Launch a Launch – The way to a successful startup
Date: August 5, 2015
Name: Launch a Launch – The way to a successful startup
Presenter: Ray Walia
Many people are inspired to become the next big thing. However, their startups often become their unsuccessful memories. The way to a successful startup can be difficult. ZEED is a startup incubator in Vancouver. The organization provides services for entrepreneurs who are looking for supports for their business ideas. ZEED hosts an even called “Launch a Launch” and invites Ray Walia, the CEO of Launch Academy, to discuss startup strategies for early entrepreneurs. This presentation will inspire early entrepreneurs to step out and develop their creative ideas to the world.
Ray Walia, CEO of Launch Academy, helps many early entrepreneurs to launch their ideas to reality. Walia’s passion of helping entrepreneurs leads him to become the 2014 Entrepreneur Mentor of the Year for British Columbia. Walia is one of the business listed under Forty under 40 in Canada. In addition, his background includes involvement in global concert and events for Bollywood movie industry. Aside from Launch Academy, he also co-founded LX Venture.
Journey of passion
Ray Walia mentions his idea of Launch Academy started from his first business fast food restaurant franchise of Dairy Queen. During 2002, Walia had an idea of selling cakes for celebration on mobile device; however, his idea was not convinced by many current mobile providers. He managed to build a website with using a coupon system and used mobile app to deliver the coupon. Walia realized there is a strong potential in technology. Therefore, he started the company in technology industry to help people who need support for their ideas.
The greatest challenges can be different in different stages in Walia’s business journey. In his restaurant, he had the difficulty to manage people who are more experienced and senior than him. In the technology company, he needed to find a way to stay on top of the trend. Many ideas can be too early to convince present investors and it can be a road block. Walia believes timing can be a biggest challenge for many early entrepreneurs. No matter what, Walia always believe execution is the key of everything
“Execution is everything; idea is not enough, execution is the key”
Startup ideas can change the world, but the problem is that it is difficult to let people understand the vision. Entrepreneurs who are on the third or fourth ideas have the higher chance to convince investors because of their experience. When entrepreneurs can show their experience of what they capable of, it will lead to higher network and resources.
Walia believes entrepreneurs can have bad days. The important thing is to find a way to continue going forward. Entrepreneurs need to find a way to motivate themselves to continue to love their ideas. Everything is about consistency and determination.
Walia shares the idea behind Launch Academy is to provide enough available resources for early entrepreneurs to start their business. Launch Academy provides the environment to give them the chance to network and build teams. The fundamentals in Launch Academy are to share resources, build ideas together, and add back to the community. Walia believes in the technology industry, information is the key. Information comes from individual and people can learn form each other.
“Pay it forward, help others grow”
The most important values in Launch Academy are mentorship and community. By learning from someone who just overcome the similar obstacles or problems, entrepreneurs can accelerate their business more quicker.
Walia symbolizes the members in Launch Academy as “Phenix”. When members realize their ideas are not ideal in the market, they often discover unique relationship with other members and create new ideas. New collaboration happens every day and members come back for new ideas when they are recharged. Launch Academy allows people to know there is a place for them to test, sample, and to market their ideas. Moreover, Launch Academy helps entrepreneurs to access many accelerators and connect with other investors.
Based on stats, 40% of members will fail, 30% will come back with new ideas, 20% will still continue to accelerate and 10% will succeed. Launch Academy will not take any equity from any of members’ startup.
Launch Academy will screen the right members by asking two major questions.
- Do the entrepreneur have the ability to get things done?
- Is the entrepreneur coachable?
“Help people lead their company to a stronger structure”
Launch Academy can provide attraction for early entrepreneurs because the organization invites many leaders to share knowledge of their strategies.
Walia believes the future of Launch Academy will focus on the pipeline of building the bridge to Silicon Valley. Walia will grow Launch Academy to become the gateway to Asia and North America.
Walia believes the most common failure for startups is to have the product before customers. Customers can lead entrepreneurs to the right path. The product can be a bad product, but if there is enough customers, the product will be successful. Another common failure is the team. If entrepreneurs have the best product in the world, with a bad team, it will never sell. A successful team can drive the product to industry.
Another misconception from entrepreneurs is funding. Entrepreneurs cannot start looking for funding when they need it the most. Walia suggests early entrepreneurs to talk to investors for opinions and advices first. After they act on the opinions and advices, they can go back and ask for funding.
Walia wants entrepreneurs to realize that the most rare resource is time. People give their time when they care. Therefore, entrepreneurs should not waste their time when they are not ready. When entrepreneurs share their ideas and prove to them the idea is worth it, even if they do not invest, they will connect them to other investors. Therefore, the conversation is the warm lead to the next investors.
Ask advice-> execute-> ask for more advice more execute-> ask for funding
Building relationship with strategic investors is important. Walia suggests entrepreneurs to find the right people and ask the right questions.
When investors are not ready to invest, they usually means the entrepreneurs are not mentally ready. When people invest, it is their obligation and responsibility to ensure the idea works. It is their hard earn money, so entrepreneurs need to be ready to add values for investors.
When the partnership is formed, Walia wants entrepreneurs to start the negotiating. It is important to hold themselves accountable, do the due diligence, and understand everyone’s abilities and capabilities.
The future of startups in Vancouver
In Vancouver, most business are in the form of Business to Customer. In the future, many small companies will be mature and investors will start to see many Business to Business. There will be many game changers in Vancouver because many different industry players will come up with different and innovative solutions. The engagement is the key to the future and the connection will lead to success. Entrepreneurs will need to bring new ideas and add values to other industries.
Vancouver cannot become the next San Francisco because Vancouver is considered the place for product development. Vancouver is a place to build foundation. If companies want to expand, they need to leave Vancouver to find other growing markets.
In the next 2 years, many companies in Vancouver will attract the talents oversea. These talents will generate ideas for the next 5 years. It is important to sustain these talents in Vancouver and provide them the good base foundation sot they will not leave Vancouver. This means companies need to maximize the environment, culture and resource.
Suggestions for early entrepreneurs
Walia indicates idea is like a seed. Entrepreneurs need to get out there and discover the real customers and the real issue. Many entrepreneurs build their system based on their assumption. However, they need to get out of their comfort zone. They need to learn to talk to their customer first because customers will lead to the right path.
Walia suggests entrepreneurs to revisit their mission and objectives. They need to remind themselves the right direction. When entrepreneurs realize the market is not the right one, they need to act quickly and change. Entrepreneurs should not hesitate and procrastinate.
Walia mentions many factors for successful pitch in front of investors.
- Team
- Add value, not just the Return of Investment
- The size of the industry
- The game changer
- Key performance indicators
- The financial figures
- Revenue stream
- Previous experience
- The drive
- Other advisors
“It is not how much you want, it is how much you can justify what you need”