Chapter 3: Starting Up the Startup

My professor directed our entrepreneurship class to watch a free documentary called "Startup.com". Given no context to the video, we left the classroom confused and unsure of the purpose of watching this short documentary. As I watched the free film on YouTube, it became clear to me why he had recommended this video. In short, it was about the "start up" of a business "startup". It showed the beginning, the middle, and the unfortunate end to a company that had so much enthusiasm and promise at the start. A few lessons could be gleamed from watching this short documentary, lessons that I believe are vital for starting your business.

The biggest lessons I learned from this film:

1. Take the losses as gracefully and humbly as you take a win

2. Growth and money should be second and third on priority list, user/consumer benefit is number one

3. Communication and business roles are important when sharing knowledge and creating trust 

The video talks about a company called govWorks, founded by Kaleil Isaza Tuzman, Tom Herman, and Chieh Cheung. Kaleil quickly took the role as CEO and headed most of the administrative and financial tasks. Tom lead the tech department, but also placed himself into the CEO role along with Kaleil. Chieh Cheung was the third founder, but quickly left the company with a cash settlement of 700,000 after he expressed his concerns about how the company was being managed. This would end up being the most money that a founder received by the end of the companies down fall.

The documentary was quick to show the early struggles the company faced with Kaleil having a hot temper and poor acceptance to criticism and rejection. For every investor won it was a celebration, and for every investor rejection, it was met with hostility and poor emotional reactions. Over the course of the company's progression, it became clear that the focus was on growth, fame, and money rather than a functional product that benefitted consumers. The two founders continued to ask for money, but did not focus on completing the software program that was to be the whole point of their company. As money began to dry up, tensions rose between the two "CEO's" until the board of directors demanded that Tom be let go due to his poor management. In the end, the company ran out of money, created a poorly functional product, and mismanaged their employees and tasks. 

When I reflected on the struggles this company faced, it made me realize how important it is to be in a leadership role and managing your emotions. Losses should be handled with as much humility as a win does, and creating hierarchal roles within a business could lead to better communication and management. Most importantly, for whatever business idea you are trying to start up, make sure to focus on the benefit and functionality your product can bring to consumers. A good product will sell, bring in more consumers, and allow for growth in the company. A bad product will destroy team relationships, burn up cash quickly, and be the end to your business in a heartbeat.

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