Business — 2 comments
23
Aug 10

Making Decisions with Limited Information

Everyday, I am faced with making decisions that could lead to instant failure. I think most entrepreneurs have this problem. However, what makes it even worse is that most entrepreneurs have to make these decisions without any information to support or guide them.

I am fairly comfortable with making decisions based on the unknown. In the technology start-up world, things move fast and it’s rather common for decisions to be made with missing information or without supporting data. Unfortunately, most of the time we (entrepreneurs) are forced to make decisions sooner than we like.

I don’t think there is any real process one can follow to make better decisions. I rely largely on my instinct, which I am told isn’t always the best thing to do. If something doesn’t feel right to me, I make the decision that makes me feel at ease. I generally make the right decision this way. Perhaps it’s a built-in intuition, maybe my “10 000 hours” are genetic?

While following my instinct works most of the time, I will admit that there are times when my instinct doesn’t guide me at all. I have met some people who prefer not to rely on instinct at all. What does one do in this situation? I have a few processes I follow, even when being guided by my instinct.

  • Stop and Think – It is probably the most obvious thing to do and the most effective, but people don’t do it properly. It requires you to stop worrying about the outcome of each decision, focus on the benefits and pitfalls of either option as well as the long term and short term consequences. It also means don’t be too rash!
  • Ask for Advice – Swallow your pride, admit you don’t know the answer to everything and consult your colleagues, advisors, family and even friends. In some cases you might get a blank stare or an obvious response, but getting perspectives and thoughts from a few people can make a huge difference.
  • Give it Time – Sometimes it is worthwhile to wait a few days before making a decision. I often forget about time constraints and see if I feel the same a few days later. I would rather be comfortable with my decision than regret it because I rushed it.
  • Relax and Have Fun – Taking your mind of a problem is the best thing you can do. I often find my best solutions come when I am having fun, relaxing or even working on other projects. If it’s important, your subconscious will work on it for you!

The final thought I have on making decisions with limited information is that one has to be decisive. Once you have made your decision, carry it out with conviction. How can your colleagues trust your decision when you are doubtful? It only adds more uncertainty and confusion to the mix.

We can’t always be right, we can only make the best decision with the information we have. It is our duty to try our best from there on.

Venture Capital — 2 comments
22
Jul 10

How VCs Calculate Valuations

One of my favourite blogs about venture capital called Both Sides of the Table, written by Mark Suster who has recorded a brilliant video about How VC’s Calculate Valuation Differently from Founders?

I think this is one of the most important videos any entrepreneur should watch, if he or she is raising capital for their business. Everyone always focuses on the skill of successfully pitching venture capitalists. However, once your pitch is successful, you get down to the details and if you aren’t careful about understanding the term sheet and keeping future rounds in mind, there is potential for making grave mistakes.

Business / People — 1 comment
31
May 10

Entrepreneurs – Find Mentors & Advisors

When I first got into business, I had quite a few mentors and advisors that I could reach out to. These mentors and advisors ranged from family members and friends to fellow businessmen and other people in various industries. I have always enjoyed learning from other people’s experiences and taking their advice and seeing where it applies and how I can use it.

However, over time I slowly stopped reaching out for advice as I had learned quite a lot in such a short space of time. The more you learn, the more you know, the less you need advice, right? Although, I didn’t completely stop asking for advice, as it’s something people will give you even if you don’t ask for it.

I am busy establishing an advisory board for Aduity, as we’re approaching the point where we need to surround ourselves with people who have great insight into the market we play in, to provide us with some fresh thinking, guidance and also validation from both local and global perspectives.

I met with our first potential advisory board member today and I was quickly reminded of the immense value that the right advisors and mentors hold. We met briefly for an hour, but we could have easily gone on for hours. In such a short time, we were able to validate and resolve so many points that were searching for conclusion.

I have now been brought back to my days of seeking advise and mentorship, as it really is key to growing myself as an entrepreneur (we can never stop learning) and my business too. I think that every start-up should, at some point, look at establishing an advisory board, consisting of the right people. It will also be highly recommended to ensure they know your industry and aren’t shy to play devil’s advocate.

Business / People / Venture Capital — 1 comment
25
Feb 10

Thoughts on Silicon Cape in Gauteng

The Silicon Cape Initiative has gained significant traction and coverage since it’s initial inception and launch event, which attracted several high profile speakers and attendees from all over South Africa.

The basic vision for the Silicon Cape Initiative is to establish both a brand and geographical region, in this case the Western Cape, much like that of the infamous Silicon Valley where technology innovation and investment can flourish.

However the focus on this initiative benefiting the Western Cape has left some entrepreneurs from other parts of South Africa feeling a bit left out. As an entrepreneur from Johannesburg, I actually don’t feel left out at all and I will share why.

Firstly, the organisers of the Silicon Cape Initiative invited me to attend the event as an entrepreneur from Johannesburg and to sit on the entrepreneurial panel discussion. Besides being personally involved, I feel that this demonstrates that initiative does have a keen interest in supporting entrepreneurs outside of the Western Cape.

Secondly, as an entrepreneur building a start-up that has global ambitions. I find that South Africa doesn’t have a strong technology brand in the global start-up and investment scenes abroad. Indeed we have several successful global entrepreneurs and start-ups from South Africa, but nobody is really shouting “I can’t wait to see what comes out of South Africa next!”.

Therefore the fact that the Silicon Cape Initiative is attempting to boost the profile of a region within South Africa is a good enough reason for me to support it. I have no doubt that once someone looks within the Western Cape, it won’t be long before they look at South Africa as a whole. Before we moan about where the focus is, lets get people from abroad focussing here first!

Thirdly, the geographic distance between the Western Cape and Gauteng is really minimal when compared to Silicon Valley and Boston, New York or Atlanta where several other start-up hubs reside. We can do business in both provinces and until the Western Cape receives regulatory benefits (tax benefits, etc) we really have no reason to feel excluded. I would suggest everyone who can and is willing should get involved.

On that note, Marc Ashton and Catherine Luckhoff are planning on organising a Silicon Cape event in Johannesburg sometime soon, so if you are interested please keep an eye out over at the Silicon Cape website.

Consumer / Mobile / People / Technology — 3 comments
2
Oct 09

Thoughts on RICA

If you missed it, a new piece of legislation came into effect in June that requires all cellphone users to register their sim cards. I’m not going to get into why I agree with this and why I don’t, because I have my own views on it’s effectiveness.

However, I will share why I won’t be registering my sim card. In South Africa, identity theft is still a reality yet we are obliged to hand over all of our personal information to anyone who asks for it. I’m quite annoyed by this as I hate filling in documentation, but more importantly I don’t feel comfortable sharing my personal information with just anybody.

In the article, they mention that “all information will kept confidential in a secure database”. I would like to question how secure that database is if I can go to numerous outlets around the country to register. If it is so secure and confidential, then what happens if I need to update my information? How does someone at one of these outlets assist me? If they can retrieve and update my information, then I don’t trust the system because there are thousands of outlets and thousands of people who can access this information.

I’ve been thinking about it quite a bit and this is what I think is going to happen in 18 months when the registration window expires for existing sim cards. All the major mobile operator networks (Vodacom, MTN and Cell C) will submit a letter to government stating that they cannot de-active the sim cards that have not registered due to the large quantity and the effect it will have on their business. We will be granted an extension period.

What are your thoughts on RICA?

← Older Entries