Archives for posts with tag: entrepreneur

Laughter and Catharsis Second Social Entrepreneur Failure Wake

After having seen the first Failure Wake in September, I knew that it would hard to improve on the event. The emotional punch of the stories combined with the energy of the room to give the entrepreneurs just the right level of support and cheer.

Donalda Weaver. Photo by Julia Doro.

Donalda Weaver. Photo by Julia Doro.

Last Monday night, RADIUS held its second Social Entrepreneur Failure Wake, and it was just as good as the first. Although each speaker had a very different style and type of business, they each embodied the spirit of the Wake, sharing openly and candidly about their mistakes and lessons learned. They either had us in stitches and almost in tears—and sometimes both—as theirs stories unfolded on the stage before the crowd of 180 people.

Donalda Weaver was the first to go. She shared the story of how she and her sister started East of Main Café on East Georgia Street in Chinatown. The Café was intended to support their nonprofit Project Limelight, a very worthy cause that works with disadvantaged children on performing arts. Donalda shared how the Café overcame a series of hurtles just to open. Once open they faced new challenges with staffing and nearby construction on the street made it nearly impossible to get to their restaurant.

Despite their best attempts and much more time and resources sunk into it, they ultimately decided to close the Café when they concluded it was no longer helping to fund Project Limelight. They are currently looking for the right partner to take over the location.

Brieanna Ingram. Photo by Julia Doro.

Brieanna Ingram. Photo by Julia Doro.

Brieanna Ingram spoke next. Brieanna grew up very close to her younger sister, who she recognized as exceptionally gifted. When she learned that her sister had ADHD (or Attention Deficit Hyperactive Disorder), Brieanna discovered her personal passion. She pursued a degree in special education and founded a tutoring company specializing in providing her customized curriculum to children with ADHD. Brieanna acknowledges that her strength in tutoring and working with children with ADHD was not matched by her strength with accounting. She was forced to close the business in April as her costs outweighed her income.

What I loved about Brieanna’s story was that she involved everyone in the room through simple and disarming activities. For example, she asked the audience to recount their day in 30 seconds in pairs, back to back. This was, in effect, a simulation of what it feels like to have ADHD. As she said, it should be called Attention Abundance Disorder because “everything is so interesting at the same time.” Ten to 12 percent of children are being diagnosed and nearly 30 percent of high school drop-outs have been diagnosed. Extrapolating that out, one can see the scale of the social problem if it is not addressed. While Brieanna’s business has failed, she has not. She has consulting work lined up and plans are under way for what the future holds for her to continue to work with children who have ADHD.

After the break, Preet Marhawa humbly took the microphone and recounted his story about why he started the food company Organic Lives. Preet’s story begins with his vision about how the world could be a better place through fairly traded, organic foods. Preet’s business gave quickly from a simple buy club for organic foods to a multimillion dollar business in just a few years. Yet, he admits when tragedy stuck, and his primary location burned in a fire, he could have been better prepared.

Preet Marwaha. Photo by Julia Doro.

Preet Marwaha. Photo by Julia Doro.

What struck me about Preet was his sincerity and vulnerability. He was not looking for excuses. He was not bitter that he had to live on borrowed money. Rather, he looked across the room and admitted that his own responsibility in the closing of his social business. In his particular lesson, I heard the general lesson for all of us: let us accept our responsibility for what can go wrong and yet, not be paralyzed by our fear. It’s a tricky, and yet, very important lesson for entrepreneurs and others alike.

Finally, Mike Tippett took the stage. He paused for a moment, looking like he might not know what to say and then he said that he did not know what to say. It was our first taste of his deadpan humor. Yet, Mike was not all jokes. Together with his founding team, he had dreamed of a mobile enabled service that would supercharge local economies through allowing anyone to request and find local products and service providers on their phones. They called it Ayoudo and in one 30-minute meeting with venture capitalists they were able to raise half a million dollars to fund their early exploration of the idea.

Mike Tippett. Photo by Julia Doro.

Mike Tippett. Photo by Julia Doro.

Mike and his team followed Lean Startup methods, researching their market, talking to customers, and eventually building out an early working prototype. At first, usage seemed positive, and then people just stopped using it. They would have to spend more time and money on research to understand their customers. They would need more VC money to fund this next stage of growth. And with each new round, they would have to argue that they would be worth even more money. Rather than dig a deeper hole, Mike and his team paused and reflected whether it would be worth it. To their credit, they knew when to call it a day.

Each speaker generously and graciously agreed to participate in the Social Entrepreneur Failure Wake. As he did in the first Failure Wake, Mike Rowlands, the MC, offered lyrical toasts to each of the speakers in his hilarious sometimes Irish, sometimes Scottish, and sometimes Newfie accent. It was a touching and fun way to put the past behind them and allow the speakers a way to move on to their next venture.



In my search for entrepreneurs in Vancouver who have used Lean Startup practices, I am finding that there is a class of entrepreneurs who are accidentally lean. They came to the same conclusions about the need for validating assumptions with a rigorous experimental process and iterating with low cost trials because they discovered these best practices on their own. Their approach is more unintentional lean startup.

Take Sean Clark, for example, who started in the basement of his parents’ house in Vancouver. Sean and his team have emerged as a Canadian e-commerce success story, but his early days were anything but glamorous. He tested his model with what Eric Ries would call a “concierge minimum viable product.”

This is a fancy way of saying that he put up a $60 website and through a few hundred more in pay per click advertising, tested his site’s flow and landing pages. When someone would buy something from this sandbox in the very early days, he would have to run out and buy it from the shoe store down the street and ship it himself at the post office. This practice matches perfectly the definition of the MVP, yet Clark was not aware of Eric Ries or Steve Blank.

Daryl Hatton learned the value of Lean Startup practices, but only through the hard way of nearly running out of money first and then, by necessity, pivoting the customer segment under the urging of a new partner, PayPal.

His Fundrazr crowd funding platform started as a tool for community groups and sports teams to raise money together. This plan met initial success through a partnership with Facebook that allowed their app to post to the users’ feed. For unrelated reasons, Facebook clamped down on apps’ ability to do this, just as Fundrazr began to see traction.

PayPal approached Hatton with a proposal. They said ‘partner with us and we will drive traffic through your platform.’ The approach was a shift in their original strategy. Instead of community groups, they focused on personal fundraising. He knew that they had made the right decision when they had the first campaigns starting within a few hours of going live.

“At the time of the pivot we were aware of Lean Startup practices, but not using them,” reflects Hatton. “The pivot set us on the path but it still took a long time to sink in.”

Tom Kineshanko started Habitat Enterprises in 2008 in his garage with cofounder Rob Drapala. In the first 24 months after founding they had done over $1.5M in revenue through their software and services business that helped turn reductions in carbon into carbon credits for the European Carbon market.

When this market started to dry up, and with a little cash in the bank left over, Kineshanko and his team began the search for another business. They employed the Business Model Canvas from Business Model Generation and the Minimum Viable Product from The Lean Startup to apply what they learned about the energy markets to create a product that answered a real customer pain point. Their work became Gridbid, an online auction to get multiple offers from solar installers and save on rooftop solar.

While, Fundrazr, and Gridbid share little in terms of their business models, their founders all approached the process by iterating their way towards a successful product/market fit. As Eric Ries concludes The Lean Startup, the best way to learn these techniques is to embed oneself within a community of practice. I feel that Tom Kineshanko, Daryl Hatton, and Sean Clark have done just that.