Kendall's "Internet startup checklist":

1. Idea:

  1. Would YOU write a check for your idea?
  2. Don't spill your candy in the lobby.
  3. Is your idea refining or revolutionizing?

2. Funding:

  1. Are your financials realistic if nothing goes right?
  2. Could you see your investors with a 10X, 20X return in 3 years?
  3. Do you have back-up plans b,c,d before quitting your day job?
  4. Do you have a great answer for the most cynical of investors?

3. team:

  1. Can you build your idea or will it take a team of pros?
  2. Is a specific person on your team essential or can he/she be replaced?
  3. Dont give up the farm to recruit talent.
  4. Hire brave & passionate smart people.

4. Product:

  1. Does your product SOLVE a problem?
  2. Beware of feature creep! Customers & prospects add features, not developers.
  3. Stay focused on money earning features, not cool ones.

5. Marketing:

  1. Is it costly (time/resources) to get branded in your target market?
  2. Make a goal of closing a core group of customers the first year. (traction)
  3. Adjust marketing resources to get traction (don't need much).
  4. Be sure to test your "seo / ad-words / ad-sense" properly before banking on them
  5. Nothing is better than "boots on the street." Start knocking on doors.

6. Customer:

  1. How many "loss leaders" do you have?
  2. Does your idea help your customer or is it just a "nice to have"?
  3. Make each customer feel like they are the only customer you have.
  4. Can your customers be up-sold? Do they have peers they could refer?


March 15, 2009 AIG (America inherited Greed)

I will assume you have recently heard about AIG in the news.  Should they be hated?  Are they crooks?  Do they now have your kids future earnings?   Is this country gullible?  Did we trust our neighbors in New York?  I guess so…..

AIG is an insurance company. They write insurance for lots of stuff.  Good insurance for many years.  But then they started writing insurance policies on vapor (CDO, Lehmann Bros risk, Real Estate leverage.) Bad idea even IF AIG has the money for claims.  But, guess what?  They DIDNT HAVE THE MONEY and the claims started to flood in!   Tip of iceberg claims in the billions of dollars from sub-prime mortgages!!!  Your kids future taxes had to be used FAST (see headline on web page of picture below) or we would have seen an iceberg that would have paralyzed the world.  No SH*T! 

aig

You heard of the $700B TARP?  “Where did the first $350,000,000,000 go????”  On a big quarantine friend, a $350B quarantine .  Think of it of it this way.  Wall Street cheated the principles of investing (unsustainable leverage on CDOs) and took out risk insurance from AIG.  AIG then cheated because not only did they cover the false shyte, they never had the money to pay the claims.  Needlesstosay, someone had to pay.  Not a choice. Hence welcome to the TARP.

If the GOV did not pay those claims with TARP (future tax) the AIG insurance policies would have defaulted causing “systemic risk.” Some say we are lucky because we are ONLY feeling the effects of about 10% of what could have happened.     Crazy I know!

Things to think about:

  • The picture was taken by some chap on Flickr.  He claims he got the flyer (holding) in the mail from AIG the same day our kids were taxed $85,000,000,000 just for AIG!
  • AIG was a great company just a few years ago
  • If TARP was not used, the greed of Wall Street would have dwarfed The Great Depression
  • Only a fraction of AIG employees (350) brought these $ TRILLIONS of DOLLARS $ of losses
  • If you have a mortgage, AIG  is probably some how connected to yours
  • This mess would have created the “so called” world economy to stop, not crash, stop
  • AIG insurance fraud makes the Tyco, WorldCom, Madoffs, and Enrons of the world look like Saints

If you are still reading, check out a rare interview on 60 minutes with the Fed Chairman, B.Bernanke or if still interested, check out the reaction when the market tumbled in Sept 08 with Paulson.

HOPE:

Remember, this is the greatest country in the world for so many reasons, and whatever you think about our government & economic situation, get some perspective by clicking here.

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1 comment so far

  1. AIG took on 185b in government guaranteed credit lines. Since last fall they have paid off all but 41b. They guaranteed AAA rated securities packages that turned out to be packaged mortgages that were bad, very bad. Greed, come on, the roll we were on…. How about the rating companies, 125% mortgages sound like AAA to you? I had dinner with two AIG VP’s at Gordon Biersch last Tuesday, so I’m thinking I’ve got a straight story…. Don’t smear AIG insurance, probably the most talented and impressive group of professionals I’ve worked with in my 18 year career with that crap. You’re messing with peoples lives and livelihoods, at least get the facts straight!!

    June 23rd, 2009

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