Monthly Archives: April 2012

What NY Times Should Have Said About Startups

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With all the recent talk of a tech bubble, I feel like I have to throw my two cents into the conversation. A recent NY Times article written by Nick Bilton claims that “With the exception of a select few, Silicon Valley has spawned no real companies over the past decade. Even now, as the value of eyeballs has gone down, people are buying concepts, not companies.” He believes that start-ups are merely being founded with the hopes of being acquired by a much larger company. Specifically Bilton spoke of the no revenue business model and how it is accelerating the tech bubble.

As you can imagine this article is very controversial. Many people have stepped up and supported Nick Bilton, while many others have spoken out in utter disgust. For example, check out Dave McClure’s Twitter account to see his explosive reaction yesterday. So what is the debate about? Why is everyone so worked up?

There are many different ideas on the root of the issue. What do I think? The central issue is the value of a company and how it is associated with the value it creates. While the true value of a company is merely what someone else is willing to pay for it, we must strive to look at this differently. The most valuable companies are interested in solving a problem or bringing to life a personal belief. Clif Bar is a great example of a company that has successfully done this. They quickly created huge revenues, they never took on funding and they were created with the hopes of creating a better nutrition bar. After turning down numerous acquisition offers, Clif Bar shined as an example of long term value and growth.

So what needs to change to ensure that we are on the right track? The biggest hurdle is to begin to have companies created in hopes of creating long term value to society. A quick dollar is very tempting but we must figure out a way to make money while creating this sustaining value. This does not mean acquisitions are not good. (I think Instagram deal is a smart move for Facebook and probably worth the $1B valuation).

The emerging market that I hope to see more young entrepreneurs enter is in the social good business. Why not create a company that helps solve a social issue or provides a value to society? This type of thinking will not only allow future companies to better the lives of others, but also creates a value that is easy to invest in. The hard part in this industry becomes how to value a company that solves world hunger….or a company that saves the lives of hundreds of thousands of people? Not very easy.

So while I do not see signs of a tech bubble (yet), as entrepreneurs we are responsible for doing our part to prevent one. This can be done through investing in long term growth, participating in ethical practices, and seeking to solve important issues. By setting out to accomplish these things, you are not guaranteed success but you are guaranteed a leg up in the long run on the kid in a garage trying to build the next $1 billion company in under 2 years. Are you up for the challenge?

Apple Could Buy Facebook In Cash

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Each day I take the time to read through different blogs and news sites in an attempt to stay current on what is happening around the world. Usually I stick to technology, business, and sports. Every once in awhile something else might grab my attention but not yesterday. I read a comparison of two businesses that was absolutely shocking.

Apple has a market capitalization of $426 billion with $100 billion in cash. Yes, your read that right – Apple could buy Facebook IN CASH! Facebook is the worlds largest social network with over 900 million users and $205 million earned in the first quarter of this year, so we aren’t talking about a small company. Not only could Apple make this purchase in cash, it could also completely change the dynamics of our “social” society. Imagine Mark Zuckerberg working for Tim Cook in the shadow of Steve Jobs……(not likely).

Another way to look at how much cash Apple currently has is they could become VERY philanthropic and the Apple cash reserve could help reduce 10% of the US budget deficit. Just an astounding amount of cash. This leads to the question of what are they going to do with all that cash?

The answer is probably nothing. Of course they may invest a few million here or there (chump change to them) but the bulk of it will remain in cash. Even if Apple got jealous of all the Instagram talk and went out to make their own $1 billion purchase, it would only be 1% of their cash. I don’t foresee that happening but with so much hype around explosive growth applications it is hard to predict what any company will do.

At the end of the day, Facebook is a giant but Apple makes them look like a little brother. The amount of cash that Apple has is very impressive. Pay attention to this in the future because it could be a wild ride! What would you do if you had all that cash? 

Why We Need More Brian Dawkins

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The NFL lost a legend today. Brian Dawkins decided to retire from the game of football. Most sports fans know him as the hard hitting safety that dominated with his amazing play on the field. There is another aspect to Brian Dawkins that we should all learn from.

Most people live their lives going through the motions and not trying to stray from the path too much. Dawkins completely destroyed that idea of life. His intensity is something that we should all strive to achieve. Whether it is sports, business, or a relationship, having passion about something creates a feeling of living that can not be replicated.

So a lot of people have passion, why is he special? He is a role model to so many people because of the way that he expressed that passion. Dawkins strived to be not only the best player he could but also to be the best leader and role model possible. From mentoring young players on the field, to showing them how to use their status to better the community, he always led the way. At a time when we always read about sports stars getting arrested or movie stars checking into rehab, Dawkins dominated a sport full of testosterone and did it while still staying true to his personal morals and values. Imagine an NFL player who will likely enter the Hall of Fame and doesn’t curse? Unheard of.

At the end of the day our world needs more people like Brian Dawkins. We can use them in sports, business, or as friends and relatives. They touch the lives of so many people by merely being themselves. Some may call it crazy but if he has fulfilled his life with happiness then who is the crazy one?

Guesswher: A Photosharing Game?

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When I was catching up on New York Tech Day, one particular company that was present caught my eye. Guesswher seems to have an interesting idea and I am looking forward to see what the user adoption will be over the coming months. They are self-described as: “a location-based photo guessing game that you play online or on your iPhone (coming in Spring 2012). Guesswher is the first application to turn photography into a social and fun game! Guesswher lets you guess locations of pictures posted by your friends, in your area (25 miles perimeter) or all over the world if you like harder challenges!”

They have a website up and running, mostly filled with posts by Pierrick and Albert (co-founders). An iPhone application seems to be on the horizon as well. While everyone has been talking about Instagram and photo-sharing, it appears that Guesswher has figured out a way to gamify that experience.

The more interaction they are able to create, the more I expect users to adopt and continue to utilize the application. Everyone loves to play guessing games with their friends and now you can do it around your neighborhood. Since the company is in its early stages much is unknown. How will they monetize a user base? How will they prevent user content from being offensive? Long story short the execution of the idea is yet to be carried out but Guesswher looks to be on the right track. Get ready for the iPhone application and to start snapping and guessing!

The Emerging “Family Market” and Industry

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Today on TechCrunch there is an article written by Christine Tsai regarding the idea of a “family market.” The family market/industry is a trillion dollar space that involves parents, grandparents, kids, etc. While the opportunity is present, many entrepreneurs have neglected it in the past. I predict over the next 3 years this will change drastically.

Take Kevin O’Leary for example. The VC on Shark Tank sold an education software company for $3.7 billion. I am sure he had a great product but he has admitted to being successful for a very distinct reason. Parents cared about the education of their child and they thought that if they did not buy his software than their child would not learn to read. Pretty hard to walk away from that deal as a parent.

Now I am not saying that every product in this industry falls into this category or should be marketed this way. What should be considered though is that families care deeply about each other and want the best product or service. Want to know where to begin? Look at your family and find something that you would be willing to pay for, either for your parent or child. Is there a solution that already exists? If so, can you improve it? Make it more affordable? Make it more efficient?

As I have written before, I am in the social good business. There is no need to prey on consumers, especially when you become blessed enough to be in a position to help others. Entering the family market allows an entrepreneur to better the lives of loved ones. Making a living is important but making a difference in the quality of someone’s life is much more important. Let’s face it, if you can make a difference in people’s lives then you will find a way to monetize it. Together we can leave this world a better place than the way we inherited it.  Remember “The earth is a loan from our children!”

Viddy vs. Socialcam

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Today TechCrunch announced that Viddy had become the top free iPhone App in the app store. Coincidentally, last week I went on a quest to find the Instagram of video. Searching through video apps, Viddy was the most popular so I tried it but was quickly disappointed.

It appears that Viddy is trying too hard to be the next Instagram. The videos are extremely short in duration and most of the content appears to be from teenagers skating or doing other extreme sports. I saw a few celebrities on Viddy which definitely would help drive quick adoption by the masses but even their videos appeared to be forced and unauthentic (you have to watch the Bill Cosby video). Maybe I had high expectations and jumped to a conclusion too quickly, but overall Viddy left me unsatisfied and wondering if there was another app to find.

This is where Socialcam came in. The company has a mission to make video creation and sharing easier. I have been watching this company for awhile since they have been getting a good deal of hype due to the reputation of their founders (involved in Justin.tv). After my Viddy experience, I found happiness with Socialcam. Recording the video was easy. Sharing the video was easy. Even the filters were easy and they were much more interesting/useful than the ones provided by Viddy.

Now I am not a huge video creator by any means. My video library consists of a few videos that were recorded when I thought a friend was going to do something embarrassing or I wanted to show someone else “some cool shit.” Not exactly the next James Cameron. For my little experience in video creation/sharing to have led me to such a strong opinion, I am interested to see what video “experts” think about the comparison. One thing is certain, while marketing always helps, the best product will usually win out……usually. Keep an eye on this competitive space as I expect it to only become more crowded with the sale of Instagram. Until we have a clear winner, send any funny or embarrassing videos to me here!

Thank Those Who Have Helped You Today

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Every once in awhile I read an article, talk to a friend, or have a memory that makes me stop and think about life. We are all blessed to be breathing on this earth. If you are healthy, you are even luckier. Some people live a life of pain and suffering. When those thoughts come to mind, I know that no matter what life throws at me I will be fine.

Once I am reminded that I have a great life and great friends, I immediately ask myself “If I died today, would they know how much I appreciate them?” The answer is usually no. Our lives become busier and busier everyday. Technology allows us to accomplish so much more while also connecting us to large networks of people that can serve as a distraction from the most meaningful relationships we all have. Usually I try to reach out to an old friend once or twice a week and just see how they are doing. This week I am doing something different.

I have been fortunate enough to have a lot of help along the path I have walked in my life. In my personal life, my business life, and my social life. Great people have helped me, mentored me, defended me, praised me, and even berated me when I needed it. These people are the real essence of who I am as a person. Without them or the experiences they provided me, who knows who I would be today or what I would be doing. I owe every single one of them a “Thank you!”

While it might not be possible to reach out to every single person I am thankful for in my entire life, what if I tried? Maybe I fail horribly and only reach 5% of them. That 5% would know what they have meant to me and understand that they are appreciated. Thats good enough for me. Take a chance today to thank 2 or 3 people in your life that has helped you or been there for you when you needed them. They will be pleasantly surprised. Our world only works because people are willing to help other people. Giving gratitude to them will help encourage them to help others, while you pass along the favor to others as well. How many people can you reach today?

3 Business Ideas for 40+ Year Olds

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Today I was talking to a potential customer about The Community Corkboard. She was sitting with a colleague and they were both in their 40′s. After explaining our service, Woman #1 turned to Woman #2 and said “I guess you have to be in your 20′s to have a good idea and get rich!” Hearing this comment really got me thinking.

My initial reaction was that it was good to hear validation from a customer. It made me proud to hear that she thought we had a good idea. I agreed with her subconsciously that a lot of young men and women are striking out on their own and trying to become successful. I am a huge proponent of youth entrepreneurship and think that starting some form of a business should be required in high school. While these are my general feelings, this woman’s comment really struck another strong feeling in me.

Since when is there an age limit on creativity, passion, innovation, and success?!? After leaving I began to think that neither woman had a reason preventing them from trying to be successful as an entrepreneur. Many people argue that older people are more likely to have families/responsibility and less likely to take on additional risk. While this may be true,  plenty of business models exist where the risk is extremely low. Instead of seeing age as a barrier, I want to encourage 40+ year olds to use their age, wisdom, and experience as an advantage. Here are 3 ideas for working moms or “older” generations:

1. Create an online retail business

Many people think you need to have a fancy website and tons of marketing money to make this possible. I argue that you can start this business with $0. Most grown-ups have accumulated tons of stuff and they can start by posting these unwanted things on Craigslist. Once they become good at writing ads, etc then they can begin buying certain items for cheap and then reselling them for a higher price. This is a classic business model of buy low and sell high.

2. Market yourself as an expert

Experience is a huge advantage that can not be replicated. Taking the foundation of knowledge on a certain subject and combining it with new research/learning can make you a great resource to others. Using Craigslist, Linkedin, Skillshare or other sites you can position yourself as an industry expert or consultant. By doing this you are helping others and you will find that people are willing to pay for these services. Don’t let your greatest asset get away without making money from it!

3. Take up a hobby

Many people develop hobbies over the years that lead to them creating something. They can be painters, writers, knitters, artists, musicians, etc. These skills and passions should be monetized if the individual is looking for additional income. If you write, then self-publish. If you knit then you should sell some pieces to those that are interested. If you play music, record a few tracks and make a “limited edition” CD/playlist. You get the point. Doing something you love will make you successful and customers have a great sense for whose passion is genuine and whose is not.

Not only do you now know that the age limit on success is a myth, but you have three viable avenues to pursue. Just like any entrepreneur you should spend time talking with someone you trust about your idea. See what feedback they have. Ask potential customers if they would have any preferences, as this can affect the way you organize your business model. No matter what remember to have fun! Life is short, too short to be getting upset while the 20 year olds pass you by. Get in the race and get up to speed, we will see you out there!

Young Entrepreneurs Are Everywhere

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I have had the pleasure of meeting many founders and leadership teams of startups recently. I am overwhelmed by one common denominator: Most are on startup #1-3 and are under the age of 30. While I think that experienced/veteran/aged entrepreneurs can bring a lot of benefits to the table, I have been extremely happy to see such a young demographic emerging.

This got me thinking about the “Why?” behind so many young entrepreneurs in the technology space. At first I thought maybe it was a psychological thing that involved my generation being spoiled and just not being a fan of working for someone else. Then I thought that maybe my generation was just smarter then the average generation (If only I could have convinced myself of this one!). After a few more off-the-cuff theories I finally settled on one that made sense to me.

My generation of young entrepreneurs has grown up with technology. I don’t remember living without the internet. My friends all had cell phones in middle school and I was weird because my parents held out till I was a freshman in high school. Hybrid cars, Laptops, Email, CDs, Texting, XM Radio, and of course Facebook. As I got older, these technologies were accepted into our lifestyles and we were quick to adapt the coolest, newest thing. This idea of technology adaptation helped me understand why their are so many young entrepreneurs.

We never had to consiously learn how to use the technology or learn how to leverage it. It is very easy for young people to take technology that they have an outstanding grasp of and come up with ways to make it even more useful or entertaining. While the technology side makes sense since young people have such a great foundational knowledge, the business side is even more interesting.

Most of these young people do not have MBA’s and some did not even attend college. Do these things help? Well I assume that they can’t hurt! The business savvy has come the “old fashioned way.” Many of the young entrepreneurs that I interact with utilize the life experiences of growing up in a very diverse society that had technology to expose them to so many different ideas and cultures. Their business degrees are from acquired life skills through life experiences, just like men and women from the first 50-60 years of the 1900s. It also doesn’t hurt that the internet can now provide any piece of information at an individual’s fingertips.

So kids grow up in a world filled with technology that they take for granted. Fewer and fewer of them are going on to get traditional business degrees. What does that mean for the world of entrepreneurship? It provides a potentially very dynamic opportunity for entrepreneurs. Young entrepreneurs understand technology better than older entrepreneurs (obviously this statement is a large generalization) but older entrepreneurs have years of experience and lessons learned. The most successful teams moving forward will learn to attract the opposite age demographic to help build an effective team. Whether through consulting, mentors, partners, co-founders, or talks at coffee shops, those that are able to utilize the opposite demographic will not only survive but they will prosper.

What other reasons do you think contribute to such a large amount of young entrepreneurs? Have suggestions for ways that entrepreneurs can learn from each other and utilize the other demographics skill set? I would love to read your thoughts so share them below!

Why Instagram Sale Is Bad For Young Entrepreneurs

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The big news over the last few weeks has been the sale of Instagram to Facebook. It is something that is out of a movie. A company with no revenue gets bought for $1 billion. Who would have ever thought it was possible?

Turns out that a lot of people have been opinionated about the sale. Most people who view it negatively think it is a “flare” signaling a bubble forming in the tech/mobile industry. They may or may not be right. Personally, I could not be happier for Kevin Systrom and Mike Krieger. They created something that millions of people validated. Oh yeah and did I mention that the company is less than 2 years old? Simply amazing.

Here is the only issue that I see with this sale. Instagram just gave life to every kid in a garage trying to create a billion dollar company. Usually this is a good thing, but the media coverage of Instagram makes it seem as if they barely did any work. The narrative being portrayed in the media is that 2 smart guys created a mobile application in a few weeks that turned into a billion dollar company overnight. Dangerous narrative to be telling Generation X and Y.

The technology scene has been seeing an unrivaled amount of attention and glorification over the last 18 months. This will help to bring many entrepreneurs, developers, and innovators into the industry. This attention has created great discussion about how to improve innovation and creativity in our country. This is all positive repercussions from the unprecedented attention.

With that being said, take the warning for what it is. No matter what company gets sold for XX amount. No matter how much glory or attention the industry gets. Being an entrepreneur is a dog fight. You are given nothing. You must do whatever it takes to hold on, to survive, to be the last one standing. 9 out of 10 businesses still fail. Instagram is a great story and I wish the best for everyone involved, but don’t get caught dreaming at home of the overnight success story. Spend your time wisely trying to create a billion dollar company that can impact millions of people (even try to have a little revenue along the way!).