Saturday 24 August 2013

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Tuesday 20 August 2013

The Errors of Enthusiasm

As entrepreneurs, we all think our ideas can change the world. Passion, persistence and a well-written business plan - complete with five-year cash flow projections – are all we need to raise the money we need to launch our business.

Yet, doing a startup is a bit like going big game hunting with a sharp stick. Passion and enthusiasm are essential, yet without objectivity, unbridled enthusiasm can lead to frustration and disappointment if not outright disaster.

In a recent interview, venture capitalist Jonathan Murray of Early Stage Partners described the startup process as a series of iterative experiments rather than a linear projection. Rather than writing a business plan with cash flow projections that have little or no basis in reality, Jonathan suggests approaching a startup as a series of experiments - a careful balance between objectivity and entrepreneurial zeal:

Experiment #1: Can we make a product? The objective of this first series of experiments (seed/pre-seed stage) is to build a prototype that can be shown to potential customers. This stage is typically run by the founders (often in their spare time) with bootstrapped financing such as personal savings, credit cards, friends, fools and family and other “creative” non-traditional sources.

Experiment #2: Can we get a few customers to buy the product? Once a prototype is built, the second set of experiments is to get a few customers to purchase the product and provide initial feedback. Once there are a few paying customers, it may be easier to quit your day job and acquire angel financing. The angels may also provide guidance and management experience that will help prepare for venture capital financing. (It’s also important to remember that VCs fund less than one out of every thousand new ventures.)

Experiment #3: Can we get a lot of customers to buy the product? Assuming your concept has high growth potential, once a customer base has been achieved, (and much of the risk has been eliminated) this third (growth) stage is where institutional venture capital comes into play. Often, this stage is managed by experienced “jockeys” rather than the initial founders.

Anatole France once said, “I prefer the errors of enthusiasm to the wisdom of indifference.” Passion and enthusiasm are essential aspects of entrepreneurship that should not be overlooked, and while Jonathan’s perspective may be oversimplified here, hopefully it provides a basis for a more realistic approach that can help manage expectations and eliminate much of the potential for disappointment and disaster, not to mention getting eaten alive.

Time to Get to Work

Depending upon your politics, the recent passing of the historic healthcare reform bill has you high-fiving friends and co-workers or preparing for Armageddon, as it will most certainly usher in a period pestilence, poverty, and perniciousness.

So whether you’re popping corks on some bubbly or stocking your bomb shelter, one thing is certain – entrepreneurs are busy at work looking for better ways to improve healthcare in our country. The undeniable fact, regardless of the fate of healthcare reform, is that our course to providing basic services is unsustainable.

We have been spending more on a per capita basis than any other nation, yet patient outcomes and related health indices show we do not lead the world in healthy populations – far from it.

Clearly market conditions are ripe for the introduction of bold and disruptive solutions that leap ahead of the treatment of symptoms and focus instead on cause, prevention and efficiencies. From advances in patient information systems and remote diagnostics to bold new thinking in prevention and wellness programs, new and innovative things will come forth.

For our nation’s sake, entrepreneurs will largely stay out of the theatrics and political folly and quietly go about improving the lives of citizens. Wouldn’t it be nice if our elected officials, those put in office by us, could rise above and remember to do the same?

Monday 12 August 2013

Best Website For Entrepreneurs To Understand Social Media Marketing


During the Mid-90s, the method adapted to monetize Search Engine Results Pages was though a flat-rate, Which was no different from how the Yellow pages sold their advertising inventory. With time, the process evolved , and improved methods and techniques were incorporated. However , the core of search engines remain the same , that is placement of online advertisements on webpages relevant to results from keywords. The major websites having higher page rank like Youtube,Tweeter,Facebook, Google+ are used as a social media marketing. The Question arise that how we can promote our material by using these sites. So, without thinking, the first site that came in my mind that covers all basic terminologies of promotions/marketing is Http://www.moreviews.net . This site is the finest solution to understand marketing on cyberspace by using higher page rank sites. 
 

Monday 5 August 2013

Understanding Innovation

Successful entrepreneurship is, in many respects, a “perfect storm” of strategic planning, market opportunity, hard work, perseverance, the right team and countless other factors – some within your control as an entrepreneur, and some that aren’t.  One factor that often plays a large role in the early success of start-up ventures is “innovation.”  The good news is that it’s one of the factors that can be controlled. 

Thinking about (and attempting to define) “innovation” as a broad, abstract concept is a bit much to wrap your head around, but looking at it as an identifiable, finite moment in time – the “a-ha moment,” if you will – makes it a bit easier to grasp.  The Kauffman Foundation’s VP of Advancing Innovation (ed: great title…) Lesa Mitchell has recorded a number of good, short videos delving into this exact topic – they’re available on the Kauffman site and I’ve linked to them below. 

 
We recognize the substantial role that entrepreneurs have played in leading the recovery of past recessions – and the role they’re currently playing and WILL continue to play in recovering from this one.  Because of that, one of the things we’ve attempted to do is to identify a model that illustrates the steps that bridge the gap between purely academic research and entry into the commercial marketplace that many technological, high-growth entrepreneurs and innovators experience on their path to success. 

- What factors contribute to the transition?
- What factors aid/hinder it?
- What are the traits of those start-ups and individuals who can consistently do it?
- Are there any common practices, pitfalls or approaches on which we can help shed some light? 

That’s essentially the goal of all these efforts to better understand the processes behind the art and science of innovation – to shine a light on what’s being done and bring the knowledge that we can gleam from those insights to entrepreneurs, policy makers and business-people everywhere.  
 
What do you think?  CAN innovation as a component of the entrepreneurial life cycle be weighed, measured, quantified and – ultimately – understood deeply enough to be taught?

Entrepreneurship Is “Boom-ing”

“Economists know that entrepreneurship will drive the economy back to health, but many people may be surprised to learn that the baby boom generation is behind the wheel, according to a new study by the Ewing Marion Kauffman Foundation.”
As detailed in this recent Kauffman Foundation press release, the findings of our latest study, "The Coming Entrepreneurship Boom," show that the most active segment of our population – entrepreneurially speaking – is the Baby Boomer segment.  While the common perception of today’s “new entrepreneur” is typically a 20-something wünderkind, dropping out of college, and dropping in on the business world – think of headline-makers like Facebook’s Mark Zuckerberg – the reality is actually probably best described as “that kid’s dad.” 

With many (and I use this term reluctantly, painfully) “older” adults finding themselves directionless, at the crossroads of their career and our uncertain economy, they’re turning to entrepreneurship – and leveraging their lifetime of business experience to achieve success.  As one expert put it, entrepreneurship is booming, “not in spite of an aging population, but because of it.” 

And that’s potentially good news for the nation, the economy and the “E=R: Entrepreneurs = Recovery” Campaign.  According to Kauffman’s Vice President of Research and Policy, Robert E. Litan, "the fact that the largest age group of our population is also the most entrepreneurial bodes well for the United States' economic future."  So while the bright young minds behind iTunes and Napster may be getting all the front page ink (or “home page pixels,” if that metaphor is too outdated for you), it appears that when it comes to entrepreneurship, there’s still a thing or two they can learn from the Woodstock generation.

Talking about BusinessWeek's "The Case for Optimism"

Taking a look at the newsstand lately, it may seem as if the covers of major periodicals are not - pardon the pun - on the same page.  Only a week or two after Newsweek proclaimed "The Recession is Over," Business Week has followed with "The Case for Optimism."  Similar sure, but whereas Newsweek certainly IS being optimistic, I think Business Week has a great point for entrepreneurs: "Sure, it has been a harrowing storm. And now is no time to discount the dangers that still exist. But opening your mind to optimism can help you seize the opportunities ahead."  

While it can be tempting (and perhaps safer) to hang back and wait out the recession before making any big business plans, Business Week's Peter Coy argues that now is the perfect time to forge ahead. "Practical people should open their minds to the opportunities to be seized just as much as to the dangers to be dodged," he writes.  The online version even has a short slideshow detailing the signs of life for business owners. 

In setting the stage for his "Case for Optimism," Coy brings up the following problems:
  • The loss of (just) a quarter-million jobs in July was greeted as good news.
  • Long-term unemployment and foreclosures continue to mount.
  • This is the worst economic downturn since the 1930s.
  • Health-care costs are out of control and an aging population around the globe is driving government spending through the roof.
  • Scientists say we need an expensive crash program to fight global warming or we'll incinerate ourselves.
With stuff like this going on every day, every WHERE, perhaps it's easy to side with the 53% of Americans from a recent Gallup poll that think the U.S. economic outlook is getting WORSE.
Things are always darkest before the dawn, and the two points Coy brings up for cautious optimism support that thinking: 

1.) "Recessions such as this one... set the stage for future growth. As economist Joseph A. Schumpeter wrote in 1942, "creative destruction" shakes loose people from old, dying businesses and forces them to figure out new ways to be useful."  Green-collar jobs, anyone?   

2.) "Ingenuity is addictive. Equipping one or two billion more of the world's people with higher education and better technology... has increased humanity's ability to solve hard problems. The next world-changing breakthrough may come from China, or India, or Eastern Europe." 

And it's in that spirit that I'll be operating for the next few months - as I encourage you to do as well, if possible - as we lead up to Global Entrepreneurship Week.  I blogged this past summer about getting to see first-hand entrepreneurship taking place in Morocco, and this fall is certain to be an exciting time in the entrepreneurship arena as well. In the months and weeks since then, I've seen it from those in the Mediterranean, Middle East, and all around the world.  

The recession's been tough, sure, even grueling at times.  It's lasted longer and hit harder than many thought it would.  But entrepreneurs have been doing their part - and we've been chronicling it here, every week - so I'm optimistic that the second half of the equation - E=R: Entrepreneurs = Recovery - will follow in time.