Start-Up When the Economy Is Down?

By
Maria Koukopoulos
Published: March 5, 2009Posted in: Features, For The BooksTags: ,

Event Report: 11th Toronto Girl Geek Dinner

Michal Berman, founder of EmbarkOnIt, shared her experiences working at Yahoo and Mozilla and how she used her lessons learned to be a serial entrepreneur at the 11th Toronto Girl Geek Dinner.

“When you build a team, hire the best that you can possibly hire. Even if you can only afford to hire students,” said Michal.

Figure out what you are really trying to achieve and then the follow through on the tactical plan is easy. For example, Yahoo wanted to increase market share, so that was what Michal and her team focused on. The tactical plan broke this down by areas, such as entertainment and sports.

Obstacles along the way are quickly assessed by checking back with your core purpose and goals. It is simple when you have your focus. A visual aid really helps. At Yahoo, it was written on a board. So, if Michal had to compete for resources on the sports section, her team didn’t stop, they just moved on to another section and kept going.

For a start-up, if it’s just you, get to know the best possible people in the space that you are interested in. Work with these people or ask them to be an advisor. You could even find one to be your mentor. How? Just ask!

At Mozilla, Michal managed the release process to launch the Firefox web browser in 25 languages. Since it is an open source software-based company, building an online community is the key to its success. The online community is heavily relied upon for development and the ultimate release and success of projects.

The challenge with open source is recruiting volunteers and channelling what is effective for both the company and the volunteers to deadlines. Mozilla uses Google Groups to get volunteers to sign up for testing and help manage their releases.

Michal explained that you own part of the community when it is open source and she remarks that a T-shirt is a serious currency to the online community. And, it is very important to that community what you put on that T-shirt. Mozilla volunteers go to their events and expect a T-shirt. They wear it to promote the company and to belong—the offline component to the online community.

Strategies and tips for start-ups and entrepreneurs:

  1. Go as fast as you can – milestones, find them and do them.
  2. Build a good team around you – passion sells great. It convinces and gets people to work with you. And, build a good advisory board.
  3. Not as hard or perfect as you think.

When building your start-up, you have a vision that is “beautiful and wonderful” said Michal. “Keep the vision and give up the perfection. Just get it out the door. Just do it.” Say it is coming soon, introduce alpha, beta versions. “People just want to see an inkling of what it is. You are never going to be perfect. Just get it out!”

“Networking is critical. Take a course if you are not good at it. You will meet people that have what you need.”

A good lawyer is good to get for deals and structuring equity, and if you get in trouble. An accountant is good at tax time.

When economy is down, best time to start-up!

“Nobody is expecting anything,” said Michal. You work harder, leaner. She shared that it is incredibly hard to get funding at the beginning stages of a start-up. So, rely on family and friends. “Then go to the States,” jokes Michal. She clarifies that it is a betting game, and they are better at doing it in the U.S. and the funding is spread out.

Canadian resources for start-ups:

Characteristics of a serial entrepreneur:

Michal has a drive for innovation. Gets bored and then has to solve the next thing. She has yet to reach her goals.

“Greatest ingredient for success is drive. Stay course and trust in your vision and what you want to achieve for yourself,” said Michal.

“Just do it. Have fun. Enjoy life. Life is too short. Do what you love”

Do you think it is a good idea to start-up a business during an economic downturn?

What do you think is required in order to start-up?

What are other ingredients for success as an entrepreneur?


Maria Koukopoulos has more than 13 years of writing experience in the fields of media relations, public relations and marketing in the technology, corporate, and non-profit sectors. Her first passion is writing, having a flexible skill-set to write for a variety of audiences. Her second passion is promoting Canadian people, events, products and services.

Maria runs her company, Media Scribe, and is currently a member of the International Association of Business Communicators in Toronto and is the Director of Communications for the Alliance of Independent Practitioners.

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