{"id":4435,"date":"2015-05-20T16:29:37","date_gmt":"2015-05-20T20:29:37","guid":{"rendered":"https:\/\/www.duck9.com\/?p=4435"},"modified":"2015-05-23T00:18:36","modified_gmt":"2015-05-23T04:18:36","slug":"avoiding-startup-bankruptcy","status":"publish","type":"post","link":"https:\/\/www.duck9.com\/blog\/avoiding-startup-bankruptcy\/","title":{"rendered":"Avoiding Startup Bankruptcy"},"content":{"rendered":"<p>Larry Chiang&#8217;s book, What They Don&#8217;t Teach You At Stanford Business School, has an entire chapter devoted to &#8220;Entrepreneurship #Ch9 and Sales via Lead Generation #Ch6&#8221;. As CEO of Duck9, he helps institutions make credit receivables less risky and plays the other side to by getting college <a href=\"https:\/\/www.101secrets.com\/general-population-credit-knowledge.htm\" target=\"_blank\">students a &#8220;FICO&#8221; credit score<\/a> over &#8220;748.6&#8221;. After a Harvard Law School keynote, Harvard Business wrote: \u201c<a href=\"https:\/\/www.harbus.org\/2009\/What-They-Dont-Teach-4531\/\" target=\"_blank\">What They Don\u2019t Teach You at Stanford Business School<\/a>&#8221;<\/p>\n<table style=\"height: 155px;\" width=\"156\" cellpadding=\"10\" align=\"left\">\n<tbody>\n<tr>\n<td width=\"100\"><span class=\"embed-youtube\"><iframe loading=\"lazy\" class=\"youtube-player\" src=\"https:\/\/www.youtube.com\/embed\/QXIaNZi3mHQ?version=3&amp;rel=1&amp;fs=1&amp;showsearch=0&amp;showinfo=1&amp;iv_load_policy=1&amp;wmode=transparent\" width=\"260\" height=\"183\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/span><br \/>\nNY Fashion Week has supermodels getting a high FICO credit score because I supermodel on-the-side<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<div>\n<div>\n<div>\n<div>By Larry Chiang<\/div>\n<div><\/div>\n<div>I have a bankruptcy mentor. His name is Marty Pichison.<\/div>\n<div><\/div>\n<div>If there were a Stanford engineering or Stanford business final exam on startup bankruptcy, I&#8217;d rank on the right side of the bell curve. The bell curve is a grading system that hands out A to &#8220;F&#8221;. Not like &#8216;A&#8217; to &#8220;B-&#8220;. I guess there needs to be a class on this street smart practice of avoiding bankruptcy<\/div>\n<div><\/div>\n<div>Let&#8217;s duck startup bankruptcy<\/div>\n<div>Number one, leading cause: Failure. To. Get. Distribution.<\/div>\n<div><\/div>\n<div>Failure to get distribution is key and is, by definition, a startup not distributing.<\/p>\n<table style=\"border: 1px solid black; padding: 8px;\">\n<tbody>\n<tr valign=\"bottom\">\n<td width=\"48\"><img decoding=\"async\" style=\"width: 48px; height: 48px; padding-right: 8px;\" src=\"https:\/\/pbs.twimg.com\/profile_images\/3411684931\/bd26194fa93733b624ec22966dbdb9d9_normal.jpeg\" alt=\"\" \/><\/td>\n<td><b>Larry Chiang (<a href=\"https:\/\/twitter.com\/larrychiang?refsrc=email&amp;s=11\">@LarryChiang<\/a>)<\/b><\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<div><a href=\"https:\/\/twitter.com\/larrychiang\/status\/581559569727389696?refsrc=email&amp;s=11\">3\/27\/15, 1:53 PM<\/a><\/div>\n<div>When you hear, &#8220;it just takes the right vp of sales in that startup&#8221;, read <a href=\"https:\/\/twitter.com\/sgblank\">@sgblank<\/a>&#8216;s startup articles triumvirate. T-H-E-N <a href=\"https:\/\/twitter.com\/search?q=%23csMajorCRO&amp;src=hash\">#csMajorCRO<\/a><\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Steve Blank outlines &#8220;startup death spiral&#8221; is a five article series. Plot spoiler: &#8220;You&#8217;re going to have to be VP of sales as co-founder&#8221;.<\/p>\n<\/div>\n<div><\/div>\n<div><img decoding=\"async\" id=\"D889F026-C6F4-48B7-8D0F-2319AD06994A\" src=\"https:\/\/www.duck9.com\/wp-content\/uploads\/2015\/05\/image77.jpeg\" alt=\"image.jpeg\" \/><\/div>\n<div>Get the book.<\/div>\n<div><\/div>\n<div>Leading Cause of Startup Death<\/div>\n<div><a href=\"https:\/\/bit.ly\/sblank710\">https:\/\/bit.ly\/sblank710<\/a><\/div>\n<div>Customer Development Manifesto<\/div>\n<div><a href=\"https:\/\/bit.ly\/sblank711\">https:\/\/bit.ly\/sblank711<\/a><\/div>\n<div><\/div>\n<div>\n<div>Customer Development Manifesto (part 2)<\/div>\n<div><a href=\"https:\/\/bit.ly\/sblank712\">https:\/\/bit.ly\/sblank712<\/a><\/div>\n<div><\/div>\n<div>Startup Death Spiral<\/div>\n<div>\n<div><a href=\"https:\/\/bit.ly\/sblank713\">https:\/\/bit.ly\/sblank713<\/a><\/div>\n<\/div>\n<div><\/div>\n<div>Paul Graham heaps on and agrees with Steve Blank when he mentors &#8220;Do things that don&#8217;t scale&#8221;<\/div>\n<div>\n<div><a href=\"https:\/\/bit.ly\/pgrahamCh6\">https:\/\/bit.ly\/pgrahamCh6<\/a><\/div>\n<\/div>\n<div>And &#8220;Startups are growth&#8221;<\/div>\n<div>\n<div>Customer Development Manifesto<\/div>\n<div><a href=\"https:\/\/www.paulgraham.com\/growth.html\">https:\/\/www.paulgraham.com\/growth.html<\/a><\/div>\n<\/div>\n<div>PG implies &#8220;do vp sales work&#8221; and hints but doesn&#8217;t expressly say it Re Lec 3, #CS183B<\/div>\n<div><a href=\"https:\/\/www.paulgraham.com\/ds.html\">https:\/\/www.paulgraham.com\/ds.html<\/a><\/div>\n<div><\/div>\n<div>Sales is what PG wants founders to do. Other YC partners agree<\/div>\n<div><span style=\"-webkit-tap-highlight-color: rgba(26, 26, 26, 0.294118); -webkit-composition-fill-color: rgba(175, 192, 227, 0.231373);\"><a href=\"https:\/\/bit.ly\/jlivingston710\">https:\/\/bit.ly\/jlivingston710<\/a><\/span><\/div>\n<div><span style=\"-webkit-tap-highlight-color: rgba(26, 26, 26, 0.294118); -webkit-composition-fill-color: rgba(175, 192, 227, 0.231373);\"><a href=\"https:\/\/bit.ly\/saltman710\">https:\/\/bit.ly\/saltman710<\/a><\/span><\/div>\n<table style=\"border: 1px solid black; padding: 8px;\">\n<tbody>\n<tr valign=\"bottom\">\n<td width=\"48\"><img decoding=\"async\" style=\"width: 48px; height: 48px; padding-right: 8px;\" src=\"https:\/\/pbs.twimg.com\/profile_images\/3411684931\/bd26194fa93733b624ec22966dbdb9d9_normal.jpeg\" alt=\"\" \/><\/td>\n<td><b>Larry Chiang (<a href=\"https:\/\/twitter.com\/larrychiang?refsrc=email&amp;s=11\">@LarryChiang<\/a>)<\/b><\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<div><a href=\"https:\/\/twitter.com\/larrychiang\/status\/601067214435815425?refsrc=email&amp;s=11\">5\/20\/15, 9:49 AM<\/a><\/div>\n<div>Distribution. It&#8217;s the most thought about issue that VCs fire founders over\u00a0<a href=\"https:\/\/twitter.com\/search?q=%23DuckCh9Bk&amp;src=hash\">#DuckCh9Bk<\/a>\u00a0<a href=\"https:\/\/t.co\/tpevkcrqRE\">duck9.com\/blog\/venture-c\u2026<\/a><\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>What is on your slidedeck? Re Distribution<\/p>\n<\/div>\n<div><\/div>\n<div>#1 method to avoid startup bankruptcy is to be the vp of sales as the co-founder.<\/div>\n<div><\/div>\n<div>Hiring out for it, does not work.<\/div>\n<div>Let me repeat, hiring out for VP sales doesn&#8217;t work.<\/div>\n<div><\/div>\n<div>This happens so often and causes so much startup death, that I created a hashtag that solves startup bankruptcy, &#8220;#CSmajorCRO&#8221;<\/div>\n<div><\/div>\n<div>This solves startup bankruptcy and cures death. Someone give me an effen Pulitzer.<\/div>\n<div><\/div>\n<div>CS major Chief Revenue Officer =<\/div>\n<div>=<\/div>\n<div>All 3 co-Founders<\/div>\n<div>+<\/div>\n<div>VP sales skills<\/div>\n<div><\/div>\n<div>To repeat, &#8220;You can&#8217;t just hire a vp of sales because &#8216;startup death spiral&#8217; happens.\u00a0<span style=\"-webkit-tap-highlight-color: rgba(26, 26, 26, 0.294118); -webkit-composition-fill-color: rgba(175, 192, 227, 0.231373);\"><a href=\"https:\/\/bit.ly\/sblank713\">https:\/\/bit.ly\/sblank713<\/a><\/span><\/div>\n<div><span style=\"-webkit-tap-highlight-color: rgba(26, 26, 26, 0.294118); -webkit-composition-fill-color: rgba(175, 192, 227, 0.231373);\">\u00a0<\/span><\/div>\n<div><span style=\"-webkit-tap-highlight-color: rgba(26, 26, 26, 0.294118); -webkit-composition-fill-color: rgba(175, 192, 227, 0.231373);\">To install sales skills inside a tech co-founder is what that #CSmajorCRO hashtag on twitter is meant to do.\u00a0<\/span><\/div>\n<div><\/div>\n<div><span style=\"-webkit-tap-highlight-color: rgba(26, 26, 26, 0.294118); -webkit-composition-fill-color: rgba(175, 192, 227, 0.231373);\"><a href=\"https:\/\/bit.ly\/buster14512c\">https:\/\/bit.ly\/buster14512c<\/a><\/span><\/p>\n<table style=\"border: 1px solid black; padding: 8px;\">\n<tbody>\n<tr valign=\"bottom\">\n<td width=\"48\"><img decoding=\"async\" style=\"width: 48px; height: 48px; padding-right: 8px;\" src=\"https:\/\/pbs.twimg.com\/profile_images\/3411684931\/bd26194fa93733b624ec22966dbdb9d9_normal.jpeg\" alt=\"\" \/><\/td>\n<td><b>Larry Chiang (<a href=\"https:\/\/twitter.com\/larrychiang?refsrc=email&amp;s=11\">@LarryChiang<\/a>)<\/b><\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<div><a href=\"https:\/\/twitter.com\/larrychiang\/status\/598497828059492352?refsrc=email&amp;s=11\">5\/13\/15, 7:39 AM<\/a><\/div>\n<div>VCs-who-blog\u00a0<a href=\"https:\/\/twitter.com\/a16z\">@a16z<\/a>, reveal your base sales practice to\u00a0<a href=\"https:\/\/twitter.com\/dylan20\">@dylan20<\/a>. 1st up: Why other firms fire founders when growth stalls<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border: 1px solid black; padding: 8px;\">\n<tbody>\n<tr valign=\"bottom\">\n<td width=\"48\"><img decoding=\"async\" style=\"width: 48px; height: 48px; padding-right: 8px;\" src=\"https:\/\/pbs.twimg.com\/profile_images\/3411684931\/bd26194fa93733b624ec22966dbdb9d9_normal.jpeg\" alt=\"\" \/><\/td>\n<td><b>Larry Chiang (<a href=\"https:\/\/twitter.com\/larrychiang?refsrc=email&amp;s=11\">@LarryChiang<\/a>)<\/b><\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<div><a href=\"https:\/\/twitter.com\/larrychiang\/status\/601057139671465985?refsrc=email&amp;s=11\">5\/20\/15, 9:09 AM<\/a><\/div>\n<div>Duck &#8220;startup bankruptcy&#8221;\u00a0<a href=\"https:\/\/twitter.com\/search?q=%23DuckCh9Bk&amp;src=hash\">#DuckCh9Bk<\/a>\u00a0by growing growth so VCs won&#8217;t fire us\u00a0<a href=\"https:\/\/twitter.com\/dylan20\">@dylan20<\/a>\u00a0<a href=\"https:\/\/t.co\/3ksIIaGLm2\">duck9.com\/blog\/stanford-\u2026<\/a><br \/>\n(Yup I said &#8216;growth&#8217; 3x \ud83d\ude42<\/div>\n<div><\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<div>\n<div>ENGR145&#8217;s two anchor videos move\u00a0you to the right on the entrepreneur bell curve (there are sales skills interwoven)<\/div>\n<div>\n<div style=\"font-size: 17px; -webkit-tap-highlight-color: rgba(26, 26, 26, 0.296875); -webkit-composition-fill-color: rgba(175, 192, 227, 0.230469); -webkit-composition-frame-color: rgba(77, 128, 180, 0.230469);\"><\/div>\n<div style=\"font-size: 17px; -webkit-tap-highlight-color: rgba(26, 26, 26, 0.296875); -webkit-composition-fill-color: rgba(175, 192, 227, 0.230469); -webkit-composition-frame-color: rgba(77, 128, 180, 0.230469);\"><a href=\"https:\/\/www.youtube.com\/watch?v=eudADPfTWiE&amp;feature=youtube_gdata_player\"><embed src=\"https:\/\/www.youtube.com\/v\/eudADPfTWiE&amp;hl=en&amp;fs=1\" type=\"application\/x-shockwave-flash\" width=\"425\" height=\"344\"><\/embed><\/a><\/div>\n<div style=\"font-size: 17px; -webkit-tap-highlight-color: rgba(26, 26, 26, 0.296875); -webkit-composition-fill-color: rgba(175, 192, 227, 0.230469); -webkit-composition-frame-color: rgba(77, 128, 180, 0.230469);\"><\/div>\n<div style=\"font-size: 17px; -webkit-tap-highlight-color: rgba(26, 26, 26, 0.296875); -webkit-composition-fill-color: rgba(175, 192, 227, 0.230469); -webkit-composition-frame-color: rgba(77, 128, 180, 0.230469);\"><a href=\"https:\/\/www.youtube.com\/watch?v=WVKHwYJzVVc&amp;feature=youtube_gdata_player\"><embed src=\"https:\/\/www.youtube.com\/v\/WVKHwYJzVVc&amp;hl=en&amp;fs=1\" type=\"application\/x-shockwave-flash\" width=\"425\" height=\"344\"><\/embed><\/a><\/div>\n<\/div>\n<div><\/div>\n<div><\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Larry Chiang&#8217;s book, What They Don&#8217;t Teach You At Stanford Business School, has an entire chapter devoted to &#8220;Entrepreneurship #Ch9 and Sales via Lead Generation #Ch6&#8221;. As CEO of Duck9, he helps institutions make credit receivables less risky and plays the other side to by getting college students a &#8220;FICO&#8221; credit score over &#8220;748.6&#8221;. After [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[],"class_list":["post-4435","post","type-post","status-publish","format-standard","hentry","category-duck-chapter-9-startup-bankruptcy"],"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/posts\/4435","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/comments?post=4435"}],"version-history":[{"count":0,"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/posts\/4435\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/media?parent=4435"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/categories?post=4435"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/tags?post=4435"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}