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Filed under: Stories from a stupid arrogant teenage entrepreneur

Why 99% of Entrepreneurs Fail: Because they don't do anything

I definitely have highs and lows. Often, I’m at the high of a new idea–one that I think can be REALLY promising. This feels good. Really, really good. Mmmm. It’s so happy and life is worth living. But then, swinging to the lows, which are filled with disheartening moments of despair where I think to myself: it’s not worth it, everyone’s doing something, there’s no way to compete, even babies have their own pet projects, *kills self in self-hating moment*
- Anonymous Blogger

I read that quote a few nights ago, and I practically laughed myself to sleep. I love that quote, because it's true (and false) in oh so many ways. Many of you have had the pride and joy of thinking that you know the next billion dollar idea. For scholars, a similar feeling is found when you come to a philosophical epiphany. The high is so great, that it's difficult to get your mind onto anything else.

But also, as many of you know, that feeling sometimes hits its rock bottom when you think that your business idea won't work and your peers find the concept stupid at best. This is where I come into disagreement with the writer of the above quote -- I don't understand why people won't even attempt to make their business idea work. If they're convinced that their idea is the "next Google", how could it hurt to at least disprove that it is?

There are three types of amateur entrepreneurs out there, and in my young life, I've been every single one of them. By coming to terms with my failures, I'm more prepared to classify which type of amateur entrepreneur I am, and thus preventing myself from failing in the same way again.

Type 1 Amateur Entrepreneur: All ideas, no implementation.

Let's admit it. All of us have at some point thought of the brilliant, billion dollar idea. We brainstormed it out, thought about how rich and successful we'd be from having thought of the idea, then dreamt about living lavishly in a penthouse overlooking Central Park with enough money to feed every starving child in Africa. I've done it, and I know you have too. The problem lays in the fact that most self-proclaimed entrepreneurs are great at dreaming and envisioning their business idea, yet they lack the capability (and even willpower) needed to see it through. In my honest opinion, these people cannot be considered legitimate entrepreneurs if all they know is dreaming and allocating the task of implementation to others.

As a 5th grader, I started my first "company" and convinced my entire class to join me in my quest to build the internet's latest and greatest entertainment portal. Of course, I didn't know how to build anything more complex than a basic HTML website. My classmates lost faith in me, and I went down as a failed, type 1 amateur entrepreneur.

Type 2 Amateur Entrepreneur: Lots of ideas and half assed implementations.

These entrepreneurs think of good ideas and have the willpower needed to start working. However, they take the "fail fast" mentality way too far -- they'll launch a prototype of their project, put in almost no effort in getting it noticed, then call it a failure. Or even worse, I know of some entrepreneurs who dedicate months of their time working on a startup idea, but never end up launching. If you're going to fail, at least make people think that you spent your time semi-wisely. Alternatively, type 2 amateur entrepreneurs have multiple ideas that they're simultaneously working on, and figure that they'll get rich from at least one of them. To you and me, this is obviously flawed logic. But at one point, I was a type 2 amateur entrepreneur.

A few years ago, Alex Notov and I co-founded Shockapps.com, a pathetic startup that made numerous, half-assed attempts to launch a successful facebook app. We got a lot of users and made some money, but with a concrete and focussed development strategy, we could have gone much further. We'd launch three apps in a single month, but all of them sucked, and only one of them got traction. When your mind is distracted by the thought of getting rich from multiple business ideas, it can be difficult to follow the rationality behind having focus.

Type 3 Amateur Entrepreneur: Lots of ideas, lots of implementations, and absolutely no focus.

Type 3 entrepreneurs are marginally better than type 1 and 2 combined, but they have absolutely no time for anything other than their work. They make a solid attempt to see their business idea through, but get distracted by the idea of another growth opportunity. I feel bad for these people more than anything -- they try harder than both type 1 and 2 entrepreneurs, yet they often see just as devastating results. (and mostly on their psychological well-being)

Let's say Johnny has an idea for a million-dollar idea. He starts working on it, gets traction, and a loyal client base that's paying for his service. He then finds another growth opportunity -- perhaps a multi BILLION dollar idea that he thinks he should be pursuing. He's locked into business #1, so he can't just drop it. So Johnny starts building up business #2, it gets traction and a loyal user base, and now he's stuck handling two completely different companies. Now how lame would that be?

Unfortunate for my mom and I, but of us have been sucked into the trap of being a type 3 entrepreneur. In fact, my ninth grade business partly failed because of this trap. I started a simple, easy, cheap web hosting company as a way to cover the costs of having a personal website. I then realized that leasing expensive, managed, server solutions to small companies would bring me much more profit. Both businesses were doing pretty well, but they were sucking up all of my free time. What ninth grader should have to deal with the pains of school, running two companies, and the onset of puberty? Gag me with a spoon.

Going back to the quote -- yes, everyone is "working" on a project, but 99% of self-proclaimed entrepreneurs fit into one of the three profiles above. If you've thought of the next billion dollar idea, please refrain yourself from being an amateur entrepreneur. If you find yourself as being an amateur entrepreneur, it's not too late to change. Pick one idea that you're passionate about, and whole-heartedley follow through with your implementation. Forget about the babies who have their own pet projects! If you don't put in the effort to build your company, you'll see nothing but a self-hating outcome. To the blogger who wrote the quote above: when you make the time and find the resources needed to make your idea a reality, you'll experience the bliss of knowing that you've contributed to something amazing.

I'm super picky with companies! Why and how I'll choose my summer internship.

Update: I've received over a dozen emails and phone calls from companies who want me as an intern this summer. I'm inching towards the final phases of my search, and plan on making a final decision by the evening of May 1st. Thanks for all of your support and encouragement!

The past few days have been intense! In a nutshell, I've been looking at an internship -- yes, a JOB with a real COMPANY. It's come to my stark realization that I never thought about working for a company not so much because I thought corporations were dumb, but because there are few places that would allow me to explore my own projects. In other words, I would only work for a company that allowed me to be an entrepreneur within the company. While there aren't many companies with such a culture, I've started to look at a few companies that prosper on having creative and fast moving "intra-preneurs." My partial list includes Ning, Six Apart, PBWiki, and Ustream.

Of course, being that I'm bratty Jessica Mah, I'm super picky with the companies I would want to deal with. Here are my thoughts and reasoning behind the companies I've talked with so far:

1) I'm picky with the companies I interview with, and I immediately look for a culture fit. If anything, culture fit is the FIRST thing I look for in a company. If I'm not going to be happy there, it's not even worth a legit interview. What does culture mean? That deserves a blog post on its own, but it's so crucial for a startup to be fast-moving, communicative, open-minded, friendly, and enthusiastic. If the company has high-walled cubicles and segregated "departments," I have no interest in spending my summer there.

2) I don't accept offers from companies who don't thoroughly interview me. Sure, I think I'm a moderately smart person. However, I want to work for a company where people are brilliant. If the company doesn't bother to test my knowledge and skills, it shows that they don't take hiring seriously. With that said, if I get a job or internship offer from a company that doesn't spend the time needed to test me for culture and knowledge fit, I don't see the company as being good enough for me. Lesson: I only work for startups that make it difficult for me to get in. The next time you interview a "rockstar" prospective employee, keep this in mind.

3) Companies and employees need to give and take equally from each other. In my search for a summer internship, I'm not looking for a big name brand. I want to work for a company that lets me play around with my product management, business, and coding skills. I want to work for a company that wants me as much as I want them. One of the companies on my list offered to fly me out for a visit -- that shows a lot of dedication. It proves to me that the company wants me as bad as I want it.

4) Do programming ninjas talk to the business people? In other words, do the complaints and desires of the users get seen by the people working on the product? Sounds like a silly question, but so many companies (United Airlines among them,) don't have any connect between the customer support people and the executives who implement the changes. With that said, I like seeing companies where coders and business people are in everyday dialogue with each other. I love how Ning's customer advocate team also works in product management -- since they talk to customers everyday, they are more likely to know what changes should be made.

5) Money!!! As you've probably read before, compensation is not my #1 priority. However, it's not something that can be ignored. Living in the Bay Area this summer costs a LOT of money. I'll be paying $2000+ / month in various living costs that include food, apartment, transportation. Then I somehow need to pay off the $5,000 summer tuition bill that Stanford University is soon to send me. The startup scene is competitive -- In most cases, I want these companies just as much as they want me. If they want me to join on board, a competitive offer is definitely in order.

6) Networking, colleagues, and mentors. Last, but not least, I look for any potential to grow my network. I'm looking for executives who are well connected in Silicon Valley and beyond. I'm looking for colleagues who are open and willing to help me just as much as I'm willing to help them. With all of the companies I've applied to so far, I've either personally met an executive there or had one of my friends refer me. Never underestimate the power of a personal network!

With that said, I'll keep you updated with my internship hunt. Now you know the supposedly secret thoughts on what a self proclaimed teen entrepreneur looks for in an internship! Having this summer internship won't slow me down from being an entrepreneur. It's simply a way for me to further my learning -- a way for me to figure out how fast-moving companies survive and grow.

By the time I graduate with my Bachelor's degree in two years, I'll be fully prepared to take on the world with a company of my own.

Jessica Mah is a 17 year old entrepreneur, blogger, and sophomore at early college, Bard College at Simon's Rock.

She loves chatting with fellow students, readers, and entrepreneurs, so don't hesitate to email her or message her on AIM! Feel free to subscribe to her blog or stalk her twitter.

My computer camp turned into a big nasty corporation

The following post was inspired by a random flash-back I just had. I'll look for old photos and post them if and when I find them!

Oh, the days of computer camp! I attended a computer camp from 2002-2006 and watched it transform from small intimate startup into a big nasty corporation. There was a huge influx of campers and counselors, and the management staff became uptight and nasty authoritarians. Here's the story from the eyes of 13 year old Jessica Mah:

I remember going to a summer camp fair, where dozens of summer camps showcased their pictures and activities in their booths. I walked around, and most of the camps were sports related. Being the young, geeky, unattractive 13 year old Jessica Mah that I was, I immediately picked up the brochures for the only computer camp there. My engineer dad was pushing me to go, and of course, I did! That summer, I was sent off to computer camp and experienced the best two weeks of my life. What's better than eating pizza while tinkering with C++ and playing counter-strike at 3AM? Nothing can top that!

So why were these two weeks at computer camp so significant to my growth as a geek and eventually an entrepreneur? As always, it's about the people. In my first hour at computer camp, I had already befriended four other 12/13 year old tech geeks -- at which point, I had an amazing revelation. I realized that I wasn't alone in this world! Yes, as lame as that sounds, I realized that I wasn't as nerdy weird as I had always thought I was. I FINALLY found a place where I was the "coolest" of the pack. Within 24 hours, I was tooling around with Apache server and dual booting with Fedora Linux on my 800mhz Compaq laptop thanks to camp friends.

Summer after summer, I continued going to computer camp, and I continued to love it... that is, until things got strict. There was bureaucracy. The counselors and directors took advantage of their power. Counter-strike was banned. 1/3 of our time was re-allocated to being required outdoor recreation time. Hundreds of more kids came, counselors were abusing their power, internet was banned from the dorms, and boys couldn't hang out in girls' rooms. All of a sudden, senior campers found themselves lost in a major corporation that decided to fire the founders and hire Harvard M.B.A. types. All of the new rules in place were to appease the "investors" (parents) at the expense of "customers" (campers). And to this day, my fellow camper friends and I chat on AIM about how the summer camp lost its touch and became just like every other major organization.

I think it's time that a new startuppy computer camp takes foot-hold in Silicon Valley -- except it should be WAY more than just a geeky computer camp: it should teach the fundamentals of running a startup and being entrepreneurial. How to attract users, how to co-create products with customer input, revenue models, etc... Such a summer camp would be for smart and motivated geeks 13-18 years old. There's an application process to get admitted into the summer camp, but that would insure that the campers are only of top caliber. Bureaucracy and rules exist to manage incompetent employees -- same applies to children. For recreational activity, we'll offer DDR and counter-strike themed laser tag. Together, we can re-create the geeky teenage summer camp that will always maintain its small start-up culture. In other words, we would be creating the "Rackspace of Computer Camps" or a TechStars targeted to teens. Sounds like a plan!

Jessica Mah is a 17 year old entrepreneur, blogger, and sophomore at early college, Bard College at Simon's Rock.

She loves chatting with fellow students, readers, and entrepreneurs, so don't hesitate to email her or message her on AIM! Feel free to subscribe to her blog or stalk her twitter.

Part 2: Stories from a stupid, arrogant, teenage entrepreneur

So many books talk about how entrepreneurs did this or did that, but it's all about the team. I didn't do jack compared to my counterparts. I found a few super motivated kids my age who wanted to join in on the business venture, and we split the work out depending on where our skill sets were. I did business, sales, marketing, and intermediate level tech support. Alan was a hardcore techy. Tyler filled in for both me and Alan. This brings me to my next lesson from when I supposedly ran a business back when I was 13: Your team matters more than you do. Make them happy, and they'll save you when you need them most.

Mishap #1: (4 months in business, 300 customers) I was driving down the freeway with my family on a rainy day in July. We were driving up the Jersey Coast, going to our next vacation destination. All of my responsibilities were temporarily designated to one of my co-founders, Tyler, and I received a terrible phone call:

"Hey umm... our servers are down! All of our customers are bitching at us!"

Oh. Bloody. Hell. We had downtime for the next 48 hours and eventually found out that one of our customers, once again, was phishing. In other words, somebody with an account on our primary machine was pretending to be PayPal and sent out fake emails. All of this from OUR server. This cost the company a few hundred dollars in revenue and thousands more in potential business, but it was a good lesson that I learned young. a) invest in security, b) figure out ways to get your customers online if such a problem ever happened, c) compensate them for having suffered through your stupidity, and d) be transparent and honest as to what happened. We failed to do all of the above when we needed to. Fortunately, we learned from these mistakes. We ended up giving out heavily discounted services and emailing updates to customers when they suffered through our careless mistakes.

Mishap #2: (9 months in business, 700 customers) I was in a hotel room on December 31st a few years ago. It was 11:59 and 15 seconds (+/- 10 seconds) and suddenly I get a phone call. Of course, another problem while I'm trying to enjoy my vacation. Co-founder Tyler tells me that some f**khead hacked into all of our servers and wiped off our clients' accounts. Not. Funny. Except this time, we learned from our mistakes. My other co-founder, Alan, was also a nerdy Asian. He was brilliant. An absolute genius. He found out what happened and he patched the problems up within 15 minutes by reverting to our backup machines. Since this was new years, nobody was looking. We were so fast with getting things back online that not a single customer sent us a support ticket. This brings me to my next super important lesson: Always critique yourself and learn from your mistakes. If something terrible happens, (such as if some dickhead deletes all of your customers' accounts,) then learn. Figure out what happened, patch it up, and promise that it'll never ever happen again in the future. And if somehow it does, you're going to lose business.

More to come on my stories from when I was a stupid, arrogant, teenage entrepreneur!

Jessica Mah is a 17 year old entrepreneur, blogger, and sophomore in college. She's currently the founder of a startup, managing editor at Startupism.com, and Jessicamah.com. In her free time, she enjoys the prospect of being an underage angel investor while partying like a rock star.

Part 1: Stories from a stupid, arrogant, teenage entrepreneur

The following stories were inspired by the many emails I've gotten from readers, telling me how ignorant and arrogant I am. They're all correct in calling me out for it. What you're about to read dates back 4 years ago and are true events of what happened in my semi-professional life.

I've been absolutely terrible at being honest with myself until recently. Just a year or so ago, I'd pop onto my resume and college apps that I was an entrepreneur who knew how to run a company at the tender age of 13. Lies! With all honesty, I'm not the best at it. I have no proof to show that I'm capable of running a sustainable company, but I'll tell you right here that I'm nowhere close to being a good role model.

However, I've recently been able to come to terms with this. I don't tell many people about what happened with my first company because I considered those my "dark days." I was basically a nerd. I grew up as shy as Mark Zuckerberg and I despised public speaking. Matter of fact, I vividly remember my first day of public speaking class in the 7th grade. It was horrendous. I didn't have many friends, I never spoke in front of an audience before, and I was being critically analyzed by my peers. I was being graded on my public speaking abilities! What could possibly be worse?

Just a month after I began taking this "public speaking" class in school, I decided to start a company. To be honest, I was just being a greedy little asian nerd. I wanted my own website hosting and I didn't want to spend my own money, so I spent my customers' money. In other words, I wanted a website, but I had nobody but myself to pay for it. I decided, why not start a company where I can sell the space I have for a higher price? There was no vision. No business plan. No executive summary. I just felt like doing it. In hindsight, having a solid or semi-solid plan might have saved me from utter failure. I had no clue what an Apache web server was. I had no clue what Linux was. I had no clue how to use SSH. I didn't have the bravery to talk to customers over the phone. But hey, I was a motivated and incredibly ignorant teenager. I still am.

Back to the story: So the days went by, and within 2 weeks of starting the company, I had over 40 customers. I was a stupid little kid. Seriously. These customers paid anywhere between $2-$50 per year for their hosting. The $2/year wasn't meant to bring me a profit, but rather to make for good press and get people to order other things. There are ALWAYS strings attached to stupid budget deals like that. I'm telling you from first-hand experience. :)

After about a month, I broke even on this website hosting business. I bought cheap services and resold them for just about nothing, and that's exactly what my customers got when my service went down. Within 3 months of being in business, my operations were shut down because of fraudsters who were pretending to be PayPal from my machine. I was out of luck, and my customers hated me. That's why god invented something called the "disclaimer." Business picked up slowly but surely after that mishap when I upgraded my services to machines at LayeredTech.com. They cost a whole lot more, but at least I didn't get constant downtime and complaints from customers. Investing into REAL architecture, services, and support is something I'd advise doing from day one.

The days went by, and I spent more and more time working on this *business* - I'd wake up at 6:30AM to check my business support emails, go to school at 7:30AM, check my emails several times throughout the school day, and work from 3PM until as late as 4AM. To this day, I don't think she even knows. I took my business seriously, and if it meant staying up an extra 5 hours to fix a server issue, me and my team would do it. Entrepreneurs are overrated. They get more credit than they deserve, and their team means so much to the success of the company. If I said that I was the primary reason behind the company's false sense of growth, I'd be lying to you.

Part 2 is in the works. P.S. I got a B in that 7th grade speech class. The following year, I earned myself a solid A with the same teacher.

Jessica Mah is a 17 year old entrepreneur, blogger, and sophomore in college. She's currently the founder of a startup, managing editor at Startupism.com, and Jessicamah.com. In her free time, she enjoys the prospect of being an underage angel investor while partying like a rock star.