Starting a company is difficult

If you read my first blog post you know that recently I have been working on launching a new company http://myjibe.com

While this is probably one of the most rewarding periods in recent memory I have to say that actually bringing something from idea to production is more difficult than it seemed (3 months ago). I used to have the luxury of “the machine” around me. While working for large companies the process of product launch was largely formulaic:

• Will we get paid back within 3 years? IF yes, we will put it in the product pipeline. IF no, we won’t do it.

• How many of our 1000 customers will buy it? IF more than 200, put it in the product pipeline. IF less, refer to ROI calculation.

The pieces of the puzzle that needed solving were algebraic. Write down the formula and solve. Very straight forward, very “simple”.

Starting a company is completely different

You still need to do the above:

• Identify a market
• Build the ROI

But starting a business means you also need to EXECUTE the outcome of the above analysis, not identify who should do it

The number of factors that can go into a market identification model are mind numbing in themselves. The ROI of new company needs to be balanced against the ramp up time for the product and adoption rate of a new brand, new idea, new processes, and new people.

Before starting MyJibe I was weighing the option of pursuing my MBA. I believed that pursuing an MBA would help me find more formulas, more tricks for a balance sheet, or more people to network with. While I readily admit that I am in need of an expanded toolset for building and managing businesses I think I made the right decision for me, start a business.

figure it out

The last 3 months have been an education. That is what has made it so difficult and so rewarding. I have a predisposition for only soaking up new knowledge through experience. I really never understood physics and calculus until I programmed my first 3D world, I never really understood music until I played on stage and I know I didn’t really comprehend business when I was playing “find the right formula”. Business is in the everyday monotony of life; what can I do or provide that creates value for you? what concerns you? what concerns me?

Will I go get my MBA one day? maybe

Will I regret not getting it today? definitely not