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Archive for category entrepreneurship

Open, Closed and Whole Product

Oct 8

Posted by Yang Chung in entrepreneurship, high-tech, strategy | No Comments

In previous entries, I have covered the rate of change in technology advances, peril of attempting to predict the future, and current trend in developments of cloud computing, data centers, and smart phones. A report by NPD says that iPhone 3G is now the best-selling smart phone (past BlackBerry’s and Palm Treo’s) and 2nd-best selling phone after Motorola Razr in US. The proliferation of new smart phones and the birth of whole new eco-system of applications developed by any programmers and available to all users present interesting security problems.

Mobile phones in general are now considered an essential item in one’s life. It’s hard to imagine what the world was like without them, not being able to connect to anyone at anytime from anywhere (even interrupting us at anytime). Most people nowadays cannot imagine what it was like before the Internet and mobile phones. Because of its portability and must-have status, the number of mobile phones vastly outnumbers any devices that connect to the Internet.

I can’t say for any other countries, but in US, smart phones are absolutely necessary in business because of its ability to access corporate emails and calendar. In fact, they are two major functions why millions of business users buy smart phones, which have become mandatory communications device for business users.

In addition to the vast volume of general mobile phones, smart phones are becoming more and more like small computers. With wide variety of applications available to download and install, new smart phone users enjoy the same freedom of choosing whichever application they’d like to use as those desktop users. As a rule of thumb, the technology advancement will continue and they may become as powerful as some laptops, as today’s laptops are as fast and powerful as desktop. It’s inevitable and just matter of time.

So, if you think about billions of laptop-like mobile devices with wide variety of Internet applications, any security professional will cringe. Infecting mobile devices with malicious code could result in devastating results. All the personal information stored on the laptop including address book and emails could be leaked. Someone could also tap into user’s location information through GPS and keep tracking the user for criminal purpose. Since they will become as powerful as some laptops, it’s entirely conceivable that some sort of P2P applications (good or bad) might be developed for mobile phones. As more advanced botnet uses encrypted P2P network rather than traditional IRC channels, the mobile botnet can be certainly created with P2P network as well.

Apple keeps tight control over applications developed for iPhone, but when the number of applications is increasing faster and faster, they won’t be able to keep the full control. However, restriction and control are not the answer. They will only limit innovations and may even kill the very technology and/or product it is trying to protect. Internet was able to flourish because it was open. While there are some parasites, the benefits of openness vastly outweigh negatives. There are numerous cases when open system/architecture triumphed over closed counterpart. Open system encourages competition, which in turn fosters innovations in the market. Then, how does one make money in such environment? It may not be easy, but it’s possible. Good example is Cisco. Most Cisco products are based on open standards, yet they command highest market share in most markets. Worse yet, they do not build the best or the fastest products in the industry. Slightly different, but similarly, Apple was able to come in to crowded MP3 player market and dominate in short period of time. There is no secret to make a MP3 player, as you can see in high number of MP3 manufacturers. How did Apple do it? Is it because it looks beautiful? Americans are quite practical folks. Knowledge of America might be limited to what they see on TV or movies for some, but most Americans are definitely not frivolous. It wasn’t because of its looks. Then, how did Apple succeed?

In marketing there is a concept of “Whole Product.” It’s not enough to win in the market with just main product. In order to complete user’s experience, you have to consider what user would go through from before the purchase to what afterwards. Apple iPod was successful because of iTune software and iTune store. In order to complete MP3 experience, a user would have to find a way to manage his music collection and a way to add more songs (either by ripping a CD or buying online). iTune software and store completed that, and they worked flawlessly with iPod. How about Cisco? Cisco’s “Whole Product” is Cisco product plus millions of professional service and technical support professionals either from Cisco or 3rd-party vendors. Cisco made it legitimate with its certification program so that their customers, if chose to seek outside help, can find quality professionals by checking their certificates. It’s this auxiliary knowledge base that is keeping Cisco in the top place. Because they are market leaders and have most customers, their position is reinforced by many other companies that build and offer additional auxiliary items/accessories and service for them such as cases, boom boxes, adapters for iPod or training centers, system/network integrators for Cisco.

So which way is right for mobile security? It’s a million dollar question, and also where incredibly attractive opportunity could be.

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Follow your dream?

Sep 22

Posted by Yang Chung in entrepreneurship, high-tech, personal | No Comments

Should you?

I had a conversation with someone who has been quite successful as a serial entrepreneur. Since I have a lot of spare time, I wanted to pick his brain and get some pointers what I could follow his footsteps. His brief answer was that he just had been lucky, right place at the right time. He also said there are some people who are cut out to be a leader, founder, and entrepreneur. And, most people are not. He said God (whichever god depends on your religion) has set out a path for everyone. People have different strengths, and he doesn’t believe in working on improving weaknesses, but reinforcing strengths.

One of the books I like is Sun Tzu’s The Art of War. One principle in the book says that the state head must know how to utilize his generals’ strengths best. If a general is good at offense, he should be deployed in offensive position. And if a general is good at defense, then in defensive position. You can’t blame a general for not doing his job if he was assigned with a job he cannot possibly do well. It makes total sense……

So, what if your dream is not in line with your strengths? Or what if your strengths are not enough to reach your dream? Books and TVs are full of stories about people following their dreams, persevere, and actually achieving them. How about others who have followed them but never made them? There are many athletes, both professional and Olympic, who in spite of their best effort do not make it at the top. What about those countless artists and musicians? When do you realize that perhaps your strengths are not in line with your dream or just not enough? What do you do? Then, is it about different levels or definitions of success? Should an athlete be satisfied with making it to the Olympic teams?

It’s especially meaningful to me since I have two kids of my own. As a parent, I would tell them that they could be anything they want to be. Would I be setting them up for big disappointments? Shall I just tell them that there are different levels of successes, and they should set low goals? Jack Welch is famous for setting “stretch goals”, which may not be applicable for kids, but I really ponder over the whole thing.

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Dare to predict the future

Sep 21

Posted by Yang Chung in entrepreneurship, high-tech, startup | No Comments

Since the shutdown of the company I was working at previously, I have had some time to think about what I want to do. I still have the desire to start my own company, but it’s indeed getting harder and harder as I have certain family obligations. Next best thing is to join a startup, but there aren’t too many left standing in networking industry. As I have mentioned before, best case scenario would be to join a startup in web application space, but because I don’t have relevant prior experiences, it is tough. That leaves joining a well-established company in networking industry. While that’s good for supporting the family, it is bruising to my ambition and dream of starting a company of my own. However, life would not be worth living without a dream. We live one life, and I just refuse to accept that I will live the rest of my life as nobody in the sea of big corporations. Well, not exactly. My personality wouldn’t let me be nobody. I am too ambitious to be nobody in any company. Either I make a difference and become somebody or get the hell out. I think I’ve always enjoyed limelight – there is something about being a center of attention.

At any rate, I decided to examine history of technology innovations (as far back as I could remember), and see where the future innovations would happen. As people grow older, they tend to have “locked-in” view. I can feel that I already do that sometimes. But, it’s important to have open mind and views. I will let my imaginations go wild, and see where things might be headed in the future. This would be a good exercise.

I would divide Internet into two large areas: physical and logical (or Layer 1 to 4 and Layer 5 to 7 of OSI model). In physical side, you have telecommunications and data communications equipment that is responsible for delivering bits (zeroes and ones) from point A to point B. In Layer 1, most long hauls, WANs and LANs are either fiber or moving to fiber. To desktop is most likely to remain copper, and to laptop is most likely wireless (Wi-Fi variation). Long hauls use mostly SONET, the good-old, reliable SOB. DWDM stuffs much more information into single strand of fiber using different wavelengths. So, as long as you have fiber in the ground, DWDM or any other future boxes will be interested in stuffing more and more bits into the single strand of fiber. Similarly, Ethernet evolution map is pretty much intuitive, too: faster and faster. Also interesting thing is moving everything over IP. Storage used to be exclusively on fibre channel network, but with NAS and iSCSI, everything is accessible over IP without specialized network. There is even talk about implementing fibre channel over Ethernet. Actually, much more interesting things in physical side are happening in and around data centers. The need to have scalable data center is pushing for HPC environment where resources from multiple servers are pooled together. What’s happening now is like creating a humongous server with hundreds of CPUs and obscene amount of storage. With pre-partitioned storage, any number of CPUs can be instantly grouped together to perform certain jobs. For example, if there is sudden surge of demand for database processing, addition CPUs can be assigned to already existing database CPUs. It is like dynamic server virtualization. You can also imagine, with fast enough connection and fast enough storage like maybe Solid State Drives, that there could be separate “memory area network” in addition to “storage area network”. Thus you have three physically separate areas – CPU, memory and storage – being grouped dynamically on the fly and providing services to clients as needed. What provides physical connections for those three areas become quite interesting too…. Memory typically requires 50ns or less access speed, so I am not sure if current Ethernet switch can work. But, you could imagine some sort of box providing network connection to/from clients as well as between the three areas. That would be really neat… But the box needs to be as scalable as the computing resources. Also management would not be easy. There may be additional challenges I am not seeing right now, but I would believe that’s where most network, server, and storage vendors are heading.

In terms of physical side of mobile industry, it’s also pretty much predictable. Apple iPhone and Google Android are paving a new era of mobile networks. Service providers need to upgrade their equipment to deal with more and more data. Thanks to the two pioneers, mobile phones will be considered as mini-computers where consumers are free (as much as phone manufacturer lets them) to download and install applications.

Logical side is even more interesting than the physical side in both wired and wireless networks. Whether you use desktop or mobile phone, what you do with bits delivered via the network is where the true value resides. However, I must say that I am much more excited about mobile apps than desktop apps. The evolution of desktop apps seems quite predictable. For example, social networking websites could be considered as enhanced BBS. I remember when I first got my computer in high school, it came with 2400 baud modem and the only “online” activity would be through BBS. I exchanged games with others physically…using 5.25” floppy disks. You could choose which BBS to go and hang out. When I went to college, I used newsgroups and IRC as BBS. Then to Yahoo Groups, and now it’s Facebook. Truly remarkable development has been around software-as-a-service model. In most cases, big software vendors tended to target customers who leave most margins, i.e. Fortune 1000 companies. Small-to-Medium businesses usually get crippled version at discounted price, but in terms of productivity, it could be considered a lot more expensive. When you move apps to web, now you have different economies of scale, and distribution and pricing model. Just as the Internet made “Long Tail” possible, SaaS changes the whole software landscape and makes it attractive to SMBs (not that it wouldn’t be also attractive to larger companies, but they may not have compelling reason to jump).

Also, when you add mobility, you get a whole different set of software. Mobility means your location may change at any time. The obvious apps are the ones that tell you about things around you, whether you are looking for a restaurant, a friend, etc. There is also notion of instant social gaming, where you hook up with whoever is available and play a game together. Another one is instant access to information wherever you are. One app I saw lets user scan a barcode of a product and find review/rating information about it. Pretty clever. So what makes apps on mobile phone with high-speed internet connection a lot more interesting is location + instant access to information.

What could be possible? Where could things go from here? SaaS means both desktop and mobile phone could access the same application. So the SaaS should be able to accommodate information from/to both desktop and mobile phone. Will desktops become just another (immobile) terminal to apps? How about SaaS of SaaS? If apps are moving to web, and there might be a need for information exchange between two or more SaaS apps. Mashup for mobile apps. There is an idea! Another characteristic of mobile phone is it’s most likely to be with owner all the time. So, it could be use as tracking device…..could be as physical as distance travelled or expenses……or some sort of analysis based on accumulated data…..like when s/he is most likely to spend money, etc. I actually have envisioned a society without cash, since a lot of financial transactions already happen without me actually touching the money. Money gets deposited using direct deposit. I always use credit cards for purchases. I then pay for credit charges using online banking. I don’t need to touch the money, period. So, what if you add charging capability to the mobile phone? It’s already done in Asia and Europe, where you can pay for goods using your mobile phone. It’s just that mobile carriers are not credit card companies, but it should be possible perhaps through partnership. Then SaaS could keep track of most of expenses through the mobile phones and provide you with financial analysis. That could be possible.

Actually, it would be impossible to think of all the possible mobile SaaS right now….., but it gives good topic ideas. From today on, I am going to write about at least one mobile SaaS a day.

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Just do it!

Feb 22

Posted by Yang Chung in entrepreneurship, high-tech | 1 Comment

There are a few people at work I enjoy having conversation with, and one of them is a software engineer with a lot of interest in marketing and starting a company.

One day he and I had a discussion about high-tech marketing strategies. I gave examples and principles from books I have read like Crossing the Chasm, Inside the Tornado, and Innovator’s Dilemma. But, he basically discarded them as garbage and they are all just after-the-facts, trying to explain what made companies successful. Hindsight is always 20-20, and it is easy to justify actions after success. I try very hard to make counter his points, but it didn’t fly.

The truth is that he was right. None of the authors – neither Geoffrey Moore and Clayton Christensen – has ever run a successful company. Also, so many successful companies in the valley have been accidental success. Look no further than Google. Larry Page and Sergey Brin never wanted to start a company. After successful prototype, they just wanted to sell the technology. Nobody including Yahoo wanted to buy the technology. Everyone thought search market was mature enough with no room for new player. They sat on a $100,000 check made out to “Google, Inc.” from Andy Bechtolsheim, mulling over whether to start a company or not. The same with Craig Newman from Craigslist.org, which is arguably one of the most visited websites in the world. He started out by managing a bunch of mailing lists, which was a pain and took a lot of his time. He wanted a better way to manage the mailing lists, and that’s how Craigslist.org was born. Mark Zuckerberg from Facebook never intended to create a company of current Facebook. He just wanted to find a way to see who’s who in his freshman class, and that’s how Facebook started. Similar stories exist for other companies like eBay and Paypal. Have they all followed the strategies and tactics laid out in marketing books? I am not sure. But, it is surely easy to tell the world – after such huge success – why certain actions taken at the time were so brilliant. But, who knows at the time it was motivated entirely differently?

In addition, most successful start-ups happened to be started by engineers, not marketing-types. From HP to Cisco, Sun Microsystems, Yahoo, and Google, all of them were founded by engineers.

Guy Kawasaki from Garage Technology Ventures said that one common mistake an entrepreneur makes is writing a business plan first. Instead, he or she should start building service or product and starting selling them first. It’s utmost important to get customer feedback as soon as possible. By incorporating customer feedback and improving service or product, the entrepreneur could build his/her business. If more capital is required for further growth, it’s much easier to raise funding with proven business model.

So, to my fellow entrepreneurs, JUST DO IT!

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Pros and cons of outsourcing software development to India

Aug 24

Posted by Yang Chung in entrepreneurship, high-tech | 2 Comments

So, I am winding down on my pursuit of the startup. I had to. My saving level is dangerously low, and I have a family to support.

And, this outsourcing to an Indian software company was a BIG mistake, too. What it came down to is the heart and soul put into the work. They will do a job to meet the spec, but as any software engineer knows, there are million ways to write a code, and these guys will write the minimum or take the shortest path to meet the spec. That doesn’t mean they will think about efficiency or quality of the code. So, quality of the code is always questionable. But, again the biggest problem is that these guys will not go above and beyond. Just do the minimum to meet the spec and that’s it.

When I told many people that I was going to outsource the coding, they thought I was crazy. It’s core of my business, and you should never outsource something that’s core to one’s business. That’s so true, because I just learned it hard way and also it is clearly said in the book I am currently reading, Living on the fault line by Geoffrey Moore. Well, actually at first, I didn’t think the website was the core, but marketing strategy was, because writing a website is so trivial and anyone could do it. I wanted to do it cheaper and faster, and concentrate on good marketing so that I can attract critical mass of users. But, it was the core. In consumer website space, user experience is everything and the website that was built by this Indian outsourcing company – which by the way had developed other social networking sites before – had the worst user interface. So, I basically told them to stop the development since I want to cancel the project. Of course, they weren’t happy about it, but there was really no point in going on. The website developed by them was so inferior to current competitors.

Recently I had to research open-source social networking platforms, and I was surprised to find so many. And, they all looked really good. I remember distinctly that I searched for such platform in October of 2006, and there really weren’t much. I found a few that I’d have to buy, but no social networking…. Though, I am not sure if I would have time to develop the site myself even if I found a suitable open-source social networking platform. The learning curve would have been too steep. That was actually another reason I decided to use an outsourcing company….., but it turned out to be probably worse.

Ah, well…. You live and learn and move on.

Also, another thing that I learned was that most of the successful startups were founded by engineers and geeks, not by business or marketing people. I’d better go and hit programming books!

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Software is the king

Jul 4

Posted by Yang Chung in entrepreneurship, high-tech | No Comments

I wish someone had told me about it early, perhaps before going to college. I have been working for about 10 years now with most of experiences in data communications, and it’s been pretty obvious to me that real value of a system resides in software, not in hardware. In the communication systems, what determines reliability is usually their OS and software in general. Hardware matter, too, but only up to certain point. And, it’s relatively easy to reach a reasonably robust hardware product. The real art of creating value is really in software. I wish I have known this before. While I started my freshman year as a CS major, but later I changed to EE because I didn’t like to spend too much time in front of a computer.

Anyhow, the two pillars of data communications industry is Cisco and Juniper. When Juniper first came out, its software took much different path from Cisco. Cisco’s IOS used to be this humongous, non-modular piece of code and changes in the one part of IOS may easily break different part of IOS. It was somewhat synonymous to MS Windows OS, where the backward compatibility requirement has hindered it from introducing much better OS for a while. Also, their approach was similar where Cisco IOS would support any network protocols under the sun like DECnet and Appletalk, while Juniper only supported newer protocols. When a process within IOS fails or goes nuts, it would bring down the whole system, but not Juniper’s OS – JunOS. It was definitely smaller, faster, more reliable and more resilient. But now Cisco’s new OS called IOS XR is also modular SW, I think the playing field has leveled. Cisco is a big power house in networking which commands more than 60% market share in most of industries it has penetrated, and Juniper might forever remain as the number 2, niche player in the market (Crossing the Chasm).

Anyhow, when I look at new innovation or innovative companies popping up, it’s not in L1 to L4 of OSI layer. It’s usually in higher level. Look at all web 2.0, social networking and SaaS (software as a service) companies taking the market by storm. Some say it’s bubble 2.0, but this time I think everyone including investors is careful about business models and revenue history/projection. Also, anything related with proprietary hardware like building ASICs takes too long and too much capital. Building software takes much less time and capital, and there are literally thousands ways to implement a feature, so it’s really up to how well the software is structured for performance as well as scalability that would make a huge difference.

It also brings an interesting point, too. If you look at technology advancements in the last 100 years and last 20 years, the rate of advancement in last 20 years is very high. If this rate would continue, it’s mind boggling to imagine what the next 10, 20 years will bring. That’s also why benefits of proprietary and custom hardware such as ASIC or company like SUN might be in the big trouble. The system built with off-shelf components may run as fast and reliably as custom hardware. Again, the value will be on software. How well it is designed and written will make all the difference.

I have two kids of my own, and I don’t know if I would want them to become engineers like me…, but if they want to, I would definitely ask them to go into software industry, not hardware. I suppose hindsight is always 20/20. Life’s most valuable experiences are learned from mistakes.

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Scholar and Entreprenuer

Apr 19

Posted by Yang Chung in entrepreneurship | No Comments

There are two books that had great impact on my professional life. One is Geoffrey Moore’s Crossing the Chasm and the other is Clayton Christensen’s Innovator’s Dilemma. The latter book had higher effect because of its radical theory that most companies fail because it does what it is supposed to do…and do well. Most people who are in high-tech marketing know these books and all the marketing principles and rules.

It’s interesting, though, that none of these authors are successful entrepreneurs. It shows that it’s one thing to know and another thing to do it (and do it well).

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Online resources for high-tech entrepreneurs

Mar 27

Posted by Yang Chung in entrepreneurship | No Comments

For a little while I was trying to raise fund for my company, which turned out to be fruitless. While I did that, I found out some interesting articles and online resources, and I wanted to share them with you. I do have my own del.cio.us bookmarks, but I figured it’s better to place them all here with some explanation….

When It Comes to Innovation, Geography Is Destiny
Why location is everything when it comes to innovation……Pssst……the place is in the West Coast and where Fairchild Semiconductor seeded everything….

The 18 Mistakes that Kill Startups
I didn’t know who Paul Graham was until I found this essay by him…. My company had #1 and #2 mistakes he listed. Not that his list is like a golden rule, but his reasoning made sense.

How to be Silicon Valley
This was a very interesting read. I liked Silicon Valley for other reasons like being close to ocean, mountains, Lake Tahoe, Santa Cruz, Monterey Bay, Half Moon Bay, San Francisco, Napa/Sonama Valley, etc… I wondered the same about that…. Like NY Times article mentioned, there were many domestic and international cities that tried to be the next Silicon Valley, but look where most high-tech innovations happen! There is no doubt there is something different about Silicon Valley, and I didn’t see better reasons why than Paul Graham’s…

Paul Graham’s website and his essays
Actually, you should go ahead and check out his website…..as well as his essays.

Buildv1 – Connecting entrepreneurs
This is a really cool, under-utilized site for all aspiring entrepreneurs. It’s like a classifieds for entrepreneurs. You can post your latest project and ask for help, or you have certain skills for startups, you can post them to hook up with an entrepreneur. I’ve used it and received many interests…… Whether you can find someone you can trust and work well together is whole another thing.

Art of the Start by Guy Kawasaki
I really enjoyed this book. While Guy Kawasaki looks like a sell-out and doesn’t have mega successful company under his belt, this book is a must for all high-tech entrepreneurs. It’s no-non-sense guide to entrepreneurs about how to build a team, raise a fund, etc. I really liked the book, because he said an entrepreneur should start building a product/service and delivering it instead of writing a business plan or pitching to investors. And that product or service had better bring in revenue as quickly as possible. Totally right. For startups, cash is king, and without cash, it will die. Faster revenue, the better. And unless you are Steve Jobs, still live in late 1990’s or have a rich, generous uncle, no VC will fund your company based on just a business plan, however spectacular it is. VCs bet on jockeys, not on horse. And, good idea will fail if not executed correctly while bad idea can survive with excellent execution and probably some modification on the way.

Ask the VC
This blog is founded by two venture capitalists, Brad Feld and Jason Mendelson at Mobius Venture Capital. What’s cool about the blog site is that they actually do answer your emails!

VentureBeat
This is an excellent site if you want to be plugged into news about (mostly) Silicon Valley startup. It most deals with who’s gotten funded and how much…, but sometimes it has juicy stories about startups in general.

Rent-A-Coder and eLance
If you are looking to outsource, rent-a-coder and elance are probably two major “brokering” sites. It’s free for a user to post his/her project, and outsource companies (mostly offshore, but some domestic) bid for the project. I’ve used the rent-a-coder but didn’t use a company through there because I’ve had a company that was personally referred to me.

FundingUniverse, Go Big Network, The Angel Journal
I can’t personally vouch for these websites, since I wasn’t successful in securing funds using them. But, who knows? Some entrepreneur may have better luck with them.

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Starting a company is hard….

Mar 22

Posted by Yang Chung in entrepreneurship | No Comments

I worked in overseas last couple of years. The experience was strange. I worked in my mother country, but it made it worse for me. If I have an advice for any Asian American thinking about going back to his/her mother country and working there, I would strongly discourage it…. Reason? That’s for another post.

While I was preparing to come back, I had an idea for a social networking company and decided to go for it. Social networking market has so many possibilities for niche markets, and combined with my recent experience, I would have a shot at it. With some but not a lot of money saved, I wanted to release a beta version if two months. That was about six months ago. Now, I have given up on the quest. Why? There are several reasons.

1. No co-founder

In the beginning, there was sort of a co-founder. I established good relationship with this guy who worked at the largest software company and had entrepreneurial mind. When I pitched my idea, he liked it and wanted to be in the game. Plan was that he would take care of all the technical stuff, while I do non-technical stuff. Working at a software company and being a software engineer before, I though he would be perfect for the job. Only problem was that he had his family and couldn’t leave his full-time job until something solid (early funding) happens. As time went on, it was obvious that he could not put as much as time he had hoped into the new venture. He had a full-time job and family. I had a family, too, but I was committed 100% to the venture. So, about a couple of months into it, he pulled out.

I don’t blame him, though. As a father and a husband, I know it’s tough thing not to be able to support the family. I could have stopped then, but I wanted to keep going. I didn’t want to give up too easily. So, I decided to use an offshore company and contract the website development out. I found a company, actually, through ex-co-founder. While I was discussing terms with them and looking for a lawyer, I also looked for another co-founder. But it proved to be much difficult.

Not only that I had to sell my idea (but I was pretty used to it by then), I had to make sure there was compatibility. When running a start-up, things would get tough at times, and I needed to make sure that things would work out. Also, I didn’t have any money to pay….except equity of the company. How do I determine what percentage is appropriate to a total stranger with no prior working relationship? Indeed, when I looked at many companies, they were all started by ex-colleagues or school friends. With no proven chemistry, it would have been tough to trust any stranger. Another thing I found out was that many entrepreneurs or to-be-entrepreneurs had their own ideas to pursue. Instead of pitching my idea, I found myself being pitched to several times.

2. No relevant experience/No track record/No stellar management team

This is pretty obvious, but when I approached investors with my idea, they all gave me the same answer. This also proves that they never say no! They told me that they liked the idea and target market, but with no relevant experience (my background is in data networking, not consumer website), track record nor A-team management team, they could invest in me and my idea. Since a good idea will fail in the market with poor execution, they were absolutely right. However, with all their contacts, if they really thought it was a good idea, they probably found a way to invest…. They also told me that if I could build the website and show early success, they could talk about funding seriously. It led me to use my funds to build a beta website.

3. Inadequate funding

Without cash, a startup will die. I had only small bit of savings, and I had to use it to run the company, pay for website development and support family at the same time. My financial resources were depleting fast. So, I picked pitching to investor route first. When it didn’t go anywhere and with no co-founder, I picked offshore development route. But, it was too late. I needed to bring in income soon. If I had won the lottery or had inherited large sum or had ultra rich and generous uncle, it would have been a different story.

4. Family

Family also put a lot of pressure on me. Kids are too young to understand and my wife supported me 100%, but it was always me. I felt like an inadequate father and husband. Things we had to cut back and things we had to forgo…. While I was pursuing my dream full-time, that constant stream of income called “paycheck” was really tempting at many occasions….

5. Keeping energy and optimistic level high

There are so many obstacles one faces when starting a company that I almost think it’s a race of who can last longest, and to last longest you have to keep energy and optimistic level high all the time. A little bit of doubt will slowly eat you away. I guess that’s why it’s important to have mentors and perhaps multiple co-founders, who can give you a pep-talk whenever you are down….

So, I’ve started looking for a full-time job this month and have had several phone interviews and a few on-site interviews. My next post would be about one of those on-site interviews.

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