Sakib Mahmud Aka Visionary Geek

Sometimes, it’s really important to understand before to start your business, Who is your main competitor? What’s the Strength and Weakness of your competitor? How will you overcome them or compete them? Before to moving forward firstly you need the identity of your competitors. Where do you get them? In web, we mainly find the competitor easily through the search engine or inputting similar keywords from the ideas.
Similarsites — simply awesome website — where you can search any websites your like as, google.com and other similar websites list will be visible to your screen. I found, Cuil, Ask.com, Alltheweb.com, yagoohoogle, hotbot.com, bing.com and so on similar websites.

Daniel Tenner who is the director of Woobius and I just came from his blog site. I searched a lots about partnerships business strategies structures plus the communications. What types of communication should we maintain when we are two friends or we are going for web partnerships business?. On this site, Daniel shared his real life experiences where he elaborate what things may goes wrong — when you’re starting a business with your friend? Thanks to Daniel to share with us and see in below:

“It seems like a fool-proof plan: start up with a close friend. You’ll get along (obviously), and you’ll get to share the exciting, fantastic, scary experience of starting up with someone you care about. It’s not a bad idea, but there are a few caveats that you should be aware of before you proceed¹.

When I started my first company with one of my closest friends, I expected things would go very well between us. We understood each other in ways that would take years to build up (and did take 10 years). We knew each other, and we knew we could rely on each other. We were prepared to have many surprises along the way — starting a business is always going to be a scary adventure.

What we weren’t prepared for was that the main problem would come from us and the dynamic between us.

What happened, in brief

I’m not going to go into all the details of what exactly went wrong, for a number of reasons (among them, it would be a one-sided account and inherently unfair on my friend and first cofounder). The long and short of it is, we had different expectations about the business. I left my safe, comfortable corporate job to work on it, so I needed it to succeed, or else I would find myself back in the corporate world. By contrast, my friend had already started several companies and was comfortably well off, so he didn’t have the same expectations and requirements.

It turned out we have a different definition of “the business isn’t working out”. For me, it was working out if it was making enough money to cover my expenses. For my friend, it wasn’t working out unless it was making enough money to also add to his existing wealth and thus justify the time and effort which he poured into it. Both those views were correct, but because we knew that we understood each other, we didn’t realise that our views were different until that difference had grown into a huge misunderstanding.

This core divergence of views could have been resolved easily if we’d known about it and discussed it ahead of time, but we didn’t know about it, so it festered and turned into dozens of other misunderstandings, so that by the time it finally became clear what our main divergence was, much of the damage was already done and it was entangled in a huge mass of emotional misunderstandings².

This almost cost us our friendship. We got through this thanks to the help and mediation of another very good friend, who helped us to communicate to each other how we felt, so that we could move forward together rather than against each other.

I’m glad to say the mediation worked, and we’re still friends (perhaps even stronger than before). Nevertheless, I learned some important lessons from this.

1. Make your agreements explicit

The first lesson is to keep agreements explicit. It’s not enough to think that your friend understands what you think: make sure he does by discussing it openly with him. As my mediating friend phrased it, “unspoken promises” have a tendency to turn into broken promises (which are always hard to swallow). Avoid unspoken promises.

Here’s an example of a really bad thing to keep implicit: “We’ll only call it quits if the business is bankrupt and can’t raise any more money.” The promise here is that we’ll keep going until the very end. This may seem obvious to one party in the business, but it may not be so to the other. One partner could, for instance, feel that the time to call it quits is when the business has 3 months of cash flow left. Another may feel that it’s worth going deep into credit card debt territory before giving up.

Don’t make this mistake: keep those agreements explicit.

2. Detail your agreements

Once you make some agreements explicit, it should become clear that you need further discussion to figure out exactly what your explicit agreement is. Don’t be afraid to do this. It’s not “too early to discuss this”.

Here’s an explicit agreement that’s not detailed enough: “We want the business to make a lot of money”. Really? How much are you happy with? 10’000 pounds a month? A million? What is the definition of success? It’s almost certain that you and your business partner have different views as to what “a lot of money” is. Being on the same page about what you expect out of your business will ensure that you don’t pull in different directions when things are going well. Think of how mortifying it would be to find out that your partner wants to pull the plug when you think that the business is successful.

3. Don’t be afraid of discussing the bad stuff

There are a number of subjects which seem almost embarrassing to discuss when things are going well. For example, “What if one of us decides to pull out?” Your first reaction to this topic might be “What? We’re barely getting started, and already we’re talking about what happens if one of us pulls out?”

The reality is that people’s life circumstances change through time. They get married, or decide to leave the country, or get engrossed in a different pursuit, etc. Many things can get in between a founder and his start-up. Similarly, many things can go very wrong with a start-up. When those things do go wrong, or when one of the founders decides to pull out, is not the time to discuss these things. You need to discuss them with a clear head when no one is thinking of pulling out and the business looks healthy and hopeful.

When you discuss your start-up’s future, do not be afraid to talk about the disaster scenarios. Also, when you negotiate what will happen if a partner quits, don’t be so sure that it won’t be you.

4. Write things down

There are two reasons to write things down: first, people’s memories of conversations are faulty. Writing things down also ensures that there is no disagreement, later, about what was decided. You don’t need a long document for this — even just one or two pages describing your agreement is enough to avoid later misunderstandings.

The second reason is that people may think they have reached an agreement when in reality they never agreed about the details. Once you put something in writing, you give it a certain air of finality that teases out those last remaining disagreement. Basically, putting an agreement in writing is like putting a new piece of functionality in code. Until it exists in that form, it’s just vapour.

Halfway through my misunderstanding with my friend, we thought we’d figured out a way forward. I wasn’t sure that we were both thinking the same thing, so I made the effort to put it in writing, in the form of a business plan. When my friend read it, and understood more clearly what I meant, he recanted, and the agreement fell through. It’s a good thing that it fell through, b

ecause it would likely have resulted in even more problems later on if we’d gone through with it based on our flawed understanding of each other.

5. Don’t make it work at all costs

Yes, I know this is your friend that you’re starting up with, and this is your great opportunity to start your own business. However, if, in those discussions, you find that there’s an intractable disagreement, don’t fall into the trap of thinking that the most important thing is to smooth things over and start the business.

Starting up with someone is almost like marrying them (temporarily), in a way. You’ll be talking to them almost everyday, and possibly even more than with your significant other. You’ll be working on a “baby” (your business) for many months. It’s a big commitment, basically, and much like any other kind of significant commitment, you shouldn’t go into it if you think there are major problems, because those problems will only get worse.

6. Don’t assume things will get better with time

It’s easy to rationalise away big problems by assuming that things will get better with time. In some cases, they will, but in a majority of cases, they won’t. What this means, for example, is that you shouldn’t assume that your inexplicably small share of the business will magically grow to 50% later on. This is even less likely to happen if the business is working well (if the business isn’t working out, chances are it doesn’t matter anyway).

Sample questions

This article wouldn’t be complete without a list of questions that you might go through and discuss with your cofounder. Use them as a guideline or as a checklist, as you please.

• What do we both mean by “the business is successful”?
• What do we both mean by “the business is not successful”?
• What happens if one of us needs to voluntarily pull out, for any reason?
• What happens if one of us cannot work on the business anymore, for involuntary reasons?
• What are the conditions under which we’d call the business a failure and pull the plug?
• What is plan B for each of us if we do pull the plug? Are we both prepared for that plan B?
• What do we expect of each other, both in terms of responsibilities and in terms of attitude and effort?
• What is and is not an expense? What is the maximum amount someone can spend on an expense without checking with the other? (from Sebastian Marshall)
• When and how will profits be distributed? How much will be reinvested? What will the reserves be? (from Sebastian Marshall)
• What happens if one partner needs cash and the other wants to reinvest it into growth/expansion? (from Sebastian Marshall)
• How will you handle it when (not if) the hours each partner is working are unbalanced? (from Sebastian Marshall)

This is not a final list by any means, but it should at least provide some starting points to make the implicit explicit. If you have other suggestions, please do add them in the comments below.

Conclusion

I don’t regret starting that business with my friend, but I do regret not clarifying those kinds of questions upfront. It would have saved me a lot of worry. If your business is struggling, you don’t need the additional pain of seeing your friendship unraveling under the stress of accumulated misunderstandings.

So, do yourself a favour, and set out to:

• Make your agreements explicit so that you don’t break implicit promises
• Detail your agreements so that your promises are clear
• Don’t be afraid of discussing negative scenarios, so that you don’t add the stress of misunderstanding to already bad situations
• Write things down so you’ll remember
• Don’t make things work at all costs, so that you don’t spend the next years living with a deal that’s not acceptable to you
• Don’t assume things will get better with time, so you’re not surprised when they don’t “

Before to launch a small or big starups — you should know nine things which can bring more success. But, credit goes to dottactics,

1. Eric Schmidt and Hal Varian tells us about Google’s Ten Golden Rules.

“One of our not-so-secret weapons is our ideas mailing list: a companywide suggestion box where people can post ideas ranging from parking procedures to the next killer app. The software allows for everyone to comment on and rate ideas, permitting the best ideas to percolate to the top.”

2. Paul Graham weighs in with a guide to help you do what you love.

“How much are you supposed to like what you do? Unless you know that, you don’t know when to stop searching. And if, like most people, you underestimate it, you’ll tend to stop searching too early. You’ll end up doing something chosen for you by your parents, or the desire to make money, or prestige– or sheer inertia.”

3. Guy Kawasaki tells you the top ten lies of Entrepreneurs.

“No 5. No one is doing what we’re doing. – This is a bummer of a lie because there are only two logical conclusions. First, no one else is doing this because there is no market for it. Second, the entrepreneur is so clueless that he can’t even use Google to figure out he has competition. Suffice it to say that the lack of a market and cluelessness is not conducive to securing an investment. As a rule of thumb, if you have a good idea, five companies are going the same thing. If you have a great idea, fifteen companies are doing the same thing.”

4. Paul Graham tells you how to find statup funding.

“Angels are individual rich people. The word was first used for backers of Broadway plays, but now applies to individual investors generally. Angels who’ve made money in technology are preferable, for two reasons: they understand your situation, and they’re a source of contacts and advice.”

5. Evan Williams gives us Ten Rules for Web Startups.

“No.6. Be Self Centered – Great products almost always come from someone scratching their own itch. Create something you want to exist in the world. Be a user of your own product. Hire people who are users of your product. Make it better based on your own desires.”

6. New York Mag tells the story of a guy named Craig who lets you find everything from a girlfriend to your city without a newpaper.

“In the past few months, I and countless others in the mainstream media have awakened to the fact that something we thought was benign and even modestly beneficial, if we happened to have a room to rent or something to sell, was in fact a wild beast, loose in the orchards. Craigslist.org is changing everything.”

7. Chris Anderson tells you that the New Boom really isn’t a New Bubble.

“The second reason that this boom is so different from the last is that the sunk costs of the dotcom era make the economics of entrepreneurship more favorable. In the bad old days, companies bankrupted themselves building out their fiber-optic networks. Bad for investors, good for everyone else: We’re now enjoying supercheap bandwidth. So, too, for storage, screens, and a host of other technologies that are benefiting from profligate ’90s-era investment and research.”

8. Paul Graham weights in with ideas for your startup.

“The fact is, most startups end up nothing like the initial idea. It would be closer to the truth to say the main value of your initial idea is that, in the process of discovering it’s broken, you’ll come up with your real idea.”

9. Rob at Business Pundit explains why he quit entrepreneurship and got a real job.

“Entrepreneurship is difficult. No matter how smart you are, how well you plan, or how hard you work, there is still lots of luck and timing involved. If you ever consider making the jump, here are some things to think about.”