Jason Scherr was the CEO of Tivity, a StartFast 2012 team.  When Jason announced he was closing down Tivity and joining the leadership team at Echolocation, we asked him for his reflections and key lesson learned.  Here are his thoughts.

1) Make sure your team is as invested in your company as you are. For me, it was really hard to be part of a team where the equity stakes were equal but the level of commitment to the business was not. Side projects and second jobs are early indicators that the person you are working with may not be the right choice. It’s irritatingly frustrating to put your heart and soul into something while those around you have one foot in another door. Avoid this situation at all costs while building your executive team.

2) Along with team commitment, team quality is of the utmost importance. I’ve been with Echo for two months now and I already see a difference in execution based solely on our team’s differing backgrounds. I am in charge of business development and customer acquisition efforts, Rocky is in charge of design, and Brian is in charge of programming. This allows us all to move forward in different directions and, most importantly, come back to each other with new, executable information. And don’t settle when it comes to whom you hire. You may not have a lot of money, but it’ll cost you more than money if you hire the wrong people just to get things done quickly. You get what you pay for.

3) Speaking of money, budgeting is beyond crucial. The only thing you have less of than time is money. We were fortunate enough to have some money, but didn’t budget properly. Getting an extra 5 – 10k every time you are low on money is much worse than getting 30k upfront. Know your expenses, what you are paying for and the length of your runway. If your team is really into what you are doing, ask them to take a pay cut in exchange for equity long before you have to. Even if they say no, you’ll get a better idea of their commitment to the company and you’ll still have money to pay them up until your runway ends.

4) Ideas are worth shit. Don’t be afraid to tell anybody anything. It’s all about execution.

5) Meet with as many people as possible that use your product, would use your product, or understand your product. Your goal is to learn as much as you can in the shortest period of time. “Start Fast” and build something better. You need to find your niche as quickly as possible, and that doesn’t come from sitting behind a computer all day. Get on the phone and on the street. Last week I met with someone out on the other end of Brooklyn because he was using the Echo app to promote his business. We met with him, grabbed lunch, and then got some of the most valuable feedback we’ve ever received. Check out my depiction of the experience here blog.echolocation.com.

6) Test every single idea you have. Write everything you think down and then do you best to execute. Connect and follow-up with every mentor possible, and if they don’t answer, email them a second, third and fourth time. Chances are they are just busy and don’t hate you that much. Out of everyone I’ve met through StartFast, 98% have gotten back to me and only 1 or 2 have actually told me they are no longer available for contact.

7) If you’re not learning you’re standing still, and if you’re standing still you’re doomed. Any feedback is good feedback. If you aren’t making decisions everyday about how to improve or build your business, than you aren’t building your business.

8) A crappy product can get you feedback, but a crappy team cannot. If you see habits or problems delaying your output, nip them in the bud before it’s too late (i.e., you run out of money). Odds are you are going to fail, and the faster you fail the more time you can spend on future failures…;-)

9) Having a business model is not an option or something that you will fall in to overnight. Build toward a business model. Make money in any way possible and then try to replicate that model. Investors LOVE recurring revenue, no matter how small the amount.

10) People (mentors especially) are often willing to help, especially while you’re part of the StartFast program. Don’t be afraid to take people up on their offers, and let them know where their advice got you. Showing a pattern of execution is half the battle while you’re looking to raise money. As Yogi Berra put it best, “90% of the game is half-mental”.

You can follow Jason on Twitter (@thescherrthing).

Guest post by StartFast Entrepreneur-In-Residence, Kyle Blumin.  Follow Kyle on Twitter (@kyleblumin).

A funny thing happens when you start a company. All of a sudden everyone and their mother has an opinion as to what you’re up to. Everyone from family and friends to advisers and mentors love to bestow their best advice or critique on to you. Your investors won’t be shy either. If you let it, this can become cumbersome at best or in some cases debilitating at worst. While they all have great intentions, it is up to you to determine how best to utilize or discard their advice.

When starting a company, getting lots of input at the front end of the process can actually help you find the right thing to focus on.  In fact, getting more input and learning to sort through it is good up front. Mentor input is feedback that needs to be accepted or rejected based on data.  Once you have an executable, market validated strategy laid out, not losing your focus is critical for success. As your company matures, staying on task will be one of your biggest challenges. Your behavior and the actions you take will ultimately lead to your success or failure. You can control a lot about your own behavior. However, there’s even more that you can’t control about what can impact your business. Ultimately that’s why what you focus on is so important.

Take the case of Carl Richards. Carl was a financial adviser at Merrill Lynch that ultimately lost his home to foreclosure during the housing run-up and subsequent collapse. While he didn’t create a start-up, his behavior is analogous to my point. The most obvious and easiest decisions can be derailed by losing focus – a financial adviser isn’t supposed to lose his house to foreclosure.  So how could that possibly happen? Quite frankly, he lost focus by letting the environment around him impact his decisions without focusing on the underlying data. Based upon pure data, he knew that the housing valuations were bogus, yet his behavior got the best of him. It is a refreshingly honest story that you can read about here.

There are multiple mission critical decisions that need to be made on a daily basis in the life of a start-up as well as a maturing company. Some decisions need to be made in concert with executing your strategy and others need to be made in order to put out that day’s fire. Both of which are important and both can either lever your success or end in dire consequences. Life and death situations happen every day in start-ups and early stage business. Losing focus is not an option – it will kill your venture.

Someone once said to me that, ”if you live like nobody will, eventually you can live like nobody can.” When I was building my companies or executing on strategies to turn them around, I always had options to spend time and energy doing things that seemed like a lot more fun away from the office. I also had options to focus on issues that either weren’t part of the strategy or weren’t based on data. I stayed the course with the strategic process and put those non-business related opportunities on the back burner. Sacrifice is part of the game in building your company. It’s pretty easy to be taken off course because your buddies are going to Vegas for the week or there are rumors within the marketplace about your competitors. There are a multitude of reasons to take your eye off the ball.

Focusing on driving your business related to data, things that matter and what you can control will go a long way towards driving your success. It’s easier than you think if you refuse to give in to the pressures that are not driven by data. One day that focus will pay off for you. The more you concentrate on it, the easier it is over time. It becomes akin to muscle memory. It should become your best friend.

Just keep in mind that the trip to Vegas will be a lot more fun after you’ve succeeded!

This is a guest post by StartFast EIR Kyle Blumin (@kyleblumin)

Hi, my name is Kyle, and I”m addicted to skiing. Somehow I”ve managed to weave skiing into my personal and professional life. I rolled into Park City, Utah today after driving a little over 2000 miles from Syracuse, New York. Many of you reading this must be wondering what would possess me to do such a thing considering the Wright brothers invented flying a long time ago. The simple answer is – my dog. My wife and I were never thrilled with the concept of putting him on a plane. So, yours truly drew the short straw. At least that”s what I thought when I contemplated repeating what has become an annual trip to Mecca. My trip would prove otherwise.

As mile after mile rolled by I couldn”t help but think how incredible it is that everything I was seeing was created in about 200 years. Low and slow gives you a completely different perspective than peanuts and soda or the smelly guy that just won”t shut up. The thought crossed my mind that I was traveling in a car at 75 miles per hour with heat, heated seats, anti-lock brakes and air bags. The temperature in Wyoming was -20 degrees and the wind was blowing at 35 miles per hour. I couldn”t imagine what it was like for the early pioneers of this country in the face of weather like that without any modern amenities. Imagine traveling by foot or horse across undeveloped land with no map and no real understanding as to what your fate truly was to be. No cars, no fast food, no cell phone, no government, no nothin”. Just try to imagine that – let it sink in. Some died along the way in horrific events. But some actually found a way to survive and made it. It had to have taken an unwavering mental acuity and stubbornness to make it. Because of that mental fortitude and ability to survive, others thrived and this country was built.

When you drive 2000 miles, you have a lot of time to think. You also have a lot of time to listen to music that you”re thankful nobody else knows you”re listening to (come on, you know you”ve done that). As I thought casino online nl about all that has been created in a fairly short period of time, it amazed me even more to think about what has developed over the last 30 years. The personal computer, email, cell phone, mobile device, internet and social media have all developed since the 80″s. The mass commercialization of all of this has really only come to be within the last 20 years. The proliferation of technology that allows for intricate communication to occur in seconds over a distance that took me days to drive was developed in less than 10% of the history of this country. Amazing.

I used to use the saying, “none of this matters in 100 years anyways”. Over time I”ve come to realize that nothing could be farther from the truth. Without the pioneers, none of this would have taken place. If not for the pioneers, you and I wouldn”t be living the lives we”re living. “Entrepreneur” is just an eloquent way of describing a pioneer. Entrepreneurs also travel across undeveloped land with no map and no real understanding as to what their fate truly is to be. They too have unwavering mental acuity and stubbornness to make it. My hat is tipped to those that find a way to lay railroad tracks across massive stretches of land risking life and capital or to those that develop social networks used by billions of people. While different, they are similar in that they overcame massive hurdles to succeed.

I”m privileged to be working with the next generation of pioneers at StartFast. I can”t wait to see the next 10 years of development all around us. Pioneer on, find a way….and pray for snow!

2012 was a year of many firsts for StartFast and also one of great changes in the landscape for early stage investors and accelerator programs.  We look forward to 2013 with great anticipation and are making several improvements to this summer’s program with the twin goals of bringing faster returns to investors and greater value to founders.

1. EIRs: We have instituted an Entrepreneur in Residence (EIR) program so that StartFast teams have the ability to work closely with experienced entrepreneurs who can play a key role as a virtual member of the startup team. StartFast EIRs are exited serial entrepreneurs and investors who will grow the StartFast network’s reach, help recruit great companies, identify new mentors/investors and work with the selected companies to more quickly meet their goals and investors’ expectations. Our first two EIRs, Kyle Blumin and Jeremy Schwimmer, are already active in identifying, screening, and recruiting startups. Additional EIRs will be announced in the coming weeks.
2. Rolling Admissions: StartFast is instituting a rolling admissions policy so that we incentivize early applications and also have the opportunity to maximize the time spent with applicants prior to the start of the program.  This means that startups that apply early get our attention first and as the slots get filled, later  applications have a tougher time competing for the remaining slots.  These extra weeks and months can be critical in helping companies reevaluate their direction, achieve better product-market fit, and even access additional investment capital.  With our new EIRs on board, we have greater bandwidth and a much larger network for engaging founders early and often. Apply Now
3. Additional Capital: In response to the widely publicized “A-round crunch”, we are raising additional funds from existing and new investors and sponsors. We plan on making follow-on investments in the most promising StartFast companies.
4. Investor Outreach: We are growing our outreach in Boston and New York to both recruit new startups and increase opportunities for StartFast teams to present to accredited investors. In addition, in 2013 we will ask regional entrepreneurs and angels to host events in Rochester, Buffalo, Albany, Ithaca and Binghamton.
5. New Guidebook: We will be publishing volume 2 of the StartFast! book series to enhance founder education. Volume 1, published in January 2012, covers lean startup principles. Volume 2, “Growth Hacking – A Practitioner’s Guide to Lean Marketing” will cover the best means to engineer rapid growth.

We’re proud of what we’re doing and excited about Upstate NY’s entrepreneurial renaissance. We don’t aspire to be Silicon Valley or Manhattan, but we are on our way to building a great entrepreneurial community and creating opportunities for value investors that are not available in more overheated markets. StartFast is tapping into the tremendous talent of our region as well as recruiting the best and brightest from around the world.

This is a guest post by StartFast Entrepreneur in Residence Kyle Blumin.  Follow Kyle on Twitter (@kyleblumin)

It is really hard to succeed in the start-up world. 90% of new products fail (The Start-Up Owners Manual: Steve Blank, Bob Dorf). So what is it about entrepreneurs that allow us to understand this and still move forward into the land of the unknown? Stupidity…balls…greed…blind faith? Maybe or maybe not. The reality is that many entrepreneurs want to solve for a problem they see that impacts them. And so it begins… They spend tremendous effort talking about it, building the prototype, iterating, scraping together money to fund it, going into debt for it, believing in their soul that this is the next great whizbanger – and 90% of them end up in a smoldering wrecked heap on the side of the road. How could this have happened? They knew the world was ready for their beautiful and precious whizbanger. They were so sure of it they mortgaged their house, leveraged life-long friendships, borrowed from college funds, borrowed from family, borrowed from their own quality of life and burned countless hours in the whizbanger factory. Exhausting…

There are multiple reasons why start-ups fail. Founders are a poor fit, the idea was bad to begin with, markets shift, investors bail, and so on and so on. I’m a big believer that a substantial amount of failed start-ups would never have started to begin with if they had just asked themselves the very fundamentally simple question, “how in the hell am I going to make money with this venture?” Or better yet, “how can I make a lot of money with this?” Keep in mind that 90% of start-ups fail. If you are going to invest your entire being into this venture and ask others to do the same and invest along with that effort, you had better be able to have a realistic potential to make it all worth it and then some. In other words, build a real business.

I’ve had three successful exits. I am grateful for that. However, I would attribute that success to a few things. The first is luck. Don’t ever let anyone tell you that luck didn’t play into their success in some way. I’m not talking about lottery-winning luck – I mean the power of convergence. I believe you can make your own luck if you work hard enough and try to think a few steps ahead of where you’re going. The second is being truthful with yourself. Put yourself in the shoes of your potential customers and investors. Would you write a check to yourself as an investor or customer for what it is your venture offers? If there is any doubt, you probably have some soul searching to do to figure out what holes there are in the story you are telling yourself. The last thing I would attribute my success to is being able to check my ego at the door. I often share with people that ego can cost you a fortune. Starting a company is not for those with thin skin. If you can’t look at failing and being able to pivot on an idea as succeeding, this game probably isn’t for you. However, if you are receptive to help from others, mentoring and constructive criticism, chances are you’re one step closer to success.

Are you working on the next great whizbanger? Man, I hope not…

After a grueling three and a half month review process encompassing over three hundred startups from all over the world, nine entrepreneurial teams will be making the trip to Syracuse, NY for the 2012 StartFast Venture Accelerator program.  Reserve your seats now for Demo Day in Syracuse on August 16, 2012.

StartFast Class of 2012

Mozzo Analytics (Syracuse, NY and Philadelphia, PA) MozzoLinks extracts all the links from your gmail. In one glance, you will see an organized summary of your links, searchable by people, topics and time. All your links, right at your fingertips. (http://mozzoanalytics.com)

PadProof (Orlando, FL and NYC) The photos you want, in the palm of your hand. A proofing app for the moments that matter, built to go anywhere you do. Preview, share and purchase your photos from your photographer with the swipe of a finger. (http://padproof.com)

BitePal (Ithaca, NY) BitePal makes getting a restaurant discount fast and easy. No payments, printing, or registration necessary. You simply choose one of the deals we offer, provide your cell phone number so we can send you a confirmation message, and then show this message to the waiter at your table once you are done eating. (http://bitepal.com)

Cayo-Tech (Tel Mond, Israel) ‘Guard My Angel’ is a mobile application that watches over you without compromising your privacy. Whether you are walking alone in a dark alley, getting on a cab, or anytime you feel you need someone at your side, in the case of an emergency, we will notify your family and friends with the information they need to help you. (http://guardmyangel.com)

RevoPT (Ithaca, NY) Web and mobile applications to make physical therapy more personalized and more effective. RevoPT brings a simple, personalized, and interactive home exercise program that keeps patients accountable and increases the efficiency and effectiveness of rehabilitation. (Website under development)

Tivity (NYC) A social network for people looking to find, schedule, and share active lifestyle activities with people around them. (http://tivity.us)

Streamspec (Syracuse, NY and NYC) a next generation, image based Internet advertising company. (www.streamspec.com)

CanVita (Denver, CO and NYC) The visual and evolving CV for the era of the social web, Canvita showcases your evolution and best work in a fun and intuitive way.  (http://canvita.com)

Chuck and I have two busy days planned in NYC this week.  While most of our time will be in meetings with various investors, mentors, and startups, we do have a few public events planned.  If you are interested in learning more about StartFast please join us at any of the following events:

February 29, 2012

2:00-4:00 PM  Open Office Hours with Chuck and Nasir (sign up)

5:00-6:30 PM  Chuck is teaching a class on startup acceleration (sign up)

March 1, 2012

12:30-1:45 PM  We will be speaking to NYU entrepreneurs (NYU Stern Tisch Hall, Room UC-24, 40 West 4th Street)

6:00-7:30 PM  We will be at a StartFast in NYC Happy Hour with some of our friends and mentors (Tom & Jerry’s 288 Bar, 288 Elizabeth Street, NY, NY 10012)

Hope you can join us!

2012 is shaping up to be a great year for our entrepreneurs with lots of events to attend and successes to celebrate.

EXITS:  Hot on the heels of recent exits for Sensis (Syracuse), Kionix (Ithaca), and Paetec (Rochester), Buffalo-based Synacor debuted on the NASDAQ this past week, creating liquidity for two of the region’s early stage investors: Rand Capital and Advantage Capital.

FINANCINGS:  The Seed Capital Fund of CNY (a StartFast investor) reports that four portfolio companies are expected to close about $7MM in new funding this quarter.  In addition to SCF, participating investors include Cayuga Venture Fund, Rand Capital, Eastern NY Angels and several out of state angels/VCs.

STARTUP WEEKENDS:  Last November’s sold out events in Ithaca and Syracuse showed just how much talent is locked up in our region and the many serial entrepreneurs who are ready to mentor a new generation of startups.  This year promises at least four to six more such events, beginning with Albany in March and Rochester in April.

MEETUPS: Just a year after its launch, the Syracuse Tech Meetup group continues to grow in size and popularity, drawing hundreds of attendees.  The next meetup is February 28 and offers startups a chance to meet organizers and mentors from the StartFast and Student Sandbox accelerators.

Subscribe to the Upstate Venture Connect calendar via RSS to stay in the loop on future events.

By Nasir

In the 10 or so days that our website has been open for applications, the most frequently asked question is: What do you look for in your first screen of applications?

Answer. The first things we look for are: idea quality; team capability; and founder commitment

Idea quality:  StartFast has assembled an amazing group of mentors and our funding comes from private investors who are seeking high growth opportunities.  Both groups are making the commitment believing that their money and time will be well spent.  Ideas that are unlikely to inspire the interest of our mentors are also unlikely to be successful in getting follow-on investor interest and/or customer adoption.  We are looking for ideas that have the potential to create disruptive change and unlock significant economic opportunities. Period.

Team capability:  StartFast is a three month program and expectations of founding teams are high.  We expect teams to build a product, validate with users, and repeat until they get it right.  At the same time, they will have to create a business model, test with customers, tweak or pivot until they get it right.  For starters, it is more than a one-person job.  Our mentors will provide lots of suggestions and feedback, and we will have specialists available to help with specific design or coding tasks.  However, the core team should have the technical ability and business confidence to execute successfully on both the product and business tracks.  The best way for us to gauge whether teams can perform is if they apply early, then provide ongoing updates during the application period to reinforce their superiority with concrete achievements.

Founder commitment:  Last, but not least, our expectation is that founders applying to StartFast work on the startup full-time.  This may be the only non-negotiable requirement and stems from our experience as seed investors.  Our expectation is that teams will be in Syracuse for the duration of the program, but we do not have any constraints on where you take the business after graduation.