Archive for the ‘Business’ category

Waiting on hold, and other stupid things that I do

February 16th, 2010
Sprint Nextel

Image via Wikipedia

As a business owner, I would always wish that my customers or users would email me feedback regardless whether I asked for it. It’s nice to hear when you are doing things well, and its great (though not pleasant) to hear when you screw up. Screwing up allows you to fix things, and more often than not, your customers will thank you.

As such, I do stupid things, like wait on hold to make silly requests – like when Comcast didn’t offer CNBC, or Red Zone, or a whole host of other channels to subscribers in Cambridge, I called to request it (and waited for 30 minutes).  Lo-and-behold, 4 months later Comcast added these stations. Do I really believe that my feedback spurred the change? No. Do I believe that enough people called to complain? Yes, and that’s why I do these things – the marginal utility of my call.

That’s why I just sent an email to Sprint to request that they start carrying the Nexus One. They’ll probably ignore my one email, but maybe, just maybe, they’ll get enough requests to realize they have an opportunity. Maybe they’ll understand that the reason they’ve been bleeding so many customers is because to-date, they’ve offered an inferior product with no competitive advantage.  They are a me too player, which lags in innovation…so far.

If Sprint is serious about winning their customers back, that means leapfrogging their competition: actually deploying a 4G network instead of over-promising and under-delivering, and also deploying only top of the line handsets which could handle this network, handsets currently only found on ATT or Verizon or T-Mobile. High end used to be the bread and butter of Nextel before Sprint watered it down with crap…so I have hope that maybe, just maybe, Sprint will find its way.

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Thoughts on Elance – Outsourcing to India

February 15th, 2010
India

Image via Wikipedia

For the last 3 weeks, I’ve been working with a firm out of India to help me with the design of my financial planning site.  So far, things are going relatively well, but there have been some bumps along the way. For those of you interested, here’s what to look out for.

Elance, for those who don’t know, is a site that connects freelancers with people in need of professional work.  I was able to post some basic specs, and a whole host of firms were able to bid on this work.

Choosing a Contractor

This really is going to be highly dependent on what you are looking for (and will seem a little discriminatory).  Keep in mind that you get what you pay for, so the better developers are  going to cost you more than $20/hr. As per some basic discrimination, avoid all developers in the US who charge $20/hr or less -cost of living alone in the US is phenomenally high compared to developing countries such that a similarly priced US and foreign firm will tell you something about what you will get back.  And if you are looking for something extremely high quality, avoid India and Pakistan.  Developers from this region are looking to cut corners and put something out as quickly as possible, regardless of quality. Something you also need to consider will be your own technical and product management skills. If you haven’t overseen a developer before, you might want to consider shelling out some more moolah.

Elance also provides samples of work from each firm, customer reviews, and a skill-set testing system so you can get a basic idea of what each firm can do. Before choosing a firm, make sure that the firm has taken Elance’s tests (instead of self rating which obviously is going to lead to arbitrarily high scores), and has received high marks from previous customers.

So why did I choose India?

Because the developer had ton a TON of work previously completed via Elance and had received mostly positive reviews. Also, per my own advice, I am getting a very alpha version out as quickly as possible so that I can test before I spend too much money. I’ve spec’d out what I consider a minimum viable product for initial feedback, and only once I feel we’ve developed a sustainable idea will I find a higher quality firm (or co-founder). Moreover there’s something to be said about having worked with Indian firms before, and having worked extremely closely with a wide variety of highly skilled developers here in the States.

My dream firm was this studly Ukrainian team that unfortunately would have cost me about 3 times as much. They were responsive, technically savvy, and honest about their qualifications and time needs. Sadly, for now I need something cheap and dirty, and am willing to sacrifice quality for cost effectiveness.

The Bumps

So far, communication has been the largest issue so far.  After I first selected the firm, when my project was being handed over from the marketing team to the developers, the firm stopped responding. Flat, cold stopped responding. I basically had to threaten to take my work elsewhere before someone got back to me and a flurry of activity began.  Luckily, the initial mockups of the homepage were of high enough quality to justify sticking with them.

My other issue with communication is around dialogue. I’m used to asking developers a question and getting an answer with a few options as well as a recommendation. This doesn’t occur with the Indians – instead, I ask “would this navigation work better horizontally instead of vertically?” and a day later they just respond “we have changed the navigation tabs”.

My last issue is one of quality. You can tell that some of the aesthetics are rushed, and often I have to ask for 4 or 5 iterations before something looks like it should’ve the first time. The code looks clean enough so far, mostly because I think they are using 3rd party open sourced plugins.  I’ll see how the custom code ends up looking, and hopefully that will be clean as well.

Final Thoughts

I’ll definitely follow up on this after the project is done, but so far so good. Here’s what I’ve learned:

1) Micromanage, micromanage, micromanage: you have to be on top of these guys day in and day out. Every week begins with me asking what the plan for the week is, and then for every iteration I critique and immediately send back my feedback. Typically, I hate to micromanage as I think it is hugely inefficient, but this is one of the exceptions to the rule.

2) Everything takes twice as long as you plan for: the typical adage is that it should cost twice as much as well, but this is a fixed bid. We’ll see about how much follow on work costs.

3) Know EXACTLY what you want: You can’t assume that the firm will go above and beyond to wow you, so you must have your project perfectly specified and planned.

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Why I love “Tabatha’s Salon Takeover”

February 11th, 2010
A Facial mask.
Image via Wikipedia

Yes, you read that right. My testicles apparently didn’t show up for this post. Perhaps the snowstorm scarred them away, but regardless, today I watched a marathon of Tabatha. She’s this slender, brash Simon Cowell wannabe who takes over failing hair salons and turns them around in a week – and it’s a great crash course in business.  It’s a consulting biz and I highly recommend checking it out. Here are the ABCD’s of Tabatha.

Aesthetics Count
Your clients notice when your office is dirty (or website for that matter), and what they view should be pleasing to the eye.  It’s really incredible what good design can do, and Tabatha goes in and guts their salons for better version.

Be Professional
Personality is great, but if you aren’t professional, then your clients won’t respect you and you certainly won’t be able to charge premiums for your service. So far I’ve seen Tabatha demolish people who start arguments with coworkers or yell across the salon, wear unbecoming clothing, or treat their clients with disrespect.

Customer Service, Customer Service and, oh yeah, Customer Service
Get out of the backroom and start talking to your clients.  Welcome them, make them feel comfortable, entertain them, and understand them.

Don’t Suck
There’s no excuse for you to do something you suck at. If you offer a shoddy service, you deserve to fail, or in Tabatha’s case, be fired.

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Interview with Mark Pincus

February 4th, 2010
Mark Pincus
Image via Wikipedia

The NY Times has a great interview with Mark Pincus of Zynga. They’ve got a great process for running the company which he describes here:

Q. What else is unusual about how you run the company?

A. John Doerr [the venture capitalist] sold me on this idea of O.K.R.’s, which stands for objectives and key results. It was developed at Intel and used at Google, and the idea is that the whole company and every group has one objective and three measurable key results, and if you achieve two of the three, you achieve your overall objective, and if you achieve all three, you’ve really killed it.

We put the whole company on that, so everyone knows their O.K.R.’s. And that is a good, simple organizing principle that keeps people focused on the three things that matter — not the 10.

Then I ask everybody to write down on Sunday night or Monday morning what are your three priorities for the week, and then on Friday see how you did against them. It’s the only way people can stay focused and not burn out. And if I look at your road map and you have 10 priorities for you and your team, you probably don’t know which of the three matter, and probably none of the 10 are right.

I can look at everyone’s piece of paper, and their road map shows every item you were going to do and your predicted results and actual results, and then the results are in red if you missed them, yellow if they’re close and green if you passed them. I think road maps are a great principle just for managing your life. It keeps everybody focused, and it lets me know what trains are on or off the tracks.

I really love this – it keeps things simple and achievable, breaking complex goals into very manageable tasks.  In the article, he also talks about making everyone the CEO of something, which is a nice way of saying, give people ownership of tasks – have them do stuff that matters.

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Lunch and Inspiration

January 8th, 2010
Jeffrey Dahmer
Image via Wikipedia

Just got back from lunch with a friend of mine named Zach Servideo. He introduced me to “The Black Sheep”, a restaurant located in an old Firehouse in Kendall Square which has phenomenal food. If you don’t know Zach, he’s a passionate PR professional who could befriend the most anti-social person in a room and turn them into an entrepreneur.  Needless to say, had Jeffrey Dahmer met Zach in the early 70’s, he would’ve started up a software company.

Zach is starting up a little side project called All White Kicks aimed at individuals interested in White Shoes. It’s a niche I would’ve never thought of, but with his passion, he can clearly make it work.

It also reminded me of my friend Alan who always has a few side projects going on. He’s experimenting with a few random AdSense pages such as My Reticulated Python and he’s also working on a niche site called The Curry Project, which aims to review every Indian restaurant in the world.

All of these side projects have inspired me, and I wanted to let you know about a new project I have called HapiMoney. Personal finance education is woefully inadequate and most people don’t know the first thing about where their money should go and in what amounts. I hope to shed some light on money management. Check it out and let me know if you have any ideas. Also, the name is awesome because Hapi is the Egyptian deification of the Nile flooding. This flooding helped water Egyptian crops and brought prosperity to the region.

These little projects also reminded me about one of the biggest mistakes that we ever made at WebNotes- we failed to follow the adage ” release early and release often”. The project was started in 2005 and wasn’t actually released to the public until 2008- 3 years of time which could’ve desperately used public feedback. But I’ll talk more about this in a future post.

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Moving On

December 20th, 2009
Office Space: Motion Picture Soundtrack album ...
Image via Wikipedia

This past week was a big week for me: I’ve officially left WebNotes and am searching for the next big thing in startup land! It was an amicable break up, so no feelings were hurt, and WebNotes is moving to the West Coast for a much needed restart.

In retrospect, it was a frighteningly fast sprint this past year and a half and I learned an amazing amount about entrepreneurship, software and marketing.  Now that I am no longer the head cheerleader for the firm, I will be trying to do a bit more teaching on this blog, instructing other wantrepreneurs (entrepreneur wannabe’s) how to be more efficient in their execution.  We made a ton of mistakes, and I hope you all can learn from them.

I wish the WebNotes guys the best of luck out in Cali, and I hope they are able to turn things around. And if you are a startup in the Boston area and are looking for some help in marketing, shoot me an email and we’ll grab a coffee to discuss.

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The Illusion of the End

December 4th, 2009
Jean Baudrillard in 2004
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“We have the particle accelerator that has smashed the referential orbit of things once and for all.” – Jean Baudrillard

Fyi, don’t read this if you are in the mood for light reading.

It seems that late night pondering of the real time economy has  sparked a train of philosophical thought in me lately. Maybe it’s that the holidays and a new y ear are coming up, or maybe it’s that working at a startup is always very transitory, but those thoughts come a rumbling. Information is flowing faster and faster, and the modes and methods of communication have been producing more data than we know what to do with. Information is produced, then copied  and transformed (or transmogrified for Calvin and Hobbes fans) ad nauseum – copies of copies of copies.

Jean Baudrillard, the French “postmodern” philosopher has been truly inspirational on the subject, and while his attitudes are more or less deterministic and provide little alternative, I think they are worth delving into. Thus, I present the 3 metaphors of information and significance:

  1. Physics Metaphor #1 – The significance and meaning of data are masses with gravitational weight- the faster that new information revolves around these masses, the quicker it reaches it’s escape velocity, and flings from orbit, decoupling data from meaning.
  2. Physics Metaphor #2- Data itself is a mass, and the more data that’s available, the “heavier” it all becomes – too much data means and incredibly dense mass which draws everything to a halt (much like a black hole bending and slowing down time).
  3. Music metaphor- We are obsessed with “high fidelity”, replicating sound to replace the original. Musicality replaces music as we push towards this end, as we fiddle with amplifiers, special effects, reverb and the like. The same occurs with television and magazines as we have post-production effects changing the nature of history. Magazines use photoshop to touch up models to make them more real, or add smoke to make a fire more gruesome. Television adds sound effects, and declares imaginary wars using exciting graphics on terrorism, liberalism, conservatism, etc.

So what does Jean have to say about all of this? What do we need?

“A degree of slowness (that is, a certain speed, but not too much), a degree of distance, but not too much, and a degree of liberation (an energy for rupture and change), but not too much, are needed to bring about the kind of condensation or significant cystallization of events we call history, the kind of coherent unfolding of causes and effects we call reality [le reel]“.

Or to translate this to the real time economy, we need more filters. Systems that create information are adding to the problem, not aiding it. The solution is a way to limit our information, give us distance, and give us depth.

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Venture Capital Consulting

November 23rd, 2009

About a week ago, I had the distinct pleasure of meeting with the charming Liz Knopf of OpenView Partners. We met for a drink and she was kind enough to enlighten me on how OpenView was revolutionizing the venture scene.

OpenView, founded in 2006 and on it’s 2nd fund, typically only invests in “expansion stage” software companies that are making about 500k per quarter and growing…and growing fast. Obviously these companies have achieved product/market fit and are no longer floundering to find their place in the business world – they just need to aggressively expand, something which takes a significant amount of dinero. Because these companies have found their market, and have found a repeatable sales cycle, the amount of inherent risk is incredibly limited compared to other startups. The risk that remains is operational, and it is a risk that OpenView seriously attempts to mitigate by providing strategic consulting to their investments. In fact, Liz goes so far as to say that OpenView isn’t a venture capital firm but rather a consulting firm that makes it’s money through capital gains.

It’s nice to see a firm that has this kind of culture.

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DartBoston Panel

November 6th, 2009

Last night, I had the fortunate experience of appearing on my first panel at DartBoston.  We were picking apart the startup RiotVine, who was kind enough to fall victim to our snarls. I had the pleasure of sitting next to some very interesting minds, notably (going from right to left) our graceful moderator Cort Johnson, Nick the ultranurd, Vadim the microfinance revolutionary, and then me, the babbling incoherent idiot. Luckily, Nick and Vadim carried the show, and I, by association was made to look relatively cogent. If you’d like to take a gander, check it out below. It’s about 30 minutes of high packed action.

The Fun Theory

November 4th, 2009

I’ve been noticing a trend recently among car makers who are implementing game play in their products to change otherwise ingrained behavioral patterns. Note the following sequence of events:

First, a week ago, I was forwarded an email from my father which had a link to The Fun Theory. This is VW’s site wherein they try to get people to recycle more, or clean up their refuse, or even, god forbid, take the stairs occasionally. Here are the 3 videos from their site which are all delightfully addictive.

Next, I was watching TV when I spotted a commercial featuring a the new 2010 Ford Fusion. I’m unable to find the commercial, but below is a nice demo video. Notice around 45 seconds in, how increasing your MPG allows you to magically grow a tree or a bush or whatever that plant is. If driven in Florida, it will even sprout oranges.

The last component of this trifecta appeared before me in a brief apparition last night when I saw a commercial for the new Honda Insight Hybrid with “Eco” mode. The Honda site has a nice, albeit un-embeddable video which can be viewed here. Honda goes a few steps further than Ford and will notify you via 3 different meters how efficiently you are driving: 1) a color gradient which shifts from  green to blue as your MPG decreases, 2) a bar graph which will tell you if you are braking too hard or accelerating too quickly, and 3) surprise, surprise, plants that bloom when you are being efficient.

The true testament to whether these are gimmicks or  not will be whether or not the 2011 editions of these cars will have the same notifications. I personally think that Honda has the right idea with the acceleration/braking bar graph and the color gradient…I just think a plant growing is too cheesy to be effective. Honestly, a better implementation of game play would be to set up target MPG’s and then see if you can surpass it with each tank of gas. Ford/Honda could even have a website dedicated to high scores – it would be an arcade game for adults! Let’s be honest, who wouldn’t drive like an 80 year old woman with cataracts in order to conserve gas then?

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