Archive for the ‘Startup Ventures’ Category

Remember Advice is Contextual, Especially in a Dynamic Startup

January 18, 2008

You’ll read lists and lists and lists. You’ll read advice and more advice. I’m part of the information storm, and I want to talk about it. When you’re in a startup the context of your business changes all the time. It is so dynamic that “the most important thing” never stays that way for long.

If you’ve read a lot of books and articles on business and “how to win,” or “the top ten attributes of successful businesses,” or “how to execute” you’ll notice that you get somewhere between a couple morsels of applicable information and zero. Maybe you’ll pick up the latest buzz words.

So why do we read all these books and articles if what we get seems to be very little? Well, it’s to fill gaps, to build confidence, and to reflect. There is a lot of good information out there, it’s just sometimes the context of the writer doesn’t match the context of your business.

There is a lot of context missing from business advice. What is a priority for a company, group, or individual not only changes by individual but is also a function of change over time. Funding is most important, now it’s people, now it’s a sales strategy, now it’s protecting IP, now its [fill in the blank], etc., etc.

Take time to regularly evaluate where you stand. It’s easy to get caught up in the flow of things. Every week or two take some time to slow down, sit back, and think critically about where you’ve come from, where you’re at, and where you want to be. Give yourself some context, try to recollect all the advice you’ve gotten, and then modify your plans.

And, if you find yourself needing some advice, just remember to translate all that you hear and read into the context of your business.


Enter the Danger Zone: Fast Growth or Slow Decline

January 15, 2008

There are precarious times when in business. I’d like to draw attention to the two most precarious times: high growth and slow decline.

The ideal state of a business is sustained growth, a nice gentle line that trends upwards.

A bad state, obviously, is a sharp downward slope. The only positive behind a sharp downward slope is that it’s obvious, you have to react to stop the bleeding or you have to cut your losses.

A not as obvious state of danger is a slow decline. Having a metric slowly go downhill is dangerous. The trend takes longer to see. People can still remain apathetic. It’s the kind of thing where people say “how did we get here?” If your performance metrics are trending down, even just by a small amount, be on your toes.

Probably the most dangerous times are high growth. If your metrics are off the chart it’s a time to celebrate… cautiously. Growth is good, sustained growth is what we want. If you have a peak, be critical. Is it a fluke? Is it sustainable? Be conservative, put money in the bank, don’t overspend. High growth leads to high emotion and that can lead to poor decisions. Get to a sustained growth and you’re golden.


Hair on Fire Analogy, Expanded

December 3, 2007

Maybe you’ve heard the analogy of somone with their hair on fire as an image used to demonstrate the idea that when developing a business offering you should find a critical problem and figure out how to solve it. If you haven’t heard the analogy it goes something like this:

If someone’s hair is on fire they’ll want a hose, they’ll pay you anything you want for it and it the details about the hose doesn’t matter. If you can put the fire out, the person will not care about the color, size, shape or other details about the hose. When starting a business, developing a product, or brainstorming an offering look for a problem that people have and solve it for them. Fix a critical problem and the consumer will not care about the details of the solution.


Hair on Fire

Great advice, right? I think so. But I think there are a couple elements missing from the picture. I think the hair on fire analogy needs expanding on. Here are a few things to consider:

  1. As stated, find a critical problem and provide a solution for it.
  2. As illustrated in the image, but not usually considered; the customer has to know about the problem. This fits the hair on fire analogy. If the user’s hair is on fire, they’ll know. Solving problems that nobody perceives as a problem means you have to spend time and money to educate the consumer. And, if the consumer doesn’t know they have a problem, they will not seek you out. You have to find them.
  3. This one is not illustrated in the picture. There have to be enough people with hair on fire. Or, the small number of customers with their hair on fire must pay big. Make sure your market is large enough to sustain.

So, I think the new analogy should be to find lots of people with their hair on fire and sell hoses to them. That would cover the three points above.

There are other considerations, but I think those three weed out a lot of non-starter business ideas. Cost structures, risk, competition, etc are considerations. But, if you find an idea that meets the three requirements that I’ve outlined, I think you’ve got a great idea to start with… and if you need help with any of the execution, give me a call or send mean email.


Business Writing and Communications, A Short Guide

October 30, 2007

Writing for business is something everyone needs. Whether it’s writing a letter to your local congressman, writing an email to a client, or creating an investor presentation good communication is a must. All professions and people can benefit from improved business communication.

There are two things I want to cover in this article. One, a list of specific types of sentences that can help you be more concise and powerful in your delivery. Two, is a list of more general tips and suggestions that can help your writing in general.

Powerful Sentence Structures for Business Communications

There are five types of sentence structures I recommend in writing business copy.

  1. Definition
    • This is a pretty straight forward sentence. It’s a simple definition of a term. Defining terms, concepts, or ideas concisely in a single sentence demands less of your reader. You should not expect your reader to remember an entire page in order to define a concept that supports a greater message.
    • Example: The HelpAide program provides affordable healthcare to lower income, uninsured families by offsetting costs through charitable contributions.
  2. Relationship
    • This sentence is used to define how two separate items or concepts are related. It provides context so your reader does not have to draw assumptions themselves. Relationships also assist in furthering definitions.
    • Example: HelpAide is similar to existing HMO and PPO coverage plans but are targeted towards emergency medical care.
  3. Cause + Effect + Reason
    • The structure of this sentence is defined in it’s name. Western culture follows the philosophy of cause and effect. Use it in your writings. In a sentence you should give a cause, effect, and reason for that effect. This provides a complete understanding very quickly and very concisely. By stating the entire relationship in a single sentence readers don’t have to have long term memory or figure out that your reason was in support of an effect five sentences previous.
    • Example: Healthcare costs are at an all time high and therefore unreachable to a growing number of citizens due to increased demands on the healthcare system and a discrepancy between low income families and cost of living in general.
  4.  Claim
    • The claim is a direct statement of what you’re trying to convey. Don’t let your reader have to try and tie everything together and draw a conclusion, no matter how logical you think it is. Make your claim. Make it clear and without vagueness.
    • Example: HelpAide is the best solution for fixing the current healthcare accessibility problem for the poor.
  5. Direct Request
    • The direct request is similar to the claim but is usually only necessary if you’re asking for something or attempting to persuade. Just as the claim should be very clear, so should your request. If you are looking for an action, ask for it. Don’t make your reader guess what you want.
    • Example: I’m asking you to make a donation to the HelpAide organization so we can reach more families in need. 

These sentence types are a general guide for how to structure clear and concise ideas in your business writing. Of course there are others. Of course you will not always need all of them. But if you are looking for a way to state something, one of these sentence structures or a combination thereof can probably do it.

Some General Business Writing Tips

Here are a few general tips to improve your business communications:

  1. Know Your Audience
    • When writing your business communications you better know your audience. The terms, tone, and details you give will vary from audience to audience even if the ultimate message and goal you wish to achieve are the same. If your audience is not technical, leave out the jargon. If your audience is uninitiated, give more information and don’t assume knowledge. If your audience is in the know, don’t repeat information they already know. This is a general tip, one everyone says. It’s important, just reflect back when you’re proof reading and put yourself in the shoes of your reader.
  2. Be Conversational
    • Don’t try so hard! You don’t have to try and sound business-like or professional. Other people are just like you. You can be more conversational in your tone, you don’t have to try and be formal. Formality isn’t necessarily what business communications is about. You want to be short, clear, and to the point. Time is money and writing conversationally can make it easier for your reader to understand what you’re saying. Just know your context, sometimes formality is warranted.
  3. Anticipate Questions
    • Anticipate what your reader will ask you… then give the answer! If you’ve communicated the idea before and have received questions, go ahead and answer them. If you can see that your writing leaves some natural questions open, address them. Don’t leave the reader hanging, you’re supposed to be giving information and this isn’t a marketing piece.
  4. Draw The Whole Picture
    • This tip is similar to “Anticipate Questions” but it is more about what comes before you write than the questions that come after. As much as possible, it’s best if your documents can stand alone without the need to reference other information. Don’t assume too much knowledge, always err on the side of caution and give extra information. You never know who the document will be passed to next. Make sure your concepts are complete with details.
  5. Short and Concise is Better
    • Keep it short. As I’ve mentioned, time is money, and the faster a reader can read your document the more appreciative the person will be. Short and concise improves understanding. Don’t make your reader have to remember too much. Don’t make your reader have to understand long-winded explanations for concepts.
  6. Use Fewer Words
    • Similar to “Short and Concise is Better” but more specific. This is about removing those filler words that are unnecessary. Synonyms, fluff, pronouns, and anything else that can be removed yet still maintain grammar and readability. Here’s an example: “Jack and Jill went over to well for some water.” can be written as “Jack and Jill went to the well for water.”
  7. Use Lists
    • I like lists, lists in numbers or bullets like this article are good. Lists in paragraphs are good, they add to conciseness. Lists provide a great organization of concepts and make documents easier to scan and digest for readers. Why is your product good? Oh, because it’s big, fast, and inexpensive. That’s for putting that in a list instead of three separate sentences. 

I hope some of this information is helpful. If you have any tips or suggestions, please add them to the comments below or shoot me an email.


Big Bad Boss: Advice for Bosses, Managers, and Employees

July 30, 2007

What follows is a list of actions and behaviors that bosses exhibit, good ad bad. If you’re a boss, use these lists as a general guide to help you do better and extract more productivity from your employees. If you’re an employee, make sure your boss is performing so you can be successful. If you’re neither, remember these things for when you become an employee or manager.

Do Your Job Comic

DON’T ….

  • Don’t give your employees opportunities but at the same time set them up to fail.
    • This usually happens when you have an employee you can count on, that is doing a great job, and who you want to delegate more responsibility to. When you delegate, in any situation, make sure your employee has expectations set, tools to do the job, and appropriate compensation for going above and beyond. If you give more responsibility you have to give more resources and power.
  • Don’t’ reward bad behavior or poor performance, even by inaction.
    • Be careful not to reward bad employees and poor performance. It demotivates good employees. Even worse is awarding poor performance by inaction. When you treat good and poor employees the same it is rewarding your poor employees and punishing your good ones. It’s not fair, demotivating, and setups up a poor work culture.
  • Don’t punish good performance, even by inaction.
    • Do not punish good employees. This can be done by inaction, by lack of appreciation and compensation, or by piling on the work because “you know she’ll pull through.” Even worse is punishing a good employee. Be careful with good employees, they all should not be treated the same; they’re not your kids.
  • Don’t show too little appreciation.
    • The most demotivating thing for your good employees is a lack of appreciation. Be sure to say thank you, to give them extra privileges, extra gifts, and extra compensation. Even kind words and a “good job” go a long way.
  • Don’t forget things you’ve said or promised.
    • You’re the boss, you’re the entire world to your employees. If you’ve said something or have promised something don’t forget it. Write things down, take notes, send yourself emails, write on your hand. Do whatever it takes to not forget things you’ve said; your word is the law and it sets up the work environment. If you don’t remember what you’ve said you’re creating an ambiguous work environment that your employees cannot navigate and will get frustrated and demotivated by.
  • Don’t give your employees impossible tasks.
    • Don’t ask your employees to do things that are impossible. This includes tasks that they do not have resources for, tasks that there are not enough time for, or by over-burdening them with labor. Setting up your employees to fail creates a very negative work environment.
  • Don’t be a stranger.
    • Don’t be a stranger to your employees. Don’t be an absentee manager, you have to know what’s going on in your domain. If you’re not there it’s impossible for you to know what’s going on. If you’re not there, employees can’t turn to you to help remove barriers.

Dream Manager Job Cartoon

DO …

  • Do expect your employees to do their jobs.
    • You made an agreement when your employees were hired. Expect them to fulfill their duties, they are getting compensated for it. If your employees are not fulfilling their obligations they need to step up or you need to have them step out.
  • Do create a culture of success.
    • All the time you need to tell your employees what the goal is and strive for it. Let them know the big goal; to sell a million units, to make a million dollars, to be number one in the market. But set small goals too; how many good ideas can they come up with today, how many happy customers can they support, can they get the next component done by the end of the week, can group A get their project done with less bugs than group B.
  • Do measure successes and failures. 
    • Performance is important, knowing who is performing and who is not, knowing which areas of the business to focus on, knowing if you’re meeting goals. Make sure to put in some measures of performance, it gives you an objective view of the situation and makes it easier to talk to your employees, especially if you have to reprimand them.
  • Do treat your good employees better than your bad employees.
    • Your good employees are an invaluable asset that you have to take care of and keep. Your poor employees are a menace to your group or organization and need to be mitigated or removed. You should treat your good employees well, they are setting an example for your organization. Don’t play arbitrary favorites though, reward good behavior based on measurements and results and make it obvious why the rewards are being given.
  • Do learn about your employees goals and desires.
    • You should genuinely value your employees. Learn about their goals and desires and try to help them come to fruition. It’s a reward that breeds loyalty and trust. It shows you see them as more than just cogs in a wheel. Motivate your employees by helping them reach their personal goals.
  • Do things as a group to promote team bonding.
    • Your group is likely made up of many people that work together in a continuous process or system. It’s important that the group meshes. Find ways to bond your group, it creates team loyalty and efficiency. It’s a motivator working with people you enjoy being around. Do lunches, group projects, and non-work interaction.
  • Do be open to your employees.
    • Your employees need to know whats going on in the company and in the group. Don’t sugar coat or hide too much. Inevitably bad news comes out and by hiding or being afraid to share bad information you will build a culture of mistrust. Make sure your employees know what’s going on in the organization. You must respect their ability to make decisions and deal with situations. Hiding information is mistrustful and manipulative.
  • Do remove bad apples as soon as possible.
    • The worst thing for a team is a bad employee. You’ve heard a chain is only as strong as its weakest link. Make sure to root out bad employees before they are able to disrupt your organizations processes, culture, and people. It’s hard to build a great team, but very easy to tear it down.
  • Do implement some level of structured reporting, even if it’s minimal.
    • You need to know what’s going on. Your employees also want the opportunity to tell you what they’ve accomplished, even if it’s small. While structured reporting can go overboard, make sure you have some level of regular reporting implemented from the beginning and you stay on top of it. Daily or weekly emails are just fine. It also gives your employees an opportunity to contact you in a non-threatening way and allows you to keep up to date on the details of what’s happening. But don’t micro-manage.

Good luck out there… the work environment is a tough one to manage.