May 01

FAWnotes.jpgI recently finished an excellent book called Founders At Work. It’s a series of candid interviews with thirty-two dot-com founders and it shares the same goal of our Grid7 podcast to get the story directly from the people that started companies from scratch and distill their wisdom. I started taking notes at the beginning of this book with the intention of doing a single blog post summarizing my thoughts. By the time I finished I had eleven pages of notes- lessons that rang true from our own experience in doing a start-up, synergies from other blogs and podcasts and quotes from founders that just struck a chord. I wound up with way too many thoughts from this book to cram into a single post.

So I’m doing an exercise this month. May has thirty-one days and there were thirty-two chapters in the book. We’re also marching towards June 1st as the ship date for the product we’ve been building the past nine months and it would be neat to coincide the final post with our first revenue. So I’m doing a post each day for the month of May to share my thoughts on each of the founder vignettes to add our perspective from building JumpBox.

There were recurring themes across all interviews-

  • the “Midnight Run”
  • the positive byproduct that came with being forced to work under tight resource constraints and the subsequent downfall that often followed when those constraints were lifted
  • the viral element that many offerings shared
  • the critical necessity of the open dialogue with the customer
  • and the healthy suspension of disbelief that was required of the founding team from the beginning in order to do the impossible.

The one thing that was entirely consistent across all interviews was that the people were extremely likable – their passion, their candor and their dedication in the face of adversity – I just wanted to meet each one of these people and shake their hands.

The first of this 32-part series is available here on Grid7. If you’d like to follow along this month you can subscribe to the RSS feed for that site. The intent is that by conducting this exercise we toss in our perspective and help influence anyone out there who is contemplating taking the same plunge that we faced nine months ago.

Mar 13

I just had the opportunity to chat with Peter Burns and get the amazing story of how he went from renting mopeds one summer on the island of Nantucket to recently landing a $250MM deal for funding start-up companies in Arizona through his Institute for Entrepreneurship. It’s fifteen minutes of a pretty incredible series of accomplishments. Listen first-hand to somebody who breathes this stuff.

Mar 09

It’s been a goal of mine to someday publish a kid’s book and that day came today. I’m officially a published author having used the Lulu.com system to self-publish my first book “Rebuild it with Moonbeams.” I wanted to condense some thoughts here after having gone through the process start to finish and I also want to publicly “tap” a few people I know to write a book of their own.

How

I looked at a couple different sites for self-publishing including Lulu, iUniverse and Cafepress and ultimately I went with Lulu. Their 5min video tutorial adequately shows the process for how to use their system – you basically create a word doc with the pages of your book, upload it to their site and then set a bunch of preferences about how you want your book to be printed. They take 20% after covering manufacturing costs which seems completely reasonable. Start to finish this project took a total of about 30hrs working nights the past 2wks with most of the time going towards doing the coloring on the illustrations. I sketched the illustrations at Starbucks then scanned them in and colored via Photoshop and used a creative fill technique with iStock photography. The publishing process via Lulu took the least amount of time of anything and was only about a 20min process. The book is a 40pg full-color paperback consisting of a series of whimsical “what-if” scenarios for kids in the same vein as Cooper Edens’ masterpiece “Remember the Night Rainbow.”

Why

The “how” of this process was relatively easy. Perhaps the more interesting question was “why?” And there are a couple of reasons. I started the book as a birthday present for a girlfriend-now-just-friend but the more I got into making it, the more I was curious about trying this as an experiment to see if I could do it. One of our goals with Grid7 is to know how to do a bunch of different things, to help others to build stuff they’re passionate about and to create a series of small, passive recurring revenue streams. This project was consistent with those goals and also satisfied a goal I’ve had for some time of wanting to write a kid’s book.

Kathy Sierra has a great post here that talks about the power of embracing constraints and forcing yourself to build something good in thirty days. It’s a great exercise and truly does satisfy something primal to just go and make something. I think about the story of JK Rawlings authoring the Harry Potter series on the train to work every day and I imagine what the world would be like had she not done that. I also think about “what would it be like if everyone rode the bus once a week and used that time to work on a book of their own?” You never fully realize the ripples of what you do – the prospect of creating a moment of shared closness between a child and parent via one of the scenarios in Moonbeams book is mind-blowing and is truly at the core of why I wanted to do it.

So without any more words, here’s the book. You can get the PDF online or purchase the paperback via the site. I put 1/3rd of it up on WithMoonbeams.com so people can get a flavor for what it is. I’m also challenging the following peeps to write a book of their own because selfishly, it’s something I would buy and read if they wrote it:
Noah Kagan – The Burrito Diaries
Jamon Metz – The Cobblestone Thesis
Amanda Harbin – The Wishmaker’s Playbook

MoonBeamsCover.jpg
Mar 02

and nobody is able to repeat it, does it make a sound?

Okay, maybe a bit corny in the repurposing of that famous existential question, but the key point is this:

Your elevator pitch is only as good as the ability of your listener to repeat it. It’s not about cramming your entire story into a single breath but about providing resonance with the listener. If he/she forms no meaningful association and ascribes no importance to it, it is quickly forgotten. The converse is that it’s grokked in a personal and meaningful way and will be recalled in a later situation when appropriate. And the difference is that the message will then be re-transmitted.

PitchFallsinTheWoods.jpgThis point was hammered home in an exercise we did recently in our Fasttrac Growth Venture class. Typically at the beginning of every class each student delivers the most refined version of his/her elevator pitch to the class and gets feedback. The twist in the latest exercise was that you didn’t deliver your own pitch, you had to deliver somebody else’s. Class began as usual but instead of giving our pitch we were told to point at another student. Once every student was pointing at someone unique, each pointee was told to recite the pointer’s pitch.

This exercise wasn’t so much a test of if people were paying attention or not- it was more a test of the transmissibility of the pitches themselves. In other words, an inability to accurately relay someone else’s pitch is more a reflection on the weakness of the pitch vs. the deficiency of the listener. This is a simple yet mind-blowing exercise that demonstrates the importance of how the messaging is received. Unless you’re pitching a potential investor, the role of your pitch is a condensed sound bite for your company that stakes a piece of mental real estate in that person’s mind so that next time he/she meets someone at a cocktail party that needs what you have, you come to mind immediately.

So the takeaway is this:

Crafting a pitch in the absence of feedback is like spending energy to build the perfect steel-reinforced bridge half-way across a river- it’s pointless unless it connects to the other side. Try out your pitch on some friends. Then approach them three days later and ask them to repeat what they remember. Whatever comes back is what stuck – it is the essence of how your pitch is currently received. Just like the game of telephone where the message gets garbled in re-transmission, your pitch is only as good as that final version which gets relayed second-hand at the cocktail party. Doing recon on that second-generation essence gives you invaluable info about how your pitch needs to be altered.

Feb 08

kitesurferSunset.jpgFor those unfamiliar with what kite surfing is, it’s a water sport that meshes wake boarding with the art of flying an over-sized kite and using the wind to generate the power that a motorboat would normally provide. Also known as “kite boarding,” this sport is the fastest growing water sport in the world right now. A skilled kite surfer can navigate upwind tacking like a sailboat and launch several stories into the air by timing a jump off of a large wave. I had the opportunity to try kite surfing over the holidays while I was down in mexico and it was an incredible experience.

So what could kite surfing possibly have to do with entrepreneurship? One is a water sport and the other a occupation right? There are three striking parallels that can be drawn that provide insight to both.

Finding your “power band”

In kite surfing you simultaneously manage both the board in the water and the kite in the air. Imagine trying to wake board behind a boat while piloting the boat via remote control. Now add a vertical component to that and realize that your motorboat works more like a sailboat. Oh yeah, and the wind shifts directions and the sea has waves… so there’s quite a few variables to juggle. If we can make the leap of comparing kite surfing to the art of bootstrapping a startup with minimal resources in an environment where:

  1. the wind is always shifting
  2. the terrain of the sea is in constant motion
  3. and there’s other kite surfers in the water to watch out for

how does one maximize effectiveness at generating power and, consequently, forward progress?

windWindow.jpgThere is a useful mental abstraction in kite surfing called the “wind window.” The wind window is an imaginary quarter sphere that extends around you and occupies your peripheral vision as you are standing with your back to the wind looking straight ahead (like a big orange slice downwind from you if you are one of the seeds). This is the space in which your kite will fly when its tethered to you. Now imagine a colored gradient superimposed against this quarter sphere where the red zone is that spot directly downwind and the concentric zones of the sphere that radiate outward from there to the edge of your peripheral vision are gradually cooler colors. Weird I know, but if you’re visualizing it you should have something like the picture on the right.

Now knowing that your kite is essentially a sail at the end of a long rope and that the only way to generate power is by harnessing the wind, where do you think you need to put the kite to produce maximum power? Answer: the red zone or the “power band.” In kite surfing the trick is to fly figure 8’s maximizing the time your kite spends in that power band. Anything you do with your kite outside of the power band has a negligible effect on your forward progress. The only thing that can pull you out of the water is knowing where that critical band is and keeping your kite solidly in it to generate power.

takeawayThe takeaway here is that, much like with a startup, there are a thousand different things you could do at any moment to improve your situation, but with limited resources it’s all about determining where that power band is at all times. Some startups have blown millions optimizing kite skills with their kites around on the periphery while others have succeeded on shoestring budgets with a small, crappy kite and minimal kite mastery but by keeping their kite in the red zone. At least 50% of this game is identifying the power band.

If the wind is wrong, walk around it

Unlike paragliding where you are constantly moving forward through a relatively-stationary body of air, in kite surfing it’s the reverse- you are relatively anchored with the wind flowing past you. This creates an interesting possibility that you don’t have in paragliding which is the ability to manually use control over your position on the ground to change your wind window and affect how your kite flies. They say “don’t fight the wind, learn to work with it” and anyone who has sailed a boat or a windsurfer will relate to this statement. If the wind isn’t doing what you want, you need to figure out which direction you’re trying to go and change the position of your sail and keel to work with the wind. If you’ve ever tried to pull a windsurfer up when positioned wrong, you’ll find you get hopelessly toppled. It’s the same in kite surfing and, from my experience, the same in a startup.

takeawayTakeaway: when you’re still in the shallows you can always stand up and walk your board around your kite to manually re-orient with the wind. In the same way in a startup sometimes it’s necessary to manually reposition your sail given a shift in the market or newfound knowledge about the competitive terrain.

We’ve already gone through several skins with JumpBox. Initially the plan was to build hardware appliances and sell those to consumers, then we shifted focus to producing a toolset for vendors that would enable them to convert their applications to virtual appliances and now we’ve finally settled on an entirely different business of wrapping powerful open source server apps as virtual JumpBoxes and selling these apps ourselves to small/medium businesses. The point is as things have evolved shifts in the competitive and market environment prompted us on multiple occasions to manually re-orient our sail to position ourselves where we felt we could generate the most power. While perceived as erratic, this is actually the fastest way to advance while you’re still in the shallows.

Edging upwind

kitesurferEdgingUpwind1.jpgThe holy grail of a wind sport is to go upwind. Any jokester with a sailboat can raise full sails and go wherever the wind takes him/her. It takes true skill to know how to tack and travel against the wind – but once you can do that you can go anywhere. In the same way, anyone with deep pockets can start a company, throw up the sail and go downwind. Bootstrapping with minimal resources means you have to learn to travel upwind.

In kite surfing once you’ve generated enough power to pull yourself out of the water, the next trick is to pick your line and use the edge of your board to carve against the ocean to go where you want to go. Snow boarders and skiiers will be comfortable with this terminology- the equivalent of the “fall line” on a snow slope is the vector of force generated from your kite and the equivalent of retaining maximum height on a slope is making maximum forward progress into the wind. The key here is to pick a line that is as close to perpendicular to the fall line as possible and to keep the kite in the right spot to maintain that groove. Once you’ve mastered that skill, the ocean is your playground.

What does this mean to you?

Viewing things in this light, my questions to you are:

  1. Where is your power band? What relatively low-resource-consumptive activities could you engage in today that will have a great deal of impact on advancing your forward progress?
  2. Are you fighting the wind? Have micro or macro trends shifted since you first engaged? Is there any type of manual repositioning at this point that would align you better with the wind?
  3. Where is your fall line? Provided you’re out of the gate at this point and not expending energy to pull yourself out of the water, what are the different fall lines available for you to take? Are you edging with your board, keeping the kite in the right spot and finding the groove with minimal burn and maximum forward progress or is there a better line you could follow?
Jan 23

I’ve known Bill, Ben and Rob for several years and it was an honor to interview them recently on how they’ve built their company Leadbot.com from nothing into being one of the major players in the financial services leads industry.  They share stories from the early days and hard-earned lessons they’ve picked up along the way. Imagine the gloom of coming in one morning to find that your ISP had deleted your entire customer database and failed to ever create a backup.  Then imagine the fortitude and humility necessary to rebuild the database by piecing it together one customer at a time from scraps of paper and angry phone calls.  Listen to the street lessons they share from experience on the latest Venturecast episode.

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