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The Blue Screen of Death
A Desis Misadventure in the Land of Opportunity
Jawwad Ahmed Farid

MBA, Columbia Business School Fellow Society of Actuaries BCS, FAST ICS
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Published by Alchemy Technologies, 103 104 Amber Estate, Main Shahrae-Faisal, Karachi, Pakistan. http://www.alchemya.com In the US: Alchemy Technologies, 21650 Steatite Court, Ashburn VA 20147. http://www.alchemya.com
Copyright @ 2006, Jawwad Ahmed Farid and Fawzia Salahuddin First Edition, April 2006 Revised Edition, July 2006 All rights reserved. Except for brief passages quoted for purposes of review or scholarly comment, no part of this publication may be reproduced, stored in a retrieval system, or transmitted by any means, electronic, electrical, chemical, mechanical, optical, photocopying, recording or otherwise, without the prior written permission of the copyright owner. Inquiries should be addressed to the publisher at the above mentioned address.
This book is sold subject to the condition that it shall not by way of trade or otherwise, be resold, or circulated in any form of binding or cover other than that in which it is published.
ISBN 0-9785060-0-6
Cover Design: Mohtashim Ahmed Text Design: Uzma Salahuddin Editors: Adnan Haider, Kris Sherer Book website: http://bluescreen.alchemya.com
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Behind every successful man is a penniless wife.
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Dedications
To loser husbands and loving wives; To Fawzia for saying yes; To my Ammi(s) for their support and prayers; To Abba for believing in us despite our
failures; To Whitney, Biggadike and Ken for asking Why
not? To Sarwar and Denise for Avicena.
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Table of Contents
Foreword .................................... 7 Author Note ................................ 11 Chapter Zero ............................... 18 Chapter One Who am I ..................... 21 Avicena Timelines .......................... 28 Book One ..................................... 29 Chapter Two - Memories ..................... 31 Chapter Three - Before the Beginning ....... 36 Chapter Four Aleph on the Scene .......... 48 Chapter Five California .................. 63 Chapter Six Hiring ....................... 74 Chapter Seven - Pre Launch ................. 83 Chapter Eight Process ................... 103 Chapter Nine Launch ..................... 111 Chapter Ten Business Development ........ 119 Chapter Eleven The Silver Lining ........ 128 Chapter Twelve The End .................. 152 Book Two The Blue Screen of Death......... 161 The blue screen of death .................. 162 Hindsight ................................. 164 Epilogue - Reboot ......................... 206 Why failure? .............................. 211 Appendix A - Cast of Characters ........... 237 Appendix B - Avicena Timelines ........... 247 Appendix C - The original list of myths ... 260
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Foreword
Entrepreneurs There an to They and They are invention meet build a or the
seem close very for it a to
to to
come begin home,
in
two
varieties. with for a product
those
that
smallperhaps building need, another on a and either
specific friend their in
themselves
business. customer. sell the
first
iteration
shoestring,
deliver
inaugural
experience
some
success,
product to other customers. Before rigorous they know The business it, they have grows of of any a fledgling without the a directors, other
business. disciplined
business plan, or
board
marketing,
accoutrements of mature firms. These where manage point, hitting and businesses the every most the grow of easily can the no up to the At point this
entrepreneur facet of wall make A
longer
personally struggle, processes of these mature to
business. endeavors
these without small of the Many
disciplined percentage
procedures.
businesses management and staying
transition planning, remain small comfort
processes the
implementing, businesses, zone. And
measuring. within
founders
many die. Ive need. always They called create are a this business They to founder driven a love the by for
accidental problem, but
entrepreneur. product rarely
are by a
solve
focused
driven
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business form. success, soon taking fail
in
the
abstract, are begun role the role either
or
business at
as
an
art own They very Most
Often find on
they
surprised with of of modest the
their
having that the than they
goals. is
building
first
product,
inventor, or wont
different when
businessman.
cant
transition
from building a product to building a business. This book is not It big is The problem, From about about Not but the the the the very Accidental purposeful Entrepreneur solution with beginning building think to to a larger the a
Entrepreneur. entrepreneur. begins small, scope with and a focused
Purposeful an idea on
idea.
impact. with
Purposeful business ahead. are driven
Entrepreneur impact. have
plans They of want
further They their
They by
visions They
greatness. change
scale.
piece of the world. But that most I of all, known every loves As Purposeful business. an of art the Entrepreneur Business As most for the
have
business highest
sake.
form.
expression
complex
strategic games that humans play. So on what plan does on the They plan. They They Purposeful from on They or the put meet plan Entrepreneur start. the the They right They Blue success. do? plan But team
They
bigness
success. they
rapid
mostly
together. quickly. of Death.
raise
capital.
execute Screen
succeed
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The
world
is high
littered success. profile But most out
with failures
books Even begin to do
about books with end in create not end
entrepreneurial documenting wild with significant anguish. When by the success.
attempts of dust
businesses
entrepreneurial
success.
They
Accidental thing, event we but is are
Entrepreneur the sphere by of the a
fails people scope
it of
is
painful the startup.
touched the hole
limited the left
When
Purposeful with much
Entrepreneur bigger
failswell,
in the ground. Why common walk When core. write wounds a is there so For and it the to Most it little with one, it written this takes the a about more of to lot
entrepreneurial courage, the
failure,
experience? confidence, path of
borderline shakes about to A one it,
audacity to the
Purposeful talk
Entrepreneur. very alone of yet their let lick Fewer
failure Few
happens, want
book. and give
retreat another
the
safety
traditional
employment.
few go.
eventually succeed. The book. from that is now Blue It Screen captures effort of the And it Death very to is an of a important the it gutis company
essence
wrenching
takes
create though will you
nothing. about small the a a difference few
even
fundamentally but
failure, between
recognize success Farid, from
failure
and
decisions. entrepreneur,
Jawwad emerged
successful
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failure He and took about
more
valuable
than points is
if
he
had
succeeded. much that it failure greatly gave
learned the
the
process, Jawwad
but one
also that of
learned the and few
inflection of the
define
success. stock his
lessons
learned,
expanded
personal
capital,
another go. In the end, if you hunger success, it is most
important to study failure.
Shane A. Chalke CEO Finetre Corporation www.finetre.com
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Author Note
During life that or I destined that
my in
earlier Pakistan, an take earn MBA
academic I at never an
and Ivy
professional I was Land, of a school,
thought League at a Startup
for I
would to
the fail a
plunge by
into
would
miserably
number myself
attempts check. To an two him a
living
cutting
significant reinforced strong mind. a but by
extent, my His choice
these of
thoughts experiences
had as my and the left
been
fathers
entrepreneur.
livelihood himself
conflicting working of personal, that of with to the
impressions
on
young
First,
for
afforded envied. stream whether and a first self-
degree
professional, everyone was income his
financial
flexibility schedule left my off
Unfortunately, unpredictable that we As at an times be would
downside family
wondering regular
better
paychecks. earning my
adult, signed by
putting someone
my use else pay
academic in became
professional paycheck goal; risking
training
guaranteed
through
employment just wasnt kosher. After rising way ASA to from paying the my college I in dues I for and a was successfully young well on With and and my a an of
handling
challenges that of
facing
consultant, securing degree the
thought goal
life. science
bachelors
computer
Society
Actuaries
(Associate
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Society still my were of 13 a
of
Actuaries) of calendar, right. track and
under but I the was my
my
belt, to be
there the a
were on pace team times a
number
milestones
reached
career both
path on
and the
coveted
partnership their kept happy gross
with
firm,
managed three and
professionals of few eight back years
generating
overhead with out with
expenses, repeat
ran
portfolio someone a
international of school,
clients business. I was my
that For quite life
coming and
satisfied
the
direction
was taking. In all my and March that. 1997, The a combination was to her A of the MIT, high in up down the of events changed of Nida, of and to Caltech, MIT
first
acceptance Harvard, school). Boston. at by
younger Cornell
sister, after her one all up equivalent
levels
(University offers My 4:00 an
Cambridge Harvard complete and when doors our I Nida and
gave out
fully degrees fine of us been was shared with the and
funded
four-year woke
family a.m., on our in of that to in
found
morning
banging
jumping had This
with
athletic before hint
ability
that in an a
not
witnessed first gene right
family.
something suggested attending
our
pool
intellectual school
profile
suitable pedigree
the United States. Soon armed higher after with path on Nidas an Ivy which multiple a League the could acceptances who one be MBA, there that explored came was I a a was even
chance
meeting
with
friend
thought
that
way
above
currently
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though
planned
to
return
to
Pakistan
after
graduation. As was it happens by with and I a was and I destiny, bit of this greed bit from The MBA to of two
inspiration followed elderly person open denied When it. first exists I
(Nida)
(friend) first would in my
conflicting that I
advice
individuals confirmed that
respected. top-ranked not the of think privy second any the
doors the look a tell on
sheltered
existence back him now,
vehemently rumors. sealed male, tell
possibility 26-year-old, that side other
such denial
Take
driven, of the
alpha then
professional door,
paradise
the
him there is no door and then watch. The door that I opened and to one not It I took beyond. dont questions there way of about doesnt or story of of me to Did know. and were no Columbia I I found find went more easy this sureor it that to the the over burying as quick, a rich
Business looking answers. bookthis easy, fire or way It a
School for answers is is
professional difficult
paradise?
questions; Which book to
presenting answers, document get my life years a
otherwise. tells circa full family, for
succeed the circle and
fail, Seven
famous. marked London; MBA at short
happened, paycheck,
19992006.
dumping Sachs; campus blast
sizable
familiarity; on a
moving two
working
Goldman
starting writing
Columbia; of Harlem; plan;
living having to
streets
business routine;
picking
uncertainty California;
escaping
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ventures to too family
number and
one, deep,
two, or
and and
three; repeat.
returning Nothing just the
familiarity;
profound,
insightful,
stuff life, not dreams, is made of. Why he the or book? who she has is and Well, an every to to the family, other in have my a start handing spot, and week past I meet of a
someone
interest love than on in
because or
planning would Rather
something roadmap out I
their own cheat advice insights sleep,
sheet.
informal thought from would
distilled collected work,
moments
snatched boredom
travel,
be far more reliable. I didnt to a want follow at. to write never chose a did prescriptive me is next any best such good. I thing tomes teams one focuses something text You am and are of on
since have wrote
instructions So I to who
them,
which the one.
not good dedicated
descriptive and
Many
success, could.
money, This
networks,
connections, professionals
ambitious
one who couldnt. Just as in the died to held tell first and the book I read not where the Marathon Not like of hero
actually resurrected I wanted B movie
was real by
miraculously M a n 1) , a bad
(William together
Goldmans story. a
collage
borrowed
William Goldman sold out and did just that in Brothers, the sequel to Marathon Man in which Scylla is whisked off the scene of his death and given a new life.
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and
unlikely
plots,
but
like
old
love
letters
drawn from forgotten recesses of our lives. The five The do done love letters had were a problem. toll Five in the and I moves form in of
years only love in
taken
their storage data I
misplaced
diaries, constant letters,
boxes, backup. could
lives. do in a to but hope help which
was but
couldnt backups northern of
certainly moves help in
emails; London, little tell in is
emails the New and
extracted last days
from of With used
computer rushed the these
York, I
southern have my
California,
Virginia, the that
Karachi. story
context, Avicena these in
emails words My in will
waynot morsels the
bitssome
random, your
some mind
deliberate. setting
choice
reconstruct
they were originally written. That I go a is just and Book mix One. In Book it to of Two, not you I to I take dos. One up ever the the the that If and find with emails lesson book
material have you hate
and my feel Book
match list free Two. and head hate
with do skip
lessons Book came
learned, emails, to Book
straight lesson try Excel in to or
If where back
yourself and was in
wondering figure If
how Two, out
exactly
where hunts,
learned.
you
circular
references2 this
oblique
treasure
is probably not for you.
A refers to B, B refers out A and Bs value.
to
A,
you
need
both
to
find
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If end
you of
are the
truly book to
lost, help
the you
appendices get your
at
the and
will
bearings
with
respect
characters,
timelines
lessons. Penning finally personal past and with this tale has me been great to me for to a therapy. with of review new It my days eyes,
helped a more out
come allowed path
terms pair
failure,
disinterested the
chalked
adventure
that has now become Alchemy (www.alchemya.com). Alchemy that and in has is our on percent is an Enterprise annually for to beat
3
Risk more the
advisory than a three
firm years again failed
grown track never
by
hundred
year-on-year fourth year .
last my
that
performance earlier nor
Where has
ventures customers, annualized rupees, employs the
reached run two and the the
revenues already of the and
paying an million awards, its 35
Alchemy revenue up people life
crossed peer of the of
rate in
eighteen list
picked 25
industry central largest dollar of
customers brokerage three well In of as
counts house, the
bank
Pakistan, largest as exchange, banks. 80% of
largest
insurance largest
company, bank
stock
five
treasuries regional and
two of
ten
billion than in that 75%
terms
market
share
Alchemy banking
customers putting earlier
represent insurance to work
more
assets
Pakistan. were
Without from
lessons
learned
Yearly gross revenue growth 123% year 3, 216% year 4.
rates
1000%
year
2,
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failures
and
reinforced
while
writing
this
book, this would not be possible. A number never over than to to of paid be people, for this to enough last friends joyride. thank and to I and Simple for family words their and would who and die
primarily, will generosity, support Rather just have asked
them a
understanding, the say me step three you was when naming when them I one
sacrifices half one, of to set by I
decades. you quit to
like me
thank back
all was
pushed
ready
trying. Jawwad Ahmed Farid Karachi, Pakistan. www.alchemya.com
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Chapter Zero
Is a
that few
what
they To
are
teaching away for
at a
business shot at thousand
school
these
days?
walk
from
hundred
million
seventy
after taxes? You SM have to never Direct a few and tell met and and Sarwar. curt of you the Sarwar Mr. You now, the stood right to friends, to and you Take eye, and
partners
clients, later.
Mushtaq
others. charming high could an moods,
attentive could moon, with mix but him. of
seconds phases where in
predict
tides never artist,
throw
controversy,
awkwardness,
conflict,
color and you will have Sarwar. With in an aura of mystique he loved and The a hint of mischief at am the we that been walked I or
his
voice, the of less if
throwing took to the
challenges ones bait.
unsuspecting away; not had the sure just book
audiences. it was that
wiser the
fortunate led
wisdom,
fortune, I
absence
both that
conversation know have never
finished.
Looking
back,
follows
would
written if either had prevailed. The and shot put at plan aside. a few My hundred been had million written, gotten a was a
business
that
had group
tested, decent
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grade
on
the
class In
project, a that as had
which
was
the
first than a
warning C should
sign. any be
world a
of
contrarian more it In who our had over Ken
successes, infinite every touched ambition. to Jun Hudson to
project we the had off
garners shelved
interpreted of plan was and
failure. team in BCG
wisdom, the
because
member Arno
original chosen to CSFB to the to Kamar
certainty London, in
River
Inlay,
Boston, policy
Korea,
Daniel
public
school down the street. As for me, in the seventy one my in thousand New I the who after had guy always taxes the a the to the of
were other to
two
offers, Tampa, most be and of
York
City, been who did
Florida. life, and The us on is, across in the us an and
conformist belong, thing. truth his safe play with the
wanted
liked, dare. took us put
Until,
that
Sarwar odyssey the the the the
decided that
began
words and
Pacific, boardrooms most same me and day
Atlantic, third and automobile Yahoo outside much both apartment
back;
largest Reuters owner door. kingdoms
bank call placed It in
admired made my
manufacturer
planet; eviction of
notice away, each
my
also our
taught minds
something from
more from
importantthe
wisdom
walking and
other. They and bye. a say half I left was God which later one fashioned is where for it thing I paradise left time had Sarwar $68,400 to say taught a after year after goodat
California, taxes.
exactly was they
because
This
well
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Columbia: send cherry at few had the a
firm
handshake note I I
and
dont There or it
forget were swam over.
to no a I
thank-you trees, last and sunny rites. when
later. to back the
afternoons, went came of
old gym, was
friends
the
laps, washed
myself
clean
spirit,
doubts,
and heartbreak. Only debts remained. An out awkward the Dana A and to conversation disengagement Point we were than to just on the hop down a the with the SM and He at was Denise me Laguna just in. a We the us had It he was not,
started Nigel. stairs shade walked, silently faith, put on didnt needed;
process. steep, beach mess we
drove
past
Ritz
short
creeper-lined were
that
lighter and as hold help. he our
listened we
sea The
breeze, Pacific
enjoyed watched why we sky. I that
sunshine, and
talked. place I
chatted in the
about the have the
why,
lives the
beneath didnt
Californian questions
didnt know
answers
answering. This at is our end of story. this There book. are no happy was endings long
the
Avicena
dead;
live Avicena!
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Chapter One Who am I and why did I write this book?
was
born in
in
Karachi4 two I
but
spent of the to my
every twin
other cities of as and my a a to
summer could loving
Bombay.
Neither still from Bombay, from
survive
consecutive refer after
summers first
attention. second. desist,
myself
Bombaywala Karachiite cease and
(meaning
Bombay) this
refusal
using
unsanctioned
affiliation, switched to the name Mumbai. At the impressionable as Next on up an intern it the more Apple Hardware with the it age in was name so of a 14, I found was who myself startup active Jobs Next both then should
working named debate who sue sold Nexts
high-tech There or and in
Shop.
whether All
Sarwar first because
Steve
came whom. and
Sarwars since and
repaired
computers
P a k i s t a n 5.
Before
long, first
really
didnt into
matter
slipped
disrepair
obscurity.
The commercial capital of Pakistan, Karachi boasts a population of 15 million and a cosmopolitan mix of souls who are at each others throats more often than not. 5 In the mid eighties, with the bleeding edge defined by 4.7 Mhz personal computers, repairing Macs off Zamzama in Karachi was as hightech as hightech could get.
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It
was
at
Next
that
set the up and
precedent rare my
for
the and I
rest
of
my off
lifeblowing expensive Within from family Ziploc a the and and few
power of
supplies
writing was and
(then)
portable workshop next to two this
computers. all
days
arrival,
banished my
organizations Over the added friends the
things
electrical. list driving,
decades
c a n t - t o u c h - t h i s 6 wrappers, kind), plumbing,
plastic spending baby
(bags, friendly real
sitting,
work, and the ability to earn a living. Years choice actuarial in time of sloth and an inability me to make a quick career or one to sell
decisions
ultimately between sciences. had led really by equally an FSA one Somewhere and an in to I
presented failed for a to
with
software opt to bad along MBA New
engineering pick either both. This
and
profound software, to I managed Business to
combination building followed the to same. pick up
calling actuarial this
devoted
disastrous
attempts path, of
(Fellow
Society York)
Actuaries) decided
designation School (the
from
Columbia and
step out into the real world on my own. My and international lost in Washington career London D.C. began with on a talent and for wet
getting
(first),
Boston cold
(next),
(last)
Immediate family members on my ability to deal with plastic: You cant ask Jawwad to do anything with plastic since he is hopeless with it. We cant even understand what Columbia saw in him or how he even survived London, New York, California and Virginia.
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winter talent Dubai humid I budget speed crises, family, known I also
evenings. for summer (next),
This
was lost
balanced in (last) with my late
by on
similar (first), hot and
getting and nights.
Jeddah
Riyadh Along
adventures, deliveries, personality Seger, 10with all midlife and
discovered
mismanagement, Dew,
over-runs, Mountain bikes, and lost
all-nighters, nachos, credit defied Highway, biology, of in Bob
conflicts,
Costco, Coast that
cards,
Pacific bugs of the this and
working and
pesticides my less
laws
physics,
chemistry. than by a year
equivalent earnings dubious within
forefathers quickly shorter
combined and borrowing enormous
lifetime then
topped
distinction losing
repeatedly
similarly
amounts
progressively
intervals. In the hope that my and children parents and may may someday and forgive just up learn my for me
from my bad
their displays manners, I and
fathers of I
misadventure
that
friends,
family,
greed, this them.
ignorance, quite often In to book.
arrogance, plain my few are a step with
selfishness, character, copies excluded
anger, wrote for expect
everyone
pick
pay from
Random
strangers but
this
condition
their
compliance would still be appreciated.
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And now for the official reasons:
Ideas others the cause, that
for
new us
venture Some of years new
arrive start
with as
moment to of
of gel the of
blinding real
insight. concept most is into
accidents;
take for
wandering ventures, by a
effort the It
into
shape.
Regardless downhill is and
flash a
inspiration fades venture
followed
journey rare are
insignificance. vision
whose
original
potential
fully realized. Why and is that? Unlike young pattern parenthood, guides us businesses. instinct, of failure repeated is there in Beyond is is no the an well
paternal missing
instinct paternal that
that
nurturing
growing
there
observable behavior
fatalistic neither
indicates
documented nor well understood. My fascination years or with spent be or failure with it as has now spanned in 15
years shape
new
ventures intern, owner,
some
form, mentor, same
employee, investor, And I risk
consultant, student, found the
customer,
vendor, innocent in
bystander. domain:
parallels
every
management, offshore building, services. that I came hard-pressed
insurance,
counseling,
consulting, capacity financial literature I have on been Donts.
outsourcing, training, Yet to across most find
e-education, and contemporary on Dos.
technology, focused good
material
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Attitudes, impractical customers, took the doing it. What down follow Post have about in
helpful advice to
hints, about about name
practical money, it the and right
and
products, someone way of
employeesyou write
time
the along
wrong I in the
way? would lines
Every have of of an
time
went and
flames,
appreciated this emergency." about I life I would After and I didnt the one. was a
something
"break
instructions failures, as to a
case
rather about that I
than other didnt ones ones I
reading exercise of who who my have, got the failures.
successes, loved and to who burning savings want to wanted losers Even regular on
therapeutic three the the years
read
through money read read the would among
about about
away.
didnt, only I
proved
that
wasnt years plain pick up stacked
during wage
in-between just me make
when simple the with
earner,
morbid book secrets
fascination failure
lone
shelves
of business success at the local Borders store. On a personal the to one on and religious we level, need to the I believe is good Our cause nonof every good. the are down, or you
that desire of
thing and with do
sorely ways is
commentary all evil in it
sure-fire this
fail. root in a
compete tone the is
succeed just A of
(imagine eyes). far
delivered the of us a to when
evangelical madness For one, and
right
hint
dash
failure world of God are you
now and then will equivalent lost,
all
easier deity as
find to
spiritual confused
compared
when
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busy with is a
celebrating the if great time this an
victory. to is
For
another, that your good out it
failure, brings, and it. to A
comparative
isolation you also of
re-examine what is a
life of
decide total to
want your
system
reboot
opportunity your
take
inventory
resolve,
commitment, and your drive to succeed. For most in this first of the us, What bank How the fees failure will represents happen If I I when I the my stuff is of no
nightmares. money card rent the
there or
account? will do and When natural What
miss my
crediteven on the
payments? of
make tell Who day will gas
payroll will care, they and
month?
employees cover
month?
bills?
School
insurance cutoff How w a t e r 8?
premiums, electricity,
m i l k 7? phone,
bad is that eviction notice?
Somehow caffeine, shouldnt
there is always a way to pawn sources of nicotine and other satanic vices, so you worry about those.
Just for the record, if you are short on cash, pay your telephone bills because the Bells (PTCL in Pakistan) are a real pain in cutting off your phone. They are not super efficient; they can just do it electronically. Electricity, water and natural gas you can skip. The last three utilities are far more polite than your local telco provider. The politer ones will first show an outstanding balance in your bill (one months grace, no rude reminders), then show another outstanding in your bill (two months grace, still no rude reminders) and then finally send a pay up or we will disconnect notice. You might be able to stretch the notice for a few more days or weeks depending on the size of your city and state. I have only tried this in California, Virginia and Karachi, but I would hazard a guess that you should see similar patterns elsewhere. The only exception to the above would be if the Mafia (Italian, Russian or Chechen) is running utilities in your town.
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Is it really that bad? With apologies to Emilio Estevez, Billy the kid, Bob Seger and Warner Brothers, Why dont you turn the page and find out?
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Avicena Timelines
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Book One The Story
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Avicena Snapshot Business Name: Avicena LLC State of Incorporation: California Nature of Business: Online education Subject Focus: Corporate Finance education Customer Focus: Banking and Insurance industry Positioning: Knowledge acceleration Business license Number of employees/consultants: 6 Rounds of funding: Two Years in business: Two Total capital raised: 300,000 US$ Total capital deployed: 820,000 US$ Technology status at termination: Interface, website, content and content tools live in Production Number of courses produced: Five Beta customers: Three Business plan 1.0 date: April 1999 Go live date: October 2000 Date of death: June 2001 Business plan edition on date of death: 57A Famous last words: This valuation is too low Reason for Failure: Read attached 250 page book model: Per course, per seat, per year
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Chapter Two - Memories
Broadway 1999.
and
Amsterdam. trees in Sundays.
New full Thats
York, how I
the
year sunny
Cherry and
blossom,
afternoons,
remember
the beginning. Sunday between Church diagonal sprinkled holes, Walk from old a and is the only day as and it to a experience with of on shops, on come midst the wide. elegant, Columbias Tucked on one Riverside a the street watering other. away an on John will 20th-
Riverside and
campus the end, with
first-timer. School down Music
Broadway
Amsterdam
Manhattan delis, farther and
looks
corner towards you in will the and
ethnic
restaurants
little
downtown, of church St. Both
the
campus,
across
church is
squatting sleek, flat,
century Riverside the
construction. is
Where and
tall,
Divine
broad,
catch your eye. When first right and I Saboor, look next it to Fawzias was the a cousin, We of the looked road took us for our
Sunday. of
parked
on
120th, Fawzia into were of and and
School and a
Engineering. heated deserted around. by forest blue
stepped A wide us
out empty
Camry We made
chilled here! welcomed
December to
traffic
brownstone schools, clear with
multistoried walkways,
dorms,
apartments, skies
topped
served with an ice cold breeze.
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Our
personal
tour
of of
the past the for we the us
campus bare two believe the had
led trees
us
across the off all
cobbled imposing College ours in to
pavements, faade Walk. I
and was
libraries this 18 gone guard next
couldnt what and let
experience after The weeks

9
months, through for the but at
especially London . two another entrance
just
business
school in. We
was were
closed early
security
wouldnt
I had seen enough. It was love at first sight. Inception A classroom The was off Broadway is of as was and a breakout Avicena pain-free werent plan. its were stillborn from an room was and sure class Then peak, set than overlooking born. for if it the Amsterdam birth couple where we
relatively days, than a a
first
anything was
more a
project again, venture for MBA a with
masquerading NASDAQ capital a
business away
year
returns plan
and got
inflows and more
record-breaking business
year,
in-progress mileage
one with no plans at all. The the hour room classroom last class a before forming in on U question Thursday There on would were 15 be of booked us in for an the Some
evening
scheduled chairs.
sunset.
comfortable
The US embassy decided application for the MBA twice. The week before I the MBA program and head on Columbia intervention
to decline my F1 student visa program at Columbia University was all set to say goodbye to back to Karachi, they relented and issued me a visa.
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from with
S I P A 10, more
some than
from a
the
business
school, in
all the
passing
interest
subject Don Sexton taught. Don start filled handouts Hopkins his hours, focused would time, with for arrive pulling a the five his minutes black before of his class tapes, Anthony once few that a from
roll-on and
suitcase
30-year days room weave best VW from took TV The
collection would a fill For
session,
smile. he on
quickly the next show made, soft
presence
became
known.
would global of the (The
majestic spots ever to coffee
marketing.
Beginning
with
selection (Mountain Choice) learned brand subject
automobiles to what for
Bug/Beetle) instant to delivery
drinks we a the hold
Dew), it
(Tasters grow to
overnight
(FedEx), and how taught
establish Don and had knew
internationally. three decades
his audience. One was, the would after weekend. softly expect all, for attendance the last with to the be of
11
thin; the Deli hour
this week, and and below
class from
competing would
attention Party sneak in
happy
sounds
Uris
through
window
frames
10 11
School of International and Public Affairs is the public policy school at Columbia. Uris Hall sits snugly between the entrance to the gym and Columbias School of Engineering and houses the business school. With Uris came Uris Deli, Uris Library, three floors of classroom, faculty offices and Room 303the Columbia Business School Auditorium, witness and host to orientations, presentations, prime ministers, presidents, kings, and student body meetings. Uris is now complemented by Warren Hall, the shared business and law school building on Amsterdam.
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vents us
in
the step
room. out
The
more
adventurous with
among
would
and
come
back
salvation
in plastic cups and on paper plates. For I over would dying would days the of I the duration passed side out On the of the Dons cherry on of the and a Earl class trees Hall, trek for me, and much later, guard
walked the
standing white Room
entrance in my
Broadway. haze to be the
Canvassed blossoms by the I Most bloom the the and our 310,
against
faade
stand sun. step
reddish they
cast
short look
inside of
would
there. first
would
sneak before of the the our
signs
announcing out with name with
arrival blossoms, draft with
spring. always
For be
the
leaves
filled The
contrast, first bloom demise. Things There much on
would
associated plan. our final for
business and
second
search third
incubation;
moved was
slowly both in its on be
for that were
the had
next to be
six done on
months. and as
research stairs In plan
thinking; the
carried of was a
out
willingly sunny the need; be the all
front
Uris stages,
afternoons. business it was product chosen, content, questions and then Whiskey), corner unending
initial how the what it, it,
had
defined built, build buy
possible
silent would who who
ultimate platform would a who
finished would write
would would
and
thousand (Bates
other and the an fish
that asked
were and of
asked, I
answered, Ken
debated, in
again.
Arno, became the on
Kamar, supply
fixtures that rye,
room
overlooking
deli
served
tuna
fried
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fillet, white
iced
tea,
and as
rice our
pudding.
The
lone the
board
serving
battleground,
business plan our empire.
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Chapter Three - Before the Beginning
An to by
Ivy get 700
League your plus
business GMAT you
school In a
is
great
place
bearing.
world and
characterized college a daily a one-in-ten on
scores, end up
outstanding competing
grades, entrance
fast-paced rate,
careers,
basis with the best and the brightest. One would of think the to too out Who one that in the no to presence concept or handle; vacation choice and due the of of such be no it in
masters
universe, understand difficult with would had a a
would and
difficult assignment would you your be walked future
decipher;
extended paycheck
two-year and a
before plum just or next after? or
substantial stumble measly final
increase panic the day
positions. because corporate morning Who or
they a
statistics
finance With of a
assignment few to
macroeconomic their
indeed?
exceptions, being
everyone, with
regardless experience,
background,
education,
admitted
overwhelmed
the course load of the first term. My an course load was no for the think exam, of different. core you pass with Columbia of and Due had
exemption that
policy formed You
coursesmandatory secondsubject, advance to the could know it, the the
courses year take to the the
foundation
electives. next
exemption level students
elective.
policy,
familiar
core
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move
on
to
higher-level
topics
without
being
held back by the structure of the program. In of a temporary fit of insanity, and Time took I I a exempted PhD (CTF from about who out for prior warned the had were I of end and first their
corporate a
finance I of
elective
titled short), me with on
Continuous subject Maria of in day the her all
Finance knew the
thought
exposure. complexity wandered assumption alike. undertook ignorance of term my confused as
Vassalou,
professor, her the
the
registration and under finance her MBA
subject class PhD
experience mistaken advice, the lost the
previous that a and and
ambitious
students
electives journey as
After
ignoring 12-week term, worried I
friendly
torturous was about else just was
self-discovery.
Towards
first
flunking
everyone
about
particular demons. For now, help where I turned Google h i t s 12, useful but pass by none my in to turns Alta 1999. included CTF and indicated a search up You Vista got An that engines. plus didnt several that I was Unlike of yield pages would survey being on
200
pages
relevant anything of of the hits me other help kept
materials if of
final.
informal
students CTF
awake
paucity were
material
subject, with
others
facing
similar
nightmares
accounting,
microeconomics,
12
Thank
you
Google
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statistics,
corporate
finance,
operations
management and capital markets. Two options to were the has my teaching was finer been assistants limited) points Both master to of or the and tutors at out my a
(access hours hand it
either
spending topic were
arguing with as a by
classmates. dignity
options of this or publicly
because was
universe declare inside
below
ignorance
being
caught
outside
tutorial session with ordinary mortals. The structure of To of this problem balance the and The blown stay lay and with the pool the right came or from arts the and Of had in had
composition population. chemistry, from financial liberal majors numbers struggled the the the math but right (or
the
typical of
business student from
school
maintain
one-third
consulting, arts
one-third
banking liberal away by term school. half well do
institutions, poets) were in their
one-third
backgrounds. the
required and a
first in to probably
throughout background only combination
consultants
bankers, small of
necessary select
school
percentage
experience,
studies,
grades, and mindset necessary to thrive. The in rest had to led sheltered, functions. work, when they said own comfortable At ease were A of and a in they lives areas as to of for
narrowly as the
defined their poets
similar lost venture 800
just
were that
forced pool pay
onto
unfamiliar calculation 70%
territory. look
back-of-
the-envelope
students,
would
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assistance
if
they
could
get
it
discreetly,
conveniently, and cost effectively. Why? Because everyone banking and only wanted jobs guaranteed was bad wanted careers the consulting with first the grade and and year top 5
investment reimbursements bonuses. grades. deflate The All
tuition respectable would bonus
prerequisite a single
interviewers even ambitions,
percentile prospects. If you a Columbia when were month

13
and
dreams,
had you
more added at
than the
600 other to
lost top
souls 50 US$
every in 30
year,
schools, 20 a US$ to
looking fix for and all
another
15,000 spend
students
a similar
willing
personal answers. which hope students
tutorials, Thirty added was to a up to over
guidance, month 4.5 than next
assistance, from 15,000 a I million anything
dollars lot
year, could
more the
earn
decade of my professional life. It the took Don of Sexton, to very school the our International framework plan Of for Marketing became The to get need in
professor, basis was pitch in. some
provide simple: every with
the
that
business
Avicena. apply 30%
120,000 year. at
adults those, 70% two
business Of
the
admitted
candidates, least
will
assistance
subjects
13
Private tutorial sessions ran at 15 20 dollars an hour. Student focus groups had indicated a willingness to spend as much as 100 150 dollars a month for assistance with the entire course load.
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their could the
first
term a term, terms
and
with
more them on
later of
on.
If
you in a to
capture
reasonable retain at to
share and
these
first
throughout coming
their
remaining smaller the their up to site a
school, keep to
convince back queries quickly
percentage for
answers lives,
their numbers
over added
working
the
fairly
substantial
gross
revenue
figure. And this was just business school: and got group was could a When you
added
other
professional numbers question serve the find in, it to to
education, just
continuing bigger and costbase. the of is sure-
professional markets, better. content If you the The and
development, was build
certification you in generate a
this
effective taking. fire faith, As
fashion with to
profitable yours the a only
could,
opportunity out was to it
for leap
everything and give
else, a
way
take
jump
shot;
which
what we did.
From : Kenn eth R. B a te s T o : A r n o Go b o y an ; J aw w ad @C ol u mb i a , Cl u s t er X S e n t : W ed n e s da y , J u l y 1 4 , 1 9 99 9:3 8 A M S u b j e c t : Me s s a g e s e n t o u t
This is a message to a select group of classmates from Ken Bates, Jawwad Farid, and Arno Goboyan. We're asking for about two hours of your time on Friday morning to get your opinion on a new product that we are developing. We'll supply the pizza. It's an internet based supplemental
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learning product targeted to current or former students in an MBA curriculum. We are learning about this from a new products class, but we're developing it for real, as in start-up, entrepreneur, etc. We have only sent this note to about ten classmates who we thought might be interested both in how we're doing this focus group and in helping us out. Those receiving an invitation are: Grunther, Mike Beckerman, Ria Jacqueline, Shannon, and Tim Kelly. The specifics on the schedule are as follows: Time: Friday 7/16/99 from 10:00 am to about noon (hopefully a little shorter) Place: New building, Room TBA 14 Activities: Brief explanation of the product (15 minutes) Access to a product sample on your laptop (BRING YOUR COMPUTER) and chance to use the product sample briefly (30 minutes) Questionnaire regarding your experience with the product sample (15 minutes) Questions and comments while you eat your 2.3 pieces of pizza, With the inevitable questions, delays, and shooting the breeze, we're hoping the entire process will be finished in a little over 90 minutes. We hope that it will be informative and interesting for you as well as us. Please reply now with your confirmation about attending, so that we can plan accordingly. Otherwise, one (or all) of us will talk to you on Wednesday or Thursday. Thanx! Kamar, Jason Brown, Liz Kuhse, Scott Spencer, Nicholas, Stephanie, Alain,
14
To
Be
Announced
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From : Kenn eth R. B a te s T o : A r n o Gob o y an ; J aw w ad C ol u mb i a ; K a ma r B ak i n ; R i a Sp enc er ; T i m K el l y S e n t : Fri d ay , J u l y 1 6, 1 9 9 9 3 : 42 A M S u b j e c t : Y ou 'r e th e B e s t ! !
Thanks for agreeing to come to our Focus group tomorrow morning! We're totally committed to making it fun and interesting, as well as educational. Here's the specifics: TIME: 10:00 PLACE: WARREN (NEW BLDG.) 209 AGENDA: Coffee and Donuts from We'll tell you all about the product 9:45 to 10:10 10:10 - 10:30
You'll get to test-drive the product and give feedback (rest of the time) Pizza is planned during the wrap-up at around 11:30 - 12:00 See you there... KB 15
15
1. You would be surprised at how willing your network is in sharing insights, feedback and ideas when it comes to testing a new product. Make sure that you make full use of it. 2. Creating the right transcript for a focus group session is part art, part science. The transcript design is a function of what you want from the focus group new ideas, validation of product concept, attractiveness of specific product attributes or insights into product pricing and distribution. That determines how a question is asked and how it should be answered by participants. 3. The feedback from our session was very positive. We received indicative price ranges for how much students would pay for learning online, what attributes on the product platform attracted them and what were some areas where presentation of materials could be improved. What we learned from this focus group formed the basis of platform design, product strategy and Avicenas eventual architecture.
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From : Jawwad T o : G ary Tr av ni ce k S e n t : M o nda y, N ov emb er 22, 1 99 9 9 : 5 8 P M S u b j e c t : Re: J a ww ad
Hi Gary. After Amin, I just went under for six months. It was such a tremendous mind shift for both of us but we are really enjoying the experience. He will turn seven months (Insha Allah) this weekend and he has started standing up. I am more or less through with my third term at BSchool. I am graduating in May (hopefully) and it has been a great experience. Learned a lot, met some really good people, brushed up on a quite a few weak spots in my education. I even like to think that I am a better person now. (Always helps to know the limits of one's knowledge) Fawzia and I are planning to stay in the US for the next two years if everything works out at home. I took out a personal loan for BSchool and I need to pay that back. On a Pakistani salary that would be difficult to manage hence the two year delay in our return home. I have been working on an education venture with a few friends for the past six months and we are trying to decide if we want to do it on a full time basis. Decision point would most probably be in Feb-March 2000. yet. We are also thinking about visiting Florida in March. Its a maybe but if we do I would definitely like to come over and see you. How are things with the new firm? Was the transition smooth or did you hit any rough spots... Also spoke to a few companies in the New York area but nothing is confirmed as
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Well that is all from me, for now. I will stay in touch and keep you posted on how things go. I am planning to visit home (Pakistan) in the winter break for three or four weeks. Would be back by mid of January. Take care Jawwad
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On Takeaways
Y o u couldnt possibly hig h l i g h t t h e t a kea w a y s l is t e d h er e with the innocuous emails included in the prec e ding s e c tion. A nd no there i s n t en o ug h m ea n in g h id d en b e tw e en t h e lines for you t o p ick t he s e u p as s ub l i mi n al m e ss a ges . When at it came to putt ing wa s and d ow n the t a k ea w ays , ha n d fu l of I c he a t ed . I I
d i d nt stop at the emai ls b u t a ls o t h ou gh t a b ou t t h e p h as e which Avicena t h in g s s t ill r e m ember and woul d lik e t o p as s o n . h a n dfuls. He re i s m y l i s t o f
Takeaway
Team: really Brilliance successful can in only life, take you you need so far. To be more than just
yourself which means you will reach a stage where you will need others. Ultimately deadline, its books a the team that win, delivers, and pays meets a
customer
the
bills.
Without a team, you - the entrepreneur, are nothing. Its the team that gives you the confidence to take the plunge And and yes carries it is you the through team in your makes weakest winning wins. that
worthwhile. Yes the comfort of company will cost you a sizeable share of your future net worth. Is it worth it? Only you can decide.
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Running
business cost. as a an few
while
at
school: cost If not is
Your the
single size of six your
biggest obstacle when it comes to entrepreneurship is opportunity stepped struggle out for Opportunity your current pay check that you would forgo, if you entrepreneur. years may you fit earn in figure per annum today, letting it go to starve and definition of moving up in society. At school you have already given up the paycheck (and the opportunity cost problem) in your quest for self improvement. Can you actually do it? Graduate school is a walk i n the park if you tackle the problem of mixing business with studies correctly. and same Thursdays, day, and wrapped was free In my last term at school I up to my assignments on by 9pm for the the structured my classes from 8 am to 6 pm on Tuesdays work Avicena
remaining five days of the week. In that term I made the deans list, competed in two business plan competitions, finished the proof of concept, marketing, strategy and financial projection documents, closed the Aleph and Appsys deals, managed an introduction with a recently retired head of a big five accounting firm and moved to California. School is also interesting in that you have access to a unique and fund a microcosm give you of society that may open future My doors hedge valuable a of fund feedback raiser for free.
social network at Columbia had a Bankers Trust MD, a analyst, member for the Clinton team in campaign, Reuters management
North America, the son of IBMs CEO, four actuaries,
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an F-14 pilot, two nuclear submariners, two engineers from Qualcom and Intel, a popup video editor, a fair mix of Indians, Pakistanis, Portuguese, French, and Englishmen, Miss Universe Australians, title. Peruvian, was just Italian my
exactly one Venezuelan (potential) contender for the This network; imagine what the other 700 students looked like. Customer Validation: Liking the product or believing in it yourself is not is not enough. limited You to need to get sets, more The you of you make the feedback from people who will use the product. feedback product purchase. expect. the If presentation concept just feature
need to ask question about pricing, purchasing power, appeal, that or work presentation the happens strategy or and is likelihood not what to whether tweaked Sometime feedback determine should rare be
product,
(in
cases)
should
difference in opinion be ignored completely. Set personal and family expectations: Three years of hard back breaking labor and then we will get used to it.
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Chapter Four Aleph on the Scene
Ken, they to
Arno, were
and In
Q a m a r 16 back and the risk I
had to
made of any to as U.S.
it
clear jobs
that after of an
going the had, MBA of
regular the in of
graduation. share I offers pill. Ivy the
absence was was and do
real take the in
partners the safe
given
handful U.S.,
ready just the and
Beyond
what East,
available rest
League Middle cost
could
well
Europe, With you
Asia.
Asian
living
salaries,
could make your dollar go a fair distance. The I a I conversation it Before invested hadnt would Internet executed had were a with be and Sarwar it had was been to the to first time that
thought shot. had I
would in
possible wanted
give take how
Avicena further exactly the on and that for and
then, really
something
but that the had They they
thought
about been
happen. Aleph front had for
Sarwar already the last
forced working years three in
connection.
reasonably of had we could to to
sophisticated Karachi
work.
team
developers offices could in the ensure tap
willing that we
partially in use, into,
allocate Pakistan had and a
Avicena network sector funds
work, of that
California
decent make that
clients
financial that
services
would work
available
16
Please
see
the
appendix
on
cast
of
characters
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couldnt
be
done
by
the
internal
team
could
be
outsourced to Appsys. We and a had two and detailed shook we of a conversations They two of to get over get of and to 48 hours of
then handful
hands. would
would years access Sarwar
15%
Avicena
support, Aleph and, to Denises
programmers, fat chunk they exposure engine
facilities, time, as a build final the
adequate
their
clients, which
kicker, core
would around
fund
Appsys
Avicena
would stand. Fawzia was a fund human work even taking bigger and a our families and was a werent real personal how I sure loan for a where and this with to to was the and full
heading. the out. I MBA,
Without it
any
capital
wife,
kid, to My
taken it I
impossible (and that at just from a
thinking was that
being
understand strength thought one step was viewed
expected out. bleak but
weakness) far time too sane
hadnt things when picture
because
depressing
eyes,
of opportunity and promise when seen from mine. Then about the came it the and and it trip a made to California The to two of sense and us to Aleph talked take up
offered
Fawzia
job. move
perfect
offer
just
southern
California.
After all, this was destiny at work.
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From : Jawwad 17 To: SM S e n t : S a t ur d a y , D ec em b er 2 5 , 1 9 9 9 5 :24 PM Sub je c t : Bpl an: J a wwa d
BPCG is the Business Plan (40 pages) Exec Summary is the first two pages of BPCG (2 pages) EFinFinal is the Valuation. (10+ pages) You may want to print these out first. You can take a look at the proof of concept at http://www.columbia.edu/~jaf71/GuideHome.htm . need to use Explorer since it won't work on Netscape. months we have changed the design a lot. You would This was done in
June, but captures the essence of what we were thinking. Over the past six Think amazon.com, except replace books with concepts. Let me know what you think. Take care Jawwad
From : SM T o : J a ww ad Se nt: Th ur sd ay, D ecemb er 30, 1999 7:47 PM S u b j e c t : Re: B pl an : J aw wa d
When would you like to meet???
17
Sent immediately after the Hundred Million conversation with Sarwar on Christmas Eve.
dollar
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From : Jawwad 18 T o : D eni se D a vi e s C c : S M; Fa ha d ; S e n t : S un d ay , J a n u ary 1 6 , 2 0 00 1 :4 8 P M S u b j e c t : Re: C on ce p t s . c o m : E a r l y S u n d a y mo r ni n g
Okay made it to NYC in one piece. Its close to 4a.m. here and I am finally done with unpacking and cleaning. Off to sleep in a little while Fahad and I worked on Friday to further firm up the scope document. I did some more work in the air. It's all on paper and I will try to get it down in word/excel and mail it out latest by Monday evening. Once I have this out, finalizing the database design should not be a major issue. Denise I will call you up on Tuesday, after I have taken care of the above two items. Jawwad
From : Jawwad T o : A l e ph Ka r a c h i; A p ps y s K a r a c h i ; S M; De ni se ; Se nt: W ednesday, Jan uary 1 9, 2000 2:55 A M S u b j e c t : Re: C on ce p t.c o m : S p ec D o c um en t
Take care
Good evening everyone. Here is the document that describes the discussion Fahad and I had on Friday. There is also a screen definition portion that
18
Within ten days, Sarwar and I had agreed on a term sheet for Alephs incubation of the new venture, roped in Fahad and Appsys to do the core programming engine work, reviewed the initial design document, the architecture and signed off on the initial project plan. The urgency was necessary since I had to leave for New York by mid January and didnt know when I would have a chance to sit down with Fahad next.
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describes what we think would happen on each individual screen. The excel document includes the screen shots. As I have mentioned in the attachments, please review this thoroughly and raise as many points/questions as possible. For analysis and design we are not limiting the scope to just the pilot. The Pilot is still limited but it would be useful to get an idea of what would be expected from the whole system. I still owe you the relational data base design and process flows. Two more days. Meanwhile this should keep you busy. Fahad see if you have enough to start talking with Faisal. As I said the DB design in its existing format is around 80% done. With these two documents you should be able to identify any missing parts. I would also appreciate if you and Faisal can start talking about the partitioning between the Front end and the back end. Look forward to your comments. I may drop off to sleep but would be online again in 7 hours. I would be really happy if I can have some (any) feedback on these by then. BTW you need winzip to unzip the files. Take care Jawwad 19
19
Even though in principle, I had decided to stay away from technology, in reality architecture was still dependent on what I wanted from the platform, not just now but also a few years down the road. If we got the architecture right, everything else would follow. Fahad the lead designer from Appsys and I spent our first few days working together to map architecture in a document that could later be used as a reference by any team member.
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From : Jawwad To: Karach i; Ale phKarachi ; SM; Deni se: Fr iends; Bo ar dOfDirector s; S e n t : S un d ay , F eb r u ar y 0 6, 2 0 0 0 1 1 :1 8 P M Sub j e c t : We Fi nal l y h a ve a na m e. . ..
Finally we have a name... I am at peace. I have registered the .com and .net addresses I like it a lot... Its what I was looking for. We are named after Ibn Sina an Arab scholar of some fame who did a lot of work across different fields. In the western world he is known as Avicenna and for his contributions to medicine. But a little known fact that actually stood out for me was that his biggest contribution was synthesis / compilation of existing knowledge. Sina added a lot of value by his insights and his systematic approach to his work. So the name ...... drum rolls... is... Avicena.com 20 (Avicenna was already taken and most of the original Arab variations were also gone. I thought since we are naming the thing after him, he wouldn't mind one missing n.)
20
The sequence of names settled on Avicena: a. b. c. d. e. Cookaracha Guides Concepts.com QuickConcepts.com QConcepts.com Avicena.com
that
we
went
through
before
we
Concepts was nice but didnt have any buzz or zing to it. Quick Concepts and QConcepts were both functional names. We wanted a name with a story, a bit of mystique, class and the ability to brand not at a functional (attribute driven) but psychological level (image driven). Avicena delivered on all of the above.
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Finally since our primary customer base is in North America and Western Europe, Avicena would probably be easier on their tongues than Ibn Sina or Sina or Bin Sina. As I said, I am at peace. I have found what I was looking for. Will look
forward to your feedback. And I mean feedback. FROM ALL OF YOU. Jawwad
From : Jawwad T o : J oh n G. M ur th a S e n t : M onda y, F eb r uar y 07, 2 0 0 0 4 :1 9 A M S u b j e c t : H i th er e
John Hi. Thank you very much for the baby snaps. I got back home on the 15 th and have been busy with one thing after another. We actually found a very good tech subcontractor in Pakistan. Sold 15% of the firm to them and in return got 2 years of software development, execution & implementation support. (Read: Five Web developers & one core manager for our management team). Also picked up a name for the business. Planning to do a market test in March followed by a bigger one in May. If things move along as predicted will be open for business in August 1, 2000 What about you? How is the healthcare business & fatherhood treating you? I hope everything is fine at home & work. Keep me posted. Take care Jawwad
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From : Jawwad To: SM S e n t : W ed n e s d a y , F eb r u ar y 0 9, 2 0 0 0 2 :5 0 P M Sub jec t : Busi ness Pl an and Con tr ac t Issu es
SM. As mentioned earlier, I am meeting one potential source of funding on Friday. Also setup a time with another potential source on Monday morning. I need to make a couple of major changes in the business plan reflecting the progress that has been made since 18 th December (last update). One of the big things that have happened is the contract with Aleph. Its probably the biggest asset Avicena has on its books. However, once I put the details of the contract in the plan, it would go beyond an understanding between you and me to a relationship between two firms. I understand that for all practical purposes its already at that level, but we would be introducing a formal structure that did not exist on paper before. Is it possible for both of us to agree on a one page statement of understanding that could then be included in the business plan? The statement would form a basis for valuing the contract and the firm. It's important to get this done before the next week is over. I need the initial value so that when I actually walk into a room with these people I can say, this is what the firm was worth before the contract, this is what its worth now, this is what it will be worth after the market test. And since I need x million dollars, this is the portion of equity the new investors can get for their contributions. So far I have thrown about a figure of 1.5 Million dollars for the Fair Market value of the services provided by Aleph to Avicena over the next two year period. The basis that I used was the following
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1.
Thirty percent (30%) of Sarwar Mushtaq's time subject to availability
spread over the next two years = 1,000* hrs @ 450$** an hour = 450,000 2. Web Development Team (1 Graphic Designer, 3 Web Developers, 1 Tester) 5 People - available on demand for Avicena related work at a charge out rate of $300,000 per year for two years for the team = $600,000
3. Technical execution & consulting support in Karachi and California= ??? (the remaining amount) 4. In return Avicena sold 15% of its equity to Alephinc. Sarwar Mushtaq joined Avicena core management team and will represent Aleph's interest in the firm * (30% * 150 hrs a month * 24 months = 1080 hrs) ** ( (250,000 per annum * 3 )/ (150 * 12)) I need to get a feel for your level of comfort with the above. The important issue here is what happens if the contract is formalized and I lose control of the firm or its management. What kind of safeguards Aleph would like to place in the contract to protect its position and its interests. On the other side the issue is that our understanding is worth a lot of money to a lot of people. We need to put a market value to it in order for us to reap the full financial benefits. As long as we understand how much its worth, we can ensure that its reflected in the value of the firm and that new investors pay a fair price for the equity they buy. That is we don't give away any discounts to people who have come on board at a later stage. These are things that both of us have to think about. The issue is also important because we are now moving to a phase where outside investors may get in a position to exploit our understanding and relationship. Please feel free to bring out any concerns / reservations / issues / problems / ideas that you have about anything discussed above.
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If you agree with the overall assessment above, I will raise the figure to 2 Million dollars for fair value of the contract. Which would put the (ball park) value of the firm at 13.3 Million $. Million $. Take care Jawwad Which means that if we sell an additional 10% stake in the firm to VC's we should be able to raise 1.3
From : Jawwad T o : J oh n C u si c k 21 Da te: 27 t h M a r ch 2 0 00
Dear John We met at Columbia Business School Mentoring for Entrepreneurs Program in November 1999 and February 2000 (Tom McKnights class). We spoke about our online education venture and the possibility of getting in touch again when we were ready. Things have progressed significantly since our last discussion. We now have a name, a committed management team, a proven technology, dedicated and reliable contractors and a very focused business plan. One of the first things you had appreciated about us in our earlier meetings was our focus on Finance and how that would allow us to exploit marketing, advertising and execution efficiencies.
21
Within the Venture Capital and Investor networks, it is not about what you have or what you can build, but who you know and who referred you. In Johns case it was another Professor at Columbia and a fairly long chat at a Columbia Mentors Network event. The bad news was that with a few exceptions, no one would return your calls or emails, irrespective of their relationship with the Columbia network. It would take a personal reference to ensure that you received any attention. The one shinning exception was Vinod Khosla at KPCB who wrote a week later saying he had looked at the executive summary and wasnt interested.
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I have enclosed a copy of our business plan for your reference and will look forward to receiving your comments and advice. If you have any questions please feel free to contact either me or Sarwar at our given numbers. I will call you in the second week of April to follow up on our conversation. Best Regards Jawwad Ahmed Farid Avicena Inc
From : Jawwad T o : S ar w ar Da te: 1 5 Feb 2000
Vision I keep coming back to the statement you made when we were speaking about how the Internet is going to change the world (mid Jan, 2000). Both of us agree that the net implies a fundamental shift, across the board, in how things will be done in our day to day lives. But such fundamental shifts require financing. Irrespective of who benefits from the shift, one definite beneficiary of shifts through out the history of shifts is the Financial Services industry. Look at railroad, automobiles, pcs, wireless and now the net. Look at how the Financial services industry transformed in response to each of these shifts. Individual companys may come and go, but financial services will always extract its pound of flesh. What are the implications for us? As I have said in the modified biz-plan, the industry may change shape or form, but at its core it would remain a process driven business (relationship management, portfolio construction & management, risk assessment, financial underwriting, asset liability management, etc). This implies a number of things. First as the industry
grows, it will need new blood and resources. Second since the industrys core processes are complicated there would be a steep learning curve. Third
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since the fundamental shift will change some of the core processes, there would also be a need for continuous learning training, lots of continual education content) professional development program. What is out there right now. On the web, its just personal finance. If you are finance professional, you get material that updates you about what is happening in the market, but that is it. If you want to grow professionally, you are on your own. How do we make money from this opportunity? Lots of new hires, lots of Need for a flexible (geographic, time,
Actually this new direction makes more sense for us. There is a big interest within financial services in trained man-power (experience, education or certification). Certification normally has a continuing education program attached to it. At present continuing
education is only through seminars and symposiums. If we offer a flexible and credible alternative, there is definitely enough demand out there. a. It allows us to charge a premium for our content, since the content with the CPE credits is worth a tangible amount of money to these people b. It also solves the motivation problem that we have struggled with c. It also addresses the desire / ability / capacity to pay issues Beyond all of the above, the space is wide open. There is no one out there. (as of yesterday). So we are definitely ahead of the wave. As the industry grows and demand begins to rise, the wave would get bigger and bigger and we would still be way ahead. Because the industry has so many complicated processes, it wont be easy to generate the content. You would need some very specific skills and resources
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and substantial effort on standardizing content generation.
Possibly
indicating that competition in the future would also be limited. Not every second person we know would be able to replicate what we would be trying to do. Since hardly anyone we know really gets finance. Bottom Line. First mover, ahead of the wave, lots of growth, empty space, below average competition, complicated content profits How do we get there? Higher margins and
My multi-stage plan: First six month total focus on getting the professional certification bodies on board. Our niche is still financial courses but we should get chartered accountants, CPAs, CFAs and Actuaries on board about our continuing professional education offerings. Next one year we expand our offerings to Insurance and Re-insurance companies. Year two onwards we become THE Financial Services choice for professional development and continuing education. Let me make myself clear here. The focus is still Finance. The courses we offer are still focused on Finance. But we would be selling the same content with minimal changes to the whole financial services industry. It will just be wrapped differently. This is on the marketing side. On the execution side, we have already outsourced technology. End of the first six months if it looks as if our over all strategy is on the mark, we set up an offshore content generation facility. Either Dubai or Karachi. There is solid talent in terms of MBAs, Actuaries, Chartered Accountants, CPA, etc that is based in PK / Middle East. We can harness this pool for generating top quality content for our customers. Would need to put in effort for standardizing the generation process and our products but once that is done. We are there. Obviously this revises the financial projections and our revenues targets. Hence my total rewrites. I have done the financial projections. I will include
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the excel worksheet with this document and the changes that I have so far made in the biz-pan. But there is work that needs to be done to bring everything upto date. The good thing is that there are no major changes in the technology plan. Or atleast none that I can see. For now. Jawwad
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Takeaway
Support network: More people quit and fail because they dont have the right person to talk to than you would imagine. You are not alone in the world. Look Just ask for it. around and you will find help. On deals: 1. A one pager is good enough. Sometimes even a little less will also do. 2. Funding decisions happen in less than 30 seconds. The rest is just logistics. 3. You have no hope without a reference or a prior link. The best references are customers, individuals
who share your profession, or people who have worked with you before. 4. There are times when getting what you need and raising capital are two completely different things. Naming the venture: Mystique, class, story and style. Avoid functional names or functional branding. A fast car sold as a fast car is functional branding. A fast car sold as a throw used back it to to younger sell days, same passion, concept spirit, freedom and individuality is such a powerful brand that Ford the (Mustang) to two separate generations.
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Chapter Five California
When
our
plane with knew John
started pools, heading Wayne
descending blocks, roads, had been
over and a
low giant smart in after
warehouses, complexes malls, move. Orange bearing in the brighter I The
landscaped
office open west
apartment
International pleasant is even
Airport at
County the on
was
surprise the sun than
madness
that
LaGuardia
6:00am shined it had
morning.
Somehow, and
Sunflower
McArthur
on Broadway and Amsterdam. Our as with new our apartment two-bedroom air had a We 24 we a had in the New a same York square but a was far a a footage newer, better that that
central around
conditioning pool, Two manmade lake, days
and and
layout. curved was open
walking later
path gym on
hours. thanks to
Amins Persian just a
birthday, restaurant,
discovered Sarwar
Darya, and
Denise,
short hop away. Dont Kph2 West and

22
get off 122nd on
me
wrong.
New a you
York Drive hefty
wasnt compared
bad, to in the the the
but 540 our lake mist
South Street Here
Plaza was our
upgrade see and
lifestyle. rising
balcony
overlooked could
cold from
nights the
heated
pool
stars
22
Versailles Santa Ana.
on
the
Lake,
opposite
South
Coast
Plaza,
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alight break study, the
in and I
the saw and
sky.
In
New
York, the of
when
I needed of by was a
a my
looked the In
outside kitchen sunny by
window stained it
another
windowsill
bird on the dark
droppings other sparkling green trees.
the
apartment
side. blue
California, a canopy
pool
enclosed
within of
hedge,
shaded
carefree
From : Jawwad To : c lu s t e r x0 0 S e n t : S un d ay , M a y 21 , 2 0 0 0 8 :1 3 A M S ub j e c t : Up d a te f r o m L A L A L and
X'ers I owe most of my friends and clustermates an explanation of where I have been hiding myself for the past six months. As some of you are already aware that I started something in January of this year. on It's still a very small venture focusing on online education. generation processes & distribution technologies With a for the team of four people in the US (and another 6 in Pakistan) we are working content education industry. (Not as complicated as it sounds) Since my technology and marketing team (represented by two very sharp people) are based in Orange County, we (me and Fawzia) decided to move in early March. I have been traveling back and forth on almost a weekly Hence, my basis to get the venture off the ground and finish school.
absences from most cluster events. With two new ventures (remember Amin
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Farid from last year), moving, commuting to school and remaining sane, I have had a very interesting schedule. On the financing side, one of our key suppliers agreed to cover our technology related expenses for the next two years. They took a % of equity in exchange. Our next round is now planned for September / October when we officially plan to roll out some of our products. It has been a pleasure knowing all of you. you have to do is ask. Best of luck in your efforts to change the world. Stay in touch. Jawwad
From : Jawwad T o : B o a rdO fDi r e c tors Se nt: Sunday , May 30, 20 00 8:1 3 A M S ub j e c t : Up d a te f r o m L A L A L and
If you are ever in southern
California, please feel to drop in. And if there is anything that I can do, all
Please see copy of attached update post meeting with Sarwar 23 and answers to his queries on current status across a few crucial areas.
23
Five months into our relationship, Sarwar was quite concerned about our momentum and direction. Part of his concern was driven by the fact that after a demonstration of the core technology engine, in March, not much had happened on the technology front. We had been busy with submitting business plans and projections and hadnt had the time to make progress on the content side. Even though part of the technology solution was ready, without content to play with, there was no visibility for customers, investors or Aleph. This note was the first update that went out to Sarwar and our Board, describing where we were on numerous fronts. This was followed by a Board meeting in New York in August and periodic updates via phone calls and
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Jawwad [Sarwar] After our meeting at the office and the follow up meeting at Souplantation, there has been no update on what the progress has been and where we stand on timelines and milestones. [JAF] I think the best way to address this would be to set up a regular time for a weekly meeting between us. We can do it physically when we are in the same city or over AOL Instant Messanger when we are not. For starters I suggest Friday (evenings or mornings depending on our respective schedules). As long as we stick to these weekly sessions, the paranoia should not recur. [Sarwar] I sense that we are losing direction, but hope that its just paranoia. I am assuming that you are the helm of the ship and steering. [JAF] You assume correctly as far as me being at the helm but not about losing direction. For me the direction is fairly simple 1. Find a customer 2. Get the product out 3. Get some money, either from the customer or on the basis of 1 or 2. 4. The amount of money we need would depend on how desperate we are, and how far we have reached with respect to 1 and 2 above.
email exchanges after that. In September we added one more member to our Board and had multiple one on one meetings on direction, strategy, presentation and pitch in Newport Beach. An active, easily accessible, aggressive board added a lot more value than a passive one.
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For the next three months this is my direction and as per our last meeting at soup plantation this is the direction we agreed on as a company. The only thing new in direction is the training on the Internet side for corporate customers. Its a related business that can be used to pay our bills and refine our product. At the same time it helps us build credibility, starts the inflow of revenues (if only for investors sake) and is a step in the direction that we want to go in. This occurred on Friday during the meeting with MB when Ping was talking about training loan officers. I dont know how you feel about it, but I think if we get it right we have a good shot at getting MB as our first customer and we can build on that. [Sarwar] Progress tracking mechanism, some clear deadlines, and measurable milestones. [JAF] Programming We now have close to 90% of the functionality covered. Some changes have to be made because some of the processes are confusing and need to be modified. Also we underestimated the power of the search engine required. So work needs to be done on that end also. A new related project is the data entry, index generation side of Avicena. I have asked Fahad to generate a scope document. It is not a very complicated application but would be separate from the site and the original scope. Apparently Fahad needs your or Denises approval and a resource to move forward on this. No progress has been made on this item for the past one month. Although it is not urgent right now by mid June it will become a high priority item. My objective is to have the process and search engine work wrapped up before the 15 th of June. [JAF] First course offerings
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I am working with three courses now: 1. A dummy basic finance course that would serve as an introductory course for users, investors, employees, customers and contractors 2. A credit assessment course that could be easily modified and licensed to Manufacturers Bank. Please see comments above 3. A course on interest rate models and dynamic valuation techniques for actuaries. The idea is to have an outline and some content ready for review by Society of Actuaries and our technical consultants. The deadline for the first two courses is 15 th June. The deadline for the last course is early August. These two items are critical. Accountants, Lawyers, Customers, Employees, Investors; for all of them we need to have a site that works, that has a course that can be sold in real life and a process that is down to earth and really easy to use. If we can get these done and finished with by 15th of June it would be relatively easier to meet the rest of our mile stones. For me the only direction right now is hitting my target of 15 th June with both of the above objective met and crossed out. [JAF] Hiring I am now going to work with a number of people on a consulting basis. The three ways that I can work is equity, per hour charge or a combination. My preference is equity because its a very powerful tool for retaining interest. And it also allows me to keep the cash needs to a minimum. The three people I have in mind are people that I met at CBS and may or may not be interested in this arrangement. I will know for sure by the time you get here. [JAF] Deloitte and Touche I would like to stay in touch with Fred and follow up with him. However as per our soup plantation meeting, the business plan and raising money in the short term now has a slightly lower priority. I plan on having one or two
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meetings with him and keep him updated about the strategy that we are following and the success that we have had. I expect him to be on the top of my list again in early July. [JAF] Lawyers Azra (Akilas sister) has been in touch with a few of her friends and I am waiting for her references. On more immediate legal issues I can count on her support. And if we need to speak to a lawyer in a hurry, she is a resource that we can use. [JAF] University of Phoenix I have some of the information that we had asked for. Getting a meeting with UOP will not be a problem. But we need to have something that will blow them away. They become top priority after June 15th or as soon as we have the course and the site in respectable shape. I have a list of names that I can contact and follow up as soon as we are ready. But as I have said I need to have something that I can show. [JAF] Other universities or institutions The other key prospects are Strayer University, New Horizon, Unext, Pensare, Digital Think and Smart Force in that order. Follow up with them is scheduled in late July and would be shaped by how discussions proceed with UOP. [JAF] Professional Bodies (Actuaries and Finance professionals) Society of Actuaries on top of our list. To be followed up in parallel with UOP in mid June. [JAF] Board members, advisors I have two more people on my list that I would like to contact but that would be after June 15th.
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My other strong feeling is that if any of the bigger players sign up with us, we would need to ramp up in a hurry and have some pool of investment ready for immediate use. I think it would be beneficial to keep the July meetings as an internal deadline for a review of our strategy based on our performance till then. I am keeping the financing provided by Aleph for the next three months as a backup and a lender of last resort if we have any immediate cash expenses. Since Joe fell through and we have switched over to the consulting model, its possible that some of the requirements would be delayed. Beyond that I would like to line up 150,000 250,000 in potential
financing from other sources for mid July, early August. This is where Fred and some of the resources in New York may come in to play. If you have sources that you can access, its time that you start spreading the word. For the bigger chunk (the 3 4 mill) we will wait till October. [JAF] What do I need from you A couple of things. I need to get the look and feel done and finished by 15 th June. I can take care of the programming side but I need help on the look feel. I agree with you that the site is really dull and dead. But I need to see something that I am comfortable before I can write the existing version off. If we are thinking about going live in mid June, there is not enough time to wait till the programming side is finished. Both of these have to run in parallel. Given the number of iterations we had to get where we are now, I think we need to start sooner. Can you give me something that is really earth shattering by that date? I will give you trouble since I know what I want but I still dont have it. Once again my key words are Creative Chaos, Life, Vibrance, Originality and Creativity. I see all of that in the first page on www.avicena.com. But as soon as I go inside it goes away. So one word HELP.
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From : Jawwad@avi cena Se nt: 07 Jun e 2 000 12 :08 pm T o : T MPGr o up ; Frie nds ; Profes sor s ; S u b j e c t : Up d a t e f r o m L A L A L an d
Hi there. Thought you would appreciate an update from LA LA Land. Three weeks since commencement and I am putting my b-school education to good use. We have settled down in Orange County, signed the lease, found a day care, bought some furniture, moved in to the new apartment, got DSL installed, got consensus on strategy going forward, got sign off on the implementation action plan, became a member of Costco and saved (or spent) a fortune (depends on how you look at it) at their warehouse in Fountain Valley. You know that you have completely shifted to the mindset of an entrepreneur when your bedside reading comprises solely of office supplies catalogs. I even put some money in Staples stock (outstanding year selling red ink to startups). The day begins at six or sooner if Amin (our son) wakes up and ends at midnight. 90% of my time goes in managing the relationship with Aleph (our incubator) and ensuring that we stay on schedule for the roll out in July. When I started working I thought I would have the time to focus on product development, but that has now been relegated to late nights and early mornings. Important lesson: take yourself out of any sensitive schedules and primary responsibility for serious deliverables. Building and/or running a business is a full time job and you simply don't have the time to do anything else The hunt for lawyers continues. Still processing references but don't have the same level of comfort that we have with Deloitte (they agreed to work with us for a while and are now waiting for the next version of the business plan and the site). Private placement is still on schedule for mid/late July. Two
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serious angels lined up, plus family and friends, plus Aleph. Any advice on the execution / legal side of placements would be highly appreciated. Have identified the first customer and started talking. Found them hidden away in Aleph's list of clients. Important lesson number two: Look around your existing relationships and you will find what you are looking for. Important Lesson number three: Keep your mind open to unthinkable applications of your product: You would be surprised at some of the thing people are willing to pay for. Another interesting thing happened. I am not sure how you would react to this. As a group we decided to take our last 15K out of the bank and into the market. We did this in school as Moral Hazard: When you have I manage the money and spend four hours a nothing to lose, you are willing to take bigger and bigger risks". Interesting to experience it first hand. week ensuring that it stays liquid and doesn't evaporate. So far it has been a thrilling experience. (I don't need caffeine any more, just the opening half an hour at six thirty and I have had my full days quota) Every day the opportunity gets bigger and better. The only problem is that I have two hands and 24 hours in a day. Desperately looking for hired help, willing to work for options and/or minimum wage, relocate to Santa Ana and live on sunshine and faith. Let me know if you find some. Take care, Jawwad
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Takeaway
Partnerships: irrespective has a right and a strategy will have of to to An the equity size of ask partner his his to is be a partner stake. on a He on ownership opinion create
questions,
briefed
express with
your model
decisions. You must respect that. problem respect,
If you think you
where you can work without capital partners More on expectation management: If you dont manage
expectations some one else will. Bottlenecks: to be a unless needed you and As fix an owner and As / founder owners us goal your you are a destined being a is are
bottleneck it. it because useful. with or
will
remain we to
bottleneck important,
enjoy feel
bottleneck
allows your
But
state
(Nirvana) You
when nothing depends on you and everything works like clockwork without presence. ready to grow up as business when that happens.
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Chapter Six Hiring

In job the first six months with after Aleph, signing we made Prior the six to
incubation offers. I for Avicena, talent tight people offers
agreement All had my were been team firm it was at
turned
down.
responsible at in Andersen Pakistan. once
for World
hiring Wides in find out This to put
representative markets you they
Though we
always generally
difficult
liked, were
Andersen,
accepted.
rejection business was new. In most In small people a to businesses who gauge in our and would the any or make new ventures, dream it you was or you see term You me I be that
wanted own. dream could, an
your of
their
short
30-minute
interview,
difficult
success to
transfer When it to
adoption money on Most
candidate. raise wisely
ability table
became
issue.
candidates the
asked
something sheets, before else a up took (meaning was while they
(commitments, bank taker; ride. until could to committing. It I It
funding, would were there we) just to
financing, think the this demon a for a very few about risk paid and out
balances) everybody took did,
figure a
every
rejection by raising
personally. million
ended
becoming
that wanted
only
exorcised
dollars see
prospective
employees
before
their leap of faith. Our first one. break Didnt came want with to work Ashar. with us Employee because
number
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of
the it
dream. he was and he me was
He bored
just with and
wanted what wanted with me a he
to was do of be his to to
move doing life. mine, fair, they that was and to a find
over and It had and were his few For and
because where helped worked had make an him
leading had
something
different
meaningful been of it on was before, sense others join of outline code another knew
that with opt
student adventure
impish To to an just
that
would
for
challenges
whenever seemed that death paper a
offered. more him it than was
willingness thousand
something
little
lines
wish.
opportunity
define himself. Quickly restless Sharleen would eye on ensure after MBA and Ashar a firm Ashar and content came job in formed for Sharleen, at a Karachi. the our core another Together, team team, that an and and keep
with
desk
multinational
pharmaceutical produce Aleph that
courses,
Appsys
technology
priorities
were
communicated
managed between California and Karachi. Because defined Karachi. three he both and of our prior for had relationship, except and to to I had be mind think help that no the in sync over and of kept seven
role We a
Ashar a
designated connection would of
troubleshooter also that make half allowed it and us
problem-solver Vulcan be I would the effective
strong
continents. a work 20
happenwith hours
instant
messaging us up
schedule
and running
a day,
days a week.
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From : Jawwad T o : Ash ar Z ai d i S e n t : S un d ay , J u n e 1 5 , 2 0 0 0 4 : 08 A M Subject: Mo re moti vation
As always its great to hear from you. Send me your home phone / cell phone number. give you a call. Things are pretty good at this end of the planet. So far I have lived in three continents and on the shores of three oceans. The other two (oceans) are just too cold for my taste. Work is slow as I told you. It is tough working with just me. Glad to hear that you finally made the move to Arooj's team. How are things? Had an exchange of emails with Ammar and heard that as always things are not good. No debt just equity. But I am probably risking the remaining percentage of my friends and family who are still on speaking terms with me by putting their money at risk Costco is a big retailer in US and Europe. You have to become a member and shop at their warehouse and you get whole sale price for top level brands. So 24 cans of Mountain Dew / Pepsi cost 3 dollars which is 150 rupees. Which is 6 Rupees per can (330 ml). Van Heusen dress shirts are 12 dollars (which is like damn cheap) and so on so forth. The complete deal is content generation, processes, technology and distribution for the education and professional development market. Last time I checked it was worth 700 billion a year. I would settle for .1% of that. One of these days when I am rich enough I may actually
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Don't go any place. How would you like to work with me NOW. I will even pay you in dollars or better yet in options? Of course this means that you are staking your livelihood on your ex boss and teacher. At the end of three years you will either never speak to me for the rest of our lives or will have enough to pay for b-school out of your own pocket. Or both. Let me know if you are interested in giving it a shot. If you are then we have to work out a really long term strategy of getting you here. Jawwad The quote indicates that you now have a much more positive Take care outlook on life.
From : j a wwad@ avi cena T o : Ash ar Z ai d i S e n t : S un d ay , J u n e 1 6 , 2 0 0 0 4 : 0 0 P M Subject: Mo re moti vation
Give me a time when I can reach you at home.
We should talk on the
phone. I think the plan will answer most of your questions. 1. It would but not to a great extent since changing the course outline will also change the CPE's you receive for it. This segment is only our first target market. At a later stage we would be looking at additional markets. And then CPE would not be a binding constraint 2. Me, Fawzia, Sarwar Mushtaq (Aleph Inc), Denise Davies (Aleph Inc). We are planning to raise additional money in the next two - three months and the picture will change again. Also negotiating with two prospective employees to join us. For all practical purposes you will be employee number one. For the moment I and Fawzia are the majority owners
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3. Don't get too hung up on the job description.
Within a startup setting
they change every minute. Although I see your primarily role in that capacity in the next six months or so and even later you would probably have your hands in everything (all the way from cleaning the closets and running errands, testing the interface, to hiring and firing people) 4. This is the most important point. If you do decide to take this mission, there is a 90% chance that it will self destruct in less than three months. Then you, me and every body else will be on the road. There is a 10% chance that we will all be around in the next six months and there is less a 1% chance that will go public in the next 4 years. You need to have the flexibility, the profile and the mindset to handle this risk. 5. When can I get you to the US? Once again a lot will be determined in the next six to eight months. There is a chance that I may ask to stay back and help us in building the organization in Pakistan. There is also a chance that we may ask you to move to Dubai and spend anywhere between six months to a few years over there. If things work out there would obviously be a number of trips to the US. There is a really small chance that I will ask you to come to the US in the first year. But second year onwards. who knows... So think of it like that. 6. The safest thing to do would be to work on a part time basis till things are ready to fly and you can then leave SHMA. When I say part time, I am thinking 10 - 15 hours a week till we get things moving and then it will be 18 - 20 hours a day. Time frame will probably be 2 - 4 months. This would also give you a deeper idea of what is it that we are and what is it that we are upto. How volatile I am on a day to day basis and if the work is as exciting as I made it sound... 7. You would primarily be an Avicena employee. But on the interfacing side, you would be talking to Fahad and Aleph in Pakistan...
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8. Yes for the time being we are all working from home. 9. One of the first things you should do is get a US visitor Visa on your passport while you are still a SHMA employee. The ability to move quickly to the US even for short periods of time is valued a lot. 10. If there is a move to Dubai or the US the rates would be revised. If we get significant funding the rates would be revised again. In the first six months think of it as investing yourself and your time in an opportunity. Beyond that think of it as believing in me to pull it off. Its like a vote of confidence. Jawwad, I am jumping in the fire for you, don't screw up my life. Don't think of the amount as reflective of your abilities. You are obviously worth a lot more and I know that... 11. Here is the interesting part. If you do join and do decide to stay and do come on board full time and stay on for three years (and the magical number again) you start with owning .5% of the firm Doesn't sound much but if you consider our current valuation of 10 - 30 million dollars it could be worth anywhere from 50K to 150K 2 - 3 years from now (in US dollars do your own numbers) 12. Yes I do need your resume... but you are hired the minute you say yes. No interviews, just commitment & faith. 13. Next step. Go over the business plan in minute details and send me your comments. I had to take the numbers out since it adds up the size. 14. This is very hush hush. Not a word to a soul. Just talk to your parents and may be your friends but not a word beyond that. And if anybody tells you, you are out of mind on taking this up tell them they are absolutely on the mark. Take care... happy thinking.
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From : A shar Zaidi T o : J a ww ad S e n t : S un d ay , J u n e 1 7 , 2 0 0 0 1 :0 0 P M Subject: Mo re moti vation
It is amazing how slow life can be for a couple of months and then suddenly take off to the 7the moon. 1. My answer is 'yes'. I'm ready to join. 2. The money sounds fine. I'll start work now and if you have cash flow
problems, pay me later when they are sorted out. I know you'll be fair, so thats OK. But you'll have nothing but my word to determine how much time Im putting in and how much I'm billing you!!! The .5% of share of the company sounds exciting. Is this something you plan on offering to all employees and will I become a share holder immediately after joining permanently or after 3 years?? 3. Your description of the job makes it 'versatile' hmm cleaning cup-boards to hiring and firing. Interesting. I understand that things are fluid and will take time to stabilize and that is when 'roles' within the organization will become concrete. Ashar
From : j a wwad@ avi cena T o : Ash ar Z ai d i S e n t : S un d ay , J u n e 1 7 , 2 0 0 0 3 : 0 0 A M Subject: Mo re moti vation
Take a look at the job description I think you will find it interesting to know that I have waited (stayed up) all night for your email to arrive.
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Congratulations. Welcome on board. Now I really have to make it work. On the equity side, half of the half is yours immediately. The remainder will vest over the next two years. The vesting period starts immediately. The only problem is that there would be restrictions on selling it to external parties and caps on the maximum price you would get from the firm if you decide to leave before the three year period is over. Let me know if you have any other questions. Things will once again slow down till I figure out what should I ask you to do as your first assignment. Thanks for the vote of confidence. Together we will make it work. For the time being don't let the news out. Have a chat with Fahad about what is it that we are trying to do but ask him to keep it to himself. I am just going to inform the management team here but will tell them the same thing. Brace yourself, it will inshah Allah be a very exciting ride. Last question is. Would you prefer emp1@avicena.com or
azaidi@avicena.com? Think six hundred people in three years. It will take a few days to get that up and running but we are working on it. Let me know... Jawwad
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Takeaway
The honest truth: No one wants to work for a small Deal company with no money and possibly no future. touch, starting with employees. If you
with it. In a new venture you sell to every one you havent already, learn to sell. Hiring it sources: of Your you network need is and your be single patient. do not best Job work
source of leads, referrals and future employees. Let know what and advertisements recruiting agencies
for young businesses. Hiring Motivators: change and People switch jobs Not because money of or Hunt
boredom,
desperation.
opportunity or the chance to change the world. for passion in boring places. Ask the right questions. Listen. Be honest and say be so; fair: if you If will to you not work work pay with
old on
technology so. And if
salaries you,
time say so; if you want them to clean cupboards say they still want with hire them and take care of them.
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Chapter Seven - Pre Launch
It
took
us
eight was it
months built
from a
the
point
that to it
the the in for not
technology time alpha shared that functional internal it
and But had
demonstrated commercially once rolled but we it had we had
became we the
viable, out
solution.
(meaning quality with
assurance outside
still
world),
started
showing our stuff around. Pre launch in 2000, and was also the one of the most was was the logo and protracted from with with of to plan made a
stages March site work Fahads
Avicenas when
short first
life. demo engine there done: for
Starting working business move
knowledge-manager front-end had to design, be
lot
that
revisions, California, site business recruiting, purchases. responsible the above. end not their would easier done. Identity spent a and
executive sample cards I for Aleph and my add
summaries, letters,
courses and
initial
testing, design, hardware army all of of printing,
content,
marketing hiring,
stationery hosting, the and good to out
became tracking and did any them
one-man completing took work
Appsys
ownership tech
initially, in-house It to was be
reinforcing
view
that value sort
keeping what
Avicena.
letting
needed
image of
design time. I
was
one
area
where a
we
lot
had
been
strong
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believer I got to had
in
the
power and
of the
brand two We
identity had we to
before Don the not get
school right
courses
with would
further
reinforced up-front
it.
branding
because
get the opportunity to revisit it later. I never expected There it to be a fairytale bouts shouting and I were of and it
wasnt. irritated and well the three as a of
were Sarwar, and in to
hiccups, systems, Denise, though our
acne, very at All that
digestive team factor us went
matches, issues
tantrums. a project
gelled they
there level, pains
management great
didnt
become
personal
chemistry. to ensure
our mutual relationships stayed positive. Every would the know time write to that it I a would short them was blow note in a fuse to the SM on and and in Karachi, Davies let I on
side
keep
loop
them
raining
brimstone
Karachi
but clear skies prevailed in Santa Ana.
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From : Jawwad To: SM; D avi es; fahad; mk; fawz ia Se nt: Th ur sd ay, July 17 , 2000 1 0:2 4 PM Subject: www.avicena.com
1. Please sort out the login issue. It has been more than four weeks since I originally pointed it out and recently informed Denise as well as Fahad about it. We cannot get past the first security screen whose official user id and password is (Avicenna, avi2000).
FIX IT 24
2. Please do whatever is required to sort out the server issues. Its becoming a joke now. I have been hearing about server issues ever since we installed the Servelet Engines. If there is something that needs to be done, do it or get it done. Don't keep on sending emails back and forth.
Use the PHONE .
24
Building technology and commercializing it are two different dimensions. Now that we had content and friends and family looking at our offering, there was a steady stream of errors, bugs and feedback coming in. From a marketing point of view the last thing you wanted was the application to crash during a customer demonstration. From a quality assurance point of view we had been working with the technology since January 2000. Six months later it should have worked but it didnt. You could live with that, what you couldnt live with were bugs that were fixed but would show up again, that werent fixed despite being identified months earlier and show stoppers that would stop users at the front page (e.g. login errors) and not let them do anything at all with the site. One of the problems being faced in Karachi was the absence of a dedicated Project Manager (PM) on Avicena who could track what was happening. Aleph assigned two separate PM one after another but their non-Avicena workload made them ineffective. It was only after Ashar (see the hiring chapter) joined full time that this picture started improving.
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3. My understanding is that the site
WILL BE
up and running (New
version, look and feel and bug fixes) by this Friday. Please confirm that this is the case. If its not then give me a final date. 4. If there are any issues with any of the above, I would appreciate if I am informed immediately. 5. So far I took a backseat since I assumed that technical management of the project will be taken care of in Aleph Pakistan. I am extremely dis-satisfied with performance on that side. The only result of that move is that we have seen no progress at all in Avicena's work. If you feel that this statement is incorrect, please feel free to correct me by pointing me towards a link that works and has implemented all of the changes that have been suggested since early May. 7. If you have work that Fawzia needs to do, please send very very detailed instructions and follow up on a regular basis. Fawzia's speciality is not NT configuration. If you can manage it from Pakistan, terrific, if you can't, call her up and walk her through whatever it is that needs to be done. 8. As you can obviously tell, I am really upset. So for a change, do something to pacify me. I am not at all interested in a conversation. Show me some action and show me the site. Jawwad
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S i d ebar: Email Effe cti ven e s s D e s pite the role techn o lo g y ha s p l a ye d in m y li fe a n d t he tech focus of my is jobs to for and my use c o m p a ni e s, the y ou r p h o ne p o in t is E ma i l my or humble a m o re or f or r e c ommendation p e r sonal e n s uring that al w a ys g e ts
me chanism
g e t t i ng
a c ro s s fine
some th i ng
do n e .
s h a ring information, c on n e c ti n g, a n d s tay i n g i n t h e l o op . F o r real work use the p ho n e or us e y ou r f e e t a n d h a v e a o n e -on-one meeting.
Fr om : Aq eel Kh a n To: Jawwad ; SM; Nadeem Ah med ; Moh sin Kh waj a ; D eni se Davi es Se n t : Fri d ay , J ul y 2 1 , 2 0 0 0 3 : 04 A M Sub je c t : Avic en a
Please Check Welcome Page For Avicena (With New Mouse Overs) http://www.alephinc.net/avicenanewlook/welcome.htm Aqeel Khan
From : Jawwad To: SM; D avi es; fahad; mk; fawz ia Se n t : Th ur sd a y, J ul y 27 , 2 0 00 1 0 : 2 4 P M Subject: www.avicena.com
Fahad can you please take a look at why www.avicena.com throws a Directory Listing Denied. This Virtual Directory does not allow contents to be listed error. And let me know when and how it will be resolved. Apparently NOBODY else gives a shit. Let me know if you need access to any resources.
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From : Sarwar Mu sh taq T o : Te a m In Ka ra ch i S e n t : Fri d ay , J u ly 28 , 2 0 0 0 9 : 2 6 A M S u b j e c t : Re: A v i c en a
AM
REALLY
NOT
IN
THE
MOOD
TO
START
MAKING
MORE
UNPLEASANT CALLS TO KARACHI. CAN WE PLEASE GET OUR ACT TOGETHER???????????????????? 25

From : Jawwad To: SM Se n t : Th ur sd a y, J ul y 20 , 2 0 00 1 2 : 5 0 A M S u b j e c t : Re: a v i c en a l o g o f i n a l
I am really big on symbolism. To my untrained eyes it looks and feels like a typical Ayn Rand-ish character's bid to reach the star (albeit a red one). Can't help the romantic tendencies 26. BTW I am talking about AV3.gif where you start thick and end thin. Nadeem just called and asked about look and feel. Did you guys connect?
25
When Sarwar threw a fit, he threw a fit. Mercifully for us, the brunt of these raging storms was borne by Alephs Karachi team since Sarwar took great pains to ensure that Avicena team hosted in Alephs Karachi premises always felt at home. 26 As with names, we went through numerous iterations on the logo front. The problem with design is that irrespective of how you express it, you can only tell what you like when you see it. This means you end up doing three to fifteen iterations before you hit something that works. And then you tweak it.
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From : Dyl an Steeg T o : ja wwa d f@ ale phi nc . com Se nt: Tuesday, August 08 , 2 000 6:21 PM Sub jec t: Re: SA MO
Jawwad, Yes, I started @ Intel Capital last month. Learning lots, have no time, but having fun. I look forward to the launch email and hopefully {like all great start-ups} you will have an enormous launch party in order to squander 33% of your VC's invested capital in one swoop. Sorry. Fatigue setting in. I hope that all is well with your family.
From : Jawwad T o : Fr ed Posk a D a t e : A u g us t 2 6 , 2 0 00
Dear Fred In our last discussion you had asked us to give you a plan for tackling the actuarial segment for our online education business. The material in the next two pages gives an outline of that plan.
SOA
Survey
The Society of Actuaries recently published a membership survey. The most relevant results and implications are presented below: 49% of sample supported an effort to establish an online university that supported professional development and continuing education activities under Society of Actuaries banner.
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Members indicated a preference for Employer and Society of Actuaries sponsored events compared to events conducted by third parties and for profit companies. 21% of the sample expressed a definite desire to use online courses for professional development and continuing education efforts. 40% of sample expressed a desire to mix online courses and conferences to support their continuing education activities. Employers generally underwrite professional and continuing education expenses. As a result the target segment is relatively price insensitive between the price range of 600 1500 dollars. A price tag beyond that level would have an impact on demand for courses. 73% of the profession has access to the Internet at home as well as at work. 50% of the sample felt that continuing education courseware should focus on new and emerging issues in the practice area. 74% of the members also agreed that the choice of subject was the key decision factor in their selection of a seminar or conference. For us this has the following implications: One of the largest membership organizations in the profession has validated the need for an Internet based professional development workplace for Actuaries. A significant percentage of members have validated the need for online courses. We can increase our chances of acceptance by the profession if the course ware is co-branded by Society of Actuaries and is offered as an Employer Sponsored program.
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The choice of subjects can have a tremendous impact on the popularity and acceptance of a course. Strategy going forward 27 The drivers for the strategy are credibility and acceptance. The results of the survey have already set a direction for us. Our objective now is to enroll the full support of Society of Actuaries for our course development efforts and to get as many employers onboard as possible. Although the ultimate end users are still individual actuaries, we feel that the right distribution channel is the employers and the Society of Actuaries. The following steps will allow us to move in that direction. Conduct an additional survey. The objective is to determine membership The survey has
preference for subject areas that we are working with. step is to roll out the survey over the next four to six weeks.
already been developed and tested with a sample of eight actuaries. Next
27
This email marks a key transition in the Avicena story. Before I wrote the strategy paper for Fred Poska, I was sure that the market for our product was membership of professional bodies - defining us as a Business to Consumer (B2C) venture. Point (3) of this note marks the transition that changed our focus from a Business to Consumer model to a Business to Business (B2B) one. Just as Adrians note later on in Chapter 12 marked the end of Avicena for me, the transition from B2C to B2B marked the beginning of the end for us. From a distribution point, it would have been simpler and easier to launch what we had with Society of Actuaries and their 16,000 strong pool of members than to go after individual insurance companies, selling them on the need for training and professional services for their actuarial employees. In the end, the debate boiled down to choice of distribution channel and medium used to capture and attract customers. We dumped simplicity and added a layer of complexity that would move our time to market by another six months. More on this later. To Freds credit, being the sharp professional he he pointed out that this transition would dilute focus and harm our chances for raising money and ability to execute. is, our our
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Meet with the Society of Actuaries and present options for developing cobranded courseware. We would also discuss opportunities to use Avicenas platform and technology to leverage existing content developed by the Society of Actuaries. Follow up would include approaching additional international membership organizations in United Kingdom, Australia and Canada. We have already established contact with the Society and are in the process of arranging the first meeting. Meet with mid size reinsurance companies and present options for developing courseware for in-house training programs and clients. In case a program does not exist, we propose the establishment of a virtual training center to leverage existing content and training programs. Client Actuaries and Underwriter training is a significant value added service provided by reinsurance companies and the virtual training program is a very costeffective way of providing that service. Reinsurance firms are the most efficient distribution channel for rolling out our product to the insurance industry. A mid size reinsurer has a portfolio of 100 500 insurance companies who would get exposed to Avicena technology and courseware, when the reinsurer signs up with Avicena. Create visibility for Avicena by attending seminars targeted at Valuation actuaries and Reinsurance actuaries. We are now covering all the seminars offered before the Society of Actuaries annual exhibition in October 2000. We feel that the events are an excellent networking opportunity as well as a chance to show off and get feedback on our products. Use the Society of Actuaries annual Exhibition in October this year as the official launch date for our course offering. I hope this answers some of the questions you have had in your mind. look forward to seeing you on Tuesday, the 29 .
th
Best
Regards.
Jawwad Farid
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From : Jawwad T o : Bar b ar a @ s o a. or g 28 Da te: 27 August 200 0
Dear Barbara Thank you very much for your email. As requested I am enclosing some
additional information about Avicena LLC. We are a year old online education startup that teaches Applied Finance on the Internet. Over the past twelve months, we have developed and refined our teaching methodology, our online learning environment, our course generation processes and our technology that allows our customers to generate customized courses on the fly. divided in four major tracks: a. Derivative securities and applications b. Stochastic Models c. Asset Liability Management d. Intersections (A compilation of selected courses that build on principles of Financial Economics, Investment & General Management. Examples include Applied Strategy, Value investing & Fundamental analysis) We founded this company because we believe that: Our planned course offering are
28
In August 2000, three months after our move to California we made contact with Barbara who was more than receptive to taking a look at what we had to offer. Our response we will get back to you later. If fate is kind enough to give dont slam the door in its face. you a chance, please
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As the paths of banking and insurance industries merge, there will be an increasing need for course ware that transfers the ability to apply new knowledge and skills to practical problems in convenient, self controlled and self directed environments. For professions responsible for the design of financial products, there will be a need for a broader in-depth understanding of complex financial securities and transactions. Professionals within the banking and insurance industry only have a superficial understanding of derivative instruments, stochastic models and asset liability management. There is strong and definite interest on part of the same professionals to educate themselves, but the technicality of current literature in these fields prevents them for taking any corrective action. We feel that an opportunity exists where we can create valuable options for professional development and continuing education for Society of Actuaries membership. One such option is the development of co-branded educational courseware on the Internet for continuing education and professional development needs of Society members. I would very much like to meet with you and the continuing education department to present some of the ideas that we are working with as well as discuss scenarios where immediate cooperation between the Society of Actuaries and Avicena LLC is possible. I will call you on Friday afternoon (August the 23 rd ) to setup a mutually convenient time. Best Regards Jawwad Farid
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Fr om : Ja ww a d@ Sch oo l T o : D yl a n S te e g 29 Sub jec t: Re: SA MO Da te: Fr i, 8 Sep 2000 17:02 :37 0700
Dylan Here comes the awkward moment. We are still trying to go live in 10-15 days (yes, it never ends.) But at least the site is at a level where we can start showing it to people without undue embarrassment. Three favors 1. Its still in Alpha (beta to follow in 10 - 14 days) but you will get a link emailed to you sometime in the next one week 2. I will also send you a 2 page exec summary. 3. I need an introduction within Intel Capital. Would you be in any position to help out on that side? 4. Is there anybody else within the institutional VC side that you think would be interested? D&T has agreed to accept us as a formal client. They need to do their regular due diligence before the process is completed but they have agreed in principle to do it. They have also introduced us to a law firm they work
29
Dylan and I had already worked together on the strategic positioning and benchmarking paper for Avicena with respect to its competitors. This was our last class project in the strategic management course taught by Ralph Biggadike. Besides strategy, we had also shared a group in Turnarounds with Laura Resnikoff and had become good friends. Given his role at Intel Capital, he was a natural choice as a peer reviewer for business plans, projections, and investment memorandums.
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with (Paul Hastings) and have agreed to shop the biz plan around within the angel community in Southern California. I am in NYC these days checking out competition and talking to some potential customers but I should be back by the 19 th of Sep. Let me know if you need any additional information. The business by the way is online education and we are targeting finance for professionals and practitioners. It would be nice to get Intel onboard as a customer also. Take care Jawwad
From : Dyl an Steeg T o : J aw w ad Se n t : Fri d ay , S e p te mber 0 8 , 2 0 00 2 : 20 P M Sub jec t: Re: SA MO
Jawwad, Good to hear from you. There are two areas of focus within Intel Capital which I believe you may or may not fit within. The first is Services, and the second is E-Business. I'm leaning towards the latter, but am not sure. Let's talk this weekend. be right in looking at this. The tricky thing is, Intel Capital typically wants to see a new technology, ability to increase the demand for chips, or a high-chance of return. I know that you were working on a new way to aggregate and provide content. Perhaps we should focus in on this ability, and use the education focus as its first application. {Writing while thinking}. I'll call you. I'd like to see your latest executive summary and
proforma. I can start looking @ the org chart here and find out who would
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Dylan
From : Jawwad@avi cena T o : D yl a n S te e g S e n t : S a t ur d a y , S e pt emb e r 0 9 , 2 0 0 0 6 :51 A M Sub je c t : Avic en a
Dylan This is where its gets confusing. Even I am not sure where we would fit in with this classification... May some background info will help How do we see our selves? We see ourselves as a business that produces courses on applied finance (How to do Proforma Projections to Asset Liability Management to Portfolio Construction to Interest Rate Models and Derivative Instruments). There are two sides to this business. The first is content generation where we feel we have an edge due to the non-traditional and unconventional approach to teaching that we are taking. Our learning experience is a four step process. a. Introduce terminology and notation (break the code, understand the language), b. Introduce basic principles, c. Walk through applications and d. Provide feedback on performance. e. Add an additional layer that allows customers to generate custom courses to learn what they want and you have a powerful combination The second side is marketing the stuff. The first target market (proof of
concept) that we have selected to work with are actuaries and corporations with structured and unstructured training programs. If the program exists we are a supplement, if it doesn't we are a very powerful alternative to existing
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options.
Once the product has been tested and refined, we scale it up to
universities and distance learning programs (think of all the junior colleges with dreadful finance professors and the processors they would have to buy to support this venture). The key thing is to position this as a supplemental choice rather than a competitive threat or alternative How does it fit with Intel chip making business? I primarily see this as another application that pushes more people to spend more time with their computers and on the internet -demand for servers & hosting services Are we services businesses? I am not sure since traditional definition of service implies fixed costs and overheads and manpower and labor. Yes there is an aspect of all these within our venture, but once the content is up and running, you can recombine it, repackage it and resell it as many times as you want. Which is one reason why we believe that this will be a very profitable venture once we get beyond a critical mass of courses that can be licensed on an annual, per seat basis. The exec summary is ready and available but the numbers are all out of date. I would need to spend some time on that before I can send that you. But the link should be with you before the end of next week. In the mean time if you have any questions at all, please feel free to email me. Take care and thanks Jawwad Broad based Internet Application --
From : Jawwad@avi cena To: SM; Deni se Davi es; Fawz i a ; A sh ar ; N ad ee m; N a u sha d S e n t : W ed n e s da y , S e p te m b e r 06 , 2 0 0 0 5 :28 A M Sub je c t : Avic en a
Ladies and Gents...
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The site is up at www.avicena.com. The user id is denise, the password is denise1. Please go through the first course called corporate finance We have all put in a tremendous effort into this between January and now and have made really outstanding progress almost on all fronts and have also learned a lot about how this would come together. All the stuff is out there. But ... Notice there is always a but. There is still a lot to be done. Naushad is facing a resource crunch and needs more people to meet the deadline, I had a long conversation with him and his initial need is two developers with Java experience and expertise. According to him the resources do not exist within Aleph. I have asked him about the COCO team and he is not sure if there is anybody there that he can use. We now have two questions. We have the site. We have the first course. There are some packaging issues and some stuff left over that is being taken care of by Naushad. Between Ashar and Sharleen and Mohsin (employee number four), these will be worked out over the next two weeks. The big problems for us are the following issues: 1. Since this is the first time the site is working with a full course we are getting a lot of feedback on User Iterface issues. 2. Course input has been a total nightmare without an automated way of entering stuff inside and that brings us back to the backend question 3. Testing engine / part is also critical for moving forward and getting customers on board.
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How do we want to work with these issues? I know that the answer in our minds is to lets get funding and then sort it out but it will probably create more problems in this case. We have created a lot of momentum in the last two months and putting a hold on the project, may just as well kill it. There is a time to market issue here also and an urgency to get more customers on board. direction. Please let me know how we want to proceed on this. I will look forward to your comments. Take care I also feel that we are now within an arms reach of something really big and stopping short will just push us in the wrong
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Takeaway
Inspiration: journey. unexciting. is no beef. Anger Management: There has not been a single Inspiration follows Without the is just is and the beginning boring part of a What later dull dull, boring and there
occasion in my life where I have looked back and said losing my temper was exactly the right move at that time. DO NOT LOSE YOUR TEMPER. Sales long. cycles: There is Business a big to business in sales buying cycle is
difference
something
for yourself and buying something for which you need corporate and official approvals. You need to start selling long before your product is ready. reduces Ideally yours pre-selling and his and he a product You has an to a customer one to to risk. have some
underwrite
expenses
opportunity
preview things before they are set in stone. Validation: Pre-sales also provides an opportunity to validate your idea at a concept stage. Ideally look for market validation for your core selling points. For the e.g., email the Society of Actuaries us a few survey quoted in
above
saved
thousand
dollars
because it delved deep into the minds of our initial target audience, asked and answered questions that we wanted to get answered, as well as created credibility in front of investors.
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Strategic shift: Do not change a simple strategy with a more complex one. Do not let go of a quick win that will get you in front for of customers and closer complex to or generating revenues something more
longer term. Small wins first. Touch a customer: (no the An opportunity how small) to work with a be or
customer perfecting
matter
should your
always strategy
preferred over an opportunity to work by yourself on product, perfecting improving your valuation.
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Chapter Eight Process
: Product Development Team US Identifies courses for target segments Draws out course outline Market Tests outline
Quality Assurance Team US Approves outline for submission to offshore content development teams. Quality Assurance Team: Offshore Approve content for submission to knowledge base.
Standards Team: Offshore Ensures that content generated follows guidelines for copy rights, flow, ease of use, applications, formats, etc
Content Development Team: US Generate objectives for the course Identifies resources with relevant backgrounds Generates course definition Set atandards for the outsourcing team
Feedback to Offshore and US Teams
Content Development Team: Offshore Fills in course definition
Direct customers and relationship partners
Knowledge base of concepts and courses
Distributors and alliances
At
the
heart in
of
our and
business we to QA
model had work
were to put
the in
content place
generation Karachi we & and we QA were
processes set U.S., only up &
California. Content afford
Under with U.S.,
ideal four In in
conditions, Offshore, reality,
teamsProduct
Content here
Standards
Offshore. twome
could
the U.S. and Ashar and Sharleen in Karachi.
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Since out time teams
we in
still it making
had
to
do
everything to we then got even
we the
had a
laid
above, If short
made sure a
sense that
invest
little process four
right.
that and
worked,
with
hopeless
resource
situation
we could still deliver something. The only was emails for hint section different for components needs This that on and at the published
30
included a at few in one from and in the of
in
this
section this why is where
are the I The into based a
important actually
reasons. entire the its then MIT
First reasons
book,
Avicena
competition. knowledge down it recombining came DNA Sloan or It on
inspiration atomic on paper the user
breaking and
requirements structure described. us an to
from is
Management what this custom fly, was email work. build what 40 Meyer feel was the that it to
Review . structure courses real
atomic email
first based
allowed create that
create
individual time.
needs The to in for
time
offering make the us
unmatched describes It was section with the less
second
mindset made than it a in
required outlined possible million do
processes
following
that
dollars, more Thank too you, tedious
competing million and Zack.
firms (If
couldnt content
with
than
dollars the
funding. gets
free to skip it).
30
The design and Sloan Management Zack, H Z.
development of information products, Review, Spring, 1996, Meyer, M H &
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From : j a wwad@ avi cena To: Avi cenaKar achi ; Aleph K ar ach i ; SM; De nise; S e n t : S un d ay , S e p t e m b er 1 0 , 20 00 8 :1 3 P M S u b j e c t : C ou r s e G en era ti o n A s h ar a n d S h ar l e e n
Please work within this process for all future work on the courses side. Let's take a step back from the course on ratio analysis and see how we can proceed using the following process. Once we have done that, we can go back to the text and use sections and chunks of it in the concepts that we decide to teach. These are just guidelines that I had developed working on the first course. They need to be formalized and improved and if anyone has any suggestions about what needs to be done, please feel free to let me know. Jawwad Process for generating courses 1. Create outline in the standard definition format. The standard definition format is a. Notation and Terminology b. Basic Principles c. Applications Feedback (Questions & Answers, MCQ's, Examples, Additional Cases) 2. Pass the outline back to the course generators for initial review and feedback. Add more questions, materials, comments, items, etc to the outline and the standard definition document. Take care
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3. The outline serves a key purpose. It is a blue print of what we want to teach. What is it that we want the customer to walk away with when he is finished with the course? What is it that he will retain when he is done? 4. The key is to remember the objectives behind each section of the standard definition format. 5. Notation and Terminology are only meant as introducing base definition and material. These items are generally too basic to warrant a full course or too simple to be covered as a standalone concept 6. Basic Principles is what you want to teach. What are the six things you want the person to remember, retain, and learn at the end of the course. In the first few iteration the focus should not be on generating content, but more on identifying and designing the course objectives and figuring out what is the best way of covering that material. As the course outline get more defined and we are able to identify even smaller concepts that we would like to teach, we start focusing on what is the best way of teaching the material 7. Our objective should be that courses should always be taught by example. Avoid long unbroken chains of text that elaborate on definitions and concepts. Always engage the customer with an example that he can related to and follow in his head. This is the best way of teaching. People tend to get lost in the abstract 8. Application. Application will always be a comprehensive walk through case that lays out what needs to be done and brings together the material covered in Notation and Terminology and Basic Principles. This is really important. If it didn't warrant an inclusion in the case, it should not be there in the first place. On the other hand if its important enough to be included in the preceding material, it has to be illustrated in the case.
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9. Sometime we may need two separate cases to cover all the concepts covered in a course. When this happens, we need to be more careful about how the course is structured. The best possible solution in such a situation would be to break the course in two parts 10. Finally remember that the customer has to have a sense that he walked away with something. That he achieved something and learned something. This has important implications for motivation as well as the optimal course length. Once the standard outline has taken shape, we can go ahead and start filling in the content. However it may be advisable to repeat the same exercise for the concepts at a lower level.
From : j a wwad@ avi cena T o : Avi ce na K ar achi , Al e ph K ar ach i, Da vi e s, SM; S e n t : S un d ay , S e p t e m b er 1 0, 20 00 5 : 4 2 A M Subject: Re: cour se 2
Sharleen I read the material once again. More suggestions. 1. First, please don't look at this as criticism. These are just point of views that I have developed over the past six - eight months and Ashar has also experienced them on a first hand basis. This is not a reflection on your work, just guidelines for all of us. (have some free time now since one of my appointments got cancelled.) 2. Before any of us write content we have to imagine who is the ultimate end user of our products and under what environment will he be using our courses. Our ultimate end user is someone between the ages of 25 - 50 years, who wants to learn something new and different and would like to
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use the net to do that. There are a few scenarios that you can play with to put things in perspective a. He is probably working late at night or early in the morning, is probably working with a lamp light in a dark room that is forcing him to go to sleep. So you have two enemies. He is tired and he is sleepy and he is somewhere that is literally screaming at him to drop this and go to sleep. How do you keep him up? You can only keep him up if you keep him engaged. If you talk to him and ask him to do things or throw things at him that are interesting or relevant and that he can associate with. So we post questions about what is the right price and how can you figure it out. Or here is a puzzle; try and solve it. Or even present things at an intuitive level (Stop reading. Try and think this through before you move forward.) b. Scenario b is even more complicated. Now the same guy is working from office and needs to learn something in a hurry either for a meeting or a conference call or simply because he has to understand this before he leaves for home. In this scenario its important that we use a different approach. What are the seven key things he needs to know about ratio analysis. Why is it important? How does it make sense at an intuitive level? What is the shortest and easiest route for him to understand these? Once again engagement is important because it gives him a sense that he is picking up something. It also allows him to focus on doing something rather than reading it. What is the bottom line? 1. Think of yourself when you are tired, sleepy or in a rush and then think. How would I react to what I just wrote if I was in that state of mind? What can I do to make it more attractive for myself? 2. Don't use definitions. Use creative ways of showing people what you mean. If you have to use a definition don't go beyond a couple of words (one short sentence is all that you can play with)
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3. Use lots of examples and opportunities for engaging and interacting with your customers 4. Use real life brand name exciting examples and real data. God knows there is enough out there 5. Keep it simple, concise to the point and attractive 6. Be very very very careful of copy rights issues. Let me know if you have any comments or suggestions. Take care Jawwad
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Takeaway
On Process: Whether it is quality assurance, productivity, or a decision to scale up, there is one common denominator that determines how good a job you could possibly do. That denominator is process. the process and everything else will fly. process and thou shall wilt, wither away and die. Do not fall in love with your process. Fix Ignore the
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Chapter Nine Launch
The a
ides
of pump
launch. me full to a
Take of
me
away I
from
sleep
for
a week, jet
Mountain
Dew, put never
me on been, my
plane
city
where my
have
dent my luggage, book me a room in a lousy 19thcentury cards, decline and The then only I hotel, crash my my key I overdraw server, me. That left account, my or visa are to the cancel ignore more out instructions, application, less sums its it. obscenities PG-13
presenters
call thing want
because rating. Doesnt launch, you Aleph where Sarwar from will
this
book
retain
matter when the take
how the
much whole Karachi have
you to
prepare push down got out was no no that
for with
your you. point if very Just demo. that
time
comes
the to on
switch, a
block team warm it were and an walked
and they my
Appsys would end. no
me
hadnt
buffered But There system a the be but
the
winds
blowing venture
then
all money.
anticlimactic. c a p i t a l i s t s 31, a We I really did neat up get
customers, and few
even
neater we the check
quite would
leads
started corner
following thought
million-dollar waiting around
31
People with money who write big checks for small companies so that they can make even more money for the people with money.
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when Had I would least
it
all
came
together it
was
nowhere end and
in
sight. I at a
foreseen have a few
this
disappointing easier two the that
result,
taken in
salvaged were weeks. You you the At
relationships the level to years post
damaged
beyond more was a
repair counter able two
pre-launch launch
personal
depression were had world
intuitive show to the
phenomenon. world what but
finally slaved
produce
wasnt interested. In a pacing on sense, to your to to to launch is the and buy first to dont your left and give will threw rounds of get many it
milestones right You for or customers need you the figure right boxer out and with
come. first swarm
Dont launch and be
expect
expect over (get it be in to it all the the
over to
product. tweaked
have what
enough needs these
reserves fixed If you you who
reach
important all, nose
customers takes the
swarm). it
launch
broken
towel and couldnt make it past round three.
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From : Jawwad@avi cena To: N ad ee m Ah med ; D en i se D a vi es; SM; A l ep hK ar achi ; A le ph Bo s t on; A v i c en a K ara c h i S e n t : T u e sd a y , S ep t emb e r 1 2, 2 0 0 0 3 : 0 4 A M Sub jec t: Avic en a New C o ur se and Si te
Davies, SM, Nadeem, Fawzia, Mohsin, Naushad, Asif, Saif, Waseem, Sabeel, Ashar, Sharleen, Fahad Zubair, Fahad Shameem Thanks a lot. I cannot express my gratitude for what you have done. You have all done a tremendous job in getting us where we are today... I can't apologize for keeping all of us awake (since it is still not over) at all time of day, night, family quality time, personal time and other unreasonable demands that I have made since January but I can assure you that together we have built something that has no parallel in the world. The technology, the interface, the content and the quality of everything that has gone into Avicena has been just world class. Of course this doesn't mean that the work by any chance is over. We are almost there. Its the last 3% - 4% that will drive some of us into nervous breakdowns and burn outs. But it is the last 3% or 4% that will get us beyond and better than anything anyone has to offer anywhere in this world. We don't want to be world class. We want to be in a class of our own, a class that is good enough to change the world. Once again gratitude on the part of the team at Avicena for the support and commitment shown by everyone involved in making it happen. Bear with me for a few more years (ok... ok... months... just a few more months) and the world will come knocking on our doors. Take care Jawwad
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For those of you who are wondering what is this about it. Check out (www.avicena.com) Click on courses, click on corporate finance, and behold, We are live and kicking. Naushad can you pls make sure that everyone associated with Avicena get a copy of this email. SM please make sure that Saif and Sabeel get this. Ashar confirm that Sharleen gets a copy of this message. BTW between all of us... registration still
doesn't work
From : Bates, Ken T o : J a ww ad A h me d F a r i d Se nt: Tuesday, October 24, 2000 1 2:5 0 A M Sub je c t : S ur f ' s up
If you pull your nose away from the monitor screen once in a while, you'll find that REAL Californian's gotta know how to SURF! (not the "web", the waves!!) Haven't heard from you and miss our chats. Did you give me an Avicena password? I try to check the site, but don't have a password. Let me know, so I can take some of your finance courses or give you some feedback. Love to Fawzia and Amin (no others yet, right?)
From : Jawwad@avi cena T o : B a t es , K e n Se nt: Tuesday, October 24, 2000 8:4 7 PM Sub je c t : Re: S ur f ' s up
Hello there... I have kind of been living in an alternate reality version of the real world where there is no sleep just caffeine and servers crashing right left and center. One last minute esoteric bug has now delayed the launch of Avicena
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for more than two weeks. We finally figured out what was wrong and are working on it. Chicago went very well. Four demos lined up for sometime around this
week. Speaking to another group on the banking side of business that has customers we need. And we have the tech that they are looking for. Looks like that we may actually have that half a million in revenues before the year is out. Insha Allah... Everything else is pure madness. The user id is denise. The password is denise1. It goes up and down as we update it and test it and crash it. But its normally around. If you cant get in at all, try half an hour later, or call me. Unfortunately to become a real Californian would require that I switch from my very healthy lifestyle of going to office, working, sleeping at office, working, coming home, changing clothes, working, sleeping at home, working... going to office... working... eating at office...working............. I miss Harvey... Was in Chicago the other day 32....
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What are exhibitions really good for? In real terms the Society of Actuaries (SOA) Annual Exhibition, the launching pad for Avicena, didnt do that much for us. It set a deadline that we had to meet, which we didnt. It gave us an opportunity to talk to a group of customers and see how they would react to our product concept. Which they did. It generated a handful of leads that we tracked down and followed up after the exhibition. Did we close any major deal? No. Did we sign up any customers? No. Did we rock the world with our cutting edge technology? Not really. Did we follow up with Barbara? Ouch. Was it worth it? Yes. Participating in exhibitions is something that you have to do to create visibility, traction, keep an eye on competition as well as solicit customer feedback in a cost effective fashion. You get better at it with time and practice. Focused events like the SOA affair are recommended because they bring your target market to your stall. The rest is up to you.
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Fr om : Ja ww a d@ Sch ool T o : c l u ster x 0 0 Se nt : Mo nda y, N ov emb er 06, 2000 1 0:02 PM S u b j e c t : Up d a t e f r o m L A L A L an d : J a ww ad Fa r i d
Remember me... We are now live. The team has spent a tremendous amount of time and energy in rolling out the site. www.avicena.com has been up from 27 th October and moved into Beta 33 Testing on 1 st November. Avicena LLC, the business, was officially launched at the Society of Actuaries annual exhibition in Chicago on 15 th October. We have been on the road talking to potential customers and industry professional, eliciting feedback on the product, the technology and positioning. I wanted to share the work we have done on the technology, processes and content fronts with you. So here goes (preceded with a shameless self promotional plug)... For those of you who survive the plug, there is a Beta User Instruction Sheet at the end.
33
Quality assurance on software at programming teams happens in five key stages. A programmer writes code and tests it on his computer (also known as unit testing). When he is satisfied with the overall quality he moves it to an environment where the project team code resides. This environment is known as dev (short for development). Once the quality assurance team is satisfied with the code residing in dev and wants to target it for release, the code is moved to alpha. Within alpha code undergoes more testing but is still not visible to customers. From alpha the code migrates to beta, a customer visible testing environment where external users also become part of the quality assurance team. From beta the codes graduates to production, marking release or live environments.
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Shameless self promotional plug 34 Avicena is a knowledge management company, in formation for a year. We teach Applied Finance online and our focus is on functional knowledge what is it that you have to know to excel at work. The target market is small businesses and corporate customers that need scalable learning solutions for employees, customers and stakeholders. Please feel free to contact me if you have any problems, comments, suggestions and feedback. Looking forward to hearing from all of you. Jawwad Farid Avicena LLC
34
Notice the switch No longer actuaries professional bodies B2B language that was expected lead to a higher valuation.
or to
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Takeaway
Mind your manners: how Say many thank times you. you Say say sorry. it It doesnt matter it, will
never be enough. Disappointment: Be prepared for the launch event to
fail and disappoint you. If you feel the need to savor your disappointments, I recommend country music, nachos with cheese and a bottle of non-alcoholic sparkling apple cider. Self Pity: Do not let the wallowing period last for more than a day.
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Chapter Ten Business Development
By our
the
time
2001
began, both were a for as in
we and
had the
taken very
care
of and
technology were
hiccups in
product and
platform Content and that
maturing good grip good the
nicely. Ashar course with we as
processes had set as his
hands on
Sharleen we had
new
development Sarwar started well as a present and
well teams on more a
editorial and
standards Boston, site
ourselves. Karachi makeover polished
Together the
working new much
for and
marketing
collateral
that mature
would image
in front of our clients. While myself from was an to this Aleph was being on done, and with next it if in was I decided by projects. revenues an to refocus away goal close had we if
completely generate within to stand support
Avicena through
stepping The or
assignments cash round the and them by
investment
institutional Aleph that and,
investor started be able
quarter.
struggling
important survive, ran into
ourselves, they of worth phone
possible, times. start If they
harder would or be so. the
Two
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From : Jawwad@avi cena Se nt : 25 Febr ua r y 2001 00:31 T o : J a ww ad Li s t S u b j e c t : Up d a t e f r o m L A L A L an d
Well its time for one of those warm and mushy emails from LA LA Land. Its been a long time since I sent one of those out. Got something in the email today from my incubator that I really really really wanted to share with you. You know its that engineering / Dilbert thing look what a cool toy I bought so bear with me. Things have been moving at kind of hectic pace. I have been all over the world since late November and finally landed in LA two weeks ago. Its 2a.m. right now on the pacific coast and on a whim decided to take time out and tell all of you that New York was never as bad as I made it sound and that I miss you, the school and the city. We have finally managed to wrap up all the technology issues. Considering that I told my partners this will not take more than three months, the fact that it took just over a year is very humbling. Also found some money in the most unlikely of all places. Well technically speaking, I still havent But as a result the found it, just found a group of people willing to listen to our presentation, read our business plan and make encouraging noises. business plan is back to being the bane of my existence. We are now all the way upto version 35a. When I look at the projections in version 1.0 and the projections in 35a, I am quite surprised that the SEC is not knocking on my door. The relationship with the incubator is still very warm and encouraging. They havent started blaming me for all the evil in the world, NASDAQs current problems, the dried up funding market as well as the rains in southern California. But I guess if I keep on going at my current rate, that too will change.
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On the learning side, learned that your first most obvious and most cherished market segment is not the one that generates the most revenues first. We have gone from being a professional development service targeted at finance professionals to a professional development service targeted at the insurance industry to a company that develops courses for banking professionals. And guess its the bankers who are willing to write the check. Not the finance professionals, nor the insurance companies. Well anyhow the good news is that we are currently working with atleast three banking leads, the product is our most recent offering, a course for credit & loan officers that is equally valuable to the guys in the back office and the management committee. No, I am still not managing oodles of people. Just a two member really really dedicated team in Karachi, one really devoted and faithful CPA in LA, two down to earth interns and the relationship people at the incubator. Apparently you need serious money to pay people and besides the group above, I have had major difficulty in finding young, driven, talented professionals willing to work on faith and sunshine. If you find some, please send them my way. Now for that cool toy bit I was talking about earlier. There are two files attached to this email. The first is a plain html file; the other is a flash shockwave object. Save both of them in the same directory (any directory will do). Then open the html file (Internet Explorer will be just fine). You should see a 30 second flash presentation about Avicena. We are using this to market our product as well investor presentation. Let me know what you think. address. Oh and one more thing. If you are looking for really serious punishment, I converted our two brochures to pdf files. They are 1.8 Meg zipped - each. Send me an email if you would like to see those and our creative juices at The contact details are still the same Pacific Time and this email
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work or your mailing address and I will mail you copy. If you want you can also download the brochure from the following link http://www.alephinc.net/thi/AvicenaBrochure.zip. That is all folks. For now. Time to crash and burn. Take care Jawwad
From : Dyl an Steeg T o : j a w w ad @a v i c en a Se nt: Saturday, March 03, 2001 11 :07 PM S u b j e c t : Re: Up d a t e f r o m L A L A L a nd
Jawwad, Hey there. Gave the attachments a try, but only got a purple screen 35. Dunno. I'm running a PII so the computer shouldn't be the issue. All the best with the changing b-plan. Dylan
35
What will go wrong will go wrong. We bombed on this email. I have already written a bit about how the Quality Assurance (QA) process works in technology companies in earlier foot notes. What I have not written about is how difficult it is to find good QA resources and get a good quality assurance team up and running. Unlike programming talent, QA talent comes from a different stock and back ground and is in far shorter supply. Which leads to QA functions that are barely adequate when faced with the needs of a rapidly evolving product.
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From : Jawwad@avi cena T o : D yl a n S te e g S u b j e c t : Re: Up d a t e f r o m L A L A L a nd Da te: Sun, 4 Mar 2001 01 :25 :52 0800
Dylan My apologies. I goofed up. There is some issue of a shockwave object not downloading and I have received other complaints also. Anyhow we have now put the link on the web and you can try it from this link http://www.alephinc.net/avicena/demo.html Take care Jawwad
From : Dyl an Steeg T o : j a w w ad @a v i c en a S e n t : S un d ay , M ar ch 04 , 2 0 01 1 0 :5 5 P M S u b j e c t : Re: Up d a t e f r o m L A L A L a nd
No prob. Better to beta test with friends than prospective funders ... :-)
From : Jawwad@avi cena T o : D yl a n S te e g S u b j e c t : Re: Up d a t e f r o m L A L A L a nd Da te: Sun, 4 Mar 2001 15:04 :31 -08 00
You know the funny part is that we did test it internally before we sent out the email, but apparently we failed to cater to the fact that different people have different security settings on their machines and that the shockwave
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object will fail to load. Luckily we found out pretty quickly when some one in the first group reported not being able to run the animation. You learn a new thing every day. I hope things are going well at Intel. Did you catch the red herring coverage on e-learning. Take care. Jawwad
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Takeaway
More on branding: You can only educate the customer when you understand what you are selling. What that pace tool. things 80% of were you we selling? learn with really the The essence and of in a our pitch was
could
smarter right
more
focused
online that
learning the 20%
acceleration that covered at an d
You could further leverage this by focusing on mattered practical covered functional, was baring knowledge in required
work. And you could do this in an area (Finance) that traditionally complications, its door. Yes we were web based, than were yes we were online, yes we mystique audiences traditional outside
where and
cheaper pace. These
traditional all replicable
educational functional
opportunities and yes you could learn at our own time attributes that could very easily be mimicked by our competition. What differentiated us was how we stored information (the Zack and Meyer paper), how we made the process of acquiring the right material flexible and how we generated that content. You could a make change a in case our that even this (our
differentiating factor) could be replicated but that required stream competitions years later architecture that mindset that was not supported by industry tools or even main thinking. Seven still hasnt changed.
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What
is
the
difference deal
between and
marketing, the
business or
development and sales? Awareness, making purchase acquisition decision by a customer
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Chapter Eleven The Silver Lining or Biz Dev II
Close
to
year
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much time had passed since last October.
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Chescore referred Chescore further more had done. hoping March the Pearson as
and leads.
Pearson In as to we the last us to
were take could
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payoff
midnight
hours
everyone
had put in. It was about time.
36
Please
see
the
appendix
on
cast
of
characters
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From : Jawwad Farid To: Jason Kubic a ; SM ; De ni se Davi es C c : C ar l o s Se nt : Th ur sd a y, Febr ua ry 22, 2001 4:1 7 P M Sub je c t : E -E du ca ti on ve n tur e
Jason Carlos Desmaras, Class of '00 mentioned his conversation with you about Reuter's interest in e-education. I work for Avicena LLC, an online education venture in Orange County. Our focus is only on the financial services segment and I am sure there are areas of mutual interest that we can talk about. I would like to schedule a telephone conversation and if you can let me know when would be a good time for you next week. I am on Pacific Time but still keep New York hours. Look forward to our conversation. Warm Regards Jawwad Farid Avicena LLC
From : Jawwad@avi cena To: Jawwad Farid ; Jason Kubi c a ; SM; D eni se D avi es C c : C ar l o s Se nt: W ednesday, March 07, 2001 12:2 3 PM Sub je c t : Re: E -E du ca tion ve n t ur e
Jason It was a pleasure talking to you this morning.
I sincerely hope that
over the next few months, we will get a chance to work together. As promised I have enclosed the Avicena materials with this message. I think the best place to start is our very short flash presentation that gives a quick overview of who we are and what we do. Please click on the following link to see the online presentation.
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http://www.alephinc.net/avicena/demo.html I have also attached a short executive summary followed by the Beta user instruction sheet that will provide you with the passwords needed to access the website. At the end of this email are two additional links to our most recent product brochure (pdf file) and the recent coverage in Red Herring on e-learning. Additional materials, including a detailed business plan, are also available on request. We work at with corporate customers needs to address by specific its knowledge, The
application and skills gap. targeted specific
Avicena develops standard and custom courses identified customers.
learning
environment also generates feedback on individual learning and areas requiring further training support. The courses are instructor-less and webbased (online, Internet) allowing for scalability, 24 x 7 access and instantaneous, standardized, global rollouts of new training curriculum. Content drives this business and for us the important piece was getting the production processes right. We now believe that we have a very good grip on those. Beyond that, certain key product features determine how successful & popular an e-learning solution is with customers. Flexibility, fit, emphasis on learning, availability on demand and depth and impact of content are some of the issues that we identified earlier on and have emphasized in product design, technology and production. What I would really like to do is setup a time for a 30 minute demo after your trip to Europe. We can also use it as a detailed Q/A session on the best way to move forward on this. convenient time to arrange this. forward to our conversation. Jawwad Farid Avicena LLC Let me know when would be the most Meanwhile if you have any questions or
comments that I can answer, please feel free to contact me. I will look
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From : Jawwad@avi cena Se nt : Mo nda y, Mar ch 0 5, 2 001 4:1 0 A M To: Pear son Con tac t ; SM; Re ema Cc: Denise Davies Sub jec t: Hel l o th er e. . .
Hello there. Remember me. I do disappearing acts - getting very good at them. Life has been quite crazy since the last time we spoke but I am happy, busy, putting on weight, having the time of my life, getting my innocent cousins (Reema just joined us last week) and friends and family involved in my .com misadventures. I have a few things that I wanted to show you. The first is a flash presentation that we have been showing to investors and customers. http://www.alephinc.net/avicena/demo.html Second is the executive summary, which is also attached. Third is a 1.4 Meg zip file with the latest Avicena brochure targeted at banking customers - http://www.alephinc.net/thi/AvicenaBrochure.zip We are trying to start a conversation with Sylvan ventures to explore the possibility of them coming on board as a strategic investor. Then I thought of you and Pearson and wanted to pass this by you. Pearson actually has quite a few ventures in place / on the ground with some of the b-schools (Michigan and Wharton). There is also FT knowledge.com that leverages FT's content and its relationships. However there is nothing visible as yet and certainly no venture focusing on the Financial services segment or Finance in the e-learning. Couple of questions:
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1. Is this worth exploring? 2. Would Pearson be interested - especially now that they own all major respectable publishers? 3. Who would be the best people to talk to and what would be the best way of getting an introduction? That is all for now at least on the business front. Work is cool. Difficult for me to imagine if I would ever be fit for a regular job after this gets over. I am seriously thinking of retiring and just staying home, raising kids, cooking and watching x-file reruns. Take care Jawwad
From : Jawwad@avi cena T o : D yl a n S te e g ; n y er i n ca Se nt: Monda y, Mar ch 0 5, 2 001 4:23 AM S u b j e c t : Re: Up d a t e f r o m L A L A L a nd
I had been on the road since late November - Canada, Tokyo, home (as in Pakistan), Middle East, and finally got here mid Feb. On the money front we have now moved our focus to some of the larger groups - Sylvan, Pearson Education, New Horizon, etc organizations that have been big before and are now looking to throw chump change (for them, but not for us) at fresh new ideas (like ours). Take care Jawwad
From : Jawwad@avi cena To: Ralph ; Jawwad Li st ; TMP Gr ou p; Se nt: W ednesday, March 07, 2001 6:13 AM S u b j e c t : S to p Pr e s s ! Upd a te f r o m LA LA L an d
18 long months and today we receive our first phone call from a very serious customer...
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Not that its money in the bank (btw it is a bank), but we are meeting them on Monday and after a 4 week beta, there is a good chance that they will come on board permanently with 50 licenses and two of our courses. Pricing is still a question mark but we will work that out Inshah Allah 37. After I stopped screaming and jumping (yup guys do that too), the first group I thought of were you guys and gals. Just thought you would like to know. Take care Jawwad Farid Avicena LLC Afterthoughts Quite a few people had a problem with the flash animation that went out. We have now put it on the web http://www.alephinc.net/avicena/demo.html and the brochure that made the sale (this is a 1.4 meg zip file) http://www.alephinc.net/thi/AvicenaBrochure.zip
Fr om : Pe ars o nC ont a ct To: Jawwad @avi c ena; SM; Reema Se nt : Mo nda y, Mar ch 0 5, 2 001 4:1 6 A M S u b j e c t : RE: H el l o the r e . . .
Jawwad,
37
When meeting with first-time contacts, customers, and partners, Sarwar always introduced this phrase by If we do establish a working relationship you will hear us invoking two words on a regular basis. The first is Inshah Allah (God Willing) and the second is Mashallah (by the Grace of God).
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Thank you for your note and the information. I have not looked at the attachments and probably will not get to them before the end of the week. However, here are some initial comments about Pearson in general: - Pearson purchased NCS for its strength and richness of applications in the education market. The type of stuff you are talking about fits best with NCS Pearson. So, I think you would want to get in touch with someone at NCS Pearson, rather than Pearson plc. - If you are looking for interest in your product, then yes it is worth pursuing. If you are looking for investment, I think it will be a long stretch. However, it does not hurt to try. - Take a look at vue.com (part of NCS Pearson). They do a considerable amount of electronic testing business. I will take a look at the information and get back to you with a more complete response. All the best
From : Jawwad@avi cena To: Pear son Con tac t ; Reema C c : S M; De ni se Da vi e s; J a ww ad @a vic en a Se n t : Fri d ay , M arch 1 6 , 2 0 0 1 2 :1 3 A M S u b j e c t : Re: H el l o th ere . . .
Hello... Just following up on the note from last week. Did you get a chance to look through the material? We have done a reasonable amount of research on what companies like Sylvan, Tribune, Pearson, News Corp and Knowledge Universe (KU) are
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doing in the e-learning space in general and the corporate training segment in particular. With the exception of KU, there is no focused or directed attempt to service the learning needs of the financial services sector. It is not that there is nobody present in that space. There are a number of players in the offline training business, a few in the assessment and custom and exec. education programs but only a handful in e-financial training for financial services. What little exists in the online space is focused on technology related training programs. Given that a. Banks, commercial lenders and insurance companies have the highest budgets per employee for on-the-job training, b. There is tremendous pressure on this segment to improve its bottom line and use technology as a driving force to cut costs and improve employee productivity, c. The increasing awareness about e-learning, its applicability and relevance to these businesses We very strongly believe that an opportunity exists for the right players with the right products. Reema is working on a memo that puts that opportunity in perspective. Its also elaborates on our desire to work with a strategic partner (or investor) who sees the opportunity and is interested in exploring it. NCS Pearson is extremely active on the assessment side, but todate there are no ventures that fit our profile. K-12, Assessment, Training, Technology - Yes; Finance, Financial Services, Corporate training - No. Pearson itself has executive education business by the name of FTknowledge that is leveraged off FT's brand. The problem there also is reliance on an offline model to compete in an online world.
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Please let me know what would be next appropriate step for us. Will look forward to your feedback. Take care
Fr om : Pe ars o nC ont a ct T o : J a ww ad @ a vi c en a Se n t : M o nda y, Mar ch 1 9 , 2 0 01 7 :0 4 A M S u b j e c t : RE: H el l o the r e . . .
Jawwad, I got some initial (positive) feedback from one of our controllers. He and I both feel that Pearson Education (of which NCS Pearson is a part) would be interested in something like this. We see it as an educational tool for professionals who do not have a financial background, but need to have an understanding of accounting/finance basics (the scope of your curriculum maybe much broader, this is just based on the courses that we have seen). Pearson Ed. is a huge organization, and I have only met the CEO and the CTO, but that is about as much as I know of the organization. I will try and get some information on who you should contact. In the
meantime I would encourage you to look at the Pearson Education Website and get a better feel for who they are and what they do. Also, put together a memo about Avicena and its offerings, and why you think Pearson Education should be talking to you (Avicena). Send it to me when you think it is ready for a review. I can then get you the address of the CEO and you can send it directly to him. He will then forward it to the rightfolks in his organization. Good Luck
From : Jawwad@avi cena T o : S M; R e e ma ; A sh ar Se n t : M o nda y, Mar ch 1 9 , 2 0 01 9 :0 0 P M S u b j e c t : F w: H el l o the r e . . .
I think this is as big as it gets.
The one that we have all been waiting for.
Outstanding job everyone. Take care
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PEARSON EDUCATION & AVICENA LLC S T R A T E G I C I N V E S T M E N T P R O P O S A L 38
Jawwad Farid, jawwad@avicena.com Reema Rahman, reema@avicena.com
Avicena LLC, 2740, South Harbor Boulevard, Suite J, Santa Ana, CA 92704 Phone: 714-540-5933 Fax: 209-821-9174
March 25, 2001 All pages of this document contain information proprietary to Avicena LLC. All data furnished concerning this document shall not be duplicated, transmitted, used, or otherwise disclosed to anyone without the express written permission from Avicena LLC. This restriction is applicable to all sheets of this proposal.
38
Included the proposal here to provide context for the discussion that happens between Dylan and me as well as the email exchange between us and Pearson contact.
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Preface We are a 15 month old, seven-person startup. In the past eight months, with just over a million dollars in capital and sweat equity, we: a. Defined a new corporate learning platform from our exposure and understanding of adult learning. The platform integrates processes, usage, application & content in one seamless environment b. Marketed and beta tested the need, the product and the fit between the two c. Developed, tested, positioned and launched the new corporate learning platform d. Defined & implemented digital course generation processes e. Tested the processes and created four full length (10 - 16 hours each) live courses (Corporate Finance, Ratio Analysis, Leverage, Breakeven & Credit Analysis) How we accomplished this is the reason why we should talk. Market Snapshot The U.S. corporate training and development markets estimated size is $62.5 billion. (Source: Training Magazine, October 1999) Corporate training -- E-learnings fastest growing segment generated $200 million in 1997 and is estimated to reach $23 billion by 2005. (Source: International Data Corp and Red Herring, February 2001) Finance, banking and insurance sectors are the leading users of technology-based training with 16% to 17% of total training delivered by computers for each respective market. (Source: Training Magazine, October 1999) Financial services industry employs 7 million people with an estimated 1.5 million in the management cadre (Source: Bureau of Labor Statistics, Department of Labor) Avicena LLC (Avicena) Avicena is a knowledge accelerator that provides online (web based) learning solutions to the financial services industry (FSI). Our product is a set of tools, processes and methodologies that allows corporate customers to address specific knowledge, application and skill gaps under the domain of Finance (risk, pricing, underwriting, financial performance measurement & reporting). Strategic fit For Pearson Education (Pearson), we bring: 1. 2. 3. 4. 5. 6. A fresh and non-traditional perspective on content generation, applications and learning processes A developed corporate learning platform with scalable offshore content & technology development facilities, related protocol and expertise Growth and development of a maturing, explosive market which ties in with Pearsons focus on content, application and connections Synergies, technologies & processes that strengthen Pearsons existing e-learning initiatives in FT Knowledge, NYIF, Learning Network & CCC. Opportunities for cross-selling financial content from FT and related publishing units A core and growing group of people driven by everything-is-possible, startup, mindset
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Pearson is an enviable partner for any firm in the education business. For Avicena, the noncash value added of a strategic investment from Pearson translates into: 1. 2. 3. 4. Instant credibility with corporate customers as a partner (or part) of the largest education company in the world Access to a well established, powerful, global distribution network Incorporation of existing assessment, diagnostics, testing and reporting expertise Benefit from current editorial, presentation and communication processes
Market need Training is no longer an option. It is an essential ingredient in improving employee productivity as businesses struggle to improve their cost structure in a rapidly changing competitive environment. The economics of web-based training are compelling, leading to a decisive shift to technology as the preferred medium of training content and delivery. The financial services sector is a highly process-oriented sector with the steepest learning curve for people working in back-office functions as well as those selling financial products at the front. This sector has the highest budgets per employee for on-the-job training. Given the current macro economic scenario, banks, insurance companies and related financial institutions are under tremendous pressure to improve their bottom-line and deploy scalable technology solutions to cut costs and improve employee productivity. The problem is that very few players in the e-learning space offer products that: Use focused, comprehensive, practical & relevant content Create an optimal adult learning environment Allow on-the-run (real time) customization, instantaneous fulfillment & close fit with organizational and individual learning objectives Solve the cost of content generation/acquisition problems Simplify pricing models and reduce cost of ownership Provide 24 x 7 x 365, anytime, anywhere, available on demand access
Avicena -- the Company Avicenas edge is its learning environment and infrastructure. The emphasis is high quality, relevant & practical content in an environment that supports adult learning processes, customization technology, standardized rollouts, user & information interfaces, retention, and real time assessment. Avicena competes on processes: Our process generates higher quality content quicker & faster in a scalable fashion. An important element of this advantage is our reliance on offshore resources for content generation and outsourced technology support. Courses are customizable by specific needs of students. Modules can be added, dropped and completely new courses tailor-made on the fly. Customers can select and build what they need using Avicenas knowledge base of financial concepts & its fulfillment engine. Course structure emphasizes learning, application, and retention. Interaction is adopted at each stage, (diagnostic assessment, retention exercises, case studies & feed back) for continuous evaluation and improvement of users and products. The content generation engine deploys teams of professionals (finance, education, technology) who together develop high quality content that transforms complex financial topics into simple practical concepts, emphasizing process, skill & applicability.
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Focus and pricing issues are resolved by concentrating energies on the financial services segment and finance professionals.
Customers Our target market is the corporate training segment for financial education. This includes retail, commercial, and investment banks, insurance and reinsurance companies, small and medium sized businesses and learning institutions. At present, our beta customers include Hudson River Inlays from New York and a number of individuals working within the financial services industry. Discussions with two re-insurance companies -- Swiss Re and ERC Frankona, a mid-size California bank and two consulting organizations working with mid size banks are underway. In later business development stages, Avicena plans to scale up and offer its financial content, delivery technology & knowledge generation processes to academic institutions, distance learning firms and finance portals. Revenue sources Content, technology and processes are priced on per course, per user, per year basis with multi-year contracts. Level of pricing is set depending on depth of course and number of users per customer. Investment Funds sought: Valuation sought: Round: Timeline: Next Round: Timeline: Application Of the first round, $2.3 million will be applied to startup and capital expenses. Expenses include computer hardware and software licenses, office space and office furnishing, and build up of Avicenas knowledge base, content consultant relationships, offshore resources and facilities. The remaining $2.7 million will be used for recurring expenses that cover salaries, sales, marketing, recruiting, general and administrative expenses over the next twelve months. First stage financing will carry the firm from March 2001 to February 2002. We expect the firm to become cash flow positive thirty months after launch in the third quarter of 2003. 5 million dollars 54 million dollars Series A May 2001 9 million dollars (Series B) February 2002
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From : Jawwad@avi cena T o : D yl a n S te e g C c : R e e m a ; S M; D e n i s e D a v i e s Se nt: Th ur sd ay, Ma rch 29, 2001 12:59 PM S u b j e c t : Re: S tr a t egic In v e st m en t P r o p o sal
Dylan Thank you very much for the comments. All of us really appreciate the time you took out to review the proposal and in helping us out in refining the outline. Your support means a lot to me and I hope I would be able to return the favor some day (Inshah allah). My comments are attached just after yours 39:
39
Dylans email (that follows this footnote) and my response to his questions show that while in some areas we had thought things through, in others we were nave and unprepared. The comments on the structure of financing, about growth projections and net worth show an MBA-ish reality dysfunction that would have killed most funding conversations in mid sentence. We were just as clueless on pricing because we had been so busy with building technology and content that we hadnt actually gotten around to asking customers if they would pay anything for what we had. The parts that we did get right were questions that had been asked before in conversations with counterparties who were evaluating us seriously. On good days we would get the answers wrong the first time, kick ourselves, and try and get our act together before the next potential investor showed up. On bad days we did appalling impressions of clueless kids in a sandbox and blew conversations before they even started. The only way to beat the odds was to have as many customer-facing exchanges as possible in the hope that when the guy with the checkbook finally showed up, you had all the right answers practiced and ready.
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From : Dyl an Steeg T o : j a w w ad @a v i c en a.c o m Se nt: W ednesday, March 28, 20 01 1 0:4 4 PM S u b j e c t : Re: S tr a t egic In v e st m en t P r o p o sal
Jawwad, I really like the proposal. the deal. My humble inputs: 1) Page 2, I'd change "why we should talk" to "why we believe we should discuss strategic opportunities". The former statement brought images of someone bubble gum chewing with mouth open to me. Dunno. [JAF Comments] Reema was actually quite upset with me on sending the proposal out with "we should talk". We couldn't get closure on the sentence and we ended sending it out just as it is at 3a.m. in the morning. But your suggestion is exactly the wording we were looking for 2) Page 2, under strategic fit, # 4 and 5. Are FT, NYIF, and CCC standard terms or do they need to be defined? I don't know them. Dunno if Pearson will. [JAF Comments] In Pearson's case the acronyms stand for Financial Times, New York Institute of Finance and Curriculum Communication Corp (FT, NYIF and CCC are standard references used on Pearson's site and in their annual report for these three ventures) 3) #6, I'd add a sentence listing the tangible skills of the core and growing group: finance, stats, insurance, IT, programming, tech development management to list a few. It gives a good overview of the history, the market, why you want to speak with Pearson, and the financial structure of
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[JAF Comments] Will work on this. 4) Page 3, I really like the statement "This sector has the highest budget per employee for on-the-job training". I might think about underlining and or italicizing. It made me think that you had your market segmentation DOWN solid! [JAF Comments] Thank you. 5) Page 4: financial structure: are you issuing Series A preferred, common, warrants, and if the latter, warrants on preferred or common? How many shares to issue total? Start thinking about putting the cap table together. They'll want to see who else has their money in the ring. Also make sure that the asset purchase agreement and investor rights agreement is developed by YOUR attorney. Do not take the boiler plate of the investor. First to bring documents sets the Iyengar anchor. This is big. [JAF Comments] Series A common. Between 8 - 15% of the business. Prefer not to do debt, convertible structures or options. Do you have any comments on how to handle this issue. On the legal side, planning to work with Paul Hastings rep firm in Orange County on the law side. Had an initial meeting with them just before I left and they are interested. We still have to approve the engagement structure they suggested 6) The financial forecasts incorporate huge growth: ~ 500% in 2001 and 2002, 150% thereafter. Just make sure you can justify. E.g., that's the same growth as the market as a whole, or we will grow faster than the market because of reasons X, Y, and Z. [JAF Comments] Couple of reasons. Big growth spurt within the market itself not just within Avicena. The growth is a little skewed because of the initial jumps but by the time we hit 2006 - 2005 we would probably be looking at
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10 - 15% for the next 7 - 10 years and then stabilize around 600 - 750 Million in annual revenues and maybe 3% - 6% per year 7) How do you define net worth? Retained earnings or contributed capital? I'm assuming the latter since you have negative earnings right now [JAF Comments] Asset - Liabilities. Assets are directly linked to the value of systems, processes and content. Facilities, infrastructure obviously contributes, but as we grow older bulk of the asset side is intellectual property. It is primarily a lot of CAPEX going in as equity (contributed capital for the first three years), added on by the big difference of content generation costs and the value of the content generated (Fixed asset additions - depreciation - capex). Nice job brother. Keep me posted
From : Jawwad@avi cena T o : Pe ar son Co n tac t C c : S M ; Re e m a ; D en i s e D a v i e s Se nt: Monda y, Mar ch 2 6, 2001 4:48 PM Sub je c t : Avic en a L L C
Dear PearsonContact I have attached a four page investment proposal with this email. The
proposal covers current status, strategic fit with Pearson Edu, markets, products, investment needs, applications, financial summary and people overview. A full business plan (50 pages), additional information, review of existing solution and future course and technology development plans are available on request.
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If its possible, I would like to schedule a short phone conversation on what would be the best way to move with this. Please let me know when would be a good time to plan for that. We did a fair amount of research on Pearson Edu and were very fortunate to get hold of the webcast coverage of Peter Jovanovich & Marjorie Scardino's presentations (Dave Smith and a number of other senior executives also spoke at the same session) at the Analyst conference in January 2001. Given Pearson's existing ventures, the content of the last two annual reports and the presentations at the Analyst conference, we are very comfortable with the strategic & marketing fit between Avicena and Pearson Edu. One of the key themes in Marjorie's comments was her emphasis on combining content with applications & customers and how Pearson has accepted that "content is not the only thing". We believe Avicena represents one such opportunity where applications, processes & content come together to create tremendous value for all stakeholders. On a side note, we are in the process of building foundational material on the courses front. Once the foundations are complete, our next objective is to build application courses and follow that by advance professional courses. We are starting with courses with a mass market appeal (bottoms up approach) but the material will start getting technical after the first 20 - 30 courses are on the site. If you have any additional questions or comments, please feel free to call or email me. I will look forward to your feedback. Warm Regards Jawwad Farid Avicena LLC
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From : Jawwad@avi cena T o : S M; Ale phL i s t ; A vic en aLi s t; Bo ar d Of Di rec t or s ; Fri e nd s; Se n t : Fri d ay , M arch 30 , 2 0 0 1 1 0 :2 3 A M S u b j e c t : F un di ng U pda t e
Ladies & Gents We started the week with the Pearson Proposal plc. Thank's to Reema's unbelievable speed in doing research, coming up with pitch and putting a package together, strategic investment proposals have now been submitted to 1. Reuters Greenhouse ventures 2. McGraw Hill Ventures 3. Kaplan Ventures (subsidiary of Washington Post) 4. Reed Elsevier 5. Oracle Tomorrow is follow up day. The conference call with Chescor went reasonably well. For all practical purposes they now have all the information they need and the decision now lies with Moez. Keep your fingers crossed. Take care Jawwad
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F r om : D a ne s c u A d r i a n T o : j a w w ad @a v i c en a.c o m C c : K en ny C h ar l e s Se n t : Fri d ay , A pri l 0 6, 2 0 01 5 : 1 0 P M S u b j e c t : A v i c en a B e t a te s ti n g a t M B
Jawwad, First of all, I must apologize for the delay in responding to your note but due to staffing changes at MB as well as the conversion efforts we are going thru as I am writing this note, we were not ready to confirm our commitment to your training. As per Charlie's request, I am pleased to let you know that we are committed to use your product for internal training to start with in the credit area and, as we move forward, we would like to explore other opportunities. Since I wasn't directly involved in any of your prior conversations, I would appreciate you letting me know the terms of the proposed use of your product at Manufacturers Bank. Upon reviewing the terms of the Agreement with the specific organizations and the Legal group, I would like to start the program ASAP. Please be aware that probably I will not in a position to work with you and the Credit Division next week but I can at least make arrangements of reviewing the Agreement and setting up the meetings with the right senior managers in our organization. The sooner you can put together the Agreement, the faster I can help you and your staff get things moving. As part of the Agreement, I would like to information such as the duration of the Beta training program at no costs to recommendation on using Avicena for internal
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MB, what would be your expectations from us, if any, how do you intend to set up the training program. You might also start creating the procedures to be used by our staff as they will be needed when they will commence the training. 40 I am looking forward to hearing from you. Sincerely, Adrian Danescu Manufacturers Bank SVP/CIO
40
With five years behind me, Adrians email still breaks my heart. It came a few days before I shut the door on Avicena and nothing Sarwar, Denise, or Reema could do or say would make me open it again. We had been working with Adrian at the Sakura Bank subsidiary in Los Angeles for close to a year and he had tremendous respect for what we had achieved on the technology front. The MB beta contract a year earlier would have jacked up our valuation, given us feedback on friendly terms, and sealed the one funding offer we needed. A year later, it represented a commitment to spend money we didnt have, supporting a customer that would not generate revenues in the next quarter, using a team that no longer believed that they had a future. Customers take time to make up their mind and return phone calls. You can not tie them to your schedule. Given a more mature pitch, a few more reference sites, and a bucketful of time, we would have signed a revenue deal. If not Reuters, then Yahoo; if not Yahoo, then Pearson; if not Pearson, then University of Phoenix. But we had shortchanged ourselves by starting this process when we were already broke and hurting. We also set ourselves up by expecting timely, positive, lifesaving responses with some of our more qualified leads. Yes even though business development (biz dev) lives off optimism, the successful biz dev professional lives off zero expectations. What you dont expect will not disappoint you, what doesnt disappoint you will not kill you. Unfortunately for us it was death by a thousand nos.
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Takeaway
Easier close: It is easier to get a partner to sign up as a customer for a small contract then to start off the conversation with a strategic investment proposal. Given a choice between the two, go for the
easier and simpler close. Omit needless words 41. one page. are doing. Stop selling: to When Just you like know and the the decision happen has momentum sale to invest, a you the few shu t to If it is worth buying, worth
selling or worth investing in, pitch it in less than If it takes longer you dont know what you
decision seconds. up, stop
purchase
can let
also the
within happened, carry
selling
the close. Learn to say no: up When and you go know home you cant service a
customer,
wrap
empty
handed
rather
than take on work you will not be able to deliver on. Sales Cycle revisited: Remember and respect the sales cycle. for the venture You must to have provide run a for few enough (time time and If capital a ne w save cycle you iterations. nor in
neither
capital)
yourself the heartache, close shop and go home.
41
Elements of Style, William Longman, January 2000
Strunk
Jr
and
E.B.
White,
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On
preparation: or your
Whether an
you
are pitch
having you
a must
sales walk and
conversation through
investor
presentation,
expected
questions
your answers to the same till you sound coherent and professional. Part of this practice happens within your own room,
but for it to be effective it needs to happen across partners, The more customers you talk and with investors conference who tables. may not professionals,
have an incentive to listen to you, the better your act will become. One reason why small wins are better is because they allow you to refine your act. Even if you blow a sales conversation what you leave on the table is of small consequence. With a small customer, sometimes, that too can be recovered because small customers are more forgiving than others.
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Chapter Twelve The End
Surprisingly wasnt wasnt expected reasons ceased reasons forty their cards, without potential chat date even right in in to that easy it for why
enough, bad. but to It it be.
when wasnt One by
the the
end
came, and of
it it I the of
wasnt
pleasant one, bare few all
nightmare
Avicenas leaving and bank own we
continued me a
existence infront years and a with under credit funding expired down and that
exist;
shouldnt:
Competition
million belt, Aleph
dollars on its had a who
overdrawn
balances bed,
death
strategy
that naming
inconveniently suitable couldnt call the at sit
replacement, some only unnamed ignore
partners now but the
would and you
future,
realization
California
could
reality for so long. But life the fact as we knew it went was paid other on. To still some extent, and our
that
Fawzia and
working Then
occasionally parents,
getting
helped.
siblings,
relatives
chipped
in again to tide us over our rough patch. I an to slowed down, walking him we I and up started in to interviewing, and day care on picked up and first Sunday on
interest pick
cooking Amins to every
swimming, For the
started time
Sunflower
evening. to the
since
moved took
California,
every play
Fawzia
Amin
area
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Laguna rich,
Beach, we
short and to
drive grab San
away. a
When
we at
felt or the took Route
would Kitchen off and
order Coast
food
from movie We
Darya even via
Jamilas Cineplex time One. As long off
South drove
Plaza.
Francisco
as
you I
didnt had of my
look
back up With on
too my
often room to a
it and the
didnt darkest I
hurt. all much I corner
cleaned closet. focused between the
consigned became next,
Avicena-related more and lived and
material some one getting From
effort, job, to day
the the the the up,
economy,
interviews.
prospecting calls. I had effort the
leads, Between to picked from
interview job it
prep, at
conference
network took
school, the months
devoted offer
hunt,
and
credentials before
three
Shane came along. It was still out over do how that the carry boxes a too soon we for had be in with had me lost the just to or get if down there Aleph that it up we a and was had they would few had. or
figure taken could have Given
much
anything
could on, and but we
salvaged. hope
venture
hindsight, picked everything
been better if choice
storage
fire-saled over
lingering
good-byes
sudden death, pick the latter anytime.
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From : Jawwad@avi cena T o : J o e R oo n e y Se nt: Saturday, Apri l 0 7, 2 001 3:31 A M S u b j e c t : Re: Up da t e f r o m NY C
Hey Joe.... It was great seeing your name on the alumni list with the new 42 nd street project and really happy to hear from you about how its turning out. Thing have gone quite well but there is still no money in the bank. Both I and the bank are getting quite used to the fact. I think we have accomplished a lot in such a short time with such limited resources but have not been very successful in getting investors on board. My cutoff date to start looking at other options was day before yesterday 42 and I am now on the market again. Talking to a few firms here and there and there may be a chance that my warm California days maybe coming to an end. How is the rest of the gang? Are you in touch with Liz and our friend Ken (Craddock) at school? Say hi to both the next time you see them. Take care Old Friend Jawwad
42
At what point did I decide to walk away from Avicena? There is no easy or short way to answer this question that too within a footnote. Hence the reason to write Book Two as well as the hindsight and conclusion sections where I promise to revisit this question.
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From : Jawwad@avi cena T o : Pa ul J Ki m S e n t : M o nda y, Ma y 2 1 , 2 0 01 5 :3 4 P M S u b j e c t : Re: Up d a t e f r o m L A L A L a nd
Hey Paul... Every now and then I wonder what you are up to and its a great way to begin a day with an email like yours. I finally decided to give up on the yellow brick road to startup land. Couple of things happened at once. The incubator went down in a big way as their business dried up, we went looking for money too late and as a result didn't get any. After operating without cash for the close to 4 months, I finally opted to do something less stressful with my life. The job market is pretty tight. I have had a few interviews but nothing substantial as yet. Waiting it out and spending a lot of time on monster.com. In the mean time I have gone back to my day trading days. It gives me something to do and pays the rent. Fawzia and Amin are doing very well. One beneficial side effect of the
above decision is that now I get to spend a lot of time with them. First time in the past two years we are finally getting good quality time on weekends. Both of us started Dr. Atkin's protein diet to shed our second skin of fat day before and are still in the Carbohydrate withdrawal cycle. Expect things to improve in the next few days. It was really great to hear from you. Do stay in touch. Take care Jawwad
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From : Jawwad@avi cena Se nt : S und ay , S e p te mber 23, 2 001 5 :52 PM T o : J a ww ad @ a vi c en a S u b j e c t : Up d a t e f r o m L A L A L an d . . .
Just thought I would send out a short and sweet note to all of my friends & family about the latest in my life. Its been some time since I got round to sending one of these out. For those of you who don't know as yet, Avicena, the e-education venture was claimed by the down turn in late May. It was a labor of love for all the team members and made it very difficult to step away. There are a thousand ways to leave your lover, but the sages are silent when it comes to bringing down the shutter. But step away I did. The two piece of advice that did help tremendously were the words of Andersen partners I used to work for "Never make mistakes alone" and "Charge it to the experience account". I was fortunate to have the unconditional support of my family, friends as well as people who are close enough to be both. The past three months have been nothing short of amazing. When I started, there were a number of outstanding "to do's" in my life including losing 30 pounds of excess weight, learning how to drive a car and getting a drivers license, completing my Fellowship requirements for the Society of Actuaries, getting a job with a regular paycheck, balancing, work, family and health and taking out a an uninterrupted chunk of time for Amin and Fawzia. By the grace of God (and His generosity and benevolence), three months later, my personal to do list is now a lot smaller. We also got a couple of bonus items along the way like driving twice on Route 1 to San Francisco, relocating to Northern Virginia (right next to DC & Dulles Airport), finding a position that allowed me to be an Actuary, an MBA and a computer scientist (all) at the same time, earning the rights to the three letters (FSA, Fellow Society of Actuaries), getting a really cool apartment in a really cool
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neighborhood.
I still have another 15 lbs to go on the weight front, but
whatever little progress I have made on that front will do for now. On the work front, it's been a week and I have finally managed to get my old address book installed on my new machine...Hence the mass email (my apologies, will write to all of you individually over the next few weeks). In case you are wondering, work so far is very good. AnnuityNet sells
technology platforms for managing, servicing and selling financial services products for financial institutions (www.annuitynet.com 43 for more details). I am working with 1. One Mathematical Genius (ex Chaos Theory Professor) 2. One extremely well respected Actuary (Three companies, 1 IPO and a handful of millionaires to his credit) 3. A really laid back, well oiled, ultra competent technology team 4. A converted 200 hundred year old barn right next to a converted bike/jogging trail that goes all the way to DC 5. Next to a well stocked kitchen and vending machine that everyday threatens to put the 15 lbs back That is all for now. It will be really good to hear from you again so send me a line or two (or more - definitely more). Take care Jawwad
43
Coming immediately after Avicena, AnnuityNet provided a great opportunity to appreciate all the things we had gotten wrong and AnnuityNet had gotten right. From funding to technology, from hiring to service level agreement, from business development to closing deals, Shane and his team provided a frame of reference that put the mistakes we had made in even sharper contrast.
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Takeaway
Endurance: depth of of your Your endurance in what is you a balance and doing. between In the your personal check book are the intensity plain
belief
English, either have more capital than you would ever need or enroll in Zealots 101. I survived because I had my Ideally do both. family with me. When
every one else walks out on you (or you walk out on every one else) they are the ones who will carry you through, irrespective of how mean, rude and arrogant you have been. So be nice to them. Timeout: what you Take could Focus timeout have on to recover done physically to save do and your things
psychologically. business.
Dont ponder too much on why me or possibly how you would
differently next time. There is no space for regrets or missed opportunities on this page. Failure is a badge of courage, acknowledge it, and wear it with pride. Taxes: your Sort out your This to tax is your related where paperwork forming as a and save
receipts.
Limited of your
Liability Company (LLC) helps since it allows you to distribute losses members, part yearly distribution, not just on winding up. fat paycheck in the year of your failure or If you after,
have had other sources of income or start receiving a the tax break will help. California LLC: A California LLC in 2000 came with a
minimum tax of 800 dollars a year even if you did no
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business in that year. It didnt sound like much at the time of incorporation but when you are broke and over leveraged, every additional dollar hurts like a root canal. Be nice to people on your way up. your backup options disappear: the time I was done with Be prepared to see
My two six figure job Avicena. Markets and
offers (Viant and the one in Florida) disappeared by economic conditions change and this change is part of your bet. The first post Avicena job interview happened within two days of my initial I am on the market mail shot. averaged generous ideas. me who to a The source of that interview was a classmate an and firm me interview supportive of to every with fortnight leads, and that and
from Columbia. I was lucky that in a down economy I strangers, who had no reason to be nice to me, were references in San An insurance broker I had never met pointed consulting another actuaries Diego, came a eminent actuary, that who I
pointed at
back with four references, one of which led to Mark Abraham Transamerica who suggested have word with Shane. It was the actuarial network mixed
with acts of random kindness and patience that traced the path from Orange County, southern California to a two hundred year old converted barn in Leesburg, northern Virginia. Did the Entrepreneurship experience help? No, Shane
and the first interview were the only exceptions. I was trying to transition back into smaller roles at larger firm and taking crazy bets with your career
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and
your
life
are
not
the
ideal
recruiting
strategy
in those quarters. As with business, a laser sharp focus in a job search also delivers. It is a question of time, practice, patience and luck.
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Book Two The Blue Screen of Death
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The blue screen of death

In the beginning, was new there age was Microsoft Freedom A Windows. from the For unisized stuff blue a some one coming from the dark ages of character based DOS, this stuff. dimensional the There blinking cursor. like portable most it new thumb age obtuse had less even
MP3 player with digital quality sound in the age of gramophone 44. across kinks, With on just a a were But human introduced screens unstable. decade using a history, black your that wasnt perfect. become than younger, the blue
bizarre
holes; system was was
that old,
announced
technology platform
that
released
operating
system,
screen caused sheer panic. What should I do? Douse my computer with water for it may burst into flames any minute? Call the techno geeks equivalent of 911? The three finger salute press CTRL-ALT-DELETE? and voila; an instant reboot. And when that didnt work, you did what you did with everything else in life; pull the plug out and plug it in again. In all the it first took Like few a editions single to food, copies key of Windows, on the an of blue blue
screens were as common as Windows was rare. At times was bad stroke the already the and blue low stretched screen. quality computer invoke would wrath
untested
45
software shock.
pirated
produce
screens
with the severity of anaphylactic
44
Well Windows 1.0 wasnt really that good, but the picture 45 Fancy medical name for allergic reactions.
you
get
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As the personal computer, subcomponents, software and Windows today that that I itself up I a do improved, blue blue once at the a took screens in a started year. And a becoming rarer. throws too am when not My IBM Thinkpad and Windows XP combo screen to. It something hardware decade level and
supposed
half after Windows original launch for this universal icon of electronic instability to be hunted down into extinction. What is the relevance to entrepreneurship? You may
ask. One word Reboot. The concept that you can flex three fingers (or one, as I have done at times) at a specific instance of your life and restart with what is left and salvageable a few seconds (or years) later. With to a Just like the initial version of Windows, for iteration where they are become rarer. with
46
first time entrepreneurs, blue screens are expected. each Till the you get stage you endowed touch.
You become the entrepreneurial Sufi
turning every
thing you bless, with your presence, into gold.
46
See
http://en.wikipedia.org/wiki/Sufi
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Hindsight
How an
did
an
MBA
from a end
Columbia decade and a up like
Business of
School, computer karma?
actuary
with
international
consulting science Greed?
experience,
top-notch Fate?
graduate Destiny?
48
t h i s ? 47 B a d
Stupidity?
Arrogance?
Quantum physics ? All of the above? In like so but I my religion, so fate the On predestination be I an easy was is way accepted out. to It is fail, maybe; you you that It is ask are has not its give
wisdom,
would a
taking in a
fifth.
destined
failed.
metaphysical answer at
level,
more later
down-to-earth midnight of a
dimension, when
predestination yourself writing been that just your that years the
doesnt
questions book
closing
chapter bedside destiny
constant faulting
companion. doesnt
finding
answers
changes
anything; really
me the closure I have been looking for. When this I first I started a list thinking of about writing want
book,
had
questions
I did
to answer. They were:
47
Couldnt you just get a halfway decent job and not be an entrepreneur? Werent the six-figure offers good enough for you? And since we are on the subject, who exactly was your career counselor? 48 Just checking to see if you are still paying attention.
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a. Why did Avicena fail? b. When did I decide it was time to walk away into the sunset? c. How did I know it was really over? d. Was it worth it? e. Would I do it again? The odd core of And a funny pages, fable, from the appears thing I is I that still have the of a be even put the after writing evade 140 the
have with to
managed story last drafts
to
questions.
together
fragments untold. closure Freudian
real few
still read, away.
looks
still
slip? Perhaps. Lets take a final and shot try at to answering put the this
midnight
questions
finally
adventure to rest. Second since me the question we were in real first. It was east came the the more to same This trips Yahoo, edges, were I What if by like I was to and out sunrise For of sort I
moving pool just
back point (yes after I
Virginia. one
turning the about the
when
drowned February and the for out? legacy credit eviction
waxed early
poetically Dubai, pool,
earlier). call After its life, from tiled What Forty
2001,
Karachi the of God it my in
notices. kissed my They my
dragged what
myself my would
thanked made be
saving
first
thoughts? to
were
hadnt
followed card
immediately a hundred
family? debt,
thousand and
dollars
twenty
thousand
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dollars
in
personal
loans,
and
half-broken
startup to pay it all off with! With in had had to it springs would the business arrival, carry plan so us funding through relied on didnt also for before leads the on the that model we we We
thought our
next
stage
fell on it
through;
built sold go that on.
company it,
funding.
ourselves without The hurt
heavily
other seem to a
peoples rational look few at that more
money
mind just even a
shift as
required
alternatives would months, maybe
without
funding badly year,
implied the
current
crisis would bottom out. When the my all you cared about not I and the been I was a quick way to or end an of
pain,
this for
was
welcome had in near one wasnt the more
news
acceptable cash more to or debt
alternative. debt in
already future, step willing
crossed adding closer to run
threshold
absence
revenues would
have
personal
bankruptcy.
that far for my hundred-million-dollar dreams. Aleph us. was in deep them, a trouble a and couldnt was and no a expensive, salty health support the unreal ocean pay It
Without
California very on You dry desert short with
longer
Promised oasis that had
Land, caught and
just me
between
insurance, dollars.
supplies, Consolidated
cash.
couldnt
Edison
sunshine
was time to blink. How did I by know for an it was really to over? us Arno out. He
dropped
evening
check
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took
short
detour
from
t e l e c o m m u n i c a t i o n 49hosting chats, evening whatever it on in the food, our the little
industry cigarette balcony, he had if summer. I slept I on
event smoke, he it
CSFB Between and to help a
was long hazy
neighborhood.
offered would
invest us make
through
the
offer and want
for yet
two
nights, and then
once
again it as blood me Arnos it
spoke down. on it my
with
Qamar There I was I it
Ken,
turned on
didnt If my with
another already
friends enough to on take
shirt. why on
was okay Why
was.
wasnt
willing to I was
money, money on by
carry still comes
borrowing in? Side Lose
name? had
throwing faith.
something side
stopped
believing
predestination
it and you lose it all. For last such so Sarwar drive he a it kept faith I simply didnt heading his compute. back how The and faith longer signs and On our Dana with have about or was at on out
together, belief in in
from could
Point,
questioning himself. lost no the
someone debate in
strong
religion
little on. I
dogma, raged Sarwar, obvious work.
practice, had could or I
hypocrisy, just a was turn
belief where and
systems it
hadnt this could
myself
reached ignore
crossroad
that
destiny carry figure
blindly
around
49
A catch all category for mama bell, baby bells, wireless, broadband, infrastructure and technology companies dedicated to transporting the spoken word from one end of the globe to the other.
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where again.
the
nearest
exit
was
and
start
over
Was it worth it? Yes. market with enough Nothing about three The really the years led on to of of of a fact led and list goes later that the those my other I to was was offer around waste. and put to What to we work at an at my the by by dumb) as learned online training education
instructor to take
interactive faltering
training (or
Alchemy.
brave from me
50
economy
entrepreneur AnnuityNet expectations strongest side with a
Shane became side taught
(www.annuitynet.com). pillar personal
Managing credo,
lessons ,
Avicena but put to work at Alchemy. This April of course I had doesnt all was change of the fact was had that in and and the
2001,
when
this I
actually loved have
happening, cared for
heartbroken, that I and
miserable
inconsolable.
Something died
didnt
strength to mourn for it. With doing this context, a all given over the again, choice from what between and I would
accepting
six-figure
offer
Viant
Avicena
choose? You would be surprised. Would I do it again? like In a heartbeat, will come yes. along Why? and
Perhaps
someone
Sarwar
50
Startup Roulette: unpublished paper.
Ten
Myths
That
Kill,
Jawwad
Farid,
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dare would like
me my
again. the other
Perhaps plunge varied
wont by
need
dare
and will
take
all
myself. fate
Perhaps,
vices,
itself
tempt me to sin one more time. The and many perhaps aside, is at and is little ones who heart I the that cash, make I am am a builder to do doesnt enough a lot of to the
making The
companies reasoning
what
wired
best. matter, lives, heart, figure
logic given and it
what enough most it
matters time, The a
entrepreneurs
finally
manage are
out.
ones who keep trying until they do. So yes, once store and I up have on had Fawzia personal only with world his bare he a chance repay tag to to along catch of for for in my my one an is
breath, debts, Because the else one is
reserves,
some
convince on a the
more ride, I am destined to do this again. level, worth and has hands; entrepreneur a of living a
crafted
everything painful
cheap how
imitation vainly
reminder himself. Why Is did there help I
shortchanged
have an
to
blink on that my
or
Why
did to,
we not
fail? I.) that
(Asked will
with a
emphasis avoid
have you
checklist you
can
follow
fate?
Sidestep
failure?
Another book, another time? I would of make us a lousy walk novelistlet is no a different me give away my
the Each
climax
again. will
There
real
checklist. and
path
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maps,
legends,
and
convictions
would
be
worthless on yours. Still, over Not time hope be a thought with and that midnight of has been and that or a I a great do to my companion pillows head I and have in the left
creaking
beds
sleepless would desire out the of
things my next
differently. back in
51
regrets save my
bleeding start than
business; ones I
more
blocks
would
classier
act
have
behind. Here is a little more detail on my list of
crucial problems, the myths that sunk Avicena. The funding mindset capital and partners The the fundamental mindset in that this mistake the that was sunk to to Avicena succeed get was and only way
compete capital be easy. This Fund grant part would US$
business and that
venture would
funding
getting
funding
mindset at of of be
was
reinforced early to as if 2000. test much Business
by
the
easy Eugene
money Lang a as
available
circa US$ the
The School
Columbia
offered ideas
10,000 by
product as an
greenhouse investment
incubator your
course. made
This the
followed
additional
250,000
venture
final cut.
51
As
in
athletics
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Within the
two
months on and we the the US$ and and of
of basis the
landing of the team of an had
in we our
southern plan, put offer of the stand to had
California, together, referees, valued firm. behind over two
business
credentials
support 23 we
52
earlier
received Sarwar the
indicative for at 30% to at US$ agreed valued
between Aleph a years
million priced market
commitment
250,000 four
five times that amount . With only sell aim 8% an the for as MBA and get and a decent way with first it funding, depart The but business to do build your the plan, was the to
socially plan, exit, the fist
acceptable
this
business, a we venture had me a long
conventional
ex-CEO. fight,
time this,
capital verbal
associate
suggested
didnt
take
to come around to his point of view. What were and did we a we do? on Our only first share get stake delay in and a for slice reaction large in really and this was that we
sitting if we
something
substantial bounty price The a with and only where maybe few term calls
should
others retain way we sheets to
could a to
great get a
majority keep was
ourselves. and to
larger
better
valuation had in
funding the lots
stage a
customers, cash hands, our
revenues, bank, of VC phone
profitability,
to return. That was the general idea.
52
Our internal pricing reflected Alephs cost structure out of Pakistan. The market priced our deal in terms of replacement cost onsite in California.
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The
resulting get so
focus the we that so so
then write could we that we a that on
from a
day plan better
one so
was that
on we
funding. could summary attract hire Get own and able generate and
Update that so so
business get
funding;
executive build funding; funding; funding; funding. of its this we how be to
funding; get get get get mind
technology talent
could we we could could and could life we only and
customers revenues became
that
funding raison to
took the
primary Once goal,
driver, had then figure
motivation, would out
dtre. a
achieved
nearly
impossible take
breather
build the planned business with our new cash. How was by and read our did the the the Get funding in plan fought, of from that There else the and model get died, the the and work? The piece
fundamental summary. You
component business lived, In 56 and
funding
executive survived we wrote on had new when the to based who to time on prior a
plan.
Avicenas editions
lifetime, plan investors amounted came at to a all a work
updated it. Over every
commentary edition business
feedback two two and a years, weeks.
four-man plan of
team
would
only
nothing
submission
revised
edition
promising
funding or strategic investment lead. Half was plan. spent of the year to the before few the move a in to California business were board feedback
dedicated The first from revising
building months plan
better with
California and
in-line investors
received
angel
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members. search executive
The for to
last
few
months were
spent
in and
frantic almost
money summaries,
allocated
completely
updating,
editing, strategic
modifying investment
proposals, and the business plan. When it the I look back at the effort a now, had I wonder waste. gone if If
was
nothing
more
than
great
big
same
effort leads,
and or
intensity more
into
business marketing generating
development activities,
discussions, productive may Avicena
pursuing revenuehave been
looked back on with kinder eyes. If the hire it was any consolation, and model create own, and founders above: the your any most were Build M B A e s q u e 53 driven the and in and If by the your or you may to set,
plans,
startups, actors, burn nest a that your eggs you good of
get-funding the
stage,
process familys credit put up
friends, other easy hands with money
money
can
get
your show and real
on. the
enough colors the and
right
combination actually turn into angel cash Once would since the a and the
fire,
someone needed
underwrite theatrical real-life arrive had just plan
make-believe before you ran
attempt this of one them years if party. by of out
production. just been was over to your
Hopefully
would
after
post-launch underwritten a bunch left
investor, no
expectation through would one
that the be
follow
next
few
wish
behind
53
As
in
traceable
to
some
one
with
freshly
minted
MBA
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your
production
actually
became
the
hit
of
the
season. Unfortunately, businesses Businesses resolve, was not was no had that to are that or built is from and you not the The how you up for build with the was was were quest was had
sustainable values figured over. no even you to out
franchises. ground and
commitment, with the the minute funding; to
businessnot likely, get
funding. game was
biggest Your if that
downside business
funding there you the you there
with
funding funding, franchise
business. consumed left
Sometimes so to much give of the
fortunate nothing
enough
receive
wanted to build. When Chescore, it would on. We Himalaya, that had get and it Hiteck would there to get was passed be a no and
Pearson before to carry
indicated
while reason and
back,
failed
funding
the game was over. Moral you do of a the fine story: job, Build funding a business will find first. you. If You
are better off not looking for it from day one. Lessons learned: a. If how it, fund you know until the what you idea. you you get If a is is are it. doing If you money and cant will know move get not the much drop capital need, dont
forward
smart
you,
there have
reason. seen in
Either the your
investors before
already
model space;
(somebody
already
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the they
investors and up have add
have at a or
invested money the you a for
in or
something prestige; and they in a what
similar dont it and a
have to to
lost
looked time)
dynamics are it.
reasonable
payoff lacking
reasonable will
take
execute play
Sure, but
network will
references
role
ultimately
venture
destined
profitability
find funding one way or another. b. If venture capital if neighborhood enough, but wont fund wont, may funding it, your will. be is
customers friendly
will;
customers it
banker
Interestingly counterintuitive,
finding
no guarantee of success. c. For most or the entrepreneurs, ongoing equal case. profit deferred and to capital of cash That or in payments is and is the is not into family the on
initial always equity, savings,
infusion equity. Debt
generally
convertible personal to
straight
debt,
reinvested payments customer down
business, and
employees
vendors,
work in progress are all sources of cash. d. The last to four easier sources to In the of are internal, and and control have no and or have years
relatively compared strings they seen
generate sources, the most cash I
external been sources and
attached.
last
15
have
reliable have used sources
dependable information
used.
External
credibility
problems
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attached for When
which do the is team will same plans include capital of
are or
difficult fresh to the
to solve
address these and A with
first-time they
entrepreneurs. effort
attempt fatal for
problems, distraction four-man limited customers than the business formal sources venture
resulting fresh
business. on flows on
entrepreneurs cash
credentials team or of
focusing working loan capital.
signing faster to pitching formal and
generate
applications (Here angel
sources
lenders, funds,
investors,
incubators,
similar institutions.) e. When fortunate term the enough sheet, of an to what equity the receive the a
financing generally sheet Equity alive need is value second well, focus between control funding Who you outcome and and to only
entrepreneurs term is you twoby fair the do represent. venture
misunderstand concept has a value As if
solvent. solve to your need both one two. get
entrepreneur, maximizing first represented value or and control; To the Most
riddle The owner
dimensional value of is you of on the and and percentage
equations. ownership, probability to or
dimension
market of
stake,
survival.
maximize the can
combined founders but have
dimensions. the
other retain or
difficulty
tracking You no
interaction majority can get what control. and you to
funding
ultimately
relinquish
relinquish
control
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value to or
they
bring of
to a
the
table as
in a and
addition on you the can business
their its a or
cash
has your
direct survival the a of
impact
probability have exit your small a is
owner.
Combine slice of by to end pie
two
fairly
substantial Capital and a the wins. bet on In has
full
nothing. capital. whoever to I will
pricing
driven
market
conditions
access
lender/borrower, relationship upper (If I hand was a in
investor/entrepreneur game, man, access capital, not
betting
the entrepreneur.) f. Capital, form, is partners; allocation allocation contribution services, In failed not often back, are late. Business developmenttoo little, too late How them do you of generate How do you their revenues? get and the By selling By to you customers! aware customers? making irrespective not with of free. partners ownership on implied of of With its shape or of The of cash. is held
capital
comes
come and the
questions equity. basis or are
occurs network,
capitalideas, capital
relationships, implied Ideas
ventures, are or not cash
contributed: away,
services locked
delivered, infusions
networks come too
relationships
disintegrate,
needs
solutions
provide to fulfill those needs.
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Welcome probably and
to get
sales, (biz a of
marketing, dev these for lecture three for a but The
and on the
business We could from a on when be the nuances lets
development
short). terms
day-long dev guru, three
subtleties that
marketing/biz assume revenue but the generating
second frame may will
all
activities time occurs result
focus
revenues.
generation ultimate
actually long-term
differ,
same in all three cases. At in Avicena, with the biz amount else dev dev of happened limited I at had the time in left firm. when I retired short over Our took head firm and tied with very the of in
infrequent everything first time a April The as the big biz to
episodes
with
follow-up
happening the
activity with New
happened recently and just out
meet five in
accounting York, came our firm that into the
consulting before of that
2000 leads
graduation. meeting offer from our
translated well big as
first to
angel
investor indication us as
initial
informal
five
represent
accountants. Then with took gauge very nothing for four In 40 months August and as and I went under and I in to
technology, commitments. time to the
hiring,
operational, customers D.C. as well
content Tampa,
September,
meet our came for In
potential as
New
York, pricing leads
Boston, ranges
Washington
interest strong
in
product out two from
test Four but I
possible
before
launch. trip and we
this
disappeared follow
again
months 2000,
didnt did the
through.
October
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formal received follow January tour was on of again,
launch an up, and and
at
an
industry did went blank I did and
exhibition, a lukewarm In whirlwind then This of Dubai tour highagain. a
acceptable then Dubai, clients two February
response, 2001, and
Tokyo, by
Karachi,
meeting
investors. months legwork legwork
followed
dedicated
intensity partners.
business By the
development time the
focusing started
strategic
investors
and
relationship
yielding results, we had shut down. Somewhere insanity, high-end of my I recover in I biz some between, also dev of out in a to moment hire so that of temporary additional my had moments we very is hire track could by a in the and as The a end, them lost not best
decided could the a be
two
resources leads biz their when on dev
that we
blanking
rectified Toward You own.
and the
inconsistent realized leave of that them
follow-up. missile. on you
resource cant They and
fire-and-forget and wire-guided focus performance bottom-line or the well this burn fact mode their
work
direct and
queries
evaluate feedback the you
their
based
customer Without are us
improvement. the and cash it in take you took the
direction might them. put
performance months dent
measurement, to
paying
missing sizable
finally action
accept limited
corrective
incubators
resources. Moral and, of the do a story: choice, Do biz as dev as as soon as
possible, given
technology
late
possible, control
never
relinquish
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of
biz
dev an
and
cash-generating and consistent
activities performance
without
objective
evaluation mechanism. Lessons learned: You may have a great you are product, out of but and without out of paying customers cash
luck. Answer these questions first: 1. Who are you selling to? 2. Why will they buy it from you? 3. Whats in it for them? 4. Who will sell it? 5. Can you sell it? 6. 7. Do Do you you know know a anyone who can be a fund ready this customer today? customer who will from day one and buy it when its ready? More you hard Who be you from questions find cash will able him? dont to a to find to pay ponder for before who you diving will have in: part to Can with he it or
paying
customer what
offer? Will buy
these your
customers product? to at answers
for Will
you? they
sell have a
Without
these
questions, revenues
shot
generating
surviving. Next truly question: delegate Can you really outsource or for or that
business
development
matter any other crucial function? When save was your the last that time you the were your part who of an
organization
found
rainmaker
would
soul,
your
startup,
investment,
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your your
clients, life? In from on or this
and When real the your the
bring was life on
some the you the
sense last can
of time
sanity such of a
to a his
rainmaker arrival? yourself impact on to valuation
delivered
promise never have
divorce direct your Hold
drivers of we
that your get
immediate growth until
survival, business. to the
thought
lessons
on leadership and heroes. My love affair geeks that with are technology with to a technology chip of I 20 in as
a competitive advantage Techno heads and value buying born them should for their or forces I worship since last technology need have been
acquire
trinkets toys
irrespective know the
addition. techno
years.
Avicena was no different. During toy and have time, was the initial XML, but just since tools research and a as and was to ASP JSP phase, pages. the techno of
54
Java,
Outstanding time would the on and
technical
complete from well with up, on as my by
waste
resources performed
Microsoft we
one-tenth spent debugging,
resources, working, Java. I wanted
capital also
learning, deploying binge from and any
picking stay
anti-Microsoft as the possible firm in
far
standards
sprouted
Redmond.
54
I know I will be shot, discredited, burned at a stake, and spurned for saying this since I did the same to Sarwar when he first suggested this. Sarwar as always, was right, I was wrong.
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In
the
next became T-1
phase, the we to two bought and
Avicenas toy. to show up failed a We put
web had in to
and a
database to of
55
server shared machine tried street.
next
access beast but across at with
a a I
decided could one a
that
off
clients .
picking After I
on
eBay typist
lost the online enough
magnificently austerity,
faster
attempts box
loaded
power to serve five Avicenas. I of could have gotten the to an wasnt server RAM only never or our on got by just I as As well if this out with bit and a (OS) site five and
spending upgraded gigabyte that Since visits, times pretty. Just and we
one-fourth the of
amount. a dual a OS
stupidity
enough,
went
processor system
and
operating single to or
could
support the
p r o c e s s o r 56. to
around size,
customer grew the
upgraded original sat
additional
investment
there
looking
pristine
before didnt it
the get
end, we But we
the to we
toy
became need,
corporate use, the and some our on
functionality production built of the
that
didnt
didnt out ahead by
around
rolling still it be to
server.
went
because
thought
addressed raised
questions
likely
corporate customers.
55 56
What clients? That is the power of better even if you dont is better part.
Intels advertising. More is have the parts to do the more
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Moral measure Ask am
of of it
the your or to
story: tech long for answer the
Where
is If
the you for I a pay you dont
value cant do do it. I it what
addition
investment? question, it itself? Is a will
yourself buying and $250 $70
How pay
take
Can Why
sooner or and just phone? PTCL
cheaper? no-cash to set up a
there
cheaper, PacBell line do cell can a
preferably then as
alternate? month
commercial when better)
phone
dollars
well
(perhaps
with
Lessons learned: Few of people understand Very few technology how have IT creates the to the and art a delivers static train value. mastered
restraining and they
projects versus To
remain mix
achievable normally languages, between factor the and
target become.
runaway add in
this from
business different sets the of gulf
technology and
teams not
speaking to
working Not to in the rein the
different bridge the the the
expectations,
willing
them. leads to cost, from
understanding understating and the timelines, impact?
technology commitment, effort demon. future. Who
required suffers
technology Deadlines, and
deliveries,
customer
perception,
survival,
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With
this
list
of
complex
conditions, earn profits?
shouldnt r e n t s 57 right Shouldnt
technology rather the than
investments just in
economic technology
accounting getting
difficulties
represent a substantial barrier to entry? I think n o t 58. Yet businesses makes I see as a done uses time overemphasize in a business business crutch its or for I the or a a plan
contribution product for value the a
technology Any that a
success. venture
technology advantage,
technology-related driver or management team
factor has
competitive not
know
homework
and has taken the easy way out. Technology intellectual facilitator, not a advantage is an not a competitive (IP) is. a advantage; is a but is
property
Technology requirement, fields.
accelerator, level
competitive un-levels
advantage. playing
Competitive It
57 Accounting profits exclude the cost of capital before determining the profitability of a venture. Economic profits or rents are profits calculated after considering all costs, including the cost of capital. Economic rents (fancy economic term for profits) indicate the existence of a competitive advantage. Just because technology is difficult to get right or because everyone does technology badly does not imply that it bestows such advantages on its users. 58 See IT doesnt matter (HBR May 2003, Carr, Nicholas) and What is Strategy (HBR, Porter, Michael). In the latter Porter argues that Operational Excellence (one form of which is technology execution) is no longer a competitive advantage. Carr updates the debate in his controversial piece and suggests that technology is now part of the infrastructure dimension, hence common, ubiquitous and no longer a competitive advantage
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available restricted everyone
to can
small it,
set buy
of it,
players the store
and it,
the Not
access build
represents
edge.
steal
it, use it, or license it. Technology allows store, playing latest as most you without to do all is with use, It IP, of an it or you on the the above other (build, levels Without at as only Not hand, buy, the the a good the
steal, field.
license) are you at
and
enabler. are
technology but of or your
certainly
disadvantage, faster,
competitors.
better, with
cheaperjust
par
benchmark. A it of competitive stays the 800 how at advantage way the and breaks for 1500 the meters the benchmark. ensures life god, over or never The In in a a and with no and of A
sustainable advantage. sustainable matter threw up. field outrun them; gifted the
competitive that T a r i q 59, meters much
advantage Pathan Greek
that the had a No I it and of of of and field
master me. heart make
events,
competitive effort, gift; was an all I difference, a
advantage time, I could
money,
Tariq
had my
didnt. showed
track field I field most
training and in
enabler. of them; up with I
beginners,
training I could
could
outpace an event like is
professionals, runners
keep
filled Tariq,
talented
stood
chance.
Technology
like
thattrack
59
See the reference to Tariq the chapter Why Failure?
and
my
athletic
past
in
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training 2008. It
in will
the get
800 you
meters there;
heat it
at
Beijing, help you
wont
win the race. What happens is when a you misjudge the as the technology that to build true, not you part. or leads can Not is was, economic
dimension? technology a mistaken you it,
First, belief once miss that
assumption advantage as you rents. if it long
competitive economic Even on
will
earn
because, could More
again, out to
technology the
intellectual still is
property. earn
execution
required
any
rents,
otherwise, than just building. Confusion, Evolutionary On a new is to perfection, product and direction and
development the were to Was
solving thing or you what
the wrong problem, problem venture be we timeline, We was. were trying last not need what our confused. market clear it about
problem target
solve
content
generation, continuing development programs? all of focused solution,
technology, professional needs, In the In one, the or long
process education,
outsourcing, individual training to solve have then
corporate we run wanted we a
run
these. on hit
short
should and
developed
reasonable
revenue
milestones,
moved on to the next big problem. In our infinite to the had that we an wisdom in we jumped of talk to from one
problem thinking until
next
search
perfection, customers product
couldnt absolutely
we
polished
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that from
would one
blow
them to the
away. the ideas, value of
We and of
jumped new the that
around
milestone monetizing
next,
incorporating concepts work we done had
feedback, without on
suggestions, editions
previous
problems
already solved. Lessons learned: Do markets accept for is imperfect a case in side Not is a bad are products? point. Yes. is The the demand Scud pills Star market curve for with Trek set highly inaccurate North So Korean b o o k s 60, treadand just work the
missiles
badly tires,
written Star
self-help effects,
unpleasant sequels. There that curve
separating imperfect feature with.
Wars
prequels, products, willing higher to on
ones.
minimal
acceptable
customers than
Failed
ventures
climb their that
perfection ignoring and
successful product get to
peers, revenue
financially
viable
61
development
rollout
strategies
generation more quickly . Is perfection if of done necessarily it is perfection better with earlier a bad thing? or a It not. new on while
depends
evolutionary delivers by products
Evolutionary generation the work
building
generations
60
Such as the one you are holding in your hands right now 61 No concrete academic evidence but see Dealing with Darwin, Geoffrey A. Moore, Penguin Group, 2005 as well as Block Busters, Gary S Lynn and Richard R. Reilly, Harper Business, 2002.
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those
earlier Each that
generations generation be The of for same
continue provides in works
to
produce seed the when new close cars, diet
revenues. capital next
the best each
can
reinvested strategy can customers new
improving
release. to the flue
manufacturers version to full price
products it.
resell and and
charge improved
Software,
laptops,
textbooks,
remedies,
pillsthe strategy has worked for all of them. Non-evolutionary changes means periods Case in but that from you your to you use tell perfection in isolate them me introduces for the same Which longer away an point. versus a more
skips
between
releases. throwing a bearing cars is one fuel
yourself as
customers, hydrogen
opportunity hybrids
point
which
successful product and why? Evolutionary dates, fewer each go with there less higher perfection revenues, The a and a has more shorter release and in
visibility, introduced the are set, on
headaches. release products is and are smoothly, that still without
features customers get for to need tries
manageable actually
releases happier while Nonwith often
more
desks them. more
evolutionary repeatedly. It would be
perfection
do
exception
fails,
simple curve.
if to The
it
stopped
here, curve and to
but is
it the
doesnt. perfection degrees of
Related
this against
debate effort needs
perfection
plots market make a
perfection Each
acceptability.
startup
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choice The
that
balances its is
available on the
capital, rung most
market curve. of the
dynamics, perfection first.
and
spot will
perfection to
decision
picking
which
ladder
lead
revenues
Here are the rungs of the ladder: The lemon the to A lemon product any with get an requires does The minimal not sales not of the have they we is when stand, a a will a only effort Not is but or
because lemon no
work. market team, sane
acceptable sales
customer. business
aggressive This is
sustainable choice cycle it, By The strategy to or a a or
model.
Customers desperation. like this: have the we free has as a
ultimately rational The The to
wise. but is
the runs
result By
justification sales deliver have
something
long. time and
time find
we
we the
would
fixed out, offer venture branded
problems would upgrades. daredevil nothing lemon
solution lemon
last-resort,
used
left
lose.
Once
youre
maker
lemonade
the
reputation
tends to stick. The If Band-Aid the lemon the and to gets The or to product quality is functional, completion, It has to Band-Aids effort, 20% done has the ship will handand for a a before
minor
packaging
assurance
issues.
represents deadline with the
30%50% here.
Band-Aid because normally holding,
is closer work get
80% done. is genuine remaining and
expectations tired
management looking
commitment the client
starts
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different Band-Aid deal. It
pair is wont
of if
hands the
to
hold. hold
In a
principle sale or function
a a is
good
enough
to
hand-holding
mismanaged. The that move-in was ready the home patch the line product you the and home will will The the odd faucet hole in that the
doesnt utility power, Problems you look out had your live
work,
on
walk-in outlet goes other find
closet without
overlooked, cabinet, phone you the
the
hidden that in long also in
power find,
the that with
nowhere. words, If that that just around in is if you 9 a
enough.
deep of 10
enough, cases, evolve
product improve that
question
secondtime new
or to
third-generation
edition itself been has
has like the
lived-in
market a few times. The you you on Lexus are have is the in The a minute a for and you step well The Drive of the is will a inside From worth first hear tires, a a the thing the and Lexus, to you wind the price
different is beast it. you
world.
finish
details, notice rushing crunch
this paid the
silence. grind The
lesser
vehicle
freeway by, of the
gravel.
Lexus
sound-proof
cabin from paradise. Real-time in do to selfyou you than software can see the 80 count. the when 30 you or a You years set product for see of out that has been but
improvement
mode
more baby
generations aspirin two a history rules Lexus:
product are make to
behind
milligrams?
There
remember
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You you is a
cant cant labor
get build of
it it love
right on paid
on for
your own by a
first dime.
try
and
your
The
Lexus check
crossed
signed by some one else. Opportunity cost of perfection What other features is if it the the are cost needed of the to make cost your of product addition perfect? The delays opportunity that product
perfection Ultimately,
features launch. what
incremental
cost
dictates
you build and what you ship. You can choose the out the by it On the easy way has out to by by agreeing and the to we
everything fighting defense. is financial, technical side the the is not
customer
say taking the
then
internally technical the and all of
cant-go-wrong-by-doing-what-the-customer-says side, to decision the of and complicated and need consider impact issues, to that The
business, feature of side aware
schedule technical
perfection. it
business accept disrupt
technical strategic
finds
difficult
nature
decisions
its schedule or impose impossible deadlines. Who, how, or what defines the middle ground? The like will Market. to on Of the all in the things act that you the will that that you would to you market get
have
your
offering, ground
need
decide
balancing middle
acceptthe
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to
market
ahead
62
of
competition A is more is
and
clear
it
in a
economic generating Lexus. Getting small
terms . product is out is
market-visible, important than the an important more of merit
revenuethan features. than on a idea
Timing it
more there
important
perfection. pilot
Testing more
the
important
than
elaborate
and expensive rollout. Dont you Lexus. ready buys that wins them. get You home; you that allows me just wrong. as aim between that you can to be customers, for a Try a shipping as you solution and the and when break time, a later a lemon with a that bank; money; of you and the
are
dead
were
works move-in that and need small
somewhere
Band-Aid cash,
doesnt tuck
away
handful
cashed
The
wisdom cuts
of
borrowed Why on
time,
distractions, is a day to
and
short You you end. The
diversification borrowed cash is time. a day
fourthat the
letter word are living Each dont generate closer
new-venture and the route
lifestyle financially known stress to
burns faster mankind. the
you than The
out any hours
personally professional are longer,
higher,
baggage
62
There
is
no
inventory
left.
Buyers
equal
sellers.
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heavier, sacrifices suffering and basis, choice. stable the support you
the is
money start novel
rarely calling. noble, your
enough. but the or as
Then it
the the daily your a break
Initially on a of
and
extends
begins
to start
touch a few
family
questioning months walk system, and
wisdom so, With zeal,
Within support down system
without a you
ordinary out. inhuman
mortals
door
stable might
or
with
last a few months longer. If end same as big you is game as know your that best all Is you have getting cash the to are the a few Get any end with end months, to the the game one ones? game
what
survival
strategy? through end
faster. Can Can you
generating you
means
possible? yours? hit
adopt reach than
someone
elses game of
rather
hundreds
small
The answer to all three questions is no. When game the and pick we was Aleph with up (Aleph with obvious. that Sakura our of the and Avicenas Mitsui, the your the you the Sakura cut bank had throw to team) started end on and Who the to with
speaking
Sakura
apparent contract the back it. Given had
Close get in
platform, money may Avicena way,
from come left a
deal,
where we
knows, contract
even used the lay
training
joke.
intensity be put on or Sakura Sakura
conversation, But It blame with up ready day
Avicena me. Even the cash
hold. Aleph. to
doesnt lie on
before scene, through take cash
Mitsui
showed earn or
opportunity freelance priority over
consulting core
trading tasks
would
Avicena
because
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generation there and
was you
key. buy
Sell
10
days one
here, more
10
days of
yourself
month
payroll and bills. What this meant time whose end the was was only game. with that the already-limited by game unrelated was not to with and When up on a not give is simple
borrowed activities postpone get to freelance certainly the your end own.
reduced The your or be not end day able
contribution venture,
revenues not If on you
consulting you to must are the
trading project. to you stand to
someone
elses
comes, percent
willing
hundred
venture,
should
be doing this at all. Moral are Focus go of on the story: to what that big the do, you come game Make not money with what and try you not to
trying
with your until
something doing you are Dont
else.
started
distractions after
way.
suitably
armed and dangerous. Lessons learned: Should revenues you really into a add term From the care the comes in about company? word? and all many value what Why brings is forms which called vendors close that were Because of
diversification diversification none of a which short on solve cash getting take
four-letter any
distracting problem to to areas they
logistical owners to pay get the
flow. into new
doing bills, into path services
freelance
consulting contracts, them
side
ancillary ventures from
farther
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expected to
to
follow. you between
As
Geoffrey first and
M o o r e 63 p u t s understand and
it, the then
succeed
must core
difference
context
focus on the core. Models products Profits earlier, Growth Growth or that and work stay growth. Growth is model the are on those track Product Sustainable used to distorts Profits variations that that until start they Revenue Growth. to When generate revenues with hit
sustainable
diversification
Revenue Sustainable push the
Product other
product further down the road. The have it. game is not and just in the a have you about line to you revenues. of to venture of It out is you of and that
about To
succeeding chosen do that
business Product from
making you
viable get run
Profitability mission.
before
out away
capital.
Diversification
leads
Hitting it big The paradox of large customers Is new to there any correlation executing I failure? rare between large believe lack and targeting and New depth bad so. the large customers, venture with handle orders,
ventures, Without
exception, new
large calls
assignments depth, on pricing,
contracts. make terms,
sufficient
ventures
short-term
delivery
63
Crossing the Business, 2002
Chasm,
Geoffrey
A.
Moore,
Harper
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hiring, agreements failure. Its wins your safe case about allow mode. and
concessions, that put them
and on track
service-level for eventual
evolution. of small to test large base you A the
Success not
is big
built hits.
on
collection
wins, build and
Small refine in
credibility, your base for with your you
product,
fix
processes
customer from
smaller business grow
orders higher.
provides
validation
which
can
Although projects in a depth, done,
the
numbers and and
look
good
on every
paper,
big
challenge
stretch
dimension stamina, you not are the
startupresources, execution, stretch marks and
processes, When are bloating
capacity.
only side effects. Big large like deals also imply and may they least in these doing and business and prefer with a
organization, certainty They but at who or
large
organizations dislike mature The with the the
permanence favor also mature the and
mistakes. companies burden the upstart startup. of
earth-shattering management. lies or for startup selling does not
technologies
proof
instances
upstart When
introduced managing,
running,
this
credibility
exist,
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the
venture
64
ends
up
negotiating
from
position
of weakness .
The I
search believed
for
gods that
and we one
generals needed for I us
Leadership
and Greco-Roman tragedies. high-potency to attract We was wrong. Call leadership talent, wasted air bills U.S. should many during and from hours day and
money,
and
customers. MCI of to
expensive World
international phone effort) in when the we
time
(four-figure months and been
recruitment candidates to same us, time talk the
interviewing have
convincing spending
elsewhere
chasing
customers. To the most be fair, this I belief was how We me build skills was primarily about of in a and the but of was driven of by the
fact
that
clueless to had
one
essential knowing to to how their to
required attract money
business convert bank money and to getting something
owner: I knew
customers strangers solve
cash. give
technology large sums problems
education
alien. I didnt know where to begin. In my prior had consulting been O m e r s 65 experience, domain. All I lead did,
generation
64
If you still end up taking on bigger customers and need help with negotiation skills, the absolutely best book on the subject ever written is Jim Camps Start with No, Crown Business, 2002. 65 Omer runs Sidat Hyder Morshed Associates (SHMA). It is now one of the leading financial, capacity
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really,
was
take and
already convert and did lead I
pre-sold them loyal my
(by
Omer) large Omer the be I
customers consulting opened deal. built, someone was the At
into clients. closed had could the the
engagements doors, show, the sales it
technology-guruOmer piece we prospect to hire getgetit worth
slash-wunderkind Avicena, and I make again. a conversion, but and
and closure
generation, that
always
assumed his In one
problem, sense,
not
mine.
wrong was
leadership-in-place-before-its-really-needed mindset funding simple and it the from extension had a only of mindset us similar result;
distracted
constituent
our focusthe customer. Here about in the about is how the rhetoric own well went. your bad. Leadership team Leadership sacrifice, a call chosen and is is and when
holding times to is of
your as
and as
together
good
difficult else in
choices, stand the about out room
selfand has
courage
make
everyone that is a
silence. accepting direction not
Leadership sign
listening or and
modifying
behavior
changing
adaptability
strength,
weakness. Hence with the to name do all The of the in above place, that I the we need the leaders sooner, to
recognition If
and was
better.
question
supposed
ask but
didnt:
you are
only
person in
development, in Pakistan.
actuarial,
and
technology
consulting
shops
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the all
room, of
do
you
still Why
need
leadership you do
to it
do by
the
above?
cant
yourself? Perception because because enough, succeed venture and the grow of of the is that any more new at ventures the top fail than dont newfeed as you an and in a need and onlychiefs
leadership converse of with
issues is just not a to
other
reason. true. few
Interesting They In a to
because setting,
leadership. time
mouths is
reducing ultimate and beyond
travel goal, a and the of a
profitability Once at as
leadership few can be
incidental, achieve
marginal,
sometimes
irrelevant. mouths, looked increases. you seen
profitability, organization, contribution garage with l e a d e r s 66; managers.
value-adding of souls, havent
potential But dont the
leadership need then
handful
you But
doers, you
followers,
have-leaders-in-place
phenomenonseven
of x title in a seven-man organization. Moral of the story: Build a business first, and then go looking for leadership. Lessons learned: John Whitney, did the an turnaround at interesting, specialist and management School, professor Columbia Business
inward-looking
66
See Bhide,
Boot Strap Finance, The Art HBR on Entrepreneurship, 1999
of
Startup,
Amar
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exercise Prince at their they when

67
in
his He and a
In pick
Search one a to is
of to
Perfect look back of a to to of each and
course. lives were The than that this
asked
students
instance teach the
follower, was a leader
manager,
leader. important recognize become to handle
objective being all and
that
more
ability have
leaders
sometimes Their is a
followers
managers.
ability
transformation
measure
their effectiveness as a professional. I If am not get make and denying are you that leadership to fail, quickly. has bad an impact.
you
destined there an for
leadership leadership emotionally but the
will will
Great
interesting, longer, rewarding
educational, ride,
insightful, moving,
entertaining, personally
final destination remains the same. The With point a goes great will great a is If the on you back be to a competitive handicap a be on the will advantage. bad not but
competitive Without caught man, we
advantage,
leadership necessarily advantage, chemo we to Leadership blame blame.
fatal. tumor
competitive ineffective too what late. that else be
leadership boogey when dig deep
against
tape know you
X-factor
things
dont enough,
should
able to blame it on competitive disadvantage.
67
Also Packer,
see Power Plays, John Simon & Shuster, 2000
O.
Whitney
and
Tina
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Closely
related
to
the
concept
of
marginal
leadership is hero worship. Where must are else do be a heroes clean that of of my come from? to From the see in models, in a owners that problems and some and they one and
investors facing can.
optimism they
and
insecurity
there
solution come be
cant
Heroes can
bewildering colors, (please
combination upgrades. take (you that for (I care are you me have
makes,
They
found for ( I of am am (I
vendors this
technology members
issues), am
employees function, hoping doors demons to fail cash have for from was (you next you
responsible board open your some I I
right?),
really locked going so you of the personal
could failed lenders this
these not sure line
through
network), running
before, (after
again), through no a me),
much will credit fit (I
account, extending partners are that until you
problems mile away, on
that
strategic
can
see and me
blind?), with this
friends for
counting said three that
contract), bear get we
family the do
you
would
years
rightwhat
mean you cant take this anymore?). There is no is life is after no Shakespearean bullet that will that owner, to if do he for you a but scalable, tragedies success. hire do an a
because Heroism or
there not who an job you
silver is
portable, Reality you by As expect even think
sustainable, good will a job,
profitable. is by
individual there one reasonable investor,
chance his an
standards them
crappy and the on
yours.
founder, deliver
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vision that
(sometimes have lain
articulated, before
sometimes
not) is
you
yourself;
reality
that they may or may not get it at all. Why do heroes they fail? too much, They long, do and dont they too they that Heroes know carry often fail where too to
begin, excess notice
wait too
much they to power only and with and
baggage, subtle
they
little, the
compromise structure when they on
fail
transitions them. beyond and grow by
change
around
because
organizations individuals; reliance who you a are,
institutions definition, army. as If may well
succeed hero that
personalities fits now
implies
one-man you
go
home
cut your losses. Closure All costs costs considered, a neat in US cash, Avicena
68
cost Of this ran
its cash about
stakeholders
$820,000 . not
(incurred
accrued)
one-fourth of the overall tab. The the big financial hits, he cost with was his just team one at dimension. I both me Aleph, On took with
credibility
front,
Sarwar
and
myself, my family, Sarwar and my investors.
68
Approximately $200,000 in cash debt and equity combined. 28% in services contributed by Aleph and the rest as sweat equity-undrawn salaries by founders and employees. Of the cash component, $80,000 was contributed by Fawzia and me over three years, the rest by investors and Aleph. Despite the MBA, because of lax accounting practices, only half of this amount was deductible for tax purposes.
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On and had
personal A my
front,
it was withered one It and
like
a was
death in that Something after lay
the we our To with in I
family.
related from
side
effect but
Sarwar
relationship happened. as Sarwar our 2001, a point he
away.
feared email During June made
day
thought south burden on few once
wouldnt
happen, angry be me. early have fair,
headed the a
exchanges final of
never
recovered. Avicena that every
said, wrote
exchange reading
lines
year.
In his words:
My problem was and remains a huge burden of disappointment, not because of Avicena, money, investment, losses etc. I had a business relationship with you, independent of anything else and anyone else It was a relationship based on love, faith, and blind trust. The minimum expectation of that relationship for me was an open line of communication, in which you would talk to me all the time and discuss your thoughts, ideas, and fears, just as you had once discussed plans and ambitions. First of all, whatever you were doing or going to do, should have been shared with me, consulted, talked, and more. I should not have been "informed", post facto, and certainly not the way I was. All it said to me was that I was no longer relevant, the folks who had worked with you, trusted you, lined up behind you, were no longer relevant, and if they were being adversely affected it was just too bad. No one, least of all me would have wanted or would want your family to suffer or be on the street God forbid. The second thing that was extremely important was that you should have informed me about your decision making processes as far as business goes, on day one, regardless of what they were. If your decisions were going to be guided by Fawzia, your parents, a mentor, an istekhara, or anything else, I should have been alerted to all of these on day one. I object to none of them, but if they were to affect me and the people lining up behind you, it
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should have been shared. I have already come to terms with all of this, and in some way have adjusted. These are the only two matters that troubled me. Nothing else. I do not think you owe me anything at all anymore. I have no quarrel with your decision or even with your reasoning. My only grief comes from the way you handled me. We in is havent Orange on it what him neither find met 10 or
th
spoken
since my by
our
69
last I
meeting to it and we the with
County,
before nor to
family design. each busy; Aleph hands and
moved suspect We other what me from
Virginia just lost.
September painful had we in
2001 . face been
intentional too we with
would
remember Alchemy,
our
Officially
have
resurrecting
technology downturn that followed 9/11. Post minute Avicena in (vendor as my I have become an bills even at firmer the last flow living for being and
believer invoices within flexible sharing not
destiny, and soon taking means and
settling as
supplier
credit),
collecting
possible
(cash paying p a y 70) , of
management) performance
time-outs (felt
(family), fair
(budgets), (ides with
talent
around
deadlines
launch),
information future
(managing ventures
expectations)
funding
credit-card
debt (good bye to teaser rates and 0% APRs).
69 70
Another book? Elliot Jaques, Requisite Organization. See Craddock, Kenneth, ROBiblio, Third Edition http://www.canadiancentre.com/ejbiblio/ejbiblio.htm#bio
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What not in or not
Avicena something
and
Sarwar you or of off It
together pick
taught up at by
me
was
that book,
could
school, reading It was were it Sarwar
the
greenhouse a school was living way).
incubator hard the
course, knocks
writing exactly it
anywhere knocks street
else. since till (he
believed in a good
not
hard added
you
physically
meant
one more
dimension to
my definition of who I am. Priceless or expensive? Only the next
adventure will tell.
THE END.
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Epilogue - Reboot
Working Mothers, Actuaries and Basel II: Alchemy Associates at MEFTEC 06 10th February 2006 Imagine: a. A group of working mothers with kids and highly coveted degrees in computer science from top notch local schools looking for challenging work and flexi timings b. A non traditional actuarial consulting firm c. A regulatory standard built around risk management practices for an industry that uses mathematics as old as time d. Beach chairs, loyal customers and a Nobel Prize winning differential equation e. Foreign competition with cutting edge technology, unlimited marketing budgets and an already established international track record Take (a) to (d), throw them in a salad bowl called Alchemy and pit it against the multinational players with unlimited budget in (e). Sounds like a cross between Erin Brockovich and a Disney movie playing the underdog against big bad corporate giants. You know, you have seen the movie; in a nail biting finish the under dog wins. But is that so in real life? Read on Jawwad Ahmed Farid headed back home to Pakistan from Northern Virginia, in January 2003, with a desire to do something that was different and meaningful and yet went against conventional wisdom. An actuary by profession with an MBA from a Columbia Business School, Jawwads meaningful version 1.0 was a traditional actuarial practice with a twist. Its first actuarial valuation engine, the core of the practice, was not written by an actuary or an actuarial student but a part time working mother. Erum Khalid, employee number one, with a bachelors and masters in computer science from Pakistans top rated and well respected FAST Institute of Computer Science, worked a couple of hours every day while her children went to school. Their first office was a beach chair and a laptop; their first assignment review of capital adequacy rules for a financial services free zone in the Middle East. The firm that rose from such a humble beginning, three short years later, employs 23 professionals, 6 of them women, 4 of them working mothers; counts 35 of the 50 odd financial institutions in Pakistan amongst its customers including the Pakistani central bank, the largest life insurance company, the largest bank treasury and the largest brokerage house; implements a home grown, cutting edge Basel II solution for Market, Credit and Operational risk that has won multiple industry awards; and stands tall, shoulder to shoulder with competition that has a few hundred million dollars more in market capitalization and balance sheet foot print. When we first started thinking about what we stood for as a firm, says Mujtaba Iqbal, Director of the Enterprise Analytics practice, We agreed that we had to make a difference in both our client and our employees lives. Not one before the other but a balance that ensured that our people
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and our customers did not have the same issue we had in our earlier careers. It has not been easy holding true to that vision but if there is one thing that has helped us get where we are, it is that balance. The most common term used by employees to describe the team fun to work with. The most common words used by the same group to describe the nature of our work fast paced, invigorating, on the edge. Noor Ali, Analyst and Project Manager describes working at Alchemy as An ever evolving strategy game, where every triumph is rewarded by an even bigger challenge What about customers? The one word customers use to describe Alchemy Partner. Commenting on this choice, Jawwad Farid, Chief Executive and Director responsible for the Enterprise Risk and Basel II practice says, We know what we went through when we had to decipher the Black Scholes equation. We take great pains to spare our customers that agony. Having said that, the process and the underlying equation are essential to how Risk Management works. We spend a lot of quality time with our users ensuring that they understand not only how to use the system but also how to break it. When we break it together, its the customers who come up with fixes and suggestions first. It is their solution; they own it as much as we do. After exhibiting at GITEX in September 05 and the Pakistan Single Country exhibition in Malaysia in October 05, Alchemy will now be exhibiting its flagship Enterprise Risk product, Alchemy Risk Manager at MEFTEC 06 from 13th February to 15th February 2006 at the Pakistan Pavilion (EC-03). For more details on this release, the firm or our work, please contact: Jawwad Farid/Uzma Salahuddin 103 104 Amber Estate, Main Shahrae-Faisal Karachi, 75350, Pakistan www.alchemya.com jawwad@alchemya.com uzma@alchemya.com
Alchemy picks up first prize at PASHA ICT Awards for Alchemy Risk Manager 06 December 2005, Karachi. Alchemy Technologies today announced that it won the best financial application award today at the PASHA ICT Awards 2005. Judged by an independent panel of technology and business professionals, the winners of the PASHA ICT Awards will now go on and represent Pakistan at Asia Pacific ICT Awards in Thailand in February 2006. PASHA (Pakistan Software Houses Association) was formed with a mind to promote and develop the fast growing software and services industry in Pakistan, and to provide them with national and international exposure, and recognition. The PASHA ICT Awards serve to recognize and promote locally developed software applications and services. The applications are judged in terms of creativity, innovation and excellence. Participants include leading software houses, technology shops, ISVs and consulting firms in Pakistan. Alchemy Risk Manager is a Basel II compliant market, credit and operational risk management solution targeted at Risk Management groups within financial service institutions. The solution is under implementation at two client sites within Pakistan, and has already picked up other prestigious technology awards and nominations in the business and professional categories earlier this year.
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Jawwad Farid, Chief Executive at Alchemy, on the occasion said, A good product has a great number of contributors and our thanks go out to our team members, customers, user groups, well wishers and industry sponsors who have all played a key role in helping us get where we are today. The PASHA ICT Award is an honour and testament to the hard work that has been put into this product over the last three years by all of us. -end-
Alchemy signs Implementation
up
Union
Bank
for
Basel
II
and
Alchemy
Risk
Manager
25th October 2005 Karachi, Pakistan - Alchemy Associates / Alchemy Technologies signed up with Union Bank today for the implementation of Alchemy Risk Manager as a middle office solution. Jawwad Farid, Chief Executive & Actuary at Alchemy Technologies commenting on the signing said, In a market like Pakistan building traction in the relatively nascent field of risk management is only possible with the continuous support of our customers and our dedicated and talented team. This is as much a win for them as it is for us. Union Bank is a 1.5 billion dollar bank that has been providing financial services since 1991, with 42 branches in 19 cities and a correspondent banking network of over 300 banks in 85 countries. -end-
PSEB selects Alchemy for GITEX and Pakistan Single Country Exhibition in Malaysia. 30th August 2005, Karachi, Pakistan. Alchemy Technologies / Associates today announced that it has been chosen by PSEB (Pakistan Software Export Board www.pseb.org.pk), along side 12 other companies, to demonstrate the groups signature product, Alchemy Risk Manager, at GITEX. Alchemy Risk Manager is a Basel II compliant market, credit and operational risk management solution offering additional features such as treasury and risk adjusted return calculators, derivative pricing engine, derivative risk management module, interest rate simulation models, Value at risk estimators, portfolio benchmarking and back testing tool kits. Jawwad Farid, Chief Executive & Actuary at Alchemy said After completion of our recent implementation and industry award, selection for GITEX and the Single country exhibition in Malaysia is yet another validation milestone for our product and technology. It is also a first step at exploring the Middle Eastern Risk Management solutions market. GITEX is the largest international IT exhibition of its kind held in the Middle East that will be held in Dubai from September 25th to September 29th, at the Dubai World Trade Centre. You can visit the GITEX website at www.gitex.com. -end-
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Alchemy Risk Manager Goes Live at MCB 21st August 2005, Karachi, Pakistan. Alchemy associates today announced that its Alchemy Risk Manager implementation went live at MCB on August 20th, 2005. MCB signed up Alchemy Associates for a review of Middle Office function and implementation of Alchemy Risk Manager on May 11th, 2005. Alchemy delivered 4 incremental releases starting 10th June 2005 and went live within 3 months of contract signing. Jawwad Farid, Chief Executive of Alchemy Associates, commented on the event. I believe with MCBs continuing and ongoing support we have a delivered a solution meeting international standards and flexible enough to handle eccentricities embedded in domestic and regional markets. This is one more important milestone for us in a relationship with one of our most valued customers. MCB has always been on the forefront of technology and system initiators and have stayed true to that legacy in choosing Alchemy as their Middle Office provider. MCB Bank Limited (formerly Muslim Commercial Bank Limited) with a balance sheet foot print approaching 5 billion dollars has been providing banking services in Pakistan for over 50 years, with above 900 branches, 750 of which are automated. -end-
Alchemy Wins First Prize at Software Competition held by KRL 26th July 2005, Karachi, Pakistan. Alchemy associates today won first prize in the commercial and professional software category at the All Pakistan Software Competition and Exhibition organised by Khuta Research Laboratories. The competition commenced on July 23, 2005 and concluded on July 25, 2005. It was divided into three categories: professional and commercial category, student category and, the under-16 category. Alchemy presented its flagship product, the Alchemy Risk Manager, and picked the first prize amongst 12 other participating firms. The All Pakistan Software Competition & Exhibition (SC&E) is a more than 15 year old industry exhibition that show cases locally developed solutions, judged by a blue ribbon panel of academic and industry representatives. Awais Ahmed Khan Leghari, Federal Minister for Information Technology, was present at the prize distribution ceremony, where he addressed the gathering and distributed prizes amongst the winners. He remarked that the aim is to bring the best out of the best and our country has scores of high-calibre professionals capable of developing and producing world-class IT products and services. -end-
Alchemy launches ALCHEMY RISK MANAGER Product line. 28th November 2004, Karachi, Pakistan - Alchemy Associates has launched a new technology solution aimed at financial risk management groups in domestic and regional banks.
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Alchemy Risk Manager allows senior, middle & functional executives to track and monitor volatility by highlighting, monitoring and reporting portfolio & balance sheet risk profiles on a daily basis. This application has been specifically developed specially for regional countries with illiquid secondary debt and equity markets facing sparse data problems, modeling issues and regulatory requirements. The solution conforms to both the State Bank of Pakistan and Basel II regulatory requirements with cutting edge enterprise risk management paradigms and sophisticated simulation, calculation, projection and stress testing capabilities. -end-
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Why failure?
Before
my
fascination Dated with a new
with little
failure earlier it
came than
my my a
initiation. involvement
ventures,
requires
substantial detour down memory lane. When at a I was 16, fate handed field a the that sci-fi his would touch frame, between be the was from me over to My
71
a a
coach true
local
track Tariq, Coming
and
club.
training air of
partner, highlander. the between capacity shorten notice the feet stand Moses, country is
Pathan, rarefied dot the
mountain was and and his his I an
ranges and a like
borders lung could way a to to a He
Pakistan
Afghanistan, stride fight over he
Tariqs at a
Ramjet. all
lengthen heart A small line.
seconds half Edwin who line
the and and
finish with tall
five was poor for a the Coe
destined kid from
somewhere would late
Seb
while with
Izhikistan in
prefix finish
fashionably
crossing
in the qualifiers.
71
The grail and the gospel in middle distance running is altitude. It is all about lung capacity. Training at higher altitude, with less oxygen in the atmosphere our lungs become used to working with what is available. Take that training and bring it down to the plains and the same lungs used to breathing in oxygen starved air, start getting regular air. For a high altitude lung the effect is the same as adding nitrous to your fuel mix, using high octane instead of regular.
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During
our
training gliding last out is of
sessions, the 50 coach yards, fashion, breath.
Tariq doled while half A from a
went out I dead 5000 with was a
on in
to an and
complete across
everything the
effortless completely endurance (yes that miles) second personal matching over join than we air When and be
flopped days meters over a 3 40your hell, roads, could less time logs, track alive would Our our or in the
typical little It
training equal to a of
would to in a you 5
start KM or
down
30-meter
sprint
walk-jog edition pace with
between. portable at to ran 3
four-wheel paved that a By you mile
minutes and
kilometer
dirt the a
tracks, for
inclines who
punishment
daring and the
think half
immortals to
minute down us
three thick
quarters. in our with Tariq for the to as sauce
got
low 100s a TV
event the be I
would the well, the
become looked end ready
and bad would
around
like and
reception. and
finally child meets lucky, I
came, asking for used Tariq I not,
more living
poster
dead. of with
professional training When I silver. was
be up I
reruns with
sessions. When
finished went
gold. empty-
ended
bronze
was
home
handed and tired. The credo to you we so stay it long at in the the field you was simple: group, your If burial For aptly no If you matter die want how and
training
takes, the die take and
finish line. the honor. of
assignment you
cross will run
finish care at in with the
trying, I at died and the
arrangements, years, built Training
with
honors
National
Coaching
Center
Karachi,
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junction point to
between the on
National on
Stadium our one say,
and side
Aga and
Khan would the your
University hospital
Hospital. the
Naeem, and
coach, Its
stadium other
choice which way you go out. For other and athletes daily that runner me. (who Tariq than of the bold as On later was I how way hard a as became and a he What better tried, of good it and he a
friends didnt more was
pall
bearers) was.
Naeem,
matter
gifted that
mattered
irrespective lose located with fail day to
couldnt soccer and it a was
oval edges,
boundaries cricket I you learned crossed up for
field okay line,
between long and I a
stadium that the more and with
hospital
finish myself
went
home,
showed found cinder
punishment
the
after. around
religion track
running
laps
a l e f t - b e h i n d G r e e k 72 g o d . Startup roulette: A framework for failure The it need was of for a framework for when which if me my arose to when an I realized objective cross of it of I difficult view between have refer I retain cycles. things had and what to first fix been had
point fading would common could and
ventures
were
economic there out do
Instead worse, a list that Page
troubleshooting, helped to diseases,
made
symptoms, to
cures it.
figure
gone
wrong 69, your
what
needed
Expectation
Management:
shoot
72
The Pathans, the ethnic race Tariq came from, trace their lineage directly to Alexanders Army when it came through the Khyber Pass to invade India.
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partner talks
in about
the
knee
and on
then to
tell
him
if
he
moving
something
better
again, you will cap the other one, too. When was bad The used on the framework that failure. viral of of after the was I Is first needed it or just fullput to a to runny work, nose, it a
obvious of cold,
think
about
degrees
flue,
blown The took
pneumonia? the I back was loss non-
severity was the feet on by
illness treatment. of time it At of failure. magnitude while such
determined to get this
aggressiveness your
benchmark
amount
times
dependent caused financial promises, determined The
financial
failure, factors and the the length fell
occasionally as
attachments, mindset period. following
relationships,
credibility, of in the one
self-confidence, recovery of the
psychological
recoveries
three broad categories: Type I, up
a.k.a. an the
the any idea;
no
commitment financial throw do and Your of not a get
date, costs. the as and little out
is
failure come at as is it, you
without with test get
major you
You
money right soon less
waters, plug, wet. weeks feet
response, limited
pull your to
the 4-12
step
total
investment
your
time
than 5% of your net worth. Type failure Moving testing find II,
the
fair-priced significant with you too the
joy
ride, theme,
is
with forward the
financial above get go for a
costs. after swim, by a
waters
actually strong,
the
current
stung
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jellyfish, almost losses your Timeframes
pull could a
muscle, heading run into
get back
a to
cramp, the of
and
drown claim from you your
before
shore. and and over ride into, your
years, net is
personal your
substantial and this
portion
friends years.
families misadventure the you your it
worth, spread joy
recovery multiple because you shot had and
Called what and
fair-priced were to chance, the
knew fun
getting took
missed.
Charge
experience
account. Type III,
the
tailspin, costs.
is You
failure go for a
with swim
substantial
financial
and are never seen again. Type III failures strain. and generally and Recovery requires and result from in complete personal failures I I have could
financial emotional is by very a
wipeouts
tremendous such serious only
rare
intervention thing
friends,
family,
well-wishers.
seen
few Type IIIs
and the
do to help was turn and walk away.
Sidebar one Serial entrepreneurs

S e r ial They s u c cess entreprene urs keep a or fo ll o w the S o c ia l a ve r y g am e an d i nt er e s ti n g life e co n om i c p a t te r n. t h em th a t will pl ayi n g u nt i l de a l s
tailspin .
sy s te m s
m a k e it easier to rec o ver f r o m ta i l s p i ns h a ve a t h r iv i n g a n d growing entreprene uri a l c o m mu n i ty . Fa i l ur e vi e w ed a s a b a d ge l a w s, and a of courage and n ot and and t a b oo , l o ss p r o t ec ti v e r e co g nit i o n for b an k r u p tc y p ro v i s io n s , ri s k a ll liberal healthy write-o f f app eti t e
u n d er s t an d in g
h e l p. Social and econ o mic s ys t ems t ha t do n t m iss o ut o n t h e economic boost ent rep r e ne u ria l st e r oi d s p r ov i d e .
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The blue screen of death The in I to marked-for-death firstmy and venture was The MBAs syndrome two to is as quite well as common a Type second-time number and idea and and little minimal was bank done ventures. finished give Cookaracha with paid the with within advice school original give The status overall there in cards our in at invest
Guides, three
failure, aspiring
months.
was
business after Attract
school
students
before, content, advice, as a
during, process. a sell part cost full-time anything in
application
them
advertising, charged. due and small for me and working off school our to the since to credit my
free, was
part
opportunity financial wasnt the then). expenses Manhattan Columbia the his mint a
student the not
investment (had
business were and at
discovered and me
Employee student the
headcount apartment business Even Amin, by than
operating from Broadway library (fresh had
Fawzia
subsidized
University.
from made us to one the Inc.
Roosevelt
Hospital)
son a
significant of which
contribution rather of was
allowing usurped
claim global
two-bedroom
single, as
bedroom Internet and
immediately faxes, were
headquarters access, email, rooms
Cookaracha also
photocopying, provided
conference
courtesy of the business school. The downside and and I I up took was limited on to the on the I unpaid the hours web
Fawzia together server.
spent and it on
getting
content there
running
student
because
thought
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was while dozen
an I
opportunity. the was few busy who
was didnt things
wrong; want to
it pay
died and with do to a the next three
because
came had
getting There
together, mushroomed I could site the
other
sites the where
already was from are no
similar door. crowded
themes. Lesson space
little
differentiate
Guides there
number
onedont
walk screens
into on
windows and no doors at the entrance. Avicena, southern lasted multiples education complicated $70,000 for in incubation facilities. production broadband capital venture California, all a my this I of of net number circa two three, mid loss it was we Things location 2001, it in best in an and a
1999mid Although
years.
represented
financial worth, had. time and
measurable also had the a were
ever
little and
because bartering
taken of
friends agreement We had
familys in
money
20% and
equity
approximately
$250,000
services
employees beta
payroll,
website, connections,
servers, maxed-out
dedicated venture cards,
customers, credit
commitments,
but no revenues. The that are business got business most model around was to to and fairly far simple. it, easier and the most the to are When we we
finally
implementing are execute, to the
found write, rarely
models
difficult Realizing is a can for be
simple.
accepting
this
for loss
an of
entrepreneur innocence lesson and never that
equivalent teenager only be One
important hard way arbitrage,
learned part
taught.
labor
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one
part do
technology, sounds all it
and neat
one on cash
part paper runs
branding but out, if lo
and you you
distribution cant
before
have a shot at writing a book. In the of short span that we were around, we took lead Bank, Pearson I
care
technology and ERC Mitsui, in Boston, much food in
execution,
content, of
offshore
outsourcing, generation, Swiss Re, Sumitomo New York, as
business engaged Frankona, Reuters, Chicago, missed
processes, Society Yahoo, D.C. Manufacturers and
Actuaries,
Publishing learned and the for and
business about as I the
development
discussions. Tokyo. airports, red-eyes, Despite screen true may were then with greedy, we
and
flights, taxis, selling. hit
unplanned hotel
transits,
layovers, did knows in out a about we were no idea,
promise greed and been
the
because
stupidity
bounds.
Also order, and
arrogancewe which, such made a and
stupid, If We only
arrogant, first,
different kings,
not have greedy turned
bad thing. like stupid.
arrogant
began
arrogance. When would in to go a we be row pulled a out had for down on my and Why the own me I a shutters, I would again. little didnt just so I thought think it
while left cash
before
about and back could back
venturing strapped broke
Three to that to
ventures get I come
breathless so
want
working
140-hour
weeks work
again.
hard
full circle when you were already there?
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In
less of
than three during I
18
months, without had
I a
went off
back of
to and
the in I in a the
grind another had going
working years the was ask A and
paycheck most to keep 30, meals or as a
paid
what
begged,
borrowed,
and
stolen to
things with on
final lucky put
dark be three
months
California. supportive table, me for of hand didnt rent.
family
who
difficult it could
questions and have just
charge easily
different
dealer
different
cards
been a Type III tailspin. The last set of lessons that I learned from the
Guides and Avicena boiled down to: a) out run up Failure leaner, with for more is a more discerning Ounce the for wiser. finish day the and As forgiving you as and you come you show will
teacher
than
success. meaner, cross
ounce, line, after,
and
long
honor,
punishment
be at peace with yourself and the world. b) As a first-timer enough the take of your you of are odds to around pick tires, the the circuit, car, right of you the
dont right or and a you
know to
the
right
deals,
right the
team, turns.
how
tightest to its
Regardless blue
intelligence, doomed and are
commitment, There to is get you going
capital, screen because
fail.
death
the
stacked
against
from day one. c) and Best no to one do is this when the It stakes helps are if small are
watching.
you
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young
and
strong
or
have
the
heart
and
stamina
to recover and take another shot later on. The real question once it asked all? then, me, It and as is, is and a If going member failure to it? of is an so why so sit
audience grand, worry why
common, about
inevitable
honorable, happen Just
bother
studying
analyzing
back and enjoy the ride, right? Ten to years change have ago the when with world I was and At a warm-blooded in my party I a
animal would
brimming
confidence 35,
abilities I have
survive
adversity,
agreed.
though,
slightly different view. I I think would entrepreneurs than even that by definition human forth, or of a 40
73
burn In
out
lot
sooner
ordinary venture the is get
beings.
fact, any
without
scientific, validation, business you slow personal, much less you
statistical, half-life riled around
academic typical After 40 more family are your risk make this egg in on you nest
founder down,
years. and
easily,
have
financial, and, a reckless In want you to than field play or put it you that
responsibilities, earlier taking, it cut-off years.
generally
speaking, were
thrives If
safe.
financially date,
before can
somewhere aside
around
your
73
This book is filled with assertion like these that should have been backed up with solid academic research but are not. If and when I enroll in a PhD program, I promise to do better.
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and safe vary you
go
back a I
to
being chance
reckless. that you final that
If will
you
dont, to will that that 17 be 80-
there
is
good
switch age
mode.
believe Having window it
the
cut-off and
across have you to been a make to
cultures, said of working
regions, and you
social 23,
boundaries. gives years
assuming of at
since
turned will
opportunity There a look
about always the
happen.
exceptions year-old cookies hitting on
this or
analysis; making
grandmothers eBay jackpots with
fortune fat
selling reducers
middle-aged best-selling
first-timers
and crispy bacon toasters.
Sidebar Two Spirit

E n t repreneurial b e l ieve and that spiri t woul d the n bet , bet be is s car c e r to t ha n be c ap it a l . G iv e n certainty, opportunity, res ources, and choice , mo st p eople they and the c h o os e see e v en as the owners, T hro w in i n v e s t ors , a l i tt l e th e h el d of Ab se n t e lse of is em ployers rather t han e m p l oye e s . wh at if you
p r o bability a c t ually c o n stant. will man s tay
h a pp en s .
c e r tainty, a very s mal l p e r ce n tag e of t he s am e gr o u p w i l l take An with e ve r yth i n g i n cr e as e increasi ngl y the would sm a lle r pe r c en t a ge t he t a ke r s
el e m en t who
c h a nce, reduce choi ce , an d s t ri p o u t r e s o u r ce s . T h e l as t standing ra r e in di v i du a l wi ll a c t ually make it wo rk, ir r e sp e cti v e o f wh a t y o u t a k e a w a y f r o m him. That is the ess e n c e of a n e n tr e p r en e ur a s r a r e a n d honorable as tr ue lov e , c o ura g e , a n d s e lf - sac r i fi c e.
If you
you
assume of
for If
moment average to pan
that new out
the
17
year would takes
window four three
opportunity an six and years rolls
exists,
then
how and
proceed? to to
venture you the
reward just fourth
investors
founders, of
that
gives On
four
the
dice.
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roll,
you
are
out
of
the
game.
Is
there
anything that you can do to improve the odds? I can think cut six a lot of sure down is two. that the that to You you a can will new roll have time when a per you to you are or
absolutely you The four is the per can to
winner will for
average
venture. take your There The one time
problem
venture and for is
years of
compensate there you down
original not time
belief, taken you
commitment, room before
effort. you even. fail
compress
break simply,
thing
that
can Put
cut
the
average
failure.
rather
quickly
or not at all. Avicena had afford parents those the came that to to shook health in The But that a assumed me up. Amin, and In more off it our we a in two-year-old, no longer I had my off my that could left It had two was with I 40. year, debt me to their penance and that of hit
allergy
indications gathering and
could
insurance. paid years a also took pool as
succeeded lifetimes. behavior. years from
than pay for
entire
four they it I
took
obligations
were
welcome made me to of the or
very sink time roll clock to
clear I
recover
reducing had soon as one
never refill. expired this a was also make my clear
one more if
dice
that
I decided say dreams.
roll, a
count on
goodbye With
forever
entrepreneurial third that time you and
wife, some
kids, and about more
the way, woke up
Mr.
Farid, it did rewarding
and
thing
productive
financially
your life.
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In
my
mind, test each see screen and
the that of if
question can death you was it tell is
became, you going
Is to to
there if
litmus blue test Before
upfront get
the the the
you?
roll,
could
simply
apply roll
worthwhile
dice or pass. To why will design the test, you a you have to list power, few dig deeper into
entrepreneurs give
fail.
Traditional of discipline, among pages stuff; good
literature factors: markets, others; would lists A
long
environment, business fraud, quick luck, greed. are work read fate, But
personal pricing and last all ethic of this
models,
competition, add and that
execution stupidity, macro No
the is
destiny, that,
arrogance for
exactly
lists.
authors,
users, readers, or entrepreneurs. When about and cant I go beyond meta the who macro in fail, and me and factors my do mind so and think they Any all look three a
the
dimension,
businesses
entrepreneurs solve three you
because faith. include the take
simultaneous define, needs we
c h a l l e n g e s 74 to what can
selection, screening three factors
execution test to Let me
balancing define
factors. mean
then
at the tests. Selection The selection idea. problem The is picking to up the right to business ability decipher when
74
No
academic
basis
caveat
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roll you
and have The you
when this seen right and have,
to is the
pass. movie
Like
all you
75
selection If it the the how
problems, ends. movie edge
basic
pattern once, like
recognition. know seeing plot still the and
ideas again when
are and
same
again
again . the is
Imagine
you
know
ending,
while
the
competition
trying
to figure out who, why, where, when and why? Execution Execution idea. business. in course is In delivering idea, real you on bad life past it GO the promise of the dead the Great in gets execution, is staying
contemporary
literature
execution faster
clichd, that
cheaper,
and sooner. Balancing Balancing and when you when you ever you can Faith is recognizing It is cutting plug your In the on when you the can when win you Have of a cant. and again the going distance
faith
losses real
cant.
Once
clichd.
life:
pulled
ventilator
dying loved one? Now that we
(I havent and never want to) what take a each look of at these the
understand lets
factors
signify,
tests. Selection and execution first:
75
Andy Kessler, Running Money, Harper Business, 2004 is where I first saw the I have already seen this movie analogy. The analogy and the book are both worth reading.
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Bruce
G r e e n w a l d 76, franchise Behavior are
a and
professor in his Value School, forces is
who
defines of classes barrier a
business Strategic at to five
Economics says,
Investing too many;
Columbia forces entry
Business four
P o r t e r 77 s creates
for
competition edge and
what
competitive
ensures
sustainable
profits. Everything else is irrelevant. In you plain for have English you to is to pick not for a a Bruces kick a butt law of states your in now is to or that in the will time. enter That and each
order
competition which but of
business limited long it you very
competition remain This your is AMD a can
just
limited only for or
period
happen new compete Coke one
when with and
exceedingly either both. against
difficult true and the
entrant franchise. else;
market against
business Intel; every
Transmitta Any
Pepsi
other Within State
regulated players: banking insurance
monopoly
against
recently
de-regulated Life PTCL;
Pakistani
market,
Life;
telecommunication
National Bank. We few it fail we as entrepreneurs we are aware of but the because of law (we in may to our not first At know
rounds, are by that
unaware either
Bruces
Law.
times
name)
refuse
believe
76
See Value Investing, Bruce Greenwald, et.al, John Wiley & Sons, 2001 as well as Competition Demystified, Bruce Greenwald, et.al, Penguin Group, 2005. 77 Porters five forces are Supplier Power, Buyer Power, Threat of Rivalry, Threat of Substitutes and Barrier to Entry. See Porter, Michael E., Competitive Strategy.
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it
or
find
it
difficult
to
acknowledge
that
it
applies to the opportunity we are evaluating. Bruces the with have Law or the business franchise If odds franchise your test test is you
first
selection the
requirement.
you
begin
passing already
business
improved
against
failure. Unwavering however, success. You no very But can discover restricted then you need to before an opportunity future due that and run the you to your keep out of ability a to where there will is be is belief not in the the only franchise requirement test, for
competition
or
competition venture it
sustainable enjoys. this way, Which convert that
competitive opportunity preferably
advantage cash
capital.
i s e x e c u t i o n 78. Entrepreneurs or got and that bills, they both yet pay and cant the look hard fail because or will the they find pick a bad if idea you that wrong today their for
execute you and as make idea
both.
However part
enough function rent,

79
businesses
execution
viable a
businesses settle
payroll,
generate
reasonable
profit
their owners .
78
See Execution, Larry Bossidy and Ram Charan, Random House Business Books, 2002. 79 See earlier footnote on the difference between economic and accounting profits
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How test
do
you as
reconcile put and You indicates
the it, two
truth the
with
the
facts? of you on some train and well break or we how above
Well,
Bruce
business
franchise level of if count that
above
thingsthe make
profitability profitability. fail making test it or last
sustainability can one, will still just On the carry a dont you how run that when fight one of other is any
money
number inertia
forever. you trains does real not
execution much away
front, trouble
momentum distance you are passes driven. inertia, hit just a tests at
through
before in. other it The
realize because on mean
Just
tracks it is you the
stations,
test Throw
change the so
directions, called and
momentum businesses will see
hard
stop. about
profitable yourself
spoke
you
well run they are. Balance And quit now Faith balancing The faith. The winners-neverwhenkeep Dana faith can How a I do bad time I at of a how-can-you-walk-awaydefense. last it comment but bad shortage a
for
question! back I to can
we-are-so-close-to-the-end coming Point: of or you bout faith Sarwars accept you. deeper? that pity? Was what How
anything Given
shortage
from Is
something quit? tell of true self
day from
just
Sarwar do you
meant? know
catastrophic
failure
its
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to
walk
away
and
do
something
else
with
your
life? Us, the entrepreneurs remain that Call or pray in a lows we it higher and it the and to are a religious given to destiny, being; will do you not It is what when a lot. we we few only after our allows what us the bet. that We face just and a as it, in to
cant
agnostic sink
abandon rounds find faith us
project. guidance, an you at our will
karma,
divine
entrepreneur yourself
every
morning that take
looking
mirror. destiny and or that
abilities regular as an the
leave also
paychecks faith it is
world It is
may view adversity
irrational also
insane helps faith
same and
survive holds
our
us back long after the wake is over. How its the rely faith do you know for open its to over? turn and faith the can How your is leave? not Is to do you You know up and an the cant
time key, on
you the
back,
pick
door
faith
because pay
rational there start
will
not
bills. use
objective
measure
you
self-destruct sequence? I only have The for and the one its good take test of that a I have Even to What that that if tried is to over make on is as as is
time. money
objective
business money
stakeholders. make work they do.
not-forcarry in out
profits with this an
charities Take out the and
exactly comes goes
money?
everything everything
revenue,
expense,
difference,
positive,
cash in the bank (more or less).
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If to
it be
is
negative, and then your pockets.
it
is paid Your
like it on
bill
that from as of
has your an your deal the out. on
paid
get
does
personal pockets days it AND has and
survival the for depth the for working yourself. ultimately will and
entrepreneur
depends tolerance to cut
20-hour If
paying
the you
business the same,
sweet
allowed quo
with
status your When it
remains or you
either move
pocket does,
your
patience
run
abandon
rationale
to faith. Making finding product, It fashion money a is a a little finding buyer, do is some you more a all and of complicated closing these in left a than a a deal. such for you
need, finding that
market,
creating
requires that
there
margin
to take home at the end. Very right and goal, time few you businesses If it and you have can reach an on. of This capital out this to When objective goal that its is reach it
away. have to
remains linger run go home.
attainable
sufficient or
faith
becomes
unattainable lock
capital,
up and
in essence
test number two. Faith numbers reachable this are not is and add no commitment business up, a longer a and within are model where relevant is when the where is When are on
underlying
viable,
profitability timeframe. and or be tests viable
reasonable true,
faith
commitment
misplaced. static;
These business
conditions model may
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day down
one
but
irrelevant road. is again and New It and
or and is
unrealistic previously as better
two
weeks cross simple to
the
unknown
information major questions products, grade ideas
generated
ventures to about and ask
milestones.
again as we
capital, teams rather
customers, plans
economics, move
forward
than rely on initial or static analysis.
Sidebar current
Three: future
Assets cash
and has
Liabilities some value. As
For some, a going-concern venture, even with negative and flows, long as it is viewed as a going concern it is still an asset. The minute you turn the life support off, it turns into to blood are sink oath a liability you. to A with enough in strings ventures The highly attached is the common or theme die
funded with friends and familys effort and capital succeed most new trying. are stakes high since ventures
leveraged, speculative, risky exercises in the power of faith that stay that way for years. that creates the bias the for the high returns fail to or aim of stays for a (is whether natural costs. to ventures succeed, The leverage persistent) creating at a all is
owners
success
Sometimes even a small win that allows them appearance going concern
maintain
preferred over a declaration of all-out failure.
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Do Yes is
I I to
have do. fail on
list
of
questions for gather
and
m i l e s t o n e s 80? the objective and and time an the the a the baggage, questions every answer on and to at that has
But
remember, big
me, The
quickly, next are your
minimal tested you
take you
the
thing. and
milestones have on impact next
applied answers. If make at
additional
information Until dont get then
questions milestone; running cost of
satisfactorily, you no and/or on
move
milestone. short
stuck
progress; level
start
capital, that
consider versus
staying
trading
your current venture for a better one. Lets start with the list of questions. Milestone on how with you number a one to the idea. until it You you cant figure it move out will
just are
great
idea build
going
and
what
cost you. Five quick questions: 1. What are you building? 2. What do you need to build it? 3. Can you get it? 4. Can you build it? 5. How are you going to make money from it? You It and have may form, to be you build a what you of are a its going to sell. or a it shape
product, a
concept, physical wrapper
transaction.
Irrespective need
tangible
around
80
on
For a more traditional and deeper treatment, see HBR Entrepreneurship, Harvard University Press, 1999.
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for
customers For
to a
visualize services for a packaged, need a it. know be build you the
the
value
your you
idea need you
creates. need for a a
solution, and In by working In very
infra-structure; finished, concept, help to do
technology pilot.
product, most rare about partners
edition; cases, cases, you your and Beyond rents the
you
you need you may need product vendors? from of idea;
be able to to select How will who
build it
yourself. If
help,
enough
appropriate the You,
they
compensated? economic the
compensation, the or idea; the
captures need? the the
fulfilling
this they,
originator of distributor
manufacturer ultimate
channel,
that touches the customer? Milestone already chapter, number touched but I twothe on this think customer. in the the We have are
previous
questions
important enough to be reproduced here again: 1. Who are you selling to? 2. Why will they buy it from you? 3. Whats in it for them? 4. Who will sell it? 5. Can you sell it? 6. 7. Do Do you you know know a anyone who can be a fund ready this customer today? customer who will from day one and buy it when its ready? Milestone make money number while threeeconomics. doing all of Can you still Also
the
above?
consider these questions:
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1. 2.
How Is
long
will
it
take
the
business
to
reach or
profitability? profitability sustainable, seasonal, erratic? 3. Who do you need to run it? 4. Can you hire them? Will they work for you? 5. How sensitive are you to economic cycles? Milestone number fourthe end game. You have
made it work, now what? 1. What is it worth today? 2. What will it be worth tomorrow? 3. Do you want to sell it? How four end you do you monetize and Do the you the capital made on more who plan investment over until is the it the to holding valuable
(human, forever of or
financial, and time? more
other) your
milestones? Is
collecting valuable to
profits
business
someone
willing
to buy it from you? You make what need you your your to have an exit The strategy to the end game be. in mind and also have
before
commit first opening
yourself moves
venture It you
moves.
dictates
will
dictates
the
intermediate
milestones
to hit before you can reach your destination. Closure, reloaded Five points before we close. a. First, there are no right answers to the
questions above.
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b. Second, answer c. Third, check check do let sunk Before evaluate bring
you
need
to
be
realistic
81
when
you nor is a
themneither each point. point that that of is a the
conservative milestones prior not is to
optimistic, just realistic . above Investment milestone back. your in can the return. four: be made is It the that you to
s u n k 82 c o s t .
Whatever going gone. is
past that
money affect You if
Dont not a
decision. future still payoff will If it
However, it. that you to turn is
investment cost.
expected invest
salvage from allow doesnt, that
you
additional
capital,
additional earn d. Point built will the you can life, a
investment
decent number on a
in your faith and walk out. Remember of the point this safe view At take when is world. will during at Only call; All you to There break your you the the and move
always you
exceptions some the to risky safe make
that bets; which you.
framework. will opt will
others,
for
route.
determine
framework framework questions forward
cant does that and
help provide not
milestones
would
allow
make
additional
investments
unless you know what you are doing.
81
What is realism? With revenues money that you can take to the bank within a quarter, if not earlier; every thing else is optimism. 82 Sunk cost. Amount that has already been invested (spent or expensed) and should be ignored from a cash flow based decision making perspective.
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e. Finally of you I for need to will
point pray get. be
number for That a a
five: be miracle
on
the a
question would miracle praying year,
faith;
there
will is if
times and
you
acceptable you were times
behavior. a
would
worried
not
miracles
few
especially in your earlier days. But fork then in if the you Join Praying grows need you the and the and a miracle are in for your for miracle hoping as need at the every wrong
road,
business. industry. is of not part if a big matures God that of
pedaling miracles business acts is be it is and It not
distraction reduce
and
these
should divine your has need
dramatically. should strategy just your your why than
intervention business regularly with or out
certainly you something your
its place; it
remember that there prescription, s t r a t e g y 83 your
wrong
business to
model
you need to focus on fixing that instead of trying figure prayers arent being answered. Why stop up here? and ways ones out of why to that My Surely we this kill I there are your and on are the more ways be to why a
screw these are I
since
subject, may but
and
order? around my
There to
thousand the ran
business, took
these before my can I
got
trying and
cash
Fawzia
away
credit
cards.
bills,
debts,
83
Not
necessarily
in
that
order
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vouch mistake health.
for my had It you the
their personal on also and
effectiveness. biases and the and my business the either you find so or it dim
The
order the my
reflects
impact of
financial it it sneaks have is so it
reflects
likelihood because it to because hard to fall you
repeating up on taken that
this bait
mistake before and you be
realize
slipped;
elementary anyone
that
believe for
could
until you actually go out and do it yourself.
That
is
round as
about by
my
story. it
I as
hope I did
you by
learned
much
reading
putting it down on paper. My do last parting a words spin. for need of advice and if is Go a ahead break wait as and and with for much
give your your fun your like
destiny life. Sarwar as I sanity, writing
Give
yourself
something to
interesting show up. And to there
meaningful Dont have and if other you back no
Stand and a
something. step
did
recover therapy it takes
remember book
especially
five years.
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Appendix A The Cast of Characters
A quick note followed by long descriptions. The prea half volume mood a characters role in and described my cast the life days. of In a a at here More played and detailed timelines the spirit of an in the are of this As the need than
important
Columbia
post-Avicena and have A
traditional the to Avicena I them. have I cast come of
characters,
descriptions austerity, would
following
story. dedicated more in
quarter and separate
generous both if and
eloquent book.
resulted
reader and
would back
give later
sections when you
standard skip to.
character,
timeline
treatment
Kamar Bakrin on the on first day on day one basketball court to in school snow, fanatic,
Kamar broke he and and the
arrived a leg. his walked the
at
school on
and A the
Literally. ankle three two
twisted then for (CPA
blocks months A the in and if
crutches
next
sleet, of
sub-zero planet)
temperatures. from friend and
chartered British Kamar our was
accountant probably Ken, If we
equivalent turned driven were did I we
side
consultant, content well;
the
most and
batch.
Arno, did
easy-going.
well,
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we
didnt,
it
was
okaydisappointing,
but
still
okay. Kamar sense angry. could knew turn made prior that he the to had of vent down for to He the his make word, was We of anger an impact, hungry one had in to make a
difference.
wasnt
the
twentish Kamar where was he we to had good life just in
nor just and
ambitious. outlet the his gain
School
respect desire they not his did
deserved. an offer mistake their
joked
about him he
from
McKinsey
since was in and
telling He went
enough
domestic Boston later, of a
practice ahead is
B-school. joining years Five
before
Consulting he now telecom
Group
Boston. Managing
the
Deputy
Director
large
operator
in Nigeria. Arno Goboyan the and each at but the first I the it other took had he time a a needed some number Arno when he of fresh exam to and was times for evening happen. name look air. I had We really for had a run met into
dying
smoke
before, corporate by I is him. and our was for He Uris
including finance, Deli if for the That dark, of loyal
exemption
drizzly
introductions Bond would way
think Bond,
French Bond), is the a with
(The probably to
James
like a
Arno. Tall, as a
easiest slight packaged By the to
describe accent well
French very time we to was
touch
class, friend. paths his
together he
traveled be bored.
individual financially had made in something
business enough and and
school,
comfortable killing different
looking
exciting.
Superficiality
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ideas, liked as Boston
ideals, his in
and
people to be joined
irritated just as Credit
him
and
he
friends Arno London
sophisticated Suisse First and school
himself.
immediately
after
now runs an M&A advisory firm in Paris. Ken Bates stable kids at team. He with times the my 42 member a he Tall was and face of and forestry also slim Ken our was the A from Arno, most the Ken mature of of a and four the more eyes. not As few in of
group. major
father member had he
seventies,
the like
oldest deep
weathered related in
blessed
with of into I
smiling was
enjoyed to Arno,
telling Norman we had room for and he to
people run
that each took
Bates
Psycho It a a
fame. a moment draft
other
class
discussions. when was Bottom produce the and lack to us
printers article
passed Line,
him
our Then
school followed the Ken Mary was and
newspaper, numerous Ellen a rabbit, deeply us as our kept Inlay a Chase
hooked.
attempts play which
Harvey, six-foot closer. a great it, to of
about man or
invisible extent, after River of
brought
even
religious strength went together Ken its and
faith,
brought and Hudson
before, back
during, rejoin taking As on
Avicena. global
president run we of by
before
charge our him Over into
young
professionals his church. heavily now is small relied Ken with has and a
organization first as a a in the
sponsored beta last value second
customer, pair five as
well-grounded
eyes. turned busy
years a CEO
turnarounds Florida.
specialist
creating
business
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Syed Saboor who away has from actually They shared Saboors first up how and Saboor. Fawzias elder picked chose taught subway, and in Yorker. business sounding strategy Sadia, crashing us our us
I met
have
never gym
known Lopez a few
anyone besides streets for him,
Jennifer same in
the
office as we
lower Bhai off at
Manhattan. (Urdu called
cousin,
Saboor us
brother), and to
lovingly
dropped cross in one first the our
airports, leases, the New the used and and in catch a
apartments, take-out, live was and for of the
negotiated the shop, New of do
our
street, our first to York
order Saboor
groceries, investors see
walk
like
the
Avicena,
outsider most ideas, run of
plan, board his outside spot
frequently pitches, team. our our He
product still
management
wife,
favorite home
outside
Westchester County, New York.
Ralph Biggadike about class group needle With Ralph (short before for I Top from
had
heard into &
good my
things TMP A the born him. fluff power and
walked Becktin firm,
first
Management
Processes). Dickinson, was a TMP with been into
president We
manufacturing took else, he took was
Ralph and have 30
teacher. subjects. Tuesdays taught managers.
Strategy both a they group and also the to
anyone as them
would of one
With to to
Ralph, think
turned act
students like the board
general first the as a
Ralph who
of on
professors only
second
business come
plan,
teacher
agreed
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faculty received during inspires
advisor. a our standing future
He
went Award
on the from
to same his
win year He at
the and
Distinguished
Teaching
ovation
students still the
commencement general
ceremony. managers
business school in New York. Aleph Inc. company acted Ana and and be as based our Aleph both and in A Santa incubator provided offices, financing look technology Ana, as office and on well as solutions that Santa Fawzias in
California space
employer. and talent in
Karachi,
development
administrative expertise Coast, asa and book of the in was May an West
management the support them at fall the and six hard and on of on
customer funding an
introductions basis. to also Without back The and very
when-needed about. We
there a
wouldnt
Avicena
write
collaborated
number
non-Avicena technology California downsized 2001.
projects. meltdown, hit Aleph
Avicena, recession its team of months
dramatically
within
Denise Davies Responsible payroll, in technology Karachi out pace, as talents, churned inhuman our son, for marketing, project and Denise was
VP running
Operations the
at
Aleph offices, and many shake, at in an the for Amin, offices
California from Among her
business management Ana. a mean and
development, her
Santa made a as
morning (for
proposals great well
contracts
babysitter our
other and off
pseudo-adults the creek in
Avicena-Aleph early-morning
team) walks
shared
passion
Newport
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Beach.
Denise
recently
fell from
off our
the lives
map
and
disappeared
completely
except
for occasional email exchanges with Fawzia. Fahad & Appsys in my the from days. Aleph Karachi Aleph end, Karachi our hosting, took getting Front-end primary out. platform quality development did and the team. for front Karachi. computer of a Java the Fahad, science small owns Back-end a former teaching development star student that front days, shop still had team from an built end. it
became
owner Fahad
specialized behind Appsys and he
engine same
Avicenas
still
operates
premises
during
Avicena
responsibility They
assurance,
technology
integration with Fahads work. Ashar Zaidi and my right-hand Ashar from of of that to He a is a was Fahad, passion tenacity Pratt and package asked give Offshore man in also an Project ex days. and and Point the him Manager Just like and the the of a the I he
Pakistan.
student Combine mullah, drive in the him would let have
colleague
consulting pit bull,
fire-breathing engine Ashar. his his works you and a the
Whitney light
right go. and
direction, him the
fire,
dump now
permanent as
position shot and channel
startup
lifestyle
agreed.
sales
manager for Intel in Pakistan. Sharleen Ghauri first hire brought Content in to Editor. take over Ashars content
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responsibilities. development could team, after after move and on to
Sharleen content Where
took so
over that and
course Ashar for our and ever after
work
technology Ashar and now was the and
execution Two years
responsibilities. Sharleen Avicena got in
nitro
became
stabilizer. burned, live
crashed where
Ashar
Sharleen
married
happily looks
Lahore
Sharleen
Intels education initiative in Pakistan. Dylan Steeg, Joe Rooney, group and Whiskey mates Ken, Carlos
Desmaras, Ken Craddock Friends, Business northern an for after Tokyo. to the from a class, School and from in Dylan Joe from own Ken our Columbia York, from work from role and in now came the his year in back New We to came came Japan show is now working Japan. and west. a Ken came New back
California, VC firm and
engineering
background back up to took Whiskey back have roads End his He a
went
operations actually We Sakura CFO
not-for-profit his
school. went and
start during in in and,
crossed for
presentation Carlos me, used for a first is now in
stayed
touch. Japan. like with
Lands
investment to
banking
school personal before with York. clicked working to when
polish
business
plan it He
venture. joining and
stayed power
for
company
Louisiana his Ken
then
New was
Jersey. John day at
pre-business-school Craddock and a the history first the myself major
employer Whitneys at I we met
research Kens drift after
assistant
Columbia. and would long
from space I
became
shelter
found
school
graduation.
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Cluster X students and who terms. TMP Group Top Management course. Pearson Contact contact. subsidiary Senior we met with whom stayed
Friends. I started for together
Class business the
of first
60 two
school
Friends. Processes, the
Classmates Ralph
from
Biggadike
Business executive when we at wrote
Development a the Pearson Pearson
Strategic Investment proposal. Manufacturers Bank owned that idea subsidiary was by Aleph and of initially Beta Sakura pitched later customer. Bank on in the to A Los wholly Angeles Exchange a beta
Bank
agreed
become
customer for Avicena. Chescore Capital Dubai and opportunities managing person of same 2001. with He out time from we of VC UAE. for a firm on Moez operating Muzaffari and the out was the first around get of the key half the a to
focusing partner whom died he of

84
regional
investment
Chescore during we heart
dealt
attack
had
promised
would
decision
Chescore.
Chescore
continues
run the offset
fund out of Dubai.
84
Each defense contractor fortunate enough to receive an order is asked to contribute an amount to a fund maintained and operated by the government of UAE called the offset fund. The fund is then used to invest in
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Reema Faquih Bombay, of with when what a chartered business we we were had and With the she
My advisory dying effort created help, her, I the and
first
85
cousin with four
from years joined devoted to up save her much we most After for a Reema Public
accountant in a
assurance India. business two years. have two in
experience and
Andersen
Worldwide as and over
Reema hours
triage-style support sooner. pulled Avicena just
countless
Without before the work in
would last down to
given
months
shutters time went that we back
became to
productive non-profit
spent
California. children.
India
educates from
street
graduated
NYUs
Masters
Administration program. Professors and courses John Whitney a taught plays In as a Prince, leadership always Behavior about really black business funding, why self-awareness crisis. that some Bruce Search backdrop of for of my money into study that term a Perfect used the course that taught
Shakespearian
analyzing Strategic question without financial introduced of 12 on focused
Greenwald answered make turn a Hubbard
in-demand
Economics
finally
businesses others Glenn and new
trying holes. plans
while
Entrepreneurial
Finance, the
ventures
valuation,
investment
sheet,
local businesses and companies that can directly contribute to the economic growth of UAE. 85 A CPA equivalent professional designation but with a curriculum driven by British accounting practices.
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launches, Strategy, soup, from
and two
growth
challenges. and that
Don
Sexton the
led
International
Marketing courses
Advertising mental for assignments plan taught walked to save
provided and business
frameworks, which the emerged. the
inspiration, original Laura a skills
Avicena through
Resnikoff course that required
Turnaround
Management, essential
dying companies.
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Appendix B Avicena Timelines
Spring 1999 Decide hard The taken with save take force years. April 1999 Discuss Kamar, review draft and of business for is also a WSJ, plan FAST more returns and in the with Company or a big space Ken, check. and blank. two that Decide less Arno, Quick Wired empty. Fail firms had to Jaysong CNet, space search very raised reality to one on an F. to fold Cookaracha I of I took its my Guides in own use for and days my while trying has not PhD a to for life that to flunk course life Figured class of work. Continuous Time first Finance. term
and the
continuously transcript guides course decides is sloth the as a to and
threatens template on me
disfigure
pristine Dons also by
could
project own
some
Class its
project inspired
Avicena for
born. could two
Amazing
something work
20-hour
next
indicates Altavista to already already
discover
Quisic active
Zoologic, funding.
substantial
forge full steam ahead with the venture. The Day After Columbia alliance focusing Business with on selling School the announces Mike school strategic venture to courses UNext, Miliken
business
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268
the
unsuspecting about and the we Quick
world. size visit of to
WSJ the
follow-up online site do
article that on team steam
talks it
education shows better. singing
universe. sucks Lowly Only members ahead. June 1999 Enroll Jadidi group and in to held
UNext
could
certainly with Check Tim to
much
international financier America. shows in
student with forge
takes McGraw other full
billionaire
still
desire
new firm in
product up business
development offering. with school in from
course First
by
product
focus
classmates confirms and other group and school points of for early and
friends.
Strong
positive
feedback UNext
distinct identified also consistent
differentiation attributes in toward which the with at a in ventures this
functional Focus stable price a
psychological points
space.
fairly the
marketplace
business
environment could years. in the
reasonable for are
sustain
business Columbia to
number out
Unfortunately, game due
opportunities ruled UNexts
collaboration provisions. August 1999 Research completed. design, account. possible on
exclusivity
Java, First
XML,
ASP,
JSP, and
and
Linux site limited student and get
prototype style, out rolled
highlighting on Columbia
content is Start
functionality
thinking
about
partners to
profit-sharing
arrangements
business on the road.
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Fall 1999 Initial as up well design as document as and up part upgrade with long as could course chose for of core functionality complete. work to Wrap in with next taking with (A) a in in architectural Finance marketing Don. one get get to review
financials Hubbard Firm as one and
course plan
Entrepreneurial Glenn edition. another figure
(E-Finance) business After with the H strategy could away After by
course that
E-Finance, murder Hs
86
justify
precedent, financials both of Glenn.
valuations.
Dons Again
another ignore
(A)
from
contrarian
indicators and carry on with forward momentum. December 1999 Ken the is on up and board David On a full Biem whim what time. and Pitch Glenn to jointly as is sexy up for greenhouse incubation Business decide I am cool workshop plan and after faculty coming Viants and by I not
signing sponsors along career would
advisors. they
nicely. day love to
visit
since
sound
see
passing
interviewing. Viant like white rather I office turns do, that boards than out dress I and to be a I map dream do, to and fit. and have. have on They think an use
like mind
even
have They
would
like
real
desks
cubicles.
Carry
interviewing
86
Columbia Business School grading system started with H(Honors A equivalent), HP (High Pass - B), P (Pass C), LP (Low Pass - D) and Fail (F).
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with
them
and
make
it
all
the
way
to
the
final
round with ease. Post Finals 1999 Ken from shade the load on while Leaning the gets an offer They of the from like his me a at 100 employer. but the to Decide I get one is a over debt show Viant. under insanity during offer think
expectations. passing a break and before
six-figure home in out
salary
maintaining towards side
close-to-six-figure sorting the
Karachi. dollar
Viant
million
conversation with Sarwar occurs. January 2000 First Aleph. Appsys side. to US and of pass also an week. With on The us We reach for the at The flesh the a firm hand we shake able on to the and get incubation offer board Course up. to the Avicena from are Sarwar
Alephs Eugene
support, Lang course out
application Funds offered business
development Greenhouse decides grant in of idea front as a
Incubator
school
$10,000 put
entrepreneurial candidates panel as well
short-list funding
internal
external venture capitalists. End January 2000 Come back on and and are turn class now Viant schedule and to in from work deli down. as on a Structure full day of Remaining Take in rooms coursework classes five days
Tuesdays free residence for food
Thursdays. breakout while
Avicena.
permanent Warren. Pay
everything
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else
(Internet,
white
boards,
and
fixtures)
is
pseudo free (paid for by the tuition). Spring 2000 Business design, trading, rush. night in and when as it plans, funding, hiring, to and Dew I start to content, financing, relocation. two coordinating Orange all-nighters, together and roll. Aleph work and We There technology, graduation, Its to more a mad, with Find than three Aleph day mad a relationships, website, logos, incorporation,
Down
sleeping Aleph
hours
Fahad that sex,
Karachi
County. better is a Appsys up on
comes and and
techno,
nachos,
Mountain
drugs, office and to
rock a
nine-hour offshore us go they between
difference Aleph sleep
between in
three-hour California. the sun
difference wake sets
and the
and
never
Avicena
empire. Spring Break 2000 Take visit before Airport. polite. assault guy good actually day. me a quick Sarwar, we trip to southern and Love is Aleph at Wayne clean, terminal doing the and Kmart California and look sight green, ready NYC, at wishes of in to at Denise, at to her
incubation
facilities. land California
first
even and to the me a
John the POS I am to
International clerk
Compared with the am
manning asks I
checkout
counter point
Vons
me how
shocked
mumbling
meaningless gibberish in response. Sarwars heated apartment open is right next and to a the gym, a
pool
year-round,
stream
that
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provides a bed of have
soothing rocks study and to
sounds day. their
of
running
water his
over wife a
all
Sarwar
and
converted
lounge/kitchen print-outs, business flight that our magazines. as a the agree on a Fawzia back SoCal to
to
workable hardware, an offer in site York, in NYC
filled them us be
with
backups, gets on New
industry Ana. of On
join two
analyst to
Santa be
the and
would raise
certainly
an
upgrade
gritty place
lifestyle
would
great
Amin, who will turn one next month. April 2000 Fawzia while and for one The & I and stay Amin off to to to for southern finish and interview sunshine program California projects that no a candidates and of faith. behind Continue in leave with on NYC the the class find
finals. positions wants to
California
executive-in-residence meeting the lead big meeting the
arranges
first first and
ex-chairman actually West Coast.
Deloitte our up next
Touche;
generates Packing the
cleaning
apartment
becomes
looming nightmare. May 2000 Good am bye here New and and is fish to York, I DSL. in hello am the in southern California. Move year not to the I control. major the how use learn water. into round float joys
apartment decision heated like dead pool
first Also
purchasing
finally the
Discover
of takeout Persian and regional Chinese food.
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Second
meeting The us me to to
with partner the and go
D&T we
contact meet an
is offers
very to and a to with the first allto Sarwar take
positive. introduce introduces angel seat board on
local we Two
angel invite more I
network. him get to
Ariu
Levi,
entrepreneur invitations busy desk, our an
investor, our members
board. out Avicena printer, lifestyle
while LLC. and by Soup bar. to
incorporating supplies, Californian management you-can-eat blessings, fill Find up
Buy
office
celebrate having With more roles and MCI at Plantation,
meeting salad start
at
Sarwars Avicena. hours starts our
talking
candidates spend bill during
senior them
management talent on to the
promising closer
overseas phone. four
interviewing getting
digits
recruiting drive. JuneJuly 2000 More number offer. friends raise Not bank I less the out we a and US$ hiring one Start and lot more the round buy well roll to to conversations. the family with money of startup ground a laying Convert cause work for with employee a firm
first-round Successfully valuation. nor in of a an the lot our do Go
investment. US$ to but than it go the
70,000
700,000 is
around money piece
outstanding have been
valuation tangible a US$ on as out calling
paper
business us at
plan. Id on and
Its
than first and as
89 my
million but than web
valuation rather theirs.
advisors
were
pricing
terms
long-awaited software
database licenses of our
server need
component
functional
versions
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268
site. plan
Money of the
also
allows
us
to
reserve in trip,
booth and
at
Society
Actuaries
exhibition
Chicago, start
business
development
paying salaries for resources in Pakistan. August 2000 Business D.C. development to and on ERC course about to a Kens trips to NYC, Re, and one. within Boston, Society leads. from and of Good an lead strong Swiss
Actuaries, validation Start beta

87
Frankona material corporate firms
approach. Launch VP-level Kens
thinking focus at at trial
switching targeting
individual resources
group,
subsidiary
group for a refresher course in finance. SeptemberOctober 2000 Ashar and Sharleen notice Start Launch at in work finally at of on join their after previous (SOA) port Old acts demos and the ready from the D&T completing employers. processes. annual to new server even and period Society badly
content-generating Actuaries Technology launch. and licenses
exhibition server is still on is
Chicago. trial Defer pitch, The first
fails
during
running verbal
more rely
unpredictably.
exhibition brochures, day course after is leads
PowerPoint exhibition for SOA as
presentations. over, Good as the
unveiling. well
international our
reasonable Update
validation contact
for at
corporate
switch.
87
At each of the above stages, always remain undiscovered.
some
bugs
and
errors
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268
about
new
development
and
direction
and
he
is
not sure if its a smart move to lose focus. Early November 2000 Fairly River and have feedback the successful Inlay about best with beta very completed strong Ken it and environment, of an at Hudson positive interface, that day we for Ivy our League
content, content
learning
experience. course;
comments makes
outside
corporate
finance
the remaining week. NovemberDecember 2000 Aleph else the of and on bank the LA Sakura at exchange Agency on to edge and conversations Aleph and in within us out in an LA out to put ASP and for everything We present to his chairman to delegates in return. on a me Management planned invests asks exchange concept the lunch hold Avicena.
Sakura private from and the idea chunk to the
Agency club
Management takes CIO the new the and Board at
(Wilshire). Sakura bank new
We
take
Tokyo Sakura being of
the
dinner Agency are
Presentations cutting
Mitsui
Tokyo
electronic Aleph venture and
incubated in they
Aleph. domain
equity until to pass to We
lead bank
technical take
discussions with the
with right Also new at have two tie ends.
find
someone of
profile agrees project Avicena. solved years. Prop up
over
the
relationship. revenues and the from we next to expenses
to
portion this trip team by
fund close funding
development contract for to and problems
our
Planned local
Pakistan content adding more
operational,
process,
lose
content
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resources. Karachi. launch as
Aleph Leads well
distraction generated by the
takes before
its and
toll
in
after
business
development
trips in September get dropped and fizzle out. JanuaryFebruary 2001 Introduced Capital Moez agrees complete Eastern According unmet online they for plan work door, There the the and to looks to at fund Moez the it Muzzaffari in Dubai on a Avicena plan and is with a barren only economy fits and as Fly at by Chescore Sarwar. and the the Iran. with the Our Ana as up. Eyad Shahbi
presentation seeing more in on
contingent
business
Middle
orientation to him, that allow invest to in Iran the
focus
professional demand and
development will model in. revise
market
territory to open the to
increase well
conservatives want major given on to
regional effort Moezs
sector
back
Santa as
update well
business wrap-up and the day. pay and on to
feedback
courses
development. notice in arrives money the
Eviction that
utilities is
disconnection email enough settle our more not or of
waiting later the bank to
Reuters
rent last
utility from
bill. and
Convert cash family
travelers money
checks friends
borrow
even
to tide us over for the next two months. FebruaryMarch 2001 Reema takes out life wonder joins over if the all this Avicena drown is would in team the I in California work. out with do I Come and go and my and business-plan-related pool. want to to Amin, what
and and
almost what
happen
Fawzia,
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268
our die
parents because
if of
were one
to
fall too
off
my
chair of of
and the and
night morbid needs
many
stress,
Mountain business focus to their thinks on meet
Dew, plan.
and Put and
endless
revisions thoughts even
aside more
raising
borrowing while is quite
money on two he 10 as two and a
short-term
Chescore bullish Ship as
ponders who out well
decision. can help
Sarwar us of
high-flying strategic numerous capital new
Pakistani investment
professionals cash. to proposals plan
raise
copies leads get on
the
referred flow of and
venture credit Pearson and
and two back
Sarwars more with the on
contacts. cash cost
Launch capital
courses
leverage, into
analysis, economic contact promise
value-added comes to forward
development. to
positive proposal
feedback
Pearsons
president with the appropriate recommendations. April 2001 The sky has and start Hi Tek a finally same couple on fallen. of to for be Discover Quisic with to to a and few Zoologic years head and the daycompetition million Moez decides decided revised and while and a
dollars 2001.
funding defer Himalay take a
us.
investment pass. and will
decision venture asks it to
October a look down
partners
Pearson with time
investment changes they business before
proposal have
cosmetic will get
feel talk
indicates
with us. I am out as of leads and of good news. Money looks is gone as my
too. bad
Personal the
financial
situation debris
just under
mountain
growing
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desk. now
Dont is
know also
where are
to
begin without Chat my
the maxed pay. with
clean-up out We in Ken and have debt says Kamar losses awkward
process. started every Call think says and up
Credit to Arno you add
cards five to Ken Arno
already
Fawzia month about dude heed
working
thousand survive. for more says
dollars advice. to
just and it, are
Fawzia.
take
money, cut
screwed.
Decide
Kamars
advice.
Begin
conversation with Sarwar. Mid April 2000 Sakura the subsidiary beta or Great Reema call comes timing. a beta and packs back Do site up with not or and acceptance their have the flies to cash heart back tell of to to to limited them I testing offer for loan
officers. support carry Austin. on.
Ashar
Sharleen
them
its over. May 2001 Transition Rediscover kitchen, order). copies Industry bear world read later, about enough airline to at of look about and Lang class to in the a of and First control family clean in up to Aleph gym, (not my and departure. pool, that all and cant the to day found an heads in dump I apartment, swimming exactly study Fast and
Inc, at
Wired, smiling The was
Company, office. with needed A
Standard their
Denises last
entrepreneurs thing I
feet. now
multimillion-dollar funding. me an email who update
valuations
first-round center of buy sends an 2001 Aleph
graduates Airbus and
money
start
London.
relationship
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268
south fail
as to
we
reach
agreement
on
transition and I until
but
reach
closure. awkward
Sarwar emails
exchange silence
increasingly prevails.
18 months later November returns, send a 2002. paying to of After back Sarwar finding two taxes and and a reliable of file as state tax I a of for accountant, note completing years and
penalties,
Denise in
cancellation Limited
Avicenas Company
registration the
Liability
California. There are no regrets.
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Appendix C The original list of myths
1. The curse of technology The mythical value driver. 2. Big projects and big sales deals The price of credibility. 3. The perfect product The allure of perfection. 4. Heroes The Hamlet syndrome. 5. Solving the wrong problem Prescription glasses. 6. Leadership Gods and generals. 7. Faith, commitment and the inability to fail Who will cast the first stone. 8. Capital and Partners The equity paradox. 9. Expectations management The undersold dimension. 10. Diversification Any which way you can.
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Richard
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living, fix, Gary
Mark Sutton,
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Blue
Screen
Page
267
of
268
107.The
Mouse
Driver the
chronicles, 2002 most Free J.
John
Lusk wins, &
&
Kyle
Harrison, Farson 109.F'd 2002 and
Perseus makes Ralph
Publishing, Keyes,
108.Whoever
mistakes Press, 2002 Kaplan,
Richard Shuster, Prakash
Companies,
Philip
Simon
110.Integrating Shimpi, TexRe,
Corporate 1999
Risk
Management,
Blue
Screen
Page
268
of
268
As
of
the
date
of
this
note and )
Alchemy Alchemy are with of leading a 35
Associates
Technologies risk management in Pakistan base 6 financial employees, an rupees annual growing client
(http://www.alchemya.com consulting firms plus 30 and
regional
institutions, partners revenue run rate of 18 at more than 100% annually. Jawwad their Jawwad card and three still debt Fawzia kids live and happily set million
in
Karachi of a
with
two
of
grand as
parents. credit reminder
carries his
1,100
dollars days
from
Avicena
of his Californian misadventure.

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Blue

The Blue Screen of Death

A Desis Misadventure in the Land of Opportunity

Jawwad Ahmed Farid

Behind every successful man is a penniless wife.

failures; To Whitney, Biggadike and Ken for asking Why

not? To Sarwar and Denise for Avicena.

seem close very for it a to

come begin home,

varieties. with for a product

smallperhaps building need, another on a and either

specific friend their in

business. customer. sell the

entrepreneur facet of wall make A

personally struggle, processes of these mature to

these without small of the Many

businesses management and staying

transition planning, remain small comfort

implementing, businesses, zone. And

accidental problem, but

entrepreneur. product rarely

business form. success, soon taking fail

abstract, are begun role the role either

art own They very Most

surprised with of of modest the

having that the than they

Entrepreneur. entrepreneur. begins small, scope with and a focused

Purposeful business ahead. are driven

Entrepreneur impact. have

plans They of want

further They their

together. quickly. of Death.

littered success. profile But most out

books Even begin to do

about books with end in create not end

entrepreneurial documenting wild with significant anguish. When by the success.

Accidental thing, event we but is are

Entrepreneur the sphere by of the a

fails people scope

painful the startup.

touched the hole

limited the left

Purposeful with much

entrepreneurial courage, the

experience? confidence, path of

borderline shakes about to A one it,

Entrepreneur. very alone of yet their let lick Fewer

book. and give

create though will you

nothing. about small the a a difference few

recognize success Farid, from

failure He and took about

succeeded. much that it failure greatly gave

learned the and few

success. stock his

another go. In the end, if you hunger success, it is most

important to study failure.

Shane A. Chalke CEO Finetre Corporation www.finetre.com

During life that or I destined that

earlier Pakistan, an take earn MBA

professional I was Land, of a school,

thought League at a Startup

attempts check. To an two him a