Got a very different post here…not related to mobile, but definitely to OTAir. Sharing some lessons learned to help others out there looking to launch a venture…

17 may be a rather unusual quantity for a how-to list. Top 10 is more typical. But, this is not your typical “steps to launching a business” post either. How do I know? I have read that kind of typical advice…weak in the battlefield of reality. Allow me to explain…

When the entrepreneurial bug was nibbling prior to co-founding OTAir in 2005, I thought it wise to read a number of books describing the important steps to launching a business. Armed with what I thought were the basic essentials of understanding from my reading (note I also had a business oriented Masters in Technology Management and Marketing), the “real world” taught me and my business partner a whole new set of top 10 steps…learned the hard way, in retrospect.

I am writing about it this many years later, as we have been fortunate to overcome previous mistakes. More so though due to Inc.com publishing, this morning, a piece by David Ronick, co-founder of UpStart Bootcamp, entitled “10 Steps From Idea to Business.” As I read it, deja vu kicked in. I recalled reading very similar advice years before…good advice that fell short of being “enough” for actually launching OTAir on more healthier footing than we did. Please believe me when I say I am not knocking David’s article. The steps he outlines are important and valid. I simply contend that they are the basics and not representative of the most important steps.

David’s article inspired me to put fingers to the keyboard and share key steps gleaned from years of reflection on personal experience. I found my 10 steps to encompass all of David’s at key points, hence between the two of us…17 steps…no doubt still not an exhaustive list to which more could be added.

The essentials of facing the real world of business with an idea are…

1. Follow steps 1-4 as told by David. See, I admire and agree with David’s advice. I am even starting with it. Really ponder your idea. Consider risks stemming from limited resources, market conditions, and disruptive technologies among other factors. If possible, develop reasonable risk mitigation tactics. I will add, the best piece of advice I admittedly heard from others…build what you would use. If your product or service solves a need you have or are personally familiar with, all the better given your intimate experience with the void your idea will address.
2. Now my turn with my first added step…Identify how much you are willing to lose. Notice I didn’t say money and I didn’t say spend or invest, but rather the harshest possibility of losing everything that matters to you. Assume failure and what would failure cost you in time, opportunity, esteem, family relationships, and money. This does not mean be a pessimist and scrap your idea. I’m simply reminding you that most businesses do fail, and if you define what you are comfortable with your dream costing you should it not work out, and stick to that “expenditure,” then that is all you will lose. Set your hours and family expectations, and put all the money you are willing to lose in a separate account.
3. Determine how much you must make monthly. Calculate the bare minimum you need to cover your living expenses starting month one. The more you were previously making, the harder this step is likely to be. But it is essential. You want to avoid going into any debt beyond what you are willing to lose in step two. You will pay yourself (and partners if applicable), first, for personal expenses out of the money you set aside in the previous step..
4. Guesstimate your business budget. This is hard to do at first and you will need to revise as you move forward.  Just do as best as you can to identify all potential costs. Account for often overlooked expenses like membership dues, legal counseling, employee taxes, insurance and the like. Your burn rate through your pay combined with your business budget will help you…
5. Define your fail point. If you were to put $100k aside, need to pay yourself $2k per month, and the business needs $3k per month, you now know the business can survive for 20 months without bringing in a single dime and you can cover your personal expenses. See how that eliminates a lot of guessing, angst and risk? Bring in enough business for at least $5k monthly net profit before 20 months expires, and you are breaking even! Move beyond that and you can evaluate growing the team, adding new products, and all the other fun stuff coming in the later steps.
6. Decide to bootstrap or solicit for funding. Bootstrapping is by far the better approach. Virtually every funding source we have ever worked with, including venture capitalists, have said the same. Maintain control and equity as much as you can. But, do not be foolish about it either. Some businesses are just too much to effectively launch or maintain with your own funds and revenue. Also, your equity is not worth a thing to cling to if your business is not growing. A hybrid approach is even possible…just plan ahead how far bootstrapping will support the endeavor and the triggers for seeking outside funding. You want to avoid emotional decision making by deciding in advance.
7. Do steps 5-8 in David’s article. Now you get to work building your product, going to market and tweaking. Notice I had more planning steps in my list, but I did not say create a business plan. I do not believe such a comprehensive plan is worth much. If you need to get outside funding early in launch, then by all means as any investor will want to know the details of what your foresee. Otherwise, don’t fixate on planning beyond the essentials. David’s team at UpStart Bootcamp can help with the proper planning, especially if you are going to bootstrap your business.
8. Focus on the business you want and need. When just getting started, it’s easy to say yes to everything and everyone. Be very discerning as to the benefit every opportunity, vendor, partner, prospect, marketing resource, etc. may offer and the hard and soft costs of achieving that benefit. Simply, do not be desperate for business nor to please a prospect or client. Define what problem you are NOT solving, what business you do NOT want. Whether you intend to offer a software product or not, I recommend reading Rework by the folks at 37 Signals for some additional insight on this…invaluable…really.
9. Master cash flow…it’s your life blood. This is a really bad lesson to learn the hard way. Please do not touch the hot stove even though I said not to. Your cash flow is more vital than any other financial statement. Your profits don’t mean s*** if you do not master your available cash. The two do not necessarily equate. Note that I said “master” not “monitor.” Cash flow must be manhandled more than anything else. Wrestle it to the ground like a bullfighter. Make it a daily priority until you are far from needing to worry about it anymore.
10. Finally, back to David…Do steps 9-10 as he instructs. If you have done the above…let’s see my 7 steps and David’s 7…so 14 steps, you should be good to go for my last which equates to David’s final two and brings us to 17. You are ready to grow and accelerate your expansion of customers, staff, space, hardware, and publicity. Congratulations!
11. UPDATE…a post-launch 18th step to add thanks to another great 10-step article…this one by Benjamin Lang (@entrepreneurpro), founder of EpicLaunch…Master building your brand online. Put another way by the folks at HubSpot, excel at inbound marketing. There are so many resources available for inexpensive, yet effective online brand awareness and relationship building with prospects. Benjamin highlights key opportunities in “10 Ways for Entrepreneurs to Build Brands Online.”