The Rise of the Business Accelerators

by Steph B. on May 16, 2012

Business accelerator programs have sprouted up around the country, providing young entrepreneurs with the support and funding they need to bridge the path between ideas and developing working prototypes. Accelerator programs operate much like mini-boot camps, moving start-ups through their life cycle at an accelerated pace. Business accelerators trade money and guidance for a small stake, usually between four and 10 percent, of the start up company. These programs combine services offered by business incubators with additional resources and benefits to help start-ups quickly secure funding and receive validation. Unlike business incubators, accelerators are more selective, often accepting only 10 startups per cycle. The reduced number of companies offers a more tailored business development process.

In recent months, business accelerators have become the latest business trend, leaving cities without accelerator programs at risk of loosing its start-ups.  Bryan Menell, co-founder and managing director of Capital Factory, said that business accelerators might soon replace business incubators.  

The National Business Incubator Association estimates that 80 percent of incubated companies survive their first three years of business, compared to the 35-40 percent survival rate of non-incubated companies. Y Combinator , a business accelerator in Silicon Valley, has stemmed 380 successful startup companies since it launched in 2005. Reddit and Dropbox are among companies that have graduated from Y Combinator. TechStars, an incubator based out of Colorado, has a success rate of 86 percent, with 109 of its 126 startup companies are still in business.

Cities such as Silicone Valley and New York City are being flooded with aspiring start-ups, eager to participate in accelerator programs. With all the benefits and success stories attributed to these programs, it’s clear to see why entrepreneurs are eager to participate in business accelerators.

Here are some ways entrepreneurs can benefit form participating in accelerator programs.

  1. Networking opportunities: One of the main benefits of accelerator programs is the networking events held throughout the program. These events offer entrepreneurs the opportunity to pitch their start-ups to investors and other business professionals.
  2. Mentoring: Most accelerators offer one-on-one mentoring throughout the program. The LaunchHouse Accelerator will assign mentors to start-ups based on their needs and the mentor’s experiences. Mentors are an essential part of small-business growth offering advice and professional connections to young entrepreneurs.
  3. Learn the basics of businesses: Accelerator programs teach basic branding and marketing techniques, a concept foreign to many entrepreneurs. Branding and marketing skills can be extremely helpful, especially to young entrepreneurs.   The skills can help startups reduce costs by preforming their own marketing rather than outsourcing it to public relations and marketing firms.
  4. Help secure follow-up funding: Graduates are offered the opportunity to pitch to venture capitalists or to apply for further funding from the program. Accelerator programs are typically concluded with a showcase-day, and event at which accelerator graduates pitch their ideas to business investors. The validation and financial connections provided by the accelerator positions graduate companies a more attractive and secure option for investors.
  5. Peer support group: During the course of the program, young entrepreneurs work alongside and develop relationships with other entrepreneurs who share the same values and motivation as them. These support groups help build entrepreneurial communities and provide young entrepreneurs with support and inspiration.
  6. Validation. Accelerator graduates gain the bragging privileges associated with being selected for and surviving the program. This validation is attributed to the start-ups acceptance to the program and their support and appraisal by a group of successful founders and investors.

LaunchHouse will begin its transition into an accelerator program in the fall of this year with its inaugural class of 10 promising startups. In upcoming years, we hope to put Cleveland back on the map with an accelerator program that rivals Y Combinator and TechStars. If you are interested in becoming a part of our first accelerator class, apply online before July 1st.

LAUNCHHOUSE & ISRAEL BONDS WELCOME JONATHAN MEDVED

by Stephanie on May 14, 2012

LaunchHouse and New Leadership Division of Israel Bonds are welcoming world-renowned start-up expert Jonathan Medved, on Monday, June 11, 5:30pm-8pm. LaunchHouse is a lean business accelerator, while Israel Bonds sells securities issued by the State of Israel that help develop every aspect of Israel’s economy.

Medved, Israeli venture capitalist and entrepreneur.

Medved’s entrepreneurial success was profiled in the critically acclaimed book “Start-Up Nation: The Story of Israel’s Economic Miracle”.

Medved is co-founder and CEO of Vringo, an Israeli company that provides software platforms for mobile social and mobile video services. Before starting Vringo, he built Israel Seed Partners into a $260 million business that birthed 60 high tech firms from $2 million of capital.

In 2008, the New York Times named him one of the ten most influential Americans in Israel. He recently received the Innovation Award from Global Telecoms Business Wireless network for launching the world’s first paid video ringtone service.

Entrepreneurial success streams through Medved’s family, as his father David founded MERET Optical Communications, Inc.  MERET was sold to Amoco in 1990.

Medved’s great business acumen makes him an affluent speaker at international forums on venture capital and high tech development. He is a board member of various non-profits, including Israel 21-C, and contributes to opinion columns about Israeli life, family and culture.

Lending his time to LaunchHouse on June 11 will be a pivotal learning experience for Cleveland’s start-up community.

“We are extremely excited to welcome Jon to LaunchHouse,” said LaunchHouse managing partner, Todd Goldstein. “With his life-long experiences and wealth of knowledge, Cleveland entrepreneurs can learn a lot from Jon. He is an asset to the entrepreneurial community.”

Saul Singer and Dan Senor, in their best-selling book Start-up Nation, describe Medved as “one of Israel’s legendary business ambassadors…(he) has taken on a role that – in any other country – would typically belong to the local Chamber of Commerce, Minister of Trade, or Foreign Secretary.”

Tom Brokaw called Start-up Nation “a playbook for every CEO who wants to develop the next generation of corporate leaders.” The book has reached number five on the New York Times and Wall Street Journal business best-seller lists, and is also a best-seller in Israel, India and Singapore.

Ed FitzGerald, Cuyahoga County Executive, will be opening the event. The former FBI agent and mayor of Lakewood is an advocate for economic development in Cuyahoga County. Executive FitzGerald announced the establishment of a $100 million economic development fund that will fuel a public and private partnership for projects throughout the county.

Again, Jon Medved will be speaking at LaunchHouse, 3558 Lee Road, Shaker Heights 44120, on Monday, June 11, 5:30pm-8pm.  RSVP is required to attend this event. Click here to RSVP.

Sponsors for the evening include Medical Mutual, Squires Sanders, Huntington Bank, Key Bank, Fifth Third Bank, PNC Bank, Bizdom and Case Western Reserve University.

About New Leadership Division of Israel Bonds

Israel Bonds are versatile securities that can be found in the portfolios of an impressive array of investors, including state and municipal governments, national and local unions, universities, foundations, corporations, financial institutions and individuals. Worldwide sales have exceeded $33 billion since the bonds were first issued in 1951, and Israel has never defaulted on payment of principal or interest. Israel’s outstanding repayment record and forward-looking economy have earned her investment grade ratings from Moody’s, Standard and Poor’s and Fitch, although Israel bonds are not rated. The Bonds organization has been a catalyst for Israel’s rapid evolution from struggling agrarian nation to global economic powerhouse and innovative wonder. Visit www.israelbonds.com for more information. 

Rise of the Tech Startup

by Candace on May 7, 2012

It is getting progressively harder for entrepreneurs to rise above the competition, needlessly even get noticed by investors.  It seems tech and Internet-based startups are receiving more funding than traditional bricks-and-mortar startups. Why is that? Perhaps it’s because mobile and Internet usage is progressively growing.

A recent article from Engadget reported that more than 50% of U.S. mobile users own smartphones. International Data Corporation (IDC) predicts that by 2015 more U.S. web users will be accessing the Internet from a mobile device than from a PC. They also predict that the number of global Internet users will grow from 2 billion in 2012 to 2.7 billion in 2015.

“The Internet killed the music business, ruined the newspaper industry and has effectively brought the whole publishing world to its knees…” – Seth Fiegerman (@sfiegerman)

Internet startups receive more funding compared to startups that solve bigger societal problems for a several reasons, such as overhead cost. They seem to take a backseat to tech and Internet companies aside from the simple fact that demand is growing, Internet-based companies require less capital.

“Unfortunately, curing cancer or developing a better way to recycle may help people in their daily lives and be good for the planet, but they are not sexy and not quickly profitable these days.” –Chris Barsness (@BarsnessLaw)

In February, Business Insider published an article highlighting 26 up-and-coming tech entrepreneurs proving that status quo simply doesn’t cut it anymore. Here are five of those start-ups whose practical products and services stand apart.

Sam Shank (@samshank)

Hotel Tonight

Sam is the founder of HotelTonight, a service that finds last-minute deals on unsold hotel rooms with up to a 70% discount. Apps are available on iPhone and Android.

Sam Zaid (@samzaid), Elliot Kroo (@ellkro), and Jessica Scorpio (@jessicascorpio)

Sam, Elliot and Jessica are the co-founders of GetAround, a peer-to-peer car lending service. Hourly and daily rentals are available by people in your area and insurance is provided. Sharing your car for 15 hours a week can earn you $350/month.

Leah Busque (@labusque)

Leah founded TaskRabbit, a company that outsources your daily tasks to trustworthy peers around the community. Just about anything you need to have done can be handled by friendly and reliable people listed on TaskRabbit’s network of task volunteers.

Travis Kalanick (@travisk) and Garrett Camp (@gmc)

Uber

Travis and Garrett are the co-founders of Uber, a company that allows you to book and pay for auto transportation on your smartphone. Practical for larger cities, Uber eliminates the hassle of finding a taxi.

Ren Ng (@Lytro)

Ren is the founder of Lytro, a camera that utilizes light field photography to take pictures. Users can instantly snap photos and go back later to refocus them. Lytro provides an easier way to freeze time and memories.

Are you a tech entrepreneur, or do you know of an entrepreneur that is creating practical solutions to common problems? Consider applying for LaunchHouse’s Accelerator program. The deadline to apply is July 1 and chosen applicants begin September 3.

Why Every Entrepreneur Needs a Mentor

by Steph B. on May 3, 2012

Mentors can be one of the most powerful weapons for an entrepreneur, providing guidance, wisdom and connections. Unlike critics, who tend to look behind you to tell you what you did wrong, mentors look forward to help you succeed. They offer a helping hand, providing entrepreneurs from all walks of life the honest feedback needed. Their encouragement, funding and long-lasting relationships make them the ultimate coach. The right mentor can have a substantial influence on entrepreneurs of all ages.

Amy Errett, venture capitalist and StartOut board member, said entrepreneurs with mentors tend to build more successful businesses.

“Entrepreneurs not only deserve this type of care and feeding, but can more effectively use this type of knowledge transfer to build their businesses—resulting in portfolio companies that make better business decisions and achieve greater success,” Errnett said.

Mentors provide five main benefits to entrepreneurs.

  1. Knowledgeable advice: Mentors have often been in the same or similar situations as their mentees, making them an excellent source for advice. The role of mentors, dating back to Homer’s Odyssey, is to share their knowledge and experiences with younger professionals. This knowledge transfer helps entrepreneurs learn quickly, avoid mistakes and make stronger business decisions.
  2. Develop long-term relationships: The relationship between a mentor and a mentee is based on a mutual respect and a mentors desire to share their knowledge and experiences. Mentor relationships traditionally span over an extended period of time, developing personal relationships based on knowledge transfer and guidance.
  3. Tell it like it is: A good mentor is honest with their mentee and hold them accountable for their mistakes. This is perhaps one of the most valuable traits of a mentor. Many young entrepreneurs bounce ideas off of family and friends, who often offer little honest or valuable advice.
  4. Open doors: Mentors have a web of personal and professional connections to share with their mentees. These connections can open doors  and drive businesses for their mentees.
  5. Keep on track: Many entrepreneurs, especially new ones, tend to loose site of the big picture in their search for perfection. Mentors help keep entrepreneurs on track and moving forward by providing outside perspectives and guidance.

Mentorship doesn’t just benefit the mentee; it’s a two-way relationship that benefits both parties. Mentorship offers business professionals a way to give back, a chance to share their expertise and a way to become more involved as a leader, service provider and consultant. If you are a business professional looking to share your knowledge and experiences with young entrepreneurs, apply to become a LaunchHouse mentor!

Entrepreneurs and College: A Good Mix?

by Candace on April 25, 2012

Do entrepreneurs need a college degree?

This question has been asked for a long time. Truthfully, there is no one-size-fits-all answer. I wrote this blog post because of a few questions I have: why do so many people go to college? Do the same types of people go to college now as did just a few decades ago? Are all students that go to college happy about being there? And if not, what are their options?

James Altucher has an interesting take on the alternatives to college.  Altucher is a successful entrepreneur who attended college and now shares his experiences in controversial writings on why kids shouldn’t go to college. His number one alternative – starting a business! According to Altucher, everyone can be an entrepreneur, but not everyone can be a successful entrepreneur.

Most people won’t rule out higher education completely, but they are starting to see that college is no longer the surefire path to success that it once was. Many influential entrepreneurs see little importance in receiving a college degree.

Peter Thiel, founder of PayPal, is a committed supporter of young entrepreneurs. The 20 Under 20 Thiel Fellowship Program gives chosen applicants a $100,000 grant and two years to work on their ideas. The learning is hands-on and fellows must “learn by doing.” Well-respected mentors from Silicon Valley and incubators around the nation provide guidance and support.

“Some of the world’s most transformational technologies were created by people who stopped out of school because they had ideas that couldn’t wait until graduation.” –Peter Thiel

Sam Krichevsky, LaunchHouse managing partner and COO, shared his thoughts on the topic:

“You can gain more knowledge working with mentors and professionals in the field on a daily basis than sitting in a classroom reading out of a textbook. That’s how you learn: hands on.”

Krichevksy continues, “Being a tech entrepreneur means identifying need markets and creating disruptive technologies (anything that alters the space from what there is now). Pinterest is a great example.”

“Entrepreneurs like to help each other through community and networking. There is a sense of camaraderie in this industry. The LaunchHouse Accelerator program will be comprised of teams of 2-3 co-founders because LH believes in the power of the group. College focuses on individual achievement. Entrepreneurship is less quantifiable and often involves more than one founder.”

Despite the appeal for entrepreneurs to pass up college, you may be surprised to find out that:

-45% of entrepreneurs have a Master’s degree

-46% of entrepreneurs have an Undergraduate degree

-7% of entrepreneurs have less than an Undergraduate degree

-2% of entrepreneurs have a Ph.D.

College is the right choice for many people, especially those entering technical fields such as medicine, law, engineering, etc. Entrepreneurship is a field of experience-based learning. Schools know that and are starting to develop entrepreneurial programs. While basic business knowledge is important, the question is can you teach entrepreneurship? Colleges seem to think so. Check out the top 25 undergraduate entrepreneurial colleges.

What do you think? Should entrepreneurs go to college? Why or why not?

If you are an aspiring entrepreneur wondering what your next step is, consider applying for the LH Accelerator program. Teams of 2-3 co-founders can apply and applications are open until July 1.

The LH Accelerator will match seasoned, industry-specific mentors with the 10 teams, as well as invest $25,000 per team. These mentors will guide the teams as they experience the four-phase Accelerator program. The completion of each phase is a key milestone that helps the teams to build significant elements of their business model and investor dashboard.

The LH Accelerator drives business success through hands-on, pertinent experiences, which takes teams from idea to validation over the course of 12 weeks. The process is specifically designed to help entrepreneurs build strong businesses and to improve the likelihood of securing follow on funding.

LaunchHouse Accelerator – Apply Now!

by bdavis on April 24, 2012

Women Entrepreneurs; Success in a Male Dominated Niche

by Steph B. on April 20, 2012

Revolutionizing the home, beauty and clothing industries, to name a few, empowered women worldwide are building million dollar companies, shattering the glass ceiling that once suppressed them. Entrepreneurship, like many other business professions, has continued to be a male dominated niche. While breaking into this niche is anything but easy, women worldwide are finding that the payoff can be rewarding. According to the new State of Women-Owned Businesses, an overview of business activity trend in women’s businesses ownership from the past 15 years, American women are starting about 550 new businesses a day! In 2011 alone, American women opened more than 200,000 new enterprises and women-owned multi-million dollar firms reached an all time high. Groups such as Ladies Who Launch and Wild Women Entrepreneurs are among many women entrepreneurial networking sites that have flourished in recent years.

With all the progress women entrepreneurs have made, we thought it’s time to celebrate by paying our respects to some one-of-a-kind women. Here are some women entrepreneurs that have shaken-up the male-dominated niche.

  • Oprah Winfrey @oprah Winfrey has become a household name around the globe. “The Oprah Winfrey Show” catapulted Winfrey into a life of entrepreneurship and philanthropy. Born into poverty, Winfrey climbed from the bottom up to become America’s most beloved entrepreneur. It’s her can-do attitude and driven spirit that made Winfrey the legend she is today.

“Playing small doesn’t serve me. The truth is, I want millions of people. I’m not one of those people who says, ‘Oh, if I change just one person’s life … Nope, not satisfied with just a few. I want millions of people!”

  • Martha Stewart @MarthaStewart Former model and stockbroker Martha Stewart created a multimillion dollar industry out of her passion for fine-cuisine and decorating. Steward started her own catering company in ’73 that bloomed into a million dollars industry within the decade. Within no time, Stewart authored her first book Martha Stewart’s Entertaining and became the spokesperson and designed for a new line of Kmart linens and tableware. Further down the line, she took ownership of her magazine Martha Stewart’s Living and launched her hit TV show, “The Martha Stewart Show.” Today, Stewart continues to expand her multi-billion dollar empire making her one of the most successful entrepreneurs of recent generations.

“I think people who have a real entrepreneurial spirit, who can face difficulties and overcome them, should absolutely follow their desires. It makes for a much more interesting life.”

  • Anita Roddick Roddick turned her garage-based business into one of the world’s most successful retailers of cosmetics. While her husband was on an extended trip, Roddick began creating cosmetics out of material she found in her garage. In 1984, only a few years later, The Body Shop went public and franchise stores began emerging around England. Today, there are more than 1,980 stores worldwide spanning 50 different markets. Roddick was also an avid social activist. The late entrepreneur donated $1.8 million to the Amnesty International’s School for Activism.

“An entrepreneur is very enthusiastic and dances to a different drum beat, but never considers success as something which equates to personally wealth.”

  • Photo from wowellie.comRachael Ray @rachael_ray This multi-million dollar Food Network superstar has been labeled a modern Martha Stewart. Ray began much like Winfrey with her show 30-Minute Meals. Her guide to quick and simple meals paved the road for her five Food Network television programs, monthly magazine and 19 published cookbooks. In addition to her media success, Ray recently launched a line of cookware that can be purchased at stores nationwide. Ray shared this advice one being a successful entrepreneur.

“Whatever it is that you’re successful at, that has to be the No. 1 goal. In my case, it is accessibility; so all of my products have to be usable, accessible and affordable.”

While entrepreneurship may still be a male dominated field, women entrepreneurs the world over have proven that they’re here to stay.

LaunchHouse Accelerator Program Takes Off

by Stephanie on April 18, 2012

LaunchHouse (LH) issues a call internationally to entrepreneurs, and those who dream of being entrepreneurs: Apply! On April 18, the LH Accelerator begins accepting applications for its upcoming, 12-week program. LH is the first and only incubator inNortheast Ohio chosen to receive the ONEFund grant from the Ohio Third Frontier Program. Over the past three years, LaunchHouse has succeeded in seeding, mentoring, and helping 30 companies to obtain follow-on funding. It plans to enhance those efforts with a new group of software and web-based tech entrepreneurs participating in the program this fall. 

The LH Accelerator kicks off September 3. The application deadline is July 1. LaunchHouse will invest a total of $25,000 in each of 10 entrepreneurial teams (consisting of two or more co-founders) in software and web-based technology. This pre-seed funding was made possible by the $200,000 ONEFund grant and a $50,000 matching grant fromClevelandbased, Clarion Direct Investment.

From the applications submitted, only thirty teams will be selected to attend the “Techie Unconference”. During the Unconference, they will pitch to a selection panel of industry experts, investors, and potential mentors. Details of which will be available through the LH website, www.launchhouse.com, later this spring. From this group of thirty, 10 entrepreneurial teams will be selected to spend 12 weeks honing their business concept and structuring their company in order to be able to attract further funding.

The LH Accelerator will match seasoned, industry-specific mentors with the 10 teams. These mentors will guide the teams as they experience the four phase Accelerator program. The completion of each phase is a key milestone that helps the teams to build significant elements of their business model and investor dashboard. The LH Accelerator drives business success through hands-on, pertinent experiences, which takes teams from idea to validation over the course of 12 weeks. The process is specifically designed to help entrepreneurs build strong businesses and to improve the likelihood of securing follow on funding.

“Showcase Day” marks the culmination of the 12 week LH Accelerator program. At Showcase Day, program graduates will demonstrate a proof of concept to investors, potential customers, other entrepreneurs and a public eager to learn about new business growth in the region.

“Located within and focused onNortheast Ohio, the LH Accelerator plans to bring entrepreneurs from across the country to a region with enormous educational, financial and interpersonal assets, an affordable cost of living and a welcoming population,” said LaunchHouse Managing Partner Todd Goldstein.  LaunchHouse will provide these 10 entrepreneurial teams with low-cost housing and a playful work environment, in which they can plan to stay and grow their businesses, if they so choose.

”Entrepreneurial boot camp programs, like the Ohio ONE Fund program, are the most exciting frontier in venture capital today,” said Clarion’s CEO and President Morris H. Wheeler. “True to the roots and philosophy of Clarion’s founder, Cleveland investing legend Morton Cohen,  Clarion’s grant will support entrepreneurs without any strings attached, allowing them the freedom to pursue their vision.”

To submit an application to the LH Accelerator, visit www.launchhouse.com beginning April 18.

About Clarion Direct Investment
Clarion Direct Investment is the venture capital and private equity arm of Clarion Capital Ltd., a diversified investment partnership designed to provide its investors with appropriate asset allocation and diversification across all asset classes. Morris H. Wheeler, CEO and President of Clarion Direct Investment, has been successfully investing in technology ranging from pre-seed stage venture capital to private equity for more than 15 years through his company Drummond Road Capital Inc.  For more information on Clarion Direct Investment, click here. 

About Ohio One Fund

Ohio’s New Entrepreneurs Fund (ONEFund) is an innovative approach to retaining and attracting the best and the brightest talent to Ohio. This exciting mentorship-driven program focuses on the professional development of young entrepreneurs with the necessary ambition to commercialize new technologies and looks to link promising new ventures in Ohio with early-stage investment capital. ONE Fund will aggressively recruit young entrepreneurs from within Ohio and outside the state and will foster the young entrepreneurs’ professional development by educating them on what it takes to form a business in Ohio.

Four Mediums to Boost Your Entrepreneurial Knowledge

by Steph B. on April 13, 2012

Knowledge is power - Sir Francis Bacon.

Here at LaunchHouse, we believe in constant innovation and learning. We have collected a collaboration of books, blogs, apps, and Twitter influences designed to help boost your entrepreneurial knowledge. As Sir Francis Bacon once said, “knowledge is power,” so read up, start following, subscribe and download.

Books:

“4 Steps to the Epiphany” by Steven Blank. Blank’s book offers a step-by-step guide on how to successfully organize, develop and market your new product or company. Blank answers the questions that flutter through any young entrepreneur’s mind and presents a simple path to success. Blank’s book was named one of the top 15 books every entrepreneur should read.

“Founders at Work: Stories of Startups’ Early Days” by Jessica Livingston This book is a collection of interviews from successful founders in the technology field such as Steve Wozniak (Apple), Caterina Fake (Flickr) and Max Levchin (PayPal). The interviewees share their start-up stories and advice for fellow entrepreneurs. Livingston’s book was also named one of the top 15 books every entrepreneur should read.

“The Google Story” by David A. Vise and Mark Malseed gives readers a detailed account of the start and expansion of Google. This national best seller has been published in 26 languages worldwide. USA Today called it, “An interesting read on a powerhouse company.” Read about the company whose stock is worth more than General Motors’ and Ford’s combined and eats for free in a dining room that used to be run by The Grateful Dead’s former chef.

Blogs:

Both Sides of the Table  by Mark Suster, entrepreneur and venture capitalist. This blog offers advice for entrepreneurs and focuses on early-stage tech companies. “Both Sides of the Table” was named the number one blog  every entrepreneur should read.

Quick Sprout  by entrepreneur Neil Patel. Patel offers advice for start-ups, particularly about digital marketing and business. The Young Entrepreneur Council rated it the number four blog every young entrepreneur should read.

Apps:

Omnigroup is an app designed to help entrepreneurs keep on top of their tactic schedules. The award-winning mobile personal talk manager gives users access to automatic syncing, location-aware action lists, agenda items at work and any other lists you may need in the palm of your hand. The app is $19.99 on the Apple App Store. Named one of the top 10 must-have business apps.

Bump is arguably one of the easiest ways to share information. By “bumping” two phones together, you can instantly obtain contact info, calendars, pictures and social media. Named one of the best mobile apps for busy entrepreneurs.

Thumb is a free app that allows users to ask questions and receive quick, relevant opinions. Helping people and benefiting from timely information is Thumb’s claim to fame. Mashable calls it a vital app for entrepreneurs.

Twitter influencers:

Gary Vaynerchuk (@garyvee) Pronounced vay•ner•chuk, this entrepreneur is a best-selling author as well as wine and social media expert. BusinessWeek listed him as one of the top 20 people to follow on Twitter. The Huffington Post calls him one of the top eight entrepreneurs to follow. What makes Gary unique is his effort to engage with his Twitter community.

Caterina Fake (@caterina) Fake, founder of Pinwheel and cofounder of Flickr, tweets about coding, useful books and articles among other helpful entrepreneurial information. Mashable ranked her the number one essential entrepreneur to follow on Twitter.

Entrepreneur Magazine (@entmagazine) Entrepreneurial magazine is a must-have on any entrepreneurs Twitter feed. The popular magazine shares advice, blog posts and articles to its followers, making it one of the most useful users for entrepreneurs to follow. Meredith Darling (@merdar), entrepreneur and social media specialist, ranked Entrepreneur Magazine the third most important Twitter account for entrepreneurs to follow.

Why Do Startups Fail?

by Candace on March 30, 2012

There may not be a magic formula to a successful startup, but there are some tried and true methods entrepreneurs are wise to follow. After researching almost 20 articles and interviewing a few of LaunchHouse’s managing partners, I’ve compiled a list of startup pitfalls.

Here are the common denominators:

  1. Poorly handled finances
  2. Bad management and staffing
  3. Market doesn’t have a need for the product/service
  4. Wrong timing to market (too early or too late)
  5. Inflexibility

Sam Krichevsky, Todd Goldstein and Dar Caldwell shared their thoughts on the issue:

Sam

- Startups become too big too fast. Being overzealous about the product can cause an entrepreneur to mismanage funds, such as spending too much on overhead.

- Nobody is born knowing how to run a business. Without mentorship, a first-time entrepreneur is walking in the dark. Mentors provide experience and foresight to running a business.

Todd

- Startups are often underfunded. Without capital, the business stands a slim chance at growing.

- Not hiring or surrounding yourself with the right people. Realistically delegate work among a minimal amount of people rather than over hiring or outsourcing.

- To put it bluntly, “The idea sucks.” An understanding of the market is necessary to knowing if there is a need for your idea.

Dar           

- First-time failure is not a bad thing! You will walk away with more knowledge than before, heightening your chances of success the second time around.

Innovation, motivation and patience will take you a long way.

Would you add anything to the list?

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