Mindfolder blog

I didn't get the loan (and another one after that)

Sun, 07 Oct 2012 11:35:00 EDT

In the last post I discussed efforts to get a $50,000 loan to build my dream product, Mindfolder.

Earlier this summer I received an answer: that the loan was turned down. If you are one of my 'early adopters' then I already filled you in on that.

Well, to put it simply: that particular loan program was actually more contest than a real loan application. It's called the Spin Master Innovation Fund; a program available to any entrepreneurs aged 18 - 39 here in Canada.

The program runs once per year and awards $50k on startup-friendly terms: no loan repayments due until year 2, with the principal paid down over the next 4 years at a low rate of interest.

The kicker is that there are only 10 of these startup loans awarded. And since it's a national program there could be several hundreds - perhaps a thousand+ applications to the program. As much as it would have been cool, the odds were low enough that I didn't get my hopes up.

But here was the thing: if you were not accepted to the "Spin Master Fund" you could simply convert your application to a different, very similar program that runs year round. This particular one is called the CYBF Startup Program and gets you financing for up to $45,000 with the exact same terms as the Spin Master Fund. So it was a no-brainer to move ahead that application as well.

And honestly, any tech startup - especially those in Canada - should be considering this type of loan before raising angel investment or pursuing venture capital. Why rush to give up ownership in your company when you can get a low interest loan with a 1 year runway?

Indeed, this has been my financing strategy since day one. First pursue debt on favorable terms, then if necessary: other types of non-equity fundraising efforts, and finally - private equity investors - but only as an absolute last resort. And by bootstrapping product dev & building relationships with your market throughout the entire process - there might just have a sustainable business by the end of it. Regardless of whether financing efforts were successful or not.

Needless to say, I converted my application for this second loan. And while the program offered up to $45,000 - this time I would be applying for just $36,000. Based on the recommendation of the representative assigned to help me in submitting the application; 'the mentor'. She had indicated to me that with my credit rating a $36k loan was more likely to be approved. A little less than what I had originally planned for - but still a serious amount of cash to work with for building Mindfolder v1.

This time around, I would also update my business plan - a component of the application - with a few tweaks and some of the awesome data gathered from the hugely successful survey I ran in the last post. The mentor assigned to my account was honestly blown away by Mindfolders' early traction - which included 21,000 visitors on day 1 of the blog, over 300 engaged survey respondents, and concept screenshots of the product itself.

Anyway - things were sounding really good and the mentor was happy to move this thing forward. She said there was just one more step and then the $36k check could be wrote sometime in October. I had a lot of confidence that everything was a go. She commended me for the work I did improving the application and handed it on to the next stage.

The next day, one of her colleagues called me to get some more information. It was my social insurance number they wanted. Apparently, the original credit check they did on me - the one done as part of the Spin Master application - had expired and they needed to run another one…

Then later that day, I got a call back from my mentor. "Nice to hear from you," I said. "Well, I don't know if it is nice to hear from me today Derrick - what happened to your credit score?"

Sure enough, my credit had since fallen below their lending threshold and my application would not be able to move forward. By a margin of 34 credit points.

She suggested I fix the issues on my credit report, subscribe to monitor my score and re-apply when it's back up.

So that's where I'm at with 'financing my dream'. Annoyed but not flustered, I am still focusing on Mindfolder every day (albeit its a small fraction of my day given I need to live & pay bills). And will perhaps re-apply for a loan in the future. Though credit scores are notoriously slow in updating - so I'm not counting on that in the short-term.

Rest assured, throughout all of this 'hoop jumping' - there has been significant progress on an actual working prototype. My talented friend Steven from California has been leading development - and has some really cool things working already. An interactive UI, a folder tree hierarchy, and a number of other things we want to introduce in the first version.

So I'm happy to conclude these financing related ramblings and get on with sharing product progress in the posts to follow.

If you'd like to stay in the loop, follow @Mindfolder on Twitter or subscribe to my newsletter (as part of being a subscriber, you'll also receive an invite when the beta is ready).

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If you were given $50,000 to spend -- what kind of note taking software would you build?

Mon, 25 Jun 2012 06:48:00 EDT

What's the best way to do market research? Ask the market.
So that is exactly what I'm about to do. First though, a little background...

For years I have been envisioning my dream product. It's called Mindfolder.
And it's for taking notes. But more than just for notes, its purpose is for saving ideas. And most importantly - for growing them.

Just recently I applied for a $50,000 business loan.
To help fund my vision; the development of Mindfolder v1.0

Still waiting on a decision - a business mentor within the program suggested I do market research to "figure out who is your customer and what they want". Now, with years worth of feature planning and a solid product design already - external feedback is a rather ‘foreign concept' at this point. Though honestly, I have not (and still do not) necessarily care about customer feedback in these early stages. And if you‘re building your dream product - neither should you. What's most important is making something that functions. Making at least some aspect of your vision a reality.

As Steve Jobs said, "It isn't the consumers' job to know what they want."

Seems to me that innovation is created by delivering something new. So I tend to agree with Jobs and advocate a ready-fire-aim approach.

So, about that feedback...

Needless to say - even after downplaying its importance - I'm still going to ask you for some input. I'd like to oblige my business mentor. And heck, I am warming up to this feedback thing - cause maybe you've got some cool ideas. If you do, I'd love to hear about them.

In return - I will provide you a small gift.

Here goes: if you will fill out the form below - I will reward you an ‘early adopter' discount off the initial price of my upcoming product, Mindfolder v1.0. Of precisely 50% the full retail price. Regardless of whether or not I land that $50k loan. You have my word.

A bonus that will make this worthwhile TODAY

I admit, a discount on a ‘yet-to-be released software product' - without as much as a screenshot or product page - is not exactly the most tantalizing offer.

So allow me to give you something better. Something you can use today.

After filling out the following form, you will immediately receive the
'Idea Book - 100 Inspiring Quotes & Tips for Making Vision Reality'.
It's a hand-picked compilation I put together featuring powerful words from some of my favorite people. The book is sort of a rare gem - something I created for personal use. But I have decided to share with you today - exclusively - as a token for filling out this form.

Take advantage! The gifts - the Mindfolder v1 discount code and free eBook - will be sent to you upon completion of the form.

Fill out the form below to get your gifts. Oh, and be sure to follow @Mindfolder on Twitter if you'd like to stay updated on the project.

~The Mindfolder 'Early Adopter' Feedback Form~

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Indecision is inefficient

Fri, 25 May 2012 11:01:00 EDT

With passion about an idea. And confidence in our ability to create it. It seems like nothing can stop us. Until...

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...after making the climb. We look down.
And like a kid on a diving board - turn back.

5 years ago I was struck with a tremendous idea for a software product. A vision became clear. And I knew I had to build it.

Slowly I would chip away at this; working towards making the vision a reality.

Yet progress became stunted. There was a flaw. At the time I did not know this. Had I known, a correction could have been made - and the product may have very well been available for you today.

The critical flaw was this: indecision.

We often reach a point in our lives - perhaps without even knowing it - in whereby we have an opportunity to proceed to do something great. But that something which requires us to dive in.

And by dive, I mean specifically: to forget about every other obstacle, opportunity; distraction. To not look back. And to execute with everything you got.

Sure, there may be other opportunities worthy of exploration; other 'low hanging fruit' so to speak. But without a real sense of urgency backing your idea; without an unwavering commitment to proceeding with that idea exclusively - you will too easily become distracted. Your 'confidence tank' will soon run dry. And that initial excitement; your key momentum driver - will fade away. Before you know it, you'll be wishing instead of doing. Unconsciously turning back.

My wish for you is that you do not make the same mistake I did. Don't delay your career by half a decade. Because trust me: climbing back up the ladder again is even more difficult than you can imagine...

Indecision becomes a vulnerability that welcomes an on-pouring of obstacles that will pile in the way. Hindering your freedom to even choose a path, let alone to make a dive. Suddenly the greatest challenge becomes not how to make an idea happen - but how to return to where you once were; with options and in a position to proceed.

Years later, after painstakingly reaching back up - I am getting closer. I can feel the steps beneath me now. And this time - when I get to the top: I'll be ready to make the dive of my life.

Whatever your journey - proceed with certainty. And when you get to the top.
Dive gracefully.�

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�

30 minutes a day

Thu, 24 May 2012 12:20:00 EDT

Do you brush your teeth every day?

Do you work on your dream project every day?

�.. no? Sometimes?

Your teeth will begin to decay if you don't brush. And so will your idea.

Specifically: ideas need focusing.

The simple act of reserving a tiny part of your day. Perhaps just 30 minutes. Of pure, uninterrupted focus. On the idea you want to make become reality. Will ensure at least some extent of progress. I guarantee you.

Just take a moment to analyze this theory. The equation is not rocket science.

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�The process is perfectly logical. And simpler than what most assume. So why then do we struggle to make our ideas reality? I postulate that the challenge is not the manifestation part, but rather - the discipline.

When faced with a mountainous journey - many of us turn back. Not because we don't understand what to do - that's the easy part. Go up. But the mountain intimidates us. We let our imagination scare us with the slippery slopes and bears we might encounter. So we're more comfortable where we are. At the base, looking up.

It doesn't matter what's up there. The specifics of the journey will get taken care of as you traverse. What's important is that you just go up.

Specifically: just focus.

I've come up with a basic strategy to address this challenge. Of discipline. To ensure focus - which subsequently - ensures manifestation.

Try it. Here's how. Establish a list like the following:

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�This is tomorrow's task list. You will give yourself a check-mark upon completion of each item.

Replace �the idea� with whatever it is you want to make happen. No matter how ambitious or impossible.

Everything else in your day - is not important. You just have to do these two things. Nothing more, nothing less.

I'm not suggesting you take the rest of the day off. Do what you normally would do tomorrow. But with a disciplined understanding that the day has not been a success until & unless these two items are achieved.

[spoiler alert]

If you follow my instructions correctly. I believe you will have an epiphany. About how easy it is to manifest progress. On any idea conceivable. The equation will have been validated and you will have witnessed an extent of measurable progress towards making your idea real.

And then you'll perform this same exercise the next day. And the day after that. And eventually, after seemingly small incremental progress - you will have achieved a great stride.

Or at the very least - you will have maintained great teeth.

p.s. - I have decided to focus on my dream project, Mindfolder, for at least 30 minutes every day. Until this thing becomes reality.

p.p.s. - 30 minutes a day is a baseline. Once you achieve that with consistency you can begin experimenting with larger blocks of time. To effectively transition from casual effort, to part-time endeavor, to full-time journey.
No mountain can stop you.

Update: thanks to leoedin for correcting the equation [original]

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