Category Archives: entrepreneurship

The Numerous Mental Disorders You Probably Have As A Founder

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“God, did I just actually think that?” 

Many have wondered what goes on in the minds of the people who go on to start successful companies.  Some may think pure ambition, hopes of everlasting riches or even recognition for doing something great are the driving forces behind a founder.  Others might believe people have a vision or some sort of predestined aura working beyond their comprehension to align the lucky ones with the future.

Whatever is going on behind the scenes of a founding entrepreneur , you can be sure it’s straight out of a psycho-thriller.  The thoughts, feelings, emotions and urges pushing a founder toward success are so dramatic there are no words to accurately describe the experience.  The question is are these normal?

I have no idea what the hell I am doing and where this company will actually end up?

Entrepreneurship is basically a physiological disease, with various mental disorders running rampant.  Being an entrepreneur is something far different than what most people think. It is not about behavior; it is not about business type; and it is not about title. Instead, it seems as if it’s a personality trait with it’s own quirks and characteristics.  There are plenty of small business owners and start-up founders who do exceptionally well — but are not what would be considered an entrepreneur. Just like in big business, you can be a successful general manager without being an entrepreneur or entrepreneurial.

Dammit!  That guy is worth hundreds of millions more than me!!  All he did was start a photosharing app…  What’s he got that I don’t?

So how do you determine if someone is an entrepreneur ?  And are entrepreneurs actually crazy by normal society standards?   That seems to be up for debate.  A thin line separates the temperament of a promising entrepreneur from a person who could use, as they say in psychiatry, a little help.  Academics and hiring consultants say that many successful entrepreneurs have qualities and quirks that, if poured into their psyches in greater ratios, would qualify as full-on mental illness.

If it’s a disease, entrepreneurship then is a combination of many mental disorders that when found in correct combinations, come together to form a very unique individual.  Entrepreneurs are all in all the time. Entrepreneurs love what they do and obsess over it. It is a predisposition; a path that has already been laid for you. It is a character trait, a labor of love, a zeal that cannot be trained, a condition that cannot be treated, an illness that cannot be caught. You’ve either got it or you don’t. Even the Quora community has determined mental disorders are associated with founders.

Wait… did or didn’t I know this was going to happen.  Was it a dream?  I could have swore we already figured this #@%^ out!   Geez, I have no idea when the last time I got a full night’s sleep.

What mental disorders are to be found more common among entrepreneurs than the general population?  After realizing my personal thoughts were “uniquely abnormal” and after numerous interactions with founders of other companies (and discovered the same weirdness), I determined to do some further research.  What follows is an attempt to describe the most common mental disorders associated with the general entrepreneur with descriptions found on Wikipedia.  I came to choosing these specific ones from familiarity and similarity, meaning I noticed a strong association with a founders psyche when reading the definitions.

Anything sound familiar?  As you read these you will start to realize we all are a bit “off our rockers.”  Yet also apparent from reading this list is the notion that maybe the entrepreneur is the lucky one who can actually channel their craziness in a way that actually moves society forward, not backward.

(*please note I am only suggesting it is just the combination of some or all of these in small doses that make up the general entrepreneurial psyche)

Asperger syndrome

Aspergers syndrome an autism spectrum disorder (ASD) that is characterized by significant difficulties in social interaction, alongside restricted and repetitive patterns of behavior and interests…. The lack of demonstrated empathy is possibly the most dysfunctional aspect of Asperger syndrome.  Individuals with AS experience difficulties in basic elements of social interaction, which may include a failure to develop friendships or to seek shared enjoyments or achievements with others (for example, showing others objects of interest), a lack of social or emotional reciprocity, and impaired nonverbal behaviors in areas such as eye contact, facial expression, posture, and gesture.

People with AS may not be as withdrawn around others as those with other, more debilitating, forms of autism; they approach others, even if awkwardly. For example, a person with AS may engage in a one-sided, long-winded speech about a favorite topic, while misunderstanding or not recognizing the listener’s feelings or reactions, such as a need for privacy or haste to leave. This social awkwardness has been called “active but odd”.

Get the hell out of my face right now!  Geez, can’t you figure anything out!   And why do you complain about everything all the time.  You should be grateful you work for a kick ass startup.  

Cognitive disorders

Most common mental disorders affect cognitive functions, mainly memory processing, perception and problem solving. The most direct cognitive disorders are amnesia, dementia and delirium. Others include anxiety disorders such as phobias, panic disorders, obsessive–compulsive disorder, generalized anxiety disorder and post-traumatic stress disorder. Mood disorders such as depression and bipolar disorder are also cognitive mental disorders. Psychotic disorders such as schizophrenia and delusional disorder are also classified as cognitive mental disorders.

This company is worth half what is what worth last year.  I’m a loser.  

As an entrepreneur, depression can set in as well.  It happens to the best of us, especially entrepreneurs who hold strong feelings about their performance and the inevitable outcome of their company.  Ben huh, CEO of Cheezbeuger Network recently opened up about his challenges with depression.

Mania

A manic episode is defined in the American Psychiatric Association’s diagnostic manual as a period of seven or more days of unusually and continuously effusive and open elated or irritable mood, where the mood is not caused by drugs or a medical illness and (a) is causing obvious difficulties at work or in social relationships and activities, or (b) requires admission to hospital to protect the person or others, or (c) the person is suffering psychosis.

To be classed as a manic episode following must have been consistently prominent: grand or extravagant style, or expanded self-esteem; reduced need of sleep (e.g. three hours may be sufficient); talks more often and feels the urge to talk longer; ideas flit through the mind in quick succession, or thoughts race and preoccupy the person; over indulgence in enjoyable behaviors with high risk of a negative outcome (e.g., extravagant shopping, sexual adventures or improbable commercial schemes).

Schizophrenia

Schizophrenia is a complex mental disorder that makes it difficult to tell the difference between real and unreal experiences, think logically, have normal emotional responses, and behave normally in social situations.  Schizophrenia symptoms usually develop slowly over months or years. Sometimes you may have many symptoms, and at other times you may only have a few.  People with any type of schizophrenia may have difficulty keeping friends and working and they may also have problems with anxiety, depression, and suicidal thoughts or behaviors.

At first, you may have the following symptoms:

  • Irritable or tense feeling
  • Difficulty sleeping
  • Difficulty concentrating

As the illness continues, problems with thinking, emotions and behavior develop, including:

  • Lack of emotion (flat affect)
  • Strongly held beliefs that are not based in reality (delusions)
  • Hearing or seeing things that are not there (hallucinations)
  • Problems paying attention
  • Thoughts “jump” between unrelated topics ( “loose associations”)
  • Bizarre behaviors
  • Social isolation

Oneirophrenia

Oneirophrenia is a hallucinatory, dream-like state caused by several conditions such as prolonged sleep deprivation, sensory deprivation, or drugs (such as ibogaine). From the Greekwords “ὄνειρο” (oneiro, “dream”) and “φρενός” (phrenos, “mind”). It has some of the characteristics of simple schizophrenia, such as a confusional state and clouding ofconsciousness, but without presenting the dissociative symptoms which are typical of this disorder.

Persons affected by oneirophrenia have a feeling of dream-like unreality which, in its extreme form, may progress to delusions and hallucinations. Therefore, it is considered a schizophrenia-like acute form of psychosis which remits in about 60% of cases within a period of two years. It is estimated that 50% or more of schizophrenic patients present oneirophrenia at least once.

Narcissistic personality disorder

Narcissistic personality disorder (NPD) is a personality disorder  in which the individual is described as being excessively preoccupied with issues of personal adequacy, power, prestige and vanity.  Narcissistic personality disorder is closely linked to egocentrism.  Narcissists also tend to be physically attractive on first impression, giving them advantages when first meeting people.  Some individuals believe that Narcissistic personality disorder seems like the the person suffering has high confidence and a strong self-esteem, however this is not always the case.

Megalomania

Megalomania is a psycho-pathological condition characterized by delusional fantasies of power, relevance, or omnipotence. ‘Megalomania is characterized by an inflated sense of self-esteem and overestimation by persons of their powers and beliefs’. Historically it was used as an old name for narcissistic personality disorder prior to the latter’s first use by Heinz Kohut in 1968, and is used these days as a non-clinical equivalent.

Arguably, however, ‘in addition to its pathological forms, megalomania is a mental behavior that can be used by any individual as a way of coping with distress linked to frustration, abandonment, loss, or disappearance of the object’ in everyday life. In this sense, we may see ‘megalomania as an extreme form of manic defense…against the anxiety resulting from separation from the object’.

In the social world, ‘megalomania…can be a characteristic of power-drunk or control-freak dictators, some executives, some politicians and some army generals’. All such figures may be said to have ‘a “Big Ego”. A baby’s ego, in fact, insufficiently shrunk….So they’re much more likely to miscalculate To offend people’.

Psychotic disorder

Psychosis (from the Greek ψυχή “psyche”, for mind/soul, and -ωσις “-osis”, for abnormal condition) means abnormal condition of the mind, and is a generic psychiatric term for a mental state often described as involving a “loss of contact with reality”. People suffering from psychosis are described as psychotic. Psychosis is given to the more severe forms of psychiatric disorder, during which hallucinations and delusions and impaired insight may occur.

People experiencing psychosis may report hallucinations or delusional beliefs, and may exhibit personality changes and thought disorder. Depending on its severity, this may be accompanied by unusual or bizarre behavior, as well as difficulty with social interaction and impairment in carrying out daily life activities.

Brief hallucinations are not uncommon in those without any psychiatric disease. Causes or triggers include

  • falling asleep and waking: hypnagogic and hypnopompic hallucinations, which are entirely normal
  • bereavement, in which hallucinations of a deceased loved one are common
  • severe sleep deprivation
  • sensory deprivation and sensory impairment
  • Caffeine Intoxication

Studies with sensory deprivation have shown that the brain is dependent on signals from the outer world to function properly. If the spontaneous activity in the brain is not counterbalanced with information from the senses, loss from reality and psychosis may occur after some hours.

Perfectionism

Perfectionism, in psychology, is a belief that a state of completeness and flawlessness can and should be attained. In its pathological form, perfectionism is a belief that work or output that is anything less than perfect is unacceptable. At such levels, this is considered an unhealthy belief, and psychologists typically refer to such individuals as maladaptive perfectionists.

Hamachek describes two types of perfectionism. Normal perfectionists “derive a very real sense of pleasure from the labours of a painstaking effort” while neurotic perfectionists are “unable to feel satisfaction because in their own eyes they never seem to do things [well] enough to warrant that feeling of satisfaction”.  Burns defines perfectionists as “people who strain compulsively and unremittingly toward impossible goals and who measure their own worth entirely in terms of productivity and accomplishment”. Perfectionism itself is thus never seen as healthy or adaptive.

This button looks like shit!  And it should be over there, not here.   This shade of red sucks and makes my eyes hurt.  And why the hell do I have to tap this to do that?  This just has to be perfect before we release it!

In its pathological form, perfectionism can be very damaging. It can take the form of procrastination when it is used to postpone tasks (“I can’t start my project until I know the ‘right’ way to do it.”), and self-deprecation when it is used to excuse poor performance or to seek sympathy and affirmation from other people (“I can’t believe I don’t know how to reach my own goals. I must be stupid; how else could I not be able to do this?”).

In the workplace, perfectionism is often marked by low productivity as individuals lose time and energy on attention to detail and small irrelevant details of larger projects or mundane daily activities. This can lead to depression, alienated colleagues, and a greater risk of workplace “accidents. Adderholt-Elliot  describes five characteristics of perfectionist students and teachers which contribute to underachievement: procrastination, fear of failure, the all-or-nothing mindset, paralysed perfectionism, and workaholism. In intimate relationships, unrealistic expectations can cause significant dissatisfaction for both partners.

As you can see, being an entrepreneur is a unique combination of actual mental disorders. Pretty interesting, huh.   It is in how the individual decides to channel their “unique characteristics” where we find true greatness.  I hope this doesn’t scare you.  I hope it gives you a better understanding of who you are (or who you are dealing with) on a daily basis.

Quality Writing Skills Are The Best Way For Startups To Get Discovered

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Publishing on social sites and writing blog posts has a direct effect on traffic (and thus eventual usage) to Seconds.  Looking at Google Analytics numbers for November 2011, direct access to the site led the way.  The next question is how did those people know to go directly to Seconds, or Order SM at the time?

1. (direct) / (none
2. google / organic
3. t.co / referral
4. angel.co / referral
5. entrepreneur.com / referral
6. facebook.com / referral
7. quora.com / referral
8. soentrepreneurial.com / referral
9. dev.ordersm.com / referral
10. geekwire.com / referral

Looking past the first 2 (direct and google), you can see the next 8 are all social and publishing oriented.  The thing to realize is most of the direct visits originated one way or another from the other sources.  Not being even 4 months old as a company, the most predominant way people hear about our company and kick ass new concept is through written words – social sharing, articles and blog post.  As the weeks continue more and more people are discovering Seconds from one of our publishing avenues.  They may not click through the link (that is how it’s measured) but opt to just type in our url the next day.

Causation or correlation aside, it is pretty obvious we must continue to publish as we proceed our initial rollout.  We must drive awareness of Seconds and our mobile commerce platform through our publishing skills.  Here are the main ways make noise and get the word out:

Publishing to this blog, So Entrepreneurial

Seconds Dev blog  

Nick guest Contributing on Business Insider

Nick guest publishing on GeekWire

Twitter sharing

Facebook sharing

AngelList updates and links

Writing is a strong suit for our a team and we will never stop being creative in our noise making.  Emerging startups need to do anything they can to make noise and get discovered.  The key is to find your strength, identifty what you are good at and determine to ride that skill for everything it’s worth.

Siri And The Last Mile To Utopia

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The amazing Siri, Apple’s new voice recognition technology, has been the topic of much conversation over the last month.  I too am left speechless when asking questions that at first blush seem ridiculous.  Responses to questions such as “Siri, what do you look like?”  or “Siri, will you marry me?” will elicit laughter and jaw dropping looks only magicians are used to seeing.

All fun and games aside, what Apple (not Microsoft) just released represents a fundamental shift in how we will interact with computers – and to an extent the rest of the world.  Even Eric Schmidt knows we will no longer type things into a long search box and wade through a sea of links to find what we “think” we are looking for.   We will also not be required to re-identify ourselves and re-enter our credentials each time we want to make a digital purchase.  I previously believed the future of search will be found within your loose contacts and network of friends – and  still do.  But in addition to leveraging others to find information, it has become very apparent we will now leverage new blends of artificial intelligence and intelligent data systems integrated within our mobile devices to create very personal consumer experiences.  And we’ll accomplish this all this through simple text, voice and gestures thanks to natural language processing within your mobile.  Like it or not, in a very short period of time you will not be able to properly function in society without your trusty device.

Simple and inane tasks can already be accomplished through Siri.  Speaking basic directives into your phone will help to find any personal contact you have in your phone.  Such things as setting reminders, alarms, meetings, checking email, checking the weather, searching the web to look up random information and interestingly enough just having a plain conversation with your phone can now be done by voice dictation.

And the big one – sending text messages to others by speaking to Siri – has the potential to change society in ways you never thought possible.  A quick spoken message gets translated into text and sent off to the exact recipient you have determined, all without clicking or finger swiping anything is simply amazing.  And it’s now here.

Siri (or nicknamed Hubotsiri) is the latest in a long line of iOS features to be stretched to the limits, enhancing functionality, capability, and allowing users to realize the full potential of technologies within their devices. Much like buying a Ferrari – you pay a lot, it looks nice, runs well and oozes luxury. Yet until you get it off-road, you can’t really see what it’s capable of due to the restrictions beset upon road users.

As impressive as Siri can be, we still hear naysayers balking at the current ineffectiveness of the technology.  They say it’s not perfect, it can’t yet complete complex tasks such as interacting with the Apps on your device, and when in doubt it defaults to a web search for your request.  Although I am fascinated with Siri I must agree we have only scratched the surface and more work is ahead.

It seems Apple has figured out how to voice activate basic tasks, but what about more practical applications that can make your everyday life easier and more fluid?  How will voice translation and Artificial Intelligence radically transform how you go about your everyday life?  Below is an attempt to peel the layers on what it will take for society to get away from the absurd  and onto the applicable.

Siri, Can You Please Make My Life Easier?

Imagine being able to say things like “send a message to the coffee shop and tell them I will be there in 10 minutes and I will have the usual” and by the time you get there your correct drink it sitting on the counter already paid for.  This is not too far off… it just requires a few more pieces to be put in place.

The answer lies in understanding what exactly Siri is, what exactly are those other pieces, and how they need come together for the above scenario to become reality.  Siri is basically a search engine, one many think has the potential to eat Googles Lunch.  Or better said, it’s a “do” engine in the sense that you can dictate what you want done and Siri will mostly carry out the task.  I say mostly because even though Siri represents the first mile, the possibilities can only become reality when something else comes in as the last mile to fulfill  your request.  Siri can accomplish any task as long as the information is readily available and in the correct form to be delivered to the user.  Would Google have worked so well if there were no links to bring back?

So for Siri , or any AI from a mobile device for that matter, to connect and help you easily communicate with your local community the last mile must be completed in a way that makes sense for Siri.  One can communicate with Siri in audio/voice, yet Siri communicates with databases and other systems via bits.   The last mile must be accessible via the web, enabled to send and receive text based communications, and ultimately be built from the ground up using data as the foundation.

We can see from the article How Siri Works we have a long way ahead to complete the last mile. Siri can’t understand everything. It can do a certain set of key tasks.  From the article:

  • Interact with the calendar.
  • Search contacts.
  • Read and write messages (text and email).
  • Interact with the Maps app and location services.
  • Forward search phrases to certain pre-defined data providers (Yahoo! Weather, Yahoo! Finance, Yelp, Wolfram|Alpha, or Wikipedia).

This is still an impressive and—most importantly—wildly useful set of functions. But it is a limited, focused set. And that’s what makes me think Siri’s “AI” may actually work.

It seems to me that Siri consists of three layers: a speech-to-text analyzer, a grammar analyzer, and a set of service providers. If all three of these work well, then Siri will be fun and helpful. If one of them is as troubled as traditional intelligent agents have tended to be, then Siri will go the same way those other agents went—tumbling into the trash heap of misguided innovations.

Unfortunately, most of the rest of the world does not make sense to Siri. Yet.  Although searching Google will bring back (s0me sort of) local merchant website for most entities in the U.S. and around the world, they are still stuck in the analog world when it comes to communication, interaction or commerce.  Most merchants still require a voice call to reach them and when wanting to transact, one must be present with cash or credit card.   “Forward thinking” merchants offer online and mobile app transaction options, yet the experience is so cumbersome most people give up and take the extra time to physically make the purchase.

Siri will truly transform your life once the last mile is complete.

Ironically the traditional telephone served as the last mile for quite some time, when the most popular connection between two recipients was voice line.   Voice ruled the land  until data – better known as text messaging – became the most popular mode of communication for our new society.  Although the web is based in ‘telephone’ connection, we now communicate in a vasty different language.  It is interesting to note more than 2.2 trillion text messages were sent in the last year, yet little to none were received by local merchants.

Yeah, you read that right.  Imagine that, the most popular mode of communication is not accepted at any place of business in your community.  This would be like you walking into a merchant and asking a question in english (the obvious main language here in the United States) and they don’t even look at you or say a word.  Yet that is exactly what is happening today with mobile messaging.  The fact that more messages will be sent next year than last year, and even more will be sent the next year should be freaking out any manager or business owner right now.  If consumer activities are to be automated through voice diction, short messaging and artificial intelligence then somethings need to change.

The last mile is comprised of a few major technological enhancements that, when adopted, will complete the transformation and bring this new vision into reality.

Merchants need a short messaging service

It is fair to say text messaging has taken over as the most common form of digital communication on the planet.  For a bit of perspective, just look at your own life.  What do you use more often with your mobile phone, text messaging or voice calls?  Local merchants must get up to speed and find a simple way to send/receive text messages to optimize their business for mobile commerce.  Arguably, this is a bigger deal than in the mid-90’s when everyone was touting “you need a website.”  We are talking about basic communications and commerce.   In the next few years we’ll see a fundamental shift in the economy as merchants and business adopt this popular method of communication and use it as new form of commerce.  An interesting note: once a merchant is set up to receive text messages, mobile users are able to simply voice dictate messages to quickly place an order with the merchant using Siri.  It’s awesome!

Customers and merchants need a personalized connection

Personalization and socialization are the new black on the web, yet even today when I call a local merchant they still ask me to identify myself and request I read my payment information (aloud) if I want to make a purchase.  Interestingly, this does not change when I am present.  As I walk in the door they have no idea who I am, how many times I have visited their location, and what my purchase history with them might look like.  In a word, they are ignorant.  They lack the necessary and vital information to not only improve their operations but also make my customer experience much much better.

A whole new world of possibilities opens up when personalized connections between customers and merchants is available.  Customers are able to quickly find and message a merchant, requesting more information and making purchases when and where they feel most compelled.  Merchants are not only afforded a more efficient method of communications, but a unique perspective on each customer and a clearer picture of their entire customer base – in real time.  The possibilities are endless when local merchants fully embrace the mobile world.

Mobile Payments need to be invisible

Connections between customers and merchants are great but what both are actually looking for is the almighty transaction.  The more simple and frictionless the transaction the more we, as customers, will spend.  This should be music to a merchants ears yet there seems to be some resistance to employing new digital payment technologies.   This challenge/opportunity falls back on the tech community, nudging us to continue on forward with our innovative genius at the helm.

Technically speaking, when a transaction occurs neither I, as the customer, or them as the merchant should have to do anything.  If I have already connected digitally with the merchant and my payment credentials have already been cleared, payment should be invisible from then on.  Yes other requirements such as security and merchandising are involved, but those should also be taken care of behind the scenes.  But, I am so bothered right now!  Why do I still need to stand in a line for them to swipe my card and require my signature before I leave?  This is archaic, and if enhanced to the above scenario the merchant will not only provide a better customer experience for me but increase throughput leading to an increased bottom line.

Mobile coverage needs to improve

This one needs no justification, only a fair request to the major  mobile carriers of the world.  What good is Siri if I can’t get a response?  Flat out, we need better coverage and we needed it like, yesterday.  If mobile devices are going to be the center of our lives we cannot be at the mercy of “the number of bars” we have at a certain location or the chance opportunity we still have 3G at the top of our device.  Again, we are encroaching on a time in history where if my mobile device fails me, I am hopeless.  It kind of like if at certain times my Visa card worked when swiped, and sometimes it just didn’t… for no reason at all… except for maybe the restaurant was positioned on the wrong side of the street.  Yeah, I know… This is absurd and it needs to change.

The above may seem crazy to some but to others like us it’s the reality we are working towards each day.  We live in a truly amazing time in history and when the four things I just laid out come together… only Utopia waits.

Here’s A Happy Thanksgiving To The ‘Dudes’

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Here is a short Thanksgiving message I sent to my team today.  As I re-read it, it become apparent how thankful we must be for the “lucky” turns life can take.

Happy Thanksgiving dudes. I am thankful for being a part of this great team and this most incredible opportunity. A simple article from me and a quick email from Jacques changed my life forever… and I am very grateful for that to happen. Also, as I look around us and think of what we have done in just a few months, we have been blessed with some great people as Advisors and others coming out of the woodwork offerring to help us. Never forget some things are inevitable. Let’s keep working our asses off.. great things are going to happen.

On a random day in August 2011, without a job and without much money in the bank…. I wrote an article titled“Ice cream is great, but utilities make the world go around” and got it published on GeekWire here in Seattle.  Amazingly Jacques Crocker, aka @railsjedi, read it and quickly emailed me requesting to meet and talk about some ideas.  At that meeting he mentioned reading my stuff and believed have similar visions and would work well together.  He wanted me to join and lead the team that would ultimately found the startup Seconds.  Immediately after that meeting, I knew my life was going to change forever.

I take little credit for this happening at the time it did.  Yes, working hard for many years afforded me the perspective and knowledge to be able to write articles such as that one.  But sometimes we are in the right place at the right time and luck just takes over.  In this, we need to be grateful and thankful for where we are in life.

Groupon, Google, Ebay or Amazon: Who Will Win The Local Market?

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No doubt he local space is heating up.  We are starting to see an all out war and currently there are 4 major players lining up their guns and taking aim on the local marketplace.

Groupon recently went public on the Nasdaq and is the undisputed king of daily deals, creating a new movement in local commerce known as the group coupon.  Yet things are not all rosy as they also created quite a bit of controversy as they approached the finish line.  Their numbers are greatly scrutinized  and they can’t seem to shake questions regarding the validity and sustainability of their current model.  Groupon no doubt made a significant splash in the local space, but do they have what it takes to transform our daily consumer lifestyle?

Google’s eyes have been on the local economy ever since they realized a critical mass of searches are local in origin.  Early on they knew local was a goldmine, the tough part has been designing products which bridge the gap between local consumer and local merchant in a way that adds value for both.  Google Places, HotPot, the purchase of Zagat, the failed acquisition of Groupon, and now Google Offers are all attempts to make a play on the local marketplace.  But to date it is hard to argue they have made any significant progress in solving the local market conundrum.  Will they do it?

EBay, the buyer/seller marketplace who has lingered on the outskirts of the web for more than a decade (and hinged earnings on a payment platform) looks to be emerging as a solid player in the local marketplace.  The combination of a number of acquisitions have placed them in a drivers seat helping power the next generation of location specific platforms.  Milo, Magento, Zong and Where all offer unique value propositions that when grouped together create a strong combination – and a strong competitor to the Googles and Amazons of the world.  This is one to watch…

The king of worldwide online commerce is Amazon, and I guarantee they their sights are set on the last mile of the web – the local market.  Their $175 million investment in LivingSocial seem a lot like a “look and feel” investment as they watch how the landscape is taking shape.  Make no mistake, the leader in worldwide e-commerce would love to be the worldwide leader in local commerce as well.  The question is, do they know how to do it in the way the everyday consumer will appreciate?

Ultimately, it is nearly impossible to predict who will eventually win out in the local market.   Remember, Google was late to the search party…

Another valid question is: will any of these major players hit the home run or will a new, tremendously different but effective startup with a better combination of commerce and communications transform our everyday consumer experience?

Share your thoughts in the comments.

 

“Hey, I’ll Have The Usual.” The Emergence Of Consumer Repeatability

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Let’s face it, life as a consumer today can be somewhat frustrating.  Given the advancements in mobile phones, the social web and auto-payments, by 2011 one would think interacting with local merchants would be a bit more,  shall I say… enjoyable.

Yet here we are, still required to actually think about where we are going to eat, look up the merchant online, make the call, hope they answer, talk to the person (with possible language barriers), repeat the same thing I told them last time, read each number of my credit card and expiration date out loud, and then wait for my order with no idea when it will be ready.

Ever sit back and watch people as they are waiting for food in a restaurant or service at a local merchant?  You’ll notice heir heads are down, palms out and thumbs moving.  Most people I speak with seem tired of wasting precious moments of their life standing in line or being idle waiting for something; inevitably they resort to grabbing the closest thing they can find for distraction.  Indeed, they are using some device to surf the web, text a friend or read an email.

In light of the recent $50 million Series E funding for GrubHub and all the hoopla over the daily deals space, I thought I would evaluate the state of the local commercial market and the current web options.  Semil Shah does a fantastic job of starting a conversation about what is emerging on the merchant side of the equation, but since the local market is quite deep with numerous verticals this post will focus on the local restaurant and ordering experience from an end consumer  point of view.

My goal is three-fold:  First to describe where the market is currently; second to illustrate the inherent problems, and lastly to give an idea on the direction of where the local space is heading based on consumer and general societal trends.

The Current Local Consumer Experience

The current local consumer experience can be summed up by the word “discovery”.  Observing the options established thus far, most are built for a consumer to use when they are looking for a “new ” food experience.  Apparently we  have become obsessed with creating a plethora of ways to find the new, whatever  it may be.  Also interesting is the realization that most are already antiquated because they were designed with the online consumer in mind with little consideration of the mobile experience.  This is why, as you will see below, web based ordering and communications with local establishments has yet to experience mainstream adoption.

Online Ordering

  • GrubHub, SeamlessWeb, Snapfinger and many others allow users to place orders online with local restaurants.

Daily Deal Sites

  • Groupon, LivingSocial and the others bring users massively discounted deals on random things around the local community

Table Reservations

  • OpenTable is the king of online reservations for local restaurants

Local Recommendations

  • Yelp, Urban Spoon and a few others allow people to research comments and recommendations on local places of interest

Social Discovery apps

  • Downloadable apps help users find new places,including places others have checked into and commented on

It is obvious with a little research in the online ordering space for instance, a great chasm  still exists.  There are about 500,000 restaurants in the U.S. and 90,000 in canada. About half are chain (franchise) stores. About half the chains supposedly have some kind of online and/or mobile online ordering system (custom apps) but as we go into these stores to inquire about online ordering, nobody at the store knows what we are talking about.  SnapFinger has over 500,000 restaurants in it’s directory but you can only use it’s online ordering for about 30,000 of them. Grubhub (including it’s aquisitions –> CampusFood and AllMenus) has about 300,000 in it’s directory but only about 25,000 you can use online ordering. Eat24Hours estimates it has about 12,000 signed up for online ordering but when you check their directory there are lots and lots of restaurants listed as “closed”.

Going further, the user experience with current mobile ordering apps is atrocious.  Here is an experience I had recently during a trip to San Francisco in which I reported back to our team .  (specific names have been removed)

Mobile Ordering App A. To put it bluntly, they sucked.  And their execution, amongst many others, is why “mobile commerce” has not taken off.  The experience is just terrible and based on their current model there are just too many wires left unconnected.  When I got to  (local restaurant) I asked the guy at the counter if they accepted mobile ordering and payments and he said NO with a questioning look on his face. Interesting, I thought…  because there they were right on the app.

Using a nicely designed mobile app I was able to browse many different cities, restaurants, categories, menus, etc.. I found (local restaurant) and after minutes of clicking and scrolling I ended up trying to buy a “beer” (didn’t allow me to actually determine what kind I wanted) from the mobile app as I sat right outside the restaurant on the patio.  Yet, after going through the entire process and once I clicked purchase…. nothing happened. Pay $4 and nothing else?  No one communicated back to me and no one brought out my beer.  Seriously, nothing happened!  Weirdly, I received a message from ______ through the app the next day saying “Hi Nick”.  I responded with ” Hello” and then nothing else came back. This experience was just ridiculous….

Amazingly, this not-to-be-mentioned mobile app is being touted as a hot new app with great potential.  Unfortunately I must disagree.  The current online ordering websites are not any better, here is an perspective from a recent correspondence I had with a user of an online ordering site.

“…Should mention one more thing about online ordering at a restaurant with lots of chain stores. Most of the time you have to go to the brand (i.e. Subway, Five Guys, Pizza Hut, PF Changs, etc.) home website and then enter a zip code or some kind of locator information after which you find a store to order from. It’s not a local experience. It’s a top down kind of thing. I don’t think patrons like that. If I want to order something at the PF Changs in Bellevue, why do I have to navigate through all the PF Changs around the world?  I’m in bellevue. Just show me the bellevue PFChangs.

So, bottom line is the only tried and true option for a consumer is to just look up a phone number and call ahead or show up in person – ya know, what we did back in 1970.  This is a growing hassle and something needs to be done.

The Everyday Consumer

There is a certain disconnect right now in respect to 1) how we live as consumers and 2) available mediums for local merchants to connect with customers.  It might help to review a few obvious aspects of the local consumer experience that, when brought to light, will allow us to discuss what is now possible.   When I closely evaluate someone going about their everyday life I see peculiar phenomena not currently leveraged by technology.  First, people frequent the same places on an ongoing basis.  They go to the same coffee shops, restaurants, retail outlets, etc… you get the picture.  We are creatures of habit and if you stop for a moment in your own life you will start to see how you do this as well.   Second, at these places we mostly order the same things – lattes, pepperoni pizzas, t-shirts… you get the picture.  Again, we are very habitual creatures.  Think about what types of things you are ordering repeatedly…  Third, people love to be identified, called by name and have “uniquely personalized” experiences.  We love to feel special, to feel “in” and to feel like we have been upgraded.  When you walk into a bar or restaurant, how much better do you feel when the address you by first name?  And lastly, we are naturally mobile.  We are increasingly on the fly, in a hurry and the ever growing demand is that all aspects of our life keep up with our dizzying pace – using technology.  When was the last time you left the house without your mobile phone?

With all that being said, a quick glance back to the current state of the local consumer will show a void in the space becoming clearer.  Why is it that even though we are habitual consumers, all the consumer oriented options are built for discovery?  Why is it the industry is obsessed with bombarding our email boxes with half off deals at places we will never go?  Why is it that most local businesses live and die by their “loyal” customers, yet they keep getting trapped in the push oriented advertising?  Ask them, they will tell you they mostly see they same people week in and week out.  This was very interesting to us at Order SM.  On the consumer side, we found they want control of who connected with them and marketed to them.  We also found they demand immediacy when they want their food.  The current options for customers are anything but immediate.

The everyday consumer expects a frictionless interaction, one without miscommunications and mistaken orders.  The everyday consumer sends A LOT more texts than phone calls, and would greatly appreciate text based communications with local merchants, rather than having to speak to someone on the phone.  (funny we have become this type of society).  And consumers seek personalized interactions with local merchants, having them remembering previous orders creates an incredible consumer experience.  Ironically, with advancements in technology there seems to be is a growing desire for the way it was “back in the day”.

Where the Local Experience Is Going  –  “I’ll Have The Usual”

The era of Repeatability is now upon us.  All the pieces are in place – mobile devices, the mobile web, personalized networks and now direct web integration with local merchants.  Since almost all people carry some type of mobile device, customers now have a medium to communicate with their favorite local merchants, just like they communicate with their friends.  Now that we understand the everyday consumer, the idea of consumer repeatability driven through the mobile web starts to really make sense.  Being able to text “I’ll have the usual” to a local restaurant and everything else is taken care of behind the scenes is now possible.  Very Possible.

Think about it: just pull up the last correspondence in your phone and quickly send off a message to your favorite restaurants or cafes and say “Hey, I’ll have what I had last time, it was great!”  Since order history is provide in detail they will be able to respond with “got it Nick, your sandwich will be ready in 5 min…. Pay now or pay when you get here”.  Then you swing by, grab the order and go about your day.

Repeatability.  I have written previously on how utilities make the world go around.  This seems to be another area where utility comes into play – quick and easy communications with local merchants.  “Just make it easier for me to repeat the things I do each day of the week” is a statement I am starting to hear more often.  Just as the landline has been a century old utility for local merchants, something else is starting to displace wired communication – wireless communications.

That’s just kindergarden stuff.  Now imagine if that information was (anonymously) shot out to a public feed, where ALL orders and commercial information was aggregated and displayed (possibly twitter style) so people could quickly see what types of things were being ordered, purchased  and shared in a local area – in real time!  One could drill down into a specific cafe and see what is “hot” that day.  And if I found something interesting in that feed… with one simple touch I could purchase the same thing.  It’s now possible.

What if a merchant could know all their customers by name?  What if they could visually see Joe is a very loyal customer, this is his 55th visit, has an aggregated total spend of $1,445, his usual order is the #1 and tips well. To this merchant Joe is a very valuable customer.  Again, building around repeatability is now starting to make a lot of sense.

To make this a reality we need to get over this group deal stuff.  Loyalty is not found by offering bottom barrel prices; it is earned by providing quality products with great service.  Part of “great service” is meeting consumers at their level, and opening communication channels so they can connect with you.  Loyalty is going to be one of the most important actions in the next decade and every company – from small mom and pop shops to large tech behemoths – are looking for better ways to keep their customers.

@jnickhughes

Start It Series: How To Establish A Vision Worth Pursuing

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Start It is a documentary series on how Order SM, an early stage mobile commerce startup, is approaching the launch of their company.  It is intended as a helpful guide to anyone looking to build or grow a startup in today’s fast paced technology space. 

What you read may counter “generally accepted” startup practices in Silicon Valley or elsewhere but that’s what happens when you are a bit different. We are not Stanford Grads; we are not ex-Googlers; we are located in Seattle, not San Francisco; and we did not start off with a large network or initial funding sources. We are 21st century entrepreneurs and this is our story.  It’s a good bet most of you are none of those things either so we hope this may help you get off the ground.  Please feel free to reach out with comments or questions.  This is the first of many posts in the Start It Series.

Vision is arguably the most important piece of the Startup puzzle and has the power to chart your course as a new company.  While vision is paramount to startup success, it is amazing so few founders really take the time to determine what exactly is their vision.  If they can’t put into words, or worse, haven’t taken the time to fully grasp the reason for their company’s existence, trouble could arise down the road.

The Start It Series is a journey to the core of a young startup and an effort to bring to light major aspects of launching a successful company, which should be helpful to other early stage entrepreneurs and founders.  A plethora of startup incubators, accelerators and entrepreneurship classes are available to first time founders, yet there is not much coming directly from the sources – ones like us who are in the trenches.  It was clear to myself and my co-founders these sort of things aren’t written about enough; some secrets seemed held far off in the startup vault, not to be shared or spoken about in public spheres.

We wondered why… why is so much swept under the rug, left for the imagination when all of us founders encounter the same challenges, thoughts, fears, wonders, hardships and breakthroughs?  So rather than staying “mega-stealth”, we thought it was better to come right out and share our ideas on the founding a great companies.  It was in this realization we felt empowered to take the plunge ourselves.

Establishing a Vision Worth Pursuing

Vision, like Love, it is painfully difficult to describe and can manifest itself more as a visceral feeling or “sixth sense”.  Without vision, just as a relationship without Love, a pursuit becomes meaningless and self-serving.  But how do you turn a visceral feeling into a descriptive visual interpretation, complete with words and diagrams?  How do you take something vapor-like into something tangible?

Often it can be frustrating to be asked the question “So, what exactly is your vision?”   Your answer will depend on many different inputs, but mostly it starts with your purpose.

When forming a startup, one should start by asking themselves, “what will be the the purpose of this company?”  Another great thought is:  ”Why will the world be a better place because our company exists?”  The answers to these questions serve as beacons to what will emerge as your vision.

Since is is so difficult to define and describe vision, some may find it helpful to start by touching on what Vision in NOT.  This is not an exhaustive list, but it will help get across a very important point:

  • Vision is not an add-on feature to something already built.
  • Vision is not describing your company as “we’re Facebook for X” or Airbnb for Y”
  • Vision is not copying a “hot” idea and forming a new company with a off-shoot name eerily similar to the market leader.
  • Vision is not blindly founding a startup because it seems like the cool thing to do

Vision Is Transformative

Vision can be thought of as how you want the new world to function when your product or service is fully embedded.  It takes courage to look out over the horizon, piece together abstract concepts and proceed to built it with an unknown future.  Having Vision, by definition, is seeing what others don’t see and if successful enjoying the fruits others won’t enjoy.  Therein lies the challenge – coherently putting abstract thoughts together so you can accurately share it with others to maximize the impact of your vision.

Many questions, when answered, can lead to a detailed definition of your vision:

What does this new world look like?  

Imagine how the new world will function with your application or concept in place.  Think about today’s environment, what technologies are in play currently and what needs to change in order for your vision to be realized.

What has changed because of the value your company has created?

Looking at current markets and industries with “futuristic eyes” can lead to interesting conclusions.  Although most of us cannot see the future, we can deduce certain macro-movements such as mobile, social, environmental changes.

What is lacking or not present in the world today, that when your vision comes true, will be fulfilled and transformed?  

Visionaries are value creators; they create new industries and markets for others to play in.  The fundamental aspect of your vision can be found by answering this question.

In what ways can you look at older industries with new perspectives?

Taking a totally new perspective on publishing a “daily” will lead entrepreneurs to rethink how to deliver information to subscribers.  What other traditional industries can be transformed by using today’s technology.  Hint: all of them!

How can you rearrange and re-write an existing market value equation to bring it into the 21st century?  

Similar to above, it helps to start by looking at traditional industries and evaluate the value creation equation.  Once you can see it drawn out, rearrange it to find where new, more efficient value can be created.

Because of new advancements in technology, who is winning?  Who is losing?  

Find where incumbents are suffering from the innovators dilemma… and exploit this change in technology for your advantage.

How can that be sped up or slowed down?

Here is where your own innovation can give you a leg up on existing ideas.  Look at what is working today (social for example) and then combine new pieces to shorten user flows and time to market.  Fastest one usually wins today.

The answers to all those questions will lead to new words, which when combined together will lead to descriptive sentences about this new world.  Put these sentences together and start reciting them continuously, in private and around others.  Patterns will emerge and people will start reacting.  This new world you are describing is your vision.

The Truly Mobile Enabled Society

Order SM was spawned out of a few major insights when combined, create an incredible vision. Below is a brief walkthrough of how we got here.

First, we started to observe how the mobile device was changing every aspect of our lives.  (And we mean every aspect – communications, social, commerce, relationships, health, education…)  We remembered back in the late 90′s how e-commerce gave consumers a new way to purchase and transact around the world.  Yet when we looked at the everyday life of an average consumer carrying a web enabled device with them everywhere, amazingly they still spend most of their time and money transacting offline with local merchants in the local community.  This consumer experience has not been significantly enhanced in 30 years and is quickly become archaic to even the most average Joe.

Second we observed average consumer habitual activities and how they relate within local merchants.   Interestingly, it is not so much different than our social relations – namely consumers have tight knit and highly concentrated ”circles” where they spend the majority of their time.  Said a different way, we all are very habitual creatures.  We tend to frequent the same coffee shops, restaurants, health clubs, clothing stores, gas stations, etc… Many causal interviews have reinforced  our observation.  ”Yes, I pretty much go to the same places each week… and usually order the same stuff.  It’s quite annoying I have to repeat myself so much.“

Time for some logic: if people tend to be habitual then why is the hottest idea in the local market promising consumers new experiences and at the same time promising local merchants thousands of new customers through emailing discount coupons?  And more interestingly, why has this general theme been the promise of the entire adverting industry for so long?  Won’t people just habitually go to the same places regardless of mass discount and not pay attention to all this crazy advertising?  To us, it’s actually a waste of money to try to convert “non-loyal” customers, since the lifetime value of these one-timers is so low.  The traditional approach just seemed backward to us…

So we starting thinking critically and came up with a new view of the world.  What if we could flip the entire economy on its head and start again from the beginning, only the beginning was each individual person.  We envisioned a mobile enabled consumer, one that values both efficiency and high touch.  This consumer, if provided a platform through their mobile device, could reach out to connect with the merchants and businesses they care about.  They could open a two-way communication channel to serve both parties best interests.  We realized consumer purchase intent was the single most important action in the local commercial space.  Empowering a consumer to easily communicate and lead with intent (place orders or communicate) with a merchant goes quite a bit farther than delivering an unwanted coupon in an email box.

What if I could just text “I’ll have the usual” to one of my favorite places…. and they took care of the rest?

We also realized this equation must be balanced for value to the merchant as well.  Loyalty – realized through convince, relevance, and respect – was the second most important action in the local space and paramount to any merchant.  Local business want to know who their most valuable customers are, how often they are making purchases in their business, and what they are actually purchasing from their business.  Consumers care about loyalty as well; going back to the earlier example as a consumer, it’s not about delivering me random experiences I might never use to my email box but rather making my every day interactions more seamless, purposeful and valuable.

What if local merchants could see, organize and talk to their most valuable customers directly through the mobile web?

So there you have it, establishing vision take courage and requires deep thinking of why your company should exist in the first place.  The beauty is vision is always dynamic and change is inevitable so you don’t have to get it right off the bat.   Therein lies the incredible opportunity to any startup strong enough to stick their head out of the crowd, look ahead and say some things that may be a bit out there.  Go ahead, gaze into the future and determine why your company should exist.

@jnickhughes 

3 Clear Signs Your Startup Is Heading In The Right Direction

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Pinning down the main idea of a business and determining your startup’s core value proposition is a difficult task, especially for first time founders. It’s even harder when you are innovating in a uncharted waters, with lots of intangibles and no clear leader.   As entrepreneurs we tend to focus too inwardly and only see problems or possible solutions from our point of view.  Most of the time this does’t connect with others.

Yet taking the early steps to correctly position your company in the general public is one of the most important tasks on a founder’s to do list.  So how the hell do you know if you are even heading in the right direction?

Thankfully, there are some specific ways you can gauge your value proposition and see how it is fitting with your target market.  Listening to people when you pitch and observing how it’s coming across can lead to deeper understanding of your business.

Here are 3 clear signs you and your product are heading in the right direction.

Listen: People Are Demanding Your Solution

I recently attended StartupDay here in Seattle and had an experienced I will never forget.  A very well known CEO of a well-known company started his talk by noting great entrepreneurs first look for problems in their own lives, and then determine how best to solve them.  Next, he proceeded to list off some problems he sees in his life, and pretty much pitched our idea to the audience.  He quickly described the problem Order SM is attacking and demanded a solution. He said “interacting with local merchants and restaurants is such an inconvenience… will someone please give me a system where I can order food, like a burrito, without having to call the business. I just want to text the order to them, pay for it and just swing by to grab it. Someone please build it, cause I would use it!”

BAM!  He just nailed one of the main value propositions of Order SM, and we are rolling out with our beta test customers this week!

When I heard this and about fell out of my chair, since this speaker is well respected and anything they would request falls into the “good idea” category.   Talk about validation.

Do you hear people causally talking about the problem you are trying to solve?  And are they vehemently asking for your solution?  Hmm, better listen up!

Lesson: You know you are heading in the right direction when well-respected people are publicly demanding your solution in their lives.

Watch: People Get Excited When You Pitch

Each day when I am asked “what I am working on” or when I talk about Order SM, I proceed through my basic pitch. Every time, without fail, people react the same way. “duuuuude, I need that! I would use that all the time! This is a great idea…. When can I start using it.”  

When you pitch your idea, do people respond with that much excitement and energy?  If not, I hate to tell you but your idea is not good enough.  It just isn’t.  If people are not moved by the value proposition your concept holds, the fact is not enough people will use your service or technology for it to gain any attention.

It’s a tough pill to swallow, I should know.  My first attempt at a startup, Loyaltize, did not have a strong enough value proposition for people to jump at it. They usually would respond with “so, let me get this straight…. you guys are like…. and you are doing X and Y, right? Hmm, that’s interesting?” I hated the fact that I had to describe what we were doing like 3 times before they really got anything from my pitch.

Lesson: If people don’t jump out of their skin when you pitch your startup, do yourself a favor and go back to the drawing board to either re-word around a different problem or find a completely different idea.

Embrace: More And More Competitors

Competition is a good thing.  I get the feeling most founders are deathly afraid of any company, large or small, entering into their market with a similar value proposition.  Unfortunately that is a sign of weakness and lack of confidence in your own business.  I say: Awesome!  This validates, measures as well as directs my overall strategic alignment.  Bring it.

It seems like every day we are discovering new attempts around mobile ordering/payments/messaging for local consumers. Some seem to be going in a similar direction as Order SM; many are not. This is fine in our opinion. The market is so young and fragmented; it still has a long way to go in terms of maturity before one platform emerges as the definite market leader.

But one thing is for sure – it’s validated as an incredibly big market, a trillion dollar market in fact.  Anytime a market see’s increased attention and activity, big things are about to happen.  Mobile payments, mobile communications, mobile ordering, social commerce, local CRM – all these markets are getting red hot and are experiencing abnormal attention lately.  It will now come down to who can execute with the optimal technology, team on an appropriate time line.

If you are not seeing more entrants into your territory you should probably do some evaluation. The market might not be very promising or it’s too mature for any new players.  Identify this early enough and you might be able to make adjustments before it’s too late.

Lesson: If you are seeing growing action and innovation within your specific market, you are indeed heading in the right direction.

@jnickhughes

NYC, Seattle or Silicon Valley? If You’re A Flounder It Don’t Matter

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Every so often a proverbial argument reverberates around the tech world.

It will sound something like “How can we be more like Silicon Valley?”  or, “New York is now a more hip Silicon Valley”

We here in Seattle have even gotten some flack lately from predominant VC’s trying their best to state their respect for the city at the same time point out it’s obvious flaws.  That is a difficult position to hold for sure.

Then this was written last weekend on GeekWire.  Choice quote: What we do need is to go and build some fucking companies.

I must say I was a bit taken back with Kirill’s approach.  It just felt like someone blowing his hardest in an effort to make a forest fire burn stronger.

But ya know, I do agree with Kirill  in principal.  Yes, we all need shut up and go build some companies.  And let me also agree with others who are stating “there is just something unique about the valley… and as a founder you should start your company here.”  It does not take a genius to realize there are certain subtle aspects about Silicon Valley which can help founders build great companies.

But let me frame this argument slightly differently: If a founder builds the next billion dollar company outside the valley, is he in fact a better entrepreneur since he did it without the resources and luxury of Silicon Valley?  What if he did it without going to Stanford?  How about without being part of the latest YC batch?

I say Yes.

Or read differently: are we just mind-sweeping ourselves into thinking since we aren’t in Silicon Valley we cannot build great technology companies.  Although not the entire reason, I believe this is playing a somewhat significant role in the perception of the “Silicon Valley Only Success.”

Let me go on record as saying there is more than one city in the country.  There are also millions of people who (currently employer or unemployed) are not in the valley and would almost die for a great opportunity.  There is also something called the web, something that has connected humans and money like nothing ever before in history.  My point: proximity is getting less and less important is time goes on.

But Nick, why the typo in the title?

Being a Founder is one thing.  I think that describes the ones who start companies and instantly compare themselves to Silicon Valley . They use the word Founder like it’s a surname.  They are worried about “who funds them, who’s party they are going to, who will be their next prominent acquisition, who is writing about them, etc.. ”  Founders get sucked into tunnel vision, influenced by group think and worried what the Jones’s are doing.   They have two eyes looking straight ahead and focused on the ground.

Don’t get me wrong, these things are important to the success of a company.  But they are not the only thing  just as makeup, dresses and friends don’t really make the ultimate girl.

Being a Flounder is a whole other level of entrepreneur.  They have one eye on the ground and one on the horizon.  Ever notice flounders (the fish) seem to be looking in two directions at once?  That’s called vision.  And I believe the best entrepreneurs always have one eye on the ground (present) and one eye on the horizon (future).  They are Flounders.

A Flounder isn’t bothered by where he builds his empire.  He just builds it.  He doesn’t care if his company isn’t written about as the next hottest thing.  He builds it large enough and becomes the largest thing.  Flounders have such a strong sense of purpose they attract others to join the mission and turn any naysayer on their head with amazing and consistent results.  Flounders have an eerie way of being calm in the storm, so much so they freak you out.  Why?  Flounders can see what you can’t.

So next time you start to fall into the Founder hole, think Flounder.  Think Vision.  Think about seeing with one eye here and one eye over there on the horizon.  You will start to realize most of the B.S. all other founders are talking/bitching/complaining about really, in the end, doesn’t add up to much.  With better perspective Flounders see the big picture and stay the course.

@jnickhughes

One Leader Steps Down, This Leader Steps Up

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Today I learned the hard news Steve Jobs was stepping down as CEO of Apple, the worlds most valuable company and the envy of any honest person in the business of technology.  Like most people, I looked at Jobs as more a Saint, Monk, or Prophet; less of a businessperson.  Is this fair or even right?  Who knows… but he is truly one of a kind and I really don’t know what to say at this point.  What I do know is he set a damn high bar for me and all other leaders.  Thanks Steve.

So much is being written regarding the amazing performance of Steve Jobs I think I will leave it to them to tell you his story.

Instead, I will tell you mine.

You have no idea how many sleepless nights (in Seattle no less) have been spent tossing and turning, just wishing a great engineering team was standing behind my vision.  I have known for some time now a grand and transformational “something” is stuck deep down in my soul and needs others to help pull it out.  For so long I felt I just needed the right pieces to fall into the right place.  For so long it felt like a hope, a dream or a far off story only found true reading through Inc. magazine or TechCrunch or Silicon Alley Insider.

Well that dream has finally come true.

I have chosen to accept an offer to become CEO and co-founder of a promising startup here in Seattle, one just about to hit the public radar.  It really is like a dream come true and the vision we are setting forth is nothing short of transformational.  Keep an eye on this one.

A little Background – Loyaltize

Years ago something hit me like a ton of bricks and I had a vision:  The local economy was one of the one the last holy grail industries of the internet, not fully transformed by the consumer web as we know it today and ripe for change.  I also realized businesses function by and large through customer loyalty.  Most people intuitively understand 80% (or a majority) of a businesses revenue comes from 20% (or a minority) of their customer base.  This is natural and it will never change, you can ask Vilfredo Pareto on that one.

I also noticed local consumers have distinct relationships with specific businesses, and come-hell-or-high-water they will do business with them.  People have favorite restaurants, coffee shops, wine stores, clothing retailers, gyms, etc…  Why not reorganize the local economy around the consumer and their ability to dictate relationships and interactions with their favorite entities.  Allow them to choose who/what to follow and who/what to stay connected to and receive information from.  Ya know, around the loyal customers and their view of the local economy.   Why not Loyaltize?

Understanding that fact, it baffles me why the hell new “advertising” and “group coupons” and other crazy schemes keep popping up every day claiming to increase revenues, profits, customer bases and all other things push media in an effort to bring MORE customers in the door.  It ain’t about “offers” people.  To me, that is just ass backwards to how it actually works.

Businesses don’t want more flaky one-night stands, they want more long term relationships.

When I looked at the current technologies, business practices and the state of the local economy I saw inefficiency, ineffectiveness and little change from 20 or even 30 years ago.   I am sure I was not the only person who saw an opening, but I am positive no one has my exact vision.

Except This Guy

I was recently approached by a talented local engineer here in Seattle who wondered if I would be willing to talk about my ideas on Loyaltize.  He thought we had the same vision.  What he didn’t know was I had as so much given up on my dream of Loyaltize as the summer had progressed.  You see, I did have a startup at one time – a bootstrapped company we threw together called Loyaltize – but after failed attempt on version 1 we backed off and the team dispersed early this year.  Trying to build a startup while being employed full time is not the path for success (at least not for me).   Trust me, after almost 5 years of blood, sweat and tears, it’s a little tempting to throw in the towel and walk on home.

As some of you may know, in May I said “F-it“, kicked my full time job to the curb and doubled down on myself as an entrepreneur.  I figured one thing out – if I don’t fully believe in myself and do whatever it takes to succeed – why would anyone else believe in me?  Why would they believe enough to join or invest?  I also figured I would rather die knowing I tried everything possible to make my vision come true rather than feel regret as the years went by.

Side note: I also started writing on here, Business Insider and other publications, proving to be the smartest decision of my life.  No joke.

Throughout this summer I entertained different business ideas, different roles, different industries and even different approaches to business.  Nothing felt right.

Well, as we spoke that day something woke up in me and it felt as if an old friend had just come back into my life.  I am sure it was obvious to him as well.   The blood started rushing to my head and the vision started to come back to life.  I said to myself “I am home and it is time“.

Since timing is everything I will refrain from naming the company or any others involved.  But keep your eyes open, you will soon start seeing and hearing about it.  Our vision is eerily similar to what you read above and mark my words: your local consumer experience will drastically change in the next five years. 

Today I enter the next phase of my life.  As CEO of a new company, with a new life and a world of potential in front of it. I am set to make the best of it, whatever that means… be it lessons learned, acquisition, IPO or lifelong employment/retirement.

As I step up to be the leader of this company – and a leader in the technology industry as a whole – I cannot let go of the irony this day holds with the greatest leader the business world has ever witnessed stepping down.  But I must since life always has it’s way of moving forward.

It seems fitting that Steve Jobs said it so eloquently: “We believe that people with passion can change the world… for the better.  And it’s those people who are crazy enough to believe they can change the world, actually do.”  

Will do, Steve.

@jnickhughes

Forget Governments; Here Is The One Thing Entrepreneurs Must Do To Save The World

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Well folks, things are starting to look pretty bleak out there.  As an optimist I want to believe the future is brighter than the past, but I am having a hard time sleeping at night and imagining the days ahead won’t be filled with economic strife.

Shall we review some basic facts:

The U.S. debt ceiling has been raised by trillions – simply meaning we are sinking further down the quicksand without any help of getting out.

Do you realize one trillion dollars is a thousand BILLION dollars?  This is really getting out of hand.  It is pretty sad to realize our World Economic Powerhouse is actually just like the 24 year old post college grad who is taking out (and maxing) another credit card just to pay off the creditor calling them on the phone, while not even remembering when the specific credit line in question was taken out.

S&P has downgraded the U.S. credit rating from AAA to AA+, an unprecedented action initiating a period of economic uncertainty around the world with no clear ending in site.

What happens when the world loses total faith in the United States?

The tremors of volatility in the stock markets has recently increased in magnitude, with numerous daily slides of more the 4%, sending mini-shocks of fear and loathing through the psyche of any shareholder.

Go ahead, take a look at what happend in the years following the 1929 market crash…  sound familiar?

Here are some stats on the impending recession; it’s a great (but long) article but really places things in perspective.  Choice quote:

So, I guess I am going out on a limb, without any help from an inverted yield curve, and saying that we will be in recession within 12 months, if we are not already in one. This will be unlike any recession we have seen, as there is not much that can be done, other than to just get through it as best we can. Sit down and think about your own situation and prepare.

So after you sit down and think about your own situation, what should you do?  Well, if you are an entrepreneur I have a thought…

Understand How Your Business Adds Value To The World

Every entrepreneur need to take a tough look in the mirror and ask themselves what it really means to be in business.  The most basic tenets of business are profits, losses and margins.   As an owner, if you are not bringing in more money (adding value) than you are spending (extracting value), you will sink.   One would think the most important of those 3 is profits – and I do generally agree with that position – yet that may be precisely why we are now in this economic mess.  It turns out that profit above all else ends up creating more losses all around.  This, in my opinion, has led to our current toilet bowl effect where regardless of what happens we are circling further and further out of control.

A few questions worth considering when looking in the mirror:

Am I making a positive difference in the world?

Does my business add value to the world?  Or does it just extract value?

How can my business create an order of magnitude more value than the current solution?

Where is the government wasting money and how could I provide a better and cheaper solution?

Understanding how and where you add value to the world is just the first step; illustrating how you add value to the world is where you must focus your time and energy.  Having some sort of value quotient (if that is even possible) is where businesses worth can be easily quantified.  People need to know how you make the world a better place (socially, economically, environmentally) so they can start to make healthier world choices.

Specifically, I am referring to the question:  Is the world economically healthier because company “X” exists?  If there is not a resounding yes from the outside, I am afraid we will continue down this toilet.

Apple is now pretty much the most valuable corporation in the world, but do they really add value to the world?  Controversial statement, yes.  But of course a valid question, since people spend quite a bit of money on their consumer products.  How about the next company, Exon Mobile?  How much value are they adding to the world?  Arguably, they aren’t just extracting oil from the world…  And remember, these are the most VALUABLE companies in the world today.

The only way out from this mess is going to be through entrepreneurial fortitude.  Governments worldwide have only proven they are inept and cannot figure out how to spend less money.  It seems rather than actually ‘governing’ towards a solution, they are just ‘spending towards another problem’.   This does not work and we are now realizing how much we are in over our heads.   The world will be saved by entrepreneurial fortitude and finding a more efficient method to solving a societal problem.

The world is in desperate need right now of  smarter, more courageous, and innovative entrepreneurs who are not out to exploit current inequities but looking to reshape and save the world so their children will have something to actually live for.

@jnickhughes

Image courtesy of Flickr user Amagill.

Social Search Series VI: A Picture Can Be A Thousand Word Result

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Social Search Series: This summer I am embarking on a journey through on the emerging web of Social Search. Traditionally known as the Questions & Answers industry, this category is currently being transformed by social and mobile technologies. No more asking a site questions and finding old answers.  I believe the future of the web is ingrained in the dynamic interdependence of social and informational networks. This is part VI of the series. For background, check out the previous articles Part I here and  part II and Part III, Part IV and Part V here.

Through this series I have touched upon the new way we are discovering and interacting with and information on the web.  I have detailed how old question and answer models are being disrupted and re-engineered to form the new way find information.  LOCQL, LocalUncle, Aardvark, Waajam and many others are making inroads on the social search frontier.

Another startup I previously covered, Localmind, who also just packed up and made the proverbial move to San Fransisco, is making a few big announcements today.

Today they are releasing a few more feature enhancements which will change the way we will discover and share information within our local communities.

Answering With An Image

First, with the Localmind application, you can now pack a thousand words into your answer by including a photo.  For instance, when someone asks the question “how busy is it at the bar?” you normally would need to respond with some text, including a bit of context which wastes precious character count space.  Now, you can point, click and send.

Here’s a quick video of how it works.  Pretty cool.

Imagine using this feature to search a stadium full of fans at a football game to get exact information on a particular game, with images of the players, from various view points all around the stadium… all in real time.  That’s called the future of social search ladies and gentleman.

According Localmind CEO Lenny Rachitsky, this was the largest requested feature since they launched the first version.  “People are used to taking photos with their phone.  People always want to see what’s happening…  it’s not just posting photos, it’s an exact answer…”

Adding Conversation and Opinion

The next feature being released is a subtle but important one: answering a question that has already been answered by someone else.  When using the app, people wanted to add their own opinion and context to a Localmind question.  The new feature allows people to answer a question that has already been answered, thus creating a conversation around local information.

This is the evolution on the local search space I have been talking about for some time, the inevitable transition from the 10 blue links on a page to a more contextual, relevant and accurate search experience – powered by your contacts and the people around you everyday.  Adding comments and conversation around interactions within Localmind bridges the gap from spam and irrelevance and brings us into the new realm of local social discovery.

Also included in this new release is the ability add your identity when you, as a user, answer a question.   Until now, when a user answered a question, they were completely anonymous.  Now you have an opportunity to leave your identity (and see a profile of another user), removing privacy but making the platform more authentic and accurate.   Rachitsky n0ted they were initially concerned about identity and defaulted the platform to anonymous responses, but realized that is not a big issue and now have changed it so users can choose the way they interact with Localmind.

Now you see why the name Localmind is actually what they could possibly become, a central nervous system of the local community.  I see it… do you?

If You’re Not Getting Job Offers Right Now, You Just Ain’t Tryin

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I know we are in an extended period of economic recovery.  I understand markets are shaky right now and the global economy is teetering on another possible collapse.  I am also aware unemployment rates not only in the U.S. but around the world are as high as they have been in many years.  I know all this.  But If You Ain’t Getting Job Offers Right Now, You Just Ain’t Tryin.

How do I know?  Although I haven’t settled on my next business pursuit just yet (decision coming soon!), I have been offered many unique and exciting job offers and partnerships recently.  This article is not about me and how great I may be – that is not for me to decide – but more about how one can start to gain a more attractive position for future opportunities.

Do Something…. Anything!

The first thing to do is SOMETHING.  Anything will do, just do something.  Make sure it’s unique.  And do it well.  And do it every day and document it.  I have talked to numerous people recently and I keep having the same conversation.

Person: Man, I can’t stand my job

Me: What is it about the job you hate so much?

Person: I just feel I am not challenged, it’s not fun anymore and I need something new.

Me: Well, what are you doing about it?

Person: I don’t know… nothing at this point.  I am looking around and submitting some resumes, I’m looking on Craigslist too…

Me: Well, good luck with that!

Then I go on to help them understand submitting your resume is the #1 worst way to get a job.  You have a better chance getting attention by standing in Times Square holding a sign in your underwear, like the cowboy dude playing the guitar.  You do realize when you go the resume route you are just 1 of 100 or even 500 people, who all now will be juxtaposed and compared solely on what they have done on paper.

Standout…. Somehow

Maybe you shouldn’t stand outside somewhere in your underwear, but you need to do something to stand out and showcase who you are and what value you bring to the world.  If you are not working on something of value outside of your “paid” hours, you are falling farther and farther behind all those people who are.  This is what I mean when I say “you ain’t tryin“.  Employers, startups and investors want to see what you do that is unique and separates you from the rest of the pack.

For me, it has become writing and creating these short pieces you are reading now.  I have only been writing for 3 months now, but opportunities are hitting my email, twitter, Facebook and LinkedIn accounts every day. We’ll see how it turns out…

[I enjoy people reaching out to me, so feel free – @jnickhughes]

Employers, investors, business partners first hire based on character, uniqueness and value, and secondly on competency.  That is a fact.  Knowing this, you need to use digital media to highlight your strengths and spread them across the globe so others can start to see why you are so special.  It is also why I for the last 3 months have adhered to Mark Suster’s rule of take 50 coffee meetings.  Face to face is the best way to determine character and value, not on a piece of resume paper.  I have done so many meetings this summer I can’t keep track, but for sure they have been the best coffees I have bought in recent years.

As a CEO, who do you think I would chose to hire:

Person 1:  Randomly received their resume via email, looks 5 years old.

Person 2: Saw their latest blog post passed around via twitter, LinkedIn and Facebook.  Heard my friends and co-workers commenting on their latest work, and last time I spoke with their current CEO, he had nothing but praise for this person and their work.  When I check their LinkedIn profile, it’s complete and displays a strong and wide array of industry experience and many common connections.  They have started a conversation with me via one of the social platforms…

Introverted?  Get Help

There are many who are not naturally outgoing, extroverted, courageous enough to start writing to thousands of people, or just can’t figure out how you can get discovered.  If this is you, get some help.  Jobfully is a web service that helps people like you; people who are submitting resumes, even getting interviews but are having a hard time getting hired into the job they want.  Their motto: Get Hired Faster and Easier.

Mei Lu, Founder of Jobfully, told me they can shorten the average job search from something like 9 months to about 6 weeks, an 80% difference.  How?  By providing the smart way to job search. They provide tools, coaching, support, strategy and a step-by-step plan for success – all in one place.  They help you prepare for interviews and learn the follow-up process to seal the deal.  It’s a great idea.

Look, I know these are challenging times… but please understand if you aren’t currently being offered new positions and business opportunities, you just ain’t trying very hard.

@jnickhughes

Consero Is Like The Cool Group In High School, You Secretly Want To Be Invited

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Paul Mandell found he was going to quite a few conferences each year yet he was leaving most of them feeling like he was not getting much value.   He felt they lacked timely content, as well as a useful networking experience.   As he looked around, it occurred to him maybe more people felt the same way.  He started to think about how to do these events better, how could he re-create the events industry so more value could come out of each event.  And just as any great entrepreneur would do, he decided to do something about it.

Founded in 2010, Consero is a leader in creating industry-specific events for senior-level executives.

Consero Forums are best known for offering a sophisticated learning environment with high-level content, as well as invaluable networking opportunities driven by Consero’s interactive, invitation-only format.

Although not a technology company, their innovative approach on transforming an established industry has caught my attention.   By forming advisory boards of executives from major corporations, as well as featuring a team of event veterans, Consero is developing the highest level of quality, timely content for each one of its Forums.

Attendees can expect an invitation only environment, meaning anyone attending was asked to be there for a certain reason.  This benefits them by providing a more efficient way to connect with other influential attendees and vendors.

In addition to content, Consero Forums are built to feature a valuable networking environment designed to stimulate new business for its innovative sponsors.  “The networking is far more superior, productive and the events are very focused on solid content” says CEO Mandell.   For example, Consero focuses on ensuring that sponsors meet with the most qualified executives who have expressed a demand for services and solutions based on their current and future initiatives.

The event industry is a $12.5 billion market that, at this point, has seen little to no change in the last 20 or 30 years.  I would say that screams “HUGE POTENTIAL” louder than as any standing ovation I have ever heard.

In just over a year, the company has experienced positive growth, including a 400 percent increase in revenues. In 2011, Consero will be hosting seven events, and they plan to double that number in 2012.  They recently moved into an expanded headquarters and are also doubling their staff this year.

A Lesson In Finding A Need

Headquartered in Bethesda, Maryland, Consero’s new model for events answers all of the pressing needs. At a Consero Forum, every attendee is in the top tier of management with respect to his/her company, and the unique format of intimate conference sessions, one-on-one meetings, and roundtable discussions looks to raise the bar on senior-level networking, thought leadership exchange, and collaborative learning altogether.

They recruit speakers who are industry insiders—people who have first-hand knowledge of today’s most pressing business issues.  They place a lot of emphasis on finding the right people, “to identify the right individuals, we spend a lot of time researching industries, news, and service offerings. Our team also brings to the table in-depth relationships with a variety of high-level executives and solution providers built over years in business.”

Currently the event topics include the legal industry, state and local Gov IT and customer experience.  But, it’s only a matter of time before your industry gets the Invitation Only bug.

In fact, just today they are announcing the 2011 Legal Technology Forum, which is taking place September 18 – 20, 2011 in San Diego, California at the Loews Coronado Bay Hotel.  Jessica Druckman, Founder and Vice President for Program Development of Consero, says, “The program for the Legal Technology Forum will focus on educating legal professionals on today’s most pressing issues, including the most effective ways to protect confidential company information in the age of social media, as well as how to leverage new technologies and processes to ensure efficient legal department management.”

The long term vision is to bring Consero’s model to other vertical niches where it can help improve the experience for both executives and solution providers.  Examples include Consero’s recent Intellectual Property Management & Monetization Forum as well as our upcoming Customer Experience Forum.   Additional Forums for each niche will be announced shortly as well as plans for overseas events.

Going All In

“”I started Consero with about $1,000,000 of personal savings and a home equity loan” says Paul.  “I also brought in experienced event veterans William Card and Jessica Druckman, who have been invaluable assets in the company’s early success.”  Among the lessons Paul learned in the early going include:

  1. Focus on attracting the best employees at every level of the organization. This is essential in any start-up’s long-term success.
  2. Learn every aspect of the financial side of the business. This knowledge is critical in long-term planning and helps to avoid cash-flow issues – especially for entrepreneurs who do not have a strong business accounting background.
  3. Delegate. As the founder, I knew it was necessary to bring in the right support team so I can free myself from administrative tasks associated with launching a company.

Below is the Consero executive team:

Paul Mandell is a Founder and the Chief Executive Officer of Consero. In this role, Mr. Mandell provides strategic leadership for the company with a rigid focus on excellence mat every level of the business.

William Card is a Founder and the Vice President for Business Development of Consero. In this role, he is responsible for working with solution providers and partners who seek to benefit from Consero’s world-class Forums.

Jessica Druckman is a Founder and the Vice President for Program Development of Consero. Ms. Druckman is responsible for conducting market research, writing program agendas, and organizing the faculties for Consero Forums. Through carefully-planned programming, Ms. Druckman ensures that Consero delegates leave each Forum with
practical business skills that spur corporate growth.

@jnickhughes

Do You Have The Courage To Say No?

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Do you have the courage to say no?  Even when an offer is on the table but something inside just doesn’t feel right?

Saying Yes seems too easy these days and is typically the simplest way out of a predicament.  I think  this is why most people are over stressed and maxed out.  They agree to way too many obligations and accept offers which might not be exactly what they are looking for just so can they feel like they are moving forward.

I was offered an opportunity recently, one in which on the surface seemed like a good fit for me.  I will not go into detail as to what it was, which business, industry or investors were involved, but after initially accepting it I ended up walking away from it upon further evaluation.  It was a tough decision for sure, but I believe it was the right one.

Approaching a tough decision is challenging and it is quite easy to reflexively answer with a “yea, sure… I’ll do it.”  Obviously, saying no means you do not go forward and receive the benefits of the opportunity. Saying no means giving up a future that for some meant promise and prosperity.  But saying no usually is the smartest decision.

When evaluating opportunities, strong wisdom needs to be used.  A great question to ask yourself is – “what happens if I say yes?”

Here’s how to determine if something is the right fit and if not, how to have the courage to say no.

Does it meet your immediate needs?

Asking these questions will help you determine if the opportunity is something that meets your immediate needs, such standard of living, time commitments and opportunities to learn.

  • Will it cover your lifestyle needs and support your living?
  • Is it something that will challenge you in areas you want/need to be challenged?
  • Will it help you get to the next level?

Does it meet your long term needs?

Asking these questions help you determine if it fits the mold of how you see your life in 5-10 years and maybe even further down the road.

  • Is it something you still want to be doing in 5 or 10 years?
  • Does it align with your life goals (business, professional, personal)
  • Will I regret passing up this opportunity when I am old, wrinkly and gray?

How does your gut (heart) feel about it?

When all else seems foggy, the best decisions are made from deep down in your heart, where you can feel through the clutter and find a distinct Yes, or No.  Your lack of ability to sleep at night or your lack of wanting to jump out of bed each day should make it pretty clear what direction you should go.

  • Shut off all other external influences and listen to your heart
  • Are you leaning forward toward it?  Or are you leaning away from it?

If not, then you need Courage to say No.

Plain and simple, saying no takes courage.  No one likes to say or hear no and I think that is why people have such a hard time making decisions.  Having courage means you might have to pass on the good to have an opportunity for the great.  This is not easy and probably why most people in the world shun entrepreneurial opportunities and choose to be an employee.  Nothing against the employee life, but with high risk come high reward.  Risk requires courage, that of what few people actually put to use.

When one comes to terms with how valuable saying no can be, they will start to see their path become a lot more clear.

@jnickhughes

Food, Drink and Tech: The Seattle Startup Crawl is Friday, August 26th Starting at 5pm

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Here’s your chance to mix some of the best things known to man – Beer, Technology, Entrepreneurship, and Seattle – all together in the same event.  The Seattle Startup Crawl 2011 will be a great opportunity to gather together tech entrepreneurs in Seattle and at the same time learn more about the awesome and growing startup community here in Seattle.

It will be in the form of a progressive party, with each host providing their choice of snack/beverages.  We will start at approximately 5pm with Cheezburger Inc./Decide.com as the first co-hosts.  After a drink or two, the group moves on to the offices of Estately/Nine-by-Blue to continue the festivities.  Next, around 7pm the group (probably growing at this time) will arrive at Habit Labs on 9th and finish up with a stop at Big Door in South Lake Union.  The afterparty will begin immediately afterwards, held downstairs (in the same building) hosted by Founders Co-op/TechStars.

RSVP HERE

Startup Crawl Map (thanks Scott Porad)

 

The cost will be $5 (there will be an additional $1.26 Eventbright fee) and the tickets are limited to the first 150 people.  Details below.

Date: Friday August 26th

Time: 5pm and later

Cost: $5.00

Stop 1: Cheezburger/Decide.com – 5pm

190 Queen Anne Ave N, Suite 310

Seattle, WA 98109

Stop 2: Estately/Nine-by-Blue – 6pm

615 2nd Ave #150

Seattle WA 98104

Stop 3: Habit Labs – 7pm

2101 9th Ave #205

Seattle, WA 98121

Stop 4: Big Door – 8 pm

511 Boren Ave North

Seattle, WA 98109

Afterparty – 9pm

Founders Co-op/TechStars –  Downstairs

Tweet this out and spread the word!

Do These 4 things To kick Ass As An Influencer

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Why are certain people more influential than others.  Were they born that way?  Are they smarter than you or me?  Do they know something others don’t?  I am not sure there’s just one correct answer but after spending the summer doing more of the below activities, I have a better idea what happens as your influence expands around the world.

The image below illustrates the ladder of participation in any medium.  We all are one of these at any certain time; Creators, critics, collectors, joiners, spectators,and inactives.  Obviously, the higher one can get (and stay) on the ladder, the larger their influence will be with all the others.

Here’s how to kick ass as an influencer:

Influencers Read

Influencers read incessantly.  They have a yearning to always know the latest news and insider perspective.  They access the best publications to get a keen grasp on the the industry.  Through constant monitoring, like an ear to the railroad tracks, one can get a feel for shifts in technology – seismic or slight as they may be.  With an industry such as the technology space, things change daily and keeping up on the changes can be the difference between a first mover advantage and last to the party.  Reading also sharpens the mind and helps with comprehension while expanding the knowledge base.  Why would’t anyone want to do that?

Influencers Write

What does one do with all that knowledge and information they are collecting each day?  Write about it!  Although reading and mentally organizing vasts amounts of information helps to increase personal bandwidth, putting thoughts together on screen in a cohesive manner only adds to personal comprehension of abstract concepts.  Like an artist who throws various colors together to bring a painting to life, to each of us writing can be a piece of art that takes upon a life of its own.  Each person has within them a unique perspective of the world, and writing provides a pedistal to stand in which we organize thoughts and inform others.

Influencers Publish

Writing your thoughts on a word doc is a start but it will not lead to becoming influential, you need a platform for publication.  Blogging has become mainstream and it is quite easy to establish your own blog/site in which you can publish your words.  This seems to be the biggest hurdle for most to overcome, as it can be overwhelming and intimidating to put yourself out there with little place to hide.  Yet, that is the whole point…  Creating authentic words, infusing a unique personality, adding to it a spice of your own creativity is what people crave most in today’s media.  Most people don’t want another also-ran, bland, vanilla reporter regurgitating the facts of todays news that can be found on a hundred other sites around the web.  They want uniqueness.  They want personality.  They want to feel as if they know you as a blogger, writer or executive.  They want to feel close and connected to someone influential.  Trust me, they want to be inspired, so click ‘publish’.

Influencers Distribute

Once published, influencers understand the only way their words are going to reach the masses of people is if they can get to where they are.  Using the popular social platforms to their advantage, they get to work on spreading the information far and wide.  Creating titiles with Twitter in mind – with each tweet of the post the Title becomes the default twitter message – will only magnify the spread of each article.  Also, major publications are now allowing outside contributors (like myself) to harness their platform and add to the editorial strength of the brand.  Any influencer knows they need to be where the masses of people are in order for them to find you and your words.  Hop on the train before it’s too late!  Finding the appropriate avenues of distribution will lead to a growing number of eager readers.

As you can see, all it takes for someone to massively improve their influence is read quality content, write good content, actually publish the words and distribute it to a wide audience.  Those are 4 quick ways one can kick ass as an influencer.

Ice-cream Is Great, But Utilities Make The World Go Around

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Lately I have had a recurring theme running through my head – “didn’t I see that startup idea before, only with a different name?  Aren’t there more than a few startups doing this same  little sharing thing? ”  I believe we are witnessing another “bubblish” period of time, with valuations of young startups skyrocketing and investment money flowing like wine from Napa Valley.  When money starts flying from every which pocket so do the various copy cats and so called “Groupon’s for X industry” and “Airbnb for Y category” startups.  Ironically, creative innovation declines as similar business ideas get most of the available investment funding; I am not sure this is the best thing for the future of our economy.

Twitter co-founder Biz Stone recently commented “Everybody said ‘Twitter’s useless.’ To which my co-founder Evan Williams said, ‘Well so’s Ice Cream, you want us to ban Ice Cream and all joy?’ We said, ‘Screw that. We’ll just keep working on it.’”

This ice cream statement is referring to some people thinking Twitter and other social sharing applications are just petty fun but don’t serve much purpose and are not very important to the development of our economy.  Others believe the future lies in developing new technologies around people and infusing social in everything we do.  So who is right?

Well, let me go on record saying I beleive the application of social technology is indeed impacting our world and will continue to transform our society.  Yet, I will add a caveat to Stone’s point of view – ice cream is great, but ultilties make the world go around.  Ironies aside as Twitter becomes a utility to web users around the world, it ended up solving a problem we didn’t know we had at the time, which happened to be discovering people and distributing information.  But how many social companies are actually created with a strong economic value proposition in mind?  I think the point is very clear – when evaluating business and startup ideas, entrepreneurs and investors would be wise to focus their attention on things that solve a very strong need and plug into society’s daily function if they want to increase their odds of success.

Take a look at the following list below and observe what they all have in common:

Natural gas

Electricity

Telephone

Water

Old Steam Companies

hydraulic power

public transit

postal services

Public Infrastructure

All those industries and the associated companies all have one major thing in common – they are a public utility.  Being a public utility implies they serve a very obvious consumer need and  are frequently used products and services (speaking generally from a consumer point of view).  As a business they should have no problem developing a customer base, since their product is a need all consumers inherently have.

I suggest entrepreneurs think in absolute terms when developing their products or services.  Using an understanding of where technology is going, founders can anticipate aspects of everyday life which can be turned into utilities.  Here are a few things to consider:

  • What types of problems and challenges are consumers facing each day?
  • What problems are still served with older technological paradigms and are in need of more efficient solutions?
  • What types of industries have become ‘utilities’ and why?
  • What consumer activities seem to be more common place and will become utilities tomorrow?
Below are just a few examples of entrepreneurs viewing business as a utility.  Not an exhaustive list by any means, but they can serve as examples of clever business strategy and positioning.

 Schwab  and Wharton –  Steel

Steel was foundational utility as our country expanded from a small “startup” into the economic powerhouse of the 20th century.  Due to the expansion of the steel industry, railways, buildings, cars and other major industries advanced.  From wikipedia:

The Bethlehem Steel Corporation ascended to great prominence in American industry, installing the revolutionary grey rolling mill and producing the first wide-flange structural shapes to be made in America. These shapes were largely responsible for ushering in the age of the skyscraper and establishing Bethlehem Steel as the leading supplier of steel to the construction industry.

Edison – Electricity

Electricity, ala Thomas Edison, brought light to our night as well as power to our life.  Imagine a world without electricity… it is almost impossible to live in the 21st centuty (at least in the developed world) without this incredible utility.  Think about all the other multi-billion dollar industries that have been born and brought forth because electricity became widespread technology everyone could use.

Ford – Automobile

Although Henry Ford did not invent the automobile, he brought it (and mass manufacturing) to the general population.  With the introduction of the affordable car, consumers were able to travel more than a couple miles to spend their hard earned money, a transforming affect on the young US economy.  Commercial malls, retail centers, Supermarkets and many other industries were born from the advent of the automobile.  From the book American Entrepreneur:

Autos fundamentally changed transportation from a collective undertaking, whether in boats or railcars, to a principally individual experience.  Cars represented independence, not only freeing people from the confines of the city but from restrictions imposed by a particular geographic region. 

Gates – Software

Bill Gates had a vision – a computer on every desk!  Unofficially, he has achieved his vision and then some.  Shouldn’t it now be referred to as ‘a computer in every hand/pocket’?  But, who is keeping score…  Gates and Microsoft built the software found in almost all computers available, bringing to life the PC  revolution and birthing the connected world we live in today.  Productivity of Private, Public as well as Personal lives has greatly increased because of the software industry Gates created.

Zuckerberg – Social networks

As web connected devices continue to drive our daily activities, no one company has a better position to lead the charge in our new world as does Facebook.  Mark Zuckerberg, at a ripe young age of 19, saw we would interact with devices, the web and people around the world in a whole new way.  In creating and growing Facebook, he established a platform users now consider a daily communications tool.  What can be built off it still mostly remains a mystery, but his vision of a utility is quite clear.

As a brieft list, these visionary individuals are amongst many others who transformed our world through groundbreaking businesses.  Importantly, all of them viewed their concepts through a utilitarian eye, observing where human life currently had a problem and how their company could offer a solution.  Find a need and fill it.  Serve a strong purpose in consumers’ everyday life.  Have a vision of a wide-spread platform, or a unique position where a multitude of new industries can be spawned from your one idea.  I believe that is the best position to start with when evaluating a new business venture.

@jnickhughes

Image courtesy of Flickr user Daniele Sartori.