Monday, October 8, 2007

John Nesheim's

It's an excellent book and I encourage every would-be entrepreneur to study it by heart. For one thing, it helps you to be prepared for the reality:
6 out of 1 million ideas got to IPO.
Founder shares are diluted to 4% (about $6.5 million) after IPO.
Commitment to 4-5 years of low pay hard work is required before exit.
Your daily headache is to enough Cash Flow for the next payroll.
Be prepared to step aside as VC plants an experienced management team in "your" company.
Personal costs of doing a start-up is high. You may be burned out and that affects your families and friends.

Anyone who is serious about starting up should first convince oneself that your idea is worth all the risk and should be ready to pay all the personal cost.

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