Recent Business News...


  • Job-hopping might ruffle a corporation's feathers, but employers need to accept it's a way of life.

    Millennials have disrupted the labor market, making it acceptable to job hop and complete "tours of duty" until a better offer comes along.

    In the process, company loyalty has become a thing of the past, and everyone needs to accept it, say Chris Yeh and Ben Casnocha in the Harvard Business Review.

    We can no longer believe in "this idea that people would go to college, study hard, get a degree, land an entry-level job at a big, stable company." Nor can we believe in the old 20th century compact of employees slowly working their way up the ladder.

    The modern compact is based on alliance.

    "The employer is saying, 'Hey, make my company more valuable, and I'll make you more valuable,'" say the authors. "Even if this is not a relationship that's going to last for an entire lifetime, this is a relationship that is going to be beneficial to both of us during the time it exists and even afterwards."

    With loyalty no longer a part of the equation, being an employee in the modern workplace isn't all that different from being an entrepreneur. Uncertainty and volatility is part of the game. There's no guarantee of a promotion or pay raise.

    In a way, that's a good thing.

    "If someone can't be entrepreneurial in their own career, if someone's unwilling to take risks in their career, if someone's not keen on remaining agile and adaptive in their own career, how could you possibly expect them to bring to bear those strengths, those traits at your company?" say the authors.

    To attract and retain the best employees, companies should be more proactive and willing to invest in their workers' future. What's more, they should take a chance on someone who's willing to hustle to get ahead.

    Ask not what you can do for your bottom line, say the authors, but what you can do for your employee.



  • Inc. Magazine's June issue launches a new, more visual design and a new, more logical navigation. Plus, there's a new way to experience Inc. beyond the page.



  • Blogger and career coach Penelope Trunk gives her spin on Eleanor Roosevelt's classic advice to do one thing every day that scares you.

    Do one thing every day that scares you; that was Eleanor Roosevelt's advice. The idea being that the more you venture outside your comfort zone, the more you will learn and grow from the unexpected.

    In a recent post, blogger and career coach Penelope Trunk outlines the merits of putting yourself in uncomfortable situations when it comes to your career. Her best advice for stretching the confines of your professional safety net? Work with people you don't like.

    Here are three great reasons to make your collaborators people who scare you (at least a little bit).

    Great minds don't think alike.

    You hear this all the time, right? Partner with people who supplement your skills and perspective. Hiring or collaborating with people who think like you will only guarentee that you have more of the ideas and thoughts that you were naturally inclined to generate. Instead of hiring more people who are good at what you are good at, Trunk writes, consider hiring those with a completely new skill set and perspective.

    "This means that if you’re good with people, you need to work with someone who is terrible with people. If you’re good with numbers, you should work with someone who is terrible with numbers," she writes.

    Homogeneity is the opposite of innovation.

    In addition to surrounding yourself with employees and collaborators who compliment your skills, writes Trunk, you have to give them the freedom and tools to do what they're meant to: Rock the boat.

    "One of my most successful attempts at being an employee was when I worked for a CEO who was a frat boy. He was still wearing his fraternity sweatshirts 10 years out of college," writes Trunk. But he gave her the freedom and tools to fill the role of "intellect in the company" she explains--and that kind of embrace of alternative viewpoints is exactly what good bosses do.

    "They needed me a lot because my way of thinking was so different from theirs. Most of the great ideas we came up with were a combination of my ability to see the big picture and their ability to make my ideas fun and saleable," Trunk writes.

    People fear what they don't understand.

    Don't shy away from risky hires, Trunk advises. This doesn't mean hiring someone totally unqualified for the position, just giving stereotypically scary groups--like Millennials--the benefit of the doubt. Or hiring talented people from surprising backgrounds.

    "I was coaching this woman who is a court reporter, but the court reporter business is going to India and she doesn’t know what to do. Of course, I hired her to write while I dictate blog posts," writes Trunk. She explains that this hiring risk led to some personal risks in the way she blogs--and ultimately a better product.

    "I would never have dreamed of hiring a court reporter, but when you pair yourself with someone you never dreamed of pairing yourself with, you do things that you never dreamed you were able to do," she writes. "She can write so fast that we can actually get five posts done in one hour, but only if I’m focused. So what ends up happening is I get really nervous before our scheduled call. I have to prepare, and it means I have to commit to posts that I think I’m going to write, but maybe I don’t want to write."



  • Kick off Memorial Day weekend with these inspiring nuggets of wisdom from real entrepreneurs.

    Want to know what it takes to be successful and make a difference? Today, we're introducing a weekly roundup of quotes that addresses those issues and more. Only a real entrepreneur knows what it takes to succeed, so we've scoured the news, Twitter, and Facebook to bring you the best bits of wisdom. Tune in next week for a fresh batch of quotes, and be sure to share yours in the comments.

    "Successful adults often worked when they were young. They mowed lawns, baby-sat, or had a lemonade stand. "Learning how to work hard, provide good customer service, overcome challenges, ask for the sale, and understand the value of a dollar are invaluable life lessons that kids simply can't get from a textbook."

    "Today, if we're all putting our best foot forward professionally, no one cares whether or not that foot is clad in shiny leather wingtips."

    "Don't plan forever and build the perfect machine. Listen to customers, all good comes from that."

    "The problem with the 'follow your passion' chorus is that we can't all love the products we work with. "Someone has to do the jobs and sell the things that don't seem sexy, but make the world go round."

    "Capitalism is about options, so shouldn't people have the option to start a social business or a profit maximizing business or both? "You have to use your creative power to make it happen. Nothing is beyond the capacity of human beings. "Every time I see a problem I think, 'How do I create a business to solve the problem?'"



  • Employees will always resist change unless they believe the company's survival is literally at stake. Here's how to make it clear to them that it is.

    There is no list quite as sobering to an entrepreneur as a list of the most promising young companies of two decades ago--most of which, you can be quite sure, don’t exist any more.

    The fact is, as entrepreneurs, you stand on the edge of a burning platform: You have to keep moving to survive. Your ability to define the potentially fatal issues you face and separate them from the routine challenges of the day is your first step in galvanizing your employees to believe in your vision and strategy.

    This is a reality of human nature: Most people will change only when anxiety over their very survival outweighs their resistance to learning something new. While employees like the excitement of a challenge, they also like to be comfortable in their work. In a faceoff, comfort usually wins. This is where survival anxiety comes into play; it drives home the painful realization that in order to succeed, you and your employees often have to make themselves uncomfortable.

    The key to doing that is not to instill fear, but rather to frame serious threats in honest and real terms that employees can relate to. Before his company’s remarkable recent turnaround, Starbucks CEO Howard Schultz’s sent a jarring 800-word e-mail to all Starbucks employees in which he claimed his company was losing the “romance and theatre” so core to its defining DNA. In short, he said, the company’s drive for growth was diluting its brand, and it was time to get back to the artistry of making coffee--for only such care and skill would allow them to deserve the premium they charged on their goods.

    At the core of this idea is helping your people understand “why” your company does what it does. If you want to stress safety, for instance, don’t just concentrate on the tasks; instead remind your team that if they tie off their ladders and wear their hard hats it will help them go home to their families every night. Engage their pride and sense of responsibility by reminding them that junior workers are looking to them as examples.

    Great leaders translate the ethereal concept of a business mission into day-to-day priorities for their people. They motivate the team by reminding them that they are building a better future and by providing the clear goals, values, and expectations associated with their role. When it works, your employees respond by focusing their energies on the tasks with the most impact.

    No matter the size of your team or the challenges you face, it is your job as a leader to help your team understand why it’s not acceptable to remain where you are. You have to move them toward a better future, and reassure them that it’s safe to do so--in fact, it’s much safer to move than not to.

    Chester Elton will be a speaker at this year's Inc. Leadership Forum. This article was co-authored by Adrian Gostick



  • Passion is great, but only when it applies to how you're working and who it will help, says Matt Linderman.

    Inventing the next big thing isn't always about passion.

    Sometimes it's about the non-romantic things that need an upgrade, writes Matt Linderman in a blog post for 37 Signals. Linderman is the creator of Vooza, a weekly web-video comic strip about the start-up world.

    "The problem with the 'follow your passion' chorus," he says, is that "we can't all love the products we work with. Someone has to do the jobs and sell the things that don’t seem sexy, but make the world go round.

    "Instead of working with a thing you love, think about how to work in a way you love."

    In other words, find meaning in what you're doing--and helping your customers.

    "Get joy from making a customer's day," he urges. "Surround yourself with the kind of people and environment that keep you engaged."

    He adds, "It might not be the romantic idea of 'passion,' but if it provides you with sustainable joy and profit that you can count on, you’ll still be way ahead of the curve--and have extra resources and free time to spend doing whatever you want."



  • When you're the boss, there are going to many times when you've gotta put on your "game face" because your energy affects everyone and everything.

    Have you ever considered how your energy affects everyone around you? Think about it from the vantage of being the CEO of a company. When you walk in the door, all eyes are on you and your employees' antennae are up looking for any sign of something being not quite right. No pressure, eh?

    When you're the boss, there are going to be many times when you've gotta put on your "game face" because your energy affects everyone and everything.

    In the last 12 years at my online marketing company, VerticalResponse, I've had some leaders with great energy, and some that could suck the life out of the Energizer Bunny. Whether you're the CEO or a manager leading a team, here are some pointers to make sure you bring your can-do attitude because if you don't, your team won't, either.

    All Eyes Are On You

    Like I said, even a casual walk around the office can put people in a tizzy if you're giving off bad vibes and exuding a "stay the 'f' away from me because I'm having a real sh*& day" attitude. You might not be aware of it, but like a dog with a bone, your team has a laser-like focus to detect this stuff and they'll either call you on it or--most likely--just talk amongst themselves.

    The same goes for bad-mouthing other executives or team members. Don't poison your own well. Your employees have to work for--and with--these folks, so if you've got a beef with someone, keep it under wraps or between yourself and the person.

    Are You Excited?

    Are you genuinely excited about the products and services your company offers? Do you love your customers? Do you love what you do every day?

    I'm one of those people who can answer yes to each of those questions, but not everyone can. So do you fake it till you make it? Because, trust you me, if you're not living and breathing it every day, your team knows it and it can leach the lifeblood out of them. The energy and enthusiasm you generate and breathe into your company can breed and multiply a thousand times over. You've gotta be shakin' those pom-poms all the way to your corner office. And you've gotta mean it.

    You (Really) Care

    I had a VP of marketing once that just didn't have it in his DNA to lead our team. At the end of the day, he was a super-smart guy and totally got the business side, but when it came to his people? Fail. Why? Because he just didn't care. And his team could tell.

    For example, when he came to work in the morning, he would walk right past a number of his direct reports' desks without making eye contact or saying a "hello." A number of them mentioned to me that it felt really odd. I spoke with him about it and he said, "No problem, I can do that." So he proceeded to walk in, say, "Hi! How was your weekend?" and then ... he just walked away. He didn't have the patience or the desire to hear the answer. It just wasn't his thing. And his team felt really slighted and devalued. This carried over to the way he treated them in meetings and other office situations, too. It got so bad that we had to part ways. It's unfortunate, but when you've got a team, you have to be a team. And that means you have to care about your team members.

    Are you in tune with how your energy is affecting your employees? Got any examples to share?

    Did you enjoy this post? If so, sign up for the free VR Buzz weekly newsletter and check out the VerticalResponse Marketing Blog.



  • Criticism hurts for most, but given right, it can inspire both the critic and the critiqued. Here are five tips to make your critique a positive experience.

    There is nothing pleasant about criticism. Even the best intentioned critique still stings. People like to be right, correct, and accomplished, and when they're not, it hurts to hear the truth, no matter how nice your critic tries to be. Still, those who strive to improve, value direct feedback no matter how painful. And as long as the critic is not being malicious, he or she can actually build a higher level of trust by providing constructive criticism carefully and empathetically.

    So whether you are reviewing an employee, family member or friend, here are five tips for giving criticism in a way it will be appreciated and well received. I also put notes to the receiver as to how you can make the most of the critique.

    1. Have Clear Objectives

    Ask yourself what is the best possible outcome of this critique. If you are simply venting with no intention, you won't likely achieve anything but rancor and resentment. Perhaps you are only prolonging an eventual termination in which case why waste energy and emotion while putting off the inevitable.

    On the other hand, if you find yourself the target of an attack, see if you can diffuse the situation by asking your critics what they hope to accomplish. In the best case, you may get an understanding of the real issue. In the worst case, you'll know it's time to make a graceful exit willingly.

    2. Create a Neutral Environment

    Consider the time and place for your critique. It usually helps not to critique in front of a crowd, which generally leads to humiliation. Human Resource policies may require a third party, but better to make sure that person is fairly neutral so no one feels ganged upon. The best way to neutralize the tension is with appropriate humor. You can build rapport and take down defenses by sharing your own personal experience of silly mistakes you have made in your career. This helps the subject relate to your humanity before addressing his or her own inadequacies.

    If you're the one in the hot seat and you feel threatened or embarrassed by your environment when being critiqued, speak up. Ask to move to a private area or to set up an appointment in the near future. Prepare yourself for the information you will receive. Be attentive with open body language so your critic relaxes as well.

    3. Use Fewer Words With More Meaning

    Your subject has a strong inner voice during a critique and is likely anxious, so keep your critique brief and to the point. The more you say, the more likely you will distract from the key points and make them hard to remember. Plan your conversation in advance and in writing so the subject can walk away with clear direction on how to improve.

    When you're on the receiving end, let your critic speak their mind. If you debate on the spot, you'll appear closed and defensive. Better to agree to consider the feedback in the moment. Then you can revisit the conversation with careful thought and perhaps a little critique of your own if warranted. You'll be taken more seriously when your response is thoroughly contemplated and well articulated.

    4. Align the Criticism With the Subject's Goals

    A self-serving critique falls upon deaf ears. Know your subjects well enough to explain how your suggestions will help them achieve their desired objectives. If they are invested in the outcome, they'll likely be more open to suggestion, regardless of how they feel about you or other people involved. For example, if their goal is to be an amazing boss, then dealing with other people's objections becomes integral to their success. Provide the context for advancement and the critique will be welcomed.

    When you're the one being critiqued try stepping outside yourself. Listen objectively to what's being said. If you are clear on your goals, you'll be able to better identify and filter the good advice from the unwarranted ranting of lunatics.

    5. Encourage Self-Critique

    Instead of simply laying out a list of offenses, describe scenarios from an objective viewpoint and ask key questions so your subject can draw their own conclusions about their weaknesses. Lead them with questions to understand from a management perspective why a different behavior is more suitable. When making statements, stay away from direct attacks. Use "I" language and speak from your own experience.

    Everyone should do their own self-assessment regularly. Try and anticipate the key points of any critique before it happens. If you are able to start the conversation by listing your own failures and suggesting remedies at the outset, you'll disarm your critics and likely impress them as well. Then the whole experience will feel like a win-win for you both.

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



  • Entrepreneur and investor Jeff Bussgang weighs the pros and cons of hopping on the start-up accelerator bandwagon.

    Editor's note: This article originally appeared on Jeff Bussgang's blog Seeing Both Sides.

    Today is Demo Day for Techstars Boston. I love Techstars Demo Days for many reasons, not the least of which is the amazing community that gathers to hear the brief, well-rehearsed pitches from the various start-ups who have spent months planning for this big event.

    As accelerators like Techstars gain in popularity, many entrepreneurs wonder whether they should be applying and, if admitted, joining an accelerator and when they shouldn't. I get this question a lot from my students, particularly as they're graduating and scrambling to figure out where they should start their company, how to raise capital and whether an accelerator is right for them. Here are a few guidelines that I would think about if I were an entrepreneur making such a decisions.

    First, broadly speaking, accelerators serve a very valuable role in the entrepreneurial ecosystem. In many ways, as Eugene Chung of Techstars NY points out, they are like finishing schools for entrpreneurs. Like a college, there is a rigorous admissions process. And once admitted, the participant receives an extraordinarily rich education, in this case in the field of entrepreneurship. Also like college, the best accelerators represent valuable networks, where your "classmates" and even other alumni as well as boosters all become a part of your professional support system. Finally, the brand of the network will always be associated with your brand. Dropbox and Airbnb will always be known as "Y Combinator companies", which initially helped buttress their brand, and more in more is helping enhance the Y Combinator brand.

    So with that in mind, here are a few reasons when I think an accelerator is a great choice for the entrepreneur:

    Outsiders to the Entrepreneurial Community.

    You are early in your entrepreneurial career and want to super-charge your entrepreneurial network. To be clear, this is not a comment about age - you might be in your 50s and new to entrepreneurship. But, as Launchpad LA's Sam Teller observes, "Across the board, accelerators provide one key value: dramatically expanding your network."

    Outsiders to the Particular Community.

    Every major innovation hub in the world now has an accelerator and most have numerous (Boston alone has over a dozen). If you are from outside that particular community, the accelerator is an amazing way to build a network in that particular city. As Brad Feld points out in his book on innovation ecosystems, there is tremendous power in being connected to a hyper-local, dense entrepreneurial ecosystem. Accelerators are magnets for the leaders in a given community - at Techstars Demo Days, it's always a "who's who" of that particular community. The quality of the mentors at the many events and one-on-one sessions over the are course of the program is outstanding - typically, you can't get access to these people any other way.

    New to Fundraising.

    Accelerators pride themselves, and often measure themselves, on their ability to help their graduates raise capital. For example, across nineteen Techstars classes in its four year history, over 70% of all Techstars graduates have raised capital (Techstars publishes an amazing chart that lists every company in every class and their fundraising status as well as employee count). If you don't have existing relationships with investors, accelerators are great ways to establish instant credibility and an instant network.

    That said, not all accelerators are created equal. Just like with a college, your personal and professional brand will always be associated with that particular accelerator, so choose wisely. Some accelerators specialize in certain domains (e.g., Rock Health for healthcare or Learn Launch for edtech). Others have stronger reputations for fundraising vs. product development.

    If you want to get a sense of the quality of the particular accelerator you are considering, you should ask around about them - graduates, senior entrepreneurs, VCs, start-up lawyers, bankers and accounting firms will all have their opinions. One tech reporter, Frank Gruber, publishes an annual ranking of accelerators that is pretty good, although it leaves out hybrid organizations that aren't technically accelerators, like Boston's Mass Challenge (which is a contest) and NYC's First Growth Venture Network (which doesn't take any equity).

    Accelerators are thus not for everyone. If you are already well-connected to a particular entrepreneurial community, have a entrepreneurial track record and network, and are comfortable with your fundraising skills and relationships, then an accelerator probably isn't worth it for you. But if those attributes don't describe you as an entrepreneur, an accelerator may be an excellent choice.

    Now... off to demo day!



  • Our culture has reached "peak BS," political operative Jon Lovett told grads. Here's how you can fight it.

    The constant presence of half-truths and shameless spin in our lives might not sound like much of an issue, but according to political operative Jon Lovett, all that BS can have serious consequences.

    “We are drowning in partisan rhetoric that is just true enough not to be a lie; in industry-sponsored research; in social media's imitation of human connection; in legalese and corporate double-speak," he told the graduating class of Pitzer College. "It infects every facet of public life, corrupting our discourse, wrecking our trust in major institutions, lowering our standards for the truth, making it harder to achieve anything.”

    BS isn’t just a public curse but a private challenge as well, “changing even how we interact with one another,” he added.

    It’s easy to point a finger at politicians, but let’s be honest--business produces an an outsized contribution to our supply of claptrap.

    So what can you do to fight back? Lovett offers three bits of advice.

    Admit your ignorance. Problems only arise when you think you know everything. That isn’t to say you shouldn’t be confident in your abilities, just be aware of their limits.

    "The test of a first-rate intelligence is the ability to hold two opposed ideas in the mind at the same time, and still retain the ability to function," said Lovett. "That's what you have to do: you have to be confident in your potential, and aware of your inexperience.

    There are moments when you'll have a different point of view because you're a fresh set of eyes because you don't care how it's been done before; because you're sharp and creative; because there is another way, a better way. But there will also be moments when you have a different point of view because you're wrong."

    If you see something, say something. No one said fighting BS would be easy. Know what you don’t know, but when you’re pretty sure you’re right, don’t be deferential. Lovett calls this “the subway rule: ‘If you see something, say something.'"

    Value Honesty. Our culture celebrates financial success, professional achievement, and in some quarters, family values. But how often do we celebrate honesty?

    Take a pause now and then to commit yourself to the value of truth. That might sound unfashionable, but Lovett is confident it will pay off.

    “Up until recently, I would have said that the only proper response to our culture of BS is cynicism; that it would just get worse and worse," he said during his speech. "But I don't believe that any more. I believe we may have reached peak b******t, and that increasingly those who push back against the noise and nonsense; those who refuse to accept the untruths of politics, and commerce, and entertainment, and government will be rewarded. We are at the beginning of something important.”

    Do you agree that there's too much BS?



  • Can neurological rewiring boost leadership skills?

    Do great leaders have distinctive brains? Yes, says David A. Waldman, a management professor at Arizona State University. Since 2005, Waldman and his colleagues have been studying the neurological patterns of successful entrepreneurs and senior managers in an attempt to learn what they have in common.

    The test they administer is fairly simple. Nineteen electrodes are placed on each participant's scalp. Participants are then asked a few questions, mostly about their vision for their companies. Their brain activity is also monitored when they are at rest. With help from a neuroscientist and a qEEG machine, Waldman maps out the brain's electrical activity in both speaking and resting states.

    It turns out that the brains of effective leaders exhibit similar electrical patterns. Subjects rated "inspirational" by their employees generate high levels of coherence in the right frontal part of the brain, which is responsible for interpersonal communication and social relationships.

    It may even be possible to teach this part of your brain to operate more effectively. Waldman says neurofeedback training--essentially a rewiring of the brain--can hone your leadership chops. He and his colleagues are developing neurofeedback protocols for leadership development.

    Waldman suggests that neurofeedback-based leadership training might have commercial potential. "We're going right for the jugular when it comes to effective leadership," he says. "And to my knowledge, we're the only ones doing it."

    What Brain Science Says About Leadership

    The "aha" spot: At moments of insight, the brain experiences 40Hz oscillations (gamma waves) over the right anterior temporal lobe and just above the right ear.

    What does a transformational leader's brain look like? Inspiring leaders use less metabolic energy in the right temporal lobe and cingulate gyrus, which are associated with creativity and speech, among other functions. This may give them moreresources to allocate to specific tasks.

    Is leadership hormonal? Individuals high in testosterone and low in cortisol are more likely to be seen as dominant and confident. Low testosterone and cortisol levels are linked with nervousness and hesistancy.



  • Sharing will come back a thousand times more than if you keep the business all to yourself, says Mario Batali.



  • Celebrity chef Mario Batali explains how he built a food empire from the ground up and kept it going.



  • Celebrity chef Mario Batali warns against picking a product and just slapping your sticker on it.



  • Building an empire came easy for celebrity chef Mario Batali, who thrives on cooking and working with people.



  • Obamacare might increase business costs, but celebrity chef Mario Batali is willing to pay.



  • Mario Batali reveals the story behind those infamous Crocs and his family's "national color."



  • Let's face it, shiitake happens. Here are three ways to make the most of your mistakes.

    Let's face it, shiitake happens.

    No, not mushrooms, but mistakes. While some entrepreneurs may have stronger attributes than others, none are infallible. When I meet other entrepreneurs, I am inspired by their incredibly driven and focused personalities and their ability to persevere in the face of ridiculous challenges. Unfortunately, I am more put off by their arrogance and inability to own up to mistakes.

    In my book, humility and grace trump perseverance.

    The problem is that entrepreneurs are all too often embarrassed by their mistakes. They focus on their successes and will largely ignore their failures altogether. They should not. Honing up to your failures and setting out to leverage the lessons learned is endearing in our leadership culture, which is full of forgivers and providers of second chances. Unfortunately, not dealing with your mistakes properly can be a mistake in and of itself.

    Errors are inevitable, so follow these three rules to avoid making your mistake worse.

    1. Identify the Mistake

    Entrepreneurs often misidentify a problem or fail to identify a mistake altogether. Understandably, some mishaps are not obvious, while others may take many months, even years, to expose themselves. The most successful entrepreneurs are great at identifying the root cause of mistakes, while less successful entrepreneurs focus on menial and insignificant causes. Be willing and open to the idea that a mistake may exist, and, if necessary, seek out assistance to find out what the real problem is.

    2. Admit the Mistake

    Like an intervention, the first step in overcoming a mistake is to admit that you have made one. Many entrepreneurs, however, are prideful and painfully relentless in their denial of being wrong or "out of the know," even in the face of overwhelming evidence and opinion. It is important to understand that admitting that you have made a mistake or are wrong is not bad. Addressing and taking responsibility for a failure is an endearing quality that will make you more respectable and easier to work with.

    3. Face the Mistake

    An entrepreneur must understand that the "tallest tree gets the most wind." When mistakes happen, ultimate responsibility lies where the buck stops, with the entrepreneur. All too often, however, "pride-creep" affects an entrepreneur's ability to constructively receive feedback. Granted, sometimes feedback takes more the form of criticism and can be personal, vile and destructive. Nonetheless, a successful entrepreneur will receive it and turn it into something constructive. Get some thick skin and learn to embrace criticism.

    I speak and lecture regularly about my entrepreneurial journey with Wild Creations and I find myself more often than not recanting my mistakes and the lessons learned more often than my successes. It is actually very cathartic to openly discuss the failures I have had, as doing so keeps me grounded. I have even been encouraged to commit these lessons in writing, which is why I started a book project called One Million Frogs. It is therapeutic and humbling, and I believe all entrepreneurs can learn from this exercise.

    And, as for shiitake mushrooms, aside from being a great battle cry when you mess up ("ah shiitake!") remember that mushrooms, like mistakes, typically grow from refuse and in unexpected places, but can actually be very useful at times (not to mention tasty). So do not fear mistakes, but make certain you know how to handle them when they happen.

    Shiitake!

    Please share with others below a mistake you have made and lessons you learned from it. Others will benefit! Cheers!



  • LinkedIn is bigger than ever as a business tool. Are you actually making the most of it? Try some of these little-known tricks and tactics.

    LinkedIn is a powerful social network--not just for making connections, but for sharing content, recruiting talent, and keeping customers in the loop. We asked 11 successful founders from the Young Entrepreneur Council to divulge their favorite hacks to get more out of LinkedIn.

    1. Join Key LinkedIn Groups

    Join all the national groups that are related to your industry. Once you're a member, post your best content articles in the group discussions and you'll see a big spike in targeted traffic from your niche. Some of our best content has really taken off using this method--it really is a quick and easy LinkedIn hack. --Anthony Saladino, Kitchen Cabinet Kings


    2. Make Your Article "Trending in Your Network"

    LinkedIn has a feature called "Trending in Your Network." This feature is reserved for articles that are being shared by multiple people in your network around the same time. If you have an article that features your company, ask your team to share it around the same time. Since many clients will be connected to multiple members of your team, this increases the likelihood that they see your article. --Brett Farmiloe, Markitors

    3. Keep in Touch With 'Five Hundred Plus'

    Use a new tool called Five Hundred Plus that reminds you to keep in touch with your LinkedIn contacts--something that's very important, but most people forget to do.
    --Ben Lang, EpicLaunch


    4. Use Rapportive

    Rapportive is a free Gmail plugin that replaces the ads on the right side of your screen with details from the LinkedIn profile of the person emailing you--his or her picture, company, title and location. It's an invaluable tool to help you determine the appropriate response to his or her message. It also helps you find the LinkedIn profiles of people who are hard to find. --Emerson Spartz, Spartz

    5. Make an Original Tagline

    Want to stand out from the crowd? Don't have your tagline read "Position, Company Name." Rather, make it something like mine, which reads, "Matching you with the best fit for Merchant Services with no contracts and no shady business at Equitable Payments." It gets me laughs, as well as business! --Darrah Brustein, Finance Whiz Kids | Equitable Payments


    6. Reconnect With Classmates

    One of the best-kept secrets of LinkedIn is the Classmates tool. By visiting LinkedIn.com/classmates you can access your college alumni network and tap into those that you share an existing common bond. Sort, filter, and search your way through the database to find the professionals that can best help you using criteria like where they live, what industry they work in, and where they work. --Benjamin Leis, Sweat EquiTees

    7. Use It as a Source of Warm Referrals

    I am very active on LinkedIn. I use it to keep our partners and all of my connections in the loop on our activities via tweets and blog posts. It's an especially effective tool for creating a point of commonality with potential clients. When I am introduced to a new potential client, I immediately reference LinkedIn to see how we're connected and from what shared source I can get a warm referral. --David Ehrenberg, Early Growth Financial Services

    8. Request Product Recommendations From Customers

    We have two parts to our business, direct-to-consumer and custom products that we make for major organizations. LinkedIn allows you to highlight recommendations and reviews of your work product. Many prospective customers will Google "Modify," and our LinkedIn profile stands out. Having recommendations provides instant credibility. --Aaron Schwartz, Modify Watches

    9. Use Job-Change Alerts

    Use a resource like JobChangeAlerts.com to be notified when one of your LinkedIn contacts changes titles or positions. Having this in your inbox provides you with the opportunity to quickly reach out to that individual to congratulate her on the raise or move. These transition points are often when business decisions are made, so the timing couldn't be more ideal to reconvene with her. --Logan Lenz, Endagon

    10. Export E-mail Addresses to Google+

    If your LinkedIn network is truly compiled of people who know and trust you, you can export those e-mail addresses into an .xls format. Upload this document to your Gmail contacts, and you will quickly and easily be able to add these people on Google+. Both social networks are very important for different reasons, but overlapping the two creates better engagement and gives you two platforms to share your message. --Matt Wilson, Under30Media

    11. Utilize Free Entry-Level and Intern Positions

    I'm not sure people realize this, but you can post jobs for free on LinkedIn if they're designated as entry-level or internship positions and posted through their university platform. Jobs posted there collect just as many, if not more, eager and qualified applicants. --Carlo Cisco, FoodFan



  • Sales process is not about how you sell but how the customer buys.

    Every company needs a sales process, right? Well, sort of. The sales process inside most firms look something like this:

  • Engage customer.
  • Investigate needs.
  • Present a product.
  • Demonstrate the product.
  • Propose a purchase.
  • Negotiate terms.
  • Answer objections.
  • Close the deal.
  • There's only one problem: this kind of sales process never works.

    Here's why. Customers don't want you to sell anything to them. Customers have their own idea about how they want to buy something. They deeply resent it when you try to make them dance to your pre-determined tune.

    To be effective, a sales process must be based upon the customer's buying process, which is the set of decisions that the customer wants to make, in the order that the customer wants to make them. In B2B selling, the buying process usually looks like this:

  • The customer decides there's a problem or opportunity.
  • The customer quantifies the economic consequences.
  • The customer decides to commit funding.
  • The customer defines their selection criteria for a solution.
  • The customer evaluates alternatives for benefits and risks.
  • The customer selects a vendor (or decides not to buy at all).
  • Your "sales process" must adapt to the decisions that the customer needs to make at each stage of their buying process. Your job is to help the customer make the best decision, for that customer (and not necessarily for you or your firm!)

    For example, suppose a customer accesses your website and asks for some information about, say, your supply chain software solution. At that point you already know that the customer has decided there's a problem or opportunity.

    Therefore, the next step in your sales process is to help the customer quantify that problem or opportunity in financial terms so that it can be prioritized versus all the other financial demands inside the customer's firm.

    If you followed the old "vendor-centric" sales process, you'd probably try to get into a discussion about needs (too late for this) or perhaps try to demonstrate a product (way too early for this).

    More importantly, introducing those elements into the discussion will distract you from the next two steps, especially defining the selection criteria, where your real challenge is to ensure those criteria emphasize your offering's unique features.

    Furthermore, if you're trying to answer objections and close the deal before the customer has quantified and prioritized the finances, you're setting yourself up to spend a lot of time selling to a customer who may not really see the need to buy.

    So here's the real truth about sales process: it must be adaptive rather than manipulative.

    Make that crucial distinction and your sales process will help, rather than hinder, your sales efforts.

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


  • The Zappos office in Las Vegas, Nevada.

    Want to create an office that truly reflects your company's culture? Forget about inspirational posters and the color of your logo.

    When it comes to design (and office design in particular), I spend a good portion of my day talking normally forward-thinking people out of backward-facing decisions. Recently, I spent the better part of an afternoon convincing the executive team of a sustainable technology start-up that their space did not need to be painted the same Pantone color as their logo to be considered creative. The CEO expressed concern: "How will someone know this was their office if the brand assets aren’t directly represented?"

    Granted, it seems obvious in theory. Our logo is green, so the walls should also be green. But this way of thinking fails to acknowledge the most unique and important aspect of any company: the people and the culture they have created. Businesses spend countless hours reviewing resumes, interviewing candidates, and agonizing over each addition to the team; yet the space where staff will spend the bulk of their time is often designed to highlight marketing jargon or worse, not designed at all.

    Successful offices aren’t about highly appointed lobbies, posters with the core values printed on them, or even the free snacks and lunches so prevalent in Silicon Valley start-ups. The best design is intrinsic. Facebook’s campus, with its art program and Analog Research Lab, encourages the company's hack culture. The Zappos offices emphasize personalization and fun, growing organically from the culture Tony Hsieh champions. (Employees have playfully decorated the executive area as a jungle with Disneyland-level detail.) Even Apple’s future spaceship-inspired Campus 2 is an expression of the brand’s clean, unabashed minimalism.

    We convinced the CEO who wanted to paint his office green to highlight the innovative, research-based nature of his company's work instead. We strategically placed dashboards in the office's kitchenettes to allow employees to get excited by the research as well as promote transparency. We created interior gardens that doubled as meeting rooms and used reclaimed wood to highlight the company’s commitment to sustainability. (Full disclosure: green did make one appearance, in the company sign behind the reception area.)

    When we designed the San Francisco office of Studio O+A, we avoided the stereotypically sleek architectural look and intentionally left the space, a former printing press and its adjacent apartment, a raw canvas for our designers. As a company, we value the informality and creativity that comes with thoughtfully un-designed spaces; our workspace can be anything our team wants or needs it to be. Over the years, our humble office has been transformed into a think tank, a doggy day care, a dining hall, a print shop, a library and a college lecture hall--and, oh yes, an interior design studio. Just last week, I sat down with another designer and sketched out a new layout to change the entire team workflow to allow for more centralized collaboration. This week, the conference room will transform into a war room for a design presentation given on Friday.

    So how can you ensure your space is a reflection of your company’s culture? First, step back and allow all of the brilliantly creative people you hired to make the space their own. Hang up corkboards to allow employees to pin up inspirational ideas and whiteboards to facilitate brainstorming. Encourage people to move around furniture that isn’t working. Allow them the flexibility to arrange desks based on teams. Your company is more than the Pantone color of its logo. Find the character and quirks that make your business unique and let your space reflect them.



  • Clichs exist for a reason: They usually contain a grain of truth. VC Fred Wilson explains when conventional wisdom is just that--wise.

    Choosing the road more traveled isn't always a bad idea, according to venture capitalist Fred Wilson.

    Wilson is the managing partner of two VC firms--Flatiron Partners and Union Square Ventures--and author of the blog AVC. His blog has featured several posts on the subject, highlighting situations in which the conventional wisdom is... well, wise. Here are three instances, compiled from Wilson's "VC Cliché of the Week" blog series, in which following the norm isn't such a bad thing.

    Cliché:

    When it comes to raising money, a rifle shot is better than a shotgun approach.

    Why you should embrace it:

    Netting VC funding is tough. But you can save yourself--and your investors--from wasting time by thinking carefully about the firms you want to target when fundraising, writes Wilson.

    "There is a tendency to build a short list around brand name firms," he writes. "How many times have I heard, 'We need a top tier West Coast VC in this round'?"

    While the top tier West Coast firms are often good investors, he explains, their brand reputation doesn't necessarily make them the ideal investors for your business. Wilson suggests building a short list of firms that are already highly likely to be interested in your venture, and concentrating your efforts on those groups--rather than making scattered attempts at the big name firms.

    Getting it right the first time will make a big difference, he says.

    Cliché:

    It's better to beg for forgiveness than ask for permission.

    Why you should embrace it:

    "Call it the Napster effect," Wilson writes. "You've got to steal the labels wares, because you're never gonna get a license."

    According to Wilson, technology is moving fast and savvy entrepreneurs should focus on innovating first and creating a rule book later. In instances when you are pioneering uncharted territory, he advises, the best thing to do is hit the ground running--and make adjustments as you go along. If you can gain enough support from your customers, you can actually influence the way "rule makers" react to your product--just look at share economy companies like Uber and Airbnb, for example.

    "That's why YouTube is going to win bigtime. They've built the audience. They've built the value added services that make their service fun to use. And eventually they are going to get the content owners to play ball," writes Wilson.

    Cliché:

    People fear what they don't understand.

    Why you should embrace it:

    To illustrate this point, Wilson cites a real-life example from his earlier days as an investor:

    Once upon a time, we had a very early stage company in our sights. We met the company shortly after it was formed, became users of the service, promoted it to a lot of our friends, and got to know the management team really well.

    When it came time to consider an investment, we did what all good VCs do: We got on the phone and called 10 people in the industry that we knew really well to get their take on the company's service. We heard pretty much unanimously that they would never use it. We passed on the investment.

    But it was a huge headfake.

    According to Wilson, within six months, all of the people that he had called became customers of the company--despite their initial reservations. Wilson suggests that his own proselytizing may have been the very thing that changed their minds.

    "When you get unanimous rejection you are actually hearing fear," he writes. "And fear should be interpreted positively, not negatively. It meant that all of our friends didn't understand the company's service and were afraid of it. Probably because it was highly disruptive."


  • Does your brand have what it takes to unlock what

    The chief creative officer promises a new kind of retail experience.

    After conquering the worlds of music and fashion, Jennifer Lopez is taking on mobile.

    The star has partnered with Verizon Wireless to launch a service called Viva Movil that is strictly aimed at Latinos, reports All Things D's Ina Fried.

    "We do things differently, including how we shop for wireless devices," said Lopez, who will serve as Viva Movil's creative officer, during a press conference held in Las Vegas. The Latino market represents $1.2 trillion in purchasing power and, on its own, would be equivalent to the world's 14th largest country, notes Fried.

    Whether you agree with its strategic branding or not, Viva Movil promises a different kind of retail experience. The staff is bilingual, there's a play station for kids, and naturally, it will carry a range of Lopez-crafted accessories.

    Viva Movil's first bricks-and-mortar store will open in June at a "very busy intersection" in New York, said Fried, with 15 more planned for cities like Los Angeles and Miami.

    But while it have retail outlets, the store will sell goods online. The digital site went live on Wednesday. So far, Viva Movil is selling Verizon's standard shared and non-shared mobile plans, along with a decent lineup of phones that includes the Droid Razr Maxx and Galaxy S III.

    JLo said the company isn't remiss to to launch its own devices, but for now will stick to selling those in stock. Viva Movil will be more social, however, and feature Facebook integration on its site.



  • Blending big data with intuitive software, Baltimore start-up RedOwl Analytics is one to watch.

    On Wall Street, pending lawsuits and insider trading are a recipe for PR disaster. Clients pack up to take their business and money elsewhere, and the legal fees start piling up.

    RedOwl Analytics, a Baltimore, Maryland-based start-up, hopes to minimize those risks by harnessing the power of big data.

    The start-up tracks workers' behavior on a near-constant basis, paying special attention to their digital trails on Gchat, Blackberry, and email. It's like a high tech whistleblower no one can hear.

    The data RedOwl unearths can be a gold mine for companies when facing the liability of an employee-turned-criminal. For those already in court, having that data in their pocket might save their case and prove the employee acted alone.

    "We thought hard about who might be interested in this sort of information and we realized a number of private sector and financial companies would," said Renny McPherson, RedOwl's director of business development and strategy. "There's so much liability in that data. We saw that banks had paid billions in legal fees in the past few years and tens of billions of fines in the past few years, so we thought, 'There has to be a better way.'"

    After several test pilots, RedOwl can finally suss out wayward behaviors before and after they've turned into crime. The software is customizable and can be programmed with a data set using the company's own internal infrastructure or a secure, cloud-based format. From there, the data is visualized, making it easy for employers to ask questions and find a solution.

    "We'd love to get to the point where people can start asking questions [of the data] on their own," said McPherson, whose start-up is still in its early stage with only 17 full-time employees.

    "RedOwl started when a group of statisticians, software engineers, and intelligence veterans who came together to harness three macro-trends," he recalled. Those newly minted PhDs were looking at "advances in inferential statistics, the scalability and cost of cloud computing, and the ever-growing liability to defend against (and exploit) the corporate digital trail."

    Not surprisingly, the idea won over judges at the InvestMaryland Challenge in April and raised a seed round of funding in 2011, soon after its launch.

    Before RedOwl seeks Series A funding early next year, McPherson plans to roll out the full version of its software this fall.

    RedOwl, which derives its name from the color of a siren and the nocturnal bird's wisdom, is based in Baltimore, a start-up hub better known for its work in life sciences than in big data. Still, McPherson said he couldn't imagine working anywhere else.

    "Baltimore has a burgeoning and exciting start-up scene," he said, noting his office is "two floors below a tremendous tech incubator Betamore and next door to ParkingPanda."

    That excitement wasn't lost on RedOwl CEO Guy Filippelli, who moved to Baltimore so he could take advantage of the city's technical talent.

    In terms of competitors, McPherson said he has few, though RedOwl's biggest challenge remains convincing employers they'll find it invaluable.

    "Given the attention we have paid to the value of this sophisticated tech, and an appreciation for the human analysis needed with that tech, we see this providing a great solution over time," he said. "The more we keep testing this out, it's just going to be of greater and greater value."

    He added, "If we have success, people will crop up to do something similar, but what we're doing is really unique."



  • It's already one of the year's fastest growing apps. CEO Sean Rad reveals his grand plan to change the way people meet.

    At 27 years old, Sean Rad has already been a successful entrepreneur once. In 2009, he scored his first big hit when he founded ad.ly, which helps brands land celebrity endorsements on social media. Now he's on to his second act: Tinder, which has become the App Store's fast-growing mobile dating app. Rad claims that the app has led to 50 million matches and 10 marriages since it launched this fall.

    It's a simple concept: Unlike most online dating platforms, there are no profiles or questionnaires to fill out. Instead, users sign up through Facebook, select a couple pictures, and enter their gender, location, and sexual preference. The app then serves up photos of other nearby users. They can swipe left if they're not interested or right if they are. When two people both "like" each other, only then can they send each other messages. In just a few short months, Tinder has already generated 4.7 billion profile ratings and is being downloaded more frequently than all other dating apps.

    On Thursday, the Los Angeles-based start-up, backed by IAC, launched a new feature called Matchmaker, that lets users make introductions between their Facebook friends, whether or not they're already on Tinder. It's all part of Rad's mission to reinvent the way people meet.

    He recently sat down with Inc. to discuss Tinder's exponential growth, how he plans on making money (someday), and why so many other entrepreneurs are using his product.

    What inspired you to start Tinder in the first place?
    The idea for Tinder came along when I started thinking about the fact that there are a lot of great platforms that help us communicate with people we already know, but there isn't a way for me to meet new people.

    In the real world, you're either a hunter or you're being hunted. If you're a hunter, there's constant rejection. And if you're hunted, you're constantly being bombarded. And the current solutions actually make these problems worse. With other dating apps, I can reach out to more people if I'm a hunter, and I can be hunted more easily. I never used those apps, none of my friends ever used those apps, and I couldn't understand why until that aha! moment happened. None of these apps were solving the fundamental problem.

    So, how do you solve it?
    On Tinder, you anonymously say if you're interested in somebody, and if that person happens to be interested in you, you can have a conversation. If they're not interested, they never know you liked them anyway, so you don't feel embarrassed. And for the person who's being hunted, we take away that overwhelming experience.

    You've grown pretty fast. When did things really take off?
    It happened around January. We had been picking up on college campuses, then everyone went home and told their cousins and older brothers and friends about it, and all of a sudden Tinder started growing like a virus. Ad.ly was hot real fast and then kind of slowed down. Tinder got hot real fast, and it's only gotten hotter. Throughout my entire career, I've always heard people say that scalability issues are a luxurious problems to have. Maybe they're luxurious problems, but they're some of the most challenging things I've ever had to deal with.

    What was the biggest issue?
    We built Tinder as a prototype and anticipated it was going to take off, but we never anticipated it was going to take off this fast. So we really built prototype code. Once we got hit with the demand, our challenge was not only maintaining the current system, but building the new one at the same time. So imagine you're flying at 100 mph and the engine is breaking while you're in midair, and you're fixing that engine while you're building a new one in the air. It's a very challenging and emotional thing.

    Where'd the idea for Matchmaker, the new feature, come from?
    Our vision is to be the platform that you think about when it comes to meeting somebody new under any context, not just dating. We plan to solve that problem in every way you can approach it. With Matchmaker, you can create a match between any two of your Facebook friends. If they're on Tinder they can talk right there, and if they're not, we'll message them on Facebook and get them to sign up for Tinder and open that dialogue. You can imagine how this could be applied to business or dating, or just about anything.

    How are you going to make money on all of this?
    We come up with ideas everyday, but we shelve them. It's a function of having time to think about it. Right now, we're prioritizing our product ambitions first. We have 50 million matches and a vast audience. When it gets to a point where we've perfected Matchmaker, too, then we'll start to focus on ways to monetize it. If our goal is to help you meet new people, then our revenue model will help that transaction happen faster through in-app purchases. We can charge for better features and capabilities. One thing we won't do is monetize in a way that takes away from user experience or offer features that are core to the product and gate them behind a pay wall. We want to charge for giving you more value, not for interacting with us in a basic way.

    We took Tinder for a test drive and stumbled across a bunch of entrepreneurs, including a Winklevoss twin. Are you seeing a lot of traction among other tech founders?
    Oh tons! Actually, both of the Winklevoss twins are on there. There are a lot of celebrities, who I can't name, because I'd get in trouble. There are billionaires using it, a slew of entrepreneurs, and a couple who are CEOs of very big start-ups right now. I face the same problem they do. Everyone thinks since I'm CEO of Tinder I go on dates left and right, but I'm the worst at dating, because I have no time. This just solves so many problems.

    Why did you stay in Los Angeles instead of making the predictable move to Silicon Valley?
    You hear a lot of, "This is the best place to build a company. No, that place is the best place." I think it's all a crock of shit. You can build a great company anywhere. There's amazing talent everywhere. Your job as an entrepreneur is to find and exploit that talent. L.A.'s an amazing city. Sure, San Francisco has a much deeper DNA in tech, but there are negative attributes, too, because you're in an echo chamber and less connected to the mainstream user.

    You've had a lot of success at a young age. Any advice to other founders who are just starting out?
    You should only start a company because you can't sleep at night until you solve a certain problem, and I think those problems need to find you. If you're starting a company for the sake of starting a company, you're going to fail. If it's not coming out of this irrational need to see this vision to fruition, when those all-nighters for a month in a row start to take a toll on your body, unless you have this immense will to see it through, it can break you. Start-ups are difficult. And that's when things are going well.



  • "Fail fast, fail often" is popular and appealing. But it's not how you produce great work.

    The last five years have produced an increasingly fevered body of business-speak that has achieved almost cult-like status. Expressed variously as 'always be shipping', or 'fail fast', the people who promote this approach would have us believe that leadership--indeed, the very act of creation--is achieved by mere momentum alone.

    Just keep doing things, say these proponents--get stuff out the door--and success will be guaranteed. Grab ahold of an idea, turn it into a product or service, but above all, get it out the door. Sure you'll fail--in fact, you'll fail many times--but eventually you'll succeed. After a dozen crappy launches you'll finally stumble on your personal mega-success--your own Angry Birds or iPhone, your own Mad Men or American Idol, your Frisbee or Beanie Baby.

    All of which is fine for the startup-kiddies. These youngsters are hungry for success and prepared to do just about anything to achieve it. There has always been just such a group, and there always will be. Our capitalist system is the better for it.

    What's much more concerning is the extent to which this "fail fast, fail often" mentality has bled into leadership thinking. It's sucked (some would say, suckered) many leaders into trading focus and excellence for mere motion and mediocrity.

    Here are the top three signs I see in leaders who have all the ability needed to produce genuinely outstanding work, but who have instead been conned into joining the ranks of mere 'shippers':

    Your intuition tells you so

    Well, duh, as the kids say. You'd think that a nagging, persistent voice saying "this is okay, but I could make so much better" would pull most people up short. Unfortunately, experience tells me this isn't so.

    Instead, fueled by the "ship early, ship often" mentality, I see leaders constantly sell themselves, their teams and their projects short by tossing stuff out the door that isn't their best work.

    As my friend Michael Bungay-Stanier says, there's a world of difference between doing merely good work, and doing great work. If your inner voice is telling you that you're merely doing good work, it's time to slow down and deliver something great.

    You're fixated on what's next before you've finished what's now

    Any leader worth their salt gets excited when a new project hovers into view. The deciding factor is what they do with that excitement.

    Truly great leaders are disciplined. They park their excitement, knowing they can return to it later--but only after ensuring they have delivered real excellence in the project they're currently engaged in.

    Less-than-stellar leaders become consumed by the entrancement of the new thing, and are hypnotized into dropping, aborting or prematurely birthing what they're currently working on in order to get their hands on that shiny new project--all, of course, accompanied by an intellectually robust post-rationalization.

    If you have a history of losing interest in the final 20% of projects you're responsible for, trading that interest for the thrill of the next new thing, it's time to work on your ability to delay gratification.

    You've left behind a trail of failed or near-failed projects

    The single most obvious sign that you've become a 'shipper', not a leader, is a tell-tale breadcrumb of failed or good-as-failed projects. These are permanent, visible proof of the lack of discipline required to produce truly great work.

    This doesn't just happen at the individual level, by the way. Entire organizations can display this tendency. Compare for example, Google's graveyard of cancelled projects with Apple's short list of flops (Lisa, Newton) and you see the difference between an 'always be shipping' mentality and true industry leadership.

    Do you want to be lauded for your ability to pull the trigger and get stuff out the door? Or because you deliver genuinely inspirational, life-changing world-class product? If the former, keep doing more of what you do, and keep doing it faster.

    If it's the latter, slow down. And don't feel guilty about it.

    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.



  • The most successful entrepreneurs do more than set goals. They keep those goals front and center--all the time.

    I'm goal oriented. Professionally I am happiest when I have a number to hit, a timeline to make, or a task to complete. Personally, I am at my best when I have a big trip or event in the not too distant future that I am working toward.

    That's true of a lot of the successful entrepreneurs I know. They're motivated by the prospect of hitting a goal, driving past it and looking for their next target. That means not just setting goals, but making sure they're constantly working to execute against them. Here are five ways to do that:

    Remind Yourself--Constantly

    I was traveling with Heath Hyneman and Kevin Wallace, the CMO and CTO of National Builder Supply, to the National Hardware Show in Las Vegas, and I noticed something very odd about both of their laptops. On the lip where the laptops open, there was a list of numbers created by a label maker. Turns out the numbers have a very significant meaning to them for their company--and they are reminded of these goals every time they open their laptop.

    I have seen similar reminders of goals on the backgrounds of other entrepreneurs' iPhones (think of the number of times you would see that every day) and even on the wallpaper of their laptop or tablet.

    Be Specific

    Author of the book How Did You Get That Job? and TV writer Susan Dansby writes her goals on a sheet of paper and hangs them in her office. Simple and effective. She told me that she had written the goal "I will be nominated for an Emmy"--which she was, but she didn't win. She promptly tore that sheet off the wall and wrote "I will win an Emmy"--which she did. Being specific is important for measuring success and providing motivation.

    Set a Timeline

    My experience running projects and motivating teams has taught me that a project or initiative will always fill all of the available time allotted to it. It's only when a specific, unmovable date or time is set that everything seems to miraculously come together.

    Setting a solid date for your goal with some associated guideposts helps you focus on what you need to do today to make that goal a reality tomorrow. A hard date also provides you with a concrete time to reevaluate and refocus if you aren't making the progress you had hoped.

    Build in Accountability

    I just completed the manuscript for my first book. I say it is my first book because I have three more that I plan to write. The reason I got my first book done? I was accountable to a publisher to have it submitted by a certain date for a specific release date. This accountability was strong motivation for me to block out the time to get it done. I had considered self-publishing the book several times, but having someone to answer to gave me the push to finish.

    Provide a Reward

    Even if you think hitting a goal will be enough of a reward, tie something to the accomplishment that helps you remember and celebrate. It can be something as simple as a nice meal, a new pair of shoes, or that new iPad you've been coveting. Sometimes our goals are big and lofty and the accomplishment of the goal isn't completely tangible. Tying the goal to a simple tangible reward is a great boost for your own psyche and is especially important to remember if you rely on others to help you get to that goal.



  • What you can do about that moment of truth, when a customer decides to stay or go.

    When was the last time you sat on the phone with a customer service rep or stood in the middle of a store, hoping someone would help you out, knowing full well if no one responded gracefully, you'd be done with that company--for good? I call that the moment of truth--the point in time when a company keeps or loses you as a customer.

    As a business owner, the way you understand and handle moments like these will often determine your company's likelihood of success and even growth rate.

    Undoubtedly, you can expect things to go wrong, and for some customers to be unhappy. It happens with every business. However, it's how you respond and it's the service you provide to right the situation that often decides whether or not customers will come back. Never underestimate the reputation damage you can suffer from bad service.

    At SurePayroll, I have three very basic rules so all my employees know how to step up when a moment of truth comes.

    Rule No. 1:
    Operate within the rules and regulations of the industry. Make sure whatever help or advice you give is within the legal and ethical boundaries of the trade. The payroll industry happens to be a particularly sensitive one.

    Rule No. 2:
    If you do what is in the best interest of a customer, you'll be supported. The customer's needs come first--even if you go against another protocol. Your manager supports this; I'll make sure of it.

    Rule No. 3:
    You should be comfortable seeing whatever you do in customer service show up the next day on your Facebook or Twitter feed, or the front page of a newspaper. You should always meet this standard in a moment of truth: If your interaction with a customer was recorded, would you be proud of what you did?

    Adhering to these rules could make the difference between your success or failure.



  • One of the best regret-management tools around is having a precise and easy-to-understand privacy policy. Here are four steps to crafting and implementing "privacy by design."

    Do you have a privacy policy? If so, you're in the minority.

    Right now, fewer than half of all app developers have a privacy policy. The good news: that's changing quickly.* Legislation is in the works that will require privacy policies from app developers as states such as California and other government entities continue a big push in this area.

    Privacy policies are great regret-management tools. You can act now...or be forced to act later. Want to get going? Here's how.

    1. Simplify and Consolidate

    Privacy policies should be easy to understand.

    What's likely happened is that your lawyer has drawn up a policy that the average Joe might not be able to understand. You shouldn't ditch it, but you can re-write it in layman language; separate disclosures into two sections: Plain English and Legalese.

    Remember, your policy isn't there to baffle users. Share new policies before implementing them, show abbreviated changes to the privacy policy, and track them so that users can see the differences in the privacy policies.

    Notify users of proposed changes to privacy policies. You build trust if you publicly post proposed policy changes and allow for your user base to comment on them before you implement them. Though this may slow product development, it will prevent the backlash experienced by Instagram, Facebook, and Path. In the past, Instagram suffered from unclear data ownership policies, and Path got in trouble for storing user contacts without explicit permission. Later, Path make phone calls to some of those contacts and e-mailed them about photos on Path, causing another uproar.

    If your app needs to use user data, ask first, and let the user know what the data will be used for. These kinds of community concerns are important and will prevent people from losing trust in your brand and company.

    2. Present Privacy Controls at the Point of Content Creation

    Build trust and confidence with users by exposing privacy controls with every piece of content that can be created or shared in a given system. Instagram and Foursquare do this particularly well. Instagram displays sharing options for social networks every time a photo is posted to Instagram. Simple on/off switches make it easy to toggle where an Instagram post goes to. Foursquare allows users to check in "off the grid" with ease by simply pressing a button on the check-in screen. Be consistent, and be open, and your users will thank you for it.

    3. Make Privacy Universal

    Privacy consideration should be incorporated into every aspect of an app's lifecycle. This includes Web, legal, user experience, messaging, marketing, and development. Privacy policies need to be implemented across company divisions to make sure they work. From the user experience perspective, consolidate and simplify settings and permissions. Market your apps as respecting user privacy and data ownership. Develop your applications with privacy and user empowerment in mind, especially when storing and accessing sensitive data. Ensure your users understand what they are opting into and what giving their data will give them in return. The right messaging makes a big difference.

    4. Remember: No One is Perfect

    Hosting user data is a privilege, not a right. Apologize immediately when you make a mistake, and fix the problem immediately. Keep abreast of the current industry and it's regulations, and you'll be free and clear of complications. And remember, fight for your users and they will fight for you!


    *Thirty percent of apps had privacy policies in Sept 2011. By June, 2012, 48 percent did, according to this June 2012 FPF Mobile Apps Study. Accessed 13 May 2013. http://www.balough.com/uploadedFiles/Mobile-Apps-Study-June-2012.pdf



  • Meet the veterans who bring their unusual discipline, perspective, and problem-solving skill to the world of game-changing start-ups.

    I first met Joseph Kopser six years ago in Mosul, Iraq. He he was an Army major serving in a cavalry squadron at the time, and I was a reporter for The Washington Post.

    Kopser, 42, who retired from the military last week, is now the CEO and co-founder of an Austin, Tex. start-up called RideScout--a smartphone application that aggregates all of a user's potential ground transportation options in real time, everything from buses and Zipcar to rideshare options with friends or strangers.

    On Memorial Day, we remember members of our military who made the ultimate sacrifice. I've interviewed thousands of soldiers over the years. One thing they've told me repeatedly is that the best way to honor that sacrifice is to remember those who gave their lives--and to live lives worthy of them. Today, I'd like to start telling you about some veterans who do just that. These are men and women who become entrepreneurs, trying to change the world for the better.

    Military training is often cited as good preparation for business leadership. People might know a few anecdotal examples of this, like the fact that Fred Smith was a Marine officer who observed the military logistics system before he founded FedEx.

    Still, the more prevalent story seems to be of veterans who have difficulty transitioning to the civilian world--stories of PTSD and movies about returning veterans in crisis. (Indeed, I've written a lot about troubled veterans and even military suicide in the past. These are very real problems.)

    However, veterans bring amazing advantages to to the entrepreneurial game--things like discipline, perspective, leadership ability, and the learned skill of seeing problems as opportunities--to say nothing of having accomplished ambitious goals with the weight of a gigantic bureaucracy on their backs.

    It Started With Pentagon Traffic

    Take Kopser, for example. A 1993 West Point graduate, he and his classmate and Army buddy Craig Cummings launched RideScout while Kopser was still on active duty, running the ROTC program at the University of Texas at Austin.

    Kopser came up with the idea during a Pentagon assignment, when he had to figure out how to get to work efficiently within the Washington, D.C. traffic nightmare. Enter Cummings, who had left the military to become an investor and entrepreneur. Kopser recalled sitting on his back porch in Arlington, Va., telling Cummings about his daily commute.

    "I live five miles from the Pentagon, and I could walk, ride, or drive, but...if something goes wrong, my whole day is ruined," Kopser said. He'd been up half the night before looking for a website or app that would show users their transportation options in real-time. No dice.

    "So I explained RideScout," Kopser said. Soon after, Cummings called back.

    "That is a billion dollar idea to change society as we know it," Cummings told him. "I'm going to give you the money to make it happen. Give me your USAA bank account number."

    That was in early 2011. Today RideScout is in beta after its launch in Austin during SXSW, and has closed over $700,000 in seed financing. The plan is to expand to Washington, D.C. and Seattle by the fall.

    An "Equal-Opportunity" Opportunity

    It's not just officers, who are generally college-educated and a bit older than enlisted service members, who find great success in the entrepreneurial world when they're given the tools to succeed.

    I talked this week with Dave Liniger, the founder of RE/MAX, the giant, international real estate company.

    Liniger has a new book out, My Next Step, about his ongoing recovery from a medical condition last year that temporarily paralyzed him. What struck me from his early story was that he took the first steps toward founding RE/MAX while still on active duty in the U.S. Air Force in the 1970s.

    "Even as an E-4 [senior airman, getting] hazardous duty pay, it was poverty wages," Liniger explained. "So, I had read a book on buying and fixing up houses and selling at a profit. That started my entrepreneurial career."

    His first property was a $10,000 duplex that he bought with just a $500 down payment.

    "I sold it in six months for a $6,000 profit. All of a sudden I made more money on one real estate investment than I did on my entire salary and three part-time jobs," he said.

    Liniger had dropped out of Indiana University after three semesters, enlisting in the military in the 1960s. He served in Vietnam, and said the experience changed his life.

    "The military was incredibly important to me and my success," he said. "As a farm boy growing up in Indiana, my parents instilled in me a very good work ethic, but when I went to college at 17, I had no goal, no idea where I wanted to be."

    The Air Force gave him motivation. "I fell in love with it from the first day. It grounded me, gave me a sense of purpose," he said.

    As we'll see in the second article in this series, which highlights my interview with Air Force veteran and "Godfather of Silicon Valley" Steve Blank, the military itself deserves a lot of credit for having created the antecedents of the phenomenal tech explosion we've seen in this country over the last half-century or so.

    In fact, the hardest thing about writing this kind of article, frankly, is the sheer number of great veteran-entrepreneurs who prove the point. I'm always eager to hear about more of them, so feel free to reach out to me here.

    (Memorial Day is a day to remember the fallen. I'll be thinking in particular of two West Point roommates, Lt. Todd Bryant and Capt. Tim Moshier, who gave their lives in Iraq in 2003 and 2006.)



  • Because if you are a solo founder, you are always the smartest person in the room. As an investor, I want someone in there with you.

    As a seed-stage investor, I get to see companies at the most formative stage of their development. One of the more interesting variables is the one-founder-versus-two-founders dynamic. I, for one, am a fan of the two-person founding team (or three-person, or four-person). In fact, it is now a requirement of our accelerator program that every company have at least two founders.

    Why? Because when the 100 decisions that needs to be made that day bubble up to the top of your brain and the Top Five need to be prioritized, I want someone else in the room with you.

    Because when you are a single founder, you are always the smartest person in the room and thus every decision is perfect.

    I want someone else in the room. Every day.

    So, how do you find a co-founder (ideally, one whose skills complement yours)? I would use the same technique you use (or used) to find your significant other. Seriously. The parallels are significant. Here are three thoughts I share with single-founder entrepreneurs:

    • Know Thyself. If you are following my “complementary skills” angle you have to have a very good idea of who you are in order to find your co-founder. Not sure who you are? Ask around. Don’t be afraid-;this is crucial feedback.
    • Network Like Crazy. Start talking to everyone who will listen about your idea and your desire to find a partner. Meetups, conferences, and entrepreneurial social events are perfect opportunities, as everyone there is by definition a potential candidate.
    • Put the Dating in Founder-Dating. My partner, Dave Neal, and I dated for about three months. We met about every week in person and exchanged emails and phones call in between. We worked problems, found solutions, discarded ineffective ideas, and talked about everything we could think of. Most important, we talked about our failures.

    As is the norm, there are websites and organizations trying to facilitate this process. It seems like we get asked every day to support some vehicle for matching up people. Think Match.com for geeks. www.cofounderlab.com, www.founderdating.com and www.startupwithme.com are all good online examples. Some of these sites also host face-to-face events that augment the online experience. Check them out.

    As the start-up days turn into weeks, which turn into months, and you enter the classic “trough of disillusionment,” having a partner who inspires you, or covers for you when you have no mojo, or provides counter thinking, or tells you when you are off base is a gift. Of course, your partner gets the same in return.



  • Before you settle on a name for your company, check out these very simple yet brilliant thoughts on naming. Also, take the Ikea challenge!

    As George Eastman, the founder of Kodak and godfather of the nonsensical naming trend said, "A trademark should be short, vigorous, incapable of being misspelled. It must mean nothing. If the name has no dictionary definition, it must be associated only with your product."

    As Jason Calacanis, CEO of Inside.com and angel investor said, "If you go into a VC meeting with a crappy name, they will look at it the same way they look at you unshaven with a stain on your shirt. If you can't name your company well, you're simply not worth investing in."

    So just for fun, take this quiz and see if you can tell if the word is a start-up or a piece of Ikea furniture:

    1. Falster

    a. A line of weather-resistant outdoor furniture

    b. A bedside table

    2. Clypd

    a. An online exchange for digital advertising

    b. A bedside table

    3. Fruux

    a. A cloud based platform for organizing contacts and calendar items

    b. A shelving unit with sliding glass doors

    Fun Fact: 19 of the top 25 U.S. websites have a name with two syllables or fewer.

    Answer to all: (a.)


  • Lyft, the popular ride-sharing app, announced today it has raised $60 million to go global. And yes, the mustache is coming along for the ride.

    Andreessen Horowitz chooses its horse in the increasingly competitive car-hailing and ride-sharing space. Here's why it put $60 million behind Lyft.

    Lyft, the San Francisco-based ride-sharing start-up known for its pink mustache hood ornaments, announced today it has raised $60 million from venture capital firm Andreessen Horowitz, bringing its total capital raise to $83 million.

    John Zimmer, the start-up's 29-year-old president, says the company plans to use the capital to expand globally, open offices overseas, and continue to hire employees. Today, the company has 55 employees, but Zimmer expects to double the headcount by the end of 2013. "We didn't start this company to raise money," Zimmer says. "But this investment gives us the resources we need to grow this company globally as well as strengthen our community. We realize we're just getting started."

    Founded in 2007 by Zimmer and co-founder Logan Green, Lyft's business model is fairly straighforward, even if it operates in a legal gray area: The company recruits and (background-checks) city car owners to become become part-time taxi drivers, who set the hours they wish to work. Drivers are paid through "donations" from passengers.

    Customers, using an iOS or Android app, can "hail" a Lyft driver and hitch a ride. In heavily populated areas such as San Francisco's Mission District, wait-times can be less than two minutes. And payment, which is technically optional, is delivered directly to the driver through the app--and (here's a key to the business model) Lyft takes a 20 percent cut.

    So far, the service has been a major hit in the Bay Area. While getting into a stranger's car and giving them a fist-bump (sort of a cultural hallmark of Lyft's service) isn't for everyone, Lyft has amassed almost a cult following. Zimmer says the company has "hundreds of thousands of users," and tracks about 35,000 rides each week. The company does not disclose revenue.

    Right now, the service operates in four cities--San Francisco, Seattle, Los Angeles, and Chicago. Zimmer was tight-lipped when asked about company plans to enter specific markets (New York? London? Portland? Boston?) but he said city population, population density, and transportation alternatives will factor in to their expansion road map.

    With this Series C investment--Founders Fund invested $15 million in its Series B in 2012--Lyft becomes the most well-funded transportation alternative start-up in this increasingly competitive space. SideCar, its most direct competitor also based in San Francisco, has raised $10 million, while Uber, the extremely fast-growing on-demand taxi, car, and sedan service, has raised nearly $50 million.

    Despite that these companies are trying to shake up a lucrative $11 billion U.S. transportation industry with no dominant players, it's a notably risky investment. In October 2012, the California Public Utilities Commission sent Lyft, along with several other ride-sharing and car-hailing companies, cease and desist letters. The PUC argued that Lyft lacks "the required charter party carrier permits that make sure drivers are properly licensed, screened and insured to carry commercial passengers."

    Zimmer is well aware of the challenges ahead, and says he and his team are working with both internal and external counsel to do the legal research needed when expanding to new markets. "We are going to face hurdles," he says. "We knew that when we started this. But in the end, [ride-sharing] is better for the consumer. It's more efficient."

    Scott Weiss, a general partner at Andreessen Horowitz leading the Lyft investment, admits that the regulatory issues were a legitimate concern for the venture firm, but his confidence in Zimmer won out.

    "One of the primary risks in this type of investment is regulatory," Weiss says. "But I think we have an advantage because we are on the right side. They take trust and safety extremely seriously."

    Weiss notes that Andreessen Horowitz partners have met with teams at Sidecar and Uber, but what set Lyft apart, and ultimately earned the investment, was their strong community and transparency.

    "These guys have figured out how to crack the trust barrier," he says. "They forced everybody, the drivers and the riders, to Facebook-connect. They have proprietary ways of making sure you are a real person."

    Weiss was also attracted to the company due to its diversity of drivers and passengers--and its reputation as a trustworthy, safe, service. For instance, the majority of Lyft riders in San Francisco are women.

    "You have to think getting into a strangers car--a lot of women might not do that," Weiss says. "Their driver screening is I think the best in the industry."

    Now, about that pink mustache. It's a nice branding tool, but will it actually fly, say, on the streets of Paris?

    "The mustache will go global," confirms Zimmer. "It's important to us that we understand the local communities. Everything we do should not be a one size fits all. We'll want to do that research."



  • Indoctrination, vision, mission--you'll almost always find a little bit of cult-like mentality at the most successful start-ups.

    If you ask 10 executives or business leaders what really motivates employees to do great things, you'll probably get 10 different answers.

    Many will provide a generic response along the lines of employee engagement or emotional intelligence. Not that employees shouldn't be engaged or leaders shouldn't be self-aware, but let's face it, that's pretty baseline. It's not going to get your team fired up to go out and conquer the world.

    Likewise, if you ask thousands of people what motivates them, you'll get some common responses. Many will say they want an environment where their work is appreciated, recognized, challenging--that sort of thing. But again, that's nothing to write home about.

    If you want to really motivate your team, if you want them to jump out of bed in the morning excited to get to work and go to bed at night feeling like they've done something amazing, you're going to have to be a lot more creative.

    The truth is, what motivates individuals is highly subjective and situational. There is no answer that will work across the board. It often comes down to the unique characteristics of an eccentric geek, some crazy idea, and a team that's made to believe it can accomplish great things.

    So, instead of the usual boilerplate fluff, let me tell you how someone like Mark Zuckerberg, Larry Page, or Steve Jobs somehow manages to build a cult-like culture of people that love their work and truly believe they can make a dent in the universe. And how you can do the same thing.

    Be the courageous hero. Believe it or not, inside every one of us is a kid who once believed in superheroes and romantic tales. There's a part of each of us that wants to be led by a hero of sorts. If you truly believe in your own vision, then you owe it to your team to play that role. Just don't overdo it and go jumping off buildings or anything.

    Give them a Holy Grail to search for. Perhaps the most important part of the equation is the cause itself, a product that solves some huge problem that nobody's been able to solve or enables people to do something really, really cool. Pretty much everyone wants to see loads of people using something they had a hand in. Besides, cults are never really about their leader but about the cause.

    Hire those who want to take that journey with you. If you simply hire folks who can do a job, that's all you're going to get, even if they are really talented. What you want are people that fit a certain type that resonates with you and what you're trying to achieve. Granted, you're not looking for an army of clones; a little diversity is a good thing.

    Show them the way. A group needs direction and discipline to fulfill its cause, strategy and planning to turn an idea into reality. You have to be able to fill the shoes of a good manager who can point people in the right direction and be there when they need guidance and encouragement. It's true that not every start-up founder makes the best CEO, but they're usually quite capable, at least in the early stages.

    Draw them into your story. It's one thing to have a unique vision--it's another thing to be capable of connecting with folks in some emotional or intellectual way. That requires a certain leadership presence, a healthy ego, and perhaps a little bit of Kool-Aid. Your team needs to feel a sense of purpose, that they're an integral part of achieving some great mission. Perhaps indoctrination is too strong a word, but you know what I mean.

    Make it up as you go. We hear the stories about Facebook, Google, and Apple over and over but the truth is that most start-ups don't score big on their first idea. Besides, even if you've got a great concept, your team's unique dynamic may evolve to a great extent on its own. So you've got to be open and adaptive. Pay attention, listen and learn, look for clues to the culture that makes the whole so much greater than the sum of its parts.

    If you doubt that the culture of a start-up can be a lot like a cult on a mission, ask anyone who's been a part of one and they'll tell you. I've been there myself, more than once. There is indeed truth to the metaphor. They're not all like that, but some of the most storied and successful ones definitely are. I'd tell you which ones, but then I'd have to swear you to secrecy.



  • Steve Schlafman, principal at Lerer Ventures, offers tips for passing the smell test.

    Passing investors' smell test takes more than just a great idea, said Steve Schlafman, principal at Lerer Ventures, on Wednesday during Internet Week.

    It also means putting your best foot forward.

    Here are three ways a start-up can do so:

    Have a great track record--and a great team. "We like founders who have history of accomplishing stuff," said Schlafman. Oftentimes, founders are are high achievers who have been leading since they were young, perhaps as a class president or a coder.

    If there are several founders then investors will evaluate their dynamic, taking time to examine things such as how long the founders have known each other and where they first met. Team chemistry is critical, stressed Schlafman, because the company's culture starts with them. Maintaining that culture means hiring the best people, especially in the beginning when start-ups are short on cash and resources.

    Know your story. "Being able to articulate why and what you are building in a very concise way is super critical," said Schlafman, noting a company description is not enough. "It's like the whole Simon Sinek TED Talk: Why are you doing this? What's the purpose?"

    Have a game plan. Entrepreneurs should also be able to explain their product, why consumers need it, and how it will be delivered.

    "I am a seed investor, I am not investing in a PowerPoint presentation," Schlafman said. "I am investing in a founder, in a product, and I want to see that you can ship something. Or that you can prove to me that someone wants your product.

    "You don't have to walk into my office and be like, 'Hey, we figured out all of the lifetime value economics of our business,' but I want to know how you plan to get the product into the hands of the people that need it most."

    Make sure your action plan includes a means of distribution, which communities you'll target, and how you plan to expand your reach.

    Speaking of customers, make sure you know yours, Schalfman concluded. "How much do they sleep? How much do they make? What do they do on the weekend? Understand how they purchase products."



  • First a window washer, then a beverage mogul. Here's how a kid from Brooklyn launched a beverage empire.

    Leonard Marsh, the Brooklyn-born Snapple co-founder who started his career as a window washer, died Tuesday on Long Island, New York.

    An obituary published in The New York Times Thursday recalls the early days of the company, when three friends from Brooklyn began experimenting with tea and juice--despite having little experience in the field:

    When Mr. Marsh began Unadulterated Food Products with his colleagues, he knew chickens and he knew eggs. He also knew windows. But when it came to his start-up venture, as he told Crain's New York Business in 1989, he knew "as much about juice as about making an atom bomb."

    The three men did wind up making a bomb of sorts: a batch of carbonated apple juice that accidentally fermented, shooting scores of bottle caps skyward.

    In the early 1990s, at the height of Snapple's popularity, the company attracted the attention of larger food and beverage conglomerates. In 2008, after the death of Marsh's co-founder, Hymen Golden, Inc.'s Jeff Bailey recounted the company's turbulent buy-out by Quaker Oats:

    The company helped usher in a more varied and innovative beverage industry in the United States, and Golden made more than $100 million when Snapple was sold, first to a leveraged-buyout firm and then to Quaker Oats, which paid $1.7 billion for the company in 1994. But he had to watch as Quaker Oats botched combining the company with its own operations, sold it off for a mere $300 million, and in the process turned Snapple into a synonym for a failed acquisition.

    Two decades ago Marsh was honored by Beverage Industry, a trade publication, as the 1993 Executive of the Year. In an interview, Marsh was described as "Mr. Nice Guy," an ode to his humble, fair, and mild-mannered legacy as the company's CEO.

    Marsh also has helped people continue their employment. Three years ago, when the company moved to Valley Stream from the Ridgewood section of New York City, Marsh and company bought a bus so that employees without transportation could stay on board with Snapple.
    The company also has flexible hours so that employees who have children or parents to care for can do just that.

    "A lot of companies don't have a need for those things," he says. "But, you don't know if you don't ask." And if you say "too bad" to the potential employee who needs an extra hour, then you're not being fair, he adds. "That's just not nice."



  • M.D., M.B.A? That's not what it takes to become a healthcare entrepreneur.

    In many ways, doctors are well-prepared to become entrepreneurs. They are professional problem-solvers. They understand patient needs, and they also understand healthcare trends and issues.

    But for many doctors, like many of the rest of us, the trick lies in knowing what you don’t know. I work every day moving innovation from bench to bedside, and I’ve found there are few key areas that consistently get short shrift as physicians try to build growing companies.

    Market size

    You can have the best idea in the world, but if only five people need it, it’s best to move on. The innovations with the greatest potential are those that solve real problems for the largest populations.

    Dr. Mark Kyker, an anesthesiologist, noticed multiple problems in keeping patients warm before, during, and after surgery. Cotton blankets offer no clinical benefit and must be cleaned after use, which costs money. Electric blankets and forced air warmers can be loud and require attachments, limiting mobility. Dr. Kyker thought the same technology used in self-heating hand warmers could be used for self-heating surgical blankets. The single-use blankets keep the patient at a consistent temperature throughout the procedure. They don’t require cleaning, are noiseless, require no attachments, and are affordable.

    Market potential for Dr. Kyker’s brainchild? With more than 51.4 million inpatient and 57 million outpatient surgeries performed in the United States annually, it’s huge.

    Expert advice

    Starting a company requires skills not typically taught in medical school. Recognizing that you’re not an expert--even if you have an MBA--is critical. Listen to those with entrepreneurial experience and use what’s relevant to you.

    Dr. Kyker enlisted the help of a serial physician entrepreneur, Dr. Steve Isenberg, who’s also a partner in StepStone Business Partners, an angel investment firm. Dr. Isenberg and Oscar Moralez, another StepStone partner, helped Dr. Kyker found his company, Apricity, and create a business strategy.

    Respect for capital

    Don’t expect investors to come running just because you have a great idea. Today, investors rarely look at early stage technology. Most start-ups are self-funded with help from family and friends. If you’re lucky and good, you might get funding.

    The entire value chain

    The healthcare value chain is often more complex than that of the typical startup, particularly if your product requires FDA approval.

    Dr. Kyker and his partners recognized the challenges early on and partnered with Grabber, which makes self-heating hand warmers, to help perfect the technology and produce prototypes. Apricity found a second strategic partner after a meeting with representatives of Molnlycke, a European company that supplies a portfolio of disposable products to hospitals on a global basis, at a trade show. Molnlycke has since signed a licensing agreement with Apricity and is now selling the self-heating blankets in Europe, giving Apricity a powerful leg up.

    Failure

    No one likes to fail, and physicians often associate failure with life-or-death situations. Apricity’s self-heating blanket went through multiple iterations and three years of hard work before it could be successfully commercialized. The best advice is not to be afraid of failure. Get up, dust yourself off, learn from mistakes, and try again. Your next idea may be the home run.



  • The difference between Tesla and Fisker? Tesla acted like a real car company.

    Electric car company Tesla paid back a controversial loan to the Department of Energy on Wednesday, a feat that sets it apart from other fledgling electric car start-ups and programs.

    The repayment of nearly half a billion dollars comes nine years ahead of schedule and will net U.S. taxpayers $12 million, according to Bloomberg. The early payday comes after Tesla announced its first profit ever for the quarter ended March 31--$11 million. While just months ago Tesla endured plenty of criticism for being a money loser, its share price has almost tripled since the start of the year, reaching $89 before noon on Thursday and increasing the company's market capitalization to $10 billion.

    Tesla's turnaround is a testament to the power of a solid, well-coordinated business plan--a must for any start-up--but something that's particularly true for a nascent product like the electric car, which is capital intensive and requires a leap of faith from consumers.

    Tesla's sudden change in fortune stands in marked contrast to Fisker Automotive, a competing alternative car company now on the verge of bankruptcy and at the center of controversy over $192 million in federal funding that it's unlikely to pay back. The funding comes from the same loan program that Tesla used, called the Advanced Technology Vehicles Manufacturing Loan program.

    "Tesla understood what it takes and organized itself in such a way as to be a real car company" with a truly integrated supply chain, says Alan Baum, principal of Baum and Associates, a fuel and energy consultant in West Bloomfield, Michigan.

    Among the things Tesla did to properly organize, besides having a great idea, Baum says, is to actually produce the cars it promised to buyers, hire people with a specialty in the automotive industry, build strong supplier relationships, and develop manufacturing specialty and marketing expertise, Baum says. Fisker, on the other hand, outsourced development of certain key parts, like the battery.

    "All of these count," Baum says, adding that it also helps to have a highly successful, savvy entrepreneur such as Elon Musk, who's been active creating industry-changing start-ups as diverse as Paypal and SpaceX, at the helm.

    Although Republicans have tried to paint recipients of the federal loans as incorrigible wasters of taxpayer money, a number of established blue chip firms also received much more financing from the same program to advance their own electric vehicle technology, among them Ford and Nissan, which got $6 billion and $1.4 billion respectively. Both are still in repayment.

    Fisker stumbled right out of the gate. After drawing down $192 million of nearly $500 million in potential financing, it triggered loan covenants when it botched production deadlines, failing to deliver cars on time. The rest of its funds were then frozen.

    Fisker then suffered a series of mishaps, including a battery flaw that caused at least one of its vehicles to burst into flames, and a lurid episode with Consumer Reports, when its test Karma sedan failed to run at all, a first in the history of that publication. (By contrast, Tesla scored 99 out of a possible 100 points for its Model S.)

    It didn't help matters that Fisker's battery manufacturer A123, which also borrowed from the same DOE loan program, filed for bankruptcy earlier this year. Wangxian Group, a Chinese automobile parts company, acquired its assets in May. Wangxian and former General Motors vice chairman Bob Lutz, a legend in auto circles, are currently negotiating a deal to buy Fisker out of a negotiated bankruptcy.

    Although both electric vehicle companies started offering cars with hefty price tags beginning at nearly $100,000, Tesla has been able to produce less expensive vehicles more quickly. Its model S, available since 2012, retails for $70,000 and Its Model X, which Tesla says will be available in 2014, will retail for around $30,000.

    One reason for Tesla's ability to produce cars on schedule is that it manufactures them in California, not too far from its Palo Alto headquarters. That's a contrast to Fisker, based in Anaheim, California, which outsourced a major part of its operations to Finland.

    Design differences also mattered. Tesla has a patented battery that uses 6,000 or more individual cells that prevent it from failing all at once, a danger for Fisker's single cell battery. Tesla's all-electric design allowed it to collect carbon emission credits worth $70 million in the past year, adding to its bottom line this quarter. (Fisker's car uses both battery and gas, so it collected far fewer credit dollars.)

    That's not to say it's going to be all smooth sailing for Tesla. Industry analyst Menahem Anderman, president of Advanced Automotive Batteries, which produces research on electric batteries for vehicles, says Tesla has yet to turn a profit solely from operations.

    And then there's the hurdle of consumer acceptance. Mike Omotoso, a senior manager at LMC Automotive in Troy, Mich., says demand for all electric vehicles remains weak. LMV forecasts 40,000 electric vehicles will be sold in 2013 in the U.S. While that’s up significantly from 14,000 in 2012, its still only about one quarter of one percent of all expected car sales this year.

    "Electric vehicle sales will be miniscule for at least the next seven to 10 years," Omotoso says.


  • Niner Bikes’s CEO, Chris Sugai, hard at work testing one of his company’s bikes.

    A bike company CEO explains how he keeps his company together when his employees are so far apart.

    Niner Bikes is based in Fort Collins, Colorado, but CEO Chris Sugai seldom goes there. Nor do many of the 30 employees at this high-end mountain-bike company.

    His accounting department is in Los Angeles, his marketing people are in Salt Lake City, and his quality-control staff is in Taiwan and Vietnam, where the company does its manufacturing. No one keeps track of employees' hours, and everyone is encouraged to go riding during the day. As for Sugai, he works mostly from his homes in Wyoming and Las Vegas. Ranked No. 827 on the 2012 Inc. 5000, Niner is on track to do $20 million in sales this year, up from $13.7 million in 2012.

    This rapid growth has been fueled by devotees of Niner's distinctive frames, which are designed around oversize 29-inch wheels. Below, Sugai shares some of the lessons he has learned while managing a fast-growing business with a widely distributed work force.

    1. Trust your people, but review quarterly. Letting employees work remotely is the best thing we've ever done. It was an idea that kind of arose organically as the company grew. In 2007, I hired our first engineer, who worked from Canada, where his wife was a lawyer. It worked out wonderfully. All we care about is that the work gets done properly. I think when you give people that power, they don't abuse it. Our process is simple. We do reviews quarterly, and we let go of those people who don't measure up to our standards. Typically, we lose only about one person each quarter.

    2. Words, pictures, and Skype. I set foot in our headquarters only three or four times a year, so technology is very important. Once a month, the entire company gathers on Skype to talk about whatever issues are coming up. Managers talk every week. High-quality communication is especially important with our overseas production team. One way we worked around the language barrier and time difference was to develop very detailed manuals that describe how every part is supposed to look and fit. That keeps production rolling while we're sleeping.

    3. Embrace the diversity that a dispersed team provides. Obviously, if your job is picking boxes in the warehouse, you have to work in the warehouse. We also want our design staff to be in the same office, because there is a lot of collaboration that goes on. But overall, I think having one office stifles innovation. People tend to pull ideas from their environment. Geographic diversity helps us make better bikes. For example, we have people in Arizona, where riding is a lot rockier and fine dust is a problem. We've crafted our bikes to deal with those issues.

    4. We bond over biking. One challenge is keeping the company culture unified throughout the entire group, because you're not always talking and communicating with everyone on a daily basis. It helps that we hire only people who are passionate about cycling. The staff is always trading emails about rides or bike-part purchases. Every year, we shut down the entire office and spend four days camping and riding mountain bikes together. The trips are a great culture builder and help keep everybody connected.



  • If you have an opportunity to build a big business, you first need to consider whether to grow organically or through acquisition.

    As we've worked with companies of various sizes to build businesses, we've noticed an interesting correlation between the size of the company and its growth approach. Small companies typically view business building as a "do it yourself" organic approach, while large companies tend to think first about acquisition.

    The truth is that companies of any size should be able to build a business using either method: organically or through acquisition. The key is building the right business case. Here is one approach we are currently using with a client.

    Step 1: Define Your "Burning Platform"

    Our client was experiencing a clear deterioration of its core business. There was no imminent survival danger, but the business model was changing as the company's primary distribution channel eroded. Other companies may see a change in preferences of their core customer segment or new competitor offerings. Each of these business model changes creates a "burning platform" to build a new business.

    Step 2: Outline the Case for an Organic Build

    After identifying the platform, you then need to outline the case for building it from scratch. This is most often the cheapest option and the one that offers the best chance to pivot as you learn more. But it may not always be the best approach. Here are the key questions to address:

    • What are the opportunities to pilot the new business model? Are there specific geographies or customer segments where you can pilot a new offering?
    • Who is your target customer?
    • What potential target segments are neglected by current competitors? What operating model would best and most profitably serve those customers?
    • What products and services would you offer / not offer?
    • What marketing messages should you convey?
    • How do you avoid being just another competitor in a standard market? How do you competitively differentiate?
    Step 3: Outline the Case for an Inorganic Build

    Buying a company may be a faster and sometimes most valuable way to build the business. Ask these questions to determine whether it's the optimal approach:

    • What acquisition opportunities are available?
    • What are the financial and organizational costs and benefits to making an acquisition?
    • What are the funding options? Is this easier or harder on the balance sheet than an organic build?
    • What advantages can you capture in terms of time to market, customer acquisition, and overall investment cost?
    • What is the cost of failure, and how does this compare to the organic option?
    Step 4: Align On an Action Plan

    The action plan needs to ensure that the management team has a clear path to follow, with accountability and the ability to make decisions without sinking too much investment in the process. Make sure you address the following:

    • Is an organic or inorganic build a clear optimal choice, or should you create a hybrid approach and learn more?
    • Who will be accountable for delivering critical elements of the plan?
    • When and how will you make go or no-go decisions for each stage in the process?

    It's possible to develop a better and more profitable route to growing a business. It starts with asking the right questions to determine whether building or buying is the best approach.

    Send us your questions on build vs. buy strategies. We can be reached at karlandbill@avondalestrategicpartners.com.

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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

    Santa Anita Race Track | 285 W Huntington Drive, Arcadia CA 91007

    2PM - 4PM

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    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.