Recent Business News...


  • What began as a social gathering for like-minded entrepreneurs and VCs has evolved into one of the Valley's most dynamic accelerators. Meet the man with the connections, Saeed Amidi.

    When international entrepreneurs want a shot at Silicon Valley stardom, they call on Saeed Amidi.

    The angel investor is the son of Amir Amidi, who owned the Medallion Rug Gallery where fellow VC Pejman Nozad famously built up his contacts. And his ties to the tech hub span 35 years. As co-founder of the investment firm Amidzad Investments, Amidi has the expertise and deep pockets to show for it.

    Since 2006, Amidi's passion project has been Plug and Play, an international network that's accelerated 1,200 start-ups and collectively raised more than $1 billion in venture capital. Last year, the organization made 62 investments, while helping 150 start-ups from Silicon Valley and another 100 from abroad find resources and make connections.

    Helping foreigners get their foot in the door is perhaps what Amidi, an Iranian exile, does best. During their time at Plug and Play, which Amidi describes as a sort of "start-up university," ambitious entepreneurs learn the ropes of launching a business from those who know it best: veteran VCs and serial entrepreneurs. The most promising start-ups get to pitch during Plug and Play's Expo Event, which wrapped up last weekend.

    Plug and Play vies with the likes of Y Combinator and TechStars for talent, but it boasts a fair share of big names on its roster: Lending Club, which has funded $1.6 billion in consumer loans, and Zong, a mobile payment start-up founded by PayPal President David Marcus that sold to eBay for $240 million. What's more, Plug and Play has become synomous with "international talent," not a small feat in hyper-competitive tech land.

    I spoke with Amidi by phone about what makes a great pitch, why he loves nurturing start-ups, and why the Silicon Valley bubble isn't going to burst in his lifetime.

    How did Plug and Play get started?
    We started by investing in companies that were leasing space from us, like PayPal and Andy Rubin's Danger. For 12 years, we used to invest for fun and then Plug and Play got started about seven years ago, in 2006.

    Did you always have an international focus?
    The main objective for me is finding a great investment. We found the companies that are in Palo Alto are already connected. They didn't need our help as much as the companies that may be just as good but are not in Silicon Valley. We love to participate in the seed round, but more importantly, we like to be part of their success. It increases the value of our investment.

    What compels you to invest in a start-up?
    It's the passion, the intelligence, and the team. If I like the team and feel they are brilliant and passionate, I don't even care about the idea. The second thing is what idea they are going after. Is it something that can scale? Something that is missing in the market? This is much easier to do with a serial entrepreneur, but a lot of the entrepreneurs we work with are first-timers, so you have to check out what they are focusing on. Can it be a big business?

    We see what they have done in the last three, six, or twelve years. If they haven't put in a lot of sweat equity and don't have a product or prototype, we tell them to come back later when they do.

    Tell me about the environment at Plug and Play.
    We host 300 companies in one building. If a start-up is local, they stay with us for two years. If not, they stay for three months. They go through something called start-up university, where we show 20 case studies on average from 20 entrepreneurs who have gone on the same journey before. It's done professionally and casually. The entrepreneurs who stay three months meet about 20 other entrepreneurs who have raised money, exited, failed, and can explain why they've failed. Most of what they learn, they learn from other entrepreneurs.

    Where do they stay if they're international?
    We got a couple apartments years ago, but it was too much of a headache, so now I tell them, "You're the entrepreneur, figure it out. Rent a room from AirBnB or Craigslist."

    What's your typical day like?
    My goal every day is to meet with four startups and then I usually like to have a meeting with one or two investors. That translates to one investment a week. Each company we're looking at is in a different stage.

    Why is Silicon Valley so valuable to entrepreneurs?
    Some people were worried during the downturn that Silicon Valley might lose its charm, but I really think that if you want to be serious about being in movies, the best place to be is Hollywood, and I feel the same way about tech innovation start-ups. You have to be connected to Silicon Valley.

    I have an accelerator in Valencia and another in Berlin, and you can build a great company just about anywhere. But I urge entrepreneurs to be connected to Silicon Valley, because I think the culture that is here, the investors that are here, as well as all of the success and failure stories that are here is like a crash course in entrepreneurship.

    Is Silicon Valley on the verge of another bubble?
    No, because I see a lot of companies with real business models. B2B is coming back really strong, and if you take most of the world's corporations like Walmart, its labs are here. Even Amazon has a big technical center here. Groupon has a very big office here in Palo Alto too. No matter what Silicon Valley becomes, the heart of innovation of the start-up world--at least in my lifetime--will be here.



  • Marissa Mayer is on the verge of completing 14 Yahoo acquisitions in just six months. Will she reinvent Yahoo?

    With Marissa Mayer at the helm, Yahoo is on an acquisition tear.

    One month after the company's $1.1 billion acquisition of Tumblr, AllThingsD reported yesterday that Yahoo is in talks to purchase Xobni, an address book app, for $30 million to $40 million. And today, news surfaced that the company is also about to acquire Qwiki, a popular video sharing app, for close to $50 million. If the two deals go through, Yahoo will have publicly acquired 14 companies in 2013; by comparison, last year it bought only two companies, and, in 2011, three.

    No Surprise, But What's the Strategy?

    When Marissa Mayer took over as Yahoo's CEO in late 2012, one of her first stated missions was to sniff out potential acquisitions in order to turn Yahoo back into a growth company. And with $1.2 billion in cash on hand--even after the Tumblr acquisition--she has room for several more big purchases before 2014.

    "We're looking for smaller-scale acquisitions that align well overall with our businesses," Mayer said on a shareholder conference call in October 2012. Ken Goldman, the company's CFO, chimed in saying, "Our primary objective as a new management team is to leverage our assets, competitive strengths, and available resources to transition this company from financial stability to a growth business."

    What's puzzling to me, though, is the strategy behind these acquisitions on a whole.

    In just six months, Mayer the 14 deals have been spread over a wide variety of areas. You have to wonder if Yahoo is just shooting from the hip at this point, hoping that at least one brings in new revenue. Even though Yahoo is beating Wall Street profit estimates, its core advertising business is suffering, and it's clear that Mayer is looking for some way to make money.

    That said, two loose themes emerge from Mayer's deal-making moves, but I'm skeptical about both.

    Building Out Mobile

    Yahoo has an impressive 300 million mobile users, but that's about half Facebook's mobile user base. Mayer has been vocal about aggressively trying to capture a larger mobile audience. Last month, at the Wired Business Conference, Mayer said that the biggest goal right now is to have "Yahoo persistent on every smartphone, tablet, and PC for every Internet user."

    Of the acquisitions Yahoo has made so far this year, several were focused on expanding mobile capabilities, including Summly, a news app; Loki Studios, a gaming start-up; aLike, a recommendation app; and Ghostbird software, a photo app.

    Anecdotally, it seems Mayer is ready to attract the best mobile talent, too. Reports The Post:

    "Employees chosen to work on the all-important mobile mission are given the coolest and latest laptops, the best, most recently redecorated offices and prompt access to Mayer's office, according to interviews with several Yahoo insiders."

    But mobile expansion will be tough for Yahoo, even with a slew of upstarts and new thinkers in the space. Unlike its competitors like Facebook and Google, Yahoo never made the leap into hardware--which will make Mayer's hope to be on every device all the more difficult.

    Making Yahoo More Social

    Clearly Mayer's other big bet is to revitalize Yahoo by making it more social. Some were skeptical about Mayer's $1.1 billion acquisition of Tumblr--which only had about $13 million of revenue in 2012--but it's apparent Mayer sees the company as a vehicle to tap into one of the most active social platforms on the Web, along with a somewhat different advertising model.

    As Adam Rifkin writes:

    "In some ways, Tumblr is actually Facebook 2.0! As Facebook has become a real-life social network infested with parents, co-workers, ex-friends, and people you barely know, Tumblr has become the place where young people express themselves and their actual interests with their actual friends."

    But Yahoo's foray into social will be fraught with challenges. Tumblr's core demographic is the 18-to-24-year-old bracket, a notoriously fickle cohort. Yahoo's other "social" purchases--like its January 2013 acquisition of Snip.it, which lets users collect articles--don't have much to do with Tumblr.

    It's too early to see if Mayer's acquisition strategy will pay off, and Mayer knows it'll take time to see if the deals deliver material results to the core business. As she said on an April 2013 shareholder call:

    "Overall, I have been very pleased with how well our talent acquisitions have integrated into the company. You'll see many of the contributions come to life in our product experiences over the next few months. So stay tuned."



  • The one thing your sales team needs to improve? Explaining, says Lee LeFever, founder of Common Craft. Here's how.

    People rarely buy products they don't understand, so it's a salesman's job to explain them. But what if your explanation is so organic it's pointless?

    Perhaps you suffer from the curse of knowledge--knowing so much you explain things in ways no one grasps.

    Revisiting the basics of explaining can help, writes Lee LeFever, founder of Common Craft, in The Harvard Business Review. Here's an overview:

    Focus on why.

    Make sure your team knows exactly what your product or service does for customers. "By answering the "why" early on , you create a foundation for understanding on which to build more complex ideas," says LeFever.

    Simple trumps clever.

    "Fancy vocabulary and extensive background information might impress customers--but, more likely, will just confuse them," he says. Instead of trying to impress people with how smart you are, make them feel smart by building their knowledge.

    Explain the forrest, not just the trees.

    Customers must understand why your product exists and how it can help them. Make sure they get the big picture before going into detail.

    The antidote to confusion is less information.

    It's tempting to bombard your customers with information, but that won't help someone who's confused. "Don't add detail; come back to one of two big ideas you know they'll understand" LeFever advises.

    Tell a story.

    "If you think stories are for campfires, not your state-of-the-art product, then you're forgetting that your audience is human," LeFever says. "Stories provide a way to see how a product works in the real world, with real people."

    Don't be condescending.

    "No one likes to be talked down to, and if you approach explanation with the wrong attitude, it can be destructive," LeFever explains. Assume your customers are as smart as you, just not as informed.



  • The NSA won't stop snooping on you, but you can throw them off your trail. Here are some tools to help you go private.

    Revelations of NSA surveillance have shaken the nation, but while many of us would love nothing more than to toss our phones out the window and avoid well-trafficked search engines like Yahoo and Google altogether, the government seems intent snopping on Americans whether they like it or not.

    Sometimes that's not a bad thing--but often it is. As blogger Sarah Downey writes, one of three things can happen when your data falls into a corporation's lap: Your privacy may be breached like the customers of LivingSocial; the company might use it in a way that makes you uncomfortable and/or violates your privacy; or the government may use it, courtesy of the NSA and PRISM.

    To help you sleep better at night, here's a roundup of tools that can help you go private.

    Mobile

    TextSecure

    TextSecure is an open source app that encrypts text so that no one can read it. Just keep in mind both the sender and respondent must use it in order for it to work. Also, while the content will be secure, your messages' destination will not. As a bonus, the app can encrypt old messages.

    RedPhone

    Designed by the makers of TextSecure, WhisperSystems, RedPhone features end-to-end encryption for calls, meaning no one can decipher your chat from beginning to end. RedPhone also forgoes assigning private numbers, so you can stick with the one you know and love. Calls can be placed via Wi-Fi or your mobile data plan.

    Onion Browser

    Using Tor, a free software and open network that blocks out surveillance, Onion encrypts web traffic, so no one can pinpoint your IP address. The browser also hides what platform you're on, be it tablet, cell phone, or desktop.

    Orbot

    Another Tor app, Orbot encrypts traffic by bouncing signals, much like a sped-up game of Pong. Created by The Guardian Project, Orbot proxies traffic so what you're clicking stays under wraps.

    Miscellaneous

    SilentCircle

    SilentCircle keeps companies from accessing unencrypted calls, messages, and emails. Though it's open-source, its code is audited to prevent back doors or loopholes. You can use it on Android or iOS platforms.

    Seecrypt

    This South African start-up will protect your calls and SMS messages on Android or iOS. Users are assigned a private number to allow for end-to-end encryption.

    Wickr

    Similar to Snapchat, this one-year-old app offers "military-grade encryption" of texts, pictures, and audio messages using a key that's unknown to the company. Wickr promises not to collect personal information, call logs, or location data. Its messages also self-destruct.

    Desktop

    Browsing

    DuckDuckGo

    Unlike Google, DuckDuckGo doesn't store IP addresses. The partially open-source search engine is now available on several desktop and mobile platforms, including iOS.

    Tor

    Ever watch a CSI episode and hear the tech guy exclaim that the suspect's signal is moving? That movement is Tor. The network bounces traffic across computers so sites can't determine their origin.

    Onion Pi

    For those not on Tor, there's Onion Pi. Combining Raspberry Pi's microcomputer, USB Wi-Fi adapter, and an ethernet Cable, Onion Pi creates a small, potable private access point that directs traffic through Tor's larger network.

    Instant Messenger

    OTR

    Like many others on this list, OTR offers end-to-end encryption. Since it's an extension to regular networks, users will need to download supporting software such as Adium for iOS and Pidgin for Windows.

    Cryptocat

    This open-source software will keep the conversation top secret.

    The Cloud

    Cloudfogger

    This open-source app encrypts files before they go to the Cloud and is available on Android and iOS.

    InTheClear

    When all else fails, download InTheClear, a suite of applications that wipes data clean with just one swipe.



  • Facebook is just one Internet giant that has released its NSA stats to reassure users. Here's a round-up of the others, and their numbers.

    Consumers haven't been able to look at Silicon Valley the same way ever since news broke of a long-running government program called PRISM. Of course, the nine Internet companies implicated in the leak aren't the only ones handing over customer data. Apparently thousands of companies do this, writes Inc. reporter Eric Markowitz.

    However as news continues trickling out, Internet giants feel pressed to step forward and disclose the total number of legal orders they received for user data, including ones from the National Security Agency and from state, local, and federal police performing criminal investigations.

    Here's what they've told us so far:

    Yahoo

    Yahoo is the latest company to disclose the number of government requests for data it has received over the past 18 months, reports TechCrunch. In a statement signed by CEO Marissa Mayer, the company said it received between 12,000 and 13,000 requests between December 1, 2012 and May 31, 2013.

    “We’ve worked hard over the years to earn our users’ trust and we fight hard to preserve it,” Mayer and general counsel Ron Bell said. "Like all companies, Yahoo! cannot lawfully break out FISA request numbers at this time because those numbers are classified; however, we strongly urge the federal government to reconsider its stance on this issue."

    Apple

    Apple recently spoke up about PRISM, per its Commitment to Customer Privacy:

    "From December 1, 2012 to May 31, 2013, Apple received between 4,000 and 5,000 requests from U.S. law enforcement for customer data. Between 9,000 and 10,000 accounts or devices were specified in those requests, which came from federal, state and local authorities and included both criminal investigations and national security matters. The most common form of request comes from police investigating robberies and other crimes, searching for missing children, trying to locate a patient with Alzheimer’s disease, or hoping to prevent a suicide."

    The company also made it clear it wasn't mining data for fun:

    "Apple has always placed a priority on protecting our customers’ personal data, and we don’t collect or maintain a mountain of personal details about our customers in the first place. There are certain categories of information which we do not provide to law enforcement or any other group because we choose not to retain it."

    Microsoft

    Microsoft came forward Friday after receiving the go-ahead from the government. According to John Frank, vice president and deputy general counsel, the search company received between 6,000 and 7,000 requests from U.S. law enforcement affecting between 31,000 and 32,000 accounts in the last half of 2012. In a blog post, he writes:

    "We appreciate the effort by U.S. government today to allow us to report more information. We understand they have to weigh carefully the impacts on national security of allowing more disclosures. With more time, we hope they will take further steps. Transparency alone may not be enough to restore public confidence, but it’s a great place to start."

    Google

    In a statement provided to CNET, Google said it wants to be even more transparent. As it is, Google releases statistics about government surveillance in its transparency report, including information on NSA letters sent by the FBI.

    Last Wednesday, Google revealed it uses secure FTP servers and in-person delivery when complying with NSA requests. Over the course of 2012, the search giant received between zero and 999 National Security Letters--foreign intelligence-related requests from the FBI involving U.S. citizens separate from its investigations into criminal, civil, or administrative matters.

    On June 11, Google wrote to the Department of Justice and the FBI asking for details on national security requests and their scope.

    "When required to comply with these requests, we deliver that information to the U.S. government-- generally through secure FTP transfers and in person," spokesperson Chris Gaither told USA Today. "The U.S. government does not have the ability to pull that data directly from our servers or network."

    Facebook

    Facebook also announced on Friday it had been given permission to disclose its number of data requests. Facebook received between 9,000 and 10,000 requests pertaining to 18,000 and 19,000 accounts.

    “The government will only authorize us to communicate about these numbers in aggregate, and as a range,” Facebook said. “This is progress, but we’re continuing to push for even more transparency, so that our users around the world can understand how infrequently we are asked to provide user data on national security grounds.”

    Twitter

    Twitter was one of several companies approached by the NSA to participate in a "dropbox" system, whereby legally requested data could be copied from their own server to one owned by the NSA, The Guardian reports. However, the start-up flatly denied the request and has since joined the rally for support to publish more details about the number of U.S. law enforcement requests.

    Alex Macgillivray, the company's chief lawyer, tweeted:



  • Jazz musicians are agile and dynamic. They are gracious--but not shy. Here's what you can take from the stage to the board room.

    Some people would introduce me as a venture capitalist, since I run a venture firm in Detroit. Others might reference me as an entrepreneur, given that I've founded four technology companies. I guess these people wouldn't be wrong in their verbiage, but it's not an introduction I prefer.

    Instead, I'd rather be deemed a jazz musician. After decades of training, countless hours of practice, and a whole host of gigs nationwide, jazz is my passion--and its something that has benefitted all other aspects of my life tremendously. While on the surface it would seem that jazz musicianship is the polar opposite of running a business, the two practices are linked in numerous ways.

    Just as you'd learn a great deal from a trusted advisor, so too can non-traditional sources help you to expand your knowledge base. Jazz musicians are agile and dynamic, carrying their group's song and themes through the diversified landscape to the end. Quite frankly, I don't know anyone better to provide leadership advice than a professional jazz player for this very reason. Here are some powerful takeaways I've picked up along the way from incredible musician leaders--let these lessons shine at your business, and your cube will get a lot swankier.

    1. Playing it safe gets you tossed off the stage. Some executives would say that in today's turbulent economy, takings risks isn't wise. If you don't take risks you'll never excel. Playing it safe all the time becomes the most dangerous move of all.

    2. There are no do-overs in live performances. For every hour in a "performance" setting, you should spend five hours practicing. Athletes do this, musicians do this--muscle memory is no different in the board room, in front of a new client, or with your team. So why aren't you doing this?

    3. Listening to those around you is three times more important than what you play yourself. If you're the one talking all the time, you're not learning anything. Listen, absorb what you hear, and use the information to make a conscious choice about whatever you're facing.

    4. There's a time to stand out as a soloist and a time to support others and make them shine. You rocked a project--nicely done. Praise is well-deserved. However, as a leader, it's more likely the case that your team members rocked a project, together. Susie was on top of her game with the slide deck? Tell her--and tell the client. Johnny couldn't have articulated the challenge to the press any more astutely? Refer back to his commentary as a stellar example. When you can share the wealth, everyone wins.

    5. Expect surprises and adversity, since jazz (and life) is about how you respond and adapt. If running a business was always smooth sailing, everyone would do it. That being said, the old adage explains that "a smooth sea never made a skilled sailor." Anticipate hurdles and maximize your team's effort to jump over them.

    6. Know your audience. If you're playing for a group that's looking forward to something slow and calming and you get on stage and play a wild and crazy, upbeat riff, nobody will dig it--even if it's a well-crafted piece. Your customers are the same. If you're not working to provide them with something they want and need, you're doomed to fail.

    7. It's always better leaving people wanting more, rather than less. Of course as you live and breathe your business, you have a visceral urge to share every piece of minutia with anyone who asks. Don't. Instead of pouring it all on at once, give people a teaser, so they crave the next bit you explain. In similar fashion, don't try and launch 15 products at once for a new line; start with one or two to get people begging for more.

    8. The best leaders are those that make others sound good. Big band leaders bring out the best in their troupes--during a sax solo, his job is to make sure the drum line supports the sax player with a quality backdrop to make the riff shine especially bright. Are you putting these pieces together on your team? Where could someone excel that they're being held back? Shatter those boundaries and encourage creativity to soar.

    9. Pattern recognition is easier than raw genius. If you drive the same way to work every day for a year, you're bound to learn about--and avoid--the pothole on Main Street that you pass each time. Jazz is no different; if you've played combinations countless times, it becomes second nature to pair new things together based on previous patterns. So too in business, seasoned executives and professionals have seen so many types of people, deals, projects, and processes, so it becomes much easier for them to avoid these proverbial potholes, rather than having to start from scratch every time.

    10. Shy musicians are starving artists. If you're playing a gig, you get paid when there's butts in seats, so you can't be shy in telling people about the upcoming show. Why haven't you been this bold in your new product launch? Are your employees evangelical about your company's culture? Are your vendors singing your praises?

    11. Keeping it new and fresh is mandatory. Jazz has its roots in real-time, collaborative innovation, just like the act of starting and growing companies. If you're not actively seeking new challenges and ways to expand your horizons, you are automatically falling behind.

    Legendary jazz pianist Dave Brubeck put it best, and his words resonate not only on stage for musicians but also in life for business leaders. As he so eloquently described it, "There's a way of playing safe, there's a way of using tricks and there's the way I like to play, which is dangerously, where you're going to take a chance on making mistakes in order to create something you haven't created before."



  • Start-up VCs get all of the attention, but Fortune 500 companies might make better investors for your start-up.

    Venture capitalist Fred Wilson is not a fan of corporate capital; he said as much during one of Pandodaily's fireside chats in New York last week.

    Wilson was served a rebuttal on Tuesday, however, at Bloomberg's Next Big Thing Summit in Half Moon Bay, California. Panelists from four corporate investment firms sat down with Bloomberg reporter Douglas MacMillan to set the record straight. Corporate capital provides a few things traditional VCs can't offer, they said.

    Here are their five reasons to consider--or reconsider--a corporate investor.

    They're already stakeholders.

    Corporate investors have a built-in motive for supporting innovation within their sector: It strengthens their own business ecosystem, according to Citi Ventures CIO Deborah Hopkins. This may seem contradictory to the notion of free market competition, but Hopkins explains that industry innovation actually helps existing companies more than it hurts them.

    The payment processor Square, for example, could be deemed "disruptive to our own business" says Hopkins--yet Citi has invested heavily in the start-up. Why?

    "We're not focused as much on financial return as on strategic return," Hopkins says. "What we get back [from Square] is first-class learning from an exciting entrepreneur."

    They have awesome resources.

    According to Hopkins, corporations have one major asset that traditional VCs lack: a customer base.

    "That's the golden ticket," she says. "Unlike a VC, we can help [start-ups] scale."

    An existing network of customers can provide young companies with the low-risk setting they need to test and develop a winning product, says Comcast Ventures managing director Michael Yang--which is good for both the parent investor and start-up. According to Yang, corporate investors see start-up partners as an opportunity to innovate (read: make riskier decisions) while offering those start-ups the benefit of a safety net for product development.

    They have friends on both sides of the table.

    Corporate VCs are well connected; they rub elbows with both traditional VCs and other key players in their sector. So, they can connect you with their customers or colleagues, and additional funding, according to SanDisk Chief Strategy Officer Sumit Sadana.

    In addition to making the most of their corporate network, says Sadana, SanDisk tries to keep its portfolio companies' best interests at heart. "We could do a right of first refusal," he says, "But we try not to do that. We bring them to customers that we have good and deep relationships with."

    "We don't believe in pushing exclusivity at all," echoes Hopkins. "We see it as counter to being the champion of these companies. [Instead] we built partnerships with other VCs who bring us companies... because of our way of working alongside them."

    They're not focused on your IPO.

    "For a VC, going public is the end. For corporate [investors], it is a means to an end," says Heidi Mason, a managing partner of the Bell Mason Group. She adds that the "end goal" of most Bell Mason investments is a portfolio company's growth.

    "We have an opportunity to break the [traditional investment] cycle... and completely accelerate the impact [we] have in an emerging ecosystem," she says.


  • Henry Cavill, as Superman

    Superman as an entrepreneur? Not exactly, but you just may walk away from "Man of Steel" with inspiration for your business.

    Over the weekend my wife and I and a friend saw Man of Steel--the latest reboot of the Superman franchise. Note: Spoilers below! If you haven't seen the movie yet, you might want to stop reading. But then again, it's Superman. You probably know the story already.

    Afterward, as we left the theater, my mind wandered to what the movie had to say about entrepreneurship. (It's a sickness. I can't stop thinking like this. Maybe you can relate.) Nobody actually starts a business in Man of Steel, but the movie is as much about leadership, integrity, and gathering teams to achieve a worthy goal as it is about action and explosions. In other words, it has a lot to do with the best principles of entrepreneurship. Here are my top takeaways:

    1. Familiarity (Sometimes) Rules

    Almost everyone who goes to see Man of Steel knows pretty much what's going to happen. No joke, my three-year-old nephew told me the entire Superman origin story a few weeks ago, complete with references to "Kwypton" and "Superman's daddy, Kal-El." (I think he's a bit confused. Jor-El is Kal-El's father, and it's Kal-El who later becomes Superman. But still, not bad for a three-year-old.)

    Despite that familiarity, Man of Steel pulled in $128 million in the U.S. last weekend. Not bad for a cartoon character who made his debut in 1938. Lesson: It can sometimes be better to put a new twist on an old idea, rather than make up something new out of whole cloth.

    2. If Trust Doesn't Quite Trump Everything, It Comes Close

    Kal-El (aka Clark Kent--interestingly the film manages never to refer to him as "Superman") starts out angst-ridden, unsure of where he's from. Just as he figures it out, his Kryptonian father's nemesis, General Zod, shows up. Zod demands that Kal-El surrender in exchange for Zod sparing the Earth--and Kal-El almost gives in.

    What stops him? It's all about trust. First, he realizes that Zod isn't trustworthy. Then, the fact that Kal-El was willing to sacrifice himself for Earth helps the humans learn to trust him. (As Kal-El reminds a still-skeptical general at the end of the film, he grew up in Kansas!) The more loyalty he shows to humans, the more they slowly develop trust in him, in return.

    3. It's Not What You Say; It's What People Hear

    You know the giant "S" on Superman's chest? It's not really an "S." Instead, as explained at least twice in Man of Steel, it's a Kryptonian symbol meaning, "hope." That's nice. But on Earth, as Lois Lane reminds Kal-El, an "S" is an "S" is an "S." 'Nuff said.

    4. Focus, Focus, Focus

    Kal-El has super-hearing and super-vision--and man-oh-man, is he ever distracted as a result. As a kid, this nearly pushes him near the edge. It's only after his mother teaches him to focus on one sound or sight at a time that he can retain sanity and function. When Zod and the other criminal-refugees from Krypton reach Earth, they have the same problem, except that nobody has ever taught them to focus their senses. Result? They're overwhelmed with sights and sounds, and unable (temporarily) to function.

    Sound familiar? Distraction is driving us all crazy and it can be killer in business. Learning to focus is key. (As I wrote this column, this realization almost made me close a few of the dozen tabs I had open on my browser, shut off my phone, and maybe even turn down the sound on the Boston Bruins Stanley Cup Finals game I was watching. Almost.)

    5. Make the Customer Comfortable

    At one point, Kal-El surrenders to a group of humans despite knowing that they plan to turn him over to Zod. When Lois Lane subsequently expresses surprise that he allowed the humans to handcuff him, Kal-El tells her it's because it was important that they feel safe around him. (Even though Superman needs handcuffs like a fish needs a bicycle.)

    Sometimes people (read: customers) insist on things that don't cost you much, but make them feel more comfortable. If you want them to deal with you (or try your product), go along with the gag.

    6. Negotiating is a Super Skill

    There's a lot of action in Man of Steel, but at the same time there's a heck of a lot of negotiating. Jor-El tries to negotiate with the leaders of Krypton before their planet explodes. General Zod tries to negotiate with Jor-El, and then eons later, he tries to negotiate with Kal-El. Kal-El tries to negotiate with Zod, and then the U.S.-led military. Eventually, he and Lois Lane negotiate an interstellar love connection.

    What does it all reinforce? Well, without getting too deep, each time negotiations fail and the scene turns to action, it follows a character who has been pushed all the way to the brink. Nobody ever mentions the phrase, but Man of Steel is filled with some tough negotiators who have clearly identified their best alternatives to a negotiated agreement.

    7. You Can Easily Hide Forever, Just By Wearing Glasses

    This one's tongue-in-cheek of course. Most renditions of the Superman story suggest that Kal-El can blend in with humans simply by donning Elvis Costello specs--and maybe stammering a bit around Lois Lane. Man of Steel takes this idea to extremes. It's kind of cute to see a Superman movie subscribe so blatantly to the "ugly-pretty-girl theory" of Hollywood flicks.

    (Like this post? Check out Bill's weekly email.)



  • The seasoned VC says Silicon Valley will remain a tech hub for years, but Silicon Alley, with its focus on content, is paving the way for exciting changes.

    What's in a name? A lot, according to Mark Suster, founder and CEO of Build Online and an investor with the Los Angeles-based GRP partners.

    That's why his firm is changing its name.

    "I think it's a bit rich that we go around to entrepreneurs and say markets are being disrupted, you need to change," he said during the Venture Forward Conference in New York on Tuesday.

    The new moniker, which he wouldn't disclose at the conference but plans to unveil next week, will be the first such change for GRP in 17 years. It's meant to reflect GRP's renewed focus on transparency and investment in infrastructure--two things entrpreneurs say they want.

    The idea came after polling a group of entrepreneurs, who also said they look for operational experience, industry insight, marketing help, and people who can bring capital to the table from their VC firm. Since all those encompass what GRP does, "We felt we needed a name that would represent all those things," he said.

    When asked how hard it's been to do business "so far south of Silicon Valley," Suster acknowledged the challenge, but pointed to markets outside of the tech hub.

    "Silicon Valley will always produce the biggest hits; it will always be the tech ecosystem for the foreseeable future," he said. "But there are market conditions that make it easier and better to build outside Silicon Valley."

    Focusing on software-based start-ups has proven this: Many things which revolve around the Internet--content, commerce, and communication--aren't dominated by the Valley, he found.

    "Commerce is something great trading cities like New York, Chicago, Los Angeles have always done well," Suster said. In terms of content, "New York has a significant advantage there." And communication has strongholds in Washington, D.C., Kansas City, and "of course, New York. That's why we've seen companies standing out more."



  • Businesses in all kinds of industries are going mobile and bringing their goods directly to customers.

    Mobile may be the new thing for businesses, but there's an old way to put a twist on the concept. Pack your business onto a truck. Although food trucks now have a reality show, forgoing a permanent home for a business and taking it onto the road isn't a new concept. But it might be one your company should explore.

    Food trucks in their original incarnation--commissary trucks that brought coffee and bad food to locations like construction sites--have been around for many decades. So have trucks to replace automobile glass or wash and detail vehicles as well as vans that bring mechanics tools out to auto repair shops. In a way, plumbers and carpenters have done the same thing, bringing equipment and supplies to the customer's location.

    But the concept of putting a business on a truck is beginning to expand. Over the last three or four years, fashion trucks have become... fashionable. The people behind The Fashion Mobile of Minnesota used to own a store but found that buying a used truck off Craigslist cost about the same as one month of rent.

    There are trucks for all kinds of businesses: hard-to-find shoe brands, a record shop, kitchen and home goods, and vintage clothing. The Original Mobile Barbershop Co. is not the only one with chairs on wheels. Heck, there's even a site where people buy and sell used pet grooming vans.

    The principles are sound. You bring a business out to the customers and provide convenience. At the same time, you intercept people outside of their normal shopping routine and get more attention. Overhead is much lower, though you do have to work through the logistics of permitting and legal parking to do business on the road and avoid tickets.

    So what are some other businesses that you could do out of a truck, or with a vehicle as a supplement, going to the customer? Here are some ideas:

    • photography studio
    • nail or hair care
    • massage or physical therapy
    • business consulting
    • CPA/accountant
    • financial services advisor
    • tailor
    • wedding planning

    You could bring samples and services to a B2B client and ship afterwards. Insurance firm? Send the truck out to an office building where you've already made arrangements and workers can consult. Combine a truck with an existing business and the ability to schedule appointments and look at product on a website and the possibilities grow. Is it time that your business hit the road?



  • Great research doesn't always lead to great medicine -- and sometimes forming a company can actually get in the way.

    Say you’re a healthcare entrepreneur. And say you meet a brilliant immunologist at the American Society of Clinical Oncology conference, and she has very exciting data demonstrating full tumor regression in a genetically engineered mouse model of human breast cancer. It’s clear that she has discovered a critical step in cancer development that could be a great new drug target.

    Time to license the intellectual property, right? Get this scientist onto the board of your new start-up, then turn her research into a treatment and, of course, profits.

    Actually, that’s probably not such a great idea.

    Here’s why it’s not the right time to pull the trigger - and why it may never be:

    1. Most early science will not lead to drug candidates that pass feasibility and toxicology requirements to qualify for human trials. Human biology is complicated, and no one can predict what will or won’t work.

    2. Once you raise money and recruit co-founders, you’re in the business of convincing them that you will be successful. No matter what. In so doing, you incentivize scientists to design experiments that will support your business plan. This corrupts the conduct of the most important testing and encourages your scientists to generate ‘good enough’ data - good enough to keep the funding rolling in.

    3. Capital that could be going directly into research will instead be spent on the all-too-familiar costs of doing business: salaries, attorneys, accountants, boards of directors, etc.

    4. As all these parties become more invested in the success of certain experiments and approaches, the less willing they become to admit it when things-;even small things--inevitably go wrong. Dismantling a team and a company is difficult, and it isn’t any fun.

    5. Even the best outcome - generation of a compound that achieves Investigational New Drug status- carries a burdensome economic sidecar. To generate attractive returns for your earliest-stage investors, you have to begin recuperating not only your company’s scientific investment, but also the general and administrative costs, which have probably eaten up one-third to one-half of the total capital invested. And the road to a marketable drug has just begun.

    6. In the pursuit of ‘good enough,’ it’s likely that your team has passed over other approaches that may have led to better drugs. Now that capital is gone.

    Can you tell that I’ve seen this movie a few times? Here’s when you might consider investing:

    1. When the science has become a platform--a fundamental new approach to generating many new drugs. Now you’re jumping into something that’s more akin to an engineering start-up.

    2. When a bonafide drug molecule (better, several) has been advanced to the human trials stage. This is still a high-risk investment, but at this point your ultimate buyers - the pharmaceutical companies - will be lining up to partner with venture capitalists and entrepreneurs to co-invest. That greatly raises your chances of profitable success.

    In medicine, forming a new company around early science can easily produce a misalignment of incentives and waste precious capital. Early-stage biomedical assets should be managed and tested as a portfolio of ideas with no bets or promises placed on any single one. This will allow the unbiased pursuit of the projects that survive rigorous vetting and testing, all the way through to drug molecules that are ready to be used in the treatment of actual disease.


  • Feynman stands in front of a blackboard strewn with notation in his lab in Los Angeles, Californina.

    Nobel-prizewinning physicist Richard Feynman was an eccentric within the scientific community. But he sure got a lot done.

    In the book, Surely You’re Joking, Mr. Feynman!, Richard Feynman, a Nobel Prize-winning theoretical physicist, relates a story about an ant he found near his bathtub.

    Instead of squishing the bug, Feynman put some sugar out for his visitor and used a colored pencil to track the ant’s march back to its nest. When another ant emerged to collect more sugar, Feynman tracked its movements as well. Feynman soon discovered that the ants used each other’s trails to find the pile of sugar he’d left out. He also learned that the ants continually improved the route from the sugar to the nest over time.

    Tracking ants all day with colored pencils doesn’t exactly seem like a productive exercise. But for Feynman, that was never a consideration. He let his curiosity guide him. He was always ready to tackle questions that interested him with focus and care.

    For Feynman, productivity was less about work and more about exploring problems that intrigued him.

    Leaders, entrepreneurs, and anyone who strives to do more can learn from Feynman’s unique way of working.

    1. Don’t worry about what others are thinking

    Feynman was an eccentric within the scientific community. He frequented strip clubs, drank heavily for a spell, and taught himself to paint. He never let the judgment of others get under his skin or unnerve him. He was content to follow his own course and do as he pleased.

    He wrote, “You have no responsibility to live up to what other people think you ought to accomplish. I have no responsibility to be like they expect me to be. It's their mistake, not my failing.”

    By adopting this attitude you free yourself from paralyzing second guesses, doubts, and uncertainty. Work in your own way and don’t let other people’s criticisms delay you.

    2. Don’t think about what you want to be, but what you want to do

    Feynman did his best work when his curiosity, interest, and wonder were piqued.

    “Fall in love with some activity, and do it!” Feynman advised. “Nobody ever figures out what life is all about, and it doesn't matter. Explore the world. Nearly everything is really interesting if you go into it deeply enough. Work as hard and as much as you want to on the things you like to do the best. Don't think about what you want to be, but what you want to do. Keep up some kind of a minimum with other things so that society doesn't stop you from doing anything at all.”

    If you do what you want to do, everything else will fall into place. If you undertake tasks you want to do first, your enjoyment will increase your productivity and enhance your focus.

    3. Stop trying to be a know-it-all

    Feynman accepted that he didn’t know everything and that most of the world was one big mystery. He didn’t bother trying to solve the mystery of the universe or being the smartest person. In fact, he liked not knowing things. Ignorance, and not having all the evidence, made him excited.

    “I think it's much more interesting to live not knowing than to have answers which might be wrong,” Feynman said during an interview. He once commented in a lecture, “We are trying to prove ourselves wrong as quickly as possible, because only in that way can we find progress.”

    Embrace your ignorance and let it propel you to new, interesting discoveries. Try to prove yourself wrong and don’t be afraid to fail.

    4. Get off the computer

    Feynman was able to follow ants around with colored pencils, learn samba in Brazil, and discover how to crack a safe because he enjoyed learning things that interested him. However, he avoided computers because they were distractions that dulled his ability to investigate the world.

    “There is a computer disease,” Feynman tells us. “Anybody who works with computers knows about [it]. It's a very serious disease and it interferes completely with the work. The trouble with computers is that you 'play' with them!”

    Obviously, computers are crucial to today’s world of work. However, it’s advisable to free yourself from them whenever possible. They can distract and limit your productivity and perhaps your creativity.

    5. Have a sense of humor and talk honestly

    Feynman was never one to dress up his sentences with fancy words and complex phrases. He tried to explain things clearly and with a touch of humor.

    He lived by a simple rule: “The first principle is that you must not fool yourself, and you are the easiest person to fool.” The phrase speaks to Feynman’s enduring modesty and acceptance that he was no better than anyone else. His most urgent goal was to learn about the world and as such he did it with astonishing precision and productivity.

    Don’t pretend to be better than others and don’t fool yourself into thinking you have all the answers. Like Feynman, be humble and talk directly and honesty.



  • I just dumped (and donated) 300 books. But the rest you'll have to pry from my cold, dead fingers.

    Two weeks ago, I dumped more than 300 business books.

    “Dumped” sounds harsh. The purge wasn’t as bloody as all that. Many were unbound galleys stamped with dire warnings not to quote, reproduce, or distribute. I’m very cautious about such matters (in accordance with the FBI’s no-exhibition rule I never watch DVDs with anyone beyond my immediate family). So I dutifully stuffed the galleys into 30-gallon garbage bags and left them for the trash guy.

    The hardcovers I deposited in a book-donation bin outside the local high school. Books on startups I set aside for the prison library where I volunteer. The inmates are always talking about businesses they plan to launch when they get out--a motorcycle detailing shop, a tattoo parlor, one of those mondo vending machines stocked with pet supplies. They can’t use the Internet, and the few entrepreneurship books available to them are out of date. So I know those volumes will get a lot of use.

    My own library began accumulating when I started reviewing new business titles for Inc. Before that I owned a couple of shelves’ worth: the canon, if you will. I had Porter on strategy; Bennis on leadership; Schein on culture; Senge on continuous learning; Kotter on change; Christensen on innovation; Drucker on everything. Entrepreneurship has produced a canon of its own, including Amar Bhide’s The Origin and Evolution of New Business; Jack Stack’s The Great Game of Business; and my colleague Bo Burlingham’s Small Giants. Also The Peter Principle, The Art of Demotivation (by Despair.com founder Dr. E.L. Kersten), and, of course, the seminal work of Scott Adams.

    Over five years, that collection had swelled 30-fold. Publishers cast virtually all their bread upon the waters, so I receive as many as four or five titles a week. A handful I write about. A few find a place in my home office. The rest migrate down to IKEA bookshelves in the basement. Recently, my near-and-dears decided to clear out that basement to free it up for teen parties. (Apparently teenagers lose all zest for life when forced to congregate on the same floor as adults.) I was assigned the task of culling my business-book hoard by two-thirds or more.

    I expected the process would prove agonizing. Which of the four books on managing millennials should I consider the managing-millennials Bible? How many Seth Godin titles do I need to represent his oeuvre? I knew I should probably hang on to one brain-science book. But the amygdala so rarely comes up in conversation.

    In the end it wasn’t so hard. Whole categories I instantly deemed expendable. Out went the parables. Out went the leadership lessons from sports and military figures. Out went the creativity books full of line drawings and white space. Out went the books laying out an author’s trademarked “system” for generating ideas or managing teams. Out went the technology books published more than a year ago. Out went the books that didn’t mention by name any actual businesses, or that merely name-checked usual suspects like Apple, IKEA, and Nordstrom’s.

    My daughter suggested dumping the myriad books with alliteration in their titles. That turned out to be a surprisingly effective sorting principle.

    What made the cut? Here are just a few of the titles I retained without a second thought:

    The Progress Principle: Using Small Wins to Ignite Joy, Engagement, and Creativity at Work. HBS professor Theresa Amibile explains that employees are happiest and most productive in environments where they can make unimpeded progress on their work every day.

    Everything Is Obvious: How Common Sense Fails Us. Sociologist Duncan Watts argues that decisions and predictions often go awry because we think we understand more about the world than we actually do.

    To Sell Is Human: The Surprising Truth About Moving Others. Business author Daniel Pink takes the first really fresh look at sales in ages. Everybody sells, he explains, and getting people to buy requires softer skills than we were taught.

    Good Boss, Bad Boss: How to Be the Best… and Learn from the Worst. Stanford professor Bob Sutton’s worthy successor to The No Asshole Rule. If only Sutton was director of human resources for the whole world.

    The Lean Startup: How Today’s Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses. Entrepreneur Eric Ries articulates what many of his peers have long instinctively known and launches a movement in the process.

    The Power of Habit: Why We Do What We Do in Life and Business. Business reporter Charles Duhigg explicates a seemingly mundane but potent motivator. Useful for marketers, bosses, product developers, and anyone with an unused gym membership.

    The Laws of Subtraction: Six Rules for Winning in the Age of Excess Everything. Innovation advisor Matthew E. May became a student of minimalism during his years at Toyota in Japan. Less is more.

    Islands of Profit in a Sea of Red Ink: Why 40 Percent of Your Business Is Unprofitable and How to Fix It. MIT lecturer Jonathan Byrnes directs his waste-seeking spotlight into every nook and cranny of a business. This book is spinach: not a delicious read but very good for you.

    The Wide Lens: A New Strategy for Innovation. The Tuck School’s Ron Adner reminds us that innovations--no matter how brilliant--require upstream execution from suppliers and downstream cooperation from distributors to succeed.

    Playing to Win: How Strategy Really Works. Once and future P&G chief A.G. Lafley and the Rotman School’s Roger L. Martin show leaders how to make the right choices and urge them to ask this excellent question: “What would have to be true for this strategy to succeed?”

    Those are just a few of the 200-or-so titles that survived the shakeout. Clearly I failed to reach the two-thirds benchmark. But I’ve promised my family that as I add new volumes to the shelves I will get rid of old ones. That means every surviving book should be glancing over its shoulder. Yeah, Wikinomics: How Mass Collaboration Changes Everything, I’m looking at you.



  • If you want all your employees to have the same experience at your company, don't forget about this crucial relationship.

    As the founder and CEO of BerylHealth, I built a company from three employees to almost 400, and scaled a unique corporate culture along the way.

    But earlier this year Stericycle, a public company, acquired BerylHealth and I was named Stericycle's chief culture officer. Now I have a much different challenge. Stericycle has 13,000 employees in 13 countries, a great financial track record, and strong customer satisfaction. But its executives have determined its future success is contingent on a renewed focus on employees.

    Gauging Company Culture Today

    One of my first steps is to "baseline" where Stericycle's culture stands at this point. To do this, I recently conducted the first employee satisfaction survey the company had conducted in four years.

    As I reviewed the survey results and read thousands of open-ended comments, a couple of things hit me. First, Stericycle has a lot to be proud of. Its employees are loyal and hard-working, and committed to the company's success. Second, the problems and issues Stericycle employees raise are much the same as what I've always heard from the Beryl team. Whether you have a company of 13 people or 13,000, employees want what I'd call the basics.

    Here's what they've said so far:

    • Give me the tools and resources to do my job.
    • Make sure I understand the company's vision so that I am here for a purpose bigger than my job.
    • Show me that I am valued for the work that I do.
    • Give me opportunities to grow.

    Where a Culture Problem May Lie

    As I read the survey responses, I also noticed a great range in their tenor, from those who were highly satisfied to those who were very unhappy. That told me that the culture problem for Stericycle isn't knowing what to do, but instead knowing how to do it consistently. To me, that says that a breakdown is occurring with how middle managers and supervisors are tasked with and execute on management's vision.

    What's the lesson for you? As your company grows, realize that even if you do a great job of setting the vision and communicating it from the top, a different obstacle awaits when it comes down to the most important relationship in your business: the one between an employee and his or her direct supervisor.



  • This vicious curse can take you down if you let it. Here's how to beat it.

    Anyone who has started and ran a business knows the entrepreneur's curse.

    The frustrating dichotomy between never having enough spare time outside the business and the frightening reality when you do.

    When I started Wild Creations a number of years ago, I lived the curse firsthand. As someone who had just come from the corporate world and was a master at leveraging vacation days with three-day weekends and long holidays, the entrepreneurial transition was challenging. I had lofty aspirations of "being my own boss" and having more freedom and independence.

    Nothing could have been further from the truth.

    Like any new business, it consumed every minute of spare time and every ounce of energy I had. When I actually took a few hours off, for example on a weekend to indulge in a simple college football game, the enthusiasm and pleasure of doing so were always dampened by the heavy guilt I felt for not working at the business. If we were slow enough to take time off, should I not be focused on trying to get more business?

    It was a vicious cycle.

    After a while, however, I learned to effectively deal with the "curse" and in fact became quite adept at avoiding it altogether. Here are a few tips on how other entrepreneurs can do the same:

    1. Find a Partner

    Many entrepreneurs, by nature, are soloist. While completely understandable, I personally find it to be less optimal. I was fortunate to find a trustworthy partner and co-founder at Wild Creations. We had met and worked together on a USAID project overseas and discovered that we shared similar entrepreneurial aspirations. It took a number of months to establish the rapport and the trust we needed, but the patience paid off. When one of us needed time off, we could always feel confident knowing that the business was in capable hands.

    2. Hire Better People

    If you cannot find a good partner or opt to go at business yourself, make sure to find better employees. And by "better" I mean better than you. Let's face it, the most capable and trusted person you are going to find to run your business is you, so do not compromise on selecting employees that you will trust to do it for you.

    3. Learn to Delegate

    For many entrepreneurs (present company included), giving up control of any aspect of the business is difficult. I often compare my business to my children. As nice as it might be, turning over the responsibility to watch and protect them is not easy. It is important to understand, however, that you cannot do or control everything. Indeed, there are individuals much better qualified for particular tasks. Understand your strengths and the priorities of the business and trust the rest to your team.

    4. Find Your Happy Place

    Like any parent, you will always worry about the business, regardless of the team you have in place. For me, I find it useful to have a "happy place" where I can go and tune out the business and outside noise. The time allows me to recalibrate, mentally, so I make certain I am focused on what is important. Whether it is a beach, a reading bench, a set of headphones, or a state of Zen, find your place and be willing to allow yourself the indulgence of "letting go," even if for a short time.

    5. Do What You Love

    It may be a cliché, but it is spot on. Most entrepreneurs choose to start businesses to pursue a personal passion or interest but quickly get lost in the rigor, stress and anxiety of running the business. When you start to get frustrated, remember why you started your business and reclaim the enthusiasm you had before. Working tens of hours in the business then feel a little less like a chore.

    The entrepreneurs curse is, for the most part, mental. It requires the ability to turn the business "on" and "off" at a moment's notice, which is completely achievable but takes practice ... lots of practice. In the end, you may not find more spare time to enjoy, but you will most certainly learn to enjoy the spare time you have.

    As for me, I finally learned to enjoy my ASU Sun Devil football games ... outside the office!

    Have any other tips for beating the entrepreneur's curse? Please share them below!



  • This simple approach to market research reveals what customers really want when they buy your product. (Hint: It's not the product.)

    Guerrilla customer research is easy. To prove it, we just need 4.5 minutes of your time.

    That's how long it takes to watch Harvard Business School professor Clayton Christensen--the guy who coined the term "disruptive innovation"--explain one such technique in a video on the Forum for Growth & Innovation's website.

    Christensen (@claychristensen) describes how his team learned why a fast food chain's customers were buying so many milkshakes for breakfast. News flash: It wasn't because they wanted milkshakes.

    That's interesting, but it's not the point. The point is how Christensen's team unearthed what motivated this seemingly odd behavior. The method was cheap, simple, and highly replicable. So replicable, we're outlining it in three steps.

    1. Before you interview, observe. Christensen's team spent a long day taking notes on milkshake buyers. "It turned out that nearly half of the milkshakes were sold before 8 o'clock in the morning," Christensen says. "The people who bought them were always alone, it was the only thing they bought, and they all got in the car and drove off with it."

    2. Ask the big-picture question. The next day, they asked customers "What job are you hiring the milkshake to do?" The answer: The customers "had a long and boring drive to work, and they just needed something to do." They didn't want a milkshake, per se, but something easier to consume than a greasy doughnut or a dry bagel.

    3. Conduct research face-to-face. "What job are you hiring the milkshake to do?" is a deceptively complex question. If you ask it in person, you can explain what you mean by "job," ask follow-ups, and drill down. Posed via e-mail, the question might yield a useless answer. Asked in person, it revealed something surprising about commuters' preferences.

    Related Articles

    They Don't Need a Drill. They Need a Hole.
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    A Long-Term Vision of Branding



  • Good or great is acceptable for some, but consistently striving for awesome with this formula will prevent you from regretting your business or your life.

    Thanks to Kanye West, the word awesome has been overused of late. Some even claim awesome fatigue. Why do things have to be awesome? Isn't good good enough? What about great--isn't that good enough? Not in today's business environment. With all the noise and distraction even great can fall short. It's not that people and companies intentionally force mediocrity our way. In fact, it's their lack of intention that usually results in mediocrity. But given a choice, I strongly believe most people would choose awesome.

    Three key characteristics define an awesome experience:

    It Must Be Positive

    Awesome experiences are always positive. Awesome by definition means inspired by that which is grand or sublime. Creating a positive experience will assure that your audience consistently wishes to relive it.

    It Must Be Meaningful

    What is the point of doing something if nobody cares? Meaning comes from context and impact, and lends itself to sharing and discussion. If no one is talking about it, it wasn't awesome.

    It Must Be Memorable

    Reflect on the business or life experiences you remember. They likely resulted in a surprising epiphany you couldn't wait to share. You must find a way to connect with a compelling message that sticks in the brain.

    Awesome experiences can be created anytime, anyplace, so why isn't the world overflowing with them? Primarily because creating them requires forethought, creativity, planning and execution. It takes time, skill and an understanding of how to turn a mediocre or "just OK" experience into one that is meaningful and memorable for everyone. Whether you are trying to step up your marketing, make an impression on someone or just create an awesome experience for yourself, this formula will help make it happen.

  • Fulfill The Need
    At the very least, a good experience requires you to be a trusted provider and resolve whatever need is at hand. Anything less is simply a bad experience. A customer wants to reliably get what they expect. People crave dependability. Without basic needs being met, people are anxious, concerned and closed. Of course if all you do is provide basic needs, you'll be commoditized, and rarely considered if better choices are available.

  • Provide Entertainment
    You can go from good to great by making the experience fun. Engage the participants so they enjoy the activity. Often in sales, building relationships does this. It's more fun doing the most mundane of transactions when you like the people with whom you are working. Customer retention is often dependent on this element.

  • Create the Unexpected
    This is certainly the hardest of the three components to achieve, but by far the most critical. Today people are bombarded with so much information and it's rare that they are surprised. Find a way to wake people up in a way that is relevant to the experience you want them to remember. It could be with humor or great beauty, but consider where their thoughts are likely to go and take them a different and wonderful direction. This way they have a huge Aha! moment that makes them remember the experience for a long time to come.
  • Only providing two out of three of these components will come up short. The awesome experience requires the complete convergence of need, entertainment, and the unexpected, nothing less. Pursuing the awesome experience doesn't require lots of money, props or even other people. It mainly requires a decision on your part to make it happen and then a commitment to execute. Of course pursuing the awesome experience doesn't assure it will occur, but if you never attempt, you and those around you are sure to be forever suffering mediocrity.

    Like this post? If so, sign up here and never miss out on Kevin's thoughts and humor.



  • Want to live in a world of less digital clutter? Try this email management app.

    I tend to get about 100 messages a day. That's down from about 300 before I started actively managing my inbox.

    In a fairly recent column in the magazine, I wrote about both SaneBox and Unroll.me and how they helped me get some sanity. I'm still using both on a regular basis, but I can't say they have completely solved the email crisis for me.

    Part of the problem is the nature of my job: I'm a tech columnist so I'm inundated with pitches, edits, feedback letters--the whole works. It's a win for me--I receive great ideas and communicate directly with some incredibly smart people, but the influx is also a time-suck.

    Inbox zero is an admirable goal. Studies show we're more productive when we have less clutter around us. But many of the tools I've tried focus on broad categorization and not action.

    Recently, I tried a new app called Mailstrom. First off, I really like the name. It's a play on maelstrom ("a violent or turbulent situation," indeed). The sign-up process is painless: You just type in your email account and password, then approve the access.

    Analyzing my inbox took a good 30 minutes; then I received a notice informing me I could start using the app. The idea is to do some housecleaning and stay at zero each day. I'm a good test subject because I had a few dozen emails--some waiting to be archived, a few that only needed some minor attention, and plenty of extra fluff.

    The app splits email into buckets but they're not intended to stay there. The one for Sender shows grouped emails. If you don't really need to deal with that topic anymore, you can delete all the related messages in two clicks. You can also view by time--say, all messages older than three months ago. You can continue to chop away at your inbox by removing social networking notices and shopping-related messages.

    My favorite feature is the size bucket. You can see messages over 10MB, between one and 10MB, and under one MB. In a few seconds, you can remove huge emails with attachments that tend to slow down email processing. In all, I culled all of my Gmail messages down to zero in about 10 minutes, which is impressive. The same management chore would have taken three times as long without Mailstrom, especially since Gmail provides no way to see large emails. (An upcoming version of Gmail will provide similar categorization.)

    Mailstrom works with Gmail, Google Apps, Yahoo, AOL, or any IMAP email service. It's entirely free. You'll see some nifty charts as well that show your time of use (say, if you mostly get emails in the morning or at night) and a quick tally of your zero-state (how many messages you've received today and how close you are to zero).

    I plan to keep using it--and living with less email clutter.



  • These days you can learn more than ever before, and do it when you want, and where you want to. That's a great thing.

    I recently attended an impromptu reunion between my husband and his very best friends from college. As I watched them reminisce over their college years, which took place at one of the most expensive universities in the country, I couldn't help but think about the fact that my husband, one of the most notable marketers around, never took a marketing class while in school. And although I was a very focused marketing and advertising communications student at Emerson College, most of my friends ended up working in vastly different industries than what they had prepped for during school, too. As my own daughters grow up, I frequently think about the value of the conventional college experience. My 10 year-old spends more time on Code Academy than she does with her nose in a textbook, and when my six year-old wants to know something that I don't know, she simply asks, "Google it, Mommy." The Internet has undoubtedly changed the way you learn. Below are just some of the ways that the Internet has made it easier to receive an education: MOOCs: A massive open online course (MOOC) is a class with unrestricted enrollment that takes place on the web. MOOCs are generally free and taught by university professors--often big-name academics that are incredibly appealing. MOOCs vary in terms of quality, and MoocAdvisor.com launched recently to enable users to review MOOCs. Boot camps and certifications: I attended a women in leadership conference once in which a speaker said that when she felt that she wasn't confident around legal issues surrounding her business, she went to law school, and immediately felt more confident. That resonated with me, especially as I am someone who became a CEO but never got an MBA--and learned the ins and outs of running a business through the school of experience. I've been considering going back to school for a while now, but in the interim decided that I just needed to learn about organizing my profit-and-loss statement to make it simpler and easier to analyze. After some initial Googling, I found an online course that offered a certificate around basic finance for business owners. It was $149. It taught me exactly what I needed to know, and I was thrilled to take the course lessons and incorporate them into my business. There are a multitude of online boot camps and certifications, and though there is usually a fee associated, it's typically nominal. Online degrees:What if you wanted to go to an accredited university, but life got in the way? Colleges and universities that recognize this challenge have started to make it easier too. Associate's, bachelor's, and master's degrees are all available online, allowing you to go to an accredited university that maintains the standards of a more traditional education, but do it remotely. In the fall, I will be teaching a master's course in interactive media at Quinnipiac University Online, which will give students a full academic experience, but at the convenience that today's busy society desperately craves. If I ever were to go back to school to get my MBA, the only possible way that I could manage it would be to take the courses online. Of course, when I sat at my husband's college reunion, I thought about some of the things I loved most about school, like when I met friends I'd have for life. The question, of course, is whether or not that experience is worth it: If you could get the same learning and training on your own schedule at your own pace, would you? Colleges and universities need to face this reality, and they need to be prepared for how students respond.


  • To make a virtual office function well, you may need to take some extreme measures. These companies did--and they're better off for it.

    Do you have employees in multiple locations? Do you have employees working from home?

    Great--but how do you ensure a distributed workforce comes together to create an outstanding team?

    The following is a guest post from Walter Chen, co-founder of iDoneThis, a team management tool that makes it easy for people to share what they've gotten done. (Here's a post of mine about essential online tools that includes a description of iDoneThis.)

    Here's Walter:

    Distributed work run entirely against the way we've been socialized to work: We commute to an office, we make small talk at the water cooler, we shuffle into conference rooms for meetings... that's how we get stuff done.

    You wouldn't put a physical office together without putting some thought into layout, furniture, and environment. Just because virtual offices do away with those traditional considerations doesn't mean there's less to think about.

    That's why successful teams not only acknowledge and address the challenges of having a distributed team, they take exaggerated measures to ensure that they succeed.

    To make a virtual office function well, you may need to take extreme measures and invent new ways to work together:

    1. Share everything about yourself with your team.

    Your employees probably don't know how much their co-workers make (much less their bosses, or even you), how much they sleep, or the specific steps they're taking to improve themselves. But those are exactly the details they share every day at Buffer, a social media marketing start-up with team members around the world.

    When you're co-located with your team you gain an incredible wealth of contextual information about your teammates just by being around them. While those details may seem superfluous or trivial, that richness of context breeds trust.

    Distributed teams get none of that, and that's why Buffer took such a deliberate approach to making sure that its team has context. Extreme transparency is a fundamental value in their company. Every employee at Buffer receives a Jawbone UP wristband that tracks how you're sleeping, if you're walking enough, and more, which is all shared with the team.

    They also use our productivity app, iDoneThis. Everyone at Buffer, including the executive team, logs what they got done, what they're doing, and how they can improve--and they do that every single day.

    2. Turn your webcam on--and leave it on all day.

    Tapping someone on the shoulder to talk feels so easy, it seems strange that spontaneously Skyping your colleague seems like such an intrusion. The distinction is big enough that I personally never Skype someone without a prearranged meeting.

    And since scheduling is a nuisance too, that often means I let opportunities for virtual face-to-face moments with my colleagues slip.

    When Foursquare opened its first office outside of New York in San Francisco, they proactively took a drastic step to address the problem and make sure their teams on opposite coasts would stay connected. They took the typical idea of videoconferencing and gave it an unconventional twist, creating what they call "The Portal."

    While most videoconferencing takes place according to preplanned meetings in separate conference rooms, the Foursquare team devised The Portal as a video conference system that was always turned on and running in the primary work area rather than in a little-used room.

    You can walk up to The Portal in San Francisco and wave good morning to your colleague in New York and start a spontaneous conversation. Daily stand-ups take place in front of The Portal, bypassing all the nuisances associated with setting up a call, like struggling to connect, reconnecting after a call drops, and waiting to invite other participants.

    For distributed teams without a Foursquare-sized budget there's Sqwiggle, an always-on video chat system that shows your team what you look like in your pajamas. Sqwiggle works like The Portal except that it only uses your webcam and monitor, not thousands of dollars of Cisco videoconferencing equipment.

    3. Wake up at 3 a.m. every morning. Seriously.

    If your teammate is sleeping while you're working because you live in different time zones it can take an entire two-day cycle to resolve an issue that would otherwise take minutes. Projects fall behind schedule, but worse yet, small frustrations and setbacks accumulate and become hugely demoralizing.

    Qualtrics, a rapidly growing analytics company, solved this problem--but the solution required every employee to start work at 3 a.m. every day for a year: They synced time zones with their European customers to share the exact same work day.

    Imagine selling that to your team.

    Qualtrics took this extreme measure to ensure they could work synchronously with their clients and resolve issues in real time rather than let time zone issues force problems to roll over from one day to the next without resolution.

    In addition, since the second-hardest part of time zone syncing is time zone math (the hardest part of time zone syncing is starting your workday at an ungodly hour) Every Time Zone is an invaluable tool, providing a visual guide to the local time around the world.

    4. Overcommunicate, overcommunicate, and overcommunicate some more.

    When you work in a virtual team you lose the primary way you have communicated with people your whole life: face-to-face conversations. Without face-to-face access, communication often flags, creating inefficiencies or, worse, loneliness and disengagement.

    Laura Roeder, founder of LKR Social Media, a social media education company with a distributed team, had an insight on how communication happens on distributed teams that led her to adopt an extreme policy.

    When a team works virtually, it loses the power of shared physical space. So instead, technology becomes that shared space. Just like a company might have an office area, a kitchen, a conference room, and a relaxation area--all kinds of physical spaces to catalyze different types of employee interaction--a virtual team must use a varied range of technological conversation channels.

    Rather than be like some companies that only use email, at LKR Social Media they use six times as many tools. They use Yammer for water cooler conversation, iDoneThis to keep everyone in the loop on work status, Google Hangout for video conferencing, Skype for one-on-one calls, PB Works as an internal Wiki, and Wrike for structured conversation about projects.



  • Forget the one-hour interview, says the founder of energy drink company Solixir. Try these tactics instead.

    In a start-up company, every employee counts, and it's important to have a talented, smart, enthusiastic person in every job. But you can't afford to pay the salaries such employees usually command.

    "The reality is you're not going to be able to pay market rates as an entrepreneur. You need to compensate for the higher level of talent you can't initially pay for," says Scott Lerner, founder of Solixir, a seven-person company which makes all-natural energy drinks. "So you need to take a step back and take a careful look at the talent you're hiring."

    That's why the standard interview process won't cut it for a start-up, Lerner says. "It's not plug-and-play like it was when we hired at Pepsi," he adds. (Lerner was a PepsiCo executive before starting his own company.) "You need to move beyond the resume and get insight into the person. You can't do that in an hour-long interview--and references really don't amount to anything."

    What does Lerner recommend instead?

    1. Try them before you hire them.

    For lower level positions, give prospective employees a thorough test by first hiring them as interns, or give college students part-time jobs with a view to possible full-time employment when they graduate. "If I can find those opportunities, especially for inexperienced folks, it covers our backside and gives them a chance to see how our company works," Lerner says.

    It's important not to let people know they're being considered for full-time employment during this trial period. "I've told them in the past it was a tryout, and it was a mistake," he says. "It corrupts the process. If they know that's in front of them, they may take less money, or work harder."

    And, he notes, most of the people he tries out wouldn't make it as full-time employees. "It's a weeding-out process," he says. "It's not over the course of a week, it's over two or three months seeing them in action."

    This means Lerner must plan well in advance. For instance, if he knows he'll need a new field marketing person in December, he'll start looking in June for appropriate college students to hire as interns or part time. "By October or November I'll feel comfortable offering someone a full-time position," he says.

    2. Go to lunch.

    Internships and part-time tryouts work great for hiring lower level employees, but not for senior positions, Lerner notes. Yet getting the right employees in responsible positions is crucial, and start-ups can't afford to pay competitive rates for them. "We can't hire someone from Red Bull at a senior level position," he says. "I'd rather hire someone with less experience but an extremely aggressive personality who's ready to grow."

    To identify candidates who fit that profile, Lerner says it's important to get to know a job-seeker outside the confines of the interview. Often he takes them out to one or more lunches. "First and foremost, I like to get them out of the standard environment and understand who the candidate is as a person," he says. "Will they want to work for me? Will they work well in our culture?"

    When seeking to get to know someone, it's important to keep in mind that asking certain questions of a job candidate remains illegal, whether you do it in your office or over a burger. Lerner says he only asks candidates the same questions he'd ask as part of a standard job interview.

    3. Take a tour.

    You learn a lot about a potential candidate by walking him or her through your operation or marketplace. "That might be having them come along with me, shadowing me on an in-store demonstration or walking through a store and chatting about the candidates' experiences and the energy drink category," Lerner says. "What I've found is that I can learn their thought process, whether they're going to gel with how I think about the category and how aggressive their thinking is."

    4. Don't talk titles.

    "If a person is really into titles, in my opinion, that's the kiss of death in a start-up," Lerner says. It might mean the candidate will be rigid about the parameters of his or her job. "You might need someone in a CFO position, but that person will also have to do other things--that's the nature of the beast. It's such a flat structure that you have to be a generalist."

    For instance, he says, on a recent day his company's CFO headed to a grocery store with other Solixir employees to put drinks on the shelves. "We'd just gotten into the store and we had to put the product out," Lerner explains. (He himself was back at the office packing up boxes for a UPS pick-up.)

    In fact, he prefers to have people start their jobs with no title at all. "There's always a job description," he says. "But when it comes to titles, a better way is, 'Hey Tom, you're working for us. And we'll figure out later what your title is.'"



  • Think requiring companies to pay interns is a good idea? It's not.

    When a U.S. federal judge ruled that Fox Searchlight had illegally not paid a couple of interns, people started to freak out. This is fantastic! Now all interns will be paid! Yeah, peace on earth! Prosperity for all!

    Make no mistake. The law has not changed. This ruling is not shocking. The former interns won at the summary judgment phase, which means there was no courtroom drama. ("And then the boss told me to get lunch!" countered with, "He volunteered! It wasn't part of his assigned duties!") It just means that the court considered what happened and said, "Well, this was patently wrong."

    What has changed is people's perceptions of the law. And while it is a good thing that companies will not be able to blatantly break the law, the end result will be bad for college students.

    Why? We already know that college is expensive, and that having a degree does not guarantee a job. We also know that your best chance of getting a job after getting that shiny new degree is if you have a slew of internships on your resume. Without those, you don't stand out. It's hard to convince a hiring manager that you are ready to be a financial analyst with a transcript and three summers working fast food. They want someone who has experience.

    Internships have been the way people gained experience. Companies were willing to take on interns as a sort of community service as well as the ability to get some of grunt work done for free. Though the latter has been illegal for a very long time, it's mostly ignored. Now, it can't be.

    More companies will be paying for their interns: It sounds good on its face. But it also means that some companies, particularly small ones, will just skip the interns altogether. If they have to pay, then why hire someone completely inexperienced who will only be there for three months anyway? Why not hire a real person who has experience and will stick around past the training phase? Which means the number of internships available will drop.

    This is not good news. Because up until now, college students were willing to exchange 20 hours a week for three to six months in return for something on their resumes and a recommendation from someone other than a professor or the lady they used to babysit for. With fewer internships available, competition for internships will increase.

    And who will get the internships when there are fewer slots available? The students at the top colleges, and the ones with the most connections. Which means those who have powerful parents will be the ones getting the more limited supply of internships. This is not helpful to the average person whose mom is not a senior VP at a Fortune 100 company or whose dad doesn't own his own business.

    While some are clamoring for an Intern Bill of Rights, and other interns are filing lawsuits, which prompted Reuters to declare that a wave of intern lawsuits was just beginning, I'm saying why should we prevent students from exchanging 20 hours a week of their time for some experience and a reference? Why take that opportunity away from them?

    We already allow people go go into debt to obtain degrees that are unlikely to help them be profitable. Companies aren't charging students to be interns, like colleges charge them to be students, and at the end of it, an internship will make you far more marketable than an A in any number of classes.

    People don't take jobs--or internships--unless they think they will be better off than they would be without the experience. If no interns want to sign up for a free internship, the companies will rapidly learn that they have to pay. On the other hand, if people are lining up around the block for the experience, it has shown itself to have more value than just a scant paycheck.

    The reason so many companies were able to get away with violating the law (because it really was so clear that Connecticut Employment lawyer, Daniel Schwartz, described the ruling as "far from shocking," on Twitter) was because interns didn't want to complain because they were afraid they wouldn't get any internships, which then lowers their chance of getting a real job upon graduation. In other words, they were choosing to work for free because the benefits of doing so were greater than the benefits of working for pay in an area unrelated to their chosen fields.

    What I want to see is more college students getting real world experience, not less. And the more regulation we heap on internships, the less real world experience will be available.



  • For businesses driven by creativity, hard work doesn't always result in success. In fact, it could hold you back.

    Why are some entrepreneurs luckier than others? You are not imagining it-some people truly do have better, more predictable outcomes than others. Some serial entrepreneurs may have several successful hits in a row, and others may struggle through several businesses and never get traction.

    The popular thought is that if you work hard, you will succeed. This may be true for many smaller service businesses--an accounting firm, say, or a dental practice--since there isn't a lot of mystery about market timing or product-market fit. For these businesses, the model is well defined and there are numerous predecessors that serve as models. For innovation-driven businesses, however, the outcome is much more uncertain. You can work hard, but you may not succeed. Even more vexing are stories about reluctant entrepreneurs who succeed despite themselves.

    Clearly, there is more to the story than simply working hard. The key appears to be your ability to encounter and recognize opportunities. In a 1999 psychology experiment at Harvard University known as "Gorillas In Our Midst," Dr. Daniel Simmons asked a number of study participants to watch a group dribbling basketballs and to count the total number of times the balls were dribbled. Halfway through the video, a six-foot tall man in a gorilla suit walked slowly through the spectacle, stopped in the middle, and pounded his chest a few times, before walking away. Afterwards, the study participants were asked who saw the gorilla. Surprisingly, more than half of them did not.

    A later study by European Sociologist Dr. Richard Wiseman expanded on this research in a book called The Luck Factor. In Wiseman's seminal study on the subject, he asked a group of participants to count the number of images inside a newspaper. They were given two minutes to complete the exercise, and most people used the full amount of time given to count and doublecheck their answers. A couple of participants however confidently completed the activity within mere seconds, both of them having the right answer. It turns out that, on page two of the newspaper, Dr Wiseman had taken out a one-half page advertisement that read, "Stop counting. The answer is 43. Tell the experimenter you have seen this and win $250."

    These studies illustrate a concept called inattention blindness. When we're too focused on solving problems, we often do not observe the opportunities right in front of us. Ironically, the answer to improving your luck, then, is not working harder-it actually might be the opposite. If you find that you are always doing "heads down" work and frustrated that you're not reaching your goals, it may be time to turn off the computer and go to an industry networking event or mingle with your customers. Have a drink and engage in conversation. Not only might you have the opportunity to reframe the problem in a way you hadn't thought about before, you might even make a few connections who can help you reach your destination a little faster.

    When you are trying to innovate and create new opportunity, it is important to be able to step back to see the big picture. Sometimes, it is only when you've stepped back and stopped thinking about the problems you're trying to solve that you can see things from a new perspective. So don't forget to take a little time to step back from productive work. You might feel guilty, but it could be the only way you'll see opportunity right under your nose.



  • You can't keep working 18 hour days and expect to be uber productive. What you need is a good night's sleep. Here's how to get it.

    To be truly productive, you have to start with a good night's sleep. Easier said than done, right? Well, the good news is there are plenty of sleep apps on the market that can help you monitor and improve your sleep--whether you want to get a full eight hours rest or just want to maximize nap time.

    So for you, busy entrepreneur, here are seven apps each with a unique approach to helping you catch some healthful zzz's.

    JetLag Genie

    For the traveling entrepreneur: After you submit your flight information and personal sleep pattern data to JetLag Genie, the iPhone sleep travel app formulates a plan to ward off the haze of jet lag. Personalized plans prepare you to shift your sleep schedule pre-departure, during the flight, and at your destination, so you can remain a step ahead of looming jet lag. JetLag Genie also includes a melatonin guide, so that you know when the naturally occurring compound, which regulates circadian rhythms needs a boost.

    Pzizz

    Have trouble falling asleep? Pzizz uses the combination of a calming voice and relaxing music to lull you to sleep, and offers sleep and power nap modules, the latter of which can be used for as little as 10 minutes. The app, available on iPhone and Android, also generates a new, unique soundscape every time you use it so that you won't get bored with a repetitive set of sounds.

    Sleep Cycle

    If you're getting enough sleep, but never feel rested, here's the problem: you're likely waking up from a deep sleep phase. Sleep Cycle is an app that uses the accelerometer in your iPhone to monitor movement and analyze sleep patters to determine when to wake you, the bio-alarm clock only nudging you to consciousness when you're in the lightest phase of sleep.

    Relax Completely

    There isn't, of course, always time to slip into eight hours of proper sleep. When all you have is a short time to take a break, Relax Completely offers a hypnosis session, on iPhone or Android, guided by one of the UK's leading hypnotherapists and trainers, Darren Marks.

    Sleep Talk Recorder

    Ever wondered what, or whether, you mumble during sleep? Sleep Talk Recorder, available for Android and iOS, can help you get to the bottom of your nocturnal musings, recording everything you say while you snooze. The app only records sounds, usually in short intervals, so there's no prolonged or blank recording. You can even go public with nighttime mumblings, sharing via Sleep Talk's main feed.

    Jawbone Up

    Want to get a sense of how sleep is effecting your overall health? Jawbone Up, a wristband that tracks your movement and sleep, keeps tabs on your light and deep sleep, waking moments, every movement, food intake, moods, and reminds you to get moving when you've been inactive for too long. It connects with a dashboard app on iPhone or Android to organize and evaluate your data. Jawbone Up can also link to other apps such as RunKeeper, MyFitnessPal, or MapMyFitness to evaluate your progress and devise a holistic plan to get healthy.

    SnoreLab

    Snoring keeping you up? Using the microphone in your iPhone, SnoreLab monitors your nightly snores and measures their intensity. This means you can test the effectiveness of snoring remedies and measure the impact of outside factors, such as alcohol, on your snoring. The app, which can be paired with anti-snoring mouthpiece VitalSleep to advance the lower jaw and reduce obstruction of the airways, is said to be particularly beneficial to snorers who are overweight, experience pauses in breathing while sleeping, or have mild to moderate obstructive-sleep apnea.


  • Jeff Bezos

    If you examine Amazon's grocery delivery service, AmazonFresh, you can clearly see a strategy centered on failure.

    Only one father of the dot-com boom is still innovating today--Amazon CEO, Jeff Bezos.

    Let's look at one of Bezos’ innovation initiatives; its grocery delivery service, AmazonFresh. E-groceries is a small, unprofitable market, but Bezos views that as a challenge to his innovative spirit.

    After all, the $603 billion grocery industry sports 1.1 percent profit margin. And with consumers buying 1.2 percent of that amount online, it remains to be seen whether anyone can make a decent return on investment in e-groceries.

    Take a look at the landscape: Webvan is the best example of a company that tried and failed in that quest. It raised $375 million in its November 1999 initial public offering, achieving a peak stock market value of $1.2 billion. The company bragged about its 26-city expansion plan, signing a $1 billion Bechtel contract to build high-tech warehouses worth $30 million each. Then, it filed for bankruptcy in July 2001, after losing money every year.

    A better model of online grocery delivery is FreshDirect. As I learned in a May 2010 interview with its CEO, Richard Braddock, a former Citigroup executive, FreshDirect was founded in 2004 on the idea of making a profit.

    And FreshDirect has done that. “In 2009, FreshDirect generated more than $250 million in revenue and it has been profitable since 2008 and was substantially profitable in 2009.”Braddock made the business profitable by operating in the densely populated New York region before expanding to Philadelphia in 2012,

    Bezos clearly took a lesson from FreshDirect’s success. AmazonFresh started in 2007 in the Medina and Mercer Island neighborhoods of Seattle and by 2012 had spread to other Seattle communities. On June 10, the service rolled out to a limited number of Los Angeles zipcodes.

    Bezos, as I see it, has also taken four lessons from Webvan’s failure:

    1. Hire those in charge of a failed strategy.

    If you wanted to get into a new business, you could not be faulted for hiring someone who had been spectacularly successful in that new business to run your operation. But Bezos did the opposite-- hiring executives responsible for Webvan’s failed strategy.

    AmazonFresh is led by Doug Herrington, Peter Ham, Mick Mountz and Mark Mastandrea, former Webvan officials who had spent years analyzing and fixing the problems that led to its demise.

    Hiring people who have failed is hardly a guarantee of future success. But it seems to be working for Bezos because these four Webvan vets know the business intimately, have thought about what they did wrong, and are eager to prove that they can apply the lessons learned to revive their reputations.

    2. Acquire technology invented by the failed executive.

    A few years ago, a colleague who studied at MIT with Mountz invited me to meet him at his robotics company, Kiva Systems. Mountz built Kiva on ideas and technologies originally developed at Webvan and that are a key part of AmazonFresh’s strategy.

    When I saw Kiva’s product in action, I was blown away. It consisted of huge frisbee-shaped robots that could be steered via a grid of floor magnets. The robots picked up the warehouse rack containing the item in the customer order and delivered it to the operator. He picked the item from the rack; scanned its barcode to verify that it was correct; and put the item in a carboard box with that customer’s shipping label.

    In 2012, Amazon acquired Kiva for $775 million in one of its largest-ever acquisitions.

    3. Focus on attractive micro-segments.

    While the grocery industry is huge, only a tiny fraction of that market is attractive as a place to operate an online grocery business. Finding those micro-segments is a crucial element of AmazonDirect’s strategy.

    Webvan executives later realized that it makes sense to segment markets based on mean travel time between delivery stops. For example, a single block in San Francisco may house 200 people, while one block in Moraga only has six.

    AmazonFresh and FreshDirect only deliver to densely populated areas. Certain neighborhoods in Seattle have many front doors with AmazonFresh totes. That’s where Amazon saw the lowest mean travel time between deliveries.

    4. Fix the business model before expanding.

    One of the most interesting points of the Webvan case that I taught in my Competitive Environment and Strategy class was the company’s obsession with getting big fast-- its then-CEO, George Shaheen, likened running Webvan to building a rocket to Mars.

    Mike Moritz, a Webvan board member and partner at Sequoia Capital, said that Webvan “committed the cardinal sin of retail, which is to expand into a new territory before we had demonstrated success in the first market.” According to Moritz, Webvan was failing in the Bay Area market even as it expanded into other regions.

    Through AmazonFresh’s very gradual expansion, Bezos demonstrated that he learned from that Webvan mistake.

    The four lessons he applied from Webvan’s flop highlight Bezos’ broader lesson for start-ups: winning flows from focusing the best brains and technology on making life better for consumers.



  • Having trouble staying productive when you're not in the office? These apps improve your workflow by storing data in the cloud.

    Working in the cloud can feel like you're disconnected from reality. You don't have a desk or an office, so even those minor accouterments of business (say, paper clips and a stapler) are not available.

    Yet, the benefits of working in the cloud often outweigh this weightlessness: being able to write up a Google Doc report from your own living room or finishing up your accounting while waiting in the lobby of a hotel. Mobility means freedom.

    For smart mobile workers, having the right tools can make all of the difference. You can replicate that real cubicle setting and still work at your local coffee shop. Here are a few of my recent discoveries, along with a few reasons why they help you stay productive.

    1. OfficeScope
    What I like most about the doc-sharing app OfficeScope is that it is designed for real business. We're not just living on an island, sharing documents with co-workers. You can set up a central repository and let vendors, partners, and contractors share docs. There are scanning features that help you move paper documents to the cloud as well.

    2. Producteev
    Some advocates of working only at the office (I'm looking at you, Yahoo) say it is hard to stay productive otherwise. They probably don't use Producteev, a social task management app for teams. The app runs on multiple browsers, major mobile operating systems, and even as a Mac app. For those in a hurry, you can check an activity stream to find out who is working on what.

    3. SweetProcess
    That old-school knowledge-base that runs only on your corporate server? It's not exactly accessible from your phone when you're at the mall. SweetProcess addresses the problem. You can capture company knowledge in the cloud, then tap in from anywhere. Say you need to fill out an HR form properly--SweetProcess works on the Web, tablets, and as a phone app. You can check training and procedures for your particular job.

    4. MailBox App
    Hardcore e-mail apps like Outlook are great--if you're in the office or using a computer. Mailbox App is different because it speeds up your workflow. (You do know you are working when you check e-mail, right? It's one of the most repetitive things we do.) You can tap to snooze on an unimportant e-mail, or swipe to archive messages.

    5. Blue Jeans
    No, I'm not talking about a new pair of Levis. This videoconferencing app, which lets you chat with up to 25 people, knows how entrepreneurs operate. It runs without as many distracting features--you just see someone talking and can interact as a team. The "one-click" meeting saves times because you get the same spontaneous chats as you would in the office.

    6. eVoice
    I'm a big fan of Google Voice and use it for recording interviews. But for more serious business phone management, eVoice is a smarter way to go. It runs on your iPad and you can route calls to another employee, hold a quick conference call, and get voice-to-text voice e-mail. But the best part is the appearance of having a brick-and-mortar office. You can set up an attendant that routes callers through a departmental tree, just like a PBX.

    7. Lettuce
    This oddly named app--maybe all the good ones were taken--is designed to help you stay productive from anywhere, even if you have to manage your inventory. You can process orders and credit cards, set up deliveries (with direct ties to FedEx and UPS), and keep track of what is in your warehouse. The app even integrates with e-commerce tools like Shopify.

    8. HopTo
    Quick, name the number one problem of working in the cloud? That's right: getting access to your work computer. There are plenty of remote access tools, but hopTo is one of the easiest to use. You punch up the app on your iPad and can see your desktop in seconds. The app also lets you search for files stored on your remote PC.



  • Not everyone is cut out to be a leader. But if you have these three traits, you might be a natural born leader.

    Reading leadership literature (including this column), you'd sometimes think that it was written in the stars that everyone has the potential to be an effective leader.

    I don't believe that to be true. In fact, I see way fewer truly effective leaders than I see people stuck in positions of leadership who are woefully incompetent at worst and seriously misguided about their own abilities at best.

    Part of the reason this happens is a lack of honest self-assessment by those who aspire to leadership in the first place. And so, in the interest of increasing the quality of next-generation leadership, I give you this simple three-point self-assessment tool.

    To paraphrase a certain comedian, "you might be a potential leader if..."

    You lead only when you have to, not all the time. We've all met the type of individual who simply must take charge. Whether it's a strategic brainstorming session, a pick-up basketball game, or a family outing, they can't help grabbing the lead dog position and clinging on to it for dear life.

    Always opinionated, usually impatient and frequently brusque, these gotta-be-in-fronters get so used to other people describing them as natural born leaders that sooner or later--to their own and everyone else's detriment--they begin to believe it.

    Truth is, they're most always nothing of the sort. True leaders don't presume that it's their divine right to take charge every time two or more people get together. Quite the opposite. A great leader will assess each situation on it's merits, and will only take charge when their position, the situation, and/or the needs of the moment demand it.

    Oh, and if you read that last paragraph with a sneaking belief that in most situations you are the right person to take charge, you're most likely a gotta-be-in-fronter, not a leader.

    You see much more than you do. Many business executives confuse leadership with action. These Tasmanian Devils believe that constant motion somehow generates leadership as a byproduct. Consequently, the more ambitious they are for a leadership role, the more furious their momentum becomes.

    Leaving us mere mortals in their wake, the Tasmanian Devil works harder, faster, longer than everyone else. Faced with any situation that can't be solved by the sheer brute force of activity, they generate a dust cloud of impatience. Their one leadership tool is volume: if they think you aren't working as hard as they are--or as hard as they think you should--their demands become increasingly louder and more strident.

    You'd think that such a blunt, one-club-fits-all mentality would preclude our action-at-all-costs executive from attaining any degree of seniority in a mature organization, but you'd be wrong. Sadly, many organizations, some of them Fortune 100 companies, encourage just such a chest-beating, fire-aim-ready definition of leadership.

    True leaders understand the value of action, of course, but it isn't their only tool. In fact, it isn't even their primary tool. Great leaders see more than everyone else: answers, solutions, patterns, problems, opportunities, threats. They know it's vitally important to do, but they also know that thinking, understanding, contemplation and interpretation are equally important.

    You change people. They achieve outcomes. Executive A hits his targets and burns out his team in the process. Executive B builds a great team, but they miss their goal. Which is the better leader?

    It's a false dichotomy, and sadly, one that I see in organizations all the time. A true leader is option C: someone who develops his or her team so that they can and do hit their targets, achieve their goals.

    If you're fixated on outcomes to the extent that you manipulate and bully others to achieve those outcomes (I know, you call it motivation--it isn't), then you aren't leading at all, you're dictating. And don't think this means that being a door mat is leadership either (we talked about the destructive nature of needing to be liked here). True leadership means building strong, capable teams that are goal- achievement-oriented.

    Download a free chapter from the author's book, "The Synergist: How to Lead Your Team to Predictable Success" which provides a comprehensive model for developing yourself or others as an exceptional, world class leader.



  • Ignoring tradition can be a path to success--but only if you dare.

    When an entrepreneur challenges the status quo, he or she is either squashed and forgotten about or they hit a nerve and a paradigm shift occurs. The latter happens when the entrepreneur is a true disruptor.

    Inc. has been following disruptors for years, and here are four companies that pushed the boundaries--and what you can learn from them.

    Aereo

    Story: This barely 2-year-old company allows users to access live broadcast TV through any Internet connected device. Founded by Chet Kanojia, the New York-based company has already raised $63 million in three rounds of funding and key investors include Barry Diller's IAC.

    Last year, a collective of big cable companies (including Comcast, Disney, and CBS) sued Aereo for copyright infringement. The battle got so heated that a few of the big company heads threatened to turn their networks into cable channels if the courts didn't shut Aereo down. But after months in court, the lawsuit was thrown out and the big guys haven't figured out a way to shutter Aereo. In fact, the company just announced their expansion into Boston and Atlanta.

    Lesson: Forget a back-up plan. "There is no plan," Kanojia recently said. "I really do approach this in a very simplistic way, which is there's absolutely nothing that should not allow a consumer to have an antennae. I have a firm belief that will be the case all the way through." He added: "Start-ups live with that risk on a daily basis. That's why we succeed, because we apply all of our resources on a very narrow area of innovation or focus. I have a great degree of faith that the amount of consumer reaction we're getting, will bear fruit."

    Minerva

    Story: The start-up, named after the Roman goddess of wisdom, aims to push the Ivy League off its pedestal. Set to open in the fall of 2015, the online school has already raised $25 million from Benchmark Capital and has gotten much press for its gusto in taking on the very established collegiate education space. But founder Ben Nelson, former CEO of Snapfish, has his critics too.

    Academics from schools are skeptical of Nelson's vision -- prospective students may be dissuaded by the lack of lab spaces, sports, and even brand name. Minerva will reportedly hire new PhDs and scientists, without the promise of tenure -- a thing rarely seen in academia. And, to top it all off, Nelson has said he will create a prize to rival the Nobel, $500,000 for innovative teaching, open to any professor worldwide.

    Lesson: Challenge the archetype. "Our only criterion will be whether you have the intellectual werewithal to do the work," Nelson said, jabbing at universities' oft-referenced needs for intellectual diversity. "But you'll get no brownie points for how good an athlete you are, for how much money your parents can donate, or for what state you were born in." He's dreaming big: "We want to create the world’s greatest educational experience."

    Pandora

    Story: The online radio company wasn't always the blockbuster it is now. Founder Tim Westergren struggled for over a decade to get Pandora out of start-up mode. The company has raised just over $30 million in total funding, most recently from Hearst Interactive Media.

    Over the years, Westergren dealt with bankruptcy, lawsuits, and anxious creditors. The company has seen its far share of pivots: from a recommendation machine to an in-store kiosk, and finally, the streaming radio station based on user profiles. When royalty rates skyrocketed, he considered shutting it down. Instead of conceding defeat, he rallied his colleagues and customers and lobbied Congress. Recently, the company bought a terrestrial radio station in an attempt to lower its licensing fees.

    Lesson: Be persistent, but adaptive. "I've never, ever given up, even when we were in the most depressive bleak times," said Westergren. "I always thought Pandora was a good idea and would have a day."

    Square

    Story: Jack Dorsey, founder of Twitter, created Square when his friend lost out on a $2,500 sale because he couldn't accept a credit card. The payment company transforms devices into a credit card processor. Raising over $341 million in total financing, Square forced credit card companies to reevaluate their restrictions. It was a miracle for small business owners, who were used to paying egregious fees for any transaction: now they only paid 2.75 percent per swipe, or a flat fee of $275 per month.

    In Square's early days, most credit cards wouldn't allow for mobile aggregators. So Dorsey took a prototype to the banks and changed their minds. Now, many of the same companies who once blocked Square are trying to imitate it. Square Wallet, Dorsey's newest product, permits merchants to charge clients simply by typing in their name and charging their account.

    Lesson: Don't be intimidated. "I didn't have a finance background, my co-founders didn't, and we didn't hire anyone who worked in finance until we reached 25 employees," Dorsey said recently. "You fail and you get back up. That's part of doing anything that people find to be revolutionary or important. You'll have tons of people saying, 'No, you can't do this,' but you do it again, anyway, and you don't let them stop you."



  • Relevance is the only job security that exists in today's uncertain business world.

    We live in a time of vast and uneasy change, where economic, social and political turmoil has become the rule, rather than the exception. Nowhere is this clearer than in the world of business.

    The tsunami of change is hitting everyone:

    • Gen-Y unemployment is approaching a staggering 25 percent, according to the Wall Street Journal.
    • Gen-X is "on track to be the first generation to do worse in retirement than their parents," according to NPR.
    • Baby boomers are more likely to remain unemployed if they lose their jobs, according to the AARP.

    Everyone seems lost and unmoored in a world where promises of the past--a stable job, a clear career path, a comfortable retirement--have become impossible dreams.

    Not everyone, however, is caught in this miasma of helplessness. Many people--regardless of their age--are rising to the occasion, creating and renewing their role in a shifting world, according to Philip Styrlund, CEO of the Summit Group and Tom Hayes, founder of the ad firm Riley Hayes.

    Their secret? They've figured out how to be relevant.

    The Meaning of Relevance

    The Oxford English Dictionary defines "relevance" as "the state of being closely connected or appropriate to the matter in hand." To be relevant is thus to be important, but the term implies more than that.

    Trivial things--appointments, events, accidents--that intrude themselves into life can easily become "important," at least for a time. To be relevant, an action or person must be connected to a larger scheme, a grander plan--the ultimate "matter in hand."

    In the business world, to be relevant means being an integral part of your organization, of your company, of the economy, and of the future. It means being the kind of person on whom others depend, whether for leadership, expertise, acumen, or emotional support.

    Put another way, being relevant means never worrying about losing a job or being able to find another. Because you are valued. Because you are relevant.

    Styrlund and Hayes are working on a book (I helped with the book proposal, but am not involved in the project now) that provides a "recipe for relevance." Here it is:

    1. Be More Authentic

    Being authentic entails knowing who you are at the deepest level, "being" that person in your internal thought processes, and finally appearing to others as you are, without pretense or phoniness. Authenticity is the foundation of relevance because if you don't understand who you are, and where you're "coming from, you can't possibly lead or influence others."

    You achieve authenticity through a rigorous inventory of your strengths and a systematic mapping of the moments in your life when you've been both highly effective and extremely satisfied. When put into practice, authenticity allows you to "be real" and "in the moment," to effortlessly practice the fine art of listening, and to have the courage to speak the truth, without "signing up" for how you think others might perceive you.

    2. Achieve More Mastery

    Mastery is essential because, if you have no useful skills, you cannot be useful to others. Mastery goes beyond mere competence and skills. It means approaching one's life and relationships as an act of creation, rather than a reaction to people and events. It means approaching lifelong learning with a sense of fun that adds pleasure and energy to the tasks at hand. It means expanding your principles and practices so that they serve a greater purpose.

    You achieve mastery through a process of continuous improvement of your talents and abilities, combined with a life model that stresses the importance of both the professional and the personal. Developing mastery requires the ability to put first things first, to take action before it is forced upon you, and to stay mindful while taking action. This requires a clear view of reality, a willingness to get beyond deeply rooted beliefs, awareness of your subconscious desires, and a commitment to truth.

    3. Be More Empathetic

    Empathy is the capacity to recognize and, to some extent, share feelings (such as sadness or happiness) being experienced by another being. It is the source of compassion, caring for other people, and the desire to help. It means the ability to experience the same emotions that another is feeling, without unnecessary judgment. Empathy creates relevance because it creates the deep connection that brings people together.

    In business, there are three levels of empathy. The first is "on-demand" empathy, which is the ability to sense what customers want. The second is "solution" empathy, which entails understanding a customer's problem and figuring out how to address it. The third is "transcendent" empathy where you create solutions to problems that customers don't even know that they have.

    4. Take More Action

    It is your actions, ultimately, that make you relevant to others. All the authenticity, mastery and empathy in the world remain sterile, until and unless put into motion. It is through action that you change yourself and change the world. Without action, even a great and brilliant mind and soul remains entirely irrelevant.

    Action has four elements: impetus, vector, acceleration and velocity. Impetus determines whether you consider the action important enough to take. Vector is the direction your action takes you: either towards your goals or away from it. Acceleration reflect your level of commitment and how much action you're willing to take. Velocity is the energy that carries you forward, even when you're not fully aware of it.

    IMHO, Styrlund and Hayes are onto something big, so I'll keep you posted as their book moves forward.

    Like this post? If so, sign up for the free Sales Source newsletter.



  • Vishal Sankhla, the founder of a VC-backed start-up in Silicon Valley, explains what it feels like to have his visa status hang in the balance of the current immigration debate.

    Over the next several weeks, the Senate is set to debate immigration reform legislation.

    Some following the debate will be trying to divine the future ambitions of various Republicans or the general direction of the recently troubled party, others will argue the economic and demographic impact of reform. But in his office in San Mateo, California, Vishal Sankhla will watch closely for other reasons.

    His professional and personal life both hang in the balance.

    A U.S.-trained engineer originally from India, Sankhla was employed on a H1b visa when he got the idea for Viralheat, the social media start-up he has since co-founded.

    "In late 2008, I got together with [his co-founder] Raj and we started toying around with ideas. That’s when we came up with the idea. I was itching to start my own company and my only option was to either stick with Cisco till I get my Green card, which could take several years, or take a risk and start Viralheat. I decided to take the risk," he explained to Inc. in an email.

    In some ways that’s a gamble that paid off. The company has 17 employees and is planning to add more, and has also managed to raise $4.25 million in Series A funding. By just about every standard that’s a promising beginning for a start-up and a plus for our job-hungry economy. But Sankla’s success hasn’t been enough to win him a stable immigration status. After spending a year applying for a Green card, he was denied. Now he says he is applying through another category, but the uncertainty has an outsized impact on his business.

    "I was on an H1b visa that made it impossible for me to join my own company that I had founded. I was lucky to have a co-founder who was a US citizen to even be able to explore this opportunity and get the company to where we are today," Sankhla says. The current immigration system affects his start-up in other ways too.

    "We also have employees who are on H1b visas, so we have to spend a lot of time, resources and energy on their immigration paperwork. Being a small company we do not have full-time HR resources who focus on this, so it ends up taking my precious time away in making sure everything is going smoothly," he says.

    All of which sounds like a nightmare for any growing business, but Sankhla notes that his immigration struggles have taken a personal toll as well. "It became very tedious to travel outside the country. Every time I travelled, I had to get a stamping done in India. The stamping process takes up a lot of time in terms of collecting all the immigration paperwork, employment paperwork, employment verification, pay-stubs. A lot of people end up getting stuck in their countries. The process never ends, you are always worried. Your immigration status becomes your number one source of stress," he reports.

    And immigration challenges have affected other members of his family as well: "My wife is currently with Netflix on an H1b visa and her Green card is stuck Perm. audit so basically we are still quite far from getting a Green card done. Also, I worry about my mom. She has a visitor's visa that allows her to stay for up to six months in the U.S. after which she has to travel back to India. It becomes harder and harder for us to stay together, especially as she grows older."

    Unsurprisingly, Sankhla has joined efforts to get immigration reform through Congress and is watching the debate closely. He’s optimistic, he says, but nervous.

    "I worry because the debate is still largely focused on whether to create a path to citizenship for low-skilled, undocumented workers or illegal immigrants. The issues of legal immigrants go largely unnoticed and our issues are bundled tightly, so any delays around the former provision, also ends up delaying issues for people like me."

    What’s he hoping for? A higher number of H1b visas, so that employers can access talent from abroad and "an easy way for people to apply and get their Green cards in a reasonable amount of time and a clear and timely pathway to US citizenship."

    As a business owner, you can keep Sankla and his family in mind as the immigration debate unfolds in the coming weeks for humanitarian reasons, but he makes a far more hard-nosed business case for fellow entrepreneurs to get involved in the conversation.

    "We need to recognize that and double down on entrepreneurs, because other nations are figuring this out. There is a billboard up on the freeway here inviting people having immigration issues to Canada. In the end, if US cannot attract, engage and retain top talent, it will be left behind."

    Are you following the progress of immigration reform? What are you hoping to see come out of the process?



  • At Bloomberg's Next Big Thing conference, industry thinkers talked about what they think will be the wave(s) of the future. Do you agree?

    What's the next biggest thing in technology? Depends on who you ask.

    A number of industry thinkers and innovators did some crystal ball-gazing Monday at Bloomberg's Next Big Thing conference held in Half Moon Bay, California.

    Here's a round-up of some of their more interesting predictions.

    1. Bitcoin. Tim Draper, managing director of VC firm Draper Fisher Jurvetson, initially tried to wriggle out of pinpointing one specific big thing but when pressed he said without hesitation, "Bitcoin," the digital currency platform. "I like when our government is challenged by the private sector."

    2. Devices that understand who we are as people. This was one a number of speakers mentioned. The more jargon-laced term for the idea is "contextually aware systems" and it refers to devices that detect where you are and what you want next, before you need to ask. So, for example, think of your car doing more than simply getting you from point a to point b. Imagine a car that not only gives you directions but takes you through the process of parking your car by identifying the location of parking spots and then delivering you to your ultimate address by anticipating what you'll encounter along the few blocks you'll walk.

    Draper, too, liked this idea--although his ideal device, he suggested, might be a wristband that detect your low blood sugar and then signals a nearby drone to drop off a pizza. "You get a pizza before you even know you want one!"

    But these "devices" in the end may not be devices at all. "You shouldn't need a device to tell you if your glucose is too high," said Intel CTO Justin Rattner. "Your clothes should tell you."

    3. You'll know about important news before you need to look for it. Already feel like you get too many alerts on your phone? Prepare for a few more. Michael Sippey, VP of product at Twitter, mentioned the company is testing a new service that will direct message you if suddenly a bunch of people you follow all decide to follow the same person. This sort of activity could indicate a news event that you might want to know about. So Twitter wouldn't wait for you to find about it in your newsfeed; it might just buzz your phone so that you're the first to know.

    4. The sharing economy is the auto industry's next design challenge. Kevin Hunter, president of Calty Design Research at Toyota, addressed the elephant in the room-- at least in the car industry. Car-sharing start-ups like Lyft, Uber, and Zipcar have introduced a new challenge for automakers.

    Never mind that these services may very well take more cars off the road; they may also change how they're designed. Up until now, cars have been personal machines designed specifically for the owner of the vehicle and, say, her family. But how do you design a car for an ever-changing group of drivers, rather than one person? What they look like, arguably, matters less, while their functionality matters a lot more. Toyota doesn't necessarily have the answer--at least not one Hunter was willing to share--but it will have to think about it soon.

    5. Data privacy is key--but it doesn't have to scare people. It's not terribly surprising to go to a tech conference and find yourself swimming in a strong current of optimism. Technology folks tend to equate the future with progress and see entrepreneurs as the bearers of this progress. Even so, a handful of speakers, including SRI Ventures VP Norman Winarsky, raised the possibility of one area in particular that won't necessarily improve with time: consumers' problems with their own data and privacy may get worse.

    But, not surprisingly, the optimists in the room see the situation differently. Rattner of Intel sees a "data economy" in the future. In other words, data privacy will still be very important, but "people will control their own personal data." They'll take ownership over it and even sell it to marketing companies to make a profit on the side.

    What do you think? What are your predictions?



  • What's holding you back? Rob Ashkenas, managing partner of Shaffer Consulting, points out the root of the problem, and smart ways to fix it.

    Slowdowns are inevitable, but to get through those slumps, you've got to know what's behind them, says Ron Ashkenas, managing partner of Shaffer Consulting, in The Harvard Business Review.

    Here are three signs you've been stunted:

    The law of large numbers. "As a company gets bigger, each percentage of incremental revenue suddenly represents a fundamentally larger number," says Ashkenas. There's also more pressure on the sales team to find new markets, categories, and geographies.

    Market maturity. As a market moves through its life cycle, it becomes more crowded, prices stabilize, and the opportunity to grow through price increases, well, decreases. When a market gets saturated, it becomes that much harder to lure away buyers who are loyal to particular brands.

    Psychological self-protection. Innovation is hard. So it's no suprise that rather than take a risk with a new product, many companies succumb to the pressure to preserve the base business and focus on "adapting existing products and services," says Ashkenas. Sadly, playing it safe leaves the door wide open for disruptive competitors.

    There are two ways to keep up the growth, he continues:

    Regularly re-examine your business model. "Don't limit your innovation and research to the development of new products and services, but also focus on the possibility of new business models," says Ashkenas.

    Next, consider downsizing. Are all your products producing sufficient returns? Would you be better off shedding some customers? Acting on the answers "can liberate you and your resources to focus on new opportunities and will lead to more growth in the long term," he says.


  • Stanford University.

    Are you a technical founder? Regardless, take "Startup Engineering," Stanford's now-available free online course.

    Today Stanford is launching "Startup Engineering," a free online course through Coursera.

    According to the professors, you need to commit just two to 20 hours per week for 10 weeks to complete the class. And if you pass, you'll receive a nifty little certificate.

    It's not surprising that Stanford would offer a class geared towards future entrepreneurs. It's a school known for entrepreneurship, and it already offers several free online courses meant to help would-be entrepreneurs. Startup Engineering was also offered on its real-world campus this spring.

    But what's notable about Startup Engineering is how the course's professors--a biophysicist and an entrepreneur--focus on the technical side of starting and scaling a company far more than anything else.

    They write, in the website course description:

    The first part of the course will cover modern software engineering principles with a focus on mobile HTML5 development, taught via 5-minute to 10-minute video lectures with in-video quizzes, programming assignments, and multiple-choice questions. Guest lecturers from top Silicon Valley start-ups will bring these concepts to life with real engineering problems from their work.

    In the second part, you will apply these concepts to develop a simple command line application, expose it as a webservice, and then integrate other students' command line apps and webservices together with yours to create an open-source mobile HTML5 app as a final project. Lectures will continue in the second part, but will be focused on the design, marketing, and logistical aspects of creating and scaling a start-up.

    Of course, there's not much in there about the "soft" side of entrepreneurship--hiring the right people, marketing, and company culture, for instance--but that's not really the point of an engineering class.

    But it does indicate just how essential the "software" layer of businesses are becoming for Silicon Valley start-ups.

    In response to criticism about the course's narrow technical focus, Balaji S. Srinivasan, one of the course's professors, wrote on HackerNews:

    It's a good strategy these days to build one's business on top of a software core, with APIs for all major business functions and physical interface layers only when absolutely necessary. That's really the overall principle that I'm trying to communicate, along with examples in practice.

    In other words, entrepreneurs should be thinking about the technical layer of their business from Day 1, and founders that build their businesses with the right technical architecture are best-positioned in the long-run.

    As one former student of the class writes:

    Being able to automate huge parts of your business, regardless of what industry you're in, is a huge advantage. Think about an energy company building APIs to monitor consumption and efficiency at client sites and adjusting their work accordingly--that's huge. This class does a lot more than teach you how to build webapps; it teaches you to think in an automation mindset and happens to teach you a lot of useful skills along the way.



  • You can't beat the nightlife or business opportunities, said Michael Bloomberg during his Stanford commencement speech Sunday. Translation: Silicon Alley should be the next tech hub.

    New York City mayor Michael Bloomberg believes in Silicon Alley so much, he wouldn't be surprised if Stanford graduates started moving there.

    “I believe that more and more Stanford graduates will find themselves moving to Silicon Alley, not only because we’re the hottest new tech scene in the country, but also because there’s more to do on a Friday night than go to the Pizza Hut in Sunnyvale,” he said during his Stanford commencement speech Sunday.

    "Leland Stanford, in addition to being an entrepreneur, an elected official, a philanthropist, and a great supporter of higher education, was originally a New Yorker," he added. "No other university in the world has so profoundly shaped our modern age. Without Stanford, there's no Silicon Valley, and without SV, there's no tech revolution, no information revolution, no communications revolution, at least not as we know it."

    In his apparent bid to lure the techies of Silicon Valley to his city, Bloomberg quipped, "Apparently, every single person here has a great idea for a new startup. I've been here two days, and so far 27 students 14 professors and the checkout guy at Axiom Palmer have approached me about VC funding."

    The mayor's dream of turning the Big Apple into the next tech mecca might not so be far-fetched. Yahoo CEO Marissa Mayer recently bought Tumblr for a cool $1.1 billion, which prompted many in the New York tech sector like John Borthwick, CEO of Betaworks, to tell GigaOm this type of social media sale "helps solidify and legitimize the entire New York startup ecosystem."

    Or as Ken Lerer, the New Yorker behind Lerer Ventures, put it, "If you stand on Broadway and look above 34th street, you can see the media of the past. Look down the Broadway, you see the future."

    Do you agree with Bloomberg that Silicon Valley's finest should move to New York?



  • More than 80 percent of manufacturers see health care costs as their top business concern

    Another day, another survey about Obamacare.

    About a week ago, we reported on a survey of hiring among small- and medium-sized businesses, which found the Affordable Care Act to be only a minor factor in determining the number, and type, of employees on their payroll. [http://www.inc.com/Adam-Bluestein/Obamacare-hiring.html] Apparently, few of those survey respondents were manufacturers-;who are viewing the approaching implementation of Obamacare with dread.

    Among the 317 companies who participated in the National Association of Manufacturers/Industry Week Q2 Survey, 82.2 percent said that “rising health care/insurance costs” was their top business concern-;ahead of taxes and regulations, uncertainties about the political climate (each cited by 66.9 percent of respondents), and well ahead of worries about weaker domestic and foreign sales of their products (cited by 50 percent and 27 percent, respectively).

    Health-care anxiety is up from last quarter’s survey, when 74 percent of respondents listed insurance costs as a top concern. “Even in three months, it’s ticked up in a way that’s statistically relevant,” says Joe Trauger, NAM’s vice president of human-resources policy. “It’s having an impact on how they’re conducting business-;trying to decide whether to decide additional people and making other long-term planning decisions.”

    Ninety-nine percent of manufacturers surveyed already offer health benefits to their employees. So their big concern isn’t about having paying a bunch of new premiums, but rather seeing their existing premiums go up even more than they already have-;8.5 percent on average in each of the past two years. The respondents anticipate an average premium increase of 14 percent in 2014, but that’s an estimate: While some companies have already started negotiating next year’s rates, many are simply guessing guess based on past experience and their internal utilization data. “I think the larger message here,” says Trauger, “is that no one is expecting rates to go down. Everyone expects moderate to significant increases.”

    The certainty about which way premiums are headed is countered by confusion about almost everything else having to do with Obamacare: About 56 percent of those surveyed said they were either not prepared or uncertain about how they planned to implement the ACA at the beginning of 2014. And more than 41 percent said they were uncertain if their business would participate in a health insurance exchange.

    Kvetching about health-care and politics aside, 51.6 percent of manufacturers surveyed expected their payrolls to hold steady, and more than twice as many companies expected to add full-timers (32.5 percent) than to cut them (15.9 percent).

    Check out the survey here: http://www.industryweek.com/global-economy/namindustryweek-2013-q2-survey-outlook-positive-face-mediocre-growth


  • Chris Poole

    Even Chris Poole, who founded the 4chan online community when he was 15, says he hasn't a clue what teens do online today.

    When Chris Poole created 4chan, an image-centric forum site, he was just 15 years old. Today, he's 25--and admits he's already out of touch with what young people are doing online these days.

    In recent years, while 4chan became a birthplace for popular memes that draws 25 million unique monthly views, Poole has become a prominent free-speech advocate, founded a different venture-backed drawing-and-image site, and taken on a role at a New York-based VC firm--all very grown up occupations. On Friday he shed perhaps his last vestige of the enfant terrible years: He claimed to be out of touch with kids these days.

    Here's what happened when The Next Web's Harrison Weber asked Pool during the Northside Festival in Brooklyn where teenagers go online these days:

    Poole: I don't fucking know!

    Weber: [Laughs] My sister knew about Snapchat before me. I bring her up because she's 16, in high school, and a pretty typical teenager. And I write about technology professionally.

    Poole: Dude, tell your parents.

    At this point Weber mumbled something mock-defensively about his little sister not sexting (obviously), and the conversation diverted into the significance of privacy via anonymity online--and whether that's even possible anymore.

    Poole's indoctrination into the Internet was in the '90s, when you dialed up on modems, and "browsing" was the trickiest part of navigating what was unironically dubbed the information superhighway.

    "For a lot of people, myself included, AOL was the training wheels for the Internet. It was structured around keywords and chat rooms, and buddy lists," Poole said.

    It's that chat-room style of interactive anonymity that helped inspire 4chan. Built on a series of continuous message boards, the site is filled with user-generated content that's ephemeral, and never becomes a permanent record. Most boards are limited to roughly a dozen pages, so content is usually available for only a few hours or days before it is removed. Also, 4chan's users are anonymous with un-verified identities: Poole was known on 4chan as "moot," and the most popular identity there is "Anonymous".

    That's one way Poole may still understand young people.

    "Being able to put yourself out there and take risks and be vulnerable without it coming back to haunt you is really powerful," Poole said.



  • Are you a crocodile salesperson? Do you sell and tell? Here's a better approach to identifying a sales prospect's problems.

    In my first enterprise software company, we developed a sales methodology that we called PUCCKA. The point was to develop a common methodology to make sure our whole team approaches sales with the same mindset and to give us a language to talk with each other about our prospects. Having a methodology, instead of just going on random sales visits, helped force a bit of rigor and honesty among team members in terms of how well--or poorly--we thought we were doing.

    This post is about the Pain aspect of our methodology, as in, “Have you identified your customer's pain point yet?” Pain is a reminder that unless your prospect has a need to solve a problem, they are not going to buy a product. Customers sometimes buy things spontaneously without thinking through what they actually need. But, often, there is an underlying reason for a purchase, even if the buyer doesn’t bring it to the surface.

    For instance, between the years of 2010 and 2012, every brand out there seemed to be buying Facebook "Likes." In truth, many companies had no idea why they actually needed Facebook Likes. But there was still a pain point. The pain was that somebody senior in the organization had read about the importance of Facebook for business and had begun asking loud questions about why the organization didn't have a strong Facebook presence. That is still "pain." It's a reason a company would buy something, even if a boss is a dolt with no economic rationale for what he is asking to be achieved. Just watch Mad Men and you'll see what I mean.

    So how do you identify a pain point? Rule number one: Don't be a crocodile. Too many sales reps use what I refer to as a "tell and sell" approach. They walk into customer meetings with pre-canned sales decks and proudly squawk through 30 of their favorite slides without engaging the customer in a discussion. I call them crocodile salespeople, because they have small ears and big mouths. The reason they tell and sell is that it’s far easier to go through talking points you’ve regurgitated 100 times than to engage the customer in a dialog about their business challenges. Crocodiles might leave meetings feeling great about themselves, but they come away without any further knowledge of the customer's “pain.”

    I’ve also seen sales reps go to the opposite extreme, walking into a meeting and spouting out, “So, tell us what’s not working in your manufacturing process!” I hate when people do this to me. My first thought is, “You asked for the meeting--why am I going to give you a bunch of ammunition to sell to me?”

    So where's the happy medium? The best sales meetings are discussions. The goal is to get customers speaking about their organizations. And the best way to do so is by asking open-ended questions. There is an art to teasing out pain points. I recommend starting with a brief overview of you, your company, and your solution. And by brief, I mean BRIEF! You’d be amazed at how long some people rattle on about their life stories in an introduction. Nobody wants to hear your life story other than your mom.

    After the overview, I recommend offering up some examples of clients you’ve worked with (you obviously need their approval first). These references make for great discussions with customers. If you have enough references in your arsenal, you obviously want to pick out ones that you believe will resonate with your prospect due to job function or industry.

    And then there’s the key transition slide, which I call “What We Find” (WWF). WWF gives you the ability to tease out the problem having just shown similar cases where customers have this problem. For example: “What we find is that many of our customers have been accumulating Facebook Likes, because they thought they were supposed to. Now they have a few thousand Likes, but haven’t been able to figure out whether this is improving their bottom line. They don’t have a way to measure the effectiveness of a Like.” Then, use that as a seque to ask your prospect if they have the same problem: “Do you see that at all inside your department? Have you found a way to best link your potential marketing leads in social media into activity that leads to more business?”

    This approach is often successful. When you have a real business disussion about a pain point, rather than simply pitching your solution, prospects are more likely to open up about their own problems. Even if they debate whether the problem is real, you’re having a much better meeting then just flipping through slides. If they’re going to take the time, energy, and logic to try and debate with you, it's must better if they’re at least engaged.

    Another point to keep in mind: People prefer to hear themselves speak rather than to listen to you. It’s just human nature. Your job is to tease out as many discrete pain points that are near enough to your solution set as possible. Then, you can begin talking about what it is that you do. Write down the customer pain points so you don't forget them and ask questions the whole time. The best form of sales is “active listening,” when you’re engaged in what the customer is telling you.

    And please resist the temptation to cut off the customer with a story of your own. ("I heard you, but now let ME tell you this great story I have.") Most people naturally do this at cocktail parties, but it's not a good idea in sales meetings. When you cut off customers with your stories, you lose valuable insights that might be exposing more pain points. Show your knowledge and charm through great questions, not great anecdotes. Frankly if you can’t sit with prospects and tease out pain points then you ought to be working in a different department than sales or executive leadership.

    Everybody has pain points. If you find out what your prospects' problems are, you’ve answered the question, “Why Buy Anything?” Importantly, once you tease out some problems, you can begin to pivot the meeting to your solution and how it may solve their problem. I'll delve deeper into “Unique Selling Propositions” in my next column.



  • We've got you covered: Here's a rundown of the top events you can watch on the Web.

    Call it a tale of five cities. Unlike previous years, the SBA's National Small Business Week (kicking off today) is being held across the country: in Seattle, Dallas, St. Louis, and Pittsburgh, before wrapping up at the end of the week in Washington.

    Now, you're probably too busy to travel all over the country as if the year were 1975 and the SBA was actually the Grateful Dead. Fortunately, much of the program will be live streamed on the SBA's website, at sba.gov/nsbw.

    You can find the full schedule here, but since you're probably also busy enough that you can't sit in front of your computer watching the whole thing, here's my take on the top 10 things on the agenda:

    1. Seattle Day

    Monday is basically Microsoft Day. The kickoff takes place on the computer giant's campus. Among the highlights are keynote speaker Lee Rhodes, founder of glassybaby (12:15 p.m. Eastern). You'll also find an "armchair interview" with Cindy Bates, vice president of the U.S. Small and Medium Sized Businesses (SMB) organization at Microsoft Corp, the head of the SBA, Karen Mills, and others.

    (Watch it here.)

    2. "Getting Started With Social Media" Google+ Hangout

    Each day at 4 p.m. Eastern, the SBA will host a series of Google+ hangouts, designed to bring together experts and give you a leg up in your business.

    Guess who's hosting the first of them? (Me.) The first panel is on "Getting Started With Social Media." I'll be talking with marketing representatives from Google, the head of small business marketing at Twitter, an expert from Constant Contact, and the managing director of a leading digital marketing strategy firm. (Again, this is Monday at 4 p.m. Eastern.)

    (Watch it here. For the Google+ hangout, you can also tweet questions at @billmurphyjr.)

    3. Dallas Day

    On Tuesday, the program shifts to Dallas. Highlights will include a panel on the region's entrepreneurial ecosystem" and one on growing globally, led by a senior manager at Lockheed Martin.

    In the afternoon, there will be a session on government contracting. It doesn't seem that this will be livestreamed, which is too bad, but you can check out my report from last year's event: 6 Tips for Getting Government Contracts.

    4. "Managing Your Business's Online Reputation" Google+ Hangout

    Rieva Lesonsky, CEO of GrowBiz Media, will moderate an all-star panel on business reputation online. You'll find the head of marketing for the "Get Your Business Online Initiative" at Google, along with representatives from Yelp, LinkedIn, Dun & Bradstreet, and others. I'll definitely be watching--it's at 4 p.m. Eastern, again.

    (Watch it here.)

    5. St. Louis Day

    Your best bet for the third day of the conference, Wednesday, includes a discussion with David Steward, co-founder of St. Louis-based World Wide Technology, Inc, starting at 10:15 a.m. Eastern. (Watch it here.)

    6. "How a Mentor Can Help Your Business" Google+ Hangout
    NFL Hall-of-Famer and entrepreneur Fran Tarkenton will host Wednesday's hangout event, on coaching and mentorship. It starts at 4 p.m. Eastern. (Watch it here.)

    7. Pittsburgh Day

    There are some interesting sessions planned on certifications and crowdsourcing that you might want to check out if you're in the area, but as far as livestreaming programs, Thursday's events include an introduction to the Pittsburgh entrepreneurship ecosystem, at 9:45 a.m. Eastern.

    (Watch it here.)

    8. "How to Get a Loan for Your Business" Google+ Hangout

    Calvin Goings, an SBA regional administrator, will host this talk on how to get money. (Can you think of anything more interesting?) He'll be talking with an SBA Business Lending Executive at Wells Fargo, the CEO of Ninkasi Brewing Co., which received an SBA loan, and others. It's at 4 p.m. Eastern again.

    (Watch it here.)

    9. D.C. Days

    Washington actually gets two days of events, overlapping with Pittsburgh on Thursday and wrapping things up on Friday. Highlights include Square CEO Jack Dorsey's talk on Thursday evening (7 p.m., livestreamed), and a keynote address by Angie Hicks, founder of Angie's List, on Friday (12 p.m.)

    (Watch it here.)

    10. Small Business Person of the Year

    Finally, you'll find the SBA's Small Business Person of the Year award on Friday. The SBA is extremely tight-lipped about who they'll be honoring in advance of the event. In advance, you might want to check out all 54 "state" nominees, or read up on Victoria Tifft, last year's winner. (Watch it here.)

    (Like this post? Check out Bill's weekly email.)


  • Skip the Gossip

    In many ways, office politics is like a Bureaucratic Disease. Here's the cure. (It also works against workplace bullies and bad bosses, too).

    Some people play political games at work. Not most, but enough to cause serious issues for the rest of us. It seems to be particularly common in government bureaucracies and mature industries, but you'll find it in any company where management is clueless, employees aren't held accountable, and it takes an act of God to fire someone.

    This is probably a mischaracterization, but I've always seen office politics as something of a disease--a bureaucratic disease. Here's how to fight it, from the CBDC (Center for Bureaucratic Disease Control):

    Symptoms

    Symptoms of Bureaucratic Disease include backstabbing, torpedoing, manipulating, controlling, grandstanding, finger pointing, power grabbing, sugar coating, idea stealing, and passive aggressive behavior.

    Pathology

    The pathology of this particularly insidious disease tends to follow a common pattern: Avoiding anything remotely associated with actual work, taking as much undeserved credit for success as possible, and ensuring that someone else takes the blame when things go terribly wrong, as they inevitably do.

    What to do if you're exposed

    Close and repeated contact with someone infected with the disease is not advised as it can cause dangerous levels of stress and anxiety. In some cases, it has been known to cause bouts of depression and burnout. In rare instances of chronic contact, some victims have actually been seen to "fall apart at the seams."

    If you have an infected coworker and are exhibiting some of the above signs, you are advised to seek immediate treatment.

    Course of treatment

    1. Take a long hard look in the mirror. Not to blame the victim here, but in many cases, the person reporting the disease in someone else is actually the one who was initially infected. "Reacting in kind" can actually be a defense mechanism employed by the other person's bureaucratic autoimmune system. If that diagnosis is found to be false, proceed to Step 2.

    2. Self medicate and wait. Studies have found "waiting" to be an effective strategy. There's an old Japanese proverb that goes something like this, "If you stand by the river long enough, you'll see the body of your enemy float by." No, it's not some sort of hokey holistic cure; it really works because the disease tends to cause infected individuals to eventually self-destruct.

    If, on the other hand, your signs are becoming severe, discontinue this treatment at once and proceed to Step 3.

    3. Quit and try your luck elsewhere. Although the disease has a widely variable and potentially long range, it quickly loses its potency once you leave the proximity of the organization or company. Once you're safely out of range, the effects of the disease should subside precipitously.

    While this is the only cure that's known to be 100 percent effective, it does have some potentially severe side effects, including loss of income, feelings of failure, and diminished pride. Our advice: get over it and move on.

    Homegrown remedies

    Taking the problem to human resources or management will rarely result in a positive outcome. That course of action has far more frequently resulted in 1) nothing, 2) the victim being labeled a troublemaker, or 3) both victim and infected coworker getting fired.

    Under NO circumstances should you try to reason or go head-to-head with the infected individuals. Once the disease has reached the pathological stage, those infected are more or less beyond help or hope. Engaging them will only serve to reinforce and embolden their behavior. It's their game and their rules; you will be no match for their deranged and psychopathic manipulations.

    Similar diseases

    While the pathology is different, the same course of treatment has been found to be effective in the event of repeated contact with workplace bullies and dysfunctional bosses.

    Small print: Don't let the comedic tone fool you. The advice is absolutely genuine. No joking.



  • The interview coach of the future is here, and it goes by the name of MACH. Developed by MIT, the computer software tells you exactly where you need to improve just by hearing the sound of your voice.

    We've all been there: Your ideas are fresh and your team is top-notch, but you still aren't attracting investors.

    Perhaps it's time to brush up on your interview skills.

    The Automated Conversation coacH (nicknamed MACH) might be able to help. Developed by the Massachusetts Institute of Technology, the robot functions as a career coach, giving mock interviews while monitoring facial expressions and prosody (speech pattern and intonation) to see where participants need to improve. Such feedback might include the number of times an interviewer paused or turned to crutch phrases like "you know."

    Shortly after MACH was designed, researchers tested it on 90 students. After lumping them in three groups--one that watched a taped interview, another that used MACH and watched a taped interview, and a third that received feedback from MACH, the video, and an interview coach--they found the latter group made the most strides.

    Soon small business owners will be able to reap the same benefits via desktop--all they'll need is a camera and microphone. MACH's software will arrive on mobile platforms shortly.

    Beyond pinpointing areas in need of improvement, MACH can help entrepreneurs gain an edge over the competition. It'll do so by gauging reactions to interviewers of the opposite sex and see how they fare when asked certain questions. Eventually MACH will analyze sentiment and how well a respondent explained a topic.

    Watch the video below to see it in action:

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    Mark Verge will be speaking at Santa Anita Race Track; this will be our first monthly

    meeting with different speakers each month to help inspire your entrepreneur spirit.

     June 2, 2012

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    E-mail RSVP | info@perfectbusiness.com or call 310-255-7940

    Perfect Business is founded by serial entrepreneur Mark Verge, whose vision is to share his business knowledge with entrepreneurs who may be just starting out, as well as seasoned business owners who may be struggling in today’s challenging economy. As part of the Perfect Business mission, Mark actively volunteers his time performing speaking engagements for high school and university students.