Reality Check

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REALITY CHECK

The Irreverent Guide to


Outsmarting, Outmanaging, and
Outmarketing Your Competition
GUY KAWASAKI

GUY KAWASAKI is a cofounder and managing director of Garage Technology Ventures, an early-stage
venture capital company. He is also a columnist for Entrepreneur magazine and the cofounder of Alltop.com,
an online magazine. Previously, Mr. Kawasaki was an Apple Fellow at Apple Computer. He is the author of
nine books including The Art of the Start, Rules for Revolutionaries, How to Drive Your Competition Crazy,
Selling the Dream, and The Macintosh Way. Mr. Kawasaki is a graduate of Stanford University and UCLA. He
has also been awarded an honorary doctorate from Babson College.
Mr. Kawasaki’s Web site is at www.guykawasaki.com.

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Reality Check - Page 1

MAIN IDEA
When you’re in the process of trying to start a new enterprise, you’re far better off getting candid and realistic feedback (”Your financial
projections are completely unrealistic!”) than you ever are settling for polite and expedient advice (”Well, that looks pretty interesting.
Let me get back to you!”). In particular, you need down-to-earth and realistic advice about twelve topics if you’re to have any chance of
succeeding and hopefully prospering:

1 Starting Communicating 7
Reality
2 Raising money Check Beguiling 8
– Make sure you
3 Planning and executing have real-world Competing 9
information about
4 Innovating the realities of each Hiring and firing 10
of these key
5 Marketing business topics Working 11

6 Selling and evangelizing Doing good 12

1 The reality of starting Page 2 7 The reality of communicating Page 5


Every start up entails much more floundering and failing than All entrepreneurship is outward focused. You have to get
anyone ever expects at the outset. Don’t let that put you off. good at communicating through e-mail, presentations,
Success happens when crazy, passionate people believe they speeches, panels, blogs, and more. Learn how to master
can change the world. Do what it takes to get things moving. each of these communication channels to get ahead.

2 The reality of raising money Page 2 8 The reality of beguiling Page 6


Raising money is like speed dating. There is a five minute Beguiling means to get things done by creating win-win
window within which people decide whether or not they are situations. If you can structure your business so you give
interested in you. Be prepared to make the right impression people more of what they want, you’ll position yourself to
quickly or you will not attract the funding you require. move forward in figurative leaps and bounds.

3 The reality of planning and executing Page 3 9 The reality of competing Page 6
If you think raising money is hard, you’re in for a shock. That’s Sooner or later, you’ve got to compete with other
the easy part. The real work comes in delivering the results organizations. This is the essence of business. If you aren’t
you promised. That’s okay though because it’s execution going head-to-head against some other organization, it means
which separates the great companies from great ideas. you’re trying to serve a market that does not exist.

4 The reality of innovating Page 4 10 The reality of hiring and firing Page 7
Innovation is extremely hard work. It’s a myth innovation is Hiring and firing are difficult processes – black arts, if you will.
just a matter of sitting around and dreaming up new stuff. So few people are trained in these areas that if you become
Real world innovation is messy, hard work. It takes a lot of better at doing this, your organization will benefit. Get some
effort to come up with something new that will sell. hands-on real world experience in these areas and shine.

5 The reality of marketing Page 4 11 The reality of working Page 7


Marketing has long been considered the party animal of the Building a successful real-world organization of any kind is
corporate world. That’s a false impression. In reality, darn hard work. You start with a clean sheet of paper and
marketing is the process of convincing people they need what then the hard work begins filling in the gaps and creating the
you have to offer. That’s genuinely hard work. business masterpiece you want.

6 The reality of selling and evangelizing Page 5 12 The reality of doing good Page 8
Sales fix everything. As long as you’re selling your stuff, you At the end of your career, how much money you made or how
have cash flow which in turn gives you time to correct any many possessions you own won’t really count for much.
problems. Focus on your selling activities and include some Instead, your career will be measured by how much you’ve
evangelism – the purest form of selling there is. made the world a better place. Work at this all the time.
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