Take the money or run?

When I started Tandem, I decided that it would be great to do it without finding any outside investors. To be honest, I didn't want to share the fruits of my hard work with someone just because they had some money lying around to let me borrow. I didn't have millions of dollars in the bank, but I did, luckily, have some clients with some projects. And I didn't have a noncompete with my previous employer. So off I went, funding Tandem through project work and trying to run lean.

You may have noticed that the economy is in a recession. It was in a recession when I started Tandem, but nobody was calling it that yet. Now, however, all of the VC that was probably a bit easier to get when I started is not so easy to come by. Check out this TechCrunch article on VC and start ups that really echoes my sentiments. Not only is the nature of VC changing, but project money is a little lighter too. What to do, what to do?

The answer is get innovative. The answer is to look hard at everything that you're doing and cut out all but the important stuff.

I'm not saying I would never take on additional capital. But I am saying that I'd have to feel pretty justified that there were no other options, that I really would need it.

Need versus want

There was a big shift in strategy this week for our first demo, and I'm still of mixed feelings: disappointment, excitement, and resignation.

Since we started planning the first demo, we've been commited to incorporating animated avatars. This week, it became clear that it would takes us several weeks, if not months, longer to complete the demo and cost us tens of thousands more to do it, if we incorporated animations as opposed to video. In the interest of speed and cost, we switched our strategy to use video instead of avatars.

Ultimately, the goal of the demo is to show the strategy of the product, the storyline flow, and the user experience. All of these things can be shown using video. The problems with video in the actual product, though, are having to use the same talent over time, and the ongoing cost of video production.

Avatar animation has a big initial upfront investment, but over time is probably more cost effective. Plus, much easier to edit, and you don't have to keep hiring the same talent over time.

I'm thrilled that the demo will be done soon. I'm disappointed that we couldn't do the whole thing with avatars. I'm looking forward to signing our first contract for this product so the demo will just be another way of showing our capabilities, not the primary way we are exhibiting our virtual world expertise.

The check is in the bank!

$$$$I GOT PAID TODAY!!$$$$

The check was deposited this afternoon. I took a picture of it. I should have taken a picture of me kissing it.
Woohoo!

Unfortunately, the bank informed me that because we have a new account and the check is from a bank in NY, it'll take another 5 business days to clear. Ugh.

Hang on, freelancers--your money is on its way!

I want it now!

I'm not a particularly patient person. Last night, for example, we resumed our weekly Rockstar meeting, and we had a list of business to attend to. None of it, in my opinion, fun. Stuff that needed to get done, no doubt, but not stuff that gets me riled up with the excitement of possibility. 401k options just don't do that for me. We did decide last night that next week we're planning our first product: focusing on a business need, developing a strategy, etc. All leading up to a design document.

Now THAT is exciting. Unfortunately, I have to wait a week.

Tandem still hasn't gotten paid. I have assurances from a very reliable source that I'll get checks in my hand next Tuesday. Tick, tock, tick tock.

I'm planning to have my book done by the end of the summer. If I could write as fast as I talk, it'd probably already be done. Damn my typing skills.

My server still hasn't arrived. I won't be able to finalize benefits until next week.

Why does everything take sooo long?

I'm going to try to remember this feeling when one of my clients expects an unreasonable turn-around time. Because sometimes there are really good reasons why things take time.

And hopefully its true that good things come to those who wait.

Waiting to get paid

It looks like the end of the waiting is near, but good lord, this has been the most stressful part of the wait. I've got bills to pay, expenses to reimburse, and I'm hoping that Friday will be a check writing fiesta. But the money needs to actually make it into my bank account first. C'mon funds transfer!

Cashflow is a much bigger issue than I thought it would be starting Tandem. I underestimated how long it would take to get paid, and how much money we'd be initially putting out to get stuff done. We were coming to the end of our money reserves, and if I had to do over, it would have been nice to save another $10k or so as a buffer for expenses.

I can see how this is an issue that I'll be revisiting throughout the management of Tandem, and one that I didn't have a lot of experience with before. It's been a good learning experience.

As long as I get paid this week...