Home Leadership Turn Archives Me RampUp Solutions  
 

  • Categories

  • Archives
 
Archive for the 'Entrepreneurs' Category

Fighting Tech

Wednesday, February 19th, 2020

Maybe it takes tech to beat tech.

Or founders who plan to walk their talk even after them become successful, unlike the “don’t be evil” guys.

More entrepreneurs are pursuing social or environmental goals, said Greg Brown, a professor of finance at the Kenan Institute of Private Enterprise at the University of North Carolina.

Companies like Toms, Warby Parker and Uncommon Goods have pushed this concept into the mainstream by creating successful business models built around helping others. This trend has led to the rise of B Corporations, a certification for companies that meet high standards of social responsibility. The program started in 2007, and now more than 2,500 companies have been certified in more than 50 countries.

Including Afghanistan.

Not all these startups make it and many are choosing to do it sans investors who often start pushing for growth and revenue, social mission be dammed.

And they are slowly succeeding.

Companies like Moka are a reflection of how consumers think as well, Professor Brown said. As people’s wealth increases, they think more about quality and less about quantity. They also consider the social context of what they’re buying.

Others are developing tech to defend against tech.

The “bracelet of silence” is not the first device invented by researchers to stuff up digital assistants’ ears. In 2018, two designers created Project Alias, an appendage that can be placed over a smart speaker to deafen it. But Ms. Zheng argues that a jammer should be portable to protect people as they move through different environments, given that you don’t always know where a microphone is lurking.

These may not be the solution, assuming there is one, but this definitely isn’t.

Rather than building individual defenses, Mr. Hartzog believes, we need policymakers to pass laws that more effectively guard our privacy and give us control over our data.

You have on to consider tech’s actions in Europe to know that laws don’t stop tech.

There’s another potential positive brewing in tech — actually a disruption of sorts.

That’s the long-time coming move away from current ageist thinking.

As brilliant as young coders are, though, the industry can’t survive on technical chops alone. Last year, Harvard Business Review shared that the average age of a successful startup founder isn’t 25 or 30—it’s 45 years old.

Call it a miracle, but investors, the majority over 40, are starting to value the experience that comes with age.

Hopefully, in the long-run, the potential for success will outweigh the hang-up on age.

As a whole, entrepreneurial communities also need to do more to bring diverse groups to meet-ups, panels and speaking engagements. The importance of having more voices at the table can’t be diminished.

Let’s just hope it isn’t too long.

Image credit: Ron Mader

Golden Oldies: If the Shoe Fits: Why People Join Startups

Monday, January 6th, 2020

https://www.flickr.com/photos/hikingartist/5726760809/

Poking through 14+ years of posts I find information that’s as useful now as when it was written.

Golden Oldies is a collection of the most relevant and timeless posts during that time.

First, Steve Wozniak’s comments from 2016 are even less true today than they were then. Secondly, money has become the all-consuming focus for most people regardless of profession, driven for some by necessity, but in tech more often by ego, stuff and an aspirational lifestyle. That said, startups as a source of wealth may be falling out of style, as you’ll see tomorrow.

Read other Golden Oldies here.

A Friday series exploring Startups and the people who make them go. Read all If the Shoe Fits posts here

I only partly agree with Steve Wozniak’s recent comment.

“I think the money that’s been made has attracted a different kind of people looking at technology today and saying ‘Oh my gosh, I could maybe have a startup and make a bunch of money,’” Wozniak said. “And the ones that come out of business school, money’s the priority. For the ones that come out of engineering school, being able to accomplish and design things that didn’t exist before is their priority.”

 Woz gives too much credit to the engineers.

It’s not just the biz school crowd that’s focused on the bucks.

The money bug has bit a good number of techies, too.

Years ago, no matter their role, people joined startups because they craved the bleeding edge, whether software, hardware or services.

This was true of both tech and non tech. In the words of Star Treck, they wanted “to go where no man has gone before” — or at the least go there differently.

Today the journey is more about getting rich and/or making connections for the future.

For decades I’ve told clients, “The person who joins your company for money/stock/perks will leave in a heartbeat for more money/stock/perks.”

That hasn’t changed, if anything it’s just gotten more so.

Image credit: HikingArtist

Ego vs. Profit

Tuesday, November 19th, 2019

https://www.flickr.com/photos/purpleslog/3134323442/in/photolist-5LYeam-d9DmTm-cAhxNh-dVhL7y-dVhKs1-TGBPPh-2TSgCv-9WCV3h-AnF1U4-9WA3Hp-7K5aVg-9wrvaw-9wrxUj-4H3sdR-8yo3F5-DEC3i-2h7m3VZ-XXt7T1-2gG7DBu-b5aMga-jATNhy-2hbtdiC-bVRXUM-8vJGry-cdhbFo-2ghfvhL-W61rLT-2gQvEo9-ixG8wg-KQ5F-KQ5C-KQ5B-KQ5G-KQ5D-KQ6Q-KQ6U-KQ6M-KQ6V-KQ6R-KQ6S-KQ6N-9VAAZU-WATzHX-2h7iwcz-2gQvErf-jnjP9-2ghfrP3-2gHswCh-2h5PFap-295cXUb

Yesterday’s post focused on the importance of financial controls.

Unicorns focus on funding.

The “horses” talked about yesterday are focused on profit and building sustainable business.

But when it comes to valuation, founders often focus on just one number: the magic B (as in billion).

This was analyzed in great detail in a post from CB Insights last month.
On the 31% of unicorns that are worth exactly $1B, partner at Lightspeed Venture Partners Jeremy Liew wryly noted (via this tweet) that it’s “potentially not a coincidence.”

Investors are still enamored by founders with their fast talk and passionate visions to “change the world.”

However, enamored or not, when funding, investors focus closely on CYA.

Which is easy, since investors have all the leverage, because they dictate the terms.

This is what is happening to get that exact $1B valuation. Even if the fundamentals don’t justify the $1B valuation, the investors can lay on enough structure and terms to get the founders to a $1B headline valuation (while investors have the protections they need). With the $1B valuation, founders get:

  • desired media exposure to attract talent
  • bro-grats tweets
  • conference speaking gigs
  • a place on this list

Of course, it’s the programmers, marketers, sales and support who actually build the products that will pay the price for the inflated valuation.

In these exit situations, common shareholders, aka employees, get fleeced.

Harking back to 2015, money has tightened again and being profitable is at the forefront of founder thinking — mainly because it’s the focus of investors.

Stockpiling cash is at odds with the model of most venture capital-backed start-ups, which typically raise piles of money to spend on growing faster. Many investors are now pushing their companies to turn a profit.

Shades of déjà vu.

Image credit: Purple Slog

Entrepreneurs: Know and Control Your Burn Rate

Monday, November 18th, 2019

https://www.flickr.com/photos/gowestphoto/3921760653/

Poking through 13+ years of posts I find information that’s as useful now as when it was written.

Golden Oldies is a collection of the most relevant and timeless posts during that time.

Burn rate is why companies (and people) should budget. Unfortunately, budgeting is often driven by burn rate when it should be vice versa — as most learn the hard way. Hard, but not impossible, just ask the guy who went from a burn rate of over half a million a month to $15,000. Although this post is from 2016 when money was tight and focused on entrepreneurs, it applies to companies of any size, as well as people, no matter their income.

Read other Golden Oldies here.

Last summer David Bladow, co-founder and CEO of flower delivery startup BloomThat, had the worse kind of ah-ha moment after deciphering the company’s accounting — a self-described “convoluted mess.”

What he found was a monthly burn rate of $550K that meant the company would be out of cash in just 4 months.

That knowledge drove a laser focus to change.

Now instead of shutting its doors in November, its self-diagnosed death date, the startup launched nationally on February 3. The company that was burning through half a million a month is now down to $15,000 a month.

BloomThat did early what every founder should be doing now.

Yesterday Mark Suster wrote about how to figure the right burn rate for your company and last week we talked about doing more with less.

Actually, I think the tightening of funding is a very good thing, although it will create a certain amount of carnage, it will force founders and their teams to grow up.

If that sounds harsh, so be it.

Funding based on unproven future sales is driven by hopes that are heavily shaped by outside circumstances — circumstances beyond any founder’s control.

Sam Altman warns that funding is not a guarantee of success and in the next few years David Bladow, Andrew Wilkinson and dozens like them will prove that horses have the staying power that unicorns lack.

Flickr image credit: Tsutomu Takasu

Tech’s Biggest Lie: Evolution

Tuesday, October 29th, 2019

https://www.flickr.com/photos/httpoldmaisonblogspotcom/2917049234/

As we saw yesterday, staying highly skeptical of all cyber-information, from friends/followers through speeches and videos is a necessity these days.

But the question arises,

Where did we get the idea that tech meant progress and that it’s inevitable.

Neither are true, especially the inevitable part.

The tech world loves to claim that technology is like evolution, therefore inevitable.

Technologists’ desire to make a parallel to evolution is flawed at its very foundation. Evolution is driven by random mutation — mistakes, not plans. (…)  Evolution doesn’t patent things or do focus groups. Evolution doesn’t spend millions of dollars lobbying Congress to ensure that its plans go unfettered.

What a crock, but people have bought into the mindset.

You can see it playing out in all the smart (hackable) products.

People claim they want the convenience, but that so-called convenience is killing creativity.

Humans make choices.

Tech bosses are human.

And it’s us humans who will pay the price for the supposed inevitability of tech evolution.

Image credit: Charles LeBlanc

Golden Oldies: Entrepreneur: Change the World

Monday, October 21st, 2019

Poking through 13+ years of posts I find information that’s as useful now as when it was written.

Golden Oldies is a collection of the most relevant and timeless posts during that time.

It’s interesting that so many of the entrepreneurs whose ideas could actually change the world are either still in school (not college) or at the other end of the spectrum. It also seems that most of the 20s/30s/40s crowd are primarily interested in changing their financial status and burnishing their brand. Oops! Seems like I’m getting cynical in my golden years.

Read other Golden Oldies here.

I frequently see comments on blogs and social sites along the lines of “I know I could be an entrepreneur if I just had a good idea” or “I want to be an entrepreneur and change the world.”

Sadly, it seems that most are looking for ideas to make them the next Groupon or Foursquare and while that might make them rich, it will hardly change the world.

There’s nothing inherently wrong with that, but it won’t change much or get you into the history books.

You change the world by tackling real-world problems, often with hard science.

But you don’t need to be a scientist; self-taught Gary Cola invented the world’s lightest, strongest steel that takes less than ten seconds to make.

In fact, you don’t have to be an adult. Take a look at the winners of the first Google Science Fair and you will be blown away; none are 18 yet and none of their ideas involved the Internet.

Here’s an idea; if you want to change the world look for problems with global impact. Blake Mycoskie is changing the world with shoes and glasses, while Anthony Capone, CEO of Nimbus Water Systems, is changing it with inexpensive, solar-powered, portable water purification systems.

Then there are toilets.

Yes, toilets.

That handy gadget that we take for granted (unless it isn’t working) and that many parts of the world only dream about.

“No innovation in the past 200 years has done more to save lives and improve health than the sanitation revolution triggered by invention of the toilet.” –Sylvia Mathews Burwell, president of the Bill & Melinda Gates Foundation’s global development program

And the Gates Foundation is putting its money where its mouth is.

Look around; think about changing the world by reinventing or innovating something that addresses a basic need.

You may not end up as rich as Mark Cuban, but I guarantee that it’s the sexiest, most exciting, rewarding, feel-good thing you’ll ever do.

Image credit: Kate Ter Haar

47 Billion to Almost Zero in Just Six Weeks

Wednesday, October 16th, 2019

https://www.flickr.com/photos/southbeachcars/30059814877/

Top bosses can create/ruin more than a company’s culture, they can literally destroy the company.

How much damage can one person inflict?

Ask Adam Neumann, founder and ex-CEO of WeWork.

Just six weeks ago, the coworking giant WeWork was the US’s most valuable tech startup.

How valuable? Try $47 billion, based on it’s last funding round.

Then it tried to go public.

Almost immediately, all hell broke loose. A steady stream of rapid-fire headlines detailed Neumann’s self-dealing, mismanagement, and bizarre behavior. Within 33 days the offering was scuttled, WeWork’s valuation plummeted 70% or more, and Neumann, who believed he would become the world’s first trillionaire, was ousted as CEO. What was supposed to be Neumann’s coronation as a visionary became one of the most catastrophically bungled attempted debuts in business history.

Hard to believe, but it seems a lesson has been learned and the so-called magic of Silicon Valley is waning. Visions and charisma are no longer enough.

Investors, reporters, and analysts, chastened after seeing Theranos revealed as a massive fraud and watching Uber fail to live up to the hype, didn’t let another visionary founder pull the wool over their eyes.

Without new funding, and with the IPO shelved, WeWork could run out of money by Thanksgiving and be forced to file bankruptcy.

Founders and CEOs aren’t gods.

They are mere mortals; human beings just as capable of screwing up as anyone else.

There’s an old Italian proverb that says it all — after the game, the King and the pawn go into the same box.

Image credit: Phillip Pessar

Big Tech Bosses Should Channel Gates

Wednesday, September 25th, 2019

https://www.flickr.com/photos/liquidat/155525087/

Looking at founders, such as Larry Page, Jeff Bezos and Mark Zukerberg, you get the feeling they believe they are all powerful — more so than even governments.

It’s not a new attitude; Bill Gates learned they aren’t the hard way.

The Microsoft co-founder Bill Gates, according to Mr. Smith, “learned that life actually does require compromise and governments actually are stronger than companies,” if only after a bruising confrontation.

Mr. Gates, who wrote the foreword in Mr. Smith’s book, recalled that for years he was proud of how little time he spent talking to people in government. “As I learned the hard way in the antitrust suit,” he wrote, “that was not a wise position to take.”

Lesson learned well enough that you don’t see Microsoft on the common list of big tech, Google, Facebook, Amazon, and Apple.

That lesson hasn’t hurt Microsoft, which is valued at more than a trillion dollars by investors based on profitability, not funding.

Satya Nadella, who became CEO in 2014, is credited most often for the change in Microsoft fortunes, i.e., its culture. attitude and product mix.

You don’t hear as much about Microsoft president Brad Smith, but he’s the guy who made friends with government and helps with policy.

“When your technology changes the world,” he writes, “you bear a responsibility to help address the world that you have helped create.”

Responsibility.

The thing that so many founders don’t see as being within their purview.

Unlike Microsoft, their future will be decided more in Europe than in the US.

But the revised interpretation of an old US law could change things drastically.

And that change is being driven in by a surprising source.

Join me next Tuesday to learn more about it.

Image credit: luquidat

Golden Oldies: If The Shoe Fits: Hypocrisy And Greed In Startup Land

Monday, September 16th, 2019

https://www.flickr.com/photos/hikingartist/5726760809/

Poking through 11+ years of posts I find information that’s as useful now as when it was written.

Golden Oldies is a collection of the most relevant and timeless posts during that time.

How time and tech fly. I wrote this in 2017 and there’s been a lot of change since then. In short, while hypocrisy has skyrocketed, with the advent of Uber, Lyft, We, and others profitability has fallen way behind. Greed, however, is alive and kicking butt — think We’s Adam Neumann.

Read other Golden Oldies here.

A Friday series exploring Startups and the people who make them go. Read all If the Shoe Fits posts here.

Tuesday I cited a post by Scott Belsky on Medium talking about how employees are often conned (my word) by founders, especially unicorns, when it comes to the wealth that is supposed to flow from their ISO.

As pithy as the post was, some of the comments were even pithier. I especially like this one from  colorfulfool (21st comment)

If profitability were proportional to hypocrisy, there would be no failed startups in the Valley.

Not just true, but succinctly and elegantly stated.

Founders love to talk about the importance of transparency, trust and authenticity.

However, their stock plans and pitfalls thereof exhibit such a high degree of opaqueness and caveat emptor that they kick a hole the size of Texas in the fabric of the founders’ authenticity.

Another prevalent piece of hypocrisy is “change the world.”

Do you really believe that another dating app or being able to evaluate a new restaurant or another way to buy your groceries will change the world?

While they may impact one’s personal world, they certainly don’t have the impact of something like Mine Kafon.

What is proportional to the Valley’s hypocrisy is its sheer greed.

Actually, when I stop to think about it, the greed probably exceeds even the hypocrisy.

Image credit: HikingArtist

A World of Real Change

Wednesday, August 21st, 2019

https://www.flickr.com/photos/hikingartist/24215558081/

Whether you’re talking invention or innovation, it’s important to remember that it’s often the simplicity of a solution, as opposed to complexity, that makes it truly elegant. Along with simplicity, practicality is important, as seen in the MYCOmmunity Toilet, and focusing on plain old common sense can create a viable business by addressing American bias against ugly produce.

Here are a few that actually have world-changing potential.

Following up on yesterday’s idea to re-freeze the Artic is best described as ‘back to the future’.

A California-based company called SkyCool Systems is in the early stages of manufacturing a cooling system that’s more energy efficient than anything humans have used for a century. It’s doing it using radiative cooling, a concept that was used in the Middle East and India hundreds of years ago.

Inventions like this are potential game-changers as the world stares down a growing climate crisis, spurred by emissions pumped into the atmosphere by human activity. Globally, about 12% of non-carbon dioxide emissions can be attributed to refrigeration and air conditioners, according to the US Environmental Protection Agency.

There is a lot of the talk about “food disruption,” mostly focused on new ways to grow food, plant-based protein, etc. But ending food waste would go a long way to feeding the world’s population.

Europe is way ahead of us when it come to reducing food waste.

Nearly 2 million tonnes of food is wasted by the food industry every year in the U.K. alone. Of that waste, 250,000 tonnes is still edible, equating to roughly 650 million meals. When you consider the 8.4 million people in the U.K. struggling to afford to eat, there’s obviously a problem.

And that’s where the Danish-born Too Good To Go app comes in. The app, which is available in 11 countries in Europe, is simple: it connects users to stores, such as supermarkets, restaurants and bakeries, that have unsold, surplus food.

Getting a job when you’ve been in jail is beyond difficult, especially when 40% of the FBI data base is incorrect. Now there’s an app for that. Teresa Hodge and Laurin Leonard came up with a way for companies, landlords, etc., to get more accurate and nuanced background checks.

R3’s software assesses criminal records, as well as credit histories, employment experience and information self-reported by individuals, and produces a numeric indicator for each individual predicting future trends. Scores run from 300 to 850, to mimic the standard framework for conventional credit histories. The higher the number, the less risky the person.

Finally, on the lighter side, innovation women will really appreciate — convenient and safe.

Gina Périer and Alexander Egebjerg have designed an industrial-standard female toilet for festivals and outdoor events that allows people to pee sitting down quickly and safely.

Named Lapee, the pink plastic structure has three urinals arranged in a spiral, with curving back rests that provide privacy while allowing the user to remain aware of their surroundings.

All of these, even Lapee, have the potential to create major change in our world.

Image credit: Fritz Ahlefeldt (Hiking Artist)

RSS2 Subscribe to
MAPping Company Success

Enter your Email
Powered by FeedBlitz
About Miki View Miki Saxon's profile on LinkedIn

Clarify your exec summary, website, etc.

Have a quick question or just want to chat? Feel free to write or call me at 360.335.8054

The 12 Ingredients of a Fillable Req

CheatSheet for InterviewERS

CheatSheet for InterviewEEs

Give your mind a rest. Here are 4 quick ways to get rid of kinks, break a logjam or juice your creativity!

Creative mousing

Bubblewrap!

Animal innovation

Brain teaser

The latest disaster is here at home; donate to the East Coast recovery efforts now!

Text REDCROSS to 90999 to make a $10 donation or call 00.733.2767. $10 really really does make a difference and you'll never miss it.

And always donate what you can whenever you can

The following accept cash and in-kind donations: Doctors Without Borders, UNICEF, Red Cross, World Food Program, Save the Children

*/ ?>

About Miki

About KG

Clarify your exec summary, website, marketing collateral, etc.

Have a question or just want to chat @ no cost? Feel free to write 

Download useful assistance now.

Entrepreneurs face difficulties that are hard for most people to imagine, let alone understand. You can find anonymous help and connections that do understand at 7 cups of tea.

Crises never end.
$10 really does make a difference and you’ll never miss it,
while $10 a month has exponential power.
Always donate what you can whenever you can.

The following accept cash and in-kind donations:

Web site development: NTR Lab
Creative Commons License
This work is licensed under a Creative Commons Attribution-NoDerivs 2.5 License.