One of the biggest differences I've encountered since returning back to Scotland, is the prevalence of "stealthy" operating.  Yet in Boston, Silicon Valley and indeed Cambridge, UK., everything is much more out in the open as entrepreneurs discuss ideas, reach out for help and scramble for resources to get their ideas off the ground.

Every time I hear about a new startup that is in so called "stealth mode", I wonder what problem they are hiding from whom. Of course they pretend that they are trying to avoid alerting competitors prior to launch, but too often it becomes an excuse to move slowly in a world that’s all about getting to market fast.  Openness is part of the business culture of entrepreneurs. People talk to people, and even competitors freely exchange news on trends and discoveries. So taking some pointers from Martin Zwillig (@startuppro) over at Start-up Professionals, here are some of the things which could actually help startup efforts, rather than hurt them:

1. Get concept feedback early. No matter how good you are, your initial idea is likely to be at least partially wrong. The sooner you get that feedback from people who count, the better your chance of recovery, and the less money you have wasted. Don’t be so arrogant to assume you won’t need course corrections.


2. Find your real competitors. The sooner you disavow yourself of the notion that “we have no competitors,” the more likely you are to survive. “No competitors” may mean no market (give up now), or customers are happy with alternatives (take the airplane rather than your new fast train). Face reality early, and you can deal with it.


3. Deliver minimum product and iterate. Stealth mode can give you a false sense of security that you can take additional time to get it right the first time. Time is your biggest enemy, and customer feedback is your biggest ally. A startup that has been incorporated for two years or more without shipping is already seen as a bad investment.


4. Prime the investor world. Don’t talk directly to potential investors until you have the business plan and other basics complete. But start networking with advisors, industry pundits, and domain experts early. Your direction will get back to potential investors, and create a sense of heightened expectations that can help you get in the door when ready.

To enforce stealthy behavior, startups often require everyone, even potential employees to sign nondisclosure agreements, and strictly control who may speak with the media. This is a turnoff to everyone, and real investors never sign nondisclosures. It’s all an expensive distraction that doesn’t work.

Overall, I recognize that there are some startups, like biotech and semiconductors, with long highly technical development cycles and huge competitors, where early stealth makes sense. But with many others, incubation time must be short, and secrecy can be the kiss of death. For too many startups, stealth is much ado about nothing.

So my early-stage motto is "stealth mode is for fighter-jets - not-start-ups."  But what do you think..?