Bob Started

This post has been boiling up inside me for the past month or so.

I graduated college in January 2009. Things were flying high. I was the runner up for man of the year at Rutgers University (25,000+ students), I was voted the most distinguished undergrad member of my fraternity, and I was running a successful local car detailing company. (Pennza.com – website’s still up, but we no longer run it. ugly site, but had 20% conversion rate-not too shabby).

Fast forward two years. I’m a freelance web developer (self taught since degree is BS in marketing) and I’m working on a new startup with Eric Ries called Easy Unsubscriber.

Our application was “not accepted” into Techstars Boston today.

I’m very optimistic about Easy Unsubscriber and I think this company can completely change the face of email marketing. Yes, it looks like we’re a clone of unsubscribe.com at the moment, but there’s a ton of really cool stuff in the pipelin.

Long story short, I’m excited, very excited.  But I’m nervous, extremely nervous.

I think that paranoid optimism is the best way to describe my entrepreneurialism.  Always optimistic about what great things can happen, while always staying paranoid about what can go wrong.

The weird thing with me is that, in every phase of my life, it has taken two years to get a hold of my bearings, then excel.

In high school, I was in all AP classes and getting A’s in all classes junior and senior year – after I almost failed a class that my mom’s friend (and former neighbor) taught.

In college, I always had good grades, but it wasn’t until Junior year that I became my fraternity’s president and an active leader on campus.

I’ve been out of school for two years.  I don’t have any more excuses.  I thought Techstars would help jumpstart my two year delay, but now It has to be something else.

These setbacks always get me to work harder than I was before.  So if you’re reading this, I’m probably coding right now (it probably doesn’t matter what time it is).

Bob

If you’re working in a home office you need to emphasize the office and deemphasize the home. You may not always work normal nine to five hours, but when you work… work!

If you are working and you have the tv on – turn it off. Many people tell themselves that they can work better with the tv on.

Most people are lying to themselves.

Do yourself a favor. Turn the tv off and watch your productivity soar.

If tv is a major part of your life, you can turn off the tv and then reward yourself for your hard work by taking a half hour break every so often to watch a full show.

If you alternate working for two hours and watching tv for one hour, you will be much more productive than working for three hours with the tv on. This is because when the tv is on, you constantly get distracted and it takes a certain amount of time to refocus and concentrate on each task.

Studies have proven that listening to classical music can increase productivity. If you are a person that needs background noise, listen to classical music.

In closing, do yourself a favor – turn off the tv.

Robert M. Cavezza
(Bob)

The Shark Tank started this past weekend on ABC.  The show consists of six “sharks” who act as venture capitalists and angel investors.  I think the show is a great learning experience for anyone who has an idea or company to pitch to investors.  There are a few key things to keep in mind when watching the show. 

When Investors Invest

VCs and angel investors never invest in an idea.  Seed capital is the initial money to test an idea.  This money is very hard to find and is very risky for the investor.  This is why most startups begin with money from savings, credit cards, friends, and family.  It is not impossible (but close to impossible), and when you find seed capital, the investors will want an extremely large equity stake in turn for their money.

Angel investors and venture capitalists want to see results.  They want to see sales, profits, and potential for growth.  If I give someone $200,000 or more, I want to make sure the idea works.  Words someone tells you can lie.  Sales, profits, and sales orders don’t lie.  If you have a viable idea and you want money to expand your company, make sure you can prove it with past performance.   

VC & Angel Investing Minimums

Angel investors usually invest anywhere from $100,000 to a million dollars or more.  Venture capitalists usually will not invest in a company unless there is a huge potential for growth and the company is seeking $2,000,000 or more.  Then why are many of these people asking for between $50,000 and $100,000?  The reason is because this is television and not real life.  Often, the only ways to get money if you need this small amount is by using friends & family, Small Business Administration backed bank loans, credit cards, and personal savings. 

Company Valuation

This is the most real aspect of the show.  Remember, if you are asking for $100,000 for a 10% stake in your company, you are telling the investor that you think your company is worth $1,000,000 right now.  This is where debate usually happens in the investment process.  You argue that the company is worth more and they argue the company is worth less.  Remember that this is an investment for them, and they are hoping that the company grows much quicker than the stock marketing and similar investment opportunities.  If you just have an idea, it probably isn’t worth much of anything except the costs of a patent.  A company with existing sales will have a much higher valuation than most patents and ideas.

For those who have never heard of BobStarted, this blog was originally hosted at bobstarted.blogspot.com and forwarded from bobstarted.com.  Since the blog started almost a year ago, it has changed a little over time, but has always kept to one core principle – help entrepreneurs make less mistakes by chronicaling my journey.  Here is the original introduction to the blog almost a year ago.

Hi. My name is Robert M. Cavezza and most of my friends call me Bob. I have been dreaming of being an entrepreneur since I was a junior in high school. Now, as a Senior at Rutgers University, I am proud to say that I have officially “started” my company and entrepreneurship dreams along with my partner and best friend since I was 8 years old, Nicholas Pennisi.

I have a few goals for this blog. First, I want to chronicle my life as an entrepreneur and have something to look back on in a few years. Second, I want to be able to help other potential entrepreneurs have a chance to take a first hand look at what really goes into starting your own business. Before starting, I read several books on startups and entrepreneurship and thought I was fully prepared to start. I soon realized that nothing could ever beat first hand experience and learning on the job. Third, I want to use this blog as a way to help others exchange ideas. I want this to help not only other companies, but my own company as well.

I hope everyone finds this blog useful and entertaining.

-Robert M. Cavezza (Bob)

As you can see, my writing style has changed since the first post.  Also, my business aims have changed.  I plan to attend Babson College in the Fall of 2010 to immerse myself in everything that is entrepreneurial.  I have been told that Babson is the best place to go if you want to be an entrepreneur.

Another goal of mine is to gross $1,000,000 in revenue before Fall 2010.  If I can attain that goal, I will be able to join a special program at Babson for high-achieving entrepreneurs.  My goal for this year is still to gain $100,000 in revenue.  I am not 100% sure how close I will be to that goal, but I will half half year estimates at the end of May.

I will have more updates in the coming days.  If this is your first time at Bobstarted.com, Welcome!

Best Regards,

Robert M. Cavezza (Bob)