Simple Advice for Startup Entrepreneurs

by Startacus Admin
Troy McConnell has 23 years of entrepreneurial experience.
Co-founding his first company, Image Technology, back in 1988, he is currently the CEO of AudienceFUEL. With a wealth of entrepreneurial experience we are delighted that Troy is sharing some of his knowledge with Startacus. Currently teaching at the School of Business at Wake Forest University in North Carolina, USA, we offer a big high five to Troy for the following simple BUT very valuable tips for startup entreprenuers. Over to Troy...
"I often get asked the same few questions by startup entrepreneurs. These are good questions. Here are my answers.
Is my idea a good idea?
I don't think anyone knows the answer to this but you. Lots of people, especially potential and existing investors, will give you answer. But, honestly, investors often see 50% to 80% of their investments fail. And that's when they like the idea. The reality is that ideas are a dime a dozen but action is where the value lies. That means what you do to move your idea forward counts for much more than the idea itself.
Now, there are very good rules you can use to learn whether you can develop your idea into a sustainable, profitable business. More on that in the future. But, right now, answer these two questions. Who are you and What do you want? As an entrepreneur, you are the most important person in the world (there, I said it). Your strengths, weaknesses, bias', abilities, network and personality color the decisions you'll make going forward. You need to be honest with yourself about what you know, what you are good at and who you know in the context of pursuing your idea.
How do I decide how much equity each founder gets?
Again, only you can answer. However, the decision needs to be coupled with an agreement between the founders that defines the following:
A. Someone is the CEO and everyone else isn't. Someone has to be in charge and, while the process for getting to a decision might be loud, at the end of the day someone has to own up to being the boss and set direction. Oh, and that means that if you're not the CEO, you have to either support (after arguing strenuously) decisions or leave. Simple.
B. No one gets all of their equity at the beginning. Look, people's lives and outlook change. Starting a company can be a nasty,
stressful business - not everyone, after finding it out it's not like in the books or magazines you read, is ready to continue. So, setup a period of time - say 3 years - and every founder is vested their equity in the company over that period of time.
That way, if someone leaves after 3 months, they don't leave with 33% of the equity but only 3 months worth. If anyone leaves before they vest fully, then let their unvested equity be distributed to the founders who are left. The happiness of founders 2 years after they start a company is directly variable with how soon they entered into an agreement that has A and B above. It doesn't mean they are happy, it just means they are happier than if they didn't do it.
What was your biggest mistake?
Listening to the advice that I was "too hands on" and "too involved" in the business. Generally this comes from people with only corporate or business school experience. Look, as Steven Blank has said, a startup is not a small version of a big company. The value propostion is not well-defined. The customer is not always well-understood. The sales and marketing processes are in their infancy.
The energy required to move an object from a standstill to moving is much greater than the energy required to keep it moving. This is what you are doing. Moving a value-proposition from nothing to something. In a startup, you are the energy. So, go ahead and obsess over every detail to make sure they are right. Hey, it doesn't always make you the nicest person in the room but are you trying to make friends or create something?
How much will my company be worth?
Listen, focus on changing the world in some (big or small) way. Make someone's life better. Solve someone's problem. Then, let's chat.
Troy McConnell is CEO of AudienceFUEL. Follow him on Twitter @troylmcc
Join Startacus - the Self Start Society!
If you like what you see here on Startacus, why not become a member of our growing community? It's free! And you'll get all this - exclusive access to our Business Toolkit, discounts and offers galore for your business via our member only business deals, the chance to network and connect with loads of fellow self-starters, and maybe even become our celebrated 'Self-Starter of the Week' and tell the world your startup tale! Join right here for free...
Subscribe to our newsletter
If you would like to receive our startup themed newsletter, full of the latest startup opportunities, events, news, stories, tips and advice, then sign up here.
Karen Meager, co-founder of Monkey Puzzle Training shares some insights on how leadership has changed in the last decade, and what it takes to be a great leader today.

Freight rate management platform Freightify raises Series A investment to support further international growth and mission to help more freight forwarding companies digitize their operations.

Crowdfunding success for Omni, the vegan dog food brand, reaffirms the recession-proof growth of the pet nutrition industry.

Want to learn a new language? Weeve is an innovative startup that has created an innovative, creative and effective way to help you do just that.

Want to build an investable, scalable tech startup? The Raise Accelerator programme is now open for applications and will help you do just that.

Want to increase visual engagement for your startup's Instagram account? These tips will help you do just that.

Fashion innovation thanks to Italian Artisan and its B2B one-stop marketplace that connects international brands with hard-to-get authentic artisans.

Want to gain an edge over your business competitors? Listening to your audience is an absolute must.

The Clothes Doctor mission to fight fast fashion continues as the innovative eco clothing care brand raises £1m to support further growth.

If you plan on using social media to promote your brand, these simple rules will help, increasing both brand awareness and the number of consumers.
Published on: 8th May 2014
If you would like to enable commenting via your Startacus account, please enable Disqus functionality in your Account Settings.







- Freightify secures $12M funding round to power digital transformation for freight forwarders 2nd Feb 2023 Freight rate management platform Freightify raises Series A investment to support further international growth and mission to help more freight forwarding companies digitize their operations.
- Vegan Dog Food Brand, Omni Smashes £400K Crowdfunding Target 1st Feb 2023 Crowdfunding success for Omni, the vegan dog food brand, reaffirms the recession-proof growth of the pet nutrition industry.
- Raise Spring Accelerator programme seeking applications for next cohort 30th Jan 2023 Want to build an investable, scalable tech startup? The Raise Accelerator programme is now open for applications and will help you do just that.
- Leading French Travel Co. Offers Mentoring to two UK startups on its prestigious two-month programme 23rd Jan 2023 High-potential social impact startups from the UK sought for the 9th annual Les Tremplins by Voyage Privé programme.