What’s the worst mistake a founder can make?
Choosing partners who are incompatible or not trustworthy. Its important to set expectations and roles early in the relationship. Too much critical company building time is wasted in startups dealing with interpersonal issues.
What’s the most common Startup error?
Inventing a product or service that is not compelling enough to change customer behavior. You must create painkillers not vitamins.
What does “fail fast” mean to you?
Getting your product to market at a minimal cost and time commitment to learn whether your idea will fly, then walking away if it doesn’t. While recent thinking is you must quickly abandon ideas that don’t immediately get traction, there are many success stories of perseverance that ultimately end in a very successful outcome.
If you could fix one thing in the startup eco-system right now, what would it be?
The traditional venture capital model does not match the bulk of companies being founded now because VC liquidity requires sale of the business or IPO. Under todays low friction tech business environment companies which employ 5-10 people profitably, successfully and operate long term can be created but the funding mechanism for these doesn’t readily exist.
What should startups be focusing on in 2013?
Getting to revenue and profit with minimal investment.
When’s the right time to seek funding?
When your idea/product is proven and you need money to scale. Don’t raise money because you can or because everyone else does it.
Thoughts on crowd-funding?
It’s a natural step in todays socially driven world. And its cool for individuals to be able to invest in ideas they believe in. It will be interesting to see 5-10 years out what the return is for those who invest this way.
Best advice you’ve ever gotten?
Your product idea must be a painkiller, not a vitamin if you expect it to succeed.
Guess who’s coming for dinner…who would be your dream dinner guest(s) and why?
Lance Armstrong. We would go for a bike ride, then eat dinner and he would tell me what really went on during the Tour!
About WIM Mentor Augie Grasis:
Named the 2009 Ernst & Young Entrepreneur Of The Year® Award Winner in the Central Midwest Technology category, Augie Grasis is an established entrepreneur known for his savvy business approach and industry-changing ideas. Since founding Handmark in 2000, Grasis has played an important role in defining the mobile content industry and changing the way people use their mobile phones. Currently as Chairman of the Board of Handmark, Grasis remains deeply engaged in the day-to-day business leveraging his experience to advance the company’s position as a leading developer and distributor of mobile applications and services, supporting some of the largest brands in the world. Prior to Handmark, Grasis founded Foresight Resources (later acquired by Autodesk) where he lead industry-first initiatives in the CAD and Home Design software business.