2 Steps Forward, 1 Step Back Is The Crazy Entrepreneurial Path We All Follow

We as entrepreneurs have a jaded view of the world we live in.  It’s a disease actually.  We look out onto the horizon seeing opportunity, wealth, fame, fortune or whatever gets us up each day and disregard the inevitable barriers which lay in our way.  But it’s not always up and the the right, within our journey failure sits awaiting; steps forward and steps backward.  It’s natural and should be expected.

Already for me, this summer has been a microcosm of the entrepreneurial journey.  Courageously leaving a full time job at the beginning of May, quickly learning what I thought was my next gig actually wasn’t, setting out on my own to make ends meet, continually reaching out and connecting with various CEO’s and local entrepreneurs each week, starting to write daily and beginning to reach people like yourself, interviewing everyone from CEO’s like Bryan Trussell of Glympse to entertainers like Sir Mix-A-Lot, being approached to cover topics and startups I never would have imagined a few months ago, being approached by numerous startups with offers to join, and ultimately accepting an offer that is currently forming into my next venture.

Yea, I know… all that in about 90 days.   Words cannot describe this experience, but somewhere in between exhilarating and terrifying would be accurate.

As you can see by my short summer filled with opportunity, the entrepreneurial path is always 2 steps forward, one step back.  The important thing is at the very least you are always moving forward.  If it were one step forward, two steps back – you would be sinking.  Let’s hope you aren’t going that way.

It’s times like these I grab my copy of Founders At Work, a book which has helped me through similar challenging times.  As a collection of startup and early day stories of some of the more well known technology companies from the past 25 years, it is my entrepreneurial medicine.   It gives inside perspectives on the founding of various companies starting with Lotus, Apple all the way to Flickr and Craigslist, almost like you are there with them.  You can feel their pain and experience their triamph all the while secretly wishing/hoping you will one day grace similar pages.  Through reading incredible stories like overcoming insurmountable challenges , founder disagreements, backstabbing, near bankruptcy, exploding revenue, and going public you realize every entrepreneur faces an uphill battle and your situation, although unique, is not impossible.

You will also see that each is a unique story of two steps forward, one step back.  Apple was founded by Steve Jobs and Steve Wozniak in a garage in 1976 and got initial steps forward because of the Homebrew Computer Club.  Paypal, founded by Max Levchin, was a security and cryptography service for transferring money between PDA’s before becoming a web payments company.  Founders like you and me need to understand all these large and successful companies we read about each day all started with a lot of hard work and as just an idea.  Usually that idea wasn’t what you see today and those billoinare founders were a lot like you – scrappy, dissatisfied, hungry and motivated.

Tw0 steps forward, one step back.

Another way to think about it is what Seth Godin calls The Dip. Put bluntly, he visually describes the path people encounter in life, where to be great one has to go through the challenging trough to emerge on a higher level.  It’s a book about avoiding temptation and gravity and becoming the best in the world.

I’m amazed at how quickly people will stand up and defend not just the status quo but the inevitability of it. We’ve been taught since forever that the world needs joiners and followers, not just leaders. We’ve been taught that fitting in is far better than standing out, and that good enough is good enough.

Which might have been fine in a company town, but doesn’t work so well in a winner-take-all world. Now, the benefits that accrue to someone who is the best in the world are orders of magnitude greater than the crumbs they save for the average. No matter how hard working the average may be.

I’ve never met anyone… anyone… who needed to settle for being average. Best is a slot that’s available to everyone, somewhere.

Two steps forward, one step back.

That’s how we roll as entrepreneurs – somehow, someway moving forward.  I believe how you approach the one step back will make all the difference in your life.  Knowing it is a natural step in your evolutionary process as en entrepreneur will help you use it as a stabilizer, not a fall backwards.

These are exciting times, and although constant talk concerning the economic health of our nation is getting louder, I am not going to let it deafen my voice.  Neither should you.  Take the backward step in stride and then look forward as you readily take your next one.

This Is Great Advice For Any Blogger or Writer Today

As most of you know, only recently have I taken to writing.  In fact, it was in mid-May I started this blog as well as had the opportunity to freely post on a world-wide publication like Business Insider.  So when I read something like this statement below from A.J. Kessler, I really identify with it.

In a medium like writing, creating great work means not only producing a lot of work, but doing even more editing.  Honing ideas, stories, scenes, and phrases until they are as good as they can reasonably be.  Even though most of your output may suck, with enough refinement, you can eventually produce something fantastic.

Although writing seems to come to me naturally, it is quite challenging to do it well.  There are times I look back at past posts and think “what was I thinking?”  But, it’s an iterative process and with more writing comes better writing.

If your goal is to produce outstanding work, in any field, recognize that most of what you produce is going to suck.  To get from “suck” to “awesome” takes a huge amount of effort and skill.

That being said, I encourage anyone out there to start writing.  You will be surprised at what will come your way.  It has been the single greatest and most impactful decision I have ever made in my life – hands down.

How Those Of Us Not Named Mark Zuckerberg Can Still Be Successful

A recent post on Business Insider by Rishi Chowdhury titled “Being a Young Entrepreneur” got me thinking about being young, being entrepreneurial and the affect it has on how others view us.

Chowdhury maintains since it is much easier to start companies today, we are seeing many more founders in their late teens and early twenties emerge with significant web products.  This has happened because they 1) come to coding and technology more naturally, 2) have the free time and 3) have less in their life weighing them down.  He notes:

It is also more common place to see teens who have taught themselves code and are able to create innovative web apps due to the freedom they possess. As this generation has grown up along with social networks, they know how to leverage these. What may start out as hobby/after school project can turn into a real business.

That’ s the upside, easily being able to start a company.  He then goes on to illustrate the difficulties in being taken seriously and actually building a company at such a young age.  I fully agree with Rishi and whatever the challenges he sees ahead, based on his writing I believe he has a great future ahead of him.

But what about those of us who aren’t Mark Zuckerberg, who didn’t trip onto a great idea in their late teens and now have more wealth than we ever imagined?  What about the guy in his mid-late twenties, who isn’t seen as the next “wonderkid” but cannot seem to shake the entrepreneurial bug that chases him everywhere he goes?  How about the people out there who don’t know how to code, have never actually created a web app but still dream of building a great business?

I believe sometimes we can be too hard on ourselves.  I think we look at the lucky few and think “geez, that guy is like 5 years younger than I but he is one of the richest people in the world!  How did he get so lucky?”  This is not the right perspective.  Mark Zuckerberg is an exception, and an outlier who has skewed the tech founder perspective

It is still harder than ever to create a breakout business.  Actually, it’s quite a bit harder than it was 10 or 20 years ago.  Why?  Because when it’s extremely easy and cheap to create a new web/mobile app, thousands and thousands of people do.  And when so many more people get involved, the market gets overcrowded.  When the market gets too crowded it becomes incredibly difficult to stand out and be discovered by enough people to achieve a critical mass of users.  Today, you must be very good at what you do to make it big.  Quality now matters more than ever – quality in product as well as quality in person.

So how does one go from a non-technical industry to becoming a tech executive?  Or put another way by Rishi: “A big consideration when starting your company while still very young, is how are you supposed to be taken seriously as a young entrepreneur?”

Well, my advice to Rishi as well as all other entrepreneurs: Be an exceptional person.

1) Build yourself as you build your company

From this day forward and for the rest of your life, you will be interacting with older, more educated and much wealthier individuals.  Sorry to tell you, but they usually will decide if they want to work with you within 5 minutes.  The trick is to quickly impress on them your strengths and abilities, usually within the time it takes to finish your elevator pitch.

This can be the biggest obstacle of all – your personal presentation – especially if you don’t have the luxury of saying “oh, and I’m a Harvard (or Stanford) grad.”  How much time you devote to development of your wisdom, knowledge, wit, personality and social skills will be obvious to businessmen, CEO’s and investors the moment they meet you.   I am a firm believer you can really move forward in life by polishing yourself each day.  No one should ever leave the student mentality.

A few ideas:

  •  Audio learning whenever possible- I listen to Stanford ecorner podcasts each week and it’s like I am in the class.  I also listen to ITconversations when I am driving.
  • Read books like it’s going out of style – business, tech, personal development, fiction, etc…
  • Get uncomfortable and reach out to people whenever possible; learn from each interaction

2) Build your network as you build your company

I cannot tell you how valuable “the network” is, and I am referring to the professional networks like LinkedIn.  Whatever you choose to go with, reaching out and connecting with well established people validates you as a professional.  Once you get connected (via email, phone call, mutual friend into, etc…) immediately book an in-person meeting.  Overlooking a personal meeting is the biggest mistake most young (or less connected) people make today.  Put bluntly: virtual connection does nothing but link you with someone else.  To leverage the connection, you must sit eye-to-eye, open yourself up and let the other person get to know you so they actually understand how to best help you.  This can only happen through in-person meetings.

A few ideas:

  • Reach out to your local tech network and introduce yourself to others in the community
  • Ask to have coffee and meet them in person.  Interview them and write about it!
  • Build out your LinkedIn connections, more people validate you with it than you might think

3) Build your vision as you build your company

There is something magical about hearing someone describe a vision of how they intend to change the world, especially if they are younger in age.  Doing this separates you from the crowd so when you do connect with others they will remember you and your unique vision.  Who wants to listen to someone says “oh, we’re the guys doing daily deals for X industry”?   They most likely won’t remember you or what you are doing with a vision so undifferentiated.  Get passionate, creative, and innovative around something new and start talking about it.

A few ideas:

  • Look at industries which haven’t been fully transformed by the web and search for pain points
  • Take the long view and have courage to paint a unique vision, tell the people you meet about it
  • Use “the network” to find others who share your vision, they might just turn out to be future partners

I understand it’s difficult to be taken seriously as a younger founder because it’s the same as a (relative) newbie to the tech scene, and I’m just barely out of my twenties myself.  We are not Mark Zuckerbergs, who seemed destined to create the next big thing.  But it also doesn’t mean you are any less qualified to lead a great organization.  It just means you have some extra work ahead of you.  And as an entrepreneur, that shouldn’t come as a surprise.

The 3 Entrepreneurial Lessons My Father (and his wedding) Have Taught Me

This is a special day in my life as my father is getting (re)married.  In fact I am extremely honored to stand by his side as his best man to celebrate and witness this great commitment.   Recently I have had the opportunity to think a little deeper about what my father, Jim Hughes, has taught me.  Many things graced my thoughts, but 3 things stick out and continue to be huge influences in my life each day.

If you are an entrepreneur maybe they will help you as well.

Devotion- Live What You Love

As long as I can remember my father has lived his passion and his work has been his life.  Amazingly, his faith is part of his work as well – he is the the Director of Stewardship & Development for the Roman Catholic Diocese of Boise, ID.   He lives, breathes and speaks faith.  He does not try to convert one who may not be aligned with his way of seeing the world, but anyone who meets him can sense the calmness his faith brings to his life.  He is the most dedicated and devoted person I have ever met.  His faith is his life and his work is his faith.  You will not meet anyone doubting my father’s devotion and commitment to his cause.

Basically my father raises money to support the expansion of the Diocese just as a CEO would raise money to extend the life of his company.  Say what you want about religion, faith or “believers”, this post is not a sermon; it is a lesson on how to fully devote yourself to a cause or purpose.  If my father was not fully devoted, it would be unlikely people would feel empowered to give money towards an important cause.  When spotted, an entrepreneur needs to take note of someone who is fully devoted because they are rare in this world but the best of examples.  How are investors supposed to put their faith and money in you when you aren’t fully devoted you your cause?  Show me a devoted person and I will show you someone who is making things happen.  Life just does not work any other way.

Appreciation – Life is a Gift

If you have met my father you would know exactly what I am talking about here, his appreciation for life and people is like a potent fragrance that can fill an entire room.  You know it when you shake his hand and look him in the eyes.  It’s piercing.  You sense a respect that falls like a warm blanket on the connection between the two of you.  He appreciates you for just being… you.  When you talk with him he looks right at you, transfixed on experiencing all of you and the conversation at the moment.  It is this endearing respect for all people I intuitively picked up on as a young boy watching his father, and I cannot thank him enough for the unspoken lesson which has helped me navigate through life possibly lighter than others.

As an entrepreneur I think the principles of appreciation is often overlooked, which can be a big mistake.  It’s easy to get wrapped up in our own situation and look out for number 1 first and foremost.  But here a few thoughts to ponder:  When you meet people, what do you think you look like – from their point of view?  Do you look them straight in the eyes?  Do you give them all your attention?  Do you let them know – without saying anything – they are the most important person in the room at that given moment?  I guarantee you will attract better talent with this approach.  Even if you are talking to your newest hire or old janitor, not understanding this principle will be an Achilles heel in your life as people will come to learn deep down you might not think so highly of them.  Success can only be found in respect and appreciation for others.

Patience – Good Things Come in Time

After my parents were divorced my father remained single for roughly 25 years and we all were wondering if it would ever happen again!  He took his (sweet) time to find the woman he felt he could commit to for the rest of his life.  But I never doubted he would end up happily ever after with another person.  As everyone started asking him what he was thinking, who would he end up with and when it would happen.. he quietly understood the principles of patience.  Patience (knowing the right thing will eventually present itself) is what brought him to today – the right time, the right person and the right perspective.

All too often we rush into something too quickly, forcing our will onto the situation thinking that if we just force the square peg in the round hole, it will fit.  Ironically this is the exact trait for which makes for an entrepreneur – sheer will.  The will of an entrepreneur can at times be a positive force, working to help us overcome challenges and move forward.  Yet many times sheer will clashes horns with a silent, but stronger patience.  Sometimes it just isn’t the right time for your vision to come together and you must pull back a bit and take a different route.  Indeed this is tough.  But smart entrepreneurs understand heeding patience and know good things always come with time.

These principles my father taught me have been life changing, I hope they may have the same impact on you.

If SkyGlue is the CIA, HasOffers is the Godfather

It was recently reported that SkyGlue was the CIA for your website.  Well if that’s true, then HasOffers must be the Godfather of the internet.  Just as the Godfather protected his family and corrected others as needed, HasOffers aims to bring better accountability to their family – the web.

“I’m gonna make him an offer he can’t refuse.” – Don Corleone

HasOffers helps online businesses track and manage their own affiliate programs.  The software allows anyone to create an offer, invite affiliates to promote it, and then keep track of which new customers came from each affiliate and how much to compensate those affiliates.  “We want to bring transparency to affiliate marketing industry so it can continue to grow as an industry” says Peter Hamilton, HasOffers CMO.

HasOffers was co-founded in Feburary 2009 by Lucas and Lee Brown (twin 26 yr olds) who spent years in online advertising trying to find the most effective and efficient way to track their performance advertising campaigns.  Their first software license cost  $10,000 to get set up, thousands per month to operate, and locked them into lengthy contracts.

“I got a business to run.  Sometimes I gotta kick asses to make it run right” –  Moe Greene

Finding the existing technology to be unreliable, they spent three years developing their own tracking technology to support their business model.  In the Fall of 2009, the brothers realized that they were not the only ones running into this problem.  According to Forrester Research Group, thousands of companies are paying more than $8 billion a year for referrals (affiliate sales) in the United States alone, and they are running on old technology that is slow and unreliable.  So that spring HasOffers was released as a SaaS product, and it caught on like wild fire.  In less than two years the bootstrapped Seattle startup has grown to 27 employees, more than 7,500 clients and tracking more than $300 million in payouts per year.

“You think I’m skimmin off the top?” – Moe Greene

Affiliate marketing is one of those vapor-like, man-behind-the-curtain kind of  industries where many different players are doing many different things.  It’s hard to even form an adequate category definition let alone set any kind of industry standards.   Proper tracking  is extremely difficult and money is being wasted left and right.  More often than not, companies become unreliable, unaccountable and possibly devious.  I can only imagine the amount of money being flushed throughout the web using old and outdated ad tracking models.

This is a big problem since Affiliate Programs are critical to the growth of online giants like Amazon, Netflix, and Groupon, yet the technology for tracking and supporting these programs was (and to some extent still is) expensive and outdated.  HasOffers flipped the landscape of performance advertising by providing reliable, scalable, and flexible technology at a fraction of the cost of legacy systems.  Go here to check them out.

“There are many things my father taught me: keep your friends close, but your enemies closer.” – Michael Corleone

Being the only Affiliate service in the cloud, HasOffers pricing model completely disrupts the status quo.  According the Hamilton, “because of our modern approach to tracking technology, we were able to provide our service at a fraction of the cost of competitors.  One of these defining approaches is our use of all four Amazon Web Services locations around the world to host our ad servers (tracking technology) on the cloud.”  This globally balanced approach allows them to support incredible loads from around the world.

Another fundamental difference is the self-service philosophy which empowers anyone to get started immediately and dig into the thorough documentation to create the perfect solution for their business.  You won’t find any other affiliate tracking solution with a completely documented 2-way API for every function in the application. Hamilton adds, “we provide the tools for our customers to do great things.”

“Never tell anyone outside the Family what you are thinking” – Don Corleone

One of the biggest draws to HasOffers is their tenacious attitude toward innovation.  “We know that the industry must and will evolve, and we are certainly looking ahead to see what performance advertising needs to grow into a more mature adulthood.”  They are now listening closer than ever, they closed over 7,000 tickets for their current application that came directly from customer feedback.

In fact, they are currently in development of a new platform called Adtribution.com that targets the need for more reliable, more transparent tracking technology to support advertisers, networks, and publishers in a quickly changing Internet landscape.  Also on deck is a mobile-focused tracking platform to allow mobile app owners/developers to track referring traffic for mobile application installs.  Hamilton shied away from giving too many details right now, but it looks as if they are tackling the problem of last click “Rotten Apples” in a pretty unique way.

I like HasOffer’s vision for the future of Affiliate Marketing.  And as The Don would say: “It would be a shame if a few rotten apples spoiled the whole barrel.”

What Do Houdini, Copperfield and Angel Know About Tech?

It’s all about the ‘magic‘ in your app.

In talking with a founder recently about their product a thought quickly came out – “there has to be a certain magic to your app, a function that flat out wow’s the person if you want them to use it all the time and tell their friends about it.”

If your app or product does not generate that instant WOW of amazement, a shot of excitement and glitter of astonishment, you’ve pretty much lost  the user at hello.   There are literally millions of apps and websites out there and most of them are pretty much forgettable.  Nothing about them makes you jump up and say “WOW, how did they do that?”.  And that is why most of them suck.  Here’s three ways to WOW:

Be a Magician (Apple)

  • Appear to do something people have not seen before.
  • Focus on presentation and make it look simple and easy.
  • Hide as much as you can from the user, they don’t need to know how you do it.

Create an Addict (Twitter)

  • Like a drug, instant use of your app should illicit the undeniable urge to use again
  • Understand behavioral addiction and how to interweave your app into the consumer psyche.
  • Think how many times a day you slide your phone open to look for new texts or check Twitter to find the latest information?  That’s an Addict.

Pull on Emotions (Facebook)

  • Humans deepest motivations as are driven by emotions.
  • Tie your purpose to an emotional state (Why check Facebook?  Because we don’t want be left out!)
  • Joy, Sadness, Trust, Distrust, Fear, Anger, Surprise, Anticipation… all illicit responses.

Image courtesy of Flickr user Bohman.

Is TechCrunch Too Big? Or Is Quipster Too Small?

It’s tough to be a startup today.  It’s even more difficult to be a youngster looking to run with the giants.  I admire young startups like Quipster, who is dodging the giants right now.

Looking at Twitter, Facebook, Foursquare and Google we think they are indestructible.  It’s understandable.  It’s easy to be armchair critics, Monday morning quarterbacks or Negative Nancy’s when it comes to seeing a new startup attempting to play on their turf.  But the reality is a King’s reign does not last forever, and it’s usually replaced by the one we never expected.

Quipster recently launched to mild criticism, especially from one of the media Giants in the startup industry, TechCrunch.  I respect TC and their reporting, but not exactly their take on Chiding the Child.

“Do we really need another mobile check-in app? Newly launched startup Quipster seems to think so.”  They go on the provide a brief overview of how Quipster is really no different than all other checkin apps.

Is TechCrunch too big for Quipster?  My guess is yes, so big they didn’t even care to give the startup a fair shake.

The three paragraph post – which probably took 1o minutes to complete – does little justice in finding the pearl within the oyster that is Quipster.   If they would have looked a little closer they would have discovered Quipster came from three Thai engineers in Palo Alto led by CEO Krating Poonpol, who has always dreamed of being an entrepreneur and fought for seven months to gain an H1B visa just for the opportunity to build a company here in the US.   Krating – a former engineer at Google who became a bestselling author in Thailand for penning a book on his experiences at Google –  also won two medals in international mathematics competitions, taking home the gold for Thailand in physics.

Needless to say, these aren’t 3 frat dudes sitting around looking to get rich by riding the bubble of copycats. Even ReadWriteWeb does a better job reporting both the positives and the negatives of Quipster as well as questioning the tactics of TechCrunch.

By taking more time, TechCrunch would have also been able to share how Krating started Quipster to simplify and unify social check-ins, an category fragmented and ripe for simplification and a problem worth solving.  His goal: to be the driving force behind the next wave of geolocation.

According to Krating “Geolocation is not really about the check-in, it’s about sharing a context of what you’re doing as well as where you are with a single click and no typing.  He continues …we are creating a fun and fast way to share what your doing and what you like about certain places.”

The ” too many checkin apps ” reaction misses the point about Quipster.  Although check-ins apps are abundant, most lack any context.  Receiving a Foursquare update that reads “John Smith just checked in at Joe’s Bar” really doesn’t tell me anything, and leaves a lot to be desired.  Others are taking notice of the problem.

Krating, like any good innovator, is seeing an area where improvement is needed.  “we are seeing at least 5 or 6 responses resulting from each quip, giving a basis of interaction between users which goes farther than just a “here I am”.  This lowers the barrier of interaction among friends and strangers within a city and also gives users a chance to see what is hot in the city.”

I see apps like Quipster emerging with visions going way past the basic checkin feature and on towards making our everyday life easier and more enjoyable.  And for a possible business model, Krating did not to go into details, but he did say “Like Google – building out the interest graph, adding location and targeting meaningful marketing” seems like a good place to be.”

Am I saying Foursquare or Twitter won’t continue to reign in this space?  Not exactly, they are powerful horses for sure.  Do I think Quipster is the new Foursqare at this point?  No, I think they have a few obstacles to overcome.  But I am impressed with early startups looking to move the needle forward.

An Unfriendly Startup Trend

While I was doing my research to cover Quipster, I started to take notice of a new trend in tech media.  Coverage of young and emerging startups is falling behind at a frightening pace.  I am not the only one to notice.  Recent research found Ten companies now account for 30% of TechCrunch coverage.  The image below illustrates the heavily weighted coverage of late seed or large companies, increasing each year.  It is understandable why major outlets cover Apple, Facebok and Google more often, indeed they drive many more pageviews. But it begs the question: Is this raw startup journalism or have Techcrunch (and the like) really become the “New” Old Media?  Has it become all about more page views?

I am a long time Business Insider and TechCrunch reader, but these trends are cause for worry if you are an early stage founder.  Below are a few observations, straight from Guest contributor Mark Goldenson:

1.  Companies funded by a prominent investors get covered twice as much

2. TechCrunch writers do play favorites

3. TechCrunch’s long tail is now 14 times longer but the fat head is 24 times bigger

Guide The Child

My view of the purpose of media is to be a guiding light in helping emerging technologies and companies acheive top of mind with the general public.   Covering young startups with facetious mocking does not do those numbers any justice or help pull startups forward.  Media outlets such as TechCrunch (as well as this one, Business Insider) influence the general public more than they know, and covering a new company with a 3 paragraph Chide probably does more harm than good for an early stage startup.

TechCrunch, Business Insider and the entire startup community – pay attention to small startups like Quipster and remember Twttr was once is the same position.

Interview With Glympse Visionary CEO Bryan Trussel

Much has been documented on the features of Glympse, so I wanted to chat a bit deeper with Bryan Trussel, Co-founder and CEO, and talk some about where we are going in terms of location technologies.  It was an very interesting conversation and below is a full transcript of the interview.

Location is not a game, it’s a utility.  Elaborate on that statement…

You speak in terms of forward thinking, it is interesting… the elements in our initial meetings and slide decks were hilarious, it was stuff like ‘we think smart phones were going to become more prevalent, we think social networks up and coming’… if you look at the time when we were doing that, there weren’t many smartphones out in the market… people questioned our assumptions.

The thing is people have been sharing location – 90’s and today – just not digitally..  analog.  People share text or phone call.  That happens 10’s of millions of times a day.  Now with location today, you use location in games and searches, etc… but the “hey, where are you?” question happens quite often each day.  And that’s where we saw the real opportunity.  Hey If we can make it easier to share location, more rich, more dynamic, make it simple without privacy concerns… almost a reflex in peoples lives, that’s where we want to be. we are 10% there but happy with where we are today.

We make the claim, like meeting with you today,  I could text or call a few times to let you know where I am currently… or I could just share a Glympse at the beginning and then not worry about and you can see for yourself.  We will be really happy when people everywhere are sending Glympses everyday like a normal action, like a text.

Why is location important?

Take from the beginning of time, from the caveman going out and slaughtering the mammoth (family members wondering where they are), from the ship going out on the horizon and people on the shore wondering “where’s the ship”  to the pony express riding the horse, to the telegraph, to now a telephone, now everything is real-time… so if you fast forward accounting for advances in technology… you see a pattern of something people have done since the beginning of time – wondering about someone’s location and whereabouts.  And we will have this need 50 years in the future, If you can take that and make it easier, more rich and simple… we think it’s a good place to be.

Now that’s not to say there aren’t going to be a lot of other ways to use location in lives, but there was this thought around that there was only one or two player in location space, no… hundreds and thousands of ways with many different things associated with it.

So you would view it as a splintering of the category?

Yes, just like the Internet.  What’s the power of the Internet,  There’s thousands of categories… ecommerce, social, information.  When the Internet came along, borders were broken down the big thing was connecting someone here with someone in Belarus.  Location was irrelevant.  But I think when we were doing that we forgot, it’s more relevant right here.  Your daily life is in the real world.  The people you shake hands with, the kids you come home to… now we can take all the things where location matters.

Now we are seeing the emergence of local, hyper local… The power now seems to be “on this block”

Yeah, it’s like the opposite as before.  take search as an example…. when the Internet was in it’s infancy.  I can search movies in Tokyo, but is that really relevant to me?  But now, geez, there is so much information.. now things like twitter, flash mobs, social networks, coupons, things I can touch right now.   That’s just starting to take off.

Where do you see this space going?  There is an open path for sure.

So it’s kind of foggy.  But here’s where i think it’s going… I make the analogy to the .com era… it was new and nascent, but now the Internet is part of every company, everyone has a .com… it’s just part of the company.  So will location, it will be infused in everything.  Now where you look up a movie theater app, restaurant reviews, coupon, interact with people.. they all have it,  it will transcend most things.  You will have this class of things location will just sit on top of.

Do you think there will be one major player providing location?

Stuff will move up the stack.. two years ago you could have had a company could have had cool GPS chips, then you had companies build up location databases, then you had an API for developers to find location information, now you have companies providing automatic geofencing, you now have I think we’ll just have innovation higher and higher… it’s so easy to do now.  If I can get that, what service can I lay on top of that.  The innovation will just be higher and higher up the stack.

Outside of the “I’m late for the meeting” scenario, walk me through your dream use case.

That might be peoples entry point, then they start to use it more and more deeply in their life.  Probably one of the most common scenarios has gone from “I’m late” to I’m on my way”.  We just put out a new releases where you can put a little icon on your home screen, you can make one like “going home” and you just touch it and then go.  That replaces the annoying questions such as “have you left yet? Have you left yet?  Yes I almost have, no I am stuck in traffic”   People use it when they caravan the kids to soccer.  Where we see it going, where we will be happy, is where people use it in all the scenarios where they could use it.

Take a look at text messaging.  Go back to your text messages, probably 10% involve your location… We see it going from “i’m late to “I’m on my way” so people just do it for fun, I’m going on a run, going out shopping.  Some guy sent one out last week where he was moving out over a field, then he goes over a river, then he starts running in circles… turns out he was hang gliding!  He sent a Glympse out for people to watch his hang gliding.

If we can succeed in our vision, where people use it all the time, making  if you fast forward a few years this premise of people being confused with where people are goes out the window.

Privacy, where do you sit on that issue?

It kind of goes in waves. 80% of the people just want to know that they are in control.  We do several things, A) you never share your location until you say go, B) you set the timeline so it stops when you want it to, automatically, C) we put ‘stop broadcasting’ very prominently in the UI, and you can delete any Glympse at any time, it disappears from your phone as well as off our servers.

In fact, we have a policy to delete any from our servers after 48 hours anyway.  So, I think people will ease into it, just like e-commerce.  Remember back in 1996, no one wanted to place their credit cards online.. over time eBay, Amazon and others developed a positive reputation for security.  And people warmed up to putting their card online.  We want to be this brand, “this is a Glympse enabled app” so people will trust it.

You can share as broadly or as narrow as you want.. to Facebook, twitter, or just one person.

In terms of privacy, we believe in baking it into the product, very obvious and user controlled. Rather than making people read 50 page privacy statements.  It’s all right there.

We built an much more complex location platform initially, it was too complicated, so we actually threw the majority of that away and focused on the utility of it.  The simple action of sharing your location with someone.

So do people have to have the app to receive a Glympse

Nope, people can view any Glympse through a mobile web interface.  What we really want is someone sending a Glympse to anyone in the world, that someone receiving it, “oh, that’s cool” and then they look further.. and put it on their phone and then start using it.  We don’t have a marketing budget… it’s how we have accrued million users through that viral technique.  It’s worked pretty well for us.

16 Years at Microsoft, describe your journey and what pulled you away?

I was at Microsoft in the mid 90’s, it was very fun, challenging, great time to grow up in the software business.  I started in the windows department, then went into games and X-box for a while.  But I always wanted to go and try my own thing and I was really interested in the consumer side.  Even then, I always had the “itch”… it’s one thing to succeed at Microsoft, it’s another to be successful on your own, without millions of dollars and the big name behind you.  I called up some friends in the same situation, we were excited about mobile, about location, and we determined to go do something in the consumer space.

It’s a shame, everybody can’t jump into the entrepreneurial world even for a year or two..  Even if you fail, you will learn so much more.. I am more effective, more driven.  You can’t study from the sidelines..

Do you feel some just don’t have the itch

Yes, i do…. everybody likes and wants a challenge, the adrenaline rush… even in a big company… with that said, you have to put everything into it to succeed and some might not want to do that in their life.  If you are not driven to go make it happen, you are probably not an entrepreneur…

What is the most important characteristic of a successful CEO

THE?  Probably the ability to rally people around a vision.  Which means, A) you have a vision, B) you believe in it, C) it has to be a vision a bit off kilter, because if 5,000 others have the same vision you will get beat.  So it has to be enough off mainstream that you have an advantage, one that makes sense… high risk, high reward.

What advice would you give young entrepreneurs out there who are just starting out.

If you can jump in to the entrepreneurial space early in life, do it.  If you can surround yourself with the people who have done it,  do it.  I can’t image a scenario where even if you don’t succeed, whatever it is you do, that experience will be beneficial.  I wish I would have done it earlier.

Internally, the Microsoft experience was an advantage since we knew how to build and roll out a software.  But externally, when talking to investors, it was a liability would look and say “oh, how long were you at Microsoft?”  They would question if we really were entrepreneurs.

Initially, we had to bootstrap our company, prototype our product and show we could get traction.  Then we were able to show that we could built what we say we can build.  Then we took that to some angels, got some money, then took the product to VC’s.  It was a lot easier once we got something in the market.

So you plan on expanding the team?

Yes, that is the main reason for the latest funding round, we will be expanding the development team.  We got a lot of opportunities in front of us.. That is the cool thing about this area, Seattle, there is a lot of smart, entrepreneurial minded technical people here.  It’s a great place for us to draw upon for talent.

The Future of Search: Why Humanoids Will Rein Over Androids

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 II of the series, you can find part I here.

In my last post I briefly covered how the nature of the web is rapidly shifting toward social.  I also noted the future of search does not look bright for Google, who seems to constantly struggle connecting social dots.  I call this new category (formerly known as Q&A) Social Search and here’s why I think it is emerging as the future of the web.

Semil Shah, in a recent post suggested Google is Asking the Wrong Question With Social.  He seems to agree with my stance:

Before the Internet, most “search” was conducted through offline directories and by the time-honored evolutionary tradition of asking questions. “Where would you recommend I stay on my trip to Hawaii?” “What dish did you order at that new restaurant in the hotel?” “Where can I get the best deal on that hotel?” Google has elegantly stripped down these queries and trained us to, instead, enter the following text in a search box: “Hawaii + hotel deal” or “Hawaii + restaurant + popular dish.”

Now, that might be how some geeks actually ask questions in real life, but this is not how we are wired to search. We are most accustomed to asking questions as an extension of our own curiosities.  And while Google keyword search is incredibly efficient, the content it points us to is unfortunately declining in quality. The bottom line is that although it’s never been easier to search online, it’s getting harder and harder to find exactly what we’re looking for because there are perverse incentives to not only create, but also promote, keyword-optimized content.

Eloquently put: traditional online search goes against our biological inclination of gathering information – asking questions.  Naturally, humans tend to search for information through asking other people questions because we intuitively know everyone is an expert at something.  And as hard as Google tries it cannot create an algorithm as intelligent as a human being, let alone harness the quality of knowledge curated from many different people and perspectives.

So what’s the point of social Q&A and why is it merging into the next form of search?

I would postulate the original point of asking questions – even dating back to prehistoric times – was actually search.  It was how humans searched for information before Google, PageRank and keywords were available.  Cavemen conducted searches when they asked others where they made their last killing for the same reason we, in the 21st century, type “pizza” into a Google search bar; to find out where to have dinner.  Because most humans are now constantly connected, it feels more natural to use social tools to find information.  Notice how often we send out messages on Facebook or twitter asking our friends  this or that, if they have eaten at a certain Pizzeria or seen the latest Transformers movie.  It is not a coincidence social questions are increasing at a rapid rate.

As I was talking to a CEO the other day he made an interesting analogy I think fits well in this discussion.  During the first internet wave (mid 90’s), it was fascinating how you could sit in a coffee shop in Seattle and somehow find information, communicate and do business with another person in a place like Tokyo.  Borders became irrelevant as the web layered on a communication system that spanned the globe.  Never before in human history had we experienced this phenomenon and it certainly was socially and economically transformational.  But today, do we really care about what is available to us in Tokyo?  More than what’s available in Seattle?  Do we want 1,000 different options displayed on 100 pages to requiring time and attention to sift through?  No, the pendulum seems to be swinging back the other way.  We care about what is going on down the street, in our social circle and in our immediate local surroundings.  We want to be shown what is MOST relevant to us at the moment (and not have to see the rest).

It seems the cycle in Search has followed the same trajectory.  Google broke through because it discovered the very best way to 1) index and organize the web and 2) bring us information matching specific keywords when we searched.  But it’s a different web now.  The problem is there’s just too much information on the web today.  Like, waaaaaaaaay too much.  The major player(s) are struggling to instantly sift out 99.999% of the information in the world so they can provide us the most relevant and useful .001% – our answer.  What they lack is intuition.

For example I live in Seattle and right now I am hungry for pizza, in fact New York Style Pizza, so I choose to do a quick search on Google “New York Style Pizza” to find an viable option.  Observing the image above, it is clear Google is lacking in the contextual department.  Lil’ Frankies and Big Al’s are both pizza joints in New York City!  Amazingly, nothing on the page has anything to do with pizza here in Seattle.  This is not good.  I’m pretty sure my friends on Facebook or even growing local social search platforms such as CrowdBeacon or LOCQL would provide me a New York style pizza option closer than 2,400 miles.  I am aware Google has made strides in localization, but it is not apparent when I quickly use their main search tool.  This simple query illustrates how broken search is at the moment.

It is becoming clear to me, as more  and more information gets created each day, how important our network of social contacts are in bringing us information. More specifically, those two phenomenons are inversely related – as the amount of information grows, the tighter and more important my social contacts become. Why? Because as the amount of information increases we need context and location to help determine relevance. Context can help determine if I am searching for a pizza place in New York or if I am looking for New York style pizza. Location helps define if I am indeed looking for a New York style pizza joint here in Seattle.

Another noteworthy contextual observation is the innate difference between certain search decisions, for instance searching for a clothing retailer versus searching for a restaurant. I would be fine buying a shirt from a distant retailer in New York City. Ordering pizza…? Not so much. Google’s Android DNA doesn’t seem to understand humanoid nuances at all. I guarantee a social search application (powered by my friends) would intuitively understand the contextual and location nuances within my searches.

Understandably, this is freaking Google out and forcing them to push socially awkward applications onto their users at an increasing pace. Unfortunately this is not how social works, you simply cannot rush things on the first date or you will never have the opportunity for a second one. Google+ looks to be their best social offering as of yet, but only time will tell if they have finally aligned the social dots.

It is now clear why Google purchased Aardvark, one of the social search companies I highlighted in my last post. Just read this brief overview and think of how it could help us search:

Aardvark is a way to get quick, quality answers to questions from your extended social network. You can ask questions via an instant message buddy or email. The questions are then farmed out to your contacts (and their contacts) based on what they say they have knowledge of. If you ask taste related questions about music, books, movies, restaurants, etc., they’ll ask people who tend to show similar tastes as you in their profile.

It will be interesting to see how (and if) Google integrates Aardvark to help navigate this new search territory. Regardless of the outcome, I do not think Google will loose its shirt anytime soon. They have a stranglehold on the overall search market and most realize there are many different channels in search. I agree with Semil,”This type of search, or social discovery, will become important, but it won’t dominate search—it’s just one channel, and different social networks exist for different parts of our lives.” 

This is just the beginning of an incredible change in how we will find and use information and I cannot wait to see what emerges. In five years (2016)  we will not be looking at a white screen with blinking cursor begging us to type a few short words into the search vault so it can pull thousand’s of links for us to plow through.

In my next post I will go in-depth on the first of the four quadrants of social search, an area I believe has yet to fully experience this massive technological revolution.

Here’s 10 Reasons Why You Should Sponsor The SoEntrepreneurial Blog

See that mountain biker over there to the right?  That could be your business/company image and link for an entire month.  Monthly Sponsorship Investment -$5oo.  A quick payment through paypal will get you highlighted for 30 days straight on this blog.  Why the specific amount you say?  Here’s 10 quick reasons:

Nick needs to make blogging a sustainable practice.  He has been told he is pretty good at it and he enjoys every minute and every interview.  Please think about how you can help him and send this to any founder, entrepreneur, business owner, lawyer, dentist, investor, CFO, CEO, CPA, MBA, MD, student, grad student, mother, father, grandson, brother, sister, and baby you can think of who might be able to keep SoEntrepreneurial adding value to your life each day.

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Here is Why Your Passion is Always A Blessing

This post is built off of Bob Crimmons’ recent post Entrepreneurial Passion: A blessing or a Curse.  In one part I agree with Bob and in another I find disagreement and will offer a slightly varying perspective.  Let’s call it taking a different path to a similar conclusion and in doing so encouraging any entrepreneur that yes, they should pursue their passion to the fullest extent.

I agree with Bob in his general message – you must validate the idea you have become passionate about.  As he eludes, it is natural for an entrepreneur be overcome with the passion for “scratching their own itch”, working long hours to get something out into the market only to launch and then realize their execution is all wrong.  The way around this (and what I believe Bob was encouraging any entrepreneur to do) is to do massive market testing and validation prior to any time invested in production.  How do you do this?

Observe – Go into your target market’s environment and observe them interacting around where your product would fit.

Investigate – Ask them open ended questions regarding their thoughts on X, Y, Z products and features.

Float The Idea – Spend $25 on a google ad promoting your product with the link leading to a landing page, observe the click response.

Test and Research – Do massive business model research prior to launching a product, especially if you are developing a “social app”.

These are just a few actions that fall within due diligence and business validity testing and they should be done prior to any product work.  So yes, I agree with Bob when he cautions entrepreneurs in blindly pursuing their passions.

I should know, I was the guy Bob was talking about the first attempt at my start up, Loyaltize.  I was extremely passionate about building a business which not only was to be a web 2.0 darling but would also rewrite the books for the new social media marketing era.  Our bright idea was to integrate local business marketing and the support of local non-profits, such as youth soccer teams.  Local business created offers and coupons with donations tied into them, so when someone redeemed the offer a donation would go from the local business to the local soccer club.  Everyone wins right!  We were so passionate about this idea we spent more than a year to build our site (remember, I was living a double life so things take double the amount of time you think they should) and finally launched in our test market.

BAM…. fell right on the ground.   We scraped it forward for about six months but basically realized our execution around a few main features was flawed.  Would we have saved the year if we did proper user testing and validation?  I am not sure but we would have learned a few key lessons and we probably would be still growing right now had we validated properly.  I learned you need to do major validation, testing, and “pivoting” around your initial assumptions to get the proper fit.

-I am now going to talk strongly here and although I have never met Bob, I fully respect him-

What struck a cord when I read Bob’s post is I am that guy – incredibly passionate, focused, head down working to build out a new platform to take over the world.  It struck me quite deep because after working so hard on something you start to wonder if you are doing the right thing and really cut out to be an entrepreneur if things aren’t coming together.  It struck me because, as they say, “truth hurts”.

Passion definitely can work against you, and if you are an entrepreneur you are probably nodding your head with me.

But I would caution Bob on cautioning entrepreneurs to be wary of their passions.  It has the potential to send the wrong message to young aspiring entrepreneurs; because it’s not what you say, it’s what they hear.  They will hear messages such as “don’t follow your passion, follow a proven business model” and “Your passions are not valid businesses”.

Following a proven business model does not inspire innovative new ideas, it does not create new markets nor does it spawn new industries.   Encouraging entrepreneurs to follow proven business models creates hundreds of daily deal sites.  We don’t need more competition, we need more innovation.

I would not be writing for you today had I taken Bob’s advice.  There is a high probability that if I went to a mentor such as Bob and they cautioned me on pursuing my passions, I might be on a different path.  Keeping aligned with my passion is what helped me gather enough knowledge and courage to make the leap and put me in the position I am in today.  I am so grateful someone I respected didn’t pull me aside and say “ya know Nick, this Loyaltize thing just does seem like it’s panning out for you.  Are you sure you should pursue this passion?”

I think Bob’s message takes the wrong angle on a good point.  Rather than telling entrepreneurs to be wary of things they are passionate about, I think a better angle on this issue would be to encourage entrepreneurs to harness their passions for everything they have.  Understand you have been tapped by something (someone) and dive deep into the problem area you are looking to bring a solution to.  Indeed entrepreneurs need every ounce of their passion to get where they want to go.

Jack Dorsey was obsessed with how cabs moved and communicated about the city.  He was so passionate about the idea of communication networks he sat on the idea for twitter for something like 6 years.  He couldn’t shake it and decided to build it even though it seemed crazy and didn’t make sense.  We are lucky to have twitter today to help us connect with people around the globe (@jnickhughes if you want to connect with me)

Dennis Crowley was seemingly obsessed with location aware technologies, so he built Dodgeball.  He ended up selling it to Google quite quickly, which some saw as a success, but they subsequently shut it down.  This really bothered him.  Because he was so passionate about this concept he build another application, Foursquare, with the knowledge and validations they learned from Dodgeball.  Foursquare just crossed the 10 million user mark in a little over 2 years and is paving the way in geolocation applications.

I am not being facetious here, I am being totally serious.  I guarantee Jack, Dennis, Steve Jobs, Bill Gates or any other successful entrepreneur followed their passion.  The next “Jack” or “Dennis” is probably reading this right now.  They are gripped by something in the world, so gripped they want to build a product and business around it.  I say follow it.  Build it.  Test it.  Work it.  Rework it.  Test it again.  Stay on it.  Just don’t give up, the right thing will come together.

Call me crazy and laugh to yourself if you want, but I wholeheartedly believe this: The only difference between you and Jack Dorsey is… you just haven’t figured out the combination yet.  That is it.

In fact, I am of the camp we need more entrepreneurs who think bigger.  I agree with Jason Freedman of FlightCaster.

Jason wrote a post recently about a recent trip he took to visit some friends, Henderson and Rebecca who live in Mississippi.  He was shocked at what he felt as he was leaving them:

I’m glad we’ve moved past throwing sheep at each other on Facebook.  I’m glad we’ve moved past acquiring users by downloading someone’s contact list and spamming their friends.  The startup ecosystem is much healthier than it was in 2008.  But still, I’m concerned.  As a fellow geek and early adopter, I’m psyched for one of the photo-sharing concepts to really take off.  I think it’ll be sweet to instantly share pictures with my friends in cool new ways.  But I know it’s not a huge problem for Henderson and Rebecca.  It’s just not an issue that affects them.  I’m concerned about how many of us are working on problems that just don’t matter all that much to the rest of the world.

Look, it requires a lot of passion to change the world.  I mean, to really impact Henderson and Rebecca you are going to need to harness all your passion and give it everything you got.  Just remember to test and validate along the way.

Image courtesy of Flickr user Horia Varlan

Here’s My Call For The Occassional Unplug

Our world has changed quite a bit in the last 10 years; always connected phones, tweets, Facebook status updates, digital maps for when we get lost, free music 24 hours a day streamed through our mobile phone.  Sometimes it takes unplugging and detaching from our devices for a few days to realize how far we have progressed.

I am connected and on from the moment I open my eyes each day until the minute I fall asleep.  Every day I read and write on this laptop.  Every day I listen to music through my “phone” (imagine saying that sentence 10 or 20 years ago).  I also us my phone for messaging friends, browse online and shop and pay for things.  Using technology has become an integral part of my life, as I assume it has in yours.

I recently took a weekend backpacking trip with a few good friends in the mountains of Washington State (about 2 hours east of Seattle).  It was awesome.  Getting out in nature sans any electronics and internet connected device is so rare today I think most don’t even realize how great it is when you get out into the country for a short time.  Nature has now become the exception, not the rule.  This though started to brew this last weekend.  Below are a few thoughts I picked up as we trekked through the mountains.

We use our tech devices for EVERYTHING

Looking for directions, location information, talking, messaging, searching for information, taking pictures, sharing pictures, planning ahead, making a list, reading an article, updating on news, killing time when we are bored, and many more…  Wow, it doesn’t become so obvious until you don’t have your internet connected device on you – we are a constantly connected society that fully depends on the internet to function.  We actually can live and function without them.

Life is more peaceful without constant interruption

In fact, with my phone disconnected and turned off, I did not have distraction or interruption to take me away from the moment.  Think about it for a second, the mere fact that you have an informational device on you capable of so many different things is in itself a distraction.  You can grab it anytime to check and see if someone has text or called you.  You can bring up a little game you have been playing to kill 5 minutes while you wait for someone.

These little mental”recesses” take you away from the moment you are in currently, and I would argue this is one of the reasons more people are stressed out, short fused and possibly feeling like they are going crazy.  The brain has no time to take in the moment, uninterrupted.  Being in the wilderness even for 72 hours helped me get some of this peacefulness back.

Your body needs to be physically challenged

With technology advancing so rapidly, it seems we continue to develop applications that do for us what we used to do physically.  This is not the best situation for us, as a species.   No one will argue we are getting larger as a society, as well as less healthy and more lazy.  Getting out on the trail, putting 40 pounds on your back, hiking up a mountain, burning some calories in the process all help you maintain proper physical fitness.  It felt great.  I will never lose my physical ability to run, hike, swim and play as children do.  I believe that is what life is all about.

Sometimes we need to unplug and bring ourselves back to how life was meant to be experienced – naturally.

How to Connect in the Twenty First Century

Connect.  What do you think of when you hear that word?  I think most people think Facebook Friending, Following on Twitter or emailing a contact.  “Hey, let’s connect.”

Our definition of connecting has changed a lot in the last decade.  Think about it for a second; back in the year 2001, we didn’t have Facebook, Twitter, Gmail, or smart phones.  In fact, if I remember correctly I didn’t get my first cell phone until 2002 or 2003.  Before the turn of the century, we actually spoke or even looked at the person we were connecting with.  No so today.

Why is this important?  Understanding how to connect with people is one of the foundations to success – as a person first, and a professional second.  If you cannot connect with another person on a level where trust is established, you will find it hard to make inroads in your life.  I believe trust is found through the eyes (for proof, even looking at those eyes above feels a little crazy).

I have had the fortune to meet a lot of new people recently, and I make it a point to set a time to meet these people in person, shake their hand, sit across the table from them and look them in the eye.  Why?  Because this creates a trust bond.  Even after 30 minutes of talking, once they know you are genuine, a bond has been created and a great things can now happen from that interaction.  Great things like further introduction into a tighter social/professional circle and connections to other like-minded people you otherwise wouldn’t end up meeting.

That is what’s happening to me right now, and it’s great.  I can’t wait to repay all the favors people are doing for me.

Image courtesy of Flickr user Antropsicosociopatologico

Another Lesson Learned: See The Opening

I woke up yesterday to a pretty cool email waiting in my inbox with the words:

“We would like you to come in and interview Giant Thinkwell and Sir Mix-A-Lot today”

This doesn’t just happen to anybody, and it certainly doesn’t happen to someone that waits for opportunities to fall in their lap.  Successful entrepreneurs MAKE things happen.  And to be brutally honest, I pretty much made this happen (acknowledgment: with help from others to connect the dots).  How?  It all started 3 months ago.

  1. I connected with a founder of a recently launched startup about 3 months ago
  2. We stayed in contact via email, sometimes not hearing from him for months at a time
  3. I started writing on this blog
  4. I started shooting out my posts to larger publications around the country
  5. BusinessInsider.com like my writing, published a few posts and offered me to become a contributor
  6. I finally met up with the founder a few weeks ago and chatted about my latest happenings (quitting job, blogging, looking for connections)
  7. He connected me into a local startup communications list last week
  8. Giant Thinkwell, a local startup, announced they were releasing the Mix-n-Match app on the list
  9. They also requested help and asked if people could spread via social networks
  10. I reached out and simply commented “I could do a post on BusinessInsider.com if they wanted”
  11. I recieved the email in the morning and that afternoon I was sitting across the table having a conversation with “Mix”

Successful people jump at opportunities and follow through on them.  You cannot wait around for someone to find you and give you exactly what you have been looking for.  You must go make it happen.  Like a running back in football, when you see an opening, you must go for it.  Sometimes that little opening will make all the difference in your life.

Image courtesy of Flickr user Monicas Dad

An Exclusive Interview with Sir-Mix-A-Lot Baby!

Giant Thinkwell, a social game studio based in Seattle launched a new Facebook game today called Mix-N-Match that features Grammy Award-winning hip hop icon, Sir Mix-A-Lot.  Mix n Match brings you and your friends along side Sir Mix-A-Lot to hang out, learn more about the entertainer, win stuff and have a good time.

I had the opportunity to sit down with Sir Mix-A-Lot and Giant Thinkwell CEO Adam Tratt today for a little chat about the new project as well as the recent changes in the entertainment industry.  When you sit with Mix, you get the feeling this man knows what’s going on.  He is curious, quick witted as well as forward thinking.  You also get the feeling he is not done yet.  Here is an excerpt of our interview.

What attracted you to Giant Thinkwell?

These guys are geniuses.  From my perspective, a guy who came along in an era where you were distant from your fans, not by design, that is just how it was.  It was all systematic.  They produced the record, they distributed the record, they promoted the record, you wait till you get the call.  The way you sell records now is totally different.  These Giant Thinkwell guys are rock stars.  They are the mega pimps of this era, and they understand it really is about connecting with fans.  They get it!

What did you do back then in the day?

It was really the label.  They had a team of people who scripted how you were going to do things.  They did everything.  As an artist you were very removed from it all.  Most guys have just pulled back.  My manager has been talking about this stuff for a long time.  And now today, your fans know everything, like what time you take your dumps in the morning to what kind of underwear you are wearing, ya know?

Adam, is this Giant Thinkwell’s first app?

No, but it is our second.  So our story is the company was born at Start-up weekend.  In the beginning of social games it was the Wild West, and  Zynga was doing whatever they wanted on Facebook.  Now, everyone else is now clamoring for a piece of it.  Zynga already has their customer base of 500 million players.  What we realized is there is very little in the area of Branded Entertainment, and what is out there is really not that good.  So we thought, why don’t we take 2 things people love, social games and entertainment and put them together?

Where do you see this category of apps going?

Adam: What’s happening on the sidelines in entertainment is the whole model is changing, people aren’t buying records much any more.  It’s all changed.  Entertainers and celebrities of all kinds musicians, actors, athletes, will be interacting with their fans on line, in fact they do it already.  Social media right now is about talking AT your fans.  So we think the model is going to change.  The bar is going up. We think the way a guy like Mix announces and releases a new song will change.  And we want to be a part of it.

Mix: from an artist perspective, this is the first time in my career I can shape my brand, my personality.  They used to think “OK, this is a dumb guy who likes Big Butts and asses” (according to Mix only part of that is true) because that is how I was promoted by the record labels.  But now, I come down to meet with the Giant Thinkwell team and they don’t go, “this is what we’re doing”, they say “what should we do?”  Finally I am able to deal with my fans one-on-one on my terms with my personality.  It’s great!  I predicted the demise of the music industry back in 1999.  So today, I’m not like Lady Gaga and the way she is with her fans, but it’s on my own terms.  You are your own marketing firm now.  The gangsta element of record business is gone forever.

Do you think it’s a better time to be a musician?

Good Question.  From an old school cats point of view, no it’s not a better time cause back then we were spoiled.  But a new artist just breaking in, yes it is.  Because Music is more honest now.   You can get your stuff out into people’s hands in so many different ways.  So the cream is going to rise and the good ones will break out naturally.

You’ve seen success, what is the most important characteristic of successful people?

Mindset.  I have never met a successful person who talked about failing.  The glass is always half full.  I don’t even like being around negative talkers.  And secondly, they always figure out a way to monetize something.  You find a hole in the market, find what people don’t have enough of… and you supply it.  There is a big difference between those people who have the entrepreneurial spirit and those who are talented, but scared of themselves.  They are always sitting in the corner, shivering, wondering why they can’t make it.  Successful people jump at opportunity and take advantage of it.

What keeps you going?

Anything new.  I just started new company called True Human Interface, software to help people make music easier.  Right now we are finishing the brains of the software and we’re thinking sometime early next year we’ll have something released.  If you look at a lot of the older artists, the only ones who are still profiting are the ones trying these new things.  Our goal is to come out with a strong, serious product.  I was watching them edit True Grit, and they edited the whole thing with mouse and keyboard.  It was crazy!  We think we can have some good ideas to help make things easier.

What advice to you have for young entrepreneurs?

Make sure that you have  is unique and necessary, make sure your dream is viable.  Second, don’t be afraid to fire someone early if they are not the right fit.  You need to make sure you have the right people in the right places.  Lastly, don’t be afraid of criticism.

Image courtesy of Wikipedia.

She Takes it One Step Further

Noreen Seebacher does a great job of picking up the Leadership conversation where I left it the other day.  I stated the performance difference between Apple and Microsoft can be summed up with one word: Leadership.  Noreen goes into further detail here.  From her post:

But what defines a great leader — and what should companies look for in leaders of tomorrow? Apparently, it all comes down to the four Cs: Critical thinking, creativity, collaboration, and communication skills.

It’s a great follow on post.  Go head… check it out.

Are You Being Brutally Honest With Yourself?

Chris Dixon writes in a short piece on Founder/Market fit about not only aligning yourself and your strengths in the proper market but also understanding where you fall short.

Founders need to be brutally honest with themselves. Good entrepreneurs are willing to make long lists of things at which they are have no ability. I have never built a sales team. I don’t manage people well. I have no particular knowledge of what college students today want to do on the internet. I could go on and on about my deficiencies. But hopefully being aware of these things helps me focus on areas where I can make a real contribution and also allows me to recruit people that complement those deficiencies.

Most importantly, founders should realize that a startup is an endeavor that generally lasts many years. You should fit your market not only because you understand it, but because you love it — and will continue to love it as your product and market change over time.

This is so true and applies in my life.  Great entrepreneurs know where they are great and are honest about their weaknesses.  I constantly ask myself:
  • What are my strengths?
  • What is it I do better than anyone else?
  • What are the areas where I am weak?
  • In what areas do I (and my company) need help?
  • Who is strong in those areas?
  • How can I inspire them to join me?

Here is What You Can Learn in 30 Days

One month ago today, May 17th, 2011 I started this blog.  I had just quit my full time job to pursue my entrepreneurial dreams and truth be told – I had no idea what I was actually going to do.  All I knew was I did not want to have a job anymore, I wanted to build a company and change the world.  I wasn’t really sure HOW that would happen.

Previously, one of my biggest challenges was I an outsider  and found it difficult to connect with people in the technology industry.  (Or at least the opportunities to connect.)  That changed once I started my blog and writing for major publications.  This has been the craziest month of my life at the same time the most relaxing month of my life.  I joke and say “my life is pretty cool right now, I call the shots and pretty much do what I want to do each day.”

In the last 30 days I have spoken and interacted with entrepreneurs from NYC, San Francisco, Helsinki, Finland, Bangalore, India, Austria, Australia, and many other parts of the world.  After years of tying to build out my company with a small team here in Seattle, I cannot tell you how many offers and business opportunities have come my way.  I do not say this to boast, I say this so your eyes are opened to the opportunities right on the other side of the door you are staring at right now.  It is all due to me taking the leap without knowing if the parachute was actually on my back.

After a failed first attempt I am back to the drawing board with my company Loyaltize.  I am still going to build a company?  Will it be Loyaltize?  How will I do it?  What will it look like?  With whom?  All these questions I could not answer (most I still can’t).  But regardless, this has been the single best decision I have made in my life.   More doors have been opened in the last 30 days than were opened in many years living a double life.

Here is what I have learned in 30 days:

    • Fear of the unknown paralyzes most people.
    • Letting go of the past and embracing the open road will lighten your load.
    • Most people only dream of quitting their job and pursuing their dreams.
    • Pursuing your dream is only one decision away, make it and don’t look back.
    • Once I came to terms with letting go of a comfortable income, other opportunities emerged.
    • Extending your self through written words greatly enhances your influence.
    • Influence is one of the most powerful things in the world.
    • People the world round crave inspiration and want to be uplifted.
    • Great writing is in low supply and high demand.
    • Confidence will get you through the early stages and any foggy future.
    • The blog posts you think will be huge are not, and the ones you write in 20 minutes can be your most impactful.
    • The titles of blog posts directly determines the number of viewers.
    • Learning how to write a blog post and titling it correctly is great marketing education.
    • The dogma of habitual thinking can hold you back.
    • Stripping everything off and starting from scratch feels good and can free your mind for clearer thoughts.
    • When starting something new, doing it every day for 30 days really does make you better.
    • The road is wide open, very long and waiting to be taken for a ride.  If you are thinking about it, just do it.

Everything In Business is a Test

Test.  Test.  Test.

Everything in business is a test.  The good ol’ days – writing a business plan, pitching for investment, building out a product for the exact market stated in the business plan, launching the product through a large budget Launch strategy – those days are over.

As an entrepreneur, you should now consider yourself a scientist.  Your job now is to run as many tests as possible, with the least amount of expenses to find mass adoption of your product.   The tests should start in the ideation phase and shouldn’t ever end.  The single worst thing you can do now as an entrepreneurial is have one idea and do everything you can think of to bring that specific idea to market.  Start with a problem area and test ideas around it.

Test for consumer problems

What problems are present in which you can bring a solution to market?  The best businesses solve a problem consumers have (or didn’t know they had but now realize life is better with your product).  I heard the other day: You cannot just ask consumers what they want – they do not know.  But if you observe and test them, their actions will lead you to holes that need to be filled.   Inefficiencies will present themselves.  Great entrepreneurs see these inefficiencies early.

Test for Product/Market fit

tubesOnce a problem is found and a solution has been built, the real work starts.  Take it from me, your first attempt will not be the golden fit and you will have to re-align somethings.  Call it pivot, call it whatever you want… it will happen.  I don’t know why we are making such a big deal about pivoting, great entrepreneurs constantly pivot their ideas until they get the right market fit.  Ask Edison, he pivoted like 5,000 times…

Test for Business model

How to make money is the question every company must face.  I believe this is an area a startup must test early and often.  This question should never have just one answer.  Small tests on business model, payment options, advertising (I know… I know….) and other methods of creating revenue.  It’s just a test.  Do some A/B testing on a select group on users.  Release a payment option to 1% of users and see what happens.  You might just discover your next big innovation and create a new billion dollar industry.

Test for Perseverance

Ask any founder of a startup (still running) and they will have hours of talking on the subject of perseverance.  The startup experience will test you and your perseverance.  Just don’t give up.  Do anything you can think of to put off the quitting of your vision.  Read Delivering Happiness by Zappos Tony Hsieh to get an idea on Perseverance.  I had no idea they went through the hell they did with their startup.  You need to read this book if you are a founder of an early stage company not knowing if the future is bright or bleak.

Test for leadership

I laid out the importance of brand and company leadership expansively in my last post The One Thing That Separates Apple From Microsoft.  Suffice it to say I think this is the most underrated, under-talked about, overlooked but most important aspect of building out your long term brand.  You must answer he question: Why are consumers going to want to use my product?  Believe it or not, it will be due to the leadership of the company CEO.  Test your leadership skills early and often to find the right connection with general consumers.

Test for Funding

Investors don’t tell you this, but they are testing you at every stage of the game.  First time you meet them at a “social event” they are testing your IQ and your EQ (your social intelligence) to see if you are someone they would even want to take an interest in.  Next time when you meet for a pitch, they will test your concept and your perspective on the market.  When they don’t call you back, they are testing your perseverance.  When they give you money, they are testing your ability to turn X into 10X.  If you pass that test, you will most likely be able to get money from them anytime thereafter.

I could go on… but I think you get the point.  If you thought your tests were over after graduation, think again.  They only have just begun.  Embrace the test.

Image courtesy of Flickr user Canyon289

The Story of How Pandora Radio Almost Died

I love the Pandora Radio app on my iphone.  I listen to music most of the day – in my room or around the house, in my car, outside walking around – and this is possible only because of internet connected mobile devices.  Pandora Radio just recently went public on the NYSE and looks to have a strong future.  It wasn’t always so bright, this is a story of persistence and hanging on by a thread.   MG Siegler of Techcrunch had a great write-up on Pandora the day of their IPO, I think it’s so I will re-post it below.  I like it because you get a sense these founders would not give up on their vision and persevered through much trial and tribulation.

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Pandora was founded in 2000, but it wasn’t known as “Pandora” at the time. Instead, the company was focused on their Music Genome Project, which aimed to extract the DNA from music, as it were, and find commonalities to perfect recommendations. When Conrad joined in 2004, the company was known as Savage Beast — yes, a truly awful name that invokes Savage Garden. In fact, here’s an early blog post from Conrad about Savage Beast that he probably won’t be pleased with me sharing.

When Conrad came on board, the company had just taken its first real venture capital investment (from Walden Ventures) and Joe Kennedy had just been hired as CEO. The idea was to transform the Music Genome Project from a cool piece of technology that was licensed out to the likes of Best Buy, and (our parent) AOL, among others, to a consumer-facing product. That effort began in December 2004, with design work leading up to that. By the late summer of 2005, the product was ready to go.

And here’s where things get really interesting.

“TechCrunch is a part of this,” Conrad says. “We launched, and the first Barcamp was the following Saturday. I got out of bed that morning and almost didn’t go. But at the last minute, I threw my laptop in the car and drove to Palo Alto,” he says. “By luck, Mike was in the room.”

He means, of course, Mike Arrington.

“He got up when it was over, went to a Starbucks, I think, and wrote a post about Pandora. That was the starter pistol for our early growth,” Conrad says. And thanks to the magic of the Internet, you too can see that post from August 20, 2005 right here (note the part where Arrington tries to give out invites from his personal email address, then gives up due to massive interest).

Conrad notes that TechCrunch itself was “about 45 days old” at that point. And he fondly remembers Arrington being annoyed with him that the Pandora launch wasn’t given to him as an exclusive. “At that point, he was just some blogger to me,” Conrad says with a laugh.

But that didn’t stop Conrad from showing up at Arrington’s house over the next several months for the BBQs Arrington used to host in his backyard. Conrad recalls that Pandora music streaming from his laptop would often be the musical entertainment for the evening “while we stood around his little campfire”.

From that point on, Pandora “grew at a pace that exceeded my expectations,” Conrad says noting that millions of users were coming on in just the opening years.

But then the CRB decided the royalties for this new form of radio, Internet radio, needed to be set. Conrad notes that after Pandora was live for about a year and a half, those rates were revealed — and they weren’t good. “It was economically unsound,” he says. “And it wasn’t just us that was affected; Yahoo, AOL, Microsoft, and a lot of smaller guys too.” At that point, Pandora entered into a two-year-long process of negotiating with the record labels over royalties that led to the situation described at the beginning of this post. “This was a complicated period for us,” Conrad says.

But there was also a ray of hope that emerged during this time. The App Store.

Conrad notes that when the iPhone OS 3 (remember, it wasn’t “iOS” at the time) launched in the summer of 2008 and brought the third-party-friendly App Store for the first time, everything changed. “Broadly, the smartphone category accelerated everything for us,” he says, noting that the App Store was the catalyst.

“What we’re really trying to do is re-invent radio. It was consumed everywhere, but least of all at work, and the web browser changed that,” Conrad says. “But the mobile devices took it out of the browser and out into the world,” he continues. Now over half of Pandora’s usage comes on smartphone devices, he says. And that’s incredible since Pandora had been on feature phones for about a year prior to the App Store, but it wasn’t going anywhere. With the iPhone, “the consumer expectation of what they could do with their phone changed drastically,” he says.

Conrad also points out that Nielsen had a recent study which put Pandora in the top five apps in terms of usage on major devices — iPhone, iPad, Android, Blackberry. He believes they’re the only company in the top five on each of those devices.

So the App Store helped Pandora’s mood in an otherwise bleak time. “The timelines do overlap in an interesting way,” Conrad says. But at the same time, he says that he was never too concerned for Pandora having to completely shut down. “The [royalty] rates were so irrational that we were very confident through the period that we would come to a compromise with the rights’ holders,” he says. At the same time, he credits the “incredible outpouring of support from our listeners” as the thing that really motivated Congress to start looking into the situation.

“It was frustrating that it went on for so long, but we thought rationality would prevail,” Conrad says. And even after “RIP, Good Times”, hit in late 2008, he wasn’t too worried because “we focused on the monetization of the product from the beginning.” “Other companies were behind the eight ball, but we were starting to see the rewards from that attention to revenue,” he says.

And then in the middle of 2009, the clouds broke. Pandora (and other Internet radio services) reached an agreement that would lower royalties to the point where the business could work. “Pandora is finally on safe ground with a long-term agreement for survivable royalty rates,” Conrad told us at the time.

“A real period of growth started then.” And today, Pandora has over 94 million registered users.

Story courtesy of Techcrunch