Seth Godin – Questions for a New Entrepreneur

Posted on October 29, 2011 by hydle

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A few things came up over coffee the other day. His idea is good, his funding is solid, there are many choices. Some of the questions that don’t usually get asked:

Are you aware of your cash flow? The thing about a fish in the stream is that it doesn’t care if the water is six inches deep or a foot deep. As long as it never (ever) goes to zero, it’s fine. What’s your zero point? What are you doing to ensure you get to keep swimming?

Are you trying to build profit or equity? A business that builds a brand, a footprint, a standard and an audience might end up being worth millions (witness Tumblr, which has many millions of value but zero profitabilty). On the other hand, a business with no exit value at all might spin off plenty of profit (consider the local doctor’s office). It would be great if you could simultaneously maximize both the value of your company and the profit it produces (in the short run), but that’s unlikely.

What’s your role? Do you want to be a freelancer, an entrepreneur or a business owner? A business owner is the boss, but it’s a job, a place that is stable and profitable. An entrepreneur is an artist of sorts, throwing herself into impossible situations and seeking out problems that require heart and guts to solve. Both are fine, but choose.

Are you trying to build a team? Some business owners want to minimize cost and hassle. Others are trying to forge a culture, to train and connect and lead.

Which kind of risk is okay with you? There’s financial risk, emotional risk and brand risk (among others). Are you willing to put your chips on the table daily? How about your personal reputation?

And finally, and most important, why? Why are you doing this at all?

Hugh MacLeod — Infinite Market

Posted on October 28, 2011 by hydle

This is a revisit to a previous cartoon which inspired Seth Godin to write a book…

My friend Seth Godin said it perfectly, “What do marketers sell that scales? I’ll tell you what: Belief. Belonging. Mattering. Making a difference. Tribes. We have an unlimited need for this.”

[Read and remember this link]

Seth Godin – Fill in the Blank

Posted on October 10, 2011 by hydle

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“…but what really blew me away…”

A simple fill in the blank for creating a remarkable service, partnership or experience:

“I was pleased that I got what I paid for, that the food was properly cooked, that they honored their contract, that the roller coaster worked, that there was no trash on the ground and that the staff looked me in the eye. But what really blew me away was _____”

By definition, whatever goes in the blank is an extra, more than you had to do. But what you must do to be considered remarkable. (Remarkable is what we call something we remark on).

Seth Godin – The Forever Recession (and the coming revolution)

Posted on September 29, 2011 by hydle

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There are actually two recessions:

The first is the cyclical one, the one that inevitably comes and then inevitably goes. There’s plenty of evidence that intervention can shorten it, and also indications that overdoing a response to it is a waste or even harmful.

The other recession, though, the one with the loss of “good factory jobs” and systemic unemployment–I fear that this recession is here forever.

Why do we believe that jobs where we are paid really good money to do work that can be systemized, written in a manual and/or exported are going to come back ever? The internet has squeezed inefficiencies out of many systems, and the ability to move work around, coordinate activity and digitize data all combine to eliminate a wide swath of the jobs the industrial age created.

There’s a race to the bottom, one where communities fight to suspend labor and environmental rules in order to become the world’s cheapest supplier. The problem with the race to the bottom is that you might win…

Factories were at the center of the industrial age. Buildings where workers came together to efficiently craft cars, pottery, insurance policies and organ transplants–these are job-centric activities, places where local inefficiences are trumped by the gains from mass production and interchangeable parts. If local labor costs the industrialist more, he has to pay it, because what choice does he have?

No longer. If it can be systemized, it will be. If the pressured middleman can find a cheaper source, she will. If the unaffiliated consumer can save a nickel by clicking over here or over there, then that’s what’s going to happen.

It was the inefficiency caused by geography that permitted local workers to earn a better wage, and it was the inefficiency of imperfect communication that allowed companies to charge higher prices.

The industrial age, the one that started with the industrial revolution, is fading away. It is no longer the growth engine of the economy and it seems absurd to imagine that great pay for replaceable work is on the horizon.

This represents a significant discontinuity, a life-changing disappointment for hard-working people who are hoping for stability but are unlikely to get it. It’s a recession, the recession of a hundred years of the growth of the industrial complex.

I’m not a pessimist, though, because the new revolution, the revolution of connection, creates all sorts of new productivity and new opportunities. Not for repetitive factory work, though, not for the sort of thing ADP measures. Most of the wealth created by this revolution doesn’t look like a job, not a full time one anyway.

When everyone has a laptop and connection to the world, then everyone owns a factory. Instead of coming together physically, we have the ability to come together virtually, to earn attention, to connect labor and resources, to deliver value.

Stressful? Of course it is. No one is trained in how to do this, in how to initiate, to visualize, to solve interesting problems and then deliver. Some see the new work as a hodgepodge of little projects, a pale imitation of a ‘real’ job. Others realize that this is a platform for a kind of art, a far more level playing field in which owning a factory isn’t a birthright for a tiny minority but something that hundreds of millions of people have the chance to do.

Gears are going to be shifted regardless. In one direction is lowered expectations and plenty of burger flipping. In the other is a race to the top, in which individuals who are awaiting instructions begin to give them instead.

The future feels a lot more like marketing–it’s impromptu, it’s based on innovation and inspiration, and it involves connections between and among people–and a lot less like factory work, in which you do what you did yesterday, but faster and cheaper.

This means we may need to change our expecations, change our training and change how we engage with the future. Still, it’s better than fighting for a status quo that is no longer. The good news is clear: every forever recession is followed by a lifetime of growth from the next thing…

Job creation is a false idol. The future is about gigs and assets and art and an ever-shifting series of partnerships and projects. It will change the fabric of our society along the way. No one is demanding that we like the change, but the sooner we see it and set out to become an irreplaceable linchpin, the faster the pain will fade, as we get down to the work that needs to be (and now can be) done.

This revolution is at least as big as the last one, and the last one changed everything.

Seth Godin – You are Welcome

Posted on September 15, 2011 by hydle

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“What would you have me do instead?”

To the critic who decries a project as a worthless folly, something that didn’t work out, something that challenged the status quo and failed, the artist might ask,

“Is it better to do nothing?”

To the critic who hasn’t shipped, who hasn’t created his art, anything less than better-than-what-I -have-now appears to be a waste. To this critic, progress should only occur in leaps, in which a fully functioning, perfected new device/book/project/process/system appears and instantly and perfectly replaces the current model.

We don’t need your sharp wit or enmity, please. Our culture needs your support instead.

Each step by any (and every) one who ships moves us. It might show us what won’t work, it might advance the state of the art or it might merely encourage others to give it a try as well.

To those who feel that they have no choice but to create, thank you.

Consumers and Creators

Posted on August 9, 2011 by hydle

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Fifty years ago, the ratio was a million to one.

For every person on the news or on primetime, there were a million viewers.

The explosion of magazines brought the ratio to 100,000:1. If you wrote for a major magazine, you were going to impact a lot of people. Most of us were consumers, not creators.

Cable TV and zines made it 10,000 to one. You could have a show about underwater spearfishing or you could teach people to make hamburgers on donuts. The little star is born.

And now of course, when it’s easy to have a blog, or an Youtube account or to push your ideas to the world through social media, the ratio might be 100:1. For every person who sells on Etsy, there are a hundred buyers. For every person who actively tweets, there are a hundred people who mostly consume those tweets. For every hundred visitors to Squidoo, there is one new person building pages.

What does the world look like when we get to the next zero?

Easy vs. Do-Able vs. Impossible

Posted on August 1, 2011 by hydle

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Often we consider an opportunity based on how easy it is. The problem with this analysis is that if it’s easy, it’s often not worth doing. It’s easy to start a blog, but of course, starting a blog doesn’t really deliver a lot of value. Posting 4,100 blog posts in a row, though, isn’t easy. It’s do-able, clearly do-able, and might just be worth it.

Successful organizations seek out the do-able. When Amazon went after the big bookstore chains, analysts ridiculed them for doing something insanely difficult. But it was clearly do-able. Persistence and talent and a bit of luck, sure, but do-able.

Sometimes we seek out things that are actually impossible. Building a search engine that’s just like Google but better is impossible (if your goal is to dominate the market with it). It’s fun to do impossible projects because then you don’t have to worry about what happens if you succeed… you have a safety net, because you’re dreaming the impossible dream.

Do-able, though, is within our reach. Ignore easy.

Harlan Ellison – Pay the Writer

Posted on July 31, 2011 by hydle

[YouTubeUlar] <— 524,719 Need some balls to justify your freelance ability to do anything? Remember these words of Harlan Ellison... this is your answer.

“All you got to do is pay me. Everybody else may be an asshole but I’m not. By what right would you call me and ask me to work for nothing? Do you get a paycheck? Does your boss get a paycheck? Do you pay the telecine guy? Do you pay the camera men? Do you pay the cutters? Do you pay the teamsters when they shlep your stuff on the trucks? Would you go a gas station and ask to give you free gas? Would you go to the doctor and have them take out your spleen for nothing? How dare you call me and what me to work for nothing…

…there is no publicity value. The only value for me, is if you put money in my hand.

I don’t take a piss without getting paid for it.

I get so angry about this because you undercut by all the amateurs. It’s the amateurs who make it tough for all the professionals.”

Now that we have that clear… lets talk about some creative thinking.

[Learn more about Harlan Ellison]

No such thing as business ethics

Posted on July 25, 2011 by hydle

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The happy theory of business ethics is this: do the right thing and you will also maximize your long-term profit.

After all, the thinking goes, doing the right thing builds your brand, burnishes your reputation, helps you attract better staff and gives back to the community, the very community that will in turn buy from you. Do all of that and of course you’ll make more money. Problem solved.

The unhappy theory of business ethics is this: you have a fiduciary responsibility to maximize profit. Period. To do anything other than that is to cheat your investors. And in a competitive world, you don’t have much wiggle room here.

If you would like to believe in business ethics, the unhappy theory is a huge problem.

As the world gets more complex, as it’s harder to see the long-term given the huge short-term bets that are made, as business gets less transparent (“which company made that, exactly?”) and as the web of interactions makes it harder for any one person to stand up and take responsibility, the happy theory begins to fall apart. After all, if the long-term effects of a decision today can’t possibly have any impact on the profit of this project (which will end in six weeks), then it’s difficult to argue that maximizing profit and doing the right thing are aligned. The local store gets very little long-term profit for its good behavior if it goes out of business before the long-term arrives.

It comes down to this: only people can have ethics. Ethics, as in, doing the right thing for the community even though it might not benefit you or your company financially. Pointing to the numbers (or to the boss) is an easy refuge for someone who would like to duck the issue, but the fork in the road is really clear. You either do work you are proud of, or you work to make the maximum amount of money. (It would be nice if those overlapped every time, but they rarely do).

“I just work here” is the worst sort of ethical excuse. I’d rather work with a company filled with ethical people than try to find a company that’s ethical. In fact, companies we think of as ethical got that way because ethical people made it so.

I worry that we absolve ourselves of responsibility when we talk about business ethics and corporate social responsibility. Corporations are collections of people, and we ought to insist that those people (that would be us) do the right thing. Business is too powerful for us to leave our humanity at the door of the office. It’s not business, it’s personal.

[I learned this lesson from my Dad. Every single day he leads by example, building a career and a company based on taking personal responsibility, not on blaming the heartless, profit-focused system.]

Time for a Workflow Audit

Posted on July 11, 2011 by hydle

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Go find a geek. Someone who understands gmail, Outlook, Excel and other basic tools.

Pay her to sit next to you for an hour and watch you work.

Then say, “tell me five ways I can save an hour a day.”

Whatever you need to pay for this service, it will pay for itself in a week.

How do you know when it’s done?

Posted on June 23, 2011 by hydle

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Of course, it’s not done. It’s never done.

That’s not the right question.

The question is: when is it good enough?

Good enough, for those that seek perfection, is what we call it when it’s sufficient to surpass the standards we’ve set. Anything beyond good enough is called stalling and a waste of time.

If you don’t like your definition of ‘good enough’, then feel free to change that, but the goal before shipping is merely that. Not perfect.

Economies of Small

Posted on April 24, 2011 by hydle

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Economies of scale are well understood. Bigger factories are more efficient, bigger distribution networks are more efficient, bigger ad campaigns can be more efficient. It’s often hard to defeat a major competitor, particularly if the market is looking for security and the status quo.

But what about the economies of small? Is being bigger an intrinsic benefit in and of itself?

If your goal is to make a profit, it’s entirely possible that less overhead and a more focused product line will increase it.

If your goal is to make more art, it’s entirely possible the ridding yourself of obligations and scale will help you do that.

If your goal is to have more fun, it’s certainly likely that avoiding the high stakes of more debt, more financing and more stuff will help with that.

I think we embraced scale as a goal when the economies of that scale were so obvious that we didn’t even need to mention them. Now that it’s so much easier to produce a product in the small and market a product in the small, and now that it’s so beneficial to offer a service to just a few, with focus and attention, perhaps we need to rethink the very goal of scale.

Don’t be small because you can’t figure out how to get big. Consider being small because it might be better.

The Four Horsemen of Media

Posted on April 18, 2011 by hydle

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The first is when you talk about yourself. Directly to people who care to hear you out.

The second is when you pay someone to carry your message. Media for hire, we call it advertising.

The third is when you cajole the ‘editorial’ side to talk about you, with authority. Publicity is often worth more than advertising, but it’s pesky in that it doesn’t perform on demand.

The fourth, the fourth is all the rage right now. That’s when unanointed kings of tiny media, when bloggers and tweeters and others talk about you.

Why do we persist in believing that these four have much in common? They don’t. Being confused about how to classify them is expensive, or worse.

You know you’re in trouble if someone on your team says anything like, “But how do we do this quickly? And at scale? Is there a way interns can churn through names? We have money to spend, hurry!”

There are some that would be delighted if PR and social media would just own up and start playing by the rules of advertising. In other words, you ought to be able to buy this sort of buzz. It’s more efficient, more convenient and more predictable.

Of course, it doesn’t work that way. Buying your way into the fourth horseman doesn’t work. Professionalizing it doesn’t work so well either. What works is making something worth talking about.

As it should be.

If you’re hoping that this now important form of media is going to sit there and promote your average stuff for average people made in bulk but pretty cheap product merely because you’re used to paying media companies to run ads… I think you’re wasting a lot of time and money.

This goes deeper than that. You’ll need to take that money and change the product and the service instead.

In search of a biz monkey (why bother?)

Posted on April 13, 2011 by hydle

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Andrew Chen coins a great term. A biz monkey is a replaceable, Powerpoint toting, suit wearing, acronym-spewing middle manager business dude drone. They are quick to comment and sneer, slow to actually ship.

When something is scarce, it’s valuable. MBA’s with buzzwords and the ability to raise a million dollars around some web idea are not scarce. They are fungible.

People who understand technology and are willing to bend it to their will, on the other hand, are scarce. They can’t be found with a classified ad on Craigslist or in a blind project ad on eLance.

The job of the smart business person isn’t to fish in waters where coders are cheap. It’s to have enough initiative and vision that the best coders in the world will realize that they’ll do better with you than without you.

Business people add value when they make things happen, not when they seek to hire cheap.