Build Something That Matters: 8 Things that Drive Our Business

When you listen to venture capitalists, investors and budding investment hopefuls they use the term Lifestyle Business as though it was a 17^th century plague to be avoided at all costs.

Well – maybe it is, (from the investor’s point of view) but that discussion feels like bell-bottom pants and a tie-dye shirt at a Republican Convention: Out of place and dated.

People run businesses for all kinds of reasons these days. In my experience most are motivated to do something that matters and to do it in a way that creates value for employees, customers and investors. It is not a lifestyle business just because you don’t put investors first! Some of the greatest success stories of the last decade prove this point.

With the start of our business, Innotrieve, the first thing we did was develop a simple statement about why we were starting a business. Here is what we said we wanted to accomplish:

1. Put our technology to work in an area that is interesting and solves an important problem
2. Respect and support the freedom for individual employees to work the way they work best
3. Build products that allow us to work in areas we are interested in
4. Do interesting work that can have an impact on the way people work
5. Leverage artificial intelligence to make work more more interesting, and more empowering
6. Extend our ideas and intellectual property through valuable products
7. Build something a lot of people can gain value from
8. Be an important member of “The next Industrial Revolution:” The digital/data revolution

I don’t know if these principles make us a lifestyle business in the eyes of some investors, but I do know that my partner and I are motivated by a range of interests, and that won’t change. To build a better business, you build something that matters to you.

I'm Melting: The Woes and Worries of an HR Entrepreneur

My new product goes into Beta Test next week (or for those of you initiated into the ways of Lean Start Up: The Minimum Viable Product). After all the work we've done thinking and re- thinking, testing, designing and finally building the MVP you would think I am excited.

I am scared out of my socks.

I stopped sleeping about a month ago. Now I wake up and think about the product. Usually at 2:06 A.M. I question every level of my sanity: What in the world was I thinking. By morning I am less pessimistic, but still rather saturnine. It takes a few hours to pull the manic back out from the deep recesses of my depressive.

There are days I feel like the Wicked Witch in a room full of Dorothys:

I'm melting......

My wife did not sign up for this. She thought she was doing me a favor when she agreed to let me spend all of our “rainy-day-fund” to start a new business from scratch. Now she is searching for a therapist (I am not sure if that is for me or her).  I am quitting when she starts to Google divorce lawyers!

But man I’m having a lot of fun.

It is hard work, and very risky to embark on building a new tool for HR. But HR is an exciting space with so many things going on. Being in the middle of that is what keeps me going. This product may not work – at least not at first. But if the money doesn't run out and I delete all search criteria for divorce lawyers: I’m there.

Now back to worrying so much that my headaches, my back hurts, my stomach feels sketchy, and my neck has a serious kink: The true badges of the entrepreneur!

I'm Dreaming of a Lean Start Up Christmas

OK, I have been buried up to (and over) my head for the last couple of months getting our new product ready for development. I finally looked up from my desk and realized it was almost Christmas and I am way behind. Since we have been following the basic principles of the Lean Start Up I have visions of MVP’s dancing through my head, so what choice do I have but to try and see if I can accelerate my “Presents To Market” strategy this Christmas. So here is how I am applying the Lean Start Up to Christmas this year:

Test My Fundamental Hypothesis: Giving is better than receiving.

To test this hypothesis I quickly headed down to the local stores and bought 4 presents: 2 for me and 2 for my friend. So far I really like my two presents.Hum, make a note, hypothesis may be faulty.

Develop My MVP (in this case, it means Minimum Viable Present):

I have designed a strategy that allows me to buy some lumber, some bolts, nails, paint and a few decorative glue-on pieces. I am going to give one each to my two sons and observe what they do with them. Once I see what it is they really want, I’ll give them a gift card.

Assess My Leap Of Faith Assumption: That my wife will let me play with the iPad I am giving her (otherwise – why give it to her!)

I am worried about this key assumption. If I give it to her and she doesn't let me play with it, my whole plan for the week is ruined. I wonder if I should just keep it for myself.

Pivot or Persevere: If my Xmas plans seem to be failing, can I quickly adjust?

I have looked at the possibilities of a mid-course correction. They are limited. I suppose if the presents fail, I could offer to cook (and clean) all the holiday meals.

Now with a solid plan in place, I can confidently go forward with my holidays!

Best wishes to all for a great holiday season!

Too Old to Be An Entrepreneur?

A well known venture capitalist and admitted “old guy” named Vinod Khosla, (he’s 57 years old) was reported to have said at a conference last year that "people over 45 basically die in terms of new ideas." (Please don’t tell my wife, I pretty much bet our house on my ability to start a really clever new business). This Vinod guy is really smart and he explained that he did not mean that old folks can’t do clever stuff; they just need to be more fearless. I guess he’s never seen me in my Super Suit.

I read that quote in an article by Sarah McBride , of Reuters entitled: Silicon Valley's dirty little secret: age bias

I got a kick out of some examples Ms McBride used to show how apparently we have to learn to dress more like 20-somethings:

In one case she mentioned a 60 year old guy (I am getting dangerously close to that milestone) who shaved off his gray hair and traded in his loafers for a pair of Converse sneakers before heading into an interview. He got hired. Later in the article, this same guy goes on to say: In person, older job applicants should carry a backpack, not a briefcase and they should avoid Blackberries and Dell laptops in favor of Android phones and Apple products. And above all, steer clear of wristwatches. "The worst would be a gold Rolex," he says. "Tacky, and old."  (If only I could afford a Rolex – I might be happy to be tacky)

In another example from the article, a 40-something market researcher (is 40 old?) headed to a boutique popular with young women for advice on "something to look hip" and "blend in" before she went to her interview. She ditched her tailored pants and blouses for a dress, tights, and biker boots. She eventually got the position. 

So I am wondering, if I shave my nearly bald but graying head, buy a dress and some tights and put on some Converse sneakers, will I be more attractive to venture capitalists? Or do you think that would be taking it too far? I really could use the money!

Persist Through the C.R.A.P. Getting New Ideas Done

If you are out to start a new business or try a new product idea within a large company, it often feels like everything and everyone is out to stop you. You aren't paranoid: they are.

Persistence is probably the most important element of success (as long as you can afford it).

Richard St John gave a TED Talk which he entitled: Secretes of Success in 8 Words.  In this presentation he discusses what he thinks are 8 concepts that drive success. You can watch it, it’s good, and it is only 3 minutes long so it won’t take up much company time. Of all the 8 words, the one word that resonated the most was Persistence. He states that you'll need persistence because you will face a lot of C.R.A.P.

C – Criticism

R – Rejection

A – Assholes

P – Pressure

In the last company I worked with we had a lot of people who specialized in what I called Drive By Shootings: you know these events. It is when some manager or "fiefdom owner" decides to offer their opinion without taking time to really understand your idea. They simply drive by, offer up negative bile, and move on. You are left to deal with it. I also call them the fast and the furious.

But, if you really believe in your idea, you persist.

Most ideas are doomed to begin with because they challenge old assumptions. That always brings out the critics; especially those who are vested in the old assumptions. If you are going out on the limb of innovation, you have to understand that the limb (can be) strong, but it also has to be flexible enough to sway a bit under pressure. I worked with one product development manager at a very large firm a few years back who told me his secret to success was constant gentle pressure relentlessly applied. That frustrated me because things took too long.

I thought starting my own business would mean I could move at “light speed:” No one to stop me or hold me back. That turns out to be only partially true. What I have found is that persistence is even more critical in a new start up. There are many obstacles to success. You fight problems of capital access, client development, staffing-on-faith (people who will work for next to nothing in hopes of a big someday something) and multiple people who offer their opinions about why your idea stinks.

So I guess what I gained most from watching Richard St John's short video was that if you really want to succeed, and you really believe in your idea, then persevere through all the C.R.A.P.

An HR Entrepreneur’s Cook Book: Who’s Eating?

Being an entrepreneur is like having a book full of recipes - but not being sure what anyone wants to eat.

After years of helping multiple small companies grow and become prosperous, I decided to jump out on my own and start building a company from scratch. The first thing I did was find a really smart partner. (Someone had to be the brains). Then the partner and I started making the list.

We have a passion about data: Big data, small data, data in a box; any data of any type that can help improve the employer/employee marketplace.

It was not hard to come up with a long list of things we could do. But now the question is – and maybe this is the most important question – what is it that we can do that the marketplace really wants to buy?

This challenge is more interesting than it used to be. Traditional new product development answered that question with lots of market research, but we all know market research didn't get us the PC, the iPhone; Google or Twitter. Really interesting products often come from passion alone.

Therein lies the problem: We've got a lot of passion which means there are so many things that we can build.

It feels a lot like a chef at a banquet. The recipe book is full, the pantry is empty (because of course as entrepreneurs, you don’t have much stuff yet) and you have to go shopping now!

The entrepreneur’s bible we were all required to read, The Lean Start Up, might suggest that we make a small meal and send it out there to see if anyone wants to eat it. If they do, make more. The problem with that idea though is that it may take awhile to find the right food – and in the meantime someone else comes in with the perfect Big Mac and we are stuck with day-old ground round.

Entrepreneurs have to act on faith. I think you have to pick a recipe you really believe in and make enough to make sure the market can get a taste. Building a new product has to be fueled by passion and a strong belief that you can introduce the world to something they are really going to like. That doesn't mean you have to commit to a gluttonous feast with the first offering, but you can’t hold back either. If you believe, you go for it.

So now that we know we want to serve up some data, we are ready to go shopping! Man I hope people want what we are planning to cook.

Presidential Debate: Does Either President Understand the New Employee?

The first Presidential Debate is in Denver. They will talk back and forth about a myriad of ideas. One idea they are sure to discuss is jobs. They will talk about tax incentives, jobs training, labor unions, and off-shoring. They will argue about trickle-down and trickle-up, (they won’t use those terms but that is what it boils down to: Does a really healthy “rich sector” make for better jobs, or does a really healthy “labor sector” do the trick). But they will be wrong either way.

Neither candidate understands the new employment economy.

The major trends driving the new employment economy today are:

·         Rapid growth of self employed

·         Explosion of social media as a “skills for sale market”

·         Emergence of job titles that didn't exist even 12 months ago

·         Rejection of the idea of traditional “employee”

·         Rapid growth of social entrepreneurs

·         Workers who follow a “skills path” rather than a career path

·         Virtual companies that don’t care where the employee works from (or which country)

These trends aren't supported by diatribes about sending work overseas, or shoring up America’s manufacturing, or supporting America’s unions, or even forcing trade wars with other countries.

If you want to help the people hit hardest by unemployment, don’t try and prop up the infrastructure that supported employment in the last 4 decades, support the creation of a new infrastructure that will enable employment for the next 4 decades.

I’d love to hear the debate talk about breaking the traditional bounds of employment and creating a new FDR like “Public Works” project that will build the infrastructure for the new employment economy. (BTW – a short commercial here: one of the biggest impediments to people taking risk, or working in non-traditional employment is the lack of access to health care – I would think both the GOP and the Dems would understand that point!).

How many of us think our sons and daughters will have a career path just like we did? Not many I would guess. So why do we want to create an artificial support system that is mired in past economies?

I have an idea, let’s Crowd Source the Presidency (and the congress). May the best ideas win!

Is There a Recipe for Entrepreneurship?

I attended an advisors meeting this morning for a group that helps new start ups with their business models. The group is made up of people who share a common experience in entrepreneurship but have varying backgrounds in management, marketing, engineering, manufacturing, finance, legal, etc. There are usually about 30 of us in the room. You’d think that much brain power could really add a lot of value:  I’m not so sure.

I have attended 5 or 6 of these advisor meetings now. I was asked to be part of this group because I have helped start and sell three companies. Two successes with one flop sandwiched in between. But I wonder if I can actually tell someone else how to do it.

As I listen to the presentations and then listen to my colleagues ask questions and offer up recommendations, I am struck by the sameness of it all: as though there was a recipe for entrepreneurship. I’ve never been to a cooking class, but I can picture the master chef walking everyone through the steps that it takes to get just the right combination of ingredients, mixed in just the right way, and baked at just the perfect temperature. Voila – a perfect dish.

But I wonder.

Entrepreneurial success seems so individualized. Someone with a lot of passion and no brains can raise a lot of money; someone with a lot of money and a lot of brains can go “paws up”, and someone with the perfect business plan can still screw it up. I’ve observed that a lot of successful companies have had any combination of these events lurking in their past, but still overcame (or capitalized) on them.

I don’t think there is a recipe. It seems to me that entrepreneurs need to be a bit like Captain Jack Sparrow and treat all this advice they get as “guidelines”. Captain Jack would have been a great entrepreneur. He reacted to his environment, improvised to take advantage of whatever situation arose, and selectively decided just who to listen to (and when).

So I am still thinking about what the best advice I could offer to the companies in these meetings. Maybe it’s to act like a pirate.