1. ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION.
RESEARCH CONSULTING
Entrepreneurial
Computer Science
Yonah Alexandre Bronstein, PhD
Session 6
ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION.
©2008 ASTAV, inc. – Confidential & Proprietary – Contact for pricing.

2. ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION.
Session Outline
Administrative Stuff
Homework Check… <skip: did in session 5b>
Chapter 5: Art of Bootstrapping
ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION.
©2008 ASTAV, inc. – Confidential & Proprietary – Contact for pricing.

3. ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION.
Administrative Stuff
Final Project Schedule:
Midterm: Friday Nov. 26th, 12noon
Final: Monday Jan 3rd , midnight
Present: Sunday Jan. 9th 12noon-15:00
@ Bldg 37 Auditorium (Room 202)
BetterPlace Field Trip!
Sunday Jan. 16th @ Ramat HaSharon
Bus leaves BGU at 12noon,
ETA back: 18:00
$ FREE! 
ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION.
©2008 ASTAV, inc. – Confidential & Proprietary – Contact for pricing.

4. ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION.
Homework check…
Students’ turn… <last week>
For Next Session?
“The Project”: Draft 1 (something > nothing)
“The Art of the Start”: prepare Chapter 5
Just a few TBDs from starting…
ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION.
©2008 ASTAV, inc. – Confidential & Proprietary – Contact for pricing.

5. ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION.
Ch.5: Bootstrapping
“Bootstrap”: a leather or fabric loop on the back or side of a boot for pulling it on (Collins English Dict.)
Get up on your feet BY YOURSELF
Think Big – Start Small
Hewlett-Packard, Dell, Microsoft, Apple, eBay…
ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION.
©2008 ASTAV, inc. – Confidential & Proprietary – Contact for pricing.

6. Ch.5: Bootstrap Business Model
“Someone was using the pencil.” Mrs. Parker – The New Yorker
Manage for CASH-FLOW, not profitability (or market share or branding, or …)
Ideally:
Low up-front capital requirements
Short (< 30 days) sales cycle
Short (< 30 days) payment terms (best: pre-paid, if you can get it…)
Recurring revenue (monthly or yearly subscription/royalty)
Word-of-mouth/web advertising / piggyback on existing product/service
ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION.
©2008 ASTAV, inc. – Confidential & Proprietary – Contact for pricing.

7. Ch.5: Bottom-Up Forecast
Top-down forecast, e.g. Internet access in China:
1.3 Billion people, 1% want Internet access, we’ll get 10%
Each account yields $ 240/customer  $ 312 Million/Year !!
Illusion: the % look so small and conservative…
Bottom-up (with real-world constraints):
1 salesrep: 10 call/day that reach prospect, 240 workdays/year
5% of sales calls convert within 6 months, and brings $ 240
We can afford 5 salesreps initially  $ 144 K in 1st year
KEY is E-Motion (so it’s Marketing) but it also has to be True (because to convince others you need to believe it)
ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION.
©2008 ASTAV, inc. – Confidential & Proprietary – Contact for pricing.

8. ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION.
Ch.5: Ship A.S.A.P.
Kawasaki: “Ship, fix, ship, fix…unless biotech or medical.”
Pro: immediate cash-flow & real-world feedback
Con: tarnished image if there are quality problems
YAB: ethical issues in cars, bicycles, food, even just information/advice…
Nu? “Would I let my father/mother use it?”
1984: 1st Mac: not software, hard disk, slots, color or Ethernet…
ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION.
©2008 ASTAV, inc. – Confidential & Proprietary – Contact for pricing.

9. ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION.
Ch.5: Unproven Team
“Experience is the name everyone gives to their mistakes.” – Oscar Wilde
Bootstrap  Focus on Affordability
Inexperienced & young vs. Famous industry veteran
Raw talent & energy vs. VC appeal (but odds are low anyway)
“proof” is a tricky word… Ignorance can be empowering!
Check: Bill Gates, Steve Jobs, Michael Dell, …
ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION.
©2008 ASTAV, inc. – Confidential & Proprietary – Contact for pricing.

10. Ch.5: [Re-]Start as Service
Consulting offers:
Hourly $$
Immediate customer feedback
Tool developed to help can become Company Product
Unfinished/Unsold product can become:
Tool for consulting
Opportunity to solve unexpected problems for other customers
No Income (even if there are Savings) can be emotionally – even if not practically - hard…
ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION.
©2008 ASTAV, inc. – Confidential & Proprietary – Contact for pricing.

11. ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION.
Ch.5: Sell Direct
Multiple-tiered distribution seems tempting…
But direct customer feedback is crucial early on,
Lower margins  Higher volume (hard for a start-up to achieve right away)
And no one else cares more than you!
 Start direct, expand with channels later.
ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION.
©2008 ASTAV, inc. – Confidential & Proprietary – Contact for pricing.

12. ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION.
Ch.5: Reality Checks…
Top decision makers need an experienced critic (pleasant speaking style  a plus…)
WHEN is product/service going to be ready for market?
WHAT are the true COSTS of operations?
WHEN is the business scheduled to run out of money?
HOW MUCH of the sales pipeline is “converting”?
WHAT is the COMPETITION doing that you can’t do?
WHO are your NON-PERFORMING employees?
…How WELL are YOU leading the organization?
Motti’s smile…
ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION.
©2008 ASTAV, inc. – Confidential & Proprietary – Contact for pricing.

13. Ch.5: Understaff / Outsource
Optimism is required in any start, but laying-off hurts:
Those who are let-go
The boss (and down the management chain)
Even those who remain…
Outsourcing  no 100% dependencies
Much easier to adjust, turn-on/off, for both sides
Can still grow into a steady long-term partnership!
People take time (M.A.U., communications, concensus, ...)
ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION.
©2008 ASTAV, inc. – Confidential & Proprietary – Contact for pricing.

14. ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION.
Ch.5: CS Angle?
Prototype or Mock-Up?
Don’t forget the Spec/Architecture… (“later”  “never”)
IP: Patent or Provisional or Just-do-it? (Postini,…)
Physical arrangement matters… (Gain, Xerox DDS,…)
This can be the MOST FUN part!
Start from Scratch
No bug fixes for Customers
(Almost) No Boss…
 Most Creative Phase: Enjoy!
Postini
ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION.
©2008 ASTAV, inc. – Confidential & Proprietary – Contact for pricing.

15. ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION.
Ch.5: Small / Big Stuff
Small Stuff:
Office Space
Furniture
Computers
Office Equipment
Office Supplies
Business cards
Letterhead
Bootstrapping  Penny-pinching
Big Stuff:
Develop product/service
Sell product/service
Collect $$ for product/service
ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION.
©2008 ASTAV, inc. – Confidential & Proprietary – Contact for pricing.

16. ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION.
Ch.5: EXECUTION!
“Can they execute?” (final question from investors, asked or not)
Set & communicate Goals (simple act increases likelihood of success)
Measure Progress (“What gets measured gets done.” at least every 30 days)
Establish a single point of Accountability (“Who’s responsible?” <10s.)
Reward the Achievers (and only them…)
Follow through until an issue is done/irrelevant (exciting  important)
Heed critic (denial is only useful in small doses)
Establish a Culture of execution (by example)
ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION.
©2008 ASTAV, inc. – Confidential & Proprietary – Contact for pricing.

17. ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION.
Q & A & HomeWork!
For Next Session?
“The Project”: Take ONE ACTION / STEP!
Taking at least 2 hours, before Friday noon.
Report item & outcome in business log (.txt).
Encouragement:
START!!
ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION.
©2008 ASTAV, inc. – Confidential & Proprietary – Contact for pricing.