Entrepreneurs: Then and Now
OK, so "Then and Now — Advise to Entrepreneurs". All right, so just remember back then, back then is 1997-1998. Now is now. OK, so this is the difference in advice to entrepreneurs. Back then, the foundation of most entrepreneurs was cleverness. Cleverness, meaning, "Oh, let’s see. We got drunk one weekend, and we figured out that there are 300 million people in the United States. Roughly, one out of five owns a dog. So, that means there are 60 million dogs, or so." OK? "Each dog eats two cans of dog food per day. That's 120 million cans of dog food per day. How hard could it be to sell 1% of that dog food thru our website everyday? So let's start dogfood.com." Well, this intermediate the brick and mortar pet food store. OK? That's an idea of cleverness. Today, the foundation of a company is technology. That's why I'm speaking at the engineering school, because it's all about technology. Early stage investors want to invest in stuff that is made out of technology. I tell our people at the Garage, if I, Guy Kawasaki, psyche major at Stanford University, can understand the technology behind the company, the company is not viable. If I'm clueless, that is a good sign. All right? Second thing is the priority. Back then the priority of a company was to build a brand. That's why people advertise at the Super Bowl. You were going to capture 12 million eyeballs. If you capture 12 million eyeballs, somehow, you'd be able to monetize that brand. That is no longer the priority at all. The priority is to build a business. It is all about business. We have gone from a world based on PowerPoint to a world based on Excel. It has gone from pitching businesses to actually doing business. In fact, more accurately, we have gone from a world built on PowerPoint to a world built on Great Plains Accounting. The third thing is the financing. Back then financing was "raise more money." Don't worry, capture the 12 million eyeballs and figure out the business model...
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