When the folks at DSA invited me to participate in the new “Blog” concept for the association, I’m afraid I reacted as I often do when presented with most new opportunities – I said “Yes” first and only then started to think about the obligation and the angle. As I now think about how to add-value to the Digital Signage conversation and offer thoughts and insights that anyone else might read,  I took stock in who I am, what I do and where I am right now. The title “Notes from a DS serial entrepreneur” was literally the first thing that popped into my head. As I write this, I embark upon the daunting task of helping some smart and capable guys re-start and re-establish my latest new digital signage company – Vertigo Digital Displays LLC – and my colleagues and I are in the midst of an endless checklist of “#1 Priorities” associated with the start-up.

My thought was that perhaps as we tackle these innumerable details, some mundane and some awesome, perhaps our insights and approaches might give ideas and inspiration to others (or not). In my experience, I eat this kinda stuff up. I’m a big believer that the “wheels and mousetraps” that have already been invented work great, but riffing on these great ideas and differentiating them to make them our own is where business success comes from in a hyper-competitive, Web 2.0, 24-7 realtime global business environment. If this stuff does strike a chord or generate questions, or peg your BS-meter, for gosh-sakes SPEAK UP. Drop a quick comment. Thoughtful and productive is better than a glib throw-away, but we’ll take what we get. As I try to steer this ship, both the new business and the blog, I need both iceberg spotters and interested passengers, if you know what I mean.

Episode 1 – It’s the little things…

Who knew how hard it would be to buy a company in Canada? Not me. The things we were most concerned about – suppliers, customers, employees, products – that we worried about and spent most of our due diligence time on, all passed our sniff tests with flying colors. Things we tend to take for granted – corporate structure, bank account, insurance, phone & internet services – seem to be the items that are still on the to do list at the end of each day. There’s no way to overstate the importance of having a dedicated, flexible lawyer who knows our business goals, can roll up her sleeves, go toe-to-toe with those who would slow us down and take our (limited) money. If you don’t feel the same way about your “counsel”, perhaps you should be looking for a new one, because they are out there.
Vertigo Digital Displays specializes in design and manufacturing of integrated digital display solutions for OOH Media companies like Clear Channel, Lamar, Titan, CBS Outdoor and others. That being said, this is a small company that serves a niche market of a niche market. Our claim-to-fame is creating custom-designed LCD display solutions for outdoor advertising and information applications such as rail platforms and digital bus shelters. We provide these products as an OEM, and typically in response to some sort of open bidding process.  I’ll try not to make this a sales pitch or bore you with the details, but I felt this description was critical to understanding where I am coming from.

Episode 2 – Managing to the “Nut”

Like all start-ups, we have no money. Ok, not NO money, but no REAL money. We are bootstrapping. Who in this industry hasn’t been there? The key to surviving the early days of awaiting that first big project, or that angel funding, is to recognize that you have no money and ACT like you have no money, but not LOOK like you have no money (at least to customers and potential investors). There’s a fine line between being fiscally responsible and appearing desperate. I like to think of myself as a “thin-carpet” entrepreneur – fancy offices with new chairs and thick carpets make me nervous (unless they belong to your biggest customer.)

Any “successful” entrepreneur (ie- still in business and growing after year three, or with a successful exit after year five) must be good at two of three things, in my opinion:

1.    Raising money (usually pre-revenue, difficult these days)
2.    Landing customers (usually before the product is shipping)
3.    Managing to the “nut” (do you know what your “nut” is?)

I would argue that 1 & 2 are more art than skill, and #3 is an essential skill to start-up survival (and the #1 reason for business failure). Known as under-capitalization, or running out of cash, or failure to manage to cash flow – not managing to the nut will kill your new (or existing) business if you are casual about it.

OK, how many of you are saying “This is so basic, everyone knows this.” Yeah, maybe this is a bit of Start-up 101. All I can say is that if you do not know what your nut is (cash required to fund operations and the source/forecast for obtaining it), there’s an iceberg on the horizon my friend.

Episode 3 – Building your own runway

I talk with other entrepreneurs every chance I get. I take them to lunch, I buy them coffee. I send them LinkedIn notes asking for an update ad nauseum. What I want to know mostly is – how and where are you finding business and customers? In my previous episode, I gave you my three skills for a successful entrepreneur:

1.    Raising money
2.    Landing customers
3.    Managing to the “nut”

I must admit that I most enjoy and am most successful at #2 – Landing customers. One of my unofficial mantras is “nothing happens until somebody sells something”. Lots of people can identify prospects, qualify leads, get a meeting, present and propose until the cows come home. To be a successful entrepreneur you need to be able to get the fish in the boat. The signed PO, hopefully with a nice deposit, often for a product you have yet to deliver. People who can do this well, those who truly understand the difference between being in sales and SELLING, I revere these people. You know people like this. They’ve probably sold something to YOU. If you are fortunate enough to have one working for you, “play ‘em & Pay ‘em”. If you don’t yet have that guy who delivers on their sales forecast, somehow, every month, and has been doing that wherever they’ve worked. Find one, soon. Thank me later.