CTO, but that is about as much as I know of the organization.

I will try and get some information on who you should contact. In the

meantime I would encourage you to look at the Pearson Education Website

and get a better feel for who they are and what they do. Also, put together

a memo about Avicena and its offerings, and why you think Pearson

Education should be talking to you (Avicena). Send it to me when you think

it is ready for a review. I can then get you the address of the CEO and you

can send it directly to him. He will then forward it to the rightfolks in his

organization. Good Luck


To: SM; Reema; Ashar

Sent: Monday, March 19, 2001 9:00 PM

Subject: Fw: Hel lo there. . .

I think this is as big as it gets. The one that we have all been waiting for.

Outstanding job everyone. Take care


PEARSON EDUCATION & AVI CENA LLC

STRATEGI C INVESTMENT PROPOSAL 38

Jawwad Farid, [email protected] Reema Rahman, [email protected]

Avicena LLC, 2740, South Harbor Boulevard, Suite ‘J’, Santa Ana, CA 92704

Phone: 714-540-5933 Fax: 209-821-9174

March 25, 2001

All pages of this document contain information proprietary to Avicena LLC. All data furnished concerning this document shall not be duplicated, transmitted, used, or otherwise disclosed to anyone without the express written permission from Avicena LLC. This restriction is applicable to all sheets of this proposal.

38 I n c l u d e d t h e p r o p o s a l h e r e t o p r o v i d e c o n t e x t f o r t h e d i s c u s s i o n t h a t h a p p e n s b e t w e e n D y l a n a n d m e a s w e l l a s t h e e m a i l e x c h a n g e b e t w e e n u s a n d P e a r s o n c o n t a c t .


Preface

We are a 15 month old, seven-person startup. In the past eight months, with just over a million dollars in capital and sweat equity, we:

a. Defined a new corporate learning platform from our exposure and understanding of adult learning. The platform integrates processes, usage, application & content in one seamless environment

b. Marketed and beta tested the need, the product and the fit between the two c. Developed, tested, positioned and launched the new corporate learning platform d. Defined & implemented digital course generation processes e. Tested the processes and created four full length (10 - 16 hours each) live courses

(Corporate Finance, Ratio Analysis, Leverage, Breakeven & Credit Analysis)

How we accomplished this is the reason why we should talk. Market Snapshot • The U.S. corporate training and development market’s estimated size is $62.5 billion.

(Source: Training Magazine, October 1999) • Corporate training -- E-learning’s fastest growing segment generated $200 million in

1997 and is estimated to reach $23 billion by 2005. (Source: International Data Corp and Red Herring, February 2001)

• Finance, banking and insurance sectors are the leading users of technology-based training with 16% to 17% of total training delivered by computers for each respective market. (Source: Training Magazine, October 1999)

• Financial services industry employs 7 million people with an estimated 1.5 million in the management cadre (Source: Bureau of Labor Statistics, Department of Labor)

Avicena LLC (‘Avicena’)

Avicena is a knowledge accelerator that provides online (web based) learning solutions to the financial services industry (‘FSI’). Our product is a set of tools, processes and methodologies that allows corporate customers to address specific knowledge, application and skill gaps under the domain of Finance (risk, pricing, underwriting, financial performance measurement & reporting).

Strategic fit

For Pearson Education (‘Pearson’), we bring:

1. A fresh and non-traditional perspective on content generation, applications and learning processes

2. A developed corporate learning platform with scalable offshore content & technology development facilities, related protocol and expertise

3. Growth and development of a maturing, explosive market which ties in with Pearson’s focus on content, application and connections

4. Synergies, technologies & processes that strengthen Pearson’s existing e-learning initiatives in FT Knowledge, NYIF, Learning Network & CCC.

5. Opportunities for cross-selling financial content from FT and related publishing units

6. A core and growing group of people driven by “everything-is-possible”, startup, mindset


Pearson is an enviable partner for any firm in the education business. For Avicena, the non-cash value added of a strategic investment from Pearson translates into:

1. Instant credibility with corporate customers as a partner (or part) of the largest education company in the world

2. Access to a well established, powerful, global distribution network 3. Incorporation of existing assessment, diagnostics, testing and reporting expertise 4. Benefit from current editorial, presentation and communication processes

Market need

Training is no longer an option. It is an essential ingredient in improving employee productivity as businesses struggle to improve their cost structure in a rapidly changing competitive environment. The economics of web-based training are compelling, leading to a decisive shift to technology as the preferred medium of training content and delivery.

The financial services sector is a highly process-oriented sector with the steepest learning curve for people working in back-office functions as well as those selling financial products at the front. This sector has the highest budgets per employee for on-the-job training. Given the current macro economic scenario, banks, insurance companies and related financial institutions are under tremendous pressure to improve their bottom-line and deploy scalable technology solutions to cut costs and improve employee productivity. The problem is that very few players in the e-learning space offer products that:

• Use focused, comprehensive, practical & relevant content • Create an optimal adult learning environment • Allow on-the-run (real time) customization, instantaneous fulfillment & close fit with

organizational and individual learning objectives • Solve the cost of content generation/acquisition problems • Simplify pricing models and reduce cost of ownership • Provide 24 x 7 x 365, anytime, anywhere, available on demand access Avicena -- the Company

Avicena’s edge is its learning environment and infrastructure. The emphasis is high quality, relevant & practical content in an environment that supports adult learning processes, customization technology, standardized rollouts, user & information interfaces, retention, and real time assessment. Avicena competes on processes: • Our process generates higher quality content quicker & faster in a scalable fashion. An

important element of this advantage is our reliance on offshore resources for content generation and outsourced technology support.

• Courses are customizable by specific needs of students. Modules can be added, dropped and completely new courses tailor-made on the fly. Customers can select and build what they need using Avicena’s knowledge base of financial concepts & its fulfillment engine.

• Course structure emphasizes learning, application, and retention. Interaction is adopted at each stage, (diagnostic assessment, retention exercises, case studies & feed back) for continuous evaluation and improvement of users and products.

• The content generation engine deploys teams of professionals (finance, education, technology) who together develop high quality content that transforms complex financial topics into simple practical concepts, emphasizing process, skill & applicability.


• Focus and pricing issues are resolved by concentrating energies on the financial services segment and finance professionals.

Customers Our target market is the corporate training segment for financial education. This includes retail, commercial, and investment banks, insurance and reinsurance companies, small and medium sized businesses and learning institutions. At present, our beta customers include Hudson River Inlays from New York and a number of individuals working within the financial services industry. Discussions with two re-insurance companies -- Swiss Re and ERC Frankona, a mid-size California bank and two consulting organizations working with mid size banks are underway. In later business development stages, Avicena plans to scale up and offer its financial content, delivery technology & knowledge generation processes to academic institutions, distance learning firms and finance portals. Revenue sources Content, technology and processes are priced on per course, per user, per year basis with multi-year contracts. Level of pricing is set depending on depth of course and number of users per customer.

Investment Funds sought: 5 million dollars Valuation sought: 54 million dollars Round: Series A Timeline: May 2001 Next Round: 9 million dollars (Series B) Timeline: February 2002

Application Of the first round, $2.3 million will be applied to startup and capital expenses. Expenses include computer hardware and software licenses, office space and office furnishing, and build up of Avicena’s knowledge base, content consultant relationships, offshore resources and facilities. The remaining $2.7 million will be used for recurring expenses that cover salaries, sales, marketing, recruiting, general and administrative expenses over the next twelve months. First stage financing will carry the firm from March 2001 to February 2002. We expect the firm to become cash flow positive thirty months after launch in the third quarter of 2003.



To: Dylan Steeg

Cc: Reema; SM; Denise Davies

Sent: Thursday, March 29, 2001 12:59 PM

Subject: Re: Strategic Investment Proposal

Dylan

Thank you very much for the comments. All of us really appreciate the time

you took out to review the proposal and in helping us out in refining the

outline. Your support means a lot to me and I hope I would be able to

return the favor some day (Inshah allah).

My comments are attached just after yours39:

39 D y l a n ’ s e m a i l ( t h a t f o l l o w s t h i s f o o t n o t e ) a n d m y r e s p o n s e t o h i s q u e s t i o n s s h o w t h a t w h i l e i n s o m e a r e a s w e h a d t h o u g h t t h i n g s t h r o u g h , i n o t h e r s w e w e r e n a ï v e a n d u n p r e p a r e d . T h e c o m m e n t s o n t h e s t r u c t u r e o f f i n a n c i n g , a b o u t g r o w t h p r o j e c t i o n s a n d n e t w o r t h s h o w a n M B A - i s h r e a l i t y d y s f u n c t i o n t h a t w o u l d h a v e k i l l e d m o s t f u n d i n g c o n v e r s a t i o n s i n m i d s e n t e n c e . W e w e r e j u s t a s c l u e l e s s o n p r i c i n g b e c a u s e w e h a d b e e n s o b u s y w i t h b u i l d i n g t e c h n o l o g y a n d c o n t e n t t h a t w e h a d n ’ t a c t u a l l y g o t t e n a r o u n d t o a s k i n g c u s t o m e r s i f t h e y w o u l d p a y a n y t h i n g f o r w h a t w e h a d . T h e p a r t s t h a t w e d i d g e t r i g h t w e r e q u e s t i o n s t h a t h a d b e e n a s k e d b e f o r e i n c o n v e r s a t i o n s w i t h c o u n t e r p a r t i e s w h o w e r e e v a l u a t i n g u s s e r i o u s l y . O n g o o d d a y s w e w o u l d g e t t h e a n s w e r s w r o n g t h e f i r s t t i m e , k i c k o u r s e l v e s , a n d t r y a n d g e t o u r a c t t o g e t h e r b e f o r e t h e n e x t p o t e n t i a l i n v e s t o r s h o w e d u p . O n b a d d a y s w e d i d a p p a l l i n g i m p r e s s i o n s o f c l u e l e s s k i d s i n a s a n d b o x a n d b l e w c o n v e r s a t i o n s b e f o r e t h e y e v e n s t a r t e d . T h e o n l y w a y t o b e a t t h e o d d s w a s t o h a v e a s m a n y c u s t o m e r - f a c i n g e x c h a n g e s a s p o s s i b l e i n t h e h o p e t h a t w h e n t h e g u y w i t h t h e c h e c k b o o k f i n a l l y s h o w e d u p , y o u h a d a l l t h e r i g h t a n s w e r s p r a c t i c e d a n d r e a d y .


From: Dylan Steeg


Sent: Wednesday, March 28, 2001 10:44 PM

Subject: Re: Strategic Investment Proposal

Jawwad,

I really like the proposal. It gives a good overview of the history, the

market, why you want to speak with Pearson, and the financial structure of

the deal.

My humble inputs:

1) Page 2, I'd change "why we should talk" to "why we believe we should

discuss strategic opportunities". The former statement brought images of

someone bubble gum chewing with mouth open to me. Dunno.

[JAF Comments] Reema was actually quite upset with me on sending the

proposal out with "we should talk". We couldn't get closure on the sentence

and we ended sending it out just as it is at 3a.m. in the morning. But your

suggestion is exactly the wording we were looking for

2) Page 2, under strategic fit, # 4 and 5. Are FT, NYIF, and CCC standard

terms or do they need to be defined? I don't know them. Dunno if Pearson

will.

[JAF Comments] In Pearson's case the acronyms stand for Financial Times,

New York Institute of Finance and Curriculum Communication Corp (FT,

NYIF and CCC are standard references used on Pearson's site and in their

annual report for these three ventures)

3) #6, I'd add a sentence listing the tangible skills of the core and growing

group: finance, stats, insurance, IT, programming, tech development

management to list a few.


[JAF Comments] Will work on this.

4) Page 3, I really like the statement "This sector has the highest budget per

employee for on-the-job training". I might think about underlining and or

italicizing. It made me think that you had your market segmentation DOWN

solid!

[JAF Comments] Thank you.

5) Page 4: financial structure: are you issuing Series A preferred, common,

warrants, and if the latter, warrants on preferred or common? How many

shares to issue total? Start thinking about putting the cap table together.

They'll want to see who else has their money in the ring. Also make sure

that the asset purchase agreement and investor rights agreement is developed

by YOUR attorney. Do not take the boiler plate of the investor. First to

bring documents sets the Iyengar anchor. This is big.

[JAF Comments] Series A common. Between 8 - 15% of the business. Prefer

not to do debt, convertible structures or options. Do you have any

comments on how to handle this issue. On the legal side, planning to work

with Paul Hastings rep firm in Orange County on the law side. Had an initial

meeting with them just before I left and they are interested. We still have to

approve the engagement structure they suggested

6) The financial forecasts incorporate huge growth: ~ 500% in 2001 and

2002, 150% thereafter. Just make sure you can justify. E.g., that's the same

growth as the market as a whole, or we will grow faster than the market

because of reasons X, Y, and Z.

[JAF Comments] Couple of reasons. Big growth spurt within the market itself

not just within Avicena. The growth is a little skewed because of the initial

jumps but by the time we hit 2006 - 2005 we would probably be looking at


10 - 15% for the next 7 - 10 years and then stabilize around 600 - 750

Million in annual revenues and maybe 3% - 6% per year

7) How do you define net worth? Retained earnings or contributed capital?

I'm assuming the latter since you have negative earnings right now

[JAF Comments] Asset - Liabilities. Assets are directly linked to the value of

systems, processes and content. Facilities, infrastructure obviously

contributes, but as we grow older bulk of the asset side is intellectual

property. It is primarily a lot of CAPEX going in as equity (contributed

capital for the first three years), added on by the big difference of content

generation costs and the value of the content generated (Fixed asset

additions - depreciation - capex).

Nice job brother. Keep me posted


To: PearsonContact

Cc: SM; Reema; Denise Davies

Sent: Monday, March 26, 2001 4:48 PM

Subject: Avicena LLC

Dear PearsonContact

I have attached a four page investment proposal with this email. The

proposal covers current status, strategic fit with Pearson Edu, markets,

products, investment needs, applications, financial summary and people

overview. A full business plan (50 pages), additional information, review of

existing solution and future course and technology development plans are

available on request.


If it’s possible, I would like to schedule a short phone conversation on what

would be the best way to move with this. Please let me know when would

be a good time to plan for that.

We did a fair amount of research on Pearson Edu and were very fortunate to

get hold of the webcast coverage of Peter Jovanovich & Marjorie Scardino's

presentations (Dave Smith and a number of other senior executives also

spoke at the same session) at the Analyst conference in January 2001. Given

Pearson's existing ventures, the content of the last two annual reports and

the presentations at the Analyst conference, we are very comfortable with

the strategic & marketing fit between Avicena and Pearson Edu. One of the

key themes in Marjorie's comments was her emphasis on combining content

with applications & customers and how Pearson has accepted that "content is

not the only thing". We believe Avicena represents one such opportunity

where applications, processes & content come together to create tremendous

value for all stakeholders.

On a side note, we are in the process of building foundational material on

the courses front. Once the foundations are complete, our next objective is

to build application courses and follow that by advance professional courses.

We are starting with courses with a mass market appeal (bottoms up

approach) but the material will start getting technical after the first 20 - 30

courses are on the site.

If you have any additional questions or comments, please feel free to call or

email me. I will look forward to your feedback.

Warm Regards

Jawwad Farid

Avicena LLC



To: SM; AlephList ; AvicenaLi st; BoardOfDirectors; Friends;

Sent: Fr iday, March 30, 2001 10:23 AM

Subject: Funding Update

Ladies & Gents

We started the week with the Pearson Proposal plc. Thank's to Reema's

unbelievable speed in doing research, coming up with pitch and putting a

package together, strategic investment proposals have now been submitted

to

1. Reuters Greenhouse ventures

2. McGraw Hill Ventures

3. Kaplan Ventures (subsidiary of Washington Post)

4. Reed Elsevier

5. Oracle

Tomorrow is follow up day. The conference call with Chescor went

reasonably well. For all practical purposes they now have all the

information they need and the decision now lies with Moez. Keep your

fingers crossed. Take care

Jawwad


From: Danescu Adrian


Cc: Kenny Charles

Sent: Fr iday, Apri l 06, 2001 5:10 PM

Subject: Avicena Beta test ing at MB

Jawwad,

First of all, I must apologize for the delay in responding to your note but

due to staffing changes at MB as well as the conversion efforts we are going

thru as I am writing this note, we were not ready to confirm our

commitment to your recommendation on using Avicena for internal

training.

As per Charlie's request, I am pleased to let you know that we are

committed to use your product for internal training to start with in the

credit area and, as we move forward, we would like to explore other

opportunities.

Since I wasn't directly involved in any of your prior conversations, I would

appreciate you letting me know the terms of the proposed use of your

product at Manufacturers Bank. Upon reviewing the terms of the Agreement

with the specific organizations and the Legal group, I would like to start the

program ASAP.

Please be aware that probably I will not in a position to work with you and

the Credit Division next week but I can at least make arrangements of

reviewing the Agreement and setting up the meetings with the right senior

managers in our organization.

The sooner you can put together the Agreement, the faster I can help you

and your staff get things moving. As part of the Agreement, I would like to

information such as the duration of the Beta training program at no costs to


MB, what would be your expectations from us, if any, how do you intend to

set up the training program. You might also start creating the procedures to

be used by our staff as they will be needed when they will commence the

training. 40

I am looking forward to hearing from you.

Sincerely,

Adrian Danescu

Manufacturers Bank SVP/CIO

40 W i t h f i v e y e a r s b e h i n d m e , A d r i a n ’ s e m a i l s t i l l b r e a k s m y h e a r t . I t c a m e a f e w d a y s b e f o r e I s h u t t h e d o o r o n A v i c e n a a n d n o t h i n g S a r w a r , D e n i s e , o r R e e m a c o u l d d o o r s a y w o u l d m a k e m e o p e n i t a g a i n . W e h a d b e e n w o r k i n g w i t h A d r i a n a t t h e S a k u r a B a n k s u b s i d i a r y i n L o s A n g e l e s f o r c l o s e t o a y e a r a n d h e h a d t r e m e n d o u s r e s p e c t f o r w h a t w e h a d a c h i e v e d o n t h e t e c h n o l o g y f r o n t . T h e M B b e t a c o n t r a c t a y e a r e a r l i e r w o u l d h a v e j a c k e d u p o u r v a l u a t i o n , g i v e n u s f e e d b a c k o n f r i e n d l y t e r m s , a n d s e a l e d t h e o n e f u n d i n g o f f e r w e n e e d e d . A y e a r l a t e r , i t r e p r e s e n t e d a c o m m i t m e n t t o s p e n d m o n e y w e d i d n ’ t h a v e , s u p p o r t i n g a c u s t o m e r t h a t w o u l d n o t g e n e r a t e r e v e n u e s i n t h e n e x t q u a r t e r , u s i n g a t e a m t h a t n o l o n g e r b e l i e v e d t h a t t h e y h a d a f u t u r e . C u s t o m e r s t a k e t i m e t o m a k e u p t h e i r m i n d a n d r e t u r n p h o n e c a l l s . Y o u c a n n o t t i e t h e m t o y o u r s c h e d u l e . G i v e n a m o r e m a t u r e p i t c h , a f e w m o r e r e f e r e n c e s i t e s , a n d a b u c k e t f u l o f t i m e , w e w o u l d h a v e s i g n e d a r e v e n u e d e a l . I f n o t R e u t e r s , t h e n Y a h o o ; i f n o t Y a h o o , t h e n P e a r s o n ; i f n o t P e a r s o n , t h e n U n i v e r s i t y o f P h o e n i x . B u t w e h a d s h o r t c h a n g e d o u r s e l v e s b y s t a r t i n g t h i s p r o c e s s w h e n w e w e r e a l r e a d y b r o k e a n d h u r t i n g . W e a l s o s e t o u r s e l v e s u p b y e x p e c t i n g t i m e l y , p o s i t i v e , l i f e -s a v i n g r e s p o n s e s w i t h s o m e o f o u r m o r e q u a l i f i e d l e a d s . Y e s e v e n t h o u g h b u s i n e s s d e v e l o p m e n t ( b i z d e v ) l i v e s o f f o p t i m i s m , t h e s u c c e s s f u l b i z d e v p r o f e s s i o n a l l i v e s o f f z e r o e x p e c t a t i o n s . W h a t y o u d o n ’ t e x p e c t w i l l n o t d i s a p p o i n t y o u , w h a t d o e s n ’ t d i s a p p o i n t y o u w i l l n o t k i l l y o u . U n f o r t u n a t e l y f o r u s i t w a s d e a t h b y a t h o u s a n d n o ’ s .


Takeaway

Easier close: It is easier to get a partner to sign

up as a customer for a small contract then to start

off the conversation with a strategic investment

proposal. Given a choice between the two, go for the

easier and simpler close.

Omit needless words41. If it is worth buying, worth

selling or worth investing in, pitch it in less than

one page. If it takes longer you don’t know what you

are doing.

Stop selling: Just like the decision to invest, the

decision to purchase can also happen within a few

seconds. When you know the sale has happened, shut

up, stop selling and let the momentum carry you to

the close.

Learn to say no: When you know you can’t service a

customer, wrap up and go home empty handed rather

than take on work you will not be able to deliver on.

Sales Cycle revisited: Remember and respect the sales

cycle. You must provide for enough time and capital

for the cycle to run a few iterations. If in a new

venture you have neither (time nor capital) save

yourself the heartache, close shop and go home.

41 E l e m e n t s o f S t y l e , W i l l i a m S t r u n k J r a n d E . B . W h i t e , L o n g m a n , J a n u a r y 2 0 0 0


On preparation: Whether you are having a sales

conversation or an investor pitch you must walk

through your presentation, expected questions and

your answers to the same till you sound coherent and

professional.

Part of this practice happens within your own room,

but for it to be effective it needs to happen across

partners, customers and investors conference tables.

The more you talk with professionals, who may not

have an incentive to listen to you, the better your

act will become.

One reason why small wins are better is because they

allow you to refine your act. Even if you blow a

sales conversation what you leave on the table is of

small consequence. With a small customer, sometimes,

that too can be recovered because small customers are

more forgiving than others.


Chapter Twelve – The End

Su rp ri s i ng l y en ou gh , w he n t he e nd c a me , i t

wa sn ’t th a t ba d . It w a sn ’ t pl ea sa n t an d i t

wa sn ’t ea sy b ut it w as n’ t t h e n ig h t ma r e I

ex pe ct e d i t to b e. O ne b y o n e , a l l o f t h e

re as on s f or Av ic en a’ s c on t i nu e d ex is te nc e

ce as ed to e xi st ; l ea v i ng m e b ar e i n f ro n t o f

re as on s wh y w e sh ou ld n ’ t: C o m pe t i ti on w i t h

fo rt y m il l i o n d ol l a rs an d a f e w ye a r s u n d e r

th ei r be lt , ov er dr a w n b a n k ba la nc es a nd c re di t

ca rd s, Al e p h o n i t s o w n de at h b ed , a fu n d i n g

st ra te g y th a t h ad in co nv en ie n t ly e x pi r e d

wi th ou t na m i ng a s u i ta b l e re p l ac e me n t ,

po te nt i a l p ar tn er s wh o c o u ld n ’ t si t do w n a n d

ch at r i gh t n ow bu t w ou ld ca ll at so m e un na m e d

da te i n th e f ut u r e , a nd t he r ea li za ti o n t h a t

ev en in Ca li fo rn i a yo u c o ul d o nl y i gn or e

re al it y fo r s o lo n g .

Bu t l if e as w e kn e w i t w en t o n . T o s om e e x te nt ,

th e f a c t t ha t F a w z i a w as st i l l w or ki ng a n d

oc ca si o n al l y g et t i ng p ai d h e lp e d . T h e n ou r

pa re nt s , s i b l i ng s , an d o t h er re la t i v es ch i p p e d

in a ga i n t o t i d e u s o ve r ou r ro u g h p at c h .

I sl ow ed d ow n, s ta rt ed i nt e r v ie wi ng , pi ck ed u p

an in te re st in co ok in g a n d s wi m m in g , an d

st ar te d w al k i n g to Am i n’ s d a y ca r e on Su nf lo we r

to p i c k h i m up e v e r y e v e ni ng . Fo r t h e fi rs t

ti me si nc e w e m ov e d t o Ca l i f o r ni a, ev er y S un da y

Fa wz ia a nd I t o o k A m i n to t he p la y ar ea o n


L a gu na Be ac h , a s h o rt dr i ve aw ay . W h e n w e f el t

ri ch , we wo ul d or de r fo o d fr o m D ar ya o r

Ja mi la ’ s K i t c h e n a n d gr ab a m o v ie a t th e

Ci ne pl e x o f f S ou t h C oa s t Pl a z a . W e ev en t oo k

ti me o f f a nd dr ov e t o S an Fr an ci sc o v ia Ro u t e

On e.

As l on g a s yo u d i d n ’t lo ok b ac k to o o ft e n i t

di dn ’t hu r t . I h a d c l e a n ed u p m y r o om an d

co ns ig n e d al l Av ic e n a- r e la te d m a te ri al t o th e

da rk es t c or ne r o f m y cl os et . Wi t h s o m e ef fo rt ,

I b e c a m e m uc h m o r e fo c u s ed o n g et t i ng a j ob ,

th e ec on om y, a nd i n t er vi e w s. F r o m o ne d ay t o

th e ne xt , I l iv ed b e t w e e n p r o s pe c t in g l e a d s ,

in te rv i e w pr e p , an d co nf e r en c e c al l s . B e tw e e n

th e ne tw or k at s c h o o l, t h e e f f o rt d e v ot e d t o

th e j o b hu nt , a nd th e c r e d en ti a l s I h a d p ic ke d

up , i t t oo k t hr e e mo nt hs be f or e t he of fe r f ro m

Sh an e c a me a l o n g.

It w a s s t il l to o s o on f o r me t o ge t d ow n a n d

fi gu re ou t h o w m uc h w e ha d l os t o r if th er e wa s

an yt hi n g th a t co ul d be s a lv a g ed . A le p h ha d

ta ke n o ve r t he v e n t ur e i n th e h op e t ha t t h e y

co ul d d o c ar r y o n, bu t w it h h in d s ig h t, it wo ul d

ha ve b e e n b e t t e r i f w e ha d j us t p i c k ed u p a fe w

st or ag e b ox es an d f ir e- sa l e d e ve r y th i n g w e h ad .

Gi ve n a c ho i c e o v e r l in g e ri n g go od -b y e s o r

su dd en d ea t h , p ic k th e la tt e r a n y t i m e.



To: Joe Rooney

Sent: Saturday, Apri l 07, 2001 3:31 AM

Subject: Re: Update from NYC

Hey Joe....

It was great seeing your name on the alumni list with the new 42nd street

project and really happy to hear from you about how it’s turning out.

Thing have gone quite well but there is still no money in the bank. Both I

and the bank are getting quite used to the fact. I think we have accomplished

a lot in such a short time with such limited resources but have not been very

successful in getting investors on board.

My cutoff date to start looking at other options was day before yesterday42

and I am now on the market again. Talking to a few firms here and there and

there may be a chance that my warm California days maybe coming to an

end.

How is the rest of the gang? Are you in touch with Liz and our friend Ken

(Craddock) at school? Say hi to both the next time you see them. Take care

Old Friend Jawwad

42 A t w h a t p o i n t d i d I d e c i d e t o w a l k a w a y f r o m A v i c e n a ? T h e r e i s n o e a s y o r s h o r t w a y t o a n s w e r t h i s q u e s t i o n – t h a t t o o w i t h i n a f o o t n o t e . H e n c e t h e r e a s o n t o w r i t e B o o k T w o a s w e l l a s t h e h i n d s i g h t a n d c o n c l u s i o n s e c t i o n s w h e r e I p r o m i s e t o r e v i s i t t h i s q u e s t i o n .



To: Paul J Kim

Sent: Monday, May 21, 2001 5:34 PM


Hey Paul...

Every now and then I wonder what you are up to and it’s a great way to

begin a day with an email like yours. I finally decided to give up on the

yellow brick road to startup land. Couple of things happened at once. The

incubator went down in a big way as their business dried up, we went

looking for money too late and as a result didn't get any. After operating

without cash for the close to 4 months, I finally opted to do something less

stressful with my life.

The job market is pretty tight. I have had a few interviews but nothing

substantial as yet. Waiting it out and spending a lot of time on

monster.com. In the mean time I have gone back to my day trading days. It

gives me something to do and pays the rent.

Fawzia and Amin are doing very well. One beneficial side effect of the

above decision is that now I get to spend a lot of time with them. First time

in the past two years we are finally getting good quality time on weekends.

Both of us started Dr. Atkin's protein diet to shed our second skin of fat day

before and are still in the Carbohydrate withdrawal cycle. Expect things to

improve in the next few days.

It was really great to hear from you. Do stay in touch. Take care

Jawwad



Sent: Sunday, September 23, 2001 5:52 PM

To: Jawwad@avicena

Subject: Update from LA LA Land.. .

Just thought I would send out a short and sweet note to all of my friends &

family about the latest in my life. It’s been some time since I got round to

sending one of these out.

For those of you who don't know as yet, Avicena, the e-education venture

was claimed by the down turn in late May. It was a labor of love for all the

team members and made it very difficult to step away. There are a thousand

ways to leave your lover, but the sages are silent when it comes to bringing

down the shutter. But step away I did. The two piece of advice that did

help tremendously were the words of Andersen partners I used to work for

"Never make mistakes alone" and "Charge it to the experience account". I

was fortunate to have the unconditional support of my family, friends as

well as people who are close enough to be both.

The past three months have been nothing short of amazing. When I started,

there were a number of outstanding "to do's" in my life including losing 30

pounds of excess weight, learning how to drive a car and getting a drivers

license, completing my Fellowship requirements for the Society of Actuaries,

getting a job with a regular paycheck, balancing, work, family and health

and taking out a an uninterrupted chunk of time for Amin and Fawzia.

By the grace of God (and His generosity and benevolence), three months

later, my personal to do list is now a lot smaller. We also got a couple of

bonus items along the way like driving twice on Route 1 to San Francisco,

relocating to Northern Virginia (right next to DC & Dulles Airport), finding a

position that allowed me to be an Actuary, an MBA and a computer scientist

(all) at the same time, earning the rights to the three letters (FSA, Fellow

Society of Actuaries), getting a really cool apartment in a really cool


neighborhood. I still have another 15 lbs to go on the weight front, but

whatever little progress I have made on that front will do for now.

On the work front, it's been a week and I have finally managed to get my

old address book installed on my new machine...Hence the mass email (my

apologies, will write to all of you individually over the next few weeks).

In case you are wondering, work so far is very good. AnnuityNet sells

technology platforms for managing, servicing and selling financial services

products for financial institutions (www.annuitynet.com43 for more details).

I am working with

1. One Mathematical Genius (ex Chaos Theory Professor)

2. One extremely well respected Actuary (Three companies, 1 IPO and a

handful of millionaires to his credit)

3. A really laid back, well oiled, ultra competent technology team

4. A converted 200 hundred year old barn right next to a converted

bike/jogging trail that goes all the way to DC

5. Next to a well stocked kitchen and vending machine that everyday

threatens to put the 15 lbs back

That is all for now. It will be really good to hear from you again so send me

a line or two (or more - definitely more). Take care

Jawwad

43 C o m i n g i m m e d i a t e l y a f t e r A v i c e n a , A n n u i t y N e t p r o v i d e d a g r e a t o p p o r t u n i t y t o a p p r e c i a t e a l l t h e t h i n g s w e h a d g o t t e n w r o n g a n d A n n u i t y N e t h a d g o t t e n r i g h t . F r o m f u n d i n g t o t e c h n o l o g y , f r o m h i r i n g t o s e r v i c e l e v e l a g r e e m e n t , f r o m b u s i n e s s d e v e l o p m e n t t o c l o s i n g d e a l s , S h a n e a n d h i s t e a m p r o v i d e d a f r a m e o f r e f e r e n c e t h a t p u t t h e m i s t a k e s w e h a d m a d e i n e v e n s h a r p e r c o n t r a s t .


Takeaway

Endurance: Your endurance is a balance between the

depth of your personal check book and the intensity

of your belief in what you are doing. In plain

English, either have more capital than you would ever

need or enroll in Zealots 101. Ideally do both.

I survived because I had my family with me. When

every one else walks out on you (or you walk out on

every one else) they are the ones who will carry you

through, irrespective of how mean, rude and arrogant

you have been. So be nice to them.

Timeout: Take timeout to recover physically and

psychologically. Don’t ponder too much on why me or

what you could have possibly done to save your

business. Focus on how you would do things

differently next time.

There is no space for regrets or missed opportunities

on this page. Failure is a badge of courage,

acknowledge it, and wear it with pride.

Taxes: Sort out your tax related paperwork and save

your receipts. This is where forming a Limited

Liability Company (LLC) helps since it allows you to

distribute losses to your members, as part of your

yearly distribution, not just on winding up. If you

have had other sources of income or start receiving a

fat paycheck in the year of your failure or after,

the tax break will help.

California LLC: A California LLC in 2000 came with a

minimum tax of 800 dollars a year even if you did no


business in that year. It didn’t sound like much at

the time of incorporation but when you are broke and

over leveraged, every additional dollar hurts like a

root canal.

Be nice to people on your way up. Be prepared to see

your backup options disappear: My two six figure job

offers (Viant and the one in Florida) disappeared by

the time I was done with Avicena. Markets and

economic conditions change and this change is part of

your bet.

The first post Avicena job interview happened within

two days of my initial “I am on the market” mail

shot. The source of that interview was a classmate

from Columbia. I was lucky that in a down economy I

averaged an interview every fortnight and that

strangers, who had no reason to be nice to me, were

generous and supportive with leads, references and

ideas. An insurance broker I had never met pointed

me to a firm of consulting actuaries in San Diego,

who pointed me to another eminent actuary, who came

back with four references, one of which led to Mark

Abraham at Transamerica who suggested that I have a

word with Shane. It was the actuarial network mixed

with acts of random kindness and patience that traced

the path from Orange County, southern California to a

two hundred year old converted barn in Leesburg,

northern Virginia.

Did the Entrepreneurship experience help? No, Shane

and the first interview were the only exceptions.

I was trying to transition back into smaller roles at

larger firm and taking crazy bets with your career


and your life are not the ideal recruiting strategy

in those quarters.

As with business, a laser sharp focus in a job search

also delivers. It is a question of time, practice,

patience and luck.


Book Two – The Blue Screen of

Death


The blue screen of death

In the beginning, there was Microsoft Windows. For

some one coming from the dark ages of character based

DOS, this was new age stuff. Freedom from the uni-

dimensional blinking cursor. A portable thumb sized

MP3 player with digital quality sound in the age of

the gramophone 44. But like most new age stuff

introduced across human history, it wasn’t perfect.

There were kinks, bizarre black holes; obtuse blue

screens that announced your system had become

unstable. With a technology that was less than a

decade old, on a platform that was even younger,

using a just released operating system, the blue

screen caused sheer panic. What should I do? Douse my

computer with water for it may burst into flames any

minute? Call the techno geek’s equivalent of 911?

The three finger salute – press CTRL-ALT-DELETE? and

voila; an instant reboot. And when that didn’t work,

you did what you did with everything else in life;

pull the plug out and plug it in again.

In the first few editions of Windows, the blue

screens were as common as Windows was rare. At times

all it took was a single key stroke on an already

stretched computer to invoke the wrath of the blue

screen. Like bad food, untested software and low

quality pirated copies would produce blue screens

with the severity of anaphylactic 45 shock.

44 W e l l W i n d o w s 1 . 0 w a s n ’ t r e a l l y t h a t g o o d , b u t y o u g e t t h e p i c t u r e 45 F a n c y m e d i c a l n a m e f o r a l l e r g i c r e a c t i o n s .


As the personal computer, subcomponents, software and

Windows itself improved, blue screens started

becoming rarer. My IBM Thinkpad and Windows XP combo

today throws up a blue screen once in a year. And

that too when I do something at the hardware level

that I am not supposed to. It took a decade and a

half after Windows original launch for this universal

icon of electronic instability to be hunted down into

extinction.

What is the relevance to entrepreneurship? You may

ask. One word – Reboot. The concept that you can flex

three fingers (or one, as I have done at times) at a

specific instance of your life and restart with what

is left and salvageable a few seconds (or years)

later. Just like the initial version of Windows, for

first time entrepreneurs, blue screens are expected.

With each iteration they become rarer. Till you get

to a stage where you are endowed with the “touch”.

You become the entrepreneurial Sufi46 – turning every

thing you bless, with your presence, into gold.

46 S e e h t t p : / / e n . w i k i p e d i a . o r g / w i k i / S u f i


Hindsight

Ho w d i d an M BA fr o m C ol u m bi a B u si n e ss S c ho o l ,

an a c t ua ry w it h a d e ca d e of i nt e r na t i o na l

co ns ul t i ng ex p e ri e n ce , a nd a to p- n o tc h c o m pu t e r

sc ie nc e g ra d u at e e n d u p l i k e t h is ? 47 B a d k ar m a ?

Gr ee d? De s t i n y ? S t u pi d i ty ? F a t e ? A r r o g an c e ?

Qu an tu m ph y s i c s 48? A ll o f t he a bo v e ?

In m y r el i g io n , p re de st i n at i o n is a cc e p te d

wi sd om , s o fa t e wo u l d be an ea s y w a y ou t . I t i s

li ke t a ki n g th e f i f t h. I w as d e st i n ed to fa il ,

so I f a i le d. On a m et ap hy si ca l le v e l , m a y b e ;

bu t i n a m or e do wn -t o - e ar th d i m en s i on ,

pr ed es t i na t i o n do es n ’ t a ns w e r qu e s t io ns y o u as k

yo ur se l f y e a r s la t e r at m id ni gh t wh e n yo u a r e

wr it in g t he c l os i n g c ha p t e r o f a bo ok th at ha s

be en yo ur co ns ta nt be ds i d e c o mp a n io n. It i s no t

th at f i nd i n g a ns we rs c h a n g es a n yt h i ng ; i t ’ s

ju st t ha t fa ul ti ng d es ti n y d o e s n’ t r e al l y g iv e

me t he c lo s u r e I h a ve b ee n l o ok i n g f or .

Wh en I fi rs t s t ar t e d t h i nk in g ab ou t w r it in g

th is bo ok , I h ad a l i st of q u e st io n s I d i d w an t

to a ns w e r. T h e y w e r e:

47 C o u l d n ’ t y o u j u s t g e t a h a l f w a y d e c e n t j o b a n d n o t b e a n e n t r e p r e n e u r ? W e r e n ’ t t h e s i x - f i g u r e o f f e r s g o o d e n o u g h f o r y o u ? A n d s i n c e w e a r e o n t h e s u b j e c t , w h o e x a c t l y w a s y o u r c a r e e r c o u n s e l o r ? 48 J u s t c h e c k i n g t o s e e i f y o u a r e s t i l l p a y i n g a t t e n t i o n .


a . W hy d id A v i c en a fa il ?

b. W he n di d I de ci de i t wa s ti me t o wa lk a wa y

in to t h e s u n s e t ?

c. H ow d id I k n ow i t wa s re a l ly o v e r ?

d. W as i t w o r t h i t ?

e. W ou l d I d o i t a g ai n?

Th e f u n ny th in g i s t ha t e v en a f te r w ri ti ng 14 0

od d p a g es , I h a v e s ti l l ma na ge d t o e v a de th e

co re q u es t i o n s . I h a ve pu t t o g e t he r f r ag m e nt s

of a f ab le , w it h t he re a l st or y s ti l l un to l d .

An d f r o m t he l o o k s of th e l a s t r ea d, cl o s u r e

st il l a pp ea rs t o b e a fe w d r a ft s a w a y. F r e ud ia n

sl ip ? P e rh a p s .

Le t’ s ta ke a f in al s ho t at a n sw e r in g th e

mi dn ig h t qu es ti on s a nd t r y to f i na l l y pu t t hi s

ad ve nt u r e t o r e st .

Se co nd qu es ti o n fi r s t . I t w a s mo r e li ke su nr is e

si nc e w e w er e m o vi ng ba ck e a st to V i rg i n i a . Fo r

me t he re al t ur n i ng po in t ca me wh en I so rt o f

dr ow ne d in th e po ol (y es t he sa me o ne I wa x e d

po et ic a l ly a b ou t ea rl ie r ) . Th is wa s ea r l y

Fe br ua r y 20 01 , j u s t af t e r t he t r ip s t o Ka ra ch i

an d D u ba i , th e ca ll f ro m Y ah o o , an d th e

ev ic ti o n no t i c e s . A f t er I d r a gg e d m y se l f o u t o f

th e p o ol , k i ss e d i t s ti l e d ed g e s, t h a nk e d G od

fo r s av in g m y li fe , w ha t w er e m y f i rs t

th ou gh t s ? T he y w er e “ Wh at if I h ad n ’ t m ad e i t

ou t? ” f ol lo we d i mm e d i at el y b y “ Wh at wo ul d b e m y

le ga cy to my f a mi l y ?” Fo r t y th ou sa n d do l l a r s i n

cr ed it ca rd de bt , a h u nd r e d a n d t w e nt y t ho us an d


d o ll ar s i n p e rs o n al l o a n s , a n d a ha lf -b ro k e n

st ar tu p to p a y it a ll o ff w i t h!

Wi th s pr i n g ’s a rr iv al , f u n di n g l ea d s t ha t w e

th ou gh t wo u l d c ar r y u s th ro ug h th e n e xt st a g e

in ou r b us i n e s s pl an fe ll t h ro ug h; th e mo d e l w e

ha d b u i lt th e c om p a n y o n r el ie d o n f un di ng . W e

ha d s ol d o ur se lv es so he av il y o n o t he r p eo pl e’ s

mo ne y t ha t w i th o u t i t, i t d i d n ’ t s ee m r a t i o na l

to g o o n. T h e mi n d s hi ft r eq ui re d to lo ok a t

al te rn a t iv e s w it h o ut fu n d i n g a ls o im pl ie d t h a t

it w ou ld h ur t ju st a s b ad l y f or a f ew m o r e

mo nt hs , ma y b e e ve n a ye a r , be f o re t h e c u rr e n t

cr is is w ou l d b o tt o m o ut .

Wh en al l yo u c ar ed a b o ut w a s a q ui c k wa y t o en d

th e pa i n, t h i s w a s n ot w el c o m e ne w s o r a n

ac ce pt a b le a l t er n a ti v e. I ha d a l re ad y cr os se d

my t h r e sh o l d f or d eb t a n d in t he a b s e nc e o f

ca sh o r r ev e n ue s i n t he n ea r f ut u r e, a d d i n g

mo re d e bt wo ul d h a v e b e e n on e m or e s te p c l o se r

to pe rs on al ba nk ru pt c y. I w a s n’ t w i l li n g t o ru n

th at f a r f o r m y h u n dr ed -m il l i on - d o l l ar d re am s.

Al ep h w as i n d ee p t ro u b le a nd c o ul d n ’t su p p o r t

us . W i t ho u t t he m , Ca li fo r n ia wa s n o l o ng e r th e

Pr om is e d La nd , ju st a ve ry e xp en si ve , u nr ea l

oa si s b et w e en a d ry d e s e r t a n d a s a l t y oc ea n

th at h ad c a u gh t m e sh or t on h e a lt h i n su r a n c e ,

su pp li e s , a n d c as h. Yo u c o u l dn ’ t pa y

Co ns ol i d at e d E di s o n wi th s un s h in e do l l ar s. I t

wa s ti m e t o b l i nk .

Ho w di d I k n ow i t wa s re al ly o v e r ? A r n o

dr op pe d by fo r an e v en i n g to ch ec k us ou t. H e


t o ok a s ho r t d et o u r fr o m a t el ec om mu n i ca t i on 49-

i n du st r y e ve nt CS FB w a s h o s t in g i n th e

ne ig hb o r ho o d . B et w e en l on g c h a ts , fo od ,

ci ga re t t e s mo ke , a n d a h az y e v e ni n g on o u r

ba lc on y , h e o ff er ed to in ve st w h at e v e r l it tl e

he h ad if i t wo u l d h el p us m ak e i t t h ro u g h th e

su mm er .

I s le p t o n t he of fe r f o r t w o ni gh t s , o nc e ag ai n

sp ok e w it h Q am ar a n d K en , an d t he n t ur ne d i t

do wn . I d i d n ’ t w an t y e t a no t h er fr i e n d ’s bl oo d

on my s hi r t . T he re w as a l re a d y e n ou g h on m e a s

it w a s . I f I w a s n ’ t w il li ng t o t a k e A rn o’ s

mo ne y, wh y w as i t o ka y t o c a r r y on b o rr o w in g

mo ne y on my n am e ? Wh y wa s I s t i ll th ro wi ng i t

on s o m et hi ng I ha d st op p e d be l i ev i n g in ? S id e

by s i d e wi th p re de st in at i o n c om es f a i th . L o s e

it a nd y ou l o s e i t al l.

Fo r S a r wa r i t si m p ly di d n ’t c o m pu t e . O n o ur

la st d ri ve t o ge t h er , he a d in g b a ck fr o m D an a

Po in t, h e k ep t q u es ti on i n g ho w s om e o ne w i t h

su ch a s tr o n g b e li ef in hi s r el i g io n c o ul d h av e

so l it tl e fa it h i n hi m s e l f. T h e d e b a t e a b o u t

do gm a, pr a c t i c e, h y po c r is y, a n d b e l i e f sy st em s

ra ge d o n. I ha dn ’t j u st l os t f ai th in my s e l f o r

Sa rw ar , I ha d r ea ch ed a c ro s s r oa d w he r e it w a s

ob vi ou s t ha t t hi s w as no l o n g er de st in y a t

wo rk . I c o u l d ig no re t h e s ig ns a n d c a rr y o n

bl in dl y o r I co ul d t ur n a ro un d a nd fi gu re o u t

49 A c a t c h a l l c a t e g o r y f o r m a m a b e l l , b a b y b e l l s , w i r e l e s s , b r o a d b a n d , i n f r a s t r u c t u r e a n d t e c h n o l o g y c o m p a n i e s d e d i c a t e d t o t r a n s p o r t i n g t h e s p o k e n w o r d f r o m o n e e n d o f t h e g l o b e t o t h e o t h e r .


w h er e t he n e a re s t ex it w as an d st a rt o v e r

ag ai n.

Wa s it w or t h i t ?

Ye s. N o th i n g r ea ll y g o e s t o w as te . W ha t w e

le ar ne d a bo ut th e o nl in e t ra in in g a nd e d uc a t io n

ma rk et th r e e y ea rs l at e r wa s t o p u t t o w or k

wi th i n st r u ct or l e d i nt e r a ct i v e t ra in in g a t

Al ch em y . Th e f ac t t ha t I w as br av e ( o r du mb )

en ou gh to t a k e o n a f a l t er in g ec o n o my a s a n

en tr ep r e ne u r l ed t o th e o f fe r f ro m S ha ne a t

An nu it y N et ( w ww . a nn ui ty n et .c om ). M an a g i ng m y

ex pe ct a t io n s an d o f th o s e a ro un d m e b e ca m e th e

st ro ng e s t p il la r o f my pe rs on al cr e d o , s i d e b y

si de w i th a l is t o f ot h e r l es s o ns 50, t au gh t b y

Av ic en a bu t p u t t o wo rk a t A l ch e m y .

Th is o f co ur se do e s n ’t c h an g e th e f a c t t ha t i n

Ap ri l 2 00 1 , w he n a ll o f t hi s wa s a ct u a ll y

ha pp en i n g, I w as he ar tb r ok en , m is e r ab le a n d

in co ns o l ab l e . S om et hi ng t ha t I h ad l ov e d an d

ca re d fo r h a d d ie d an d I d id n ’ t ha v e th e

st re ng t h t o m o u rn f or i t.

Wi th t hi s c o n te x t , gi ve n t he c ho i c e be tw e e n

ac ce pt i n g a s ix - f i g u re o f fe r f r om Vi a n t an d

do in g A vi c e na al l o ve r a ga in , w ha t w ou ld I

ch oo se ? Yo u w o u ld b e su rp ri s e d.

Wo ul d I d o i t a g ai n? In a he ar tb ea t, ye s . W hy ?

Pe rh ap s s om e o n e li k e S ar w a r w il l c o m e a l o n g an d

50 S t a r t u p R o u l e t t e : T e n M y t h s T h a t K i l l , J a w w a d F a r i d , u n p u b l i s h e d p a p e r .


d a re m e a ga i n . P e r h ap s I wo n ’t ne ed a da re a n d

wo ul d ta ke t he pl u n ge a l l b y m y se l f . Pe r h a p s ,

li ke m y ot he r v a r i e d v i c e s, f a t e i t s e lf w i l l

te mp t m e t o s i n o n e m or e ti m e .

Th e m a n y pe rh a p s a si d e , a t h e ar t I am a bu il de r

an d ma ki ng c o mp a n i e s is w h a t I am w ir ed to d o

be st . Th e r e as on in g an d th e lo gi c d o es n ’ t

ma tt er , wh at m at t e rs i s th at g iv e n e no u g h

li ve s, en o u g h t im e , a l it tl e ca sh , a nd a l o t o f

he ar t, mo s t en t r e p re n e u r s fi na ll y m a n ag e t o

fi gu re i t ou t. T h e on e s w ho m a k e i t ar e th e

on es w h o k e e p t ry i n g un ti l t h ey d o .

So y e s , o nc e I ha v e h ad a ch a n ce t o c at c h m y

br ea th , s to re up on re se r ve s, r e pa y s om e o f m y

de bt s, an d c o n v in c e F a wz i a t o ta g a lo ng f o r on e

mo re r i d e, I a m d e s ti ne d to d o t h i s ag a i n.

Be ca us e o n a pe r s on al le ve l, fo r a n

en tr ep r e ne u r th e o n l y w o r l d w or th l i v i ng i n i s

th e o ne cr af te d w it h h is b a r e ha n d s ; e ve ry th in g

el se i s a c he a p i mi ta ti on an d a p a in f u l

re mi nd e r of ho w v a in ly h e ha s sh o r t c h an ge d

hi ms el f .

Wh y d i d I ha ve t o b li n k o r W hy di d w e fa il ?

(A sk ed wi th a n e mp ha s i s o n “ ha ve t o ,” n ot “I .” )

Is th e r e a ch ec k l is t t ha t y ou ca n f ol lo w t h a t

wi ll h e lp y o u av oi d m y f a te ? S id es te p f ai lu re ?

An ot he r bo o k , a no t h er t im e?

I w ou l d ma ke a l ou sy no v e l is t— l e t m e g iv e a wa y

th e c l im ax a ga i n . T he r e i s no r ea l c h ec k l i s t .

Ea ch o f u s wi ll w a l k a d if fe re n t p at h a nd m y


m a ps , l e ge nd s, an d c o nv i c ti on s w o ul d b e

wo rt hl e s s o n y o ur s .

St il l, mi d n i g ht h a s be en a g r e a t c om pa ni on an d

ov er cr ea ki ng be ds an d s le ep l es s p i l lo w s I h av e

th ou gh t o f th in g s t h at I wo ul d d o d if fe re nt l y .

No t wi th re g r e ts o r a de si r e t o he ad ba ck i n

ti me a n d s av e m y bl e e di ng b u si ne ss ; m o re i n th e

ho pe th at m y n ex t s ta rt o u t o f m y b l oc k s 51 w o ul d

be a c l a ss ie r a c t t ha n th e on es I ha v e l e f t

be hi nd .

He re i s a l i tt l e mo r e d et a i l on m y li s t o f

cr uc ia l pr o b l e m s, t he m yt hs t ha t s u n k A v ic en a.

Th e fu n d in g m i n ds e t – c ap it a l a n d p a rt n e rs

Th e f u n da m e n t a l m is ta ke t h at su nk A v i ce na w a s

th e m i n ds e t th at t h e o n l y wa y t o s uc ce ed a n d

co mp et e i n t h is b u si ne ss w as to ge t v e nt u r e

ca pi ta l fu n d i n g a n d th a t g e tt in g fu n d i n g w o u l d

be e as y .

Th is m in ds et w a s r e in f o rc ed b y th e e a s y mo n e y

av ai la b l e ci r c a e a r ly 2 0 0 0. T h e Eu ge n e L an g

Fu nd a t C ol u m b ia B us in es s S ch o o l o ff e r ed a

gr an t o f U S$ 1 0 , 0 0 0 t o t es t p r o du c t id ea s a s

pa rt o f th e g r ee nh o u se in cu ba to r c o u r s e . T hi s

wo ul d b e f ol lo we d b y a s m uc h a s a n a dd it io n a l

US $ 2 50 ,0 00 in ve st me n t i f y o u r v e n t u re m a d e th e

fi na l c u t.

51 A s i n a t h l e t i c s


W i th in tw o m on t h s o f l an d i n g i n s ou th er n

Ca li fo r n ia , o n t h e b as i s of t he bu s i n e ss pl an ,

th e c re de nt i a l s o f t h e te a m we ha d p u t

to ge th e r , a n d th e s up p or t o f o ur ea rl ie r

re fe re e s , w e re ce iv ed a n in di c a t iv e of f e r

va lu ed be tw e e n U S$ 2– 3 m il li on fo r 3 0% of t h e

fi rm . Al e p h a nd S a rw a r ha d ag re e d t o st an d

be hi nd a c om mi tm en t we pr ic e d a t US $ 25 0, 00 0

ov er t w o ye ar s a nd th e m a rk e t va lu e d at f o u r t o

fi ve t i m es t h a t a m o un t 52.

Wi th a n M B A an d a d ec e n t b us in es s p l a n, th e

on ly s o ci a l ly ac c ep ta bl e w ay to do th is wa s t o

se ll th e p la n, ge t f u n di n g , b u il d t he bu si ne ss ,

ai m f or ex it , a nd d e p a rt w i t h yo u r c on v e nt io na l

8% a s t he e x -C EO . Th e f ir s t t i me a v e n t u r e

ca pi ta l a ss o c ia te s u gg e s te d t hi s , w e h ad a

ve rb al fi st fi gh t, bu t i t d id n ’ t t ak e m e l o n g

to c om e ar o u n d to h is p oi nt o f v i e w .

Wh at d i d we do ? Ou r f ir s t r ea c t io n w as t ha t w e

we re s i tt in g o n s o m e t hi ng l a rg e an d s ub st a n ti a l

an d w e s ho ul d o n l y sh a r e i n t h i s b ou nt y w i t h

ot he rs if w e c ou ld g e t a r ea ll y g r e at pr i c e an d

re ta in a m aj or it y s ta ke fo r o u rs el v e s. T h e o nl y

wa y to k ee p a l a r g e r s l i c e a n d g e t a b et te r

va lu at i o n w a s t o d el a y fu nd i n g t o a st a ge wh er e

we ha d c us to m e rs , r ev en ue s , ma y b e

pr of it a b il i t y , c as h i n t h e b a n k, a f ew t e r m

sh ee ts in o ur ha nd s, an d lo t s of VC ph on e ca ll s

to r et u r n. T h a t w a s t he g en e r al i d e a .

52 O u r i n t e r n a l p r i c i n g r e f l e c t e d A l e p h ’ s c o s t s t r u c t u r e o u t o f P a k i s t a n . T h e m a r k e t p r i c e d o u r d e a l i n t e r m s o f r e p l a c e m e n t c o s t o n s i t e i n C a l i f o r n i a .


T h e r e s ul t i ng fo c u s t he n f ro m d a y o ne wa s o n

fu nd in g . U p d a t e t h e bu s i n e ss p l a n s o th at w e

co ul d ge t f u n di n g ; wr it e a b e t te r e xe c u t iv e

su mm ar y s o t h at w e co u l d ge t f un d i ng ; bu i l d

te ch no l o gy s o th a t we co u l d ge t f un d i ng ;

at tr ac t c us t o m e r s s o t ha t w e c ou l d ge t f un di ng ;

hi re t a le n t s o t ha t we co ul d ge t f u n di n g ;

ge ne ra t e re v e n u e s s o t ha t w e c ou l d ge t f un di ng .

“G et f un di ng ” t o ok on a li f e a n d m in d o f i t s

ow n an d be ca me t he p ri ma ry d ri ve r , m o ti v a ti on ,

an d r a i so n d ’ êt r e. O nc e w e h ad a ch ie ve d t h i s

ne ar ly i mp o s si b l e g oa l , o nl y t h en w o u ld w e be

ab le t o t ak e a b re at he r an d f i g ur e o u t h o w t o

bu il d t h e p l a n n ed b us in es s w i th o u r ne w ca sh .

Ho w d i d t he “ G et f un di ng ” m o d el w o r k ? T h e

fu nd am e n ta l c o mp o ne n t i n t h e g e t fu n d i n g p i e c e

wa s t h e bu s in e s s pl an a nd t he e xe c ut iv e

su mm ar y . Y o u l iv e d , fo u g h t, d ie d, a nd s ur vi ve d

by t he p la n. In A v i ce n a ’s l if et im e, w e wr ot e

an d u p d at e d 56 e d i t io n s of t he pl a n ba se d o n

co mm en t a ry a n d f e e d b a ck f ro m in ve st or s wh o h a d

re ad i t . Ov er tw o y e a rs , th a t am ou n t ed to a ne w

ed it io n e ve r y t wo we e k s. Th e r e c am e a ti m e w he n

ou r fo ur -m an t ea m wo u l d o nl y wo r k o n t h e

bu si ne s s pl an an d n ot h i n g e ls e a t a ll pr io r t o

su bm is s i on of a r e v i se d e di ti on to a pr om is i n g

fu nd in g or s t r a te g i c in ve st m e nt l e a d .

Ha lf o f th e y ea r b ef or e t h e m o v e t o C al i f or ni a

wa s d e di ca te d t o b u il d i ng a be tt er b us in es s

pl an . Th e f i rs t f e w m on t h s in C al i f or ni a w e r e

sp en t r ev i s i n g th e p la n i n- li ne wi t h f ee d b ac k

re ce iv e d f ro m a ng el i n v es t o rs a nd bo a r d


m e mb er s . Th e l a st fe w m on th s s pe nt in a fr an ti c

se ar ch f or m on e y w er e al l o c at ed a lm o s t

co mp le t e ly t o u pd at in g, e d it i n g, a nd m o di f y in g

ex ec ut i v e s u mm a r ie s, s tr at eg i c i n v es t m e n t

pr op os a l s, a n d th e bu si ne ss p la n .

Wh en I lo ok ba ck a t t he ef fo rt n o w , I wo n d er i f

it wa s no th i n g m o r e th an a gr e a t b ig wa s te . I f

th e s a m e ef f o rt a n d i nt e n si t y h ad g o ne in t o

bu si ne s s d e v el op me n t d i s c us s i on s, p u r su i n g

ma rk et i n g l ea ds , or mo re p ro du ct iv e r ev e n u e -

ge ne ra t i ng ac ti vi ti e s , A vi ce na m ay ha v e b e e n

lo ok ed b ac k o n wi t h k in de r e y es .

If i t w a s a ny c on so la t i o n, mo s t M BA es q ue 53

p l an s, s t a r t u ps , a n d f o u n d er s we re d ri v e n b y

th e g e t- fu nd i n g m o d el a b o ve : B u il d t h e s et ,

hi re t h e a ct or s, c r ea t e th e s t a ge , a nd in t h e

pr oc es s b ur n yo u r o w n, yo ur f ri e nd s ’ , an d y ou r

fa mi ly ’ s ne st eg g s an d a n y o th e r ea sy mo ne y o r

cr ed it t ha t y ou c a n ge t yo ur h a nd s o n . I f yo u

pu t u p a go od e n o ug h s h o w wi t h t he ri gh t

co mb in a t io n o f co l o rs a n d fi r e , so me o n e ma y

ac tu al l y un de rw ri te t he re al m on ey n ee d e d t o

tu rn t h e th e a tr i c al an d ma ke -b e l i ev e at te m p t

in to a r ea l- li fe p r od u c t i o n. Ho pe fu ll y t hi s

an ge l w ou l d ar ri ve ju st be fo re yo u r an ou t o f

ca sh a nd ju s t a ft e r yo u r p os t - la un ch p ar t y .

On ce t h e p la n h a d be e n un d e r w ri t t en by o n e

in ve st o r , e xp ec ta ti o n wa s th a t a b un ch o f t h e m

wo ul d fo ll ow t hr ou gh o ve r t h e n ex t f e w y e a r s

si nc e no on e wo ul d wi sh to b e le ft b e hi n d i f

53 A s i n t r a c e a b l e t o s o m e o n e w i t h a f r e s h l y m i n t e d M B A


y o ur p r od u c ti on a c t u al l y b ec a m e t he h i t o f th e

se as on .

Un fo rt u n at e l y , t ha t i s n ot h o w y o u bu i l d

bu si ne s s es or su st a i n ab le fr an ch i s es .

Bu si ne s s es a r e b u i l t f r o m t h e g ro un d up w it h

re so lv e , co mm it me nt , a nd v al u e s t o a nd f or t h e

bu si ne s s —n o t w i th fu n d in g . T he bi g g es t d o w ns id e

wa s t h a t t he m i n ut e y ou fi g u re d o u t fu nd i n g wa s

no t li ke ly , th e g a m e w a s ov e r . Yo u r b us i n es s

wa s t o g et fu nd i n g; wi th no fu n d in g t he re w a s

no b u s in e s s . So me ti me s ev en i f y ou w er e

fo rt un a t e e n o u gh t o re c e i ve f un di ng , th e qu es t

ha d c o n su m e d so m u ch o f y ou t h at t he re w a s

no th in g l ef t t o g iv e t h e fr an ch is e y ou ha d

wa nt ed t o b u i l d .

Wh en C he sc or e , H i m a l a ya , an d Hi te ck p as se d an d

Pe ar so n i nd ic at ed t h at it wo u l d b e a wh i l e

be fo re it wo ul d g e t ba ck , t he r e wa s n o r ea s o n

to c ar ry o n . W e h ad f ai le d to ge t f u nd i n g an d

th e ga m e w a s o v er .

Mo ra l o f t he st or y : Bu i l d a b u s in e s s f ir st . I f

yo u do a f i n e j o b , f un di n g w il l fi nd y ou . Yo u

ar e be t t er o f f no t lo ok in g f o r i t f r om d ay o ne .

Le ss on s le a r n e d :

a . I f y ou kn o w w h at y ou a r e d oi ng an d k no w

h ow mu ch ca p i ta l y o u n ee d, do n ’ t m o v e

f or w a rd un t il yo u g e t it . I f y o u c a n ’t ge t

i t, dr o p t h e i d ea . I f s m a rt mo ne y w il l no t

f un d y o u, t h e re i s a r e a so n. E it he r th e

i nv e s to rs h av e al re ad y se en th e mo d e l

b ef o r e ( so m e bo dy i s al re ad y i n y o u r s pa c e ;


t h e i n v es t o rs h av e in ve st e d i n s o me t h in g

s im i l ar an d h a ve l o st mo n e y o r pr es ti g e ;

t he y h av e lo ok e d a t th e dy na mi c s an d t he y

d on ’ t ad d u p t o a re as on a b le pa yo ff i n a

r ea s o na bl e t i me ) o r y ou a r e l a c ki n g w ha t

i t w il l ta ke to e x e c ut e it . S u r e, n e t w or k

a nd r e f er e n ce s pl a y a r o l e bu t ul t i m at el y

a ve n t ur e d e s t in ed fo r p ro fi ta b i l it y w il l

f in d fu nd in g o ne w ay o r a n ot he r.

b . I f v e nt ur e ca p i ta l w o n ’t f un d it ,

c us t o me rs w il l; i f cu st om e r s wo n ’ t, y o u r

f ri e n dl y n e i gh b o rh oo d ba n k e r wi l l .

I nt e r es ti ng l y e no ug h, i t m ay b e

c ou n t er in tu i ti ve , b u t f i n d i ng f u n di n g i s

n o g u ar an te e o f su cc e s s.

c . F or m o st en t r ep r e ne u rs , c ap it al is t h e

i ni t i al or on g o in g i n f u si on of ca s h an d i s

g en e r al ly e qu al t o e qu it y. T ha t i s n o t

a lw a y s t he ca se . D eb t c on v e r ti bl e i n t o

e qu i t y, st r a i gh t d e b t, p e rs on al or f a m il y

s av i n gs , pr of i t r e i n ve s t ed i n th e

b us i n es s, d ef er re d pa ym en t s t o em pl oy e e s

a nd ve n d or s , a n d c us t o me r d o w n p ay m e nt s o n

w or k in p ro g re ss a re a ll s ou rc es o f c as h.

d . T he l a st f o ur s o ur c e s a re in te rn a l ,

r el a t iv el y e a si er t o ge n e ra te a n d co n t ro l

c om p a re d to e xt er na l s ou r c es , a n d ha v e n o

s tr i n gs a tt ac he d. I n t he l as t 1 5 y e ar s

t he y h a ve b e e n th e mo st r el ia bl e an d

d ep e n da bl e s o u rc e s of c as h I h a v e u s e d o r

s ee n us e d . E x te r n al s ou rc es h av e

i nf o r ma ti on a nd c re di bi li t y p r o bl e m s


a t t a c he d w h i c h a r e di f f i c ul t t o ad dr es s

f or f i rs t - t im e o r f re s h en tr e p r en eu r s .

W he n t he y d o a t t em p t t o s ol v e th e s e

p ro b l em s, t h e re s u lt i n g ef f o rt a n d

d is t r ac ti on i s f at a l fo r t he b u si n e s s. A

f ou r - ma n te a m of fr es h e n t re p r e n e ur s w it h

l im i t ed c re de nt ia ls f oc us in g o n si g n i n g

c us t o me rs w i l l g en e r at e c as h f l o ws f a s te r

t ha n t h e s am e te am w or ki ng on p it ch i n g

b us i n es s p la n s or lo a n a p p li ca t i on s t o

f or m a l s ou rc es o f c ap it al . (H er e f o r ma l

s ou r c es i nc lu de l en de r s , a ng e l i nv e s to r s ,

v en t u re ca p i t al fu n d s, i n cu ba to r s , an d

s im i l ar i ns t it ut io ns . )

e . W he n f o rt un a t e e n o ug h to re ce i v e a

f in a n ci ng t er m sh ee t, e nt re p r e ne ur s

g en e r al ly mi su n d e rs ta nd wh at th e t e r m

s he e t a n d t he co n c ep t o f e qu it y r ep re se n t .

E qu i t y on ly h as v a l ue i f t he v en tu re i s

a li v e a n d s ol v e nt . A s a n e n t re p r en eu r, yo u

n ee d t o so lv e a r id d l e ma xi mi z i ng t w o -

d im e n si on al e q ua ti on s . T he f ir s t d i me n s io n

i s v a l ue t o o wn er re pr es en t e d b y

p er c e nt ag e o wn er sh ip , m ar ke t v al ue o r f a i r

v al u e of yo u r s ta k e , a nd co nt r o l; t h e

s ec o n d i s pr ob ab il i t y o f s ur v i v a l . T o d o

w el l , y o u n e ed t o m ax i m iz e t h e co m b i ne d

o ut c o me of b o t h d i m en si on s . M os t f ou n d er s

f oc u s o n o ne o r t h e o t h e r b u t h av e

d if f i cu lt y tr ac ki n g t h e i n t e ra ct i o n

b et w e en th e t w o. Y o u c an re t a i n m aj o r it y

c on t r ol an d g et n o fu n d i ng or yo u c a n g e t

f un d i ng a nd u l ti m a te ly r el i n qu i s h c on t r ol .

W ho y o u re li nq u i s h c on tr ol t o a nd w ha t


v a l u e th ey b ri n g t o th e ta bl e i n a d d i t io n

t o t he ir c a s h ha s a di re ct i m p a ct on th e

p ro b a bi li ty of yo u r su rv iv a l as a b us in e s s

o r i ts ow n e r . Co mb in e th e t w o an d y o u ca n

h av e a sm al l s li ce o f a f ai r l y s u b s t a nt ia l

e xi t o r a f u l l p ie of no th in g. Ca pi ta l

p ri c i ng is d r iv en by ma r k et co n d it io ns an d

y ou r a cc es s t o c a pi t a l. In a

l en d e r/ bo rr o we r, i nv es to r / e nt re p r en e u r

r el a t io ns hi p e nd g a m e, w h oe ve r h as t h e

u pp e r h an d i n ac ce ss t o c ap it al , wi n s .

( If I w a s a b e t ti n g m a n, I w i ll n o t b e t o n

t he e nt re pr e ne ur .)

f . C ap i t al , ir re sp ec ti v e o f i t s s ha pe o r

f or m , is no t fr ee . W it h c ap it al co m e s

p ar t n er s; w i t h p ar t n er s c om e q u e st i o n s o f

a ll o c at io n o f ow n e r s hi p a nd e qu it y . T h e

a ll o c at io n o c cu r s on t he b as i s o f

c on t r ib ut io n o f i mp l i e d ca p i t al — i de as ,

s er v i ce s, n e t w or k, r e l at i o ns hi ps , o r ca sh .

I n f a i le d v e n tu r e s, im p l i ed ca p i ta l i s

o ft e n n ot c o n tr i b ut ed : Id ea s a r e h e l d

b ac k , s e rv i c es ar e n o t d el i v er e d , n et w o r k s

a re l oc ke d a w ay , r el a t i on sh ip s

d is i n te gr at e , o r ca sh i nf us io ns c om e to o

l at e .

Bu si ne s s d e v e l o pm e n t— to o li t t le , t o o l a t e

Ho w d o y o u g en e r at e r e v e n u es ? B y s e l li ng t o

cu st om e r s! H o w do yo u g et c u st o m e r s ? B y m ak in g

th em a w ar e o f t h ei r n ee ds a n d t he s o lu t i o n s yo u

pr ov id e to f u l f il l th os e ne e d s.


W e lc om e to sa le s, m ar k e ti n g , an d b us i n es s

de ve lo p m en t ( “ bi z d ev ” f o r sh o r t) . W e co ul d

pr ob ab l y ge t a d a y - l on g l ec tu re on t h e nu an ce s

an d s u b tl e t ie s o f t he s e th re e t er m s fr om a

ma rk et i n g/ b i z d ev g u ru , b u t f or a s e c o nd le t’ s

as su me t ha t al l th re e ac ti v i ti e s f oc u s o n

ge ne ra t i ng r e ve n u es . T h e ti m e fr a m e w h e n

re ve nu e g e n e r a ti o n ac tu al l y oc cu rs m ay di f f e r ,

bu t t h e ul t i ma t e l o ng - t er m re s u lt w i l l b e t h e

sa me i n al l t h r ee c as es .

At A v i c en a , b iz de v ha pp en e d i n s h or t a n d

in fr eq u e nt ep i s od e s w i th l i m it ed f o ll ow -u p t ie d

in wi th t he a m ou nt o f t im e I h ad l e ft ov er w it h

ev er yt h i ng e l s e ha p p e ni ng at th e f i r m. O u r v er y

fi rs t b iz de v a c ti vi t y ha pp e n ed wh e n I to o k th e

ti me t o me et wi th th e r e c e nt ly r e ti r e d h ea d o f

a bi g f i ve a c co u n t i n g a nd c on su lt in g fi rm i n

Ap ri l 2 00 0 i n N ew Y o r k , j u s t b ef o r e g r ad ua ti on .

Th e l e ad s t ha t ca me o ut o f t ha t me e t in g

tr an sl a t ed i n t o o u r fi r s t a ng el i nv es to r of fe r

as we ll as th e i ni t i a l in f o r m a l i nd ic at io n f ro m

th e b i g f iv e fi rm t o r ep re se n t u s a s ou r

ac co un t a nt s .

Th en n o th i n g f or f o ur m o nt hs a s I we nt u n d e r

wi th te ch no l o gy , h ir i n g, op er at io na l , a n d

co nt en t c om mi t m en t s . I n A ug u s t a nd Se p t e m be r, I

to ok t h e t im e t o me e t 40 po t e nt i a l c us t o m e r s i n

Ta mp a, Ne w Y or k, Bo st on , a nd Wa s h i n g to n D . C . t o

ga ug e i nt e r es t i n o ur pr o d uc t a s w el l a s t e s t

po ss ib l e pr ic in g r a n g es b e fo r e la un ch . F ou r

ve ry s t ro n g l e a ds ca m e ou t f r om th i s tr ip b ut I

di sa pp e a re d a g ai n f or t w o mo n t h s a nd d id n ’ t

fo ll ow th r o u g h . I n O ct o b er 2 0 0 0, we di d t h e


f o rm al la u n ch a t an i n du st r y ex h i bi t i on ,

re ce iv e d an a c ce p t ab le r e s p on se , d id a l uk ew ar m

fo ll ow u p, a nd t h e n w e n t bl an k ag ai n. I n

Ja nu ar y an d F e br u a ry 2 00 1, I d i d a w h i r lw i n d

to ur o f To k y o, Du b a i, K a r ac h i , an d t h en D u b a i

ag ai n, me et in g c li en t s an d i nv e s to rs . T h i s t o u r

wa s f o ll ow ed b y t w o d ed i c at e d m on t h s of hi gh -

in te ns i t y b u s i n es s de ve lo pm e n t le g w o rk f oc us in g

on s t r at e g i c in ve st or s an d re l a t io n s hi p

pa rt ne r s . By t he t im e th e le gw o r k st a r te d

yi el di n g r e s u l t s, w e ha d sh u t d o w n .

So me wh e r e i n be t w e en , in a mo m e n t of t e mp o r ar y

in sa ni t y , I al so de ci d ed t o hi re tw o a dd it io na l

hi gh -e n d b i z de v r e so ur ce s so t h a t m y mo me nt s

of bl a n ki ng o u t co ul d b e r ec ti fi ed an d w e co ul d

re co ve r so me of t he le ad s th at we h ad lo st b y

my i n c o ns is te n t fo ll o w -u p . T o wa r d t h e v er y e nd ,

I re al iz ed t ha t a b iz d e v r e s o u rc e i s no t a

fi re -a n d -f o r g e t m is s i le . Y ou c an ’t hi r e t h e m

an d l e a v e t h e m o n th ei r o wn . T h ey wo rk b es t i n

wi re -g u i de d m od e w h e n y o u d ir ec t a n d t ra c k th e

fo cu s of t h e ir q u e ri es a nd ev a l u at e t he i r

pe rf or m a nc e b a se d o n cu s t om er f ee db ac k an d

bo tt om - l in e i m p ro v e me nt . W i th o ut t he di r e ct i o n

or t he pe r f o r ma n c e me a s u r e me nt , yo u mi g h t a s

we ll b u rn t h e ca sh yo u a re p ay in g t h e m. Th e

mi ss in g m o nt h s it to ok u s t o f in a l ly a cc e p t

th is f a ct an d t a k e c or re ct iv e a ct i o n p ut a

si za bl e de nt in t he in cu ba to r’ s li mi t e d

re so ur c e s.

Mo ra l o f t he st or y : D o b i z d e v a s s oo n a s

po ss ib l e , d o te c h n o lo g y a s l at e as p o ss ib l e ,

an d, g i ve n a c ho ic e, n e v e r r el in qu is h co n t r o l


o f b i z d e v an d ca sh -g en er a t in g a ct i v it ie s

wi th ou t a n ob je c t i ve a nd c o ns i s te nt pe r f or ma nc e

ev al ua t i on m e c h an i s m.


Yo u m a y h av e a g r e at pr od uc t, b ut wi th ou t

pa yi ng cu s t o me rs yo u a re o u t of ca s h an d o u t o f

lu ck . A n sw e r t h es e qu es ti on s fi r s t :

1. W ho a re y o u se l l in g to ?

2. W hy w il l t h e y b u y it f ro m yo u ?

3. W ha t ’ s i n i t f o r t he m?

4. W ho w il l s e l l i t ?

5. C an y ou s e l l i t ?

6. D o yo u kn ow a ny on e wh o ca n b e a re ad y

cu st om e r t o d a y ?

7. D o y ou k n o w a c us to me r wh o wi ll fu nd t h i s

fr om d a y o n e a n d b u y it w he n it ’ s r e ad y ?

Mo re q u es ti on s to po n d er be f o re di v i n g i n : Ca n

yo u f i n d a pa yi n g cu st om e r wh o w il l p ar t w i t h

ha rd c as h t o pa y fo r w ha t yo u ha ve t o o ff e r ?

Wh o w i l l f in d t he s e cu s t o me r s fo r y o u ? W il l h e

be ab l e t o s el l yo ur pr o d uc t ? W il l t he y bu y i t

fr om h i m? W it ho ut an s w e r s t o th es e q ue s t io ns ,

yo u d o n ’t ha v e a sh ot at ge n e ra t i ng re v en u e s o r

su rv iv i n g.

Ne xt q u es t i on : C an y ou re al ly ou ts o u rc e o r

tr ul y d el eg at e b us in e s s d ev e l op m e nt or fo r t h a t

ma tt er a ny o t h e r c r uc ia l fu n c ti o n ?

Wh en w as t he l as t t i m e yo u we re p ar t of a n

or ga ni z a ti o n t h at fo u n d t he ra i n m a ke r w h o wo u l d

sa ve y ou r so ul , yo ur s ta rt u p , yo u r i n ve s t me nt ,


y o ur c l ie nt s, a nd br i n g s om e s en se of sa n i t y t o

yo ur l if e ? W h en w a s t h e la st t im e s uc h a

ra in ma k e r de l i ve r e d on t he p r o mi s e o f hi s

ar ri va l ? I n r ea l l if e y o u c an ne ve r d i vo r c e

yo ur se l f f r o m th e d r iv e r s t h a t ha ve a d ir ec t

im pa ct o n y ou r i m me di at e s ur v i va l , y ou r

va lu at i o n o r th e g r o wt h o f yo ur bu s i n e ss . H ol d

on to t hi s t ho ug ht u nt il we g e t to t h e le s s on s

on l ea d e rs h i p a nd h er oe s.

My l o v e a f f a i r w it h t e c h n ol o g y – t ec hn ol og y a s

a co mp e t it i v e a dv a n ta ge

Te ch no ge e k s ar e b or n w i t h a c hi p in t h ei r

he ad s th a t f o rc e s t he m t o wo rs hi p te ch n o l og y

an d ac qu i r e t ri n k et s ir r e s pe c t iv e of n e ed o r

va lu e a dd it io n . I sh o u ld kn o w si nc e I ha v e b ee n

bu yi ng te ch n o t oy s f or t he la st 2 0 y ea rs .

Av ic en a wa s n o di f f er en t.

Du ri ng th e i ni t i a l r es ea rc h p h a se , t he t ec hn o

to y w a s Ja v a , X ML , an d J S P pa g e s. O u t st a n d i n g

te ch ni c a l t o o l s b u t a c om pl e t e wa st e of t im e

an d r e s ou r c es si n c e A S P f ro m M i c ro s o ft 54 w o ul d

ha ve p e rf o r me d j u s t as we ll w it h o n e - t en t h th e

ti me , r es o u rc e s , a nd ca p i t al w e sp e n t o n

le ar ni n g , wo r k in g , p ic k i ng u p, d eb ug gi n g , an d

de pl oy i n g J a v a . I w as al s o o n m y a n t i- M i cr os o f t

bi ng e a nd w a n t ed t o s t a y a s fa r a s p os si bl e

fr om a n y s ta nd ar ds sp r o u t ed by th e f ir m i n

Re dm on d .

54 I k n o w I w i l l b e s h o t , d i s c r e d i t e d , b u r n e d a t a s t a k e , a n d s p u r n e d f o r s a y i n g t h i s s i n c e I d i d t h e s a m e t o S a r w a r w h e n h e f i r s t s u g g e s t e d t h i s . S a r w a r a s a l w a y s , w a s r i g h t , I w a s w r o n g .


I n t h e n ex t ph a s e , Av ic e n a’ s w e b an d da t a b a s e

se rv er b ec am e t he n ex t t oy . W e ha d a cc es s to a

sh ar ed T -1 a nd d ec id ed t o pu t in a b ea st o f a

ma ch in e t ha t w e c o u ld sh o w of f t o cl i e n ts 55. I

tr ie d p ic k i ng o n e u p on eB ay bu t l os t

ma gn if i c en t l y to a fa st e r t yp i s t a c r os s t h e

st re et . Af te r t wo f ai l e d a t te m p ts a t o nl i n e

au st er i t y, I b ou g h t a l oa de d bo x wi th e no ug h

po we r t o s e r v e fi v e A vi ce na s .

I co u l d h av e go tt e n b y j us t a s w el l w it h

sp en di n g on e - f ou rt h t he am o u nt . A s i f t h i s bi t

of s t u p id i t y w as n’ t e n o u g h, I w en t o ut an d

up gr ad e d th e s er v e r t o a du al p r oc e s so r a nd a

gi ga by t e o f R AM o n an o pe ra ti n g sy s t em ( O S )

th at c ou l d o n ly s u p po r t a si ng le p ro ce s s o r 56.

Si nc e w e n ev er g o t a ro un d t o c us t o me r s i t e

vi si ts , o r u p gr a d e d th e O S o r gr e w t o f iv e

ti me s o u r o ri g i na l si ze , t he a dd i t io n a l

in ve st m e nt s a t th er e l o ok i n g pr i s t in e an d

pr et ty .

Ju st b ef or e th e e n d , th e to y b e ca m e c or p o r a t e

fu nc ti o n al i t y th a t w e d i d n’ t ne ed , di dn ’t u se ,

an d d i d n’ t g e t a ro un d t o r ol li ng o u t on th e

pr od uc t i on se rv er . B ut w e s ti ll we n t a he a d an d

bu il t it b e c au s e w e t ho u g ht i t ad dr e s se d s o me

of t h e qu e s t i o ns l ik e l y t o b e ra i s e d by ou r

co rp or a t e c u s t o me r s .

55 W h a t c l i e n t s ? 56 T h a t i s t h e p o w e r o f I n t e l ’ s a d v e r t i s i n g . M o r e i s b e t t e r e v e n i f y o u d o n ’ t h a v e t h e p a r t s t o d o t h e m o r e i s b e t t e r p a r t .


Mo ra l of t h e st or y : Wh er e i s t he va lu e

ad di ti o n of y ou r t e c h i nv es tm en t ? If y ou c a n ’ t

me as ur e i t o r a n sw e r th e q u e st i o n, do n ’t do it .

As k y o u r se lf “H ow lo n g w il l i t ta ke fo r wh at I

am b uy in g to p ay fo r it se l f ? ” “ C a n I d o i t

so on er an d c he a p er ?” “ I s t he re a ch e a p er ,

pr ef er a b ly n o - ca s h al te rn a t e? ” W hy p ay Pa c B e l l

or PT C L $ 25 0 t o se t u p a c om me rc ia l p ho n e l in e

an d th en $7 0 do ll a r s a m on t h w he n yo u c an d o

ju st a s w el l ( pe rh ap s be tt e r ) w it h a c e l l

ph on e?


Fe w p eo pl e u nd e r st a n d h o w IT c re a t es an d

de li ve r s va lu e. V e r y f e w ha ve m a st e r ed t he a r t

of r es tr ai ni n g t e c h n o lo gy p ro je ct s to r em ai n a

st at ic an d a c h ie va bl e t ar ge t v er su s t he r u na w a y

tr ai n t he y n o rm a l ly be co m e . To th is mi x ad d

bu si ne s s a n d te ch no lo gy t ea m s s p e a ki n g i n

di ff er e n t l a n g ua g e s, wo r k i n g f r o m di ff er en t

se ts of ex pe ct at io ns , a n d n o t wi l l i n g t o b ri dg e

th e gu lf b e t w ee n t h em . N ot u nd er st an d i ng th e

te ch no l o gy fa ct o r l e a ds t o un de rs ta ti n g th e

co mm it m e nt , t he c os t, t h e ti m e l i ne s , a nd th e

ef fo rt r eq u i re d t o r ei n in t he t e ch n o l og y

de mo n. Wh o s uf fe rs fr om th e i m pa ct ? D ea dl in es ,

de li ve r i es , c u st o m e r p er c e p ti o n , su rv i v al , a n d

fu tu re .


W i th t h is l i s t o f c o m p le x c o nd i t i o n s, s h o u ld n ’ t

te ch no l o gy in v es t m en ts e a r n ec on om ic r e nt s 57

r a th er th a n j us t a cc ou nt i n g p ro fi t s ? Sh ou ld n ’ t

th e di f fi c u lt ie s in ge tt i n g te c h no l og y ri g h t

re pr es e n t a s u b st a n ti al b ar r i er t o e nt r y ?

I th i n k no t 58. Y e t b u si n e s s e s ov e r em p h as iz e t h e

co nt ri b u ti o n te ch no l o gy ma ke s in b u si n e ss o r

pr od uc t s uc c e s s . An y t im e I se e a b u s in es s p la n

fo r a v en t u re t ha t u s es t e c hn ol o g y o r a

te ch no l o gy - r e l a te d f ac to r as a cr ut ch fo r a

va lu e d ri ve r o r a co m p et i t i v e ad v a n t ag e , I k no w

th e m a na ge me n t te a m h as n ot d o n e it s h om e w or k

an d ha s ta k en t he e as y wa y o u t.

Te ch no l o gy i s n o t a c om pe ti t i ve a d v an t a ge ;

in te ll e c tu a l p ro p er t y ( I P ) is . T e ch n o lo gy i s a

fa ci li t a to r , a n a c ce l e ra t o r, a re q u ir e m en t, bu t

no t a c om p e ti t i ve ad va nt ag e. Co mp et it iv e

ad va nt a g e u n- l e ve l s l e ve l p l a yi n g f i el d s . I t i s

57 A c c o u n t i n g p r o f i t s e x c l u d e t h e c o s t o f c a p i t a l b e f o r e d e t e r m i n i n g t h e p r o f i t a b i l i t y o f a v e n t u r e . E c o n o m i c p r o f i t s o r r e n t s a r e p r o f i t s c a l c u l a t e d a f t e r c o n s i d e r i n g a l l c o s t s , i n c l u d i n g t h e c o s t o f c a p i t a l . E c o n o m i c r e n t s ( f a n c y e c o n o m i c t e r m f o r p r o f i t s ) i n d i c a t e t h e e x i s t e n c e o f a c o m p e t i t i v e a d v a n t a g e . J u s t b e c a u s e t e c h n o l o g y i s d i f f i c u l t t o g e t r i g h t o r b e c a u s e e v e r y o n e d o e s t e c h n o l o g y b a d l y d o e s n o t i m p l y t h a t i t b e s t o w s s u c h a d v a n t a g e s o n i t s u s e r s . 58 S e e “ I T d o e s n ’ t m a t t e r ” ( H B R M a y 2 0 0 3 , C a r r , N i c h o l a s ) a n d “ W h a t i s S t r a t e g y ” ( H B R , P o r t e r , M i c h a e l ) . I n t h e l a t t e r P o r t e r a r g u e s t h a t O p e r a t i o n a l E x c e l l e n c e ( o n e f o r m o f w h i c h i s t e c h n o l o g y e x e c u t i o n ) i s n o l o n g e r a c o m p e t i t i v e a d v a n t a g e . C a r r u p d a t e s t h e d e b a t e i n h i s c o n t r o v e r s i a l p i e c e a n d s u g g e s t s t h a t t e c h n o l o g y i s n o w p a r t o f t h e i n f r a s t r u c t u r e d i m e n s i o n , h e n c e c o m m o n , u b i q u i t o u s a n d n o l o n g e r a c o m p e t i t i v e a d v a n t a g e


a v ai la b l e t o a s m a l l se t o f p l a y e rs a nd t h e

re st ri c t ed a c c es s r e pr e s en ts t h e ed ge . No t

ev er yo n e ca n b ui l d it , b u y i t, s t or e i t, st ea l

it , us e it , o r li c e ns e it .

Te ch no l o gy w i t ho u t I P, o n th e ot he r h a nd ,

al lo ws yo u t o do a ll of th e ab ov e ( b u il d , b uy ,

st or e, s te a l , u se , or l i c en s e ) an d l e v el s th e

pl ay in g fi e l d . I t i s an e na bl er . Wi t h o u t t h e

la te st te ch no lo g y yo u a r e ce r t a in l y at a

di sa dv a n ta g e , b u t w i t h i t y ou a r e o nl y a s g oo d

as mo st of yo ur co mp et i t o rs . N ot be tt er ,

fa st er , or ch ea pe r — ju s t a t pa r w it h t h e

be nc hm a r k.

A c o m p e ti ti ve ad va nt a g e b re a k s t he be n c h m ar k. A

su st ai n a bl e c o mp e t i t i ve a d v an t a ge e ns u r es t h a t

it s t a ys t ha t w a y fo r th e li fe o f t h e

ad va nt a g e. T a r i q 59, t h e Pa th an Gr ee k g od , m as t e r

of th e 8 0 0 m e t er s a n d 15 0 0 m et er s e ve nt s, h ad a

su st ai n a bl e c o mp e t it iv e a d va nt ag e ov er m e. N o

ma tt er ho w m u c h ef fo r t , t im e , mo ne y , or h e a rt I

th re w a t t he di ff e r e nc e, I c ou ld ne v e r m ak e i t

up . Ta ri q h a d a gi ft ; I d id n ’ t. T he t r ac k a n d

fi el d t ra i n in g w a s an e n a b le r . I n a f i el d o f

be gi nn e r s, m y tr ai n i ng s h o we d a n d I c o ul d

ou tr un a nd o u tp a c e al l o f th em ; i n a f ie ld o f

pr of es s i on a l s , I co ul d k e e p up wi th mo s t o f

th em ; i n a n e ve nt fi l l e d wi th ta l e n t ed an d

gi ft ed r un n e rs li k e T ar i q , I s t oo d n o c h a n c e .

Te ch no l o gy i s l ik e th a t —t r a ck an d fi e l d

59 S e e t h e r e f e r e n c e t o T a r i q a n d m y a t h l e t i c p a s t i n t h e c h a p t e r “ W h y F a i l u r e ? ”


t r ai ni n g i n t he 8 0 0 m e t e r s he a t at Be i j i ng ,

20 08 . I t wi l l ge t yo u t h e re ; i t wo n’ t h e lp y o u

wi n th e ra c e.

Wh at h a pp e n s wh e n yo u m i s ju d g e t he t e c hn ol o g y

di me ns i o n? F ir s t , th e as s u mp t i on t h a t

te ch no l o gy i s a c o m p et i t i v e a d v a n ta g e l ea d s t o

a m is t a ke n be l i ef th a t as l o n g a s y ou ca n bu il d

it , y o u w il l e ar n e co n o mi c r e nt s. N o t t r u e,

be ca us e , o nc e ag a i n , t e ch n o lo gy i s no t

in te ll e c tu a l pr op er t y . E v e n i f it wa s , yo u

co ul d s ti l l m is s o ut on t he ex ec ut i o n pa r t .

Mo re i s re qu i r e d t o e ar n a n y re nt s , ec on o m i c o r

ot he rw i s e, t h a n j u s t bu il di n g .

Co nf us i o n, p er f e c t i on , an d di r e ct i o n –

Ev ol ut i o na r y p ro d u ct d ev el op me nt a nd “ so l v i n g

th e wr o n g p r o b l em ” , p ro bl em

On a n ew ve n t ur e t im el in e , th e l as t t hi ng y o u

ne ed i s t o b e c on fu s e d. W e w er e n o t cl ea r ab ou t

wh at p r ob l e m w e w e r e t r y in g to so l v e o r w h a t

ou r t ar ge t ma r k et w a s. W a s it c o n t en t

ge ne ra t i on , t ec h n ol og y, pr oc es s o ut s o ur c i n g ,

co nt in u i ng p r of es si o n al e d u ca t i on , i n d i v id u a l

de ve lo p m en t n ee d s , or co rp or at e t ra i n in g

pr og ra m s ? In t he l o ng r u n we w an te d t o so l v e

al l of th es e . I n t he s ho rt ru n we sh ou ld h av e

fo cu se d on o ne , de v e l op e d a r ea s o na bl e

so lu ti o n , hi t r e ve n u e m i l es to ne s , a nd t he n

mo ve d o n t o t h e n e x t bi g pr o b le m .

In o u r in fi n i te wi sd om w e j um p e d f ro m o n e

pr ob le m to t h e n e x t i n se ar ch o f pe rf ec ti on ,

th in ki n g t ha t w e c o ul d n ’t t al k t o c u st o m er s

un ti l we ha d a n a b so l u te ly p o l is he d p r od uc t


t h at w o ul d b l ow t h em aw a y . We ju mp e d ar o u nd

fr om o n e m il e st o n e t o t h e ne xt , i n c o r p or at i n g

fe ed ba c k , s u g g es t i on s, i d e a s, an d ne w c on c e pt s

wi th ou t mo n e t i z in g th e v a lu e o f t he w or k d o n e

on p re vi ou s ed it io n s o f p ro b l e ms th a t w e h a d

al re ad y so l v e d .


Do m ar ke ts a cc ep t im pe rf e ct p ro du ct s? Y es . Th e

de ma nd cu rv e f or h i g h ly i n a c cu ra te N o rt h K o re a n

Sc ud m is si le s is a ca s e i n p o i n t. S o i s th e

ma rk et f or ba dl y wr it t e n se l f -h e l p b oo k s 60,

p i ll s wi th u n pl e a s a n t s i d e ef f e ct s, t re ad -

se pa ra t i ng ti re s , “ S t ar W a rs ” p re qu el s , an d

“S ta r Tr ek ” s eq u e ls . No t b a d p ro d u ct s, j u s t

im pe rf e c t o n e s . T he re i s a m i n i m al a c c ep t a bl e

fe at ur e s et t ha t c u s to m e rs ar e w il li ng t o w o r k

wi th . Fa il ed v en t u re s c l im b h i gh er o n t he

pe rf ec t i on c u r ve t h a n th e i r su c c es s f ul p ee r s ,

ig no ri n g f i n a n c ia l l y vi ab le p ro d u c t de ve lo pm en t

an d r o l lo u t s t ra te g i es t h a t g e t to r e ve n u e

ge ne ra t i on m o r e q u i ck ly 61.

Is p e r f ec t i on ne c e s s ar i l y a b a d t h i n g ? I t

de pe nd s i f it is e v o l u t io na r y o r n ot .

Ev ol ut i o na r y p er fe c t i on d el iv er s a ne w

ge ne ra t i on of b et te r pr o d u ct s b y b u i l d in g o n

th e wo rk d o n e w i t h e ar li er g en er at io n s wh il e

60 S u c h a s t h e o n e y o u a r e h o l d i n g i n y o u r h a n d s r i g h t n o w 61 N o c o n c r e t e a c a d e m i c e v i d e n c e b u t s e e D e a l i n g w i t h D a r w i n , G e o f f r e y A . M o o r e , P e n g u i n G r o u p , 2 0 0 5 a s w e l l a s B l o c k B u s t e r s , G a r y S L y n n a n d R i c h a r d R . R e i l l y , H a r p e r B u s i n e s s , 2 0 0 2 .


t h os e ea rl ie r ge ne r a ti o n s co nt i n ue t o p r od u c e

re ve nu e s . E ac h g e n e r a ti on pr o v i d es th e s e e d

ca pi ta l t ha t c an be r e i nv es t e d i n i mp ro vi n g t h e

ne xt r e le a s e. Th e st ra t eg y wo r k s b es t w he n

ma nu fa c t ur e r s of pr od uc ts ca n r es el l ea ch n e w

ve rs io n t o th e s a m e c us to me rs a n d c h a r ge cl os e

to fu l l pr ic e f o r i t . So ft w a re , l a p to p s , ca rs ,

te xt bo o k s, fl u e re me d i es , n e w an d i mp r o ve d d i e t

pi ll s— t h e s t r a t eg y ha s wo rk e d f o r a l l o f t he m.

No n- ev o l ut i o n a r y pe rf ec ti on i nt r o d u c es t he s am e

ch an ge s bu t s ki ps i n be t w ee n r e le as es . Wh ic h

me an s t ha t y o u i s o la te y o ur s e lf fo r l on g e r

pe ri od s f r o m yo ur c u st o m er s, t h r o wi n g a wa y a n

op po rt u n it y t o us e t he m as a b ea r i ng p o i nt .

Ca se i n p oi n t – h y dr o g en fu el c ar s v er su s

hy br id s – y o u te ll m e w h ic h o n e i s a m o r e

su cc es s f ul p r o d uc t an d wh y?

Ev ol ut i o na r y p er f e ct io n h a s sh o r t er re le as e

da te s, h i gh e r r ev e n ue s , mo re v is ib i li ty , a n d

fe we r he a d a ch es . T he fe at ur es i nt ro du c e d i n

ea ch re le as e a re a m a n ag e a b l e se t , th e r el ea se s

go m o r e s mo o t hl y , a nd c u st om er s ar e h a pp ie r

wi th p r od u c ts th a t a ct u a ll y g e t on d es ks w h i l e

th er e is st i l l a ne e d fo r th e m . N o n -

ev ol ut i o na r y p er f e ct io n t r i es to do m o r e w it h

le ss a nd w i th o u t ex ce pt io n f ai l s , of t e n

re pe at e d ly .

It w ou ld be s im p l e i f it st op p e d he r e , b ut i t

do es n’ t . R el at ed to t h i s d e b at e i s th e

pe rf ec t i on cu rv e. T he pe r f ec t i on c u rv e pl o t s

de gr ee s o f p e r fe c t io n a g a i n st e f f o rt a n d m ar ke t

ac ce pt a b il i t y . E ac h st ar t u p n e e ds t o m a ke a


c h oi ce th a t b al a n ce s a v a i l ab l e ca p i t al , m a r k e t

dy na mi c s , a n d it s s po t o n t h e p er fe ct io n c ur ve .

Th e d e c is i o n is p i ck i n g wh ic h r un g of t h e

pe rf ec t i on la dd er w il l l e a d t o m os t re v en ue s

fi rs t.

He re a r e t h e r u ng s of t he l a d de r :

Th e l e m on – A l e m on r e q ui r e s m in i m al e f f o r t

be ca us e th e p r o d u ct d o e s n ot wo rk . N o t

ac ce pt a b le t o a ny cu s t om e r . T he on ly m ar k e t i s

le mo n s al e s w it h a n a g g r e ss i v e s al es t ea m, bu t

no s u s t ai na b l e bu si n e s s mo de l. Cu st om er s

ul ti ma t e ly ge t w i s e . T h i s i s n o t a s an e o r

ra ti on a l c h o i c e b u t th e r e s ul t o f d es pe ra ti o n .

Th e j u s ti f i ca ti o n r u n s s o m et h i ng li k e th i s :

“T he s al es c y c le i s l o n g . B y th e t i m e w e h av e

to d e li ve r i t , w e w ou l d ha v e fi x e d th e

pr ob le m s ” o r “ By t h e ti me th e y f i nd o ut , w e

wo ul d h av e a s o l u t i on a n d we w i ll of fe r f r e e

up gr ad e s .” T he l e m o n i s a l as t - re s o rt ,

da re de v i l s t r at eg y u se d w h e n a v en t u re ha s

no th in g l e ft t o lo se . O n ce yo u’ r e br an d e d as a

le mo n m ak er or a l em o n ad e s t a n d, t h e r ep ut at io n

te nd s t o s t i c k .

Th e B a nd -A id – Th e pr od u c t is f un c t i o n al , h a s

mi no r p ac k a gi ng o r q ua li ty a ss ur an c e is su e s .

If t h e l em on re p r e s en ts 3 0 %– 50 % c om pl et i o n, th e

Ba nd -A i d i s c l o se r t o 80 % d o n e. I t h as t o s hi p

be ca us e t he d ea d l in e i s he re . Ba nd - Ai ds w il l

no rm al l y wo r k wi t h ge n u in e e ff o r t, ha n d -

ho ld in g , a nd e xp e c ta ti on s m a na g e me n t an d a

co mm it m e nt t o ge t t he re m a i n i ng 2 0 % d on e b ef or e

th e c l i en t g et s t i r e d a n d st ar ts lo o k in g f or a


d i ff er e n t p a i r of ha n d s t o h ol d. I n pr i nc i p le a

Ba nd -A i d i s g o od e n o ug h t o ho ld a s al e o r a

de al . I t w o n ’ t i f t h e ha nd - h ol d i ng fu n ct i o n i s

mi sm an a g ed .

Th e m o v e- i n re ad y h om e – T he o d d f au ce t t h a t

do es n’ t wo r k , t he p at ch o n th e wa lk - in c lo s e t

th at w a s ov e r lo o k ed , t he h id d e n h ol e i n t h e

ut il it y ca b i n et , th e p o we r ou t l e t wi th ou t

po we r, th e p ho n e li n e th a t g oe s n ow he re .

Pr ob le m s th a t y ou wi l l fi nd , i n o th er w or d s , i f

yo u l i v e w it h t he pr od uc t l on g e no u g h. If y o u

lo ok d e e p e n o ug h , y ou wi ll al s o f in d t ha t in 9

ou t of 10 ca s es , t he p ro du ct i n q ue s t io n i s a

se co nd - o r th ir d - ge ne r a t io n ed it io n t h a t h a s

ha d t i m e t o e v o l ve a n d i mp r o ve it s e lf ju s t l ik e

yo ur n e w l iv e d - in ho m e th at ha s b e e n a r ou n d th e

ma rk et a f e w t i me s .

Th e L e x us – Th e m in u t e y o u s te p i n s id e a L ex us ,

yo u a r e in a di f f e r en t w or ld . F ro m f in is h t o

de ta il s , th is is a b ea s t we ll w o rt h t he pr i c e

yo u ha v e p a i d f o r it . Th e f i r st t h i ng yo u

no ti ce i s th e s il e n ce . D r iv e a le ss e r v e h i c l e

on t he fr e e w a y a n d y ou w il l h ea r th e w i n d

ru sh in g b y, t h e g r i n d o f t he t i r e s, a nd t h e

cr un ch o f gr av el . T h e L e x us i s a s o u n d- p r oo f

ca bi n f r om p a r a di s e .

Re al -t i m e s o f t w ar e or a p ro du ct t ha t ha s b e e n

in s el f- i mp ro ve me n t m o d e f or m o r e ge ne ra ti o n s

th an y ou ca n co un t . Y ou se e b a by as pi ri n bu t

do y o u se e t he 3 0 y ea rs o f p ro du ct h i s t o r y

be hi nd t he 8 0 m il l i gr a m s? T he r e a re t w o ru l e s

to r em em be r w he n y o u s et o ut t o m ak e a L ex us :


Y o u ca n’ t g e t i t ri gh t o n yo ur f ir st tr y a n d

yo u c a n ’ t b u i ld i t o n y o u r ow n d im e. Th e L e xu s

is a l a bo r o f l o v e p ai d fo r by a c r o s se d c h ec k

si gn ed b y s o m e on e el se .

Op po rt u n it y c o s t o f p er fe ct i o n

Wh at o t he r f e at u r es ar e n e ed ed to m a ke y o u r

pr od uc t p er f e ct ? T he o p po r t un it y c os t o f

pe rf ec t i on i s th e c os t o f t h at fe at ur e ’ s

ad di ti o n i f it d el a y s th e pr od u c t la u n ch .

Ul ti ma t e ly , t h e i nc re me nt a l co st d ic ta te s w h a t

yo u bu i l d a n d w ha t yo u sh ip .

Yo u c a n c ho o s e t he e as y w ay o u t by a g re e i n g t o

ev er yt h i ng t h e cu s t om er h a s to sa y a nd t h e n

fi gh ti n g i t o u t i n t e rn a l ly b y t a k in g t h e “ w e

ca n’ t- g o -w r o n g - by - d oi ng -w ha t - th e - c u s to m e r- sa ys ”

de fe ns e . On t h e t e ch ni ca l si de , th e d e c is io n

is c o m p li c a te d b y t he ne ed t o co n s i d er th e

fi na nc i a l, bu si n e s s, an d s ch e d ul e i m p a c t o f

te ch ni c a l a nd fe a t u r e p e r f e ct io n. Th e b u s in es s

si de i s no t a wa r e of al l t ec h n i ca l i ss ue s, an d

th e t ec hn ic al si de fi nd s i t d i ff ic u l t t o a cc ep t

th e st ra te gi c na t u r e o f d e c is io n s t h a t di s r u p t

it s sc h e du l e o r i m p os e im po s s ib l e d e ad l i ne s.

Wh o, h o w , o r w h at d ef in es t h e m i d d l e g r o un d?

Th e M a r ke t . Of a l l th e t hi ng s t ha t y ou w o u l d

li ke t o h a v e i n y o ur of fe ri ng , y ou n ee d t o

de ci de on t he ba l a nc i n g a c t t ha t t he m a r k e t

wi ll ac ce pt —t h e mi d d l e g ro un d t ha t w il l g e t yo u


t o ma r k et ah ea d o f c om p e t it i o n a nd c l ea r i t i n

ec on om i c te rm s 62. A m ar ke t- vi si b l e , r e v en u e -

ge ne ra t i ng p r o du c t is m o r e i m p o rt an t t ha n a

Le xu s. T im in g is m or e im po r t a nt t ha n fe at ur e s .

Ge tt in g i t o u t t h e re i s m or e i mp o r ta nt t ha n

pe rf ec t i on . T es t i n g t he m e ri t o f t he id ea o n a

sm al l p il ot is mo re i m po r t a n t th a n an el ab or at e

an d ex p e ns i v e r ol l o ut .

Do n’ t g et me w r o n g . T r y sh ip pi n g a l e m on an d

yo u ar e ju st a s d e ad a s yo u we re w it h th e

Le xu s. Y ou a im f o r a s o lu t i on t ha t wo r k s

so me wh e r e b e t we en a Ba n d - A i d a n d a m o ve - i n

re ad y ho me ; th a t d o es n ’ t br ea k th e b a nk ; t h a t

bu ys y o u c u s t om e r s , ca s h , t im e, an d m o ne y ; an d

th at a l lo w s y o u to tu ck a wa y a ha nd fu l o f sm al l

wi ns t h at c a n be c a sh e d la te r wh e n y o u n ee d

th em .

Th e wi sd om o f bo rr ow ed t im e , d is t r a ct io ns , an d

sh or t c ut s – W hy di ve rs i f i ca ti o n is a fo u r -

le tt er w or d

Yo u a r e li vi ng on bo rr ow e d t im e . Ea ch da y t ha t

yo u d o n ’ t g e n er a t e c a sh is a d a y c lo se r to th e

en d.

Th e n e w- v e nt ur e l if e s t yl e b ur ns y o u o u t

pe rs on a l ly a n d f in a n ci a l ly fa s t e r t ha n an y

pr of es s i on a l r o u te k n ow n t o m an k i nd . T he ho ur s

ar e l o n ge r , t h e s t re ss h i gh e r , t he b a gg ag e

62 T h e r e i s n o i n v e n t o r y l e f t . B u y e r s e q u a l s e l l e r s .


h e av ie r , th e m on e y r ar e l y e no u g h. T h en th e

sa cr if i c es s t ar t ca ll in g . I n i t ia l l y th e

su ff er i n g i s n o ve l a n d no bl e , bu t a s i t ex te nd s

an d b e g in s t o to uc h yo u r fa m i l y on a da il y

ba si s, yo u s ta rt qu es ti o n i ng th e w i s do m o f y ou r

ch oi ce . W it hi n a fe w m o n t h s o r so , w i t ho u t a

st ab le s up p o rt s y s te m, o rd in ar y mo rt a l s br e a k

th e do o r d o w n a n d wa l k o ut . W it h a s t a bl e

su pp or t s ys te m o r w i th in hu ma n z ea l , y ou mi gh t

la st a f ew m o n t hs l on ge r.

If yo u kn ow th at a l l yo u h av e ar e a fe w m o nt hs ,

wh at i s yo ur b e s t s u r vi va l s tr at eg y ? Ge t t o th e

en d g a m e fa st e r . I s g et ti ng t o t he en d g a m e th e

sa me a s ge n e ra ti ng c as h th ro u g h an y m e an s

po ss ib l e ? C a n yo u a do p t s o m e o ne e l s e ’s e n d g am e

as y ou rs ? C a n y ou re ac h th e e n d g am e w it h on e

bi g h i t r at h e r t h a n h un d r ed s o f sm a l l o ne s ?

Th e an s w er t o a ll t hr ee q ue s t io n s i s n o .

Wh en w e ( Al e p h a n d Av ic e n a’ s t ea m) s ta r t e d

sp ea ki n g w i t h S ak ur a M i t s u i, th e a p p a re nt e n d

ga me w a s o b v i ou s . Cl os e t he S a k u ra c on tr ac t o n

th e A l e ph pl a t f or m , g e t y ou r c ut fr om th e de al ,

an d wi th th a t m on e y in t he ba n k c om e b ac k an d

pi ck u p A v i c e na wh er e y o u h a d le f t i t. Wh o

kn ow s, S ak u r a m a y e ve n th r o w a tr a i n in g

co nt ra c t ou r w ay , w e u s e d to jo ke . G i v en th e

in te ns i t y o f th e c o n ve r s at io n, A v ic e na ha d t o

be pu t on ho ld . Bu t t he b l a m e do es n’ t l ie w it h

Sa ku ra o r A l e ph . It l ay wi th m e. Ev en b ef or e

Sa ku ra Mi t s ui s h o we d u p o n th e s ce n e ,

op po rt u n it y to e a r n r e a dy c as h t h ro u g h

fr ee la n c e c o n s ul t in g or d a y t r a d i ng w o u ld t a k e

pr io ri t y o v e r c or e A vi c e na ta s k s b e c a u s e c as h


g e ne ra t i on w a s ke y. Se ll 1 0 d ay s h er e , 1 0 d ay s

th er e a nd yo u b u y y ou r s e l f o n e mo re m o nt h o f

pa yr ol l an d b i l ls .

Wh at t hi s m e a nt w a s th at t he a lr e a d y - li m i te d

bo rr ow e d t im e wa s re d u c ed b y un r e la t e d

ac ti vi t i es w h os e on ly c on t r ib ut i o n w as t o

po st po n e t he e n d g am e . T he en d g a m e is s i mp l e —

ge t t o r e ve n u es w i th yo u r v en t u re , n ot wi t h

fr ee la n c e co ns ul ti n g o r d ay tr a d i ng a n d

ce rt ai n l y n ot o n s o m eo n e el se ’s pr o j e c t. W he n

th e en d c o m e s , y o u mu s t b e a bl e to s t a nd u p o n

yo ur o wn . If y ou ar e no t wi ll in g to g iv e a

hu nd re d p er ce nt t o t he ve nt ur e, yo u s h ou l d no t

be d oi n g t h i s a t a l l.

Mo ra l of th e st or y : M ak e m on e y w it h w ha t yo u

ar e t r y in g t o d o , no t w it h s o m et hi n g el se .

Fo cu s on wh at y ou s ta rt ed do i n g an d no t

di st ra c t io n s t h at c om e y o ur w a y . Do n ’ t tr y t o

go a f t e r t he bi g g a m e un ti l y o u ar e s ui t a bl y

ar me d a n d d a n g e ro u s .


Sh ou ld yo u r ea l l y c a r e a b o u t w ha t b ri ng s

re ve nu e s in to t h e c o mp a n y? Wh y i s

di ve rs i f ic a t i o n a f ou r - le tt er w or d? B e ca u s e

di ve rs i f ic a t i o n c om e s in m a n y d is t r ac t i ng fo rm s

– no ne of w h i ch a d d a n y va lu e an d a l l o f w h ic h

so lv e a s h o r t t e r m l og is ti ca l pr ob le m c al le d

ca sh f lo w . F ro m ow ne rs d o i n g f r ee l a nc e

co ns ul t i ng o n t he si d e to pa y b il l s , t o ve nd or s

ge tt in g i nt o a nc i l la r y se r v ic es to c l os e

co nt ra c t s, n e w ve n t ur e s g et i n t o a re a s t ha t

ta ke t h em f a r th e r fr om t he pa t h t h ey w e r e


e x pe ct e d to fo ll ow . A s G e o ff r ey M o o r e 63 p u ts i t ,

to su cc ee d y ou mu st fi rs t u n d e rs t a nd th e

di ff er e n ce be tw ee n co re a n d c o n t ex t a n d t he n

fo cu s o n t h e c o re .

Mo de ls th a t wo r k ar e t ho s e th at s t ar t w it h

pr od uc t s an d st ay on t ra ck u n ti l t h e y hi t

su st ai n a bl e gr ow th . P r od uc t Re v e n ue

Pr of it s G ro w th S u st a i na b l e Gr o w t h. W h e n

di ve rs i f ic a t i o n i s us e d t o g en e r at e r ev en u e s

ea rl ie r , th e m od e l d i s t or t s t o R ev e n ue

Gr ow th P ro du ct P ro f i t s S u st a i na bl e

Gr ow th or ot he r v ar i a t io ns th at pu sh th e

pr od uc t fu r t h e r d o w n th e ro a d .

Th e g a m e i s no t ju st a b ou t r e v en ue s . I t i s

ab ou t su cc ee d i ng i n th e l in e of b us in es s yo u

ha ve c h os e n an d m a k i ng a v ia bl e v en t u re ou t o f

it . To d o th at y ou h av e to g et t o Pr od uc t an d

Pr of it a b il i t y b ef or e yo u r un o ut o f c ap it al .

Di ve rs i f ic a t i o n l e a ds y o u a w a y f r o m t h a t

mi ss io n .

Hi tt in g it b i g – T h e pa ra do x of l a r g e c u st om er s

Is t h e re an y co rr e l at i o n be tw e e n t a r g et i n g

la rg e c us t o me rs , ex ec u t i ng l ar ge o r de r s , a n d

ne w v en t u r e f a i l u re ? I b el ie ve so . N e w

ve nt ur e s , w i t h ra re ex c e p t io n , la ck t h e d e p t h

to h a n dl e l a r ge a s s ig n m en ts a n d co n t r ac ts .

Wi th ou t s uf fi c i en t d e p th , n e w ve nt u r es ma k e ba d

sh or t- t e rm ca ll s on pr ic i n g, d e l i ve ry t er m s ,

63 C r o s s i n g t h e C h a s m , G e o f f r e y A . M o o r e , H a r p e r B u s i n e s s , 2 0 0 2


h i ri ng , c on ce s s io ns , a nd s e rv i c e- le v e l

ag re em e n ts th at p u t th e m on t ra c k f o r e ve nt ua l

fa il ur e .

It ’s a b ou t e v ol u t io n. Su c c es s i s bu i l t o n a

co ll ec t i on o f s ma l l w in s , n ot b ig h i t s. Sm a l l

wi ns a ll ow y o u to bu il d cr ed i b il i t y, r ef i n e

yo ur p ro du ct , te s t a nd fi x yo ur p ro ce ss es i n

sa fe m od e. A l a rg e cu st o m er b a s e wi t h s ma l l er

or de rs p r ov i d es v a l id a t i o n f or y ou r b us in e s s

ca se a n d t h e ba s e fr o m w hi ch yo u ca n g r o w

hi gh er .

Al th ou g h t h e n um b e rs l oo k g o od o n p a p e r , b i g

pr oj ec t s c h a l l en g e an d s t r et c h ev e r y di me ns i o n

in a s t a r t u p— r e so ur ce s, pr o c e s s es , s ta m i na ,

de pt h, e x e c u t io n , a nd c a p a ci ty . Wh e n y ou ar e

do ne , st re tc h ma r k s an d b lo a t i ng ar e n o t t h e

on ly s i d e e f f e c ts .

Bi g d e a ls al so i m p l y d oi ng b u s i ne s s wi th a

la rg e o rg a n i z a ti o n , a nd la r g e o r g a n i za t i on s

li ke c er t a i n t y an d pe r m an e n ce a n d di sl ik e

mi st ak e s . T h e y m a y fa v o r e a r th - s ha tt er i n g

te ch no l o gi e s bu t t he y a ls o p re f e r m a t ur e

co mp an i e s o r at l ea st m a tu r e m an a g em en t . T h e

bu rd en o f pr oo f i n th e s e in s t a n ce s l i es w i t h

th e u p s ta r t wh o i nt r o d uc ed th e s ta rt up or th e

up st ar t ru n n i n g , m a n a gi ng , an d s e ll i n g fo r t h e

st ar tu p . W h e n th i s c re d i b i l it y d o es n o t e x i s t ,


t h e v en tu re en ds up n e go t i a t i ng f r o m a p os it io n

of w ea k n es s 64.

Th e s e ar ch f or go d s a nd g en e r al s – Le ad e r s hi p

an d Gr e c o- R om a n t r a ge di es .

I be l i ev e d t ha t we n ee d e d h i g h- p o te nc y

le ad er s h ip fr om d a y on e fo r u s to a t tr a c t

ta le nt , m o ne y , an d c u s to m e r s . I w as wr o n g . W e

wa st ed m an y ho ur s an d e x p e ns iv e i n te r n at i o na l

ai r t i m e (f o u r -f ig u r e M C I W or l d Ca ll ph on e

bi ll s du ri ng mo n t h s o f re cr u i tm e n t e f fo r t )

in te rv i e wi n g a nd c o n vi n c in g ca n d id at es i n th e

U. S. a n d e l s e wh e r e t o t a lk t o u s, w he n w e

sh ou ld ha ve be en sp en di n g t h e sa m e ti me ch as in g

cu st om e r s.

To be f a ir , t h i s be l i ef wa s p ri m a ri ly d ri v e n b y

th e fa ct th a t I wa s c l ue le ss a b ou t o n e o f th e

mo st e ss e n t ia l sk il ls r e q u ir e d o f a b us i n es s

ow ne r: k no w i ng h o w t o at tr ac t an d c o nv e r t

cu st om e r s to c a sh . W e h ad m o n ey in th e ba n k an d

I k n e w h ow to b u i l d t e c hn ol og y b ut g e tt in g

st ra ng e r s t o g iv e m e la rg e s u m s o f mo ne y t o

so lv e t he i r e du c a ti on pr o b le m s w as so me th i n g

al ie n. I d i d n ’ t k n o w wh er e t o b e g i n .

In my p ri o r co n s u lt in g e xp e r ie n ce , l e a d

ge ne ra t i on h a d be en O m er ’ s 65 d om a in . A ll I d id ,

64 I f y o u s t i l l e n d u p t a k i n g o n b i g g e r c u s t o m e r s a n d n e e d h e l p w i t h n e g o t i a t i o n s k i l l s , t h e a b s o l u t e l y b e s t b o o k o n t h e s u b j e c t e v e r w r i t t e n i s J i m C a m p ’ s S t a r t w i t h N o , C r o w n B u s i n e s s , 2 0 0 2 . 65 O m e r r u n s S i d a t H y d e r M o r s h e d A s s o c i a t e s ( S H M A ) . I t i s n o w o n e o f t h e l e a d i n g f i n a n c i a l , c a p a c i t y


r e al ly , wa s t ak e a l re a d y p r e- s o ld ( b y Om e r )

cu st om e r s a n d co n v er t th em in to la rg e

co ns ul t i ng en g a ge m e nt s a n d lo ya l c li en ts . O me r

op en ed t he do or s, I di d my te ch n ol og y- gu r u -

sl as h- w u nd e r k i n d s h o w, a n d Om e r c lo s e d th e

de al . A t A v i c e na , t h e l e a d g en e r a t i on , p r o sp e c t

co nv er s i on , a n d s a l es c l o su re p ie ce h ad t o b e

bu il t, bu t I al wa y s as su m ed th at we co ul d h ir e

so me on e a nd m a ke it h i s p r ob l e m , no t m in e. I

wa s wr on g ag ai n. I n on e se n s e , th e “g e t -

le ad er s h ip - i n - p la c e -b ef or e- i t ’s - r e a l ly - n ee de d”

mi nd se t w as a s i m p l e e xt en si on of t h e g et -

fu nd in g m in d s e t a nd i t ha d a si mi l a r r e su l t ; i t

di st ra c t ed u s f ro m t he on ly c o n s ti t u e n t wo rt h

ou r fo c u s— t he c us t o me r.

He re i s ho w t he rh et or ic we nt . L ea de rs h i p i s

ab ou t ho ld in g y ou r ow n a n d yo u r t ea m to g e t he r

in g o o d t i m e s as w e ll as b ad . L ea d e rs hi p i s

ab ou t di ff ic u l t ch o i ce s , s el f - s ac r i fi ce , a n d

th e co ur ag e t o st a n d o ut a nd m a ke a ca ll w he n

ev er yo n e e l s e i n th e ro o m h as c ho se n si l e n ce .

Le ad er s h ip is ab o u t l i s t e n in g a nd a c c e pt i n g

th at m od if yi n g b eh a v io r o r c ha n g in g d ir e c t io n

is a s i gn o f ad a p ta bi li t y a nd st re n g th , n o t

we ak ne s s .

He nc e to do a ll o f t he a bo ve w e n ee d le ad e r s

wi th na me re co gn it io n i n p l a c e, a n d t he so on er ,

th e b e t te r. T h e qu es t i on th a t I w as su pp o s e d t o

as k b ut d id n ’ t : “ If yo u a re t he o n ly pe r s o n i n

d e v e l o p m e n t , a c t u a r i a l , a n d t e c h n o l o g y c o n s u l t i n g s h o p s i n P a k i s t a n .


t h e r o o m, do y o u s t il l n ee d l e a de r s hi p t o d o

al l of t he a bo v e ? Wh y ca n ’ t y ou d o it b y

yo ur se l f ?”

Pe rc ep t i on i s th at m or e ne w ve nt u r es f a i l

be ca us e of l e a de r s hi p is su es a t t he t o p t h a n

be ca us e o f a ny o t he r r ea s o n. In t e re st in g

en ou gh , th e c o nv e r se i s n o t t r u e . T h e y do n ’ t

su cc ee d b ec a u se o f le a de rs hi p . In a n ew -

ve nt ur e s et t i n g , wi t h ju st a f ew mo ut h s t o f ee d

an d re du c i n g tr a v e l t i m e t o p r of i t ab il i t y a s

th e ul t im a t e go al , l ea de rs hi p is in c i de n t a l ,

ma rg in a l , a nd s om et im e s i r re l e va nt . O n c e y o u

gr ow be y o nd a f e w m o u th s , ac h i ev e

pr of it a b il i t y , an d ca n b e lo o ke d at a s a n

or ga ni z a ti o n , th e v al u e - a d di n g po te nt i al an d

co nt ri b u ti o n o f l e a d e rs hi p in c r e a se s . B ut i n a

ga ra ge wi th a h an d f ul of so u ls , y ou do n’ t n ee d

le ad er s 66; y o u ne ed do er s, fo ll ow er s , a n d

ma na ge r s . B u t th en yo u h av e n ’ t s ee n t he on ly -

ha ve -l e a de r s - i n -p l a ce ph en om en on — se ve n c hi e f s

of x t i t le i n a s e v en -m an o r g an i z a t i on .

Mo ra l o f t h e s t or y :

Bu il d a bu si n e s s f ir s t , a nd th en g o lo ok i n g fo r

le ad er s h ip .


Jo hn W h it n e y, th e t ur n a r o u nd sp ec ia li s t an d

ma na ge m e nt p r of e s so r a t C ol u m bi a B us i n e s s

Sc ho ol , d id an in te re s t i ng , in w a r d- l o ok in g

66 S e e B o o t S t r a p F i n a n c e , T h e A r t o f S t a r t u p , A m a r B h i d e , H B R o n E n t r e p r e n e u r s h i p , 1 9 9 9


e x er ci s e i n h is “ In S ea r c h o f a P e rf e c t

Pr in ce 67” c ou rs e . He as ke d s tu de nt s t o l o o k b a c k

at t h e i r l iv es a n d pi c k on e i n s ta n c e e ac h o f

wh en t h ey w e r e a f o ll o w er , a m a n a ge r, a nd a

le ad er . T he ob je ct i v e w as to te ac h t h a t m or e

im po rt a n t t h a n be in g a le ad e r is th e a b il i t y t o

re co gn i z e t ha t al l le a d e r s s om et im es h av e t o

be co me fo l l o w e rs a n d m an ag er s. Th ei r ab il it y

to h a n dl e t h is tr a n sf o r ma ti on i s a me as u r e o f

th ei r e f fe c t i v e ne s s a s a pr o f es s i o n a l.

I a m n o t de n y i n g th a t le ad e r sh ip h a s a n i m pa ct .

If yo u a r e d es t i ne d t o fa il , b ad l e ad e r s hi p

wi ll g et y o u th e r e q ui ck ly . Gr ea t le ad e r s hi p

wi ll m ak e f o r a n i n te r e st i n g, ed u c a t i on al ,

in si gh t f ul , e nt er ta i n in g , l on g e r, em o t i o na l l y

mo vi ng , an d p e rs o n a l l y r e w a rd i n g ri d e , bu t t h e

fi na l d e st i n a t i on r em ai ns t h e s a m e .

Th e p o i nt go e s b ac k t o c om pe ti t i ve a d v an t a ge .

Wi th a gr e a t c o m p et it i v e a d v an t ag e , b a d

le ad er s h ip w i ll b e a h a n d i c ap b ut n o t

ne ce ss a r il y f at a l . Wi t h o ut a co mp et it iv e

ad va nt a g e, gr e a t l ea d e rs h i p wi l l b e i n ef f e ct iv e

ch em o a ga i n st a t um or ca u gh t o n t ap e t oo la te .

Le ad er s h ip i s th e b oo g ey m a n , th e X -f ac to r t ha t

we bl a m e th in g s on wh en w e d on ’t k n ow wh a t e ls e

to bl a m e. I f y ou di g d e ep e n ou gh , y ou sh o u l d b e

ab le t o bl a m e i t o n c om pe ti t i ve d i s a dv a n ta ge .

67 A l s o s e e P o w e r P l a y s , J o h n O . W h i t n e y a n d T i n a P a c k e r , S i m o n & S h u s t e r , 2 0 0 0


C l os el y r el a t ed to t he co nc ep t o f m ar gi na l

le ad er s h ip i s h er o wo rs hi p.

Wh er e d o he r o es c o me fr o m ? Fr o m ow n e rs ’ a n d

in ve st o r s’ o p t im i s m an d i n se c u ri ty t h a t th e r e

mu st b e a c le an so lu ti on to th e p ro b l em s t h e y

ar e fa ci ng t h at t h e y c an ’t s ee – an d s om e on e

el se ca n . H er o e s c o m e in a b e wi ld e r in g

co mb in a t io n o f ma ke s, m od e l s, c o lo rs , a n d

up gr ad e s . T he y c a n b e f ou nd i n v en d o rs (p l e a s e

ta ke c a re of m y t e c hn o l og y i s s u e s) , e m pl o y ee s

(y ou a re r e sp o n si bl e f o r t h i s fu nc ti o n ,

ri gh t? ) , b oa r d me m b er s ( I am re al l y h op i n g

th at y o u c ou ld op e n so m e o f t h e se lo ck ed d o or s

fo r m e t hr ou g h y ou r n e t w o rk ) , pe rs on a l d e m o n s

(I h av e f ai l e d be f o re , I a m n o t g oi n g to f ai l

ag ai n) , le nd e r s ( a f te r r u nn in g so mu c h c as h

th ro ug h t hi s a cc o u nt , I am su re yo u w i l l h a v e

no p r o bl em s ex t e n di ng t h a t li n e o f cr ed i t f o r

me ), s t ra te gi c pa rt n e rs (I c a n s ee th e fi t f ro m

a m i l e a wa y, a r e y o u b li nd ?) , f ri e n ds (I wa s

co un ti n g o n t ha t c o nt r a ct ), a n d fa mi l y ( yo u

sa id t ha t y o u w ou l d be a r w it h m e fo r t he n ex t

th re e y ea rs u n t il we ge t t h i s r ig h t —w ha t d o yo u

me an y o u c a n ’ t ta k e t hi s an y m or e ? ) .

Th er e is n o li fe a ft er S ha ke sp e a r ea n tr ag ed i e s

be ca us e t he re i s n o s il ve r bu ll e t f o r s uc ce ss .

He ro is m i s no t p or t a bl e, s c al ab le , su s ta i n ab l e ,

or pr o f it a b le . R ea l i ty is th at if yo u h ir e a n

in di vi d u al wh o y o u th in k w il l d o a g o o d j ob ,

th er e is a n ev e n c ha nc e th at h e w i ll d o a

re as on a b le j o b b y h i s s ta nd a r d s b ut a c ra pp y

on e b y yo u r s. A s an ow ne r, f o u nd e r , an d

in ve st o r , yo u e xp e c t t he m t o d e li v e r o n t h e


v i si on ( so me ti me s ar ti cu l a te d , s om e t im es n o t )

th at y o u h a v e la in be f o r e y o u r s e lf ; re al it y i s

th at t h e y m a y o r m a y no t ge t it a t a ll .

Wh y d o h er oe s f a i l ? T h e y d on ’t kn o w wh er e t o

be gi n, th ey wa it t o o l on g , t he y c ar r y to o m uc h

ex ce ss ba gg ag e, th e y d o t o o li t t le , t he y

co mp ro m i se t o o mu c h , a nd t he y o ft e n fa il t o

no ti ce su bt le tr an si t i on s t h a t c ha n g e t he po w e r

st ru ct u r e ar o u nd t h e m. H e ro es f ai l b e ca us e

or ga ni z a ti o n s an d i ns ti tu ti on s su c c e e d o nl y

wh en t he y g ro w b e yo nd pe rs on al i ti es a n d

in di vi d u al s ; by de fi ni t io n, “ h er o” im p l ie s

re li an c e on a o ne -m an ar m y . I f t ha t f it s w i t h

wh o y o u a re , yo u m a y as we ll g o ho m e n o w a n d

cu t yo u r l o s s e s .

Cl os ur e

Al l c o st s co ns id e r e d, A vi c e na c os t it s

st ak eh o l de r s a ne at U S $8 2 0 , 0 00 68. O f t hi s c as h

co st s ( in cu rr e d in ca s h, n o t a cc r u e d ) r a n ab ou t

on e- fo u r th o f t he o ve ra ll t a b .

Th e f i n an c i al co s t wa s ju st on e d im en si on . O n

th e c r ed ib il i t y f r o nt , S a rw ar a nd I b ot h t o o k

bi g hi ts , h e wi th h is te am a t Al ep h, me w i t h

my se lf , my f a m i ly , Sa rw ar a n d m y i n v es t o rs .

68A p p r o x i m a t e l y $ 2 0 0 , 0 0 0 i n c a s h – d e b t a n d e q u i t y c o m b i n e d . 2 8 % i n s e r v i c e s c o n t r i b u t e d b y A l e p h a n d t h e r e s t a s s w e a t e q u i t y - u n d r a w n s a l a r i e s b y f o u n d e r s a n d e m p l o y e e s . O f t h e c a s h c o m p o n e n t , $ 8 0 , 0 0 0 w a s c o n t r i b u t e d b y F a w z i a a n d m e o v e r t h r e e y e a r s , t h e r e s t b y i n v e s t o r s a n d A l e p h . D e s p i t e t h e M B A , b e c a u s e o f l a x a c c o u n t i n g p r a c t i c e s , o n l y h a l f o f t h i s a m o u n t w a s d e d u c t i b l e f o r t a x p u r p o s e s .


O n a p e rs on al fr on t, i t w a s li ke a de at h i n th e

fa mi ly . A re la te d s id e e f fe c t wa s t h a t S ar w a r

an d m y r el at i o ns h i p w it h e re d a w a y . So m e t h in g w e

ha d fe ar ed f ro m d a y o n e b ut t h o ug h t w ou l d n’ t

ha pp en , ha p p e n ed . I t h ea de d so ut h af te r ou r

an gr y e ma i l e xc h a n g e s a n d n ev er re c o v e re d . T o

be f a i r , a s Sa r w a r sa i d , t he b u rd e n la y w i t h

me . D u r in g o ur f i n al ex ch an g e on Av ic en a i n

ea rl y Ju ne 2 0 0 1, h e w ro t e a fe w li ne s t ha t I

ha ve m a de a p oi n t of re a d in g o nc e e v e ry ye a r .

In h is w or d s :

“My problem was and remains a huge burden of disappointment, not

because of Avicena, money, investment, losses etc. I had a business

relationship with you, independent of anything else and anyone else… It

was a relationship based on love, faith, and blind trust. The minimum

expectation of that relationship for me was an open line of communication,

in which you would talk to me all the time and discuss your thoughts, ideas,

and fears, just as you had once discussed plans and ambitions. First of all,

whatever you were doing or going to do, should have been shared with me,

consulted, talked, and more. I should not have been "informed", post facto,

and certainly not the way I was. All it said to me was that I was no longer

relevant, the folks who had worked with you, trusted you, lined up behind

you, were no longer relevant, and if they were being adversely affected it

was just too bad. No one, least of all me would have wanted or would want

your family to suffer or be on the street God forbid.”

“The second thing that was extremely important was that you should have

informed me about your decision making processes as far as business goes,

on day one, regardless of what they were. If your decisions were going to be

guided by Fawzia, your parents, a mentor, an istekhara, or anything else, I

should have been alerted to all of these on day one. I object to none of

them, but if they were to affect me and the people lining up behind you, it


should have been shared. I have already come to terms with all of this, and

in some way have adjusted. These are the only two matters that troubled

me. Nothing else. I do not think you owe me anything at all anymore. I

have no quarrel with your decision or even with your reasoning. My only

grief comes from the way you handled me.”

We ha v e n’ t m e t o r s po ke n s i n ce ou r l as t m e et in g

in Or a n ge C o u nt y , be fo re my f am il y m ov e d to

Vi rg in i a o n 1 0 t h S e p te mb er 2 00 1 69. I s u s pe ct i t

is n e i t he r i n te n t i o n al n o r by d e si g n . We wo ul d

ju st f i nd i t t oo pa i n fu l to fa ce e a ch ot h e r an d

re me mb e r w ha t w e ha d i n o u r h an ds a nd wh at w e

lo st . O ff i c i a l ly w e ha ve b ee n b us y ; me w it h

Al ch em y , h i m wi th r e su r r ec ti ng A l ep h f r om th e

te ch no l o gy d o w n tu r n t ha t fo l l ow e d 9 / 11 .

Po st A v ic e n a I h a v e be c o me an e ve n f ir me r

be li ev e r in de st i n y , s et t l in g b il ls at th e l as t

mi nu te (v en do r an d s up pl ie r c re di t ) , c ol l e ct i n g

in vo ic e s a s s oo n as p os s i bl e (c a sh f l o w

ma na ge m e nt ) t a ki n g t im e - ou ts ( fa mi ly ), l iv i n g

wi th in my m e a n s (b u d ge t s ), pa y i ng f o r

pe rf or m a nc e a n d ta l e nt ( f e lt f a i r pa y 70) , be i n g

fl ex ib l e ar ou nd d e a d l in es (i d e s o f l au nc h) ,

sh ar in g in f o r m a ti o n ( ma na gi n g e xp e c t at i o ns ) an d

no t fu n di n g f ut u r e v en tu re s wi th cr e d it - c a r d

de bt ( g o od b y e to t ea se r ra t e s a n d 0 % A P Rs ).

69 A n o t h e r b o o k ? 70 E l l i o t J a q u e s , R e q u i s i t e O r g a n i z a t i o n . S e e C r a d d o c k , K e n n e t h , R O B i b l i o , T h i r d E d i t i o n h t t p : / / w w w . c a n a d i a n c e n t r e . c o m / e j b i b l i o / e j b i b l i o . h t m # b i o


W h at A v ic e n a an d S ar wa r t og e t he r t a u g h t m e wa s

no t s o m et hi ng t ha t y o u co ul d p ic k u p a t s c ho ol ,

in t he g re en ho us e in cu ba t or c ou rs e, b y re ad in g

or w ri ti ng a bo ok , or an yw h e r e e ls e. I t w a s

no t e x a ct l y s ch o o l o f h a r d k n o c k s si nc e S a r wa r

be li ev e d it wa s n ot ha rd kn oc ks ti ll yo u w e r e

ph ys ic a l ly l i v i ng o ff t h e s tr e e t (h e me a n t i t

in a g o od wa y) . It a d de d o n e m or e d im e n s i o n t o

my d ef i n it i o n o f w h o I am .

Pr ic el e s s or ex pe ns iv e? O nl y t he n e x t

ad ve nt u r e w i l l te l l .

THE END.


Epilogue - Reboot

Working Mothers, Actuaries and Basel II: Alchemy Associates at MEFTEC ‘06

10th February 2006

Imagine: a. A group of working mothers with kids and highly coveted degrees in computer science from top notch local schools looking for challenging work and flexi timings b. A non traditional actuarial consulting firm c. A regulatory standard built around risk management practices for an industry that uses mathematics as old as time d. Beach chairs, loyal customers and a Nobel Prize winning differential equation e. Foreign competition with cutting edge technology, unlimited marketing budgets and an already established international track record Take (a) to (d), throw them in a salad bowl called Alchemy and pit it against the multinational players with unlimited budget in (e). Sounds like a cross between Erin Brockovich and a Disney movie playing the underdog against big bad corporate giants. You know, you have seen the movie; in a nail biting finish the under dog wins. But is that so in real life? Read on… Jawwad Ahmed Farid headed back home to Pakistan from Northern Virginia, in January 2003, with a desire to do something that was different and meaningful and yet went against conventional wisdom. An actuary by profession with an MBA from a Columbia Business School, Jawwad’s meaningful version 1.0 was a traditional actuarial practice with a twist. Its first actuarial valuation engine, the core of the practice, was not written by an actuary or an actuarial student but a part time working mother. Erum Khalid, employee number one, with a bachelors and masters in computer science from Pakistan’s top rated and well respected FAST Institute of Computer Science, worked a couple of hours every day while her children went to school. Their first office was a beach chair and a laptop; their first assignment – review of capital adequacy rules for a financial services free zone in the Middle East. The firm that rose from such a humble beginning, three short years later, employs 23 professionals, 6 of them women, 4 of them working mothers; counts 35 of the 50 odd financial institutions in Pakistan amongst its customers including the Pakistani central bank, the largest life insurance company, the largest bank treasury and the largest brokerage house; implements a home grown, cutting edge Basel II solution for Market, Credit and Operational risk that has won multiple industry awards; and stands tall, shoulder to shoulder with competition that has a few hundred million dollars more in market capitalization and balance sheet foot print. “When we first started thinking about what we stood for as a firm”, says Mujtaba Iqbal, Director of the Enterprise Analytics practice, “We agreed that we had to make a difference in both our client and our employees’ lives. Not one before the other but a balance that ensured that our people


and our customers did not have the same issue we had in our earlier careers. It has not been easy holding true to that vision but if there is one thing that has helped us get where we are, it is that balance.” The most common term used by employees to describe the team – fun to work with. The most common words used by the same group to describe the nature of our work – fast paced, invigorating, on the edge. Noor Ali, Analyst and Project Manager describes working at Alchemy as “An ever evolving strategy game, where every triumph is rewarded by an even bigger challenge” What about customers? The one word customers use to describe Alchemy - Partner. Commenting on this choice, Jawwad Farid, Chief Executive and Director responsible for the Enterprise Risk and Basel II practice says, “We know what we went through when we had to decipher the Black Scholes equation. We take great pains to spare our customers that agony. Having said that, the process and the underlying equation are essential to how Risk Management works. We spend a lot of quality time with our users ensuring that they understand not only how to use the system but also how to break it. When we break it together, it’s the customers who come up with fixes and suggestions first. It is their solution; they own it as much as we do.” After exhibiting at GITEX in September ’05 and the Pakistan Single Country exhibition in Malaysia in October ’05, Alchemy will now be exhibiting its flagship Enterprise Risk product, Alchemy Risk Manager at MEFTEC ’06 from 13th February to 15th February 2006 at the Pakistan Pavilion (EC-03). For more details on this release, the firm or our work, please contact: Jawwad Farid/Uzma Salahuddin 103 – 104 Amber Estate, Main Shahrae-Faisal Karachi, 75350, Pakistan www.alchemya.com [email protected] [email protected] Alchemy picks up first prize at PASHA ICT Awards for Alchemy Risk Manager 06 December 2005, Karachi. Alchemy Technologies today announced that it won the best financial application award today at the PASHA ICT Awards 2005. Judged by an independent panel of technology and business professionals, the winners of the PASHA ICT Awards will now go on and represent Pakistan at Asia Pacific ICT Awards in Thailand in February 2006. PASHA (Pakistan Software Houses Association) was formed with a mind to promote and develop the fast growing software and services industry in Pakistan, and to provide them with national and international exposure, and recognition. The PASHA ICT Awards serve to recognize and promote locally developed software applications and services. The applications are judged in terms of creativity, innovation and excellence. Participants include leading software houses, technology shops, ISVs and consulting firms in Pakistan. Alchemy Risk Manager is a Basel II compliant market, credit and operational risk management solution targeted at Risk Management groups within financial service institutions. The solution is under implementation at two client sites within Pakistan, and has already picked up other prestigious technology awards and nominations in the business and professional categories earlier this year.


Jawwad Farid, Chief Executive at Alchemy, on the occasion said, “A good product has a great number of contributors and our thanks go out to our team members, customers, user groups, well wishers and industry sponsors who have all played a key role in helping us get where we are today. The PASHA ICT Award is an honour and testament to the hard work that has been put into this product over the last three years by all of us.” -end-

Alchemy signs up Union Bank for Basel II and Alchemy Risk Manager Implementation

25th October 2005 Karachi, Pakistan - Alchemy Associates / Alchemy Technologies signed up with Union Bank today for the implementation of Alchemy Risk Manager as a middle office solution. Jawwad Farid, Chief Executive & Actuary at Alchemy Technologies commenting on the signing said, “In a market like Pakistan building traction in the relatively nascent field of risk management is only possible with the continuous support of our customers and our dedicated and talented team. This is as much a win for them as it is for us.” Union Bank is a 1.5 billion dollar bank that has been providing financial services since 1991, with 42 branches in 19 cities and a correspondent banking network of over 300 banks in 85 countries. -end-

PSEB selects Alchemy for GITEX and Pakistan Single Country Exhibition in Malaysia.

30th August 2005, Karachi, Pakistan. Alchemy Technologies / Associates today announced that it has been chosen by PSEB (Pakistan Software Export Board – www.pseb.org.pk), along side 12 other companies, to demonstrate the group’s signature product, Alchemy Risk Manager, at GITEX. Alchemy Risk Manager is a Basel II compliant market, credit and operational risk management solution offering additional features such as treasury and risk adjusted return calculators, derivative pricing engine, derivative risk management module, interest rate simulation models, Value at risk estimators, portfolio benchmarking and back testing tool kits.

Jawwad Farid, Chief Executive & Actuary at Alchemy said “After completion of our recent implementation and industry award, selection for GITEX and the Single country exhibition in Malaysia is yet another validation milestone for our product and technology. It is also a first step at exploring the Middle Eastern Risk Management solutions market”.

GITEX is the largest international IT exhibition of its kind held in the Middle East that will be held in Dubai from September 25th to September 29th, at the Dubai World Trade Centre. You can visit the GITEX website at www.gitex.com.

-end-


Alchemy Risk Manager Goes Live at MCB

21st August 2005, Karachi, Pakistan. Alchemy associates today announced that its Alchemy Risk Manager implementation went live at MCB on August 20th, 2005. MCB signed up Alchemy Associates for a review of Middle Office function and implementation of Alchemy Risk Manager on May 11th, 2005. Alchemy delivered 4 incremental releases starting 10th June 2005 and went live within 3 months of contract signing.

Jawwad Farid, Chief Executive of Alchemy Associates, commented on the event. “I believe with MCB’s continuing and ongoing support we have a delivered a solution meeting international standards and flexible enough to handle eccentricities embedded in domestic and regional markets. This is one more important milestone for us in a relationship with one of our most valued customers. MCB has always been on the forefront of technology and system initiators and have stayed true to that legacy in choosing Alchemy as their Middle Office provider”.

MCB Bank Limited (formerly Muslim Commercial Bank Limited) with a balance sheet foot print approaching 5 billion dollars has been providing banking services in Pakistan for over 50 years, with above 900 branches, 750 of which are automated.

-end-

Alchemy Wins First Prize at Software Competition held by KRL 26th July 2005, Karachi, Pakistan. Alchemy associates today won first prize in the commercial and professional software category at the All Pakistan Software Competition and Exhibition organised by Khuta Research Laboratories. The competition commenced on July 23, 2005 and concluded on July 25, 2005. It was divided into three categories: professional and commercial category, student category and, the under-16 category. Alchemy presented its flagship product, the Alchemy Risk Manager, and picked the first prize amongst 12 other participating firms. The All Pakistan Software Competition & Exhibition (SC&E) is a more than 15 year old industry exhibition that show cases locally developed solutions, judged by a blue ribbon panel of academic and industry representatives. Awais Ahmed Khan Leghari, Federal Minister for Information Technology, was present at the prize distribution ceremony, where he addressed the gathering and distributed prizes amongst the winners. He remarked that the aim is to “bring the best out of the best and our country has scores of high-calibre professionals capable of developing and producing world-class IT products and services.” -end-

Alchemy launches ALCHEMY RISK MANAGER Product line.

28th November 2004, Karachi, Pakistan - Alchemy Associates has launched a new technology solution aimed at financial risk management groups in domestic and regional banks.


Alchemy Risk Manager allows senior, middle & functional executives to track and monitor volatility by highlighting, monitoring and reporting portfolio & balance sheet risk profiles on a daily basis. This application has been specifically developed specially for regional countries with illiquid secondary debt and equity markets facing sparse data problems, modeling issues and regulatory requirements. The solution conforms to both the State Bank of Pakistan and Basel II regulatory requirements with cutting edge enterprise risk management paradigms and sophisticated simulation, calculation, projection and stress testing capabilities.

-end-


Why failure?

Be fo re my f a sc i n at io n w i t h fa i l ur e c am e m y

in it ia t i on . D at ed a li t t l e ea r l ie r t h a n m y

in vo lv e m en t w it h ne w ve n t u re s , i t r e q u ir e s a

su bs ta n t ia l d e t ou r do wn m em o r y l a n e .

Wh en I w as 1 6, f at e ha nd ed m e ov er t o a co ac h

at a l o c al t ra c k a n d f ie ld c l u b . M y t ra i n in g

pa rt ne r , T a r iq , w a s a P at h a n, a t ru e

hi gh la n d er . C om in g fr om t h e ra r e fi e d 71 a i r o f

th e m ou nt ai n r an g e s t h at do t t he bo rd er s

be tw ee n P a k i s t an an d A f g h a ni s t an , Ta ri q’ s l u n g

ca pa ci t y w as li ke a s c i- fi R a mj e t . H e c o ul d

sh or te n an d l en gt he n hi s s t ri d e a t a s ec on d’ s

no ti ce an d hi s h ea rt wo ul d f i gh t a l l th e w a y t o

th e fi ni sh l i ne . A t ou ch o ve r f iv e a n d a h al f

fe et w i th hi s s ma l l fr am e, he wa s d e s ti n e d t o

st an d t al l s o me w h e r e b e t w e en Se b C o e a nd Ed wi n

Mo se s, w hi le I wo u l d b e t he p o o r k i d f ro m a

co un tr y wi t h an “ I z hi ki st a n ” fo r a pr e fi x w h o

is fa sh io na bl y l at e i n c r o s s i ng t h e f in i s h l in e

in t he q ua l i f i e rs .

71 T h e g r a i l a n d t h e g o s p e l i n m i d d l e d i s t a n c e r u n n i n g i s a l t i t u d e . I t i s a l l a b o u t l u n g c a p a c i t y . T r a i n i n g a t h i g h e r a l t i t u d e , w i t h l e s s o x y g e n i n t h e a t m o s p h e r e o u r l u n g s b e c o m e u s e d t o w o r k i n g w i t h w h a t i s a v a i l a b l e . T a k e t h a t t r a i n i n g a n d b r i n g i t d o w n t o t h e p l a i n s a n d t h e s a m e l u n g s u s e d t o b r e a t h i n g i n o x y g e n s t a r v e d a i r , s t a r t g e t t i n g r e g u l a r a i r . F o r a h i g h a l t i t u d e l u n g t h e e f f e c t i s t h e s a m e a s a d d i n g n i t r o u s t o y o u r f u e l m i x , u s i n g h i g h o c t a n e i n s t e a d o f r e g u l a r .


D u ri ng ou r t r ai n in g se s s i o ns , T ar iq w e nt o n t o

co mp le t e e v e r y t hi ng t he c oa ch d ol ed o ut in a n

ef fo rt l e ss gl id i n g f a sh io n , wh il e I f l op p e d

ac ro ss t he la st 5 0 ya rd s, ha l f d ea d an d

co mp le t e ly o u t o f br ea t h . A t y pi c a l da y ’ s

en du ra n c e t ra i n in g w o u ld st a r t f ro m 5 00 0 m et e r s

(y es t h at i s eq ua l t o 5 KM or a l it t l e o ve r 3

mi le s) do w n t o a 3 0 -m e t er sp r i n t wi th a 4 0 -

se co nd w al k - j og i n be tw ee n. I t w as y ou r

pe rs on a l ed it i o n o f a po rt a b le fo u r -w h e el he l l ,

ma tc hi n g pa c e w it h y o u at 3 m in ut e s a k i l o me t e r

ov er d ir t t r a ck s , i nc l i ne s a n d p av e d r oa d s ,

pu ni sh m e nt f o r da r i ng t o th in k th at y ou co u l d

jo in t h e im m o rt a l s w h o r an ha l f a mi le i n l es s

th an a m in ut e a nd th re e q ua r t er s. By th e t i m e

we go t do wn to th e l o w 1 00 ’s i n o u r ev en t lo gs ,

ai r w o u ld be co me t h ic k a s s au c e an d t he tr a c k

ar ou nd us lo ok ed l i ke a T V w it h b a d re c e p ti on .

Wh en t h e e nd f i n al ly ca me , T ar iq w o ul d b e al iv e

an d w e l l, r ea d y an d a sk in g f o r m or e a nd I wo ul d

be t h e p os te r c h i l d f o r th e l i v in g d ea d. O u r

pr of es s i on a l m ee t s us ed t o b e r er u n s o f o u r

tr ai ni n g se ss io ns . Ta r i q f in i s he d w it h go l d .

Wh en I w as l u ck y , I e n d e d u p w it h br on ze o r

si lv er . W he n I w as n ot , I w e n t ho m e e mp t y -

ha nd ed a nd t i r e d.

Th e c re do a t t he f i e l d wa s s im pl e: I f y o u w an t

to s t a y in t he t r a i ni n g gr ou p, no ma tt er h o w

lo ng i t ta k e s, yo u fi ni s h y ou r as si g n me n t a nd

yo u c r o ss th e f in i s h l in e. If yo u d i e tr yi n g ,

we w i l l ta k e c a re o f th e bu ri a l a rr a n ge m e n t s ,

so r un an d di e w i t h ho no r. F or y ea rs , I d i e d

wi th ho no rs at th e N at i o n al Tr ai ni ng an d

Co ac hi n g Ce nt er i n K ar a c hi , a p t l y bu il t at t h e


j u nc ti o n b e t w e en N a t i on al S ta di um a nd A ga K ha n

Un iv er s i ty Ho sp it al . Na e em , ou r co a ch , wo u l d

po in t to th e st ad i u m o n on e si de a nd th e

ho sp it a l on t he ot he r an d s ay , “I t’ s y o u r

ch oi ce w hi c h w a y y o u go o ut . ”

Fo r o t he r a t hl et es ( wh o la te r be ca m e g oo d

fr ie nd s an d d ai ly p al l b e ar er s) a nd N a ee m , i t

di dn ’t ma tt e r th at Ta ri q w as wa y a be tt e r a n d

mo re g if te d ru nn er t ha n I w a s . Wh a t m at t e re d

wa s t h a t i rr es pe c ti ve of ho w h a r d h e t ri e d , h e

co ul dn ’ t lo se me . O n t he ov al b o un d a ri es of a

so cc er f ie ld l oc at ed b et w ee n a c r i c k e t s t a d iu m

an d a ho sp it a l wi th bo ld ed g e s , I l e a r ne d t ha t

it w as ok a y t o f a i l as l on g as yo u c r os s e d th e

fi ni sh li ne , w en t h om e , a nd sh ow ed u p fo r m or e

pu ni sh m e nt t h e da y a f t er . I fo un d r e li gi o n an d

my se lf ru n n i n g l a p s ar ou nd a c i n de r tr ac k w it h

a le ft - b eh i nd G re e k 72 g o d .

St ar tu p ro u l e t t e: A f ra me wo r k f o r f a il u r e

Th e n e e d f or a f ra me wo rk ar o se w h en I r ea l i ze d

it wa s d if fi cu lt f o r m e t o r e t a in an ob je c t iv e

po in t o f vi e w wh en m y v en tu re s we re cr os s

fa di ng b et w e en e c o n o mi c c yc l e s. I ns t e ad o f

tr ou bl e s ho o t i n g , wh i c h m ad e th in gs wo r s e, i t

wo ul d ha ve h e lp e d i f t h e r e h ad b ee n a li s t o f

co mm on d is e a se s, s y mp t om s , an d cu re s t ha t I

co ul d r ef e r to fi g u re ou t w ha t h ad go ne wr o n g

an d w h a t I n ee de d to d o t o f ix it . P a ge 69 ,

Ex pe ct a t io n M an a g em en t: fi rs t sh oo t y ou r

72 T h e P a t h a n s , t h e e t h n i c r a c e T a r i q c a m e f r o m , t r a c e t h e i r l i n e a g e d i r e c t l y t o A l e x a n d e r ’ s A r m y w h e n i t c a m e t h r o u g h t h e K h y b e r P a s s t o i n v a d e I n d i a .


p a rt ne r in t h e k n e e a nd t he n te ll h im if h e

ta lk s ab ou t mo vi ng o n to s o m e t hi ng b et t e r

ag ai n, y ou w i l l c a p t he o th e r o n e , t oo .

Wh en t h e f ra me wo rk wa s f ir st p ut t o wo rk , i t

wa s ob vi ou s th at I n ee de d t o th in k ab ou t

de gr ee s o f fa il ur e. Is i t j us t a r un n y no s e , a

ba d c ol d, vi ra l f lu e, or fu l l - b l ow n p ne um on ia ?

Th e s e ve r i ty o f il l n e ss d et er mi n e d th e

ag gr es s i ve n e s s of t re a t m en t. T he b e nc h m ar k I

us ed wa s th e a mo un t o f ti m e it t o o k t o g e t b ac k

on yo u r fe et af te r f ai lu re . A t t im es th is w a s

de pe nd e n t o n th e ma gn it u de o f fi n a n c ia l l os s

ca us ed b y f ai l u r e , wh i l e oc c a si on al l y n on -

fi na nc i a l f a ct o r s su c h a s at t a ch m en t s ,

re la ti o n sh i p s , cr ed ib i l i ty , se l f - co nf i d en c e ,

pr om is e s , a n d t he p sy c h ol o g i c a l mi nd se t

de te rm i n ed t h e le ng th o f th e r e c ov e r y pe r i o d .

Th e r e c ov e r i e s fe l l in o n e of th e f ol l ow i n g

th re e b r oa d c a t eg o r ie s:

T y p e I , a. k . a. t h e no c om mi tm e n t d a t e , i s a

fa il ur e wi t h o u t a n y ma j o r f in an ci al c os ts . Yo u

co me u p w it h a n id ea ; y o u t hr o w a l i t tl e m o ne y

at i t, te st t he w a t er s , do n ot g et th e ri g h t

re sp on s e , p ul l t he pl ug , a nd st ep ou t a s s o o n

as yo u g et y o u r f ee t w et . Y o u r t ot a l in v e s tm en t

is li m i t ed t o 4- 1 2 w ee ks of y o u r t im e a n d l es s

th an 5 % of y o u r n e t w or th .

T y p e I I , t he f a i r - pr ic e d jo y ri d e , i s a

fa il ur e w it h s ig n i fi c a nt fi na nc ia l c os t s .

Mo vi ng fo rw a r d w i t h th e a bo v e th em e , af t e r

te st in g t he w a te r s yo u ac tu al ly go fo r a sw im ,

fi nd t h e c u r r e nt t oo s t r o ng , g et s t u n g b y a


j e ll yf i s h, pu ll a m us c l e, ge t a cr am p, a n d

al mo st dr o w n be f o r e he ad in g b a c k t o th e s h o re .

Ti me fr a m es c o ul d ru n i n to y ea r s , p er s o na l

lo ss es cl a i m a s ub st an ti a l po rt io n o f yo u r an d

yo ur f r ie n d s’ an d fa m i l ie s’ n e t wo rt h , an d

re co ve r y f r o m th i s m is a d v e n tu r e i s s p r e ad o v e r

mu lt ip l e ye ar s . Ca ll e d th e f ai r - pr ic ed j o y r i d e

be ca us e yo u k n ew w h a t y ou w er e ge tt in g in t o ,

yo u h a d y o u r f un a n d y o u r ch an ce , t o o k y ou r

sh ot a nd m is se d. C h a rg e i t t o t he e x p er i e nc e

ac co un t .

T y p e I I I , t h e t ai ls pi n, i s f a i l u re w i t h

su bs ta n t ia l f i n a nc ia l c os ts . Y ou go f or a s wi m

an d ar e ne v e r s ee n ag ai n.

Ty pe I II f ai lu re s ge ne ra l ly r es ul t in c om pl et e

fi na nc i a l w i p eo u t s a nd tr e m en d o u s p er s o na l

em ot io n a l s t r a in . R ec o v e r y f r o m su c h f ai l u re s

is v er y ra re a nd r eq ui re s se r i o u s i nt er ve nt i o n

by f ri en d s , f am i l y, a nd we ll -w i s he r s . I h a v e

se en a fe w T yp e I I I s an d t he o nl y t hi ng I co ul d

do t o h e lp w a s tu r n a nd w al k aw a y .

Si de ba r on e – S er i a l en tr ep r e ne u r s

Serial entrepreneurs follow a very interesting pattern.

They will keep playing the game until life deals them

success or a tailspin. Social and economic systems that

make it easier to recover from tailspins have a thriving

and growing entrepreneurial community. Failure viewed as a

badge of courage and not taboo, protective bankruptcy

laws, liberal write-off and loss recognition provisions,

and a healthy appetite and understanding for risk all

help. Social and economic systems that don’t miss out on

the economic boost entrepreneurial steroids provide.


Th e bl u e s c r e e n o f de at h

Th e m a rk ed -f o r -d e a t h s yn d r om e i s q ui t e c om m o n

in f i r s t- a n d s ec on d - ti m e v e nt u r es . C oo ka ra ch a

Gu id es , m y ve n t ur e n u m be r t w o a s w e l l a s a T yp e

I fa il ur e, w as d o n e a n d f in i s he d wi th w it hi n

th re e m on t h s . T he id ea w as to gi v e pa i d a dv ic e

to a s p i ri n g M BA s a nd b u s i ne s s sc ho ol s tu de nt s

be fo re , d u r i ng , a nd af t e r t h e s ch oo l

ap pl ic a t io n p r o ce s s . A tt r a ct t he m w it h o r i gi n a l

co nt en t , se l l a l it t l e a dv e r ti s i ng , g i v e

ad vi ce , p a r t fr ee , p ar t c h a r ge d . Th e

op po rt u n it y c o s t w a s mi n i ma l d u e to m y st a t u s

as a fu ll -t im e s t u d e nt a nd th e o v e r al l

fi na nc i a l in v e st m e nt w as sm a l l si nc e th er e

wa sn ’t an y t h in g i n t h e ba n k f or me to i nv e s t i n

th e b u s in e s s (h a d no t d i s co v e re d c r e d it c a r d s

th en ). E mp l o y ee h ea d c ou nt a n d op e r at i n g

ex pe ns e s w e r e Fa w z i a a n d me w or ki ng f ro m ou r

su bs id i z ed st ud en t ap a r t me nt o ff B r oa d w ay i n

Ma nh at t a n a nd t he b us i n e s s s c h o o l l i b r a ry a t

Co lu mb i a Un iv e r si t y . E ve n A m i n, ou r ( fr es h f ro m

th e mi nt a t R oo s e v e l t H os pi t a l ) s on h ad m ad e

hi s si gn if ic a n t c o n t r ib ut i o n b y a ll o w in g us t o

cl ai m a tw o - be d r o om r at h e r th a n a s in gl e , o n e

be dr oo m o f w hi ch wa s i m me di a t el y u s u rp e d a s th e

gl ob al h ea dq ua rt e r s o f C o o k ar ac h a I n c .

In te rn e t a cc e s s, em ai l , f ax es , p h ot oc o p yi n g ,

an d c o nf e r en ce ro om s w e re a l so p ro vi d e d

co ur te s y o f t h e b u s in es s sc h o ol .

Th e do wn si de w as l i m it ed to t h e u n p a i d h o u r s

Fa wz ia an d I sp e n t o n ge t t i ng t he c o nt en t

to ge th e r an d u p a nd ru nn i ng on t h e s t u de n t we b

se rv er . I t o ok it on b ec au se I th ou g h t th e r e


w a s an o pp or tu ni ty . I w a s w r o n g ; i t d ie d

be ca us e t h e f e w wh o c am e di d n ’t wa n t to p a y an d

wh il e I wa s b u s y g e t t i ng t h i n g s t o g et he r, th re e

do ze n o th e r s it e s ha d a l r ea d y mu sh ro o me d w i t h

si mi la r t h em e s . T he r e wa s l i tt l e I c ou ld d o t o

di ff er e n ti a t e th e G u id es fr om t he si te n ex t

do or . Le ss on n um b e r on e — do n’ t wa lk i nt o a

cr ow de d s pa c e w he r e t h er e a r e no sc re e n s o n th e

wi nd ow s an d n o do o r s at t he e nt r a n c e .

Av ic en a , v e n t ur e nu mb er t hr e e , l o c at i o n

so ut he r n C al i f or n i a, c ir c a m id 1 99 9– mi d 20 01 ,

la st ed a ll o f t wo y ea r s . A l th ou gh i t

re pr es e n te d a f i na n c ia l l os s m e as ur ab l e i n

mu lt ip l e s of m y ne t w or t h , i t wa s a ls o th e b es t

ed uc at i o n I ev er h a d. Th in gs w e re a l it tl e

co mp li c a te d t h i s t i me b e c au se w e ha d ta k e n i n

$7 0, 00 0 in f r ie nd s’ a nd f am il y’ s mo n e y a nd a n

in cu ba t i on ag re em en t ba r te ri ng 2 0% of e qu i t y

fo r a p pr ox im a t el y $ 2 50 , 0 00 in s er v i ce s an d

fa ci li t i es . W e h a d e mp lo ye e s a nd p ay ro ll , a

pr od uc t i on we bs it e, se rv er s, de di ca te d

br oa db a n d co n n ec t i o n s , b e t a cu s t o me r s , v e nt u r e

ca pi ta l co mm i t me n t s, ma x ed -o ut c r ed i t c ar d s ,

bu t no r ev e n u e s .

Th e b u s in e s s m od e l wa s f a ir l y si mp le . W he n w e

fi na ll y g ot ar ou n d to im p l e m e nt i n g i t, w e fo un d

th at b us in es s m od e l s ar e fa r e a si er t o w ri t e ,

ar e m o st d i f fi c u l t to e x e cu t e , an d a r e r a r el y

si mp le . Re al i z in g a nd a c c ep ti ng t hi s f or a n

en tr ep r e ne u r i s eq u i va l e nt t o th e l o ss o f

in no ce n c e f o r a t ee na ge r – th e mo s t i m po r t an t

le ss on t ha t c an on ly b e l ea r n ed t he h a rd w a y –

an d n e v er b e t au gh t. O n e pa r t la bo r a rb i t ra ge ,


o n e p a r t t e c h no l o g y , a n d on e pa r t b r a n di n g an d

di st ri b u ti o n s ou n d s ne a t o n p a p e r b ut i f yo u

ca n’ t do it a ll b e f or e c as h ru ns o ut , l o y o u

ha ve a s ho t a t wr i t in g a bo o k .

In th e sh or t s pa n th at w e w er e a ro un d, w e t oo k

ca re o f t ec hn o l og y e x e cu t i on , c on t e nt , o f f sh or e

ou ts ou r c in g , bu si n e s s p r o ce s s es , l ea d

ge ne ra t i on , a n d en g a ge d S o ci e t y of A c t ua r i es ,

Sw is s R e, ER C F r a n k on a , Ma n u f ac tu re rs Ba n k ,

Su mi to m o Mi ts ui , Re ut e r s , Ya ho o , a n d Pe ar s o n

Pu bl is h i ng i n b us i n e s s de ve lo pm en t d is c u s s io n s .

Ne w Y o r k, Bo st on , C hi c a go , D .C . a nd To ky o . I

le ar ne d a s m u c h a bo u t mi ss e d fl ig h t s, a i r p or t s ,

un pl an n e d tr a n si t s , la yo v e r s, t a x is , r ed - ey e s ,

an d h o t el f oo d a s I di d ab o u t s el l i ng . D e sp i t e

th e p r o mi s e i n t he i de a , we h i t t h e s cr ee n

be ca us e s tu pi di ty k no ws n o b o u n d s. A l s o t ru e

fo r g r e ed a n d a rr og a n ce — w e w er e s t up i d , g re e d y ,

an d a r r og a n t, w h i c h , i n a d if fe r en t o r de r , ma y

no t h av e be e n su ch a ba d t hi ng . I f on ly we w er e

gr ee dy fi r s t , m ad e o ut li k e k in gs , a nd t h en

tu rn ed a rr o g an t a n d st u p id . W e b eg a n wi th

ar ro ga n c e.

Wh en w e pu ll ed do w n th e s h ut te r s , I t h ou g h t i t

wo ul d b e a w hi le b e fo r e I wo ul d t h i n k ab ou t

ve nt ur i n g o u t o n my o wn a ga in . Th re e ve n t u re s

in a ro w ha d l ef t me a li tt l e b re a t hl es s a n d

st ra pp e d f or c a sh an d I d id n ’ t w an t t o g e t b ac k

to wo r k in g 1 40 - h o ur we ek s j us t s o t ha t I co ul d

go b ro ke a g a i n . W h y w or k so h ar d t o co m e b ac k

fu ll c i r cl e w h e n y o u we re a l r ea d y t h er e ?


I n l es s th an 1 8 m on t h s , I w e n t b a c k t o th e

gr in d o f w or ki ng w i th o u t a p a yc he ck an d i n

an ot he r t h re e y ea r s h a d p a i d of f m o s t o f w h at I

ha d b eg ge d, bo rr ow ed , a n d s t o le n t o k ee p t hi ng s

go in g d ur i n g t h e f i n al d a r k m o n th s i n

Ca li fo r n ia . I w as l uc k y to b e 30 , w it h a

su pp or t i ve f a m il y w h o p u t t h r e e m ea ls o n th e

ta bl e, di dn ’t as k d i f fi cu lt q u es ti o n s o r c ha r g e

me fo r r en t . A d i ff e r en t d e a le r a n d a d if f er en t

ha nd o f c ar d s an d it co u l d ha v e ju st as e a s il y

be en a T yp e I I I t a i ls pi n.

Th e l a s t se t o f l es s o ns t ha t I le ar ne d f r o m th e

Gu id es a nd A v i c en a bo il ed d o w n t o :

a) F a i lu re i s a m o r e di s c er n i ng a nd f o rg i v in g

te ac he r t ha n s uc c e s s. Ou nc e f or o u n c e, y o u c om e

ou t l e a n er , m ea n e r, a nd w i se r . A s l o n g as yo u

ru n w i t h h on o r , cr os s t he fi ni sh l i ne , a n d s ho w

up fo r m or e p un i s hm en t t h e d ay a f te r, yo u w il l

be a t p e ac e w i t h y o ur se lf a n d t h e w o rl d .

b) As a fi rs t- ti m e r ar o u nd t h e c ir c u it , y o u

do n’ t k no w e no ug h t o p i c k th e r ig h t ca r, t h e

ri gh t de al s, t h e r i gh t t i re s , t he r i g ht t e a m ,

or ho w t o ta ke th e t ig h t es t o f t u r ns .

Re ga rd l e ss o f y ou r in te l l ig e n ce , co mm it me nt ,

an d c a pi t a l, yo u a r e d oo me d to fa il . T h er e i s

a b l ue sc re e n o f de at h a nd i t’ s go in g t o g e t

yo u be ca us e th e o d d s a r e st a c k e d a g a i ns t y o u

fr om d a y o n e .

c) B es t t o do th i s w he n th e st ak es a r e sm a l l

an d no o ne i s w a t c h in g . I t h e l p s i f yo u ar e


y o un g a nd st ro ng o r ha v e t he h e ar t a nd st a m in a

to r ec o v er a n d ta k e a no th er s ho t l a t er o n.

Th e re a l q u e s ti o n t h en , as a me mb er o f a n

au di en c e on ce as ke d m e, is , “ If fa il u r e i s s o

gr an d, c o mm o n , in e v it a b l e an d ho no r ab le , w h y

wo rr y ab ou t i t al l ? I t i s go in g to ha pp e n s o

wh y b o t he r s t ud y i n g an d a na ly zi n g it ? Ju st s i t

ba ck a n d e n j o y th e ri de , ri g h t? ”

Te n y e a rs ag o w he n I wa s a w a rm -b l o od ed pa r t y

an im al br im mi n g wi th co n f i d en ce i n my a b i l it ie s

to c ha ng e th e w o r l d a n d s ur v i ve a dv er si ty , I

wo ul d h av e a g re e d . A t 3 5 , t ho ug h, I ha v e a

sl ig ht l y d i f f e r en t vi ew .

I t h i n k e n t r e pr e n e u r s b y de fi ni t i on bu rn o ut a

lo t s oo ne r t ha n o rd in ar y h um a n b e i n g s. I n fa ct ,

I wo u l d ev e n ve nt ur e fo rt h, w i t h ou t an y

sc ie nt i f ic , st at is ti c a l, or a c a de m i c

va li da t i on , t h at t h e ha l f -l if e of a ty pi ca l

bu si ne s s fo u n de r i s ar ou n d 4 0 73 y e a rs . Af te r 4 0

yo u s l o w d ow n, g e t r il ed ea s i l y , h av e m o r e

pe rs on a l , f in a n c i a l, an d f am i l y

re sp on s i bi l i t i e s, a n d , g e n e ra l l y sp ea k i ng , a r e

mu ch l es s re ck le ss t h a n y ou w er e i n y o u r

ea rl ie r y e ar s . In a f i el d t ha t t h r iv e s o n r is k

ta ki ng , yo u w an t to pl ay i t s af e. I f y ou m a k e

it f in an ci al l y b e f o r e o r s o me wh e r e a r o u nd t h i s

cu t- of f d at e, yo u c an pu t a si de yo ur ne st e g g

73 T h i s b o o k i s f i l l e d w i t h a s s e r t i o n l i k e t h e s e t h a t s h o u l d h a v e b e e n b a c k e d u p w i t h s o l i d a c a d e m i c r e s e a r c h b u t a r e n o t . I f a n d w h e n I e n r o l l i n a P h D p r o g r a m , I p r o m i s e t o d o b e t t e r .


a n d g o b ac k to b e i n g r ec kl es s. If yo u d o n ’ t ,

th er e i s a g oo d ch an ce t h at y o u wi ll sw i tc h t o

sa fe m o de . I b e l ie ve th e f i n al cu t - of f a g e w il l

va ry a cr o s s c ul t u re s , r eg i o ns , a nd s oc ia l

bo un da r i es . H a vi n g s a id t ha t an d as su mi ng t ha t

yo u h a v e b ee n w o rk in g s in ce yo u t u r ne d 23 , t ha t

gi ve s y ou a w in d o w o f o pp or t u ni ty of ab ou t 1 7

ye ar s t o m ak e i t h ap pe n. Th er e w il l a lw a y s b e

ex ce pt i o ns t o th i s a na l y si s; l oo k a t t h e 8 0 -

ye ar -o l d gr a n d mo t h er s m a k i n g a f o r tu ne se l l i n g

co ok ie s o n e Ba y o r m id dl e- a g e d f ir st -t im er s

hi tt in g j ac kp o t s w it h be st - s el l i n g fa t r e d uc er s

an d cr i s py b a c o n t o as te rs .

Si de ba r Tw o – S pi r i t

Entrepreneurial spirit is scarcer than capital. Given

certainty, opportunity, resources, and choice, most people

believe that they would choose to be owners, investors,

and employers rather than employees. Throw in a little

probability and then see what happens. Absent the

certainty, a very small percentage of the same group will

actually take the bet, even if everything else is held

constant. An increasingly smaller percentage of takers

will stay with the bet as you increase the element of

chance, reduce choice, and strip out resources. The last

man standing would be the rare individual who will

actually make it work, irrespective of what you take away

from him. That is the essence of an entrepreneur—as rare

and honorable as true love, courage, and self-sacrifice.

I f y ou a ss um e f o r a m o m e n t t h a t t h e 17 y ea r

wi nd ow o f o pp or tu n i ty e x i s ts , th en h ow w o u l d

yo u p r o ce e d ? I f a n a ve r a ge ne w v en t u re ta ke s

fo ur t o si x y ea r s t o p a n ou t an d r ew a r d

in ve st o r s an d f ou n d er s , t ha t g i ve s y o u j us t

th re e t o fo u r ro l l s of t h e di c e . O n t he f o u rt h


r o ll , yo u a r e o ut o f t h e ga m e . I s th er e

an yt hi n g t h a t y ou c an d o to i mp r o v e th e od ds ?

I ca n th in k o f t w o . Y o u ca n ro l l w h e n yo u a r e

ab so lu t e ly su re t ha t y ou wi ll h a ve a w in n e r o r

yo u c a n cu t d ow n t he av e r a ge t i me pe r v en t u re .

Th e p r o bl e m i s t ha t a n e w ve nt ur e w i l l t ak e

fo ur t o si x ye a r s t o c om pe ns at e y ou f o r y ou r

or ig in a l be li e f , c om m i tm e n t, an d e ff or t. Th e r e

is n ot a l o t of ro om t he re f or yo u t o c o m p r es s

th e t i m e t ak en be f o re yo u b re a k ev en . T he o n e

th in g t ha t yo u c an cu t d o wn is th e a ve r a g e t im e

pe r f a il ur e. P ut r at h e r si mp l y , fa i l q u i c k l y

or n ot a t a l l .

Av ic en a sh o o k m e up . A mi n, o u r t wo - y ea r - o ld ,

ha d a l l er g y i nd i c a t i on s a n d w e c ou l d n o l on ge r

af fo rd he al t h i ns u r a nc e. I n a y ea r, I ha d

su cc ee d e d i n g at h e r in g m or e d eb t t ha n m y

pa re nt s as s u m e d a n d pa i d of f in t he ir e nt ir e

li fe ti m e s. T h e fo ur y e ar s i t to ok m e to p a y of f

th os e o bl ig at i o n s w e r e a w e l c om e p e n an c e f o r m y

be ha vi o r . B u t th e y a ls o m ad e ve ry c le ar t ha t

th e ye ar s t h a t it to ok m e t o s i nk an d re co ve r

ca me f r o m a re du ci n g p oo l o f ti me th a t I co ul d

ne ve r r ef i l l . I h ad on e m or e ro l l of di c e l ef t

th at e xp ir ed as s oo n as th e cl oc k hi t 4 0. I t

wa s a ls o cl e a r t ha t i f I d e c id ed t o r ol l , I ha d

to ma k e th is on e c ou nt o r sa y g oo d b ye fo re v e r

to my e n tr e p r e n eu r i al dr ea m s . W it h a w if e , tw o

ki ds , a nd a t h ir d o n th e w ay , Mr . F ar id , i t wa s

ab ou t t i me t h at y o u wo ke up a n d di d s om e t h in g

mo re p r od u c t i v e a nd fi n a n c ia l l y r e w a r d in g w it h

yo ur l i f e.


I n m y m i nd , th e q u e st i o n b ec am e, “ I s t he re a

li tm us te s t th at c a n t e l l yo u u pf r o nt if th e

bl ue s c re e n o f d ea th i s g oi ng to g et y o u ? ”

Be fo re e ac h ro ll , y o u c o u ld s i m pl y a p pl y t h e

te st a nd se e if it wa s w o rt h w hi le t o r ol l t h e

di ce o r pa s s .

To de s i gn t he te st , y ou h av e t o d ig de ep e r i nt o

wh y e n tr ep re n e ur s f a il . T r ad i t io n al l i te r a t ur e

wi ll gi ve yo u a l on g l is t o f f ac t o rs :

en vi ro n m en t , p e r s o na l d is c i pl in e, m ar k e ts ,

bu si ne s s m od e l s, pr i ci n g po we r, c om pe ti ti on ,

fr au d, wo rk et hi c a nd ex ec ut i on a m o n g o t h e r s; A

qu ic k r ea d o f th e la s t fe w pa g e s w ou l d ad d

lu ck , fa te , de st in y , s tu p i di t y , ar ro g a nc e a n d

gr ee d. B ut th is is a l l ma c r o s tu f f ; l is t s t ha t

ar e e x ac tl y th a t , l is t s . No g o o d fo r au t h o r s ,

us er s, r ea d e r s , o r en tr ep re n e ur s .

Wh en I g o be yo n d t h e m ac ro f a c t or s a nd t h i n k

ab ou t t he me ta di me ns io n , in my mi n d b us in es se s

an d e n t re p r en eu rs w h o f a i l , d o s o b e c a us e t he y

ca n’ t so l v e t hr e e s im u l ta n eo u s c ha l l en ge s 74 –

se le ct i o n, e x e cu t io n an d b a la n c in g fa it h. An y

sc re en i n g t e s t y ou de f in e , n e ed s t o i nc l u d e al l

th re e f ac t o r s . Le t m e d e fi n e wh at t h e th r e e

fa ct or s me a n t o m e an d t h en w e c an t a k e a l oo k

at t he t es t s .

S e l e c t i o n

Th e s e le ct io n p ro b l em i s pi ck in g up t h e ri g h t

bu si ne s s id ea . T h e a bi l i ty to d e c i ph er w he n t o

74 N o a c a d e m i c b a s i s c a v e a t


r o ll a n d wh e n to p as s . Li ke a ll se l e ct i o n

pr ob le m s , t hi s i s b a s ic pa t t er n r e c og n i ti on . I f

yo u ha ve se e n t he mo vi e on ce , y ou k n o w h o w i t

en ds . T he ri gh t i d e a s a r e li ke se ei n g th e s am e

mo vi e ag ai n an d a g a in a n d a g a i n 75. I m a g in e t h e

ed ge y ou ha v e , wh e n yo u kn ow t h e pl o t an d th e

en di ng , w h i l e t he c o mp e t it io n i s s t i l l t ry in g

to f ig u r e o u t w ho , wh y, w he r e , w h e n an d wh y?

E x e c u t i o n

Ex ec ut i o n i s de li ve r i ng o n th e p r om i se o f th e

id ea . G r ea t i de a , b a d ex ec ut io n, d e a d

bu si ne s s . In co nt e m po ra ry li te ra t u re ex e c ut i o n

in c l i c hé d , i n r ea l li f e it i s s t a y i ng th e

co ur se t ha t ge ts y o u p a s t G O c h ea p e r, f as te r

an d so o n er .

B a l a n c i n g F a i t h

Ba la nc i n g f a i t h is r e c og n i zi ng wh en yo u c a n wi n

an d wh en yo u ca n’ t . I t i s go i n g t he d is ta n c e

wh en y o u c an an d c ut ti ng yo ur lo ss es wh en y o u

ca n’ t. O nc e a ga i n c li c h éd . In r ea l l i f e: H a v e

yo u e v e r pu ll e d th e p lu g on th e v e n ti la to r of a

dy in g l o ve d o n e ? ( I ha ve n’ t an d n e v er w an t to )

No w t h a t we u n de r s ta n d w ha t e ac h o f th e s e

fa ct or s s ig ni fy , l e t ’s t a k e a l oo k a t t h e

te st s. S el e c t i o n a n d ex ec ut i o n f i r s t :

75 A n d y K e s s l e r , R u n n i n g M o n e y , H a r p e r B u s i n e s s , 2 0 0 4 i s w h e r e I f i r s t s a w t h e “ I h a v e a l r e a d y s e e n t h i s m o v i e ” a n a l o g y . T h e a n a l o g y a n d t h e b o o k a r e b o t h w o r t h r e a d i n g .


B r uc e Gr e e nw al d 76, a p ro fe ss o r wh o de f i ne s

bu si ne s s f ra nc h i s e i n h is E co n o mi c s o f

St ra te g i c B e h a vi o r an d V a l ue In ve s t i ng cl a s s e s

at C ol um bi a Bu si ne s s S ch o o l, s a y s, “P or t e r 77’ s

fi ve f or ce s ar e f o u r fo r c es t o o m an y ; b ar r i er

to e n t r y f or co m p e t it i o n i s w ha t c r e at e s a

co mp et i t iv e e dg e an d e ns ur es su st ai na bl e

pr of it s . E v e r y t hi n g e ls e is i rr e l e v a nt . ”

In pl a i n En g l is h B ru ce ’s la w st at es th at i n

or de r f or yo u t o k ic k b u t t o f y ou r c o mp e t it io n

yo u h a ve to p ic k a b u s in e s s in w h ic h t h e

co mp et i t io n i s n o t j us t l im i t e d n ow b ut w il l

re ma in li mi t e d f o r a v er y l o ng p e ri o d of t i me .

Th is c a n on l y ha p p en wh e n i t i s e x c ee di ng l y

di ff ic u l t fo r a ne w e n t r a n t t o e it h e r e n t e r

yo ur m a r ke t o r c o m p et e w it h y o u o r b ot h. T ha t

is a tr ue b us in es s f ra nc hi se . Tr an sm i t t a an d

AM D a g a in s t I nt e l ; C ok e a nd P e p s i ag ai ns t e ac h

ot he r an d ev e r y o ne e ls e ; A ny r eg u la te d

mo no po l y a g a i n s t re ce nt ly d e - re g u l a t ed p la ye rs :

Wi th in th e P a ki s t an i m a r k e t, Li fe i n s ur an ce -

St at e L if e; t e le co mm u n ic a t io n – PT CL ; b a n ki ng -

Na ti on a l B a n k .

We f a i l as e nt r e p re ne ur s be ca us e in o u r fi r s t

fe w r o u nd s , we ar e u na wa re of Br uc e’ s L aw . A t

ti me s we a r e aw a r e of th e la w (w e m a y n o t k no w

it by th at n a me ) b ut ei t h er re fu se t o be li e v e

76 S e e V a l u e I n v e s t i n g , B r u c e G r e e n w a l d , e t . a l , J o h n W i l e y & S o n s , 2 0 0 1 a s w e l l a s C o m p e t i t i o n D e m y s t i f i e d , B r u c e G r e e n w a l d , e t . a l , P e n g u i n G r o u p , 2 0 0 5 . 77 P o r t e r ’ s f i v e f o r c e s a r e S u p p l i e r P o w e r , B u y e r P o w e r , T h r e a t o f R i v a l r y , T h r e a t o f S u b s t i t u t e s a n d B a r r i e r t o E n t r y . S e e P o r t e r , M i c h a e l E . , C o m p e t i t i v e S t r a t e g y .


i t or fi nd i t di ff ic ul t t o a c k n ow l e dg e t ha t i t

ap pl ie s to th e op p o rt un it y w e a r e e v al u a ti ng .

Br uc e’ s La w o r th e bu si ne s s f ra n c hi s e te st i s

th e f i r st se l ec t i on re q u i r em e n t. If y o u be gi n

wi th p as s i n g th e bu si ne s s fr an ch is e te s t y o u

ha ve a lr e a dy im pr ov e d y ou r o dd s ag ai n s t

fa il ur e .

Un wa ve r i ng b e li e f in th e f ra nc hi s e te s t ,

ho we ve r , is no t t he on ly re q u i re m e nt fo r

su cc es s .

Yo u c a n d i s c o ve r a n o p p o r tu n i ty wh e r e th e r e i s

no c om pe t i t io n or f ut u r e c om pe ti ti on w i l l b e

ve ry re s t r ic te d d ue to a su s t ai n a bl e

co mp et i t iv e a d v an t a ge th at y ou r v e n tu r e e n jo y s .

Bu t t h e n y ou ne ed th e a b i li t y to co n v er t t h i s

op po rt u n it y t o ca s h an d ke e p i t t ha t w a y ,

pr ef er a b ly b e f o r e y o u r u n o u t of ca pi ta l. Wh ic h

is e xe c u ti o n 78.

En tr ep r e ne u r s f a il b e ca us e t he y p ic k a ba d i de a

or th e y c an ’ t ex e c u te or bo th . Ho we ve r if y o u

lo ok h a rd e n o ug h y ou w i l l f i n d b us in es se s t ha t

go t b o t h t he id ea an d t h e ex e c u ti o n pa rt w r on g

an d y e t f un c t io n a s vi a b le b u s in es se s to da y

th at p ay r e n t, m a k e p a y r ol l, s e t tl e t he i r

bi ll s, a nd ge ne ra t e a r e a so na b l e p r o fi t f o r

th ei r o w ne r s 79.

78 S e e E x e c u t i o n , L a r r y B o s s i d y a n d R a m C h a r a n , R a n d o m H o u s e B u s i n e s s B o o k s , 2 0 0 2 . 79 S e e e a r l i e r f o o t n o t e o n t h e d i f f e r e n c e b e t w e e n e c o n o m i c a n d a c c o u n t i n g p r o f i t s


H o w d o y ou r e co n c il e t he tr u t h w i th t h e f ac ts ?

We ll , as B r u ce pu t it , t h e bu s i ne s s f ra n c h i s e

te st a bo v e i n di c a te s tw o t hi ng s— th e le ve l o f

pr of it a b il i t y a nd s us t ai na bi l i ty o f t ha t

pr of it a b il i t y . Y ou ca n s t i ll ma k e mo n ey if yo u

fa il t e st n u m be r o ne , ju st do n ’ t c ou nt o n

ma ki ng it la st fo re ve r. On t h e e x ec ut io n f ro nt ,

mo me nt u m or in er t i a w i ll c a r r y y o u th ro ug h s om e

di st an c e be fo re y ou r ea l i z e h o w mu c h t r o u b l e

yo u ar e i n . J us t b ec au se a ru n aw ay t r a i n

pa ss es o th e r tr a i ns o n ot h e r tr a ck s an d

st at io n s , i t do e s no t me a n t h at it i s w el l

dr iv en . Th e r ea l te st i s w h en yo u b r ea k

in er ti a , c ha n g e di r e ct i o ns , fi g h t mo m e nt um o r

hi t a h a rd s t op . T h ro w a n y o n e o f th e ab ov e

te st s a t t he s o ca l l e d pr o f i t a bl e b us in es s e s w e

ju st s p ok e a bo ut a n d y o u y ou rs el f w i l l s ee h o w

we ll r u n t h e y a re .

B a l a n c e F a i t h

An d n o w fo r b al an ci n g fa it h . Th e wi n n e rs -n ev er -

qu it q u e st i o n ! Th e h o w- c a n- yo u- w al k- aw ay - wh en -

we -a re - s o- c lo s e -t o - th e- en d d e f e n se . I k ee p

co mi ng b ac k to S a r w a r’ s l as t c o mm e n t at D a n a

Po in t: “I ca n a cc ep t a n y th i n g b ut a s ho rt ag e

of f ai th fr o m y ou . ” W as it s h o rt a g e o f fa it h

or s om et hi ng d ee pe r? G i v en a b ad d a y ca n I

ju st q u it ? I s t h a t wh a t Sa rw ar me a n t ? Ho w d o

yo u t e ll t r u e c at a s tr o p hi c fa i l ur e f r om a b a d

bo ut o f se lf p it y? Ho w do y ou k no w it ’s t i m e


t o w a l k aw ay a n d d o so me th in g e ls e w it h y o u r

li fe ?

Us , e n t re pr en e u r s a r e a r el i g io u s l o t. W e j us t

ca n’ t re ma in a gn os ti c gi ve n w h a t w e f ac e a n d

th e lo ws t ha t we si n k t o wh en w e a b an d o n a

pr oj ec t . C al l i t de st in y, ka rm a , d iv i n e

gu id an c e , or a h ig he r b ei n g ; do a f ew r o u nd s a s

an en t r ep r e ne ur a nd y o u w il l n o t on ly fi nd it ,

yo u w i l l p ra y t o it e v er y m o r ni n g a f te r l o ok in g

at y ou rs el f i n t h e mi r r o r . It i s o u r f a i t h i n

ou r a b i li t i e s a nd de st in y th at al lo w s us t o

le av e r eg ul ar pa yc he c ks an d t ak e w h a t t h e wo rl d

ma y v ie w as a n ir r a t i o na l o r i ns a n e be t. I t i s

al so t h e sa m e fa it h th at he lp s us s u rv i v e

ad ve rs i t y a nd it is al so ou r f a i th th at ho l d s

us b ac k lo n g a f te r th e wa ke i s o v e r .

Ho w d o yo u k no w it ’s o v e r ? Ho w d o y o u k no w

it ’s t im e f o r y ou t o t ur n yo ur b ac k, pi ck u p

th e ke y, op e n t he d oo r a nd l ea ve ? Yo u ca n ’ t

re ly o n fa it h b e ca us e f ai th is no t r a ti on a l an d

fa it h w il l n o t p a y t he b il l s . I s t h er e a n

ob je ct i v e m ea su re y o u c an us e t o s ta rt t h e

se lf -d e s tr u c t s eq u e nc e?

I on ly h av e o ne t e s t t h a t I ha ve t ri ed o ve r

ti me . T he ob je ct iv e o f a b us in es s i s t o m a k e

mo ne y fo r it s s ta k e ho l d er s. E v e n n o t -f o r -

pr of it s an d c h ar i t ie s ma ke m on ey to c a r ry o n

wi th t h e g o o d wo rk th e y do . Wh at e x a c tl y i s

th is m o ne y ? Ta ke ev er yt h i ng th at co m e s i n a s

re ve nu e , t a k e o ut e ve ry th i n g th a t g o e s o ut a s

an ex pe ns e, an d t he d i ff e r e n c e, i f po si ti v e , i s

ca sh i n th e b a n k ( m or e or l e s s) .


I f i t is n eg at iv e, i t is l ik e a bi ll t ha t ha s

to b e pa i d a nd g et p a i d i t d oe s fr o m y ou r

pe rs on a l po c k et s . Yo u r s ur v i v al a s a n

en tr ep r e ne u r th en d e pe n d s on th e d e p t h o f y ou r

po ck et s an d y o ur t o l er a n c e fo r w o rk i n g 20 - h o u r

da ys A N D p ay i n g th e b us in es s f or th e s w ee t d ea l

it ha s a l lo we d y ou to c ut wi th yo u r se lf . I f th e

st at us q uo r em ai ns t he s am e , u lt i m a te ly e it he r

yo ur p o ck e t or y o u r pa ti en ce w i ll ru n o u t .

Wh en i t do es , y o u a b a nd on r a ti on al e a nd m o v e o n

to f ai t h .

Ma ki ng mo n e y is a l it t l e mo r e co mp li c a te d t ha n

fi nd in g a n e e d , f i n d in g a m ar ke t, c re at in g a

pr od uc t , f i n d i n g a bu ye r, a nd c lo si n g a de a l .

It r eq ui re s t h at y o u d o a ll of t he se i n s u c h a

fa sh io n t ha t t he r e is so m e m ar g i n l ef t f or yo u

to t ak e ho m e a t t h e e nd .

Ve ry f ew b u s i ne s s es c a n re ac h th is o b je c t iv e

ri gh t aw ay . If i t r em a i ns a n at ta in ab l e g o a l

an d y o u ha v e s u ff i c ie n t c ap i t al t o re ac h t h a t

go al , h av e f a i t h a nd li ng er on . W h e n i t b e co me s

un at ta i n ab l e o r y o u ru n o ut o f ca pi ta l , i t ’ s

ti me to l oc k u p a n d g o h om e. T hi s i n e ss en ce i s

te st n u m be r t w o .

Fa it h a nd c o m m it me n t a r e re le v a nt w h en th e

un de rl y i ng b u s in e s s mo de l i s vi ab le , wh er e

nu mb er s a dd up , a n d w he r e pr o f it ab il i t y i s

re ac ha b l e w i t h in a r ea s o n a b le t i m ef r a me . W he n

th is i s no l o ng e r t ru e , f ai t h a nd c o m mi t m en t

ar e mi sp l a c ed . Th es e c o n d i ti o n s or t es t s a r e

no t s t a ti c ; a b us i n es s m od el m a y b e v ia b l e o n


d a y o ne bu t i r r el e v an t o r u n re al is t i c t w o we e k s

do wn t he r o a d. N e w an d pr ev i o u sl y u nk n o wn

in fo rm a t io n i s g en e r at e d as v e n tu re s cr os s

ma jo r mi le st o n es . I t i s b et t e r to a sk s im pl e

qu es ti o n s a g a in a n d a g a in a b ou t ca p i t al ,

pr od uc t s , c us to me rs , ec o no mi cs , an d t e a ms t o

gr ad e i de as a n d pl an s a s w e m ov e f or wa rd r at h e r

th an r e l y o n i n it i a l or s ta t i c a n a l y si s .

S i d e b a r T h r e e : A s s e t s a n d L i a b i l i t i e s

For some, a going-concern venture, even with negative

current and future cash flows, has some value. As

long as it is viewed as a going concern it is still

an asset. The minute you turn the life support off,

it turns into a liability with enough strings

attached to sink you. A common theme in ventures

funded with friends’ and family’s effort and capital

is the blood oath to succeed or die trying. The

stakes are high since most new ventures are highly

leveraged, speculative, risky exercises in the power

of faith that stay that way for years. The leverage

that creates the high returns stays (is persistent)

whether the ventures fail or succeed, creating a

natural bias for owners to aim for success at all

costs. Sometimes even a small win that allows them

to maintain the appearance of a going concern is

preferred over a declaration of all-out failure.


D o I h av e a li st o f qu e s ti on s a nd m i le st on e s 80?

Ye s I do . B u t re me mb er , f or me , t he ob je ct i v e

is to f a il q u i c kl y , g a th e r m i n im al ba gg ag e , an d

ta ke o n t he ne xt b ig th i n g. T he qu e s ti o ns an d

mi le st o n es ar e ap pl ie d a n d t e s t e d e v e r y t im e

yo u h a ve ad d i ti o n al i nf o r ma ti on t ha t h as a n

im pa ct o n yo ur a n s w e rs . U nt i l y ou a n s we r t h e

qu es ti o n s s a t i sf a ct o r il y , d on ’ t m ov e o n t o t h e

ne xt mi le st o n e. I f yo u ge t s tu c k at a

mi le st o n e; a n d /o r m ak e n o p ro gr es s; a n d s t a r t

ru nn in g sh or t o n c a pi t a l, t he n c on s i de r t h e

co st o f st ay in g a t th a t l ev e l v er s u s tr a d i n g

yo ur c u r re n t v e nt u r e fo r a b e tt e r o n e.

Le t’ s s t ar t w i t h t h e li st o f qu e s t i o ns .

Mi le st o n e n u m b e r on e – th e i de a . Y o u c a n’ t m ov e

on wi t h j us t a g re at id e a u nt i l yo u f ig u r e ou t

ho w yo u a r e g oi n g t o b ui l d i t an d w h a t i t w il l

co st y o u . F i v e qu i c k qu es ti o n s:

1. W ha t ar e y o u b u i ld in g?

2. W ha t do y o u ne e d t o bu il d it ?

3. C an y ou g e t it ?

4. C an y ou b u i l d i t ?

5. H ow a re y o u go i n g to m ak e mo n e y f ro m it ?

Yo u ha ve to b ui l d wh at y ou ar e go in g t o se ll .

It m a y b e a p ro du ct , a co nc e p t, o r a

tr an sa c t io n . I r re s p ec ti ve o f i ts p h ys i c al sh ap e

an d f o r m, yo u n e ed a t an g i bl e w ra p p er a ro u n d i t

80 F o r a m o r e t r a d i t i o n a l a n d d e e p e r t r e a t m e n t , s e e H B R o n E n t r e p r e n e u r s h i p , H a r v a r d U n i v e r s i t y P r e s s , 1 9 9 9 .


f o r c u s to m e rs t o v i s ua l i ze th e v al ue y ou r i d e a

cr ea te s . Fo r a s e r vi c e s s ol u t io n, y o u n e e d

in fr a- s t ru c t u r e ; f or a t ec hn ol og y pr o d u c t, yo u

ne ed a f in is h e d, pa c k ag e d , a nd w o r k in g e d it i o n ;

fo r a c o n ce pt , y ou ne ed a pi lo t. I n mo s t c as es ,

yo u n ee d he l p to b u i l d it . In ve ry ra re c as es ,

yo u m ay b e a b l e t o b u il d i t b y yo ur se lf . I f yo u

ne ed h el p, d o yo u kn o w e no u g h a b o u t y o u r

pr od uc t to s e l ec t t h e a p p r o pr ia t e p a r t n er s a n d

ve nd or s ? Ho w w i ll t h ey be co mp en s a t ed ? B ey o n d

co mp en s a ti o n , wh o c a pt u r es t he e co no mi c re nt s

fr om f ul fi ll i n g t h i s n e e d ? Yo u, t he o ri gi na t o r

of t h e i de a; th e y , t he ma nu fa c t ur e r of t h e

id ea ; or t he c ha nn el , th e ul ti ma t e d i st r i bu to r

th at t o u ch e s t h e c u st om er ?

Mi le st o n e nu m b er t w o —t h e cu st om e r . We h av e

al re ad y to u c h ed o n th i s i n th e pr e v i ou s

ch ap te r , b ut I t hi n k t h e qu es ti on s ar e

im po rt a n t e n o u g h t o b e re pr o d uc e d h e re a ga in :

1. W ho a re y o u se l l in g to ?

2. W hy w il l t h e y b u y it f ro m yo u ?

3. W ha t ’ s i n i t f o r t he m?

4. W ho w il l s e l l i t ?

5. C an y ou s e l l i t ?

6. D o yo u kn ow a ny on e wh o ca n b e a re ad y

cu st om e r t o d a y ?

7. D o y ou k n o w a c us to me r wh o wi ll fu nd t h i s

fr om d a y o n e a n d b u y it w he n it ’ s r e ad y ?

Mi le st o n e n um b e r t hr e e —e c o no mi cs . C an y ou st il l

ma ke m o ne y w hi le d o in g a ll of th e a b o ve ? A l s o

co ns id e r t h e s e qu e s ti on s:


1 . Ho w lo ng wi ll i t t ak e t h e b us in es s t o re ac h

pr of it a b il i t y ?

2. I s p r of it a b il i t y su st a i na b l e, s ea s o na l, o r

er ra ti c ?

3. W ho d o y ou n ee d to r un i t ?

4. C an y ou h i r e t h e m? W il l t h ey w o r k f o r y ou ?

5. H ow s en s i t i v e a r e yo u to e co n o m i c c y c le s?

Mi le st o n e n um be r fo ur —t he en d ga me . Yo u h a v e

ma de i t wo r k , n ow w ha t?

1. W ha t is i t w or t h t od ay ?

2. W ha t wi l l i t b e wo rt h to m o rr o w ?

3. D o y o u w a n t to s el l it ?

Ho w d o yo u m on e t iz e t he ca pi t a l i n v e s tm en t

(h um an , fi na n c ia l , an d o t he r) m ad e o v e r th e

fo ur m i le s t on es ? D o y ou pl an o n ho ld in g i t

fo re ve r a n d c ol le ct i n g y ou r p r o f i ts u n t il th e

en d o f ti me ? I s th e b us i ne s s mo re v a l ua bl e t o

yo u o r m or e v al u a bl e t o s om e o n e w ho i s w i ll in g

to b uy i t f r o m yo u ?

Yo u ne e d t o h av e a n e x it st ra te gy i n m in d

be fo re y ou c o mm i t y ou r s el f to t he v e n t ur e a n d

ma ke y o ur fi rs t m o v es . T he en d g am e d ic ta t e s

wh at y ou r op en in g mo v e s w il l b e . I t a ls o

di ct at e s t he i nt e r me di at e mi le st o n es y o u h av e

to h it b ef o r e y ou c an r ea ch y ou r d e s ti n a ti on .

Cl os ur e , r e l o a d ed

Fi ve p o i nt s b e f or e we c lo se .

a . F ir s t , th er e a re n o ri gh t an sw er s t o th e

q ue s t io ns a b ov e.


b . S ec o n d, yo u n e e d to be r e a li s t i c wh en yo u

a ns w e r th e m —n e i th er c on se rv a t iv e no r

o pt i m is ti c , ju st r ea l i st i c 81.

c . T hi r d , ea ch o f t he a bo ve m il es to n e s i s a

c he c k p o in t . I n ve s t me nt m a de pr i o r t o t h a t

c he c k p o in t i s a s un k 82 c o st . W ha t e v e r yo u

d o p as t th at mi le s t on e i s no t g o in g t o

b ri n g t ha t m on ey b ac k. I t is g o ne . D o n’ t

l et t h a t a ff ec t y o u r d e c i si o n . H ow ev er ,

i nv e s tm en t e x p ec t e d i n t h e f ut ur e i s n ot a

s un k c o st . Y o u ca n st il l sa lv a g e it .

B ef o r e y ou in ve st ad di t i o na l c ap it al ,

e va l u at e i f t he p ay o f f f r o m t h a t

a dd i t io na l i n v es t m en t w i l l al l o w y ou t o

e ar n a d ec en t r e t u r n. If i t d o e sn ’ t , t ur n

i n y o ur f a i t h an d wa l k o u t .

d . P oi n t nu mb er f ou r : Re me m b er t h at t h i s i s

b ui l t on a s af e v i e w o f t he wo rl d. T h er e

w il l a l wa y s b e ex c e pt i o n s t h at w il l b r ea k

t he f r am ew or k . A t s om e p o i nt d u ri n g y ou r

l if e , y o u w il l t ak e r is ky b e ts ; at o t he rs ,

y ou wi ll o p t f or t h e s a f e ro ut e. O n l y yo u

c an de t e rm i n e w he n t o m ak e w hi c h c a l l; th e

f ra m e wo rk c a n ’t h e lp y ou . A l l t h e

f ra m e wo rk d oe s is p ro vi de m il es to ne s a n d

q ue s t io ns th a t wo u ld n o t a l l ow yo u t o m ov e

f or w a rd a nd ma ke a dd it io n a l i n v e st m e nt s

u nl e s s yo u k no w wh at y ou a re d oi n g.

81 W h a t i s r e a l i s m ? W i t h r e v e n u e s – m o n e y t h a t y o u c a n t a k e t o t h e b a n k w i t h i n a q u a r t e r , i f n o t e a r l i e r ; e v e r y t h i n g e l s e i s o p t i m i s m . 82 S u n k c o s t . A m o u n t t h a t h a s a l r e a d y b e e n i n v e s t e d ( s p e n t o r e x p e n s e d ) a n d s h o u l d b e i g n o r e d f r o m a c a s h f l o w b a s e d d e c i s i o n m a k i n g p e r s p e c t i v e .


e . F in a l ly po i n t n um be r f iv e: on t h e q u e st io n

o f fa i t h; t h e re w i l l b e ti me s yo u w o ul d

n ee d t o p r a y f or a m ir ac le a n d a m i r a cl e

y ou wi l l ge t. Th a t is a cc e pt ab le be ha vi o r .

I w o ul d b e w o r r ie d i f y o u w e re no t p ra y in g

f or m i ra c l es a fe w t im es a ye a r ,

e sp e c ia ll y i n yo ur e a r li e r d ay s.

B ut t h en if yo u n e e d a m i r ac le at ev er y

f or k i n t he ro ad , y ou ar e i n t he wr on g

b us i n es s. Jo in t h e mi r a cl e p ed a l i n g

i nd u s tr y. Pr a y in g a n d h op in g fo r m ir a c l e s

i s a b ig di s t ra c t io n a nd a s y o u r b us i n es s

m at u r es an d g r o ws t he ne e d f o r th es e a ct s

o f G od sh ou l d re du ce dr a m at i c al ly . I t i s

n ot t h at d i v in e i n t er v e nt io n s h o ul d n o t b e

p ar t o f y o ur b u si ne ss st r a te gy – it

c er t a in ly h a s it s p la ce ; j u s t re m e m b e r t ha t

i f y ou n ee d i t r eg u l a rl y t h a n t h e r e i s

s om e t hi ng w ro ng w i t h y ou r p r es c r ip t i o n ,

y ou r b u si n e ss m od el or y o u r s t r a te g y 83 a n d

y ou n ee d t o fo cu s o n fi xi ng t ha t i n s t ea d o f

t ry i n g t o f i gu r e o ut wh y yo ur pr a y e r s

a re n ’ t be in g a ns we re d .

Wh y st op he r e ? Su re ly t he re a r e mo r e wa y s t o

sc re w up an d si nc e w e ar e o n t h e s ub je ct , wh y

th es e an d w h y t hi s or d e r ? Th e r e ma y b e a

th ou sa n d wa ys t o k i l l y ou r bu si n es s , b ut th es e

ar e t h e o ne s t ha t I g o t ar o u nd to t r yi n g b ef or e

I ra n ou t of c as h an d Fa w z i a t o o k aw a y m y

cr ed it c ar ds . My b il ls , m y de bt s , a nd I c a n

83 N o t n e c e s s a r i l y i n t h a t o r d e r


v o uc h f or th e i r e f f ec ti ve n e ss . T he o r de r

re fl ec t s my p e rs o n al b ia se s a n d th e im pa ct t h e

mi st ak e h ad on my bu si n e s s a nd f i na nc ia l

he al th . I t a ls o r e f le c t s t h e l i k el ih o o d o f m y

re pe at i n g t hi s m is ta k e ei th e r be ca u s e i t s ne a k s

up o n y ou a n d be f o r e y ou r ea li ze i t y ou h a v e

ta ke n t he b ai t a nd sl ip pe d; o r b ec a u se it i s s o

el em en t a ry t h a t y o u fi nd i t h ar d t o b e li e v e

th at a ny on e co ul d b e s o d im t o f a l l fo r it —

un ti l y o u a c t u a ll y go o ut a n d d o i t yo u r se lf .

Th at i s ro un d ab ou t my s to r y . I h op e y o u

le ar ne d as m uc h by r ea di ng i t as I d id b y

pu tt in g it d o w n o n pa pe r.

My la s t p ar t i ng w o r ds of ad vi c e – Go a he ad a n d

gi ve d e st i n y a s pi n. Gi v e y ou rs el f a br e a k an d

do s om e th i n g in te r e st i n g a nd m ea n i n g f ul w i t h

yo ur l i fe . S t an d f or s o m e th i n g. Do n ’ t wa i t fo r

yo ur Sa rw a r t o s ho w u p . A n d if y o u ha ve as m uc h

fu n as I d i d an d n ee d to s te p b ac k a n d r e c o ve r

yo ur sa ni ty , r em em be r t h er e i s n o o th er th er ap y

li ke w ri ti ng a bo o k – es pe c i al ly i f i t ta k e s

fi ve y e a rs .


Appendix A

The Cast of Characters

A qu ic k no t e f o ll o w ed b y lo n g d e s c r i pt i o ns .

Th e c h ar a c te rs de sc r i b ed he re p la y e d a n

im po rt a n t r ol e i n m y l i f e at Co lu mb ia an d i n

pr e- a nd p os t- Av ic e n a d ay s. M or e de ta il ed t ha n

a t r a di ti on a l ca s t o f c ha r a ct e r s, th e

de sc ri p t io n s an d th e f ol l o wi n g t im e li n e s a r e

ha lf t he A vi ce na s to r y . I n t h e sp i r i t o f

au st er i t y, I ha ve d ed ic at e d a q u a r te r of t h i s

vo lu me t o th em . A m or e g e ne r o us a nd e lo qu en t

mo od w o ul d h a v e re su l t ed in a s ep a r at e b o o k . A s

a re a d er I wo ul d gi v e bo t h s ec ti on s th e

st an da r d ca st o f c h a ra c t er , t im e l in e t r e at me nt —

sk ip a nd co m e b ac k l at er i f a n d w he n y ou n ee d

to .

Ka ma r B a kr i n K am a r a rr i v ed at s c h oo l a n d

on t h e fi r s t d ay b ro k e a le g. Li t e r a ll y . A

ba sk et b a ll f a n a t ic , h e t wi st ed hi s a nk l e o n th e

co ur t o n d ay on e a nd th e n wa lk ed th r e e b lo c k s

to sc h o ol on cr ut c h es fo r t he ne xt t w o m on t h s

in s no w, s l e e t, a n d su b- ze ro t em pe ra t u re s . A

ch ar te r e d ac c o un t a nt ( CP A eq ui va l e nt f r o m th e

Br it is h si d e o f t h e pl a n e t ) t u r n e d co ns ul ta n t ,

Ka ma r wa s pr ob ab ly t he m o st d r i ve n f r ie n d i n

ou r b a t ch . K en , A r n o, a n d I w e r e c on te nt a n d

ea sy -g o i ng . I f we di d w el l , w e d id we ll ; a n d i f


w e d i d n ’t , i t w as o ka y — d is ap po in t i ng , b u t st il l

ok ay .

Ka ma r ha d to m ak e a n i m pa c t , ha d to m ak e a

di ff er e n ce . H e wa sn ’t h u n g ry i n th e t we n t is h

se ns e o f th e w or d , no r a m bi ti o u s. K a ma r w a s

an gr y. Sc h o o l wa s j us t o ne ou tl et wh e r e h e

co ul d v en t h is a n g e r a n d g ai n t he re sp ec t w e

kn ew h e de se rv e d . W e j o k e d a bo ut hi s d es ir e t o

tu rn d o wn an o f f er f r om Mc K i ns ey s i nc e t h e y ha d

ma de t h e mi st a k e o f t el li ng h im he wa s n o t g oo d

en ou gh fo r t h ei r d om es ti c p ra ct ic e i n hi s l if e

pr io r t o B -s ch oo l. He we nt ah e a d a nd di d j u s t

th at b ef or e jo in in g Bo s to n Co ns ul ti ng G ro up i n

Bo st on . F iv e y ea r s la t e r , h e i s n ow t h e D ep ut y

Ma na gi n g D i r e c to r o f a la rg e t e l ec o m o pe r a to r

in N ig e r ia .

Ar no G o b oy a n A rn o a nd I h a d r ea ll y me t

th e fi rs t t i m e wh e n h e w as d yi ng f or a sm o k e

an d I n ee d e d so me f re s h ai r . W e ha d r un i n t o

ea ch o t he r a n um be r o f t i me s b ef or e, in c l u d in g

at t he ex e m p t io n e x am fo r co rp or at e fi n a n ce ,

bu t i t to ok a d r iz zl y e v e ni n g b y U ri s D e li f o r

th e i n t ro d u c t i on s t o h ap p e n. I th in k i f t h e

Fr en ch ha d Bo nd ( “ Th e n a me is B on d, Ja me s

Bo nd ”) , h e wo ul d p r o ba b l y l oo k l ik e A r no . T ha t

is th e e as i e s t w ay to de sc r i be hi m . Ta l l, da rk ,

wi th a sl i g h t Fr en ch a c c e nt a n d a t o uc h o f

cl as s, p ac k a ge d v e r y we l l t og e t he r a s a l o y a l

fr ie nd . B y th e t i m e w e tr av el ed ou r i nd iv id u a l

pa th s to b u s i ne s s s ch o o l , he w as f i n a nc i a ll y

co mf or t a bl e e no ug h t o b e b or e d . H e ha d m a d e

hi s k i ll in g an d w a s l o o k in g f o r s om e t hi n g

di ff er e n t a n d ex c i ti n g . S up e r fi c i al it y i n


i d ea s, id e a l s , a n d p eo pl e i r r i t at e d hi m an d h e

li ke d hi s f r ie n d s t o be j us t a s s op h i st i c a t e d

as h i m se lf . A rn o j o in e d Cr ed it S ui s s e Fi r s t

Bo st on in Lo n do n i mm ed ia t e ly af te r s c ho ol a n d

no w ru n s a n M & A a d v is or y fi r m i n P a r is .

Ke n Ba t e s K en w as t he m os t m a t u r e a n d

st ab le me m b e r of o u r g r o up . A f at h e r o f f o u r

ki ds a nd a f or e s t ry m aj o r f ro m th e s e ve n t i es ,

at 4 2 he w a s a l s o t h e o ld es t me mb er o f th e

te am . Ta ll a n d sl i m li ke A rn o, Ke n h a d a m or e

we at he r e d f a c e b l e s s e d w i th d ee p sm il in g ey es .

He e n j o ye d t e ll i n g p eo pl e t ha t he w as no t

re la te d to N o r ma n B a te s o f “P sy ch o” f am e. A s

wi th A rn o, w e h a d r un i n t o e a c h o t h e r a fe w

ti me s i n c la s s d is cu s s io n s . I t t oo k a mo m e n t i n

th e p r i nt e r s ’ r oo m w h e n I p a s se d h i m a d r a f t o f

my ar ti c l e fo r B o t t o m Li ne , o ur s c h oo l

ne ws pa p e r, a n d he w as h o ok e d . Th en f o l lo we d

nu me ro u s at te m p ts to pr o d u c e “ H a r v ey ,” t h e M a r y

El le n C ha s e p la y a bo ut t h e s ix -f oo t i n vi si b l e

ra bb it , w hi c h br o ug ht us ev en c l os e r . K en wa s

a d ee p l y r el ig io us ma n a nd to a g re a t ex te n t ,

ou r f a i th , s tr en g th o r l a ck of i t , b r o ug h t an d

ke pt u s t og e t h er b ef or e, du ri n g , a n d a f te r

Av ic en a . Ke n w en t b ac k t o r e jo i n Hu d s on Ri ve r

In la y a s i t s p re si de nt b e fo r e t a ki ng c ha rg e o f

a g l o ba l y ou ng pr of es s i on a l s’ or g a ni z a t io n

sp on so r e d a nd ru n b y h is ch ur ch . A s o ur fi r s t

be ta c u st o m er , w e r el ie d h ea v i ly on h i m as a

se co nd p ai r o f w e ll - g ro un de d ey es . O ve r t h e

la st f i ve y e a rs K e n ha s no w t ur n e d in t o a

tu rn ar o u nd s s pe c i a li st a n d i s b us y c r e at i n g

va lu e as a C E O w i th a s ma l l b us i n e s s i n

Fl or id a .


Sy ed S a b oo r I ha v e ne ve r k no w n a ny o n e

wh o h a s a ct u a ll y m e t J e n ni fe r Lo pe z b e si de s

Sa bo or . T he y s ha r e d t he s a m e g y m a f e w s t re et s

aw ay f r om Sa b oo r ’ s o ff ic e i n l ow er M a n ha tt a n .

Fa wz ia ’ s fi rs t co us in , S a b oo r B h ai ( U r d u fo r

“e ld er b r o t h e r” ) , a s w e lo v i n g ly c a l le d h im ,

pi ck ed us up a n d d r op p e d u s o f f at a i rp o r ts ,

ch os e o ur a p a rt m e nt s, ne g o ti a t ed o u r le as e s ,

ta ug ht us ho w t o c r os s t he s t r e et , c at ch t h e

su bw ay , o rd er ta k e - o ut , s h o p, d o ou r g r o ce ri es ,

an d wa lk a nd l iv e in N ew Y or k l i k e a N e w

Yo rk er . Sa b o o r wa s on e o f t he f ir st i nv e s t or s

in A v i c en a , t he fi rs t ou ts i d e r to s ee th e

bu si ne s s p la n , an d th e m o st f r eq u e nt ly u s e d

so un di n g b o a r d f o r p ro d u c t id e a s , p i t c h es , a n d

st ra te g y ou t s i d e o f o u r m a n a g em e n t t ea m . H e an d

Sa di a, h is w i fe , st i l l ru n ou r fa v o r it e

cr as hi n g s p o t ou t s id e o f o u r ho m e i n

We st ch e s te r C o u nt y , N ew Y or k .

Ra lp h B i gg a d i k e I h a d h ea r d go o d t hi n g s

ab ou t R al p h be fo re I w al ke d i n t o m y f ir s t T M P

cl as s ( sh or t f or “ T o p M a n a g e me nt P r o c es se s ” ). A

gr ou p p re s i d e n t f ro m B e c k t in & D ic k i n s o n, th e

ne ed le m an u f ac tu ri n g f ir m , Ra l p h wa s a b o r n

te ac he r . W e t oo k S tr at eg y an d T MP w i th h i m .

Wi th a ny on e el se , b o th w o ul d h a ve b e e n f l u f f

su bj ec t s . W it h Ra lp h, t h e y t u r n e d i n t o po we r

Tu es da y s a s h e t oo k a g ro up o f 3 0 s tu de n t s an d

ta ug ht th em t o t hi nk a nd ac t li ke ge ne r a l

ma na ge r s . R al ph w a s al so o n e of t he fi rs t

pr of es s o rs t o s ec o n d th e b u si n e ss p l an , t h e

on ly t ea ch er wh o a g re e d to c om e o n b o ar d a s a


f a cu lt y a d v i s o r. He w e nt o n to wi n t h e

Di st in g u is h e d Te a ch in g Aw ar d th e sa me y ea r an d

re ce iv e d a s t an di ng ov a t i o n f ro m h i s s tu d e nt s

du ri ng o ur co m m e n c em en t c er e m on y . H e st i l l

in sp ir e s f ut ur e g en e r a l m an a g er s at t h e

bu si ne s s s c h o o l i n Ne w Yo rk .

Al ep h I n c. A t e c h no lo g y s o l u ti on s

co mp an y ba se d i n S a nt a A na , C a li fo rn i a t ha t

ac te d a s o ur in c u b a to r a s w e l l a s F a w zi a’ s

em pl oy e r . A l e p h p r o v i de d of fi ce s pa ce i n Sa nt a

An a a n d K ar ac h i , d ev e l op m e nt an d a d mi n i s t r at i v e

ta le nt i n b ot h of fi c e s , ma na g e me n t ex pe rt i s e

an d c u s to m e r in t r o d uc t i on s o n t he W e s t C o a s t ,

an d f u n di ng a n d fi na n c in g s u p po r t o n an a s - an d

wh en -n e e de d b a si s . Wi th ou t t he m t h er e w ou l d n’ t

be a n A vi c e n a t o lo ok b a c k a t a n d w r i t e a b oo k

ab ou t. W e a ls o c ol la bo r a te d o n a n u m be r o f

no n- Av i c en a p r o je ct s . T h e f al l o f A v i c e na , t h e

te ch no l o gy m e lt d o wn , an d th e re c e s si o n i n

Ca li fo r n ia h i t Al ep h v er y h a r d a nd it s te a m wa s

do wn si z e d d ra m a ti c a ll y w i t h i n s i x mo nt hs of M a y

20 01 .

De ni se D av i e s V P O p er at i on s at Al e p h

Re sp on s i bl e f o r r u nn i n g th e C al if o r ni a o f f ic e s ,

pa yr ol l , m ar k e ti n g , bu si n e ss d e v el o p me nt , a n d

te ch no l o gy p r o je c t ma na ge m e nt fr o m h er of f i c e s

in K ar ac hi a nd S an ta A na . A m o n g h e r m an y

ta le nt s , De n i se ma d e a m e an m o rn in g s ha k e ,

ch ur ne d ou t pr op o s al s a n d co n t ra c t s at a n

in hu ma n p ac e , wa s a g r e at b a by si tt e r (f o r Am i n ,

ou r s o n , a s w el l a s o th e r ps e u d o- a d ul ts in th e

Av ic en a - Al e p h te a m) a nd s ha re d ou r pa ss io n fo r

ea rl y- m o rn i n g w al ks o ff th e cr ee k in Ne w p o r t


B e ac h. D e ni se r e c e nt l y fe ll o ff t h e m ap a n d

di sa pp e a re d c om pl et e l y f ro m ou r li v es e xc e p t

fo r oc c a si o n a l em a i l ex ch an g e s w i t h Fa w z ia .

Fa ha d & Ap p s y s B ac k - en d de v e lo p m e n t t ea m

in K a r ac hi . Fa h a d , a fo r m er s t a r st u d en t f r o m

my c om pu t e r s ci e n ce t ea c h i ng d a y s, b e c am e a n

ow ne r of a s m al l s p ec i a li ze d sh op t ha t bu il t

th e J a va en g i ne b e h in d A vi ce na ’ s f ro n t e nd .

Fa ha d st il l ow n s A p ps y s a nd s t i ll o p e ra t e s it

fr om t he s am e p r e m i s es h e h a d d ur i n g Av i c e n a

da ys .

Al ep h K a ra c h i F ro n t -e nd d e v e lo p m e n t te am .

Al ep h Ka ra ch i to ok p ri m a ry r es p o ns ib il i t y fo r

ge tt in g ou r p l at f o rm o ut . T h ey d i d t h e fr o n t

en d, h o st in g, q ua l i t y as su r a nc e, a n d te c h n ol og y

in te gr a t io n w i t h F a ha d’ s wo r k .

As ha r Z a id i O ff s h or e Pr o j ec t Ma na ge r

an d my r ig ht -h an d m a n i n Pa k i s t an . J u st l i k e

Fa ha d, A sh a r wa s al so a n e x st ud en t an d

co ll ea g u e f ro m c o n s u l ti ng da y s . C om bi ne t h e

pa ss io n of a f ir e -b r e at h i ng mu l l a h, t h e

te na ci t y o f a pi t b u l l , a n d t he d r i ve o f a

Pr at t a nd Wh i t n ey en g i ne an d y ou wo ul d h a v e th e

pa ck ag e t ha t i s A sh ar . P o i nt hi m i n t he ri g h t

di re ct i o n, li gh t h i s fi re , a n d l e t hi m g o . I

as ke d hi m to du m p h is p e r ma n e nt p os it io n an d

gi ve t he s ta rt up l if e s t yl e a s h ot a n d h e

ag re ed . He no w wo rk s a s th e c ha n n el sa l e s

ma na ge r fo r I n t el i n Pa ki st a n .

Sh ar le e n G h a u r i C on t e nt Ed i t or . As h a r’ s

fi rs t h ir e b ro ug ht in t o ta ke ov e r c o n t e n t


r e sp on s i bi l i t i e s. Sh ar le en to o k o ve r c ou rs e

de ve lo p m en t a nd co n t en t w o r k s o th at As ha r

co ul d mo ve o n to te c h n o l og y a n d e x e cu t i on

re sp on s i bi l i t i e s. W h e r e A s h a r w a s ni tr o f or o u r

te am , S ha rl ee n b ec am e t he s t ab i l iz er . T w o ye a r s

af te r Av ic en a c ra s h ed a n d bu r n e d, As h a r an d

Sh ar le e n go t ma r r i ed a nd n o w l i v e ha pp il y e v e r

af te r i n La h o r e w h er e S h a rl e e n l oo k s a f te r

In te l’ s ed u c a t i on i ni ti at iv e in P a k i st a n .

Dy la n St e e g , Jo e Ro o n e y, W hi sk ey K en , C a r l o s

De sm ar a s , K e n C ra d d oc k

Fr ie nd s , c l a s s , a nd gr o u p m at es fr o m C ol u m bi a

Bu si ne s s Sc h o ol n o w w o rk in g i n N ew Y o rk ,

no rt he r n Ca li f o rn i a , a nd Ja p a n. Dy l a n c am e f ro m

an en gi ne er in g b ac k g r ou nd an d w en t b ac k t o w or k

fo r a VC f ir m ba c k w e st . Jo e ca me f ro m

op er at i o ns an d to ok u p a n ot -f or -p ro f i t r ol e

af te r sc ho ol . W hi s k ey K e n c am e fr om J ap a n a n d

ac tu al l y we nt ba c k t o s ta rt h i s o wn s ho w i n

To ky o. We c r o s se d r o a ds d u r i ng o ur pr e s e n ta t i o n

to Sa k u r a a n d ha v e s ta ye d i n t o uc h . Ke n is n o w

th e C F O fo r La n d s ’ En d i n J a p a n . C ar lo s c a m e

fr om i n ve s t me nt b a n k in g a n d, li ke m e , us e d th e

sc ho ol to p o li s h hi s b u s in e s s p la n f or hi s

pe rs on a l ve nt ur e . H e s ta y e d w it h i t f or a y ea r

be fo re j oi n i n g a po we r co m p an y f ir s t i n

Lo ui si a n a a nd th en Ne w J e r se y . He is no w b a c k

wi th h i s pr e - bu s i ne ss - s c ho ol e mp lo ye r i n N e w

Yo rk . K en C r a d do c k w a s J o h n W hi t n e y’ s r es ea rc h

as si st a n t a n d a h is to ry m aj or a t Co l u mb i a . W e

cl ic ke d f ro m t he f i r st da y w e m e t a nd Ke n ’ s

wo rk in g s pa ce b e c a m e t h e sh el te r I w ou ld d r i f t

to w h e n I fo un d m y s el f a t sc ho ol l o n g af te r

gr ad ua t i on .


Cl us te r X F ri e n ds . C l a ss o f 6 0

st ud en t s wi th w ho m I s t a rt e d b us i n es s s c h o o l

an d w h o s ta y e d t og et he r fo r t h e f i rs t t w o

te rm s.

TM P Gr o u p F ri e n ds . Cl as sm at e s f ro m

To p M a na ge me n t P ro c e ss e s , th e R a lp h B i gg a d ik e

co ur se .

Pe ar so n Co n t a c t B us i n es s De ve lo p m en t

co nt ac t . S en io r e x e cu ti v e a t a Pe ar so n

su bs id i a ry w e m et wh en w e w ro t e th e P e ar s o n

St ra te g i c I n v e s tm e n t pr op os a l .

Ma nu fa c t ur e r s B an k B et a cu st om e r . A w ho l l y

ow ne d s ub s i di ar y o f Sa k u r a Ba nk in L o s An ge le s

th at wa s i ni ti al ly pi tc h e d o n t h e B an k E xc ha ng e

id ea b y A le ph an d l a t er a gr e e d t o b ec om e a b et a

cu st om e r f o r A v ic e n a.

Ch es co r e C a p i t a l V C f i r m o pe r a ti n g ou t o f

Du ba i an d fo c u s in g on r e g io n a l in v e s tm e n t

op po rt u n it i e s fr o m U A E. M oe z Mu za ff ar i wa s t h e

ma na gi n g p ar t n er f o r C he s c or e a n d th e k e y

pe rs on wi th w h o m w e d ea lt d u ri ng t h e f ir s t h al f

of 2 00 1. He d ie d o f a h e a rt a t t ac k a ro un d th e

sa me t im e h e ha d pr om i se d we w ou l d g e t a

de ci si o n ou t o f C he s c or e . C h es c o re co n t i n ue s t o

ru n th e of f s e t 84 f u n d o u t o f D u ba i .

84 E a c h d e f e n s e c o n t r a c t o r f o r t u n a t e e n o u g h t o r e c e i v e a n o r d e r i s a s k e d t o c o n t r i b u t e a n a m o u n t t o a f u n d m a i n t a i n e d a n d o p e r a t e d b y t h e g o v e r n m e n t o f U A E c a l l e d t h e o f f s e t f u n d . T h e f u n d i s t h e n u s e d t o i n v e s t i n


Re em a F a qu i h M y f ir st co u s i n f ro m

Bo mb ay , a ch a r te r e d a cc o u nt an t 85 w i t h fo u r ye ar s

of b u s in es s ad vi so r y a nd a ss u r an ce e x p er ie nc e

wi th A nd er se n Wo r l d w i de i n In di a. R ee ma j oi ne d

wh en w e we re d y i n g as a b us in es s a n d de vo te d

tr ia ge - s ty l e e f fo r t a n d c ou n t le s s h o ur s t o s av e

wh at w e ha d c r e a te d o ve r t w o ye ar s . Wi th o u t he r

su pp or t a nd h e lp , I w o u l d ha v e gi ve n u p m uc h

so on er . W it h h e r, th e l as t t wo mo n t hs b ef o r e w e

pu ll ed th e s hu t t er s d o wn b e ca me th e m os t

pr od uc t i ve t i m e w e s pe n t in C a l i fo r n i a . Af te r

Av ic en a sh e w e nt ba ck t o I n di a t o wo r k f or a

no n- pr o f it th a t e d uc a t es s t r ee t c h i ld re n. Re em a

ju st g ra du at e d fr o m N YU ’ s Ma s t e rs in P ub l i c

Ad mi ni s t ra t i o n pr o g ra m.

Pr of es s o rs a n d co u r se s ‘

Jo hn W h it n e y ta ug h t “I n S e ar c h of a P e r f e c t

Pr in ce , ” a se l f - aw ar en es s c o ur s e th a t u se d

Sh ak es p e ar i a n p la y s a s a b a c kd r o p f or a n a l yz i n g

le ad er s h ip c r i si s . B ru c e G re e n wa ld t a u gh t t h e

al wa ys in -d em an d “E c o n om i c s of S t ra te gi c

Be ha vi o r ” t ha t f i n a l l y a n s we r e d m y q ue st io n

ab ou t wh y s o m e b u s i ne s s e s ma k e m on ey w i t h o u t

re al ly t ry in g wh il e ot he r s t u r n i n t o fi n a n c ia l

bl ac k ho l e s. G le n n H ub ba rd i nt ro du ce d

“E nt re p r en e u r i a l F i na n c e ,” a s t ud y o f 1 2

bu si ne s s pl a n s a nd ne w v e n t u r es t h a t fo c u s e d o n

fu nd in g , v a l u a ti o n , t he i n ve s t me nt t er m s h e e t ,

l o c a l b u s i n e s s e s a n d c o m p a n i e s t h a t c a n d i r e c t l y c o n t r i b u t e t o t h e e c o n o m i c g r o w t h o f U A E . 85 A C P A e q u i v a l e n t p r o f e s s i o n a l d e s i g n a t i o n b u t w i t h a c u r r i c u l u m d r i v e n b y B r i t i s h a c c o u n t i n g p r a c t i c e s .


l a un ch e s , a nd gr o w t h ch a l l e ng es . D on S e x t on l e d

“I nt er n a ti o n a l M a r k e ti n g ” a n d “ A d v e rt i s in g

St ra te g y ,” tw o c ou rs e s th at pr o v i d ed t h e m en ta l

so up , fr am ew o r ks , i n sp i r a t i on , a n d a s s ig n m e nt s

fr om w hi ch t he o r i gi na l bu si ne s s p la n f o r

Av ic en a em e r g ed . La ur a Re sn ik o f f t au g h t

”T ur na r o un d M a na g e me nt , ” a c ou r s e th a t w al k e d

th ro ug h t h e e ss en ti a l sk il ls r e q u i re d t o s av e

dy in g c o mp a n i e s .


Appendix B

Avicena Timelines

Sp ri ng 1 99 9

De ci de to fo l d C oo ka ra ch a G ui de s w h i l e t r y i n g

ha rd t o n o t f lu nk “ C o n t i nu o u s Ti m e F in a n c e. ”

Th e on e P h D c ou r s e I t oo k in m y f i r s t t e r m ha s

ta ke n o n a l if e o f it s o wn a n d c on ti nu ou sl y

th re at e n s to d is f i gu re m y pr is ti n e t ra n s cr i p t

wi th a n F . F i gu r e d I c ou l d u se t he g u i de s a s a

te mp la t e fo r c la s s pr o je c t f o r D o n ’ s co u r s e an d

sa ve s om e w o rk . C l a ss p r o je c t a ls o d e ci d e s to

ta ke o n l if e of i ts ow n an d Av ic en a i s bo r n .

Am az in g th a t s om e t h i n g i n s p ir e d b y s l o t h c o u l d

fo rc e m e to wo rk 2 0- ho ur da ys f or th e n e xt tw o

ye ar s.

Ap ri l 1 9 99

Di sc us s dr af t b us i n es s p l an w i t h K en , Ar no ,

Ka ma r, a nd J a ys o n g fo r a re al i t y ch e c k . Q u ic k

re vi ew of C Ne t, W S J, F A ST C o m pa ny a n d W i r ed

in di ca t e s sp ac e i s m o r e o r le ss e m p t y .

Al ta vi s t a s e a r c h a l s o r e tu rn s a bi g b la n k . F ai l

to di s c ov e r Q u is ic a nd Zo ol og i c , t w o fi rm s

al re ad y v er y ac ti v e in t he sp ac e th at ha d

al re ad y ra is e d s ub s t an t i al f un d i ng . D e ci de t o

fo rg e f u ll s t e a m a h ea d wi th t he v e n t ur e .

Th e Da y Af t e r

Co lu mb i a B us i n es s S ch o o l an no un c e s st r a te g i c

al li an c e w i t h U Ne xt , t h e Mi ke M i li k e n ve n t u r e

fo cu si n g o n s e ll i n g bu s i n es s sc ho ol c ou rs es t o


t h e u n su sp ec t i ng w o r ld . W S J fo l l ow - u p ar ti c l e

ta lk s ab ou t th e s i z e o f t he o n l in e e d uc a t io n

un iv er s e . Q ui ck v i s i t t o UN ex t si t e s h ow s t ha t

it su c k s a nd w e c ou l d ce rt a i nl y d o m uc h b e tt er .

Lo wl y in t e rn a t io na l st ud en t t ak es o n

bi ll io n a ir e f i na n c ie r wi t h T im M cG ra w si ng in g

“O nl y i n A me r i ca .” Ch e ck w i th o t he r t ea m

me mb er s s ti ll s h o w s de s i r e to f o rg e f u ll st ea m

ah ea d.

Ju ne 1 9 9 9

En ro ll i n n ew p r o du ct d e ve l o p m e nt c o ur se b y

Ja di di to fi rm up pr o d uc t o f f e ri ng . F ir s t fo cu s

gr ou p h el d i n bu si ne ss s c ho o l wi th c l a ss ma t e s

an d f r i en d s . St r o n g po si ti ve f e ed b a c k c on fi rm s

di st in c t di f f er e n t i a ti o n in f u nc ti o n al a n d

ps yc ho l o gi c a l at tr i b ut e s f ro m U N ex t a n d ot h e r

id en ti f i ed v e n tu r es i n t h is s pa ce . Fo cu s gr ou p

al so po i n t s t o w a r d a f a i r l y s t a bl e an d

co ns is t e nt m a r ke t p la ce i n th e b u si ne ss s ch o o l

en vi ro n m en t w hi ch a t r ea s o na b l e pr i ce p oi n t s

co ul d s us t a in th e b us i n es s f o r a n u m be r o f

ye ar s. U nf o rt u n at el y, o pp or tu ni t ie s fo r

co ll ab o r at i o n w it h C o l um b i a a re ru l e d o ut ea r l y

in th e g a m e d u e to UN ex t’ s e xc l u s iv it y

pr ov is i o ns .

Au gu st 1 99 9

Re se ar c h on Ja va , X ML , A SP , J S P , a nd Li n u x

co mp le t e d. F i r st pr ot o t y pe hi gh l i gh t i n g s i t e

de si gn , c o n te n t st yl e , a n d l i mi t e d

fu nc ti o n al i t y i s r ol l e d o ut on Co lu mb ia s t ud en t

ac co un t . S ta r t t hi n k in g a bo ut p ar tn er s an d

po ss ib l e p r o f i t- s h ar in g a r r an g e m e n ts to ge t

bu si ne s s o n t h e r o a d.


Fa ll 1 9 9 9

In it ia l d e s i g n do cu me nt f o r c or e f u nc ti on al i t y

as w el l as a rc hi te c t ur a l r e vi ew c om pl et e. W ra p

up f i n an c i al s a s pa rt o f c o ur se wo rk i n

“E nt re p r en e u r i a l Fi na nc e” (“ E- Fi na nc e ” ) w i t h

Gl en n H ub ba rd an d u pg ra d e bu s in e s s p la n t o n ex t

ed it io n . F i r m u p m a r ke t i ng st r a t e gy b y t ak in g

an ot he r co u r s e wi th D o n . Af te r E -F in an c e ,

fi gu re th a t a s l on g a s o n e c ou ld j u st if y w i th a

pr ec ed e n t, o n e c o u l d g e t aw a y w it h mu rd er i n

fi na nc i a ls an d v al ua t io ns . A ft er th e H s 86 ( A ) i n

bo th o f D o n ’ s co ur se g e t a no th er H ( A ) f ro m

Gl en n. A ga i n ch o s e to ig no re c o n tr a r i a n

in di ca t o rs a n d ca r r y on w it h fo r w a r d m o m en tu m.

De ce mb e r 1 9 9 9

Ke n i s o n bo ar d f u l l t im e. P i t c h j oi nt ly f o r

th e g r e en ho u s e in cu b a t io n wo r k sh o p af te r

si gn in g u p D av id B i em an d G l e n n as f a cu lt y

sp on so r s a n d a dv i s o r s . B u s i ne s s p la n i s c o m i n g

al on g n ic el y. O n a wh im de c i de to v i si t V i an t’ s

ca re er da y si n c e t he y s ou nd c oo l a n d se xy a nd I

wo ul d lo ve t o se e wh at I a m pa ss in g up b y no t

in te rv i e wi n g .

Vi an t tu rn s o ut t o b e a d re a m f it . T he y th i n k

li ke I d o , d r es s l i ke I do , a n d ev e n h a ve a n

of fi ce th a t I w o ul d li ke t o h a v e . Th e y us e

wh it e b oa r d s a nd mi nd ma p a nd ha ve r e al de s k s

ra th er th a n cu b i c l es . C ar r y o n i n t e r vi e w in g

86 C o l u m b i a B u s i n e s s S c h o o l g r a d i n g s y s t e m s t a r t e d w i t h H ( H o n o r s – A e q u i v a l e n t ) , H P ( H i g h P a s s - B ) , P ( P a s s - C ) , L P ( L o w P a s s - D ) a n d F a i l ( F ) .


w i th t he m a n d m a k e it al l th e wa y t o th e f i na l

ro un d w i th e a s e .

Po st F i n al s 1 9 9 9

Ke n g e t s an of fe r fr om h i s em p l oy e r . I g et on e

fr om V ia nt . Th ey l ik e m e bu t th e o f fe r i s a

sh ad e un de r ex pe ct a t i on s. D ec id e to t hi nk o ve r

th e i n sa ni ty of p as si ng a si x- fi gu r e s al a r y

wh il e m a in ta i n in g a c lo se -t o- si x - fi g u r e d e b t

lo ad d u ri n g t he br ea k at ho me i n K ar ac hi .

Le an in g t ow ar ds V i a n t a n d s or ti ng o u t th e s ho w

on t h e si d e be f o re 1 00 m i ll io n d ol l a r

co nv er s a ti o n w i th S ar wa r oc c u rs .

Ja nu ar y 20 0 0

Fi rs t we ek . W e re a c h a f ir m h a n d sh a k e o n th e

in cu ba t i on of fe r fo r Av i c e na f r o m S a r w ar an d

Al ep h. Wi th A l e ph ’ s s u pp o r t, we ar e a bl e t o ge t

Ap ps ys on b o ar d t he a p p l ic a t i o n de ve lo pm en t

si de . T h e E ug e n e La ng Fu nd ’s G re e n ho u s e

In cu ba t o r C ou r s e a t t he bu s i ne s s s c ho o l d e ci d e s

to p as s us u p. Th e co ur se o ff er ed a g ra nt o f

US $ 10 ,0 0 0 t o f l e s h ou t en t r e p re n e ur ia l i d e a

an d a ls o p ut t h e s h o r t -l i s t c a nd id a t es i n fr on t

of a n i nt e r na l fu nd in g pa ne l as we ll a s

ex te rn a l v e n t u r e c a pi ta li st s .

En d Ja n u ar y 2 0 0 0

Co me ba ck an d t ur n V ia n t do w n . S t ru ct ur e

co ur se w o rk an d c l as s s ch e d ul e a s a fu ll da y o f

cl as se s o n Tu es d a ys an d Th ur sd a y s. Re ma in i n g

fi ve d a ys a re no w f r e e t o wo rk on A v ic e n a . T ak e

pe rm an e n t r e s id e n ce in br ea ko u t ro o m s i n

Wa rr en . P ay fo r f oo d f r om d e li wh il e e ve ry th in g


e l se ( In te rn e t , w h i t e b o a rd s, a nd f ix tu re s) i s

ps eu do f re e ( p a id f or b y th e tu i t i o n ).

Sp ri ng 2 00 0

Bu si ne s s pl a n s, c o nt e n t , te c h n ol o g y, Al e p h

re la ti o n sh i p s , we b s i t e, l o g os , i n c or po r a ti o n ,

de si gn , f u n d i n g, fi na nc in g , gr ad u at i o n, da y

tr ad in g , hi ri ng , re lo ca ti o n . I t’ s a m a d , ma d

ru sh . D ow n t o sl ee pi ng t w o t o th r e e h ou r s a

ni gh t as I s ta r t c o or d i na ti ng m or e w i th Fa h a d

in K a r ac hi a nd Al e p h Or a n ge C o u nt y . F in d t h at

wh en i t co me s to a ll -n ig h t e rs , t e ch no , na c h o s ,

an d M ou nt ai n D ew to ge th e r wo r k b e t t e r t h a n s ex ,

dr ug s, an d r oc k a n d ro ll . T h er e i s a n i ne - h ou r

di ff er e n ce b e t we e n A le p h a nd A p p sy s ’ of f s h or e

of fi ce an d a t hr ee -h ou r d if f e re nc e be tw ee n u s

an d A l e ph i n C al if or n i a. W e w ak e u p a nd t h e y g o

to sl e e p an d t he s un ne v e r se t s on t h e Av i c en a

em pi re .

Sp ri ng B re a k 2 0 00

Ta ke a q u ic k t ri p t o s o ut h e rn Ca li f o rn i a t o

vi si t S ar w a r , D en i s e, an d A l ep h a nd lo ok a t

in cu ba t i on fa c i li t i es . L o v e a t f i r st si g h t e ve n

be fo re we l a nd a t J oh n W ay n e I nt e r na t i o na l

Ai rp or t . Ca li f o rn ia i s cl ea n , g re e n , an d

po li te . Co m p a r ed t o th e K ma r t c le rk r ea dy t o

as sa ul t m e w i t h h er P O S t e rm i n a l in NY C, t h e

gu y m a nn in g th e c h ec ko ut c ou n t er a t V o n’ s

ac tu al l y a sk s m e h o w I am d o in g a n d w is h e s m e a

go od d a y. I am sh oc k e d t o th e p oi n t of m um bl in g

me an in g l es s g i b be r i sh i n re s p on s e .

Sa rw ar ’ s ap ar tm e n t is ri g h t n ex t t o t he gy m , a

he at ed po o l o pe n y ea r- ro u n d, an d a s t r ea m t ha t


p r ov id e s s o o t h in g s o u nd s of r un ni ng w at er o ve r

a be d o f r o c k s a l l da y . S ar w a r a n d h is w if e

ha ve co nv er t e d t h e ir l o un g e /k it ch en to a

wo rk ab l e st ud y fi l le d wi th pr in t- o u ts , b a c ku p s ,

ha rd wa r e , an d in du s t ry m a g az i n es . Fa w z ia g e t s

an of f e r to jo in t he m a s a b us in es s a na l ys t o n

si te i n Sa nt a An a. On t he f li gh t ba ck t o N e w

Yo rk , t he t w o of u s a gr ee t ha t S o C a l wo ul d

ce rt ai n l y b e a n u pg ra d e o n o ur gr it ty li fe st yl e

in N YC a nd w ou l d be a g re a t p la c e t o r a i s e

Am in , w h o w i l l tu r n o ne n ex t mo n t h .

Ap ri l 2 0 00

Fa wz ia an d A mi n o f f t o s ou t h er n C a li f o r ni a

wh il e I st ay be h i n d t o f i ni s h c la s s p ro j e ct s

an d fi n al s . C on t i nu e t o in te rv i e w c an di da t e s

fo r po si ti on s in C a l if o r ni a an d f in d t h at n o

on e w a n ts to le av e N YC f o r s u n s hi n e an d f a i th .

Th e ex ec ut iv e - in - r es i de n c e p ro g r a m a rr an g e s a

fi rs t me et in g wi t h t he e x - c ha ir m a n o f D el o i tt e

& To uc he ; t h e m e e t i ng ac tu al ly g en er at es o u r

fi rs t b ig le ad o n t he We st C o a s t. Pa ck in g u p

an d c l ea ni ng th e ap ar tm e n t be c o me s t he n e x t

lo om in g ni g h t m a re .

Ma y 20 0 0

Go od by e N ew Y o rk , h e l lo s o u t h er n C al if or n i a. I

am h e r e an d I am i n co n t r ol . Mo ve i nt o

ap ar tm e n t a n d th e f ir s t ma j o r p u rc h a s in g

de ci si o n i s DS L . A l so u s e t h e y ea r ro u n d

he at ed po ol to fi n a ll y l ea rn h o w n ot to fl o a t

li ke d e ad fi sh in th e w a t e r. D i sc o v er th e j oy s

of t ak e o ut P e r s ia n an d re gi o n al C h i n es e fo od .


S e co nd m ee t i n g w i th D &T c o n ta c t i s v er y

po si ti v e . T h e p ar tn er w e me et o f fe rs t o

in tr od u c e u s t o t he l o c al a n ge l n et wo rk . S ar wa r

in tr od u c es m e to Ar iu Le v i , an en tr ep re ne u r an d

an ge l i nv e s to r, a n d we in vi te h i m t o ta ke a

se at o n ou r b oa rd . T w o mo r e i n v i t a ti o n s t o

bo ar d m em b e rs g o o ut w h i l e I g et b u s y w it h

in co rp o r at i n g A v i c e n a L LC . B u y de s k , o ff ic e

su pp li e s , p r in t e r, a nd ce l e br a te th e

Ca li fo r n ia n l if e s ty le b y ha vi ng ou r fi r s t

ma na ge m e nt m e e ti n g a t S o u p Pl an ta ti on , an a l l -

yo u- ca n - ea t s al a d ba r . W it h Sa r w a r’ s

bl es si n g s, s t a rt t a l k in g to m or e ca nd id at es t o

fi ll u p s en i o r ma n a ge m e nt ro l e s at A v i ce na .

Fi nd p ro mi si n g t a l e n t o ve rs ea s an d sp en d ho ur s

in te rv i e wi n g t h e m o n t he p h o n e. M C I b il l s ta rt s

ge tt in g c lo s e r t o f ou r d i gi ts du ri ng ou r

re cr ui t i ng d r i v e.

Ju ne –J u l y 2 0 0 0

Mo re h i ri n g c on v e rs at io ns . C on v e r t e mp lo ye e

nu mb er on e t o th e s ta r t up ca u s e w it h a f i r m

of fe r. St ar t l ay in g g ro un d w or k f o r f ir st - r ou n d

fr ie nd s a n d f am il y i n v e s tm e n t. S uc ce ss fu ll y

ra is e U S$ 7 0 , 00 0 w it h a U S$ 70 0, 00 0 v al u a ti on .

No t a l ot o f mo n e y t o go a ro un d n or a n

ou ts ta n d in g v a lu a t io n bu t it i s m on e y i n t h e

ba nk a n d m or e t an g i b le t h an th e p ie c e of p a pe r

I h av e be en c a ll in g a bu s in e s s p la n . It ’s a lo t

le ss t h an t h e US $ 8 –9 m il l i on va lu a t io n o u r

ad vi so r s we re pr ic i n g u s a t b ut I’ d r at he r d o

th e f i r s t r o u nd o n m y t e r ms t h a n o n t he i rs . G o

ou t a n d bu y l o ng - a wa i t ed w eb a nd d at a b as e

se rv er as we l l a s s of t w ar e c o m p o ne n t l ic e n se s

we ne e d to r o ll ou t f un c t i on al v e rs i o ns of ou r


s i te . M on e y al so a l l ow s u s t o r es e r ve bo ot h a t

So ci et y o f A ct ua ri e s e x h i b it i o n i n C hi ca go ,

pl an t h e b us i ne s s de ve lo p m en t t ri p, a nd s t a r t

pa yi ng s al a r i e s f o r r es ou rc e s i n P a k is t a n.

Au gu st 2 00 0

Bu si ne s s d e v e l op m en t tr i p s to N Y C , B o s t on , a n d

D. C. l ea d to s tr on g Sw is s R e , S oc ie ty o f

Ac tu ar i e s, a nd ER C Fr a n ko n a le a d s . G o o d

va li da t i on on co u r s e m a t e r ia l a nd a p p r oa c h .

St ar t th in ki ng a bo u t s wi t ch in g fr om a n

in di vi d u al f o c us t o a c or po r a t e o ne . L au nc h

be ta 87 t r ia l a t K en ’ s g ro u p , ta r g et i n g VP - l e v e l

re so ur c e s at s ub s i di ar y f ir m s w it h i n Ke n’ s

gr ou p f o r a r e f re s h er c ou rs e in f i n a nc e .

Se pt em b e r– O ct o b er 2 00 0

As ha r a nd S h a r l e en f in a l ly jo i n af t e r

co mp le t i ng n o t ic e p e ri o d at t h e ir p r e vi ou s

em pl oy e r s. S t a rt wo rk o n co n t e n t -g en e r at i n g

pr oc es s e s. La u n ch at So c i e t y o f A ct ua ri e s (S OA )

an nu al e xh i b it io n in C h i ca go . T e ch no l o gy p o r t

to n ew s er ve r f a i l s b a d l y d u r i n g l a u n ch . O l d

se rv er is st il l r un ni ng tr ia l l i c e n s es a n d a ct s

ev en m o re u np r e di c t a b l y. D e f er ex h i bi ti on d e mo s

an d r el y o n v er ba l p it c h , b r oc hu re s, an d

Po we rP o i nt pr es e n t at io ns . T he da y a f t e r th e

ex hi bi t i on i s o ve r , t he f ir st c ou rs e is re a d y

fo r un v ei l i ng . Go od in te r n at i o na l l ea d s f r o m

SO A as w el l a s r e a s on a b le v al id at io n fo r th e

co rp or a t e sw i t ch . U pd a t e ou r c o nt ac t a t D& T

87 A t e a c h o f t h e a b o v e s t a g e s , s o m e b u g s a n d e r r o r s a l w a y s r e m a i n u n d i s c o v e r e d .


a b ou t ne w d e ve l o p me nt a n d d ir e c ti on a nd h e i s

no t su r e i f i t ’ s a sm ar t mo v e t o l o s e f o cu s.

Ea rl y N o ve m b e r 20 0 0

Fa ir ly s uc c e ss fu l b e ta c o mp l e te d at H ud s o n

Ri ve r In la y wi th v er y s t ro ng a n d po s i ti v e

fe ed ba c k a b o u t co nt en t, e n v i r on m e n t , i nt er fa ce ,

an d l e a rn i n g ex p e r i en c e . K en c o mm e n t s t ha t w e

ha ve t h e b es t c on t e n t o u t si d e of an Iv y L e a gu e

co rp or a t e f in an ce c o ur s e ; it ma ke s o u r d a y fo r

th e re m a in i n g w ee k .

No ve mb e r –D e c e m b er 2 00 0

Al ep h an d S a ku ra c o n ve rs a t io n s p ut e v er y t h in g

el se o n ho ld at Al ep h a n d Av ic en a. W e pr es e n t

th e b a n k e xc ha ng e w it h i n a n A SP c o n c ep t t o

Sa ku ra Ag en cy Ma na ge m en t i n L A a n d th e c ha ir ma n

of t he LA A g e nc y t a ke s u s ou t fo r l u n c h t o hi s

pr iv at e c l u b on ( W i l sh i r e) . W e t ak e de le ga te s

fr om T o ky o an d t he CI O o u t t o d in n e r i n re tu rn .

Pr es en t a ti o n s to t h e S ak u r a Ag e n cy M a n ag e m en t

an d S a k ur a M i t s ui Bo a r d i n T ok yo a r e p la n n e d o n

th e c u t ti n g e dg e n ew b a n k el ec tr on ic e xc ha ng e

id ea b e in g i n cu b a t e d a t A le ph . A le p h i nv e s ts a

ch un k o f eq u i ty i n t he n e w ve n t ur e a nd a sk s m e

to l e a d te ch n ic a l an d d o m ai n d is cu ss i on s w i t h

th e b a n k u nt i l t he y f in d s o m eo ne w i th th e ri gh t

pr of il e to t a k e o v e r th e re la ti o n sh i p . A l s o

ag re es to p as s p o r ti o n of r e v en ue s f ro m n ew

pr oj ec t to fu nd d ev e l op m e nt ex p e n se s a t

Av ic en a . W e c lo s e th is c o n tr ac t a nd we h a v e

so lv ed o ur f un di ng p ro bl em s fo r t h e n ex t t w o

ye ar s. P l a n n ed t r ip t o P ak is ta n t o ti e

op er at i o na l , pr oc es s , a n d co nt e n t l os e en d s .

Pr op u p l oc a l te am b y a dd in g mo re c o nt e n t


r e so ur c e s. A l e ph d i s t ra ct i o n t a k e s i t s to l l i n

Ka ra ch i . L e a d s ge ne ra te d be fo re an d af t e r

la un ch as w e ll b y t he b u si ne s s d e v e l o pm en t

tr ip s i n S e p t e m be r ge t dr op p e d a n d f iz z l e ou t.

Ja nu ar y – Fe b r u a r y 2 0 01

In tr od u c ed t o M oe z Mu z z af f a ri a t C he s c or e

Ca pi ta l a n d E ya d S ha hb i i n Du b a i b y S a rw a r .

Mo ez l o ok s a t th e A vi c e na pr e s en t a ti on an d

ag re es to f u nd it co n t i n ge n t on s e e i ng th e

co mp le t e b us i n es s p l an w i t h a mo re M id d l e

Ea st er n or ie nt at io n a n d a fo cu s o n th e

pr of es s i on a l de ve lo pm en t m ar k e t in Ir an .

Ac co rd i n g t o h im , I ra n i s b a rr en te rr it or y w it h

un me t d em a n d th at wi ll o nl y i nc r e as e a s th e

co ns er v a ti v e s a l lo w t he ec on om y t o o pe n u p . Ou r

on li ne an d r e gi o n a l mo d e l f it s w el l t h e s ec to r

th ey w an t t o in ve s t in . Fl y b a c k to Sa nt a An a

fo r m a j or e f f or t t o r e v i s e a n d u pd at e b u s i n es s

pl an g iv en M oe z ’ s f ee d b ac k as w el l a s w r ap - u p

wo rk o n c o u r s es i n d ev el op me nt . Ev i c t i o n an d

ut il it i e s di s c on n e ct io n n o ti ce w ai ti ng o n th e

do or , Re ut er s e ma i l a rr i v es l a t er th a t d ay .

Th er e is no t en ou g h m on e y in t he b an k t o p a y

th e re nt o r s et t l e th e u t il i t y bi l l . Co n v e r t

th e l a s t o f o ur tr av el er ’ s ch ec ks to ca sh a n d

bo rr ow ev e n m or e m on ey f r om f r i e nd s an d f a m il y

to t id e us o v e r f o r t he n ex t tw o m o n th s .

Fe br ua r y –M a r c h 20 0 1

Re em a j oi n s t he Av ic en a t ea m i n Ca li fo rn ia an d

ta ke s o ve r a l l b u s i n e ss -p la n - re l a te d w o r k . I g o

ou t a n d a lm o s t d r o w n i n t he p o o l. Co me o ut a n d

wo nd er if t h i s i s wh a t I w an t to d o w it h m y

li fe a n d w ha t w o ul d h ap pe n t o A mi n , Fa wz i a , an d


o u r pa re nt s i f I w e re to f al l of f m y ch a i r an d

di e b e c au s e of o n e ni g h t t oo m a ny of st r e s s ,

Mo un ta i n De w , an d en dl e ss r ev i s io n s o f th e

bu si ne s s pl an . Pu t mo r b i d th ou gh ts a si de a n d

fo cu s o n r a i s in g a nd b o r r ow i n g e ve n mo re m o ne y

to m e e t sh o r t - te rm n e ed s w h i l e C he s c o re p o n de r s

th ei r d ec i s io n. S a r w ar i s q ui te bu l l i s h o n tw o

hi gh -f l y in g P ak i s t a n i p r o fe s s io na ls wh o h e

th in ks ca n he lp u s r a i s e ca sh . S h i p ou t 1 0

st ra te g i c i n v es t m en t pr o p os a l s a s we ll a s

nu me ro u s co p i e s of th e p l a n to re fe rr ed ve nt ur e

ca pi ta l l ea ds an d S ar wa r’ s c on ta c t s. La u n ch tw o

ne w c o ur se s on le v e ra g e , ca sh f lo w a n d c r e d i t

an al ys i s , g et tw o m or e o n c os t o f c ap it al a n d

ec on om i c v al u e -a d d e d i n to de v e l op me nt . Pe ar so n

co nt ac t c om e s ba c k wi t h p o s i t iv e f e e db a c k a nd a

pr om is e t o f o rw a r d th e p ro p o sa l to Pe ar so n ’ s

pr es id e n t w i t h th e ap pr op ri a t e r e c o m me n d at io ns .

Ap ri l 2 0 01

Th e s ky ha s f i n al l y f a ll e n . D i sc ov e r Qu i s i c an d

Zo ol og i c th e sa m e d ay —c om p e t it io n wi th a fe w

ye ar s’ an d a c o up l e o f mi l l i o n d o l l ar s’ fu nd in g

he ad s ta r t on u s. M oe z d ec i d e s t o de fe r

in ve st m e nt de ci si on t o O ct ob er 2 00 1 . Hi ma l a y

an d H i T ek ve nt u r e p ar tn er s d e c id e d to ta k e a

pa ss . Pe ar so n a sk s fo r a r ev i s ed i n v es t m en t

pr op os a l wi th c os me ti c l o o k a n d fe e l c h a n g e s

an d i n d ic a t es it wi ll b e a wh il e b e f o r e t he y

wi ll h a ve ti me t o g et do wn a n d t al k b us i n es s

wi th u s .

I am o u t o f l ea d s an d go od n ew s. M o n e y i s g on e

to o. P e rs on al fi na nc i a l s it u a ti o n l o ok s j u s t a s

ba d a s t he m o un t a in of de br i s g r o wi ng un de r m y


d e sk . Do n’ t kn ow w h e re t o b e g i n t h e c le a n -u p

pr oc es s . Cr e d i t ca r d s a r e a l r ea d y m a xe d o u t an d

no w F a w zi a i s a l so w o rk in g w it ho ut pa y. W e h av e

st ar te d to a d d f i v e t ho us an d do ll ar s in d eb t

ev er y m on t h j us t t o s u r v i ve . C h a t wi th F a w z ia .

Ca ll up A rn o a nd K e n fo r m or e ad v i c e . K e n s ay s

th in k a bo u t it , A r n o s a y s ta ke my mo ne y, K a ma r

sa ys d u de yo u a r e s c r ew ed . D ec id e t o c ut l os se s

an d h e ed K a ma r ’ s ad vi ce . B eg i n a w k w ar d

co nv er s a ti o n w i th S ar wa r.

Mi d Ap r i l 2 0 0 0

Sa ku ra su bs id i a ry co m e s b ac k w it h a cc e p ta nc e o f

th e l i mi te d be t a t e st i n g of fe r fo r t h ei r l o a n

of fi ce r s . Gr e a t t i m in g. D o n ot ha ve ca sh t o

su pp or t th e m o r a b et a si te o r t h e h e a rt t o

ca rr y o n. R e e ma pa ck s u p an d f li e s b ac k t o

Au st in . I ca l l As ha r a nd Sh a r l ee n t o t el l t h e m

it ’s o v e r.

Ma y 20 0 1

Tr an si t i on o f c on tr ol t o Al ep h a nd d e p ar t u re .

Re di sc o v er a p ar t m en t, gy m, sw im mi ng po o l ,

ki tc he n , an d f am i l y ( n ot ex ac tl y i n t ha t

or de r) . F ir st cl e a n u p m y st u d y a nd d u mp al l

co pi es o f I nc , Wi re d, F as t Co m p a ny , an d

In du st r y S t a n d ar d i n D e n i s e’ s o ff ic e . I c a n ’ t

be ar t o l o o k a t sm i li n g e nt r e pr en e u r s wi t h th e

wo rl d a t th ei r f ee t. Th e la s t th in g I ne e d e d t o

re ad a bo ut n ow w as m ul ti mi l l io n -d o l la r

va lu at i o ns a n d fi rs t- ro u n d fu nd i n g . A da y

la te r, th e L a n g ce nt e r se nd s m e a n e ma il u pd a t e

ab ou t a c la s s of 2 00 1 g ra du at e s w ho fo un d

en ou gh mo n e y to b u y a n Ai r b u s an d st a r t a n

ai rl in e i n L on do n. Al e p h r e l a t i on s h ip he a d s


s o ut h as w e re a c h a gr e e me nt o n tr an si t io n b u t

fa il t o re ac h c l o s u r e. S a rw a r a nd I e xc h a ng e

in cr ea s i ng l y aw kw ar d e ma il s u nt i l si l e nc e

pr ev ai l s .

18 m on t h s l a t e r

No ve mb e r 2 00 2. Af te r f i nd i n g a r el i a b l e

ac co un t a nt , co mp le t i ng t wo ye ar s o f t a x

re tu rn s , p ay i n g b a c k ta x e s a n d p en a l ti es , I

se nd a no te t o S ar wa r an d D en i s e an d f il e fo r

ca nc el l a ti o n of A v i c e na ’s re g i s t ra t i on as a

Li mi te d Li ab i l it y C o mp a n y in t he s t a te o f

Ca li fo r n ia . T h e re a re n o re g r et s .


Appendix C

The original list of myths

1 . T h e c u r s e o f t e c h n o l o g y – T h e m y t h i c a l v a l u e d r i v e r .

2 . B i g p r o j e c t s a n d b i g s a l e s d e a l s – T h e p r i c e o f

c r e d i b i l i t y .

3 . T h e p e r f e c t p r o d u c t – T h e a l l u r e o f p e r f e c t i o n .

4 . H e r o e s – T h e H a m l e t s y n d r o m e .

5 . S o l v i n g t h e w r o n g p r o b l e m – P r e s c r i p t i o n g l a s s e s .

6 . L e a d e r s h i p – G o d s a n d g e n e r a l s .

7 . F a i t h , c o m m i t m e n t a n d t h e i n a b i l i t y t o f a i l – W h o

w i l l c a s t t h e f i r s t s t o n e .

8 . C a p i t a l a n d P a r t n e r s – T h e e q u i t y p a r a d o x .

9 . E x p e c t a t i o n s m a n a g e m e n t – T h e u n d e r s o l d

d i m e n s i o n .

1 0 . D i v e r s i f i c a t i o n – A n y w h i c h w a y y o u c a n .


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E x e c u t i v e s ' D e c i s i o n s , D a n L o v a l l o a n d D a n i e l

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R e g a n B o o k s , 2 0 0 1 .

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P r o f e s s o r J i m E v e r e t t a n d M r . R i c k N e w b y .

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J a n u a r y 1 9 9 6 .

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B u s i n e s s , 2 0 0 2 .

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J e a n - M a r c L e R o u x , a n d R o l f - M a g n u s W e d d i g e n ,

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2 0 0 3 .

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H i l l , 2 0 0 1 .

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2 0 0 0 .

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B u s i n e s s S c h o o l P r e s s , H a r v a r d B u s i n e s s S c h o o l

P r e s s , 2 0 0 1 .

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C h a i n , H a r v a r d B u s i n e s s S c h o o l P r e s s , H a r v a r d

B u s i n e s s S c h o o l P r e s s , 2 0 0 0 .

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P e r f o r m a n c e , H a r v a r d B u s i n e s s S c h o o l P r e s s , H a r v a r d


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H a r c o u r t , 1 9 9 8 .

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V a n P u t t e n , a n d R i t a G u n t h e r M c G r a t h , H a r v a r d



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R o y e r , H a r v a r d B u s i n e s s R e v i e w , F e b r u a r y 2 0 0 3 .

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C o m p a n y , J a m e s E . A s h t o n , F r a n k X . C o o k , J r . , a n d

P a u l S c h m i t z , H a r v a r d B u s i n e s s R e v i e w , J u n e 2 0 0 3 .

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, 2 0 0 3 .

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M c n e i l l S t a n c i l l , H a r v a r d B u s i n e s s R e v i e w , J u n e

1 9 8 6 .

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S i r k i n . , H a r v a r d B u s i n e s s R e v i e w , S e p t e m b e r 2 0 0 3 .

4 1 . E x i t - S u c c e s s O r F a i l u r e ? , J a n S t e n , S w e d i s h

S c h o o l o f E c o n o m i c s & B u s i n e s s A d m i n i s t r a t i o n .

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W i l e y & S o n s , I n c . , 1 9 9 9 .

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t h a t E a t t h e S l o w , J a s o n J e n n i n g s a n d L a u r e n c e

H a u g h t o n , H a r p e r C o l l i n s P u b l i s h e r I n c . , 2 0 0 0 .

4 4 . S t a r t u p S t a l l - T e n M y t h s T h a t K i l l , J a w w a d A h m e d

F a r i d , U n p u b l i s h e d p a p e r , 2 0 0 3 .

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a n d J e a n - L o u i s B a r s o u x , H a r v a r d B u s i n e s s R e v i e w ,

A p r i l 1 9 9 8 .

4 6 . S i x I T D e c i s i o n s Y o u r I T P e o p l e S h o u l d n ' t M a k e ,

J e a n n e W . R o s s a n d P e t e r W e i l l , H a r v a r d B u s i n e s s

R e v i e w , N o v e m b e r 2 0 0 2 .

4 7 . M a s t e r i n g t h e C o m p l e x S a l e , J e f f T h u l l , J o h n W i l e y

& S o n s , I n c . , 2 0 0 3 .

4 8 . W h o n e e d s b u d g e t s ? , J e r e m y H o p e a n d R o b i n F r a s e r ,

H a r v a r d B u s i n e s s R e v i e w , F e b r u a r y 2 0 0 3 .

4 9 . F a i l u r e o f G e n i u s , J e s s M c C u a n , I n c . c o m , A u g u s t

2 0 0 3 .

5 0 . T h e E V A C h a l l e n g e , J o e l M . S t e r n & J o h n S . S h i e l t

W i t h I r w i n R o s s , J o h n W i l e y & S o n s , I n c . , 2 0 0 1 .

5 1 . M a n a g i n g C r e d i t R i s k , J o h n B . C a o u e t t e , E d w a r d I .

A l t m a n & P a u l N a r a y a n a n , J o h n W i l e y & S o n s , I n c . ,

1 9 9 8 .

5 2 . W h y E n t r e p r e n e u r s D o n ' t S c a l e , J o h n H a m m , H a r v a r d

B u s i n e s s R e v i e w , D e c e m b e r 2 0 0 2 .

5 3 . T a k i n g C h a r g e , J o h n O . W h i t n e y , B e a r d B o o k s

W a s h i n g o n D C , 1 9 9 9 .


5 4 . R e b e l w i t h A C a u s e , J o h n S p e r l i n g , J o h n W i l e y &

S o n s , I n c . , 2 0 0 0 .

5 5 . B u s i n e s s a n d B a t t l e s - L e s s o n s f r o m D e f e a t , J o s e p h L .

B o w e r , H a r v a r d B u s i n e s s R e v i e w , A u g u s t 1 9 9 0 .

5 6 . T h e H i g h C o s t o f A c c u r a t e K n o w l e d g e , K a t h l e e n M .

S u t c l i f f e a n d K l a u s W e b e r , H a r v a r d B u s i n e s s R e v i e w ,

M a y 2 0 0 3 .

5 7 . A n n a l s o f C o m m u n i c a t i o n s : T h e L a s t S u r e T h i n g , K e n

A u l e t t a , T h e N e w Y o r k e r , 1 9 9 8 .

5 8 . T h e Y o u n g a n d t h e C l u e l e s s , K e r r y A . B u n k e r , K a t h y

E . K r a m , a n d S h a r o n T i n g , H a r v a r d B u s i n e s s R e v i e w ,

D e c e m b e r 2 0 0 2 .

5 9 . H o w t o P i t c h a B r i l l i a n t I d e a , K i m b e r i y D . E l s b a c h ,

H a r v a r d B u s i n e s s R e v i e w , S e p t e m b e r 2 0 0 3 .

6 0 . T h i n k i n g I n s i d e t h e B o x , K i r k C h e y f i t z , S i m o n &

S c h u s t e r I n c . , 2 0 0 3 .

6 1 . S u c c e s s T h a t L a s t s , L a u r a N a s h a n d H o w a r d

S t e v e n s o n , H a r v a r d B u s i n e s s R e v i e w , F e b r u a r y 2 0 0 4 .

6 2 . I s S i l e n c e K i l l i n g Y o u r C o m p a n y ? , L e s l i e P e r l o w a n d

S t e p h a n i e W i l l i a m s , H a r v a r d B u s i n e s s R e v i e w , M a y

2 0 0 3 .

6 3 . B e c o m i n g a M a n a g e r , L i n d a A . H i l l H a r v a r d B u s i n e s s

S c h o o l , P e n g u i n B o o k s , 1 9 9 2 .

6 4 . A n I n q u i r y i n t o E n t r e p r e n e u r P r e p a r a t i o n A n d A

M o r n i n g - A f t e r E v a l u a t i o n O f R e s u l t s , L i s a D .

S p i l l e r , C h r i s t o p h e r N e w p o r t U n i v e r s i t y .

6 5 . W h o S a y s E l e p h a n t s C a n ' t D a n c e ? , L o u i s V . G e r s t n e r ,

J r . , H a r p e r B u s i n e s s , 2 0 0 2 .

6 6 . T h e D e s i g n a n d D e v e l o p m e n t o f I n f o r m a t i o n P r o d u c t s ,

M a r c H . M e y e r a n d M i c h a e l H . Z a c k , S l o a n M a n a g e m e n t

R e v i e w , S p r i n g 1 9 9 6 .

6 7 . E n t r e p r e n e u r s h i p , M a r c J . D o l l i n g e r , W i l l i a m

S c h o o f , 1 9 9 5 .

6 8 . D e v e l o p i n g P r o d u c t s , M a r c o I a n s i t i a n d A l a n

M a c C o r m a c k , H a r v a r d B u s i n e s s R e v i e w , O c t o b e r 1 9 9 7 .

6 9 . W h a t i s t h e R i g h t S u p p l y C h a i n f o r Y o u r P r o d u c t ? ,

M a r s h a l l L . F i s h e r . , H a r v a r d B u s i n e s s R e v i e w , A p r i l

1 9 9 7 .

7 0 . H o w t o H a v e a n H o n e s t C o n v e r s a t i o n A b o u t Y o u r

B u s i n e s s S t r a t e g y , M i c h a e l B e e r a n d R u s s e l l A .

E i s e n s t a t , H a r v a r d B u s i n e s s R e v i e w , F e b r u a r y 2 0 0 4 .

7 1 . M a n a g i n g C o d i f i e d K n o w l e d g e . , M i c h a e l H . Z a c k ,

N o r t h e a s t e r n U n i v e r s i t y . , S u m m e r 1 9 9 9 .


7 2 . T h e M o n e y C u l t u r e , M i c h a e l L e w i s , P e n g u i n B o o k s ,

1 9 9 1 .

7 3 . T h e F i r s t 9 0 D a y s , M i c h a e l W a t k i n s , H a r v a r d


7 4 . W h y G o o d P r o j e c t s F a i l A n y w a y , N a d i m F . M a t t a a n d

R o n a l d N . A s h k e n a s , H a r v a r d B u s i n e s s R e v i e w ,

S e p t e m b e r 2 0 0 3 .

7 5 . I T D o e s n ' t M a t t e r , N i c h o l a s G . C a r r . , H a r v a r d


7 6 . M B A D e s k R e f e r e n c e , N i t i n N o h r i a - H a r v a r d B u s i n e s s

S c h o o l E d i t o r i a l D i r e c t o r , J o h n W i l e y & S o n s , I n c . ,

1 9 9 8 .

7 7 . W h a t R e a l l y W o r k s , N i t i n N o h r i a , W i l l i a m J o y c e a n d

B r u c e R o b e r s o n , H a r v a r d B u s i n e s s R e v i e w , J u l y 2 0 0 3 .

7 8 . H o w t h e Q u e s t f o r E f f i c i e n c y C o r r o d e d t h e M a r k e t . ,

P a u l M . H e a l y a n d K r i s h n a G . P a l e p u , H a r v a r d

B u s i n e s s R e v i e w , J u l y 2 0 0 3 .

7 9 . I r i d i u m L L C . , P r o f e s s o r B e n j a m i n E s t y , H a r v a r d

B u s i n e s s R e v i e w , A p r i l 2 0 0 3 .

8 0 . C y p r e s s S e m i c o n d u c t o r ( A ) : V i s i o n , V a l u e s , a n d

K i l l e r S o f t w a r e , P r o f e s s o r C h a r l e s O ' R e i l l y a n d

P r o f e s s o r D a v i d C a l d w e l l , S t a n f o r d U n i v e r s i t y ,

A p r i l 1 9 9 8 .

8 1 . C y p r e s s S e m i c o n d u c t o r ( B ) : V i s i o n a n d V a l u e s , B u t

N o K i l l e r S o f t w a r e , P r o f e s s o r C h a r l e s O ' R e i l l y a n d

P r o f e s s o r D a v i d C a l d w e l l , S t a n f o r d U n i v e r s i t y ,

A p r i l 1 9 9 8 .

8 2 . T h e F a i l u r e - T o l e r a n t L e a d e r , R i c h a r d F a r s o n a n d

R a l p h K e y e s , H a r v a r d B u s i n e s s R e v i e w , A u g u s t 2 0 0 2 .

8 3 . T a k e I t O r L e a v e I t : T h e O n l y G u i d e t o N e g o t i a t i n g

Y o u W i l l E v e r N e e d , R o b W a l k e r , I n c . c o m , A u g u s t

2 0 0 3 .

8 4 . T h e W o r l d B a n k ' s I n n o v a t i o n M a r k e t , R o b e r t C h a p m a n

W o o d a n d G a r y H a m e l , H a r v a r d B u s i n e s s R e v i e w ,

N o v e m b e r 2 0 0 2 .

8 5 . T h e E n e m i e s o f T r u s t , R o b e r t G a l f o r d a n d A n n e

S e i b o l d D r a p e a u , H a r v a r d B u s i n e s s R e v i e w , F e b r u a r y

2 0 0 3 .

8 6 . M a n a g i n g t h e N e w P r o d u c t D e v e l o p m e n t P r o c e s s ,

R o b e r t J . D o l a n , W e s l e y P u b l i s h i n g C o m p a n y I n c . ,

1 9 9 3 .

8 7 . S t o r y t e l l i n g T h a t M o v e s P e o p l e , R o b e r t M a c k e e ,

H a r v a r d B u s i n e s s R e v i e w , J u n e 2 0 0 3 .


8 8 . R e a s o n s W h y S m a l l B u s i n e s s e s F a i l : A n d H o w T o A v o i d

F a i l u r e , R o b e r t N . L u s s i e r , S p r i n g f i e l d C o l l e g e ,

F a l l 1 9 9 6 .

8 9 . C a p i t a l V e r s u s T a l e n t - T h e B a t t l e T h a t ' s R e s h a p i n g

B u s i n e s s , R o g e r L . M a r t i n a n d M i h n e a C . M o l d o v e a n u ,

H a r v a r d B u s i n e s s R e v i e w , J u l y 2 0 0 3 .

9 0 . W h e r e R e a l l y B a d I d e a s C o m e F r o m , R o n M a c L e a n ,

I n c . c o m , 2 0 0 3 .

9 1 . H e a r N o E v i l , R o s a b e t h M o s s K a n t e r , H a r v a r d


9 2 . E v o l v e S u c c e e d i n g t h e D i g i t a l C u l t u r e o f T o m o r r o w ,

R o s a b e t h M o s s K a n t e r , H a r v a r d B u s i n e s s S c h o o l

P r e s s , H a r v a r d B u s i n e s s S c h o o l P r e s s , 2 0 0 1 .

9 3 . L e a d e r s h i p a n d t h e P s y c h o l o g y o f T u r n a r o u n d s ,

R o s s b e t h M o s s K a n t e r , H a r v a r d B u s i n e s s S c h o o l

P u b l i s h i n g , J u n e 2 0 0 3 .

9 4 . T h e W r o n g M o v e , S c o t t S h a w , I n c . c o m , A u g u s t 1 9 9 5

9 5 . W h a t w o u l d M a c h i a v e l l i D o ? , S t a n l e y B i n g , H a r p e r

C o l l i n s P u b l i s h e r s I n c . , D e c e m b e r 1 9 9 9 .

9 6 . C o m m e r c i a l i z i n g T e c h n o l o g y - W h a t t h e B e s t C o m p a n i e s

D o ? , T . M i c h a e l N e v e n s , G r e g o r y L . S u m m e a n d B r o

U t t a l , H a r v a r d B u s i n e s s R e v i e w , J u n e 1 9 9 0 .

9 7 . N o E x c u s e s M a n a g e m e n t , T . J . R o d g e r s , H a r v a r d

B u s i n e s s R e v i e w , A u g u s t 1 9 9 0 .

9 8 . D o e s I T M a t t e r ? A n H B R D e b a t e , T h o m a s A . S t e w a r t ,

H a r v a r d B u s i n e s s R e v i e w , J u n e 2 0 0 3 .

9 9 . B r i n g i n g t h e M a r k e t I n s i d e , T h o m a s W . M a l o n e ,

H a r v a r d B u s i n e s s R e v i e w , A p r i l 2 0 0 4 .

1 0 0 . T h e I n t e l l i g e n t I n v e s t o r , W a r r e n E . B u f f e t , H a r p e r

C o l l i n s P u b l i s h e r I n c . , 1 9 7 3 .

1 0 1 . H o w t o W r i t e G r e a t B u s i n e s s P l a n , W i l l i a m A .

S h a l m a n , H a r v a r d B u s i n e s s S c h o o l P u b l i s h i n g , A u g u s t

1 9 9 7 .

1 0 2 . M i l e s t o n e s f o r S u c c e s s f u l V e n t u r e P l a n n i n g , Z e n a s

B l o c k a n d I a n C . M a c m i l l a n , H a r v a r d B u s i n e s s S c h o o l

P u b l i s h i n g , O c t o b e r 1 9 8 5 .

1 0 3 . M i c r o s o f t S e c r e t s , M i c h a e l A . C u s u m a n o & R i c h a r d W .

S e l b y , H a r p e r C o l l i n s B u s i n e s s , 1 9 9 6

1 0 4 . A g o o d h a r d k i c k i n t h e a s s , R o b A d a m s , C r o w n

B u s i n e s s , 2 0 0 2

1 0 5 . N o t j u s t a l i v i n g , M a r k H e n r i c k s , P e r s e u s

P u b l i s h i n g , 2 0 0 2

1 0 6 . T h e s i x m o n t h f i x , G a r y S u t t o n , J o h n W i l e y , 2 0 0 2


1 0 7 . T h e M o u s e D r i v e r c h r o n i c l e s , J o h n L u s k & K y l e

H a r r i s o n , P e r s e u s P u b l i s h i n g , 2 0 0 2

1 0 8 . W h o e v e r m a k e s t h e m o s t m i s t a k e s w i n s , R i c h a r d

F a r s o n a n d R a l p h K e y e s , F r e e P r e s s , 2 0 0 2

1 0 9 . F ' d C o m p a n i e s , P h i l i p J . K a p l a n , S i m o n & S h u s t e r ,

2 0 0 2

1 1 0 . I n t e g r a t i n g C o r p o r a t e R i s k M a n a g e m e n t , P r a k a s h

S h i m p i , T e x R e , 1 9 9 9


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