Blog entries written by Anthony Dale Kuhn
| ReGen Lands VC Funding To Build Proof-of-concept System | |||
| Written by Anthony Dale Kuhn | |||
| VentureBeat.com : An waste-heat energy recovery startup received a round of funding that should help it build a real-world, proof-of-concept system, according to a recent piece by Chris Morrison. Need more power? Try recycling what you’ve already used details the news for us: "Another significant funding deal for the energy conservation crowd was announced this morning, with ReGen Power Systems taking $5 million for an engine that converts waste industrial heat into power. That may sound a bit boring, but the investment and technology are a harbinger of big changes to come." The first installation will be a smallish 10KW engine with plans to increase the size to 500KW should the concept work as intended. As an investment, the technology used by ReGen seems like a good one. Morrison writes, "the heat recyclers they’re building aren’t just for the largest, hottest smokestacks, but will instead address nearly all industries. Ultimately, that could save gigawatts of energy, and generate billions of dollars in revenue yearly." In a separate piece from VentureBeat.com , Camille Ricketts reports on the purchase of Transmeta by a video chip company. Ricketts notes, "Video processor developer Novafora announced today that it will acquire microprocessor and semiconductor company Transmeta for $255.6 million. Primarily, the Cupertino Calif. firm is interested in its acquisition’s low-power technology, which it plans to integrate with its own processor to offer more video capabilities on a range of video devices." For more complete details, check out the rest of the story . New Scientist : The bounty on prior art to bust bad patents takes on a second life with the advent of a new startup leading the "good" fight. Cash prizes offered for patent-busting evidence from the Tech department explains: "Article One Partners, a New York-based website, is inviting visitors to help bust patents by finding "prior art", evidence that a patented idea is not original. That can be anything from an earlier invention to a fictional machine in a newspaper cartoon. Supplying information that helps bust a patent could be rewarded with $50,000." This idea has been tried before with limited success and some skeptics fear that the rewards are no where near high enough and claim there are better ways to cure the plague of bad patents. "Ron Riley, president of the Professional Inventors Alliance, which represents independent, but commercially successful, inventors, is doubtful that Article One can improve patent quality. The way they intend to use information in some ways resembles the way patents are often wielded as a way to "earn money through litigation, not protect innovation", he says. "We need to leave the patent system alone, and fix the patent office," he told New Scientist. Fewer undeserved patents would be issued if the number of patent examiners had grown in step with the volume of work the USPTO must do, he says." PEHub : Adeo Ressi, founder and CEO of The Funded.com, sings an off-key tune a recent column, Adeo Ressi Sings Like A Canary . Much like President-elect Obama, Ressi thinks change is the key to saving the VC business. "Now, the venture capital industry faces a second major collapse in eight years without a substantive period of prosperity in between. Limited partners are pulling billions out of the model, are selling positions and may end up rejecting capital calls. It seems logical that this may be the right time to re-examine many of the underlying principles of how venture capital operates to improve an important and broken service of capitalizing growing businesses. It also seems logical that all of the venture capital stakeholders, from entrepreneurs to limited partners, should be involved in a dialog about how to improve the state of affairs." Ressi has been the subject of a flurry of media attention after his Harvard Business School presentation excoriating the venture capital model of funding and seems to be weathering the blizzard of criticism with aplomb. TechCrunch.com : Mike Masnick crafts a tale worthy of a quick read chronicling the path to financial ruin based on a never-ending succession of easy "marks" in a recent posting, Suckers And Transparency: Preventing Another Financial Crisis . Masnick writes, "The more I read about and understand different aspects of the current financial crisis, the more it becomes clear that basically the same thing happened here, but just on a much, much larger scale. It was a giant game of hot potato, where folks were passing along toxic assets looking for the last sucker to take them -- except the process of finding that last sucker became so valuable, that many of the firms in the business of finding new bigger suckers... found themselves. In many cases, the suckers were, in fact, unsophisticated investors like the school districts we described recently, but the various banks got so tied up in the process that they started betting on these things themselves." When selling an addictive and deadly intoxicant (fraudulent, high interest derivative financial instruments like CDOs), it's all fun and games until the dealers start snorting the goods, nu? The piece provokes many interesting comments and if an understanding of the house of cards that was (is?) in the process of tumbling down is the goal, should be on the short list. | |||
| [ Back ] | |||
| Greenbox To Unite Utilities And Technology For Efficient Energy Use | |||
| Written by Anthony Dale Kuhn | |||
| ArsTechnica.com : As energy prices continue to increase, consumers are looking for ways to reduce their consumption of their major energy costs, including automobile fuel and household electricity. Enter Greenbox, a company that aims to help utilities and consumers get the best possible bang for their buck with a comprehensive set of cost-metering tools. Glenn Fleischmann reports: "The goal of the Greenbox system is to pair actual usage with utility pricing in an understandable way. The company's system handles all manner of electrical pricing, whether static, with a fixed rate for a month or for tiers of usage; dynamic, where the price can change at multiple points during a day based on demand in the spot-power market; or zoned, where different times of day have fixed rates to promote peak shaving, or offsetting use during periods of highest demand." With lower costs on the relatively fixed expense of electricity, businesses should be able to put their money to work elsewhere in their ventures for more expansion and increased profitability. Read Greenbox: saving power and cash in a flash for more shocking energy-savings. Also from ArsTechnica.com comes news of the necessity for businesses to start looking at efficiency as the way to survive in a Darwinian environment, that is to say, one where only the fittest survive. Part of that fitness is to reduce costs as much as possible and once again, reviewing the details and focusing on ROI could bear a rich harvest of rewards. John Timmer reports from the EPA Climate Leaders meeting: "[S]peaker after speaker emphasized how well efficiency was working for their company on a financial basis. Perhaps the most compelling version of it came from Michael Mollnar of Cummins, which manufactures heavy equipment. Describing efficiency efforts, he said, 'it's almost embarrassing what some of these returns are, because we never looked at these things'—he then went on to name returns in the area of 300 percent for some projects. Referring to the frequent description of efficiency projects as 'low hanging fruit,' he described the inefficiencies at Cummins as, 'fruit that's sitting on the floor, that you're stepping on.'" To learn more about harvesting some of this windfall, be sure to read Financial crisis puts focus on efficiency, not green power . infochachkie.com : "Uncle Saul" has a top-notch primer on the benefits of using debt to fund your startup activities that explains in exemplary fashion the ins-and-outs of this potentially tricky but very useful method. "Venture debt can also work to a company’s advantage in its early stages. Rather than seeking Angel or venture capital funds, a company might be well served to initially raise a convertible debt round. These debt funds can be used to prove the company’s business model, finish a prototype, close the first customers, etc. Achieving one or more of these key milestones will increase the company’s value, lower its risk profile and thus make it a more qualified candidate for equity funding. You can also reduce the dilutive impact on the founding shareholders by using venture debt to enhance your adVenture’s valuation prior to taking on equity funding." Who said debt was a bad, four-letter word when in fact, if properly handled, it could be the lifeline your company needs to get things rolling in short order! All the inside info can be found in Venture Debt - The Other Green Money . Better Explained : For most uninitiated to the world of higher finance, leverage can be a confusing and confounding subject, but with a bit of clear writing to help explain the concept, Kalid Azad can help. From his topical post, Azad pulls back the clouds and reveals the power of this much-maligned tool: Leverage multiplies profits and losses: You can make a “regular” investment swing as wildly as you like by borrowing money. Return = leverage ratio * percent change: A meager 10x gearing ratio can double your money with a 10% gain, or wipe you out with a 10% loss. By the end of a crisis, some banks increased their leverage ratio to 30:1 — if prices fell even 3% they would be wiped out! Leverage appears everywhere: Companies have debt/equity ratios (how levered they are) and stock portfolios have beta (riskiness beyond the market average, which is increased by debt). Whenever you see debt or investment, look to see if it’s leveraged in some way. Azad also presents some common-sense examples in layman's terms that should pad out his primer on how leverage works and why it can be used for both good, and bad, purposes. Read Understanding Debt, Risk and Leverage for the rest of the story. PEHub : Connie Loizos has a piece on the shady securities trading by billionaire Mark Cuban that could get him in hot water with the authorities. "The SEC alleges that Cuban sold his 6% stake in Canadian-based Internet search company Mamma.com in 2004, after being told by management that it was going to announce a PIPE financing. According to the SEC, Cuban, who has called PIPE financings 'a huge red flag,' almost immediately called his broker and told him to sell his entire 6 percent stake in Mamma.com – despite that the company’s announcement hadn’t yet been made public. That call saved Cuban more than $750,000, says the government. The day after Mamma.com went public with its plans, shares in the company dropped by 9 percent." Could we see another Martha Stewart-esque celebrity court case complete with paparazzi and a tracking bracelet or is this just a mis-guided attempt to throw the book at a successful entrepreneur by some angry bureaucrat? Find out more in Mark Cuban in Serious Trouble: SEC Files Insider Trading Charges Against Him. | |||
| [ Back ] | |||
| Venture Capitalists Suffer From "An Excess Of Optimism" | |||
| Written by Anthony Dale Kuhn | |||
| ValleyWag.com : What's causing venture capitalism to appear less and less attractive to investors? Owen Thomas thinks he might know the answer: "The problem has been an excess of optimism. To a bullish venture capitalist, every investment looks like it might be the next Google; to a pension fund manager, every VC firm might be the next Kleiner Perkins or Sequoia Capital. That optimism has been turned from liquid cash into illiquid hope, to the tune of billions of dollars." Adeo Ressi, he of the controversial VC-rating website, TheFunded.com , agrees with this sentiment and suggests that "[v]enture capitalists are clubby, insular, and unimaginative, passing up 9 out of 10 deserving companies. And as a result, hundreds of their funds return no money to investors[.]" Not such a good deal, after all! Check out Why venture capital won't save your job for other insider musings on the decline of venture capital. Entrepreneur.com : That old Dale Carnegie chestnut about a person's favorite word still rings true these days and there are always opportunities to network with your fellow Earthlings and put some of the tenets of "How To Make Friends..." to use for great benefit. Jessica Chen offers some suggestions on how and where to approach potential business contacts with a special focus on the other party's interests. Chen writes, "[N]o matter what the occasion--whether you're at the yoga studio, your child's soccer game or at a religious event--networking is possible." With a step-by-step guide to help lead the way, Alternative Places to Network should help maximize your daily "down-time" by teaching the methods to make the most of every social situation. VentureBeat.com : Dean Takahashi has some sad news regarding the deaths of some Silicon Valley workers after a fired colleague came back to extract a pound of flesh, or two, from his ex-officemates, Dirty Harry-style. "A layoff at a tech firm apparently drove one employee over the edge on Friday. Police say a laid-off tech employee killed three people at a Santa Clara, Calif. chip company, the San Jose Mercury News reported." The killer, 47 year-old Jing Hua Wu, is now in custody and will, with luck, reap the full force of the law in his prosecution. What a terrible event and one that's sure to send ripples thought the tightly-knit tech community. Read Layoff prompts killings at Silicon Valley tech firm for Tahakashi's piece, which includes a news release by SiPort, the company where the shooting took place. O'Reilly Radar : Tim O'Reilly presents A Critical Choice Regarding Innovation in response to the growing difficulty of "working on what counts." O'Reilly writes on the dichotomy of this mission, "[J]ust give people want they want, leading us deeper into a consumer culture whose very financial fabric is wearing thin, or seek out big, hard problems that other people take for granted as unsolvable, and remake the world." That O'ORielly is a proponent of remaking the world should come as no surprise, but that he is an advocate of NOT listening to customers is an interesting turn. By way of example, he notes a few famous businessmen who flew in the face of common wisdom: "The Wright brothers would never have gotten to the airplane by listening to customers; Henry Ford would never have sought to put an automobile in every household; Tim Berners-Lee would never have gotten to the World Wide Web; Jimmy Wales wouldn't have started Wikipedia; and Jack Dorsey wouldn't have started twitter[.]" InformationWeek.com : IBM's Papermaster is countersuing IBM, it would seem. From Paul McDougall's coverage of this interesting case: "Papermaster is asking the court to declare his noncompete deal with IBM invalid and to release him to work for Apple. Also Thursday, the court ordered IBM to post a $3 million bond to cover any costs or lost wages incurred by Papermaster if IBM does not prevail in the lawsuit, which is ongoing." Papermaster claims his work at Apple in no way violates the spirit of the non-compete contract he signed with IBM as Apple is in the consumer products biz, whereas IBM is in the enterprise business services one. More of this developing story in Revenge Of The Papermaster: Apple Exec Countersues IBM . | |||
| [ Back ] | |||
| Jeffrey Phillips on Innovation: "Think like a farmer, act like a hunter." | |||
| Written by Anthony Dale Kuhn | |||
| Innovate on Purpose : How should one approach a new innovation program? What kind of methods will result in the best possible use of your valuable resource and time? Jeffrey Phillips has a suggestion for one way to pursue the elusive prey: "Think like a farmer, act like a hunter. Farmers place the seeds in the ground and groom the soil, patiently waiting for the crop to bear fruit. They understand the cycles and the seasons. They realize a corn crop will take six months to grow, and in the off season they till the soil to prepare the next crop. Hunters are opportunists. They spot the game and shot what's in front of them, when it's available. Innovators need to groom their cultures and grow their ideas like farmers and implement those ideas when the opportunities are right like hunters. Without the farming, there's no ready stock of ideas in the pipeline. Without the hunter, there's no recognition of the opportunity." Phillips' combinatorial approach allows for an abundance of possibilities and recognizes that a solitary focus on farming or hunting might not provide adequate idea sustenance for a successful innovation diet. Read more in Working with an innovation consultant part 2 . PEHub.com : Sovereign wealth funds (SWFs) are feeling a bit blue these days, what with the disappearance of billions of dollars in invested monies, and they are not shy about pointing the smoking gun in the general direction of the United States, according to a recent report. Erin Griffith writes, "According to panelists at The Deal’s 2009 PE Outlook Conference, the SWFs have retreated, licking their wounds, from further investments in U.S. firms, companies and funds. They’re shifting their focuses back to domestic investing. And it’s not just a temporary bout on the sidelines. There’s a fundamental shift going on in the way they deploy their capital, the panelists said. Fortunately, that’s not necessarily a bad thing." To find out the silver lining of this darkening storm cloud, read the complete piece here . The Money Alert : Every business starts with a number of initial, critical choices, which are only the beginning of the millions to be made down the line, and one of those decisions is what kind of legal business model will best provide the necessary guidelines to steer the ship out of harbor safely and into deeper waters. For a quick and easy way to see all the "which one should I chose?" options for a business, check out this chart . InfoChachkie : Who says you can't build a better mouse? Two intrepid entrepreneurs struck out bravely into the unknown with the goal of starting their own simple business to learn the ways of the world first hand. And, as luck would have it, they wrote a book about it, too! Uncle Saul reviews this worthy tome, The Mouse Driver Chronicles, and gives it a fairly hearty thumb's up. Saul opens up his piece with a bit of background on this dynamic duo: "During the spring of 1999, John Lusk and Kyle Harrison turned their backs on the traditional path taken by most Wharton MBAs. Instead of accepting high-paying positions with an investment bank, consulting firm or Dumb Dot Com, John and Kyle decided to launch a startup based upon a simple, pedestrian product." The product in question is a computer mouse shaped like the head of a golf club, and so the adventure begins. You can read more of the review, Driving The Mouse , or simply head on over to Amazon.com and purchase a copy to read and make your own determinations. Knowledge At Wharton : Just because the economy is tanking is no reason at all not to try to reach out to luxury goods-consuming rich people, people! I realize how crazy that sounds, but the idea is not mine, believe you me. A panel of esteemed experts came up with this zany suggestion to help keep high-end companies in the black even as the rest of the country is drowning in a sea of red ink. The "shop until you drop" proponents included Cori Galpern, worldwide marketing and advertising director for Tom Ford International, and Brad Farrell, skincare brand manager for L'Oréal Paris. Farrell said, "'We don't want to see huge price cuts that will create a lower-priced brand, [t]hat's because you don't want to tarnish your brand. When this is all said and done, you still have your brand reputation to uphold.'" Brand reputation above all! To learn more about eating cake, or maybe fiddling 'round the flames, read Luxury Brands: Marketing the Upscale During a Downturn . | |||
| [ Back ] | |||
| Cultural Sensitivity In China Leads To Business Success | |||
| Written by Anthony Dale Kuhn | |||
| Entrepreneur.com : As China continues its steamroller plan to dominate the world market, learning how to do business with potential Chinese partners is more and more important. Luckily, Joanne Yao has prepared a guide for making the most of your interactions while brokering deals in the Far East without stepping on too many cultural land mines. 3 Ways To Kill A Deal In China can help anyone looking to avoid faux pas in the sometimes confusing and perplexing ways of doing things, but focuses specifically on standard practices and how to conduct meetings and social outings with an eye towards understanding the hows and whys of banquets, negotiations, and gift-giving. A link to a portable Chinese business guide is is included in the article to tuck in your pocket for your next trip to the Orient. PEHub : Connie Loizos gives us a second round of venture capitalist interview goodness in her recent piece, Q&A with David Weiden of Khosla Ventures . Vinod is probably busy trying to keep on top of the rapidly changing clean-tech investment environment, so Weiden can serve as a good opportunity to see what things looks like from another partner's view. Loizos hones in on a subject matter of much discussion amongst VCs and startups: deal flow. Q: "How many deals a year do you do, and have you slowed down the pace in the last couple of months?" A: "I was doing five a year and next year, I’ll probably do another five. But overall, absolutely things are slowing down a lot. People’s styles are different. There are deals I wouldn’t have done before, and now they just won’t happen. They won’t close. So overall venture spending is pulling way back. But we’re sort of an unusual group because we’re investing our own money, so we were always a little more careful with our own dollars." A-ha! That old chestnut about spending one's own money vs. OPM (other people's money) rings true once again. I wonder if the bank bailout chiefs consider the funds they are using "OPM", or their very own? Seeing Both Sides : Jeff Bussgang takes a moment to consider what's really at stake in the upcoming installment of a new President and what that will mean for venture capitalists in his recent post, Trust the VC (Famous Last Words?) Bussgang focuses on that most slippery of commodities, trust, and proposes to lift that sacred bond back to higher heights. "Restoring trust in our economy and government for Americans and the broader world community is a monumental task for President-elect Obama. We VCs have the (admittedly smaller but still critical) task of navigating these tough times by demonstrating to our two major customers - our entrepreneur and our investors - that we are worthy of their trust." The trust that once glued together investors and investees has dissolved, resulting in a crash reminiscent of Humpty's and it is only that same paste that will put things back together again. ArsTechnica.com : John Timmer visits a new approach to an old problem in his From the News Desk article, Fair use group comes up with classroom copyright primer . The primer, in summation, suggests a broadening of what is considered fair use: "In general, the document advises that faculty has broad abilities to use copyrighted material in educational materials, "including books, workbooks, podcasts, DVD compilations, videos, Web sites, and other materials designed for learning." But it goes beyond what might be expected, as it argues that curriculum materials that incorporate copyrighted works can be sold, provided that accomplishes an educational purpose. Students are given broad leeway for the use of copyrighted works in assignments but, provided their work is sufficiently transformative, the guidelines argue that they should also be able to perform or distribute their assignments in any context, including online." Whether or not these changes meet acceptance or resistance, bringing laws into alignment with common practice might be easier than trying to police rules that are both unenforceable and overly-restrictive. Thoughts? IndustryWeek.com : Kraft Foods has a new plan for innovation and it's name is open collaboration. Jill Jusko reports: "By its own analysis, Kraft Foods holds 2.2% of all food-related patents. The percentage may be surprising, given that Kraft is one of the largest global food and beverage companies, employing more than 100,000 people and some 2,000 scientists and engineers. To Kraft, however, the percentage tells a different tale. It says many good ideas for food innovation exist outside its four walls. 'We recognize that we don't know everything,' explains Nanako Mura, associate program director, open innovation, at Kraft Foods." Ah, humility and the fruits it bears! By using the best from all of its vendor relationships, Kraft can capitalize on those business connections and spend more energy on what it does best: manufacture foodstuff. Is there a lesson here for all businesses? Maybe "Do what you know best, and outsource the rest." Read the cleverly-titled Kraft Crafts an Open Innovation Strategy for more information on this open outsourcing success story. | |||
| [ Back ] | |||
| Cleantech Cars Need Private, Not Federal, Funding | |||
| Written by Anthony Dale Kuhn | |||
| Energy Policy Blog : Stephen Stoft's Venture Capital and Energy Innovation enlists aid from numerous sources to help explain how venture capitalists manage to stay alive in the ever-changingcleantech energy business, despite problems with funding, governmental or otherwise. Stoft quotes famous VC Vinod Khosla on the difference between Federal and private investment in the emerging electric car sector: "Taking risk with your own money, which venture capitalists do, is much better talked through than the risk that government will take. They [government officials] listen to pundits and pontificate without understanding the technology." Khosla surely knows that of which he speaks with millions invested in various green technologies and a track record of success to back up his thoughts. The principle problem with the government getting involved in any business venture is that it is not nimble, nor "hungry" enough to take the kind of risks and invest the amount of lifeblood necessary to truly bring about a revolutionary change in the way cars are fueled. Plus, the Feds are spending our money and there's not much pain associated with losing it for those that made poor choices! dBusinessNews : The recent ruling on In re Bilski continues to astound and amaze experts from all corners and John Harris, a Partner in the intellectual property practice at Morris, Manning & Martin, LLP, and a patent attorney, is no exception. Patent Decision Means Tough Times for Many Tech Companies, Attorney Says takes us inside Harris' thought process on what the case means, or doesn't mean: "There’s an old saying that the best ideas are stolen,” says John Harris, a Partner in the intellectual property practice at Morris, Manning & Martin, LLP, and a patent attorney for over 28 years. “This ruling makes it easier for some good ideas to be stolen, because process patents will be harder to get. Unless companies that specialize in data processing technologies immediately examine and adjust their patents and patenting strategies, their competitors can start using their ideas." Harris also recommends companies review their intellectual property policies and existing patent portfolios for possible changes due to the Bilski ruling, "ASAP." PEHub : Dave McClure, entrepreneur, venture capitalist, and general geek about town in Silicon Valley is the subject of a quick interview by Connie Loizos wherein the constant reader learns about the latest Startup2Startup dinner in Palo Alto, California. An excerpt from the piece about a topic of conversation at Dave's dinner table at the meetup: "I think there was probably cautious optimism around Facebook at our table. The current trendy opinion is that the bloom is off the rose, but I personally can’t see how you can look at a 100 percent or greater annual growth and not think that’s a great thing, even if they’re upside down on infrastructure costs. Monetization is very good from what I understand and if they figure out better models in the future, they’ll be very, very profitable." For more, read the rest here . OpenForum.com : Guy Kawasaki recently penned a piece on the benefits of literature in the medical practice, and by proxy, business practice that should give English majors a glimmer of hope for future returns on their liberal arts degree. Kawasaki gives one instance of the unexpected results of reading finely-crafted words: "For example, for over a year at Saint Barnabus Medical Center, a doctor named Richard S. Panush has been incorporating literary discussions into his internal medicine residents’ daily rounds. This includes a daily routine in which he and his colleagues discuss poetry, short stories, and essays with their residents in the context of their patients. As a result, they found significantly better scores on patient evaluations of residents and of quality of life." The residents also tended to touch the patients more, explain what was happening during the course of treatment, and generally acted more human after a dose of high-falutin' reading matter. Literature and Narrative Management also includes a book reference that provides deeper inquiry into this interesting development. BusinessPundit.com : Ryan hits the proverbial nail on the head with his 10 Money Saving Tools For Small Business piece as entrepreneurs struggle to keep the balance books in the black by any means possible. Why not try some of these free ways to keep your startup going? Here's just one way you can use the power of the Internet to make things easier and cheaper: "Paying a technician for every little thing that goes wrong was the expensive but only way for small businesses that don’t have in-house tech support. Now you have an alternative: a brilliant site called Tech Support Guy. It’s filled with technology prodigies who are willing to offer their help for free. I’ve used Tech Guy’s assistance for so many different things - from office printer issues to my rebellious iPod. The answers you find in their forums are so professional it’s really hard to believe there’s no money involved." Check out the Tech Guy site for yourself here and start using "free" to your benefit. | |||
| [ Back ] | |||
| Adapting Copyrights to the Culture... Or the Other Way Around? | |||
| Written by Anthony Dale Kuhn | |||
| ArsTechnica.com : Culture and copyright are on a collision course as the Internet makes it much easier to share media with friends and family but also increases the chances that such a transaction is "breaking the law." Julian Sanchez visits this timely topic in his recent Law & Disorder article, A few thoughts on copyright and culture , and posits that there needs to be a new re-working of the concepts and legal ramifications associated with casual copying for social reasons. Sanchez writes, "Suppose, just for the sake of argument, that the nightmare scenarios of the MPAA are all dead on: Absent draconian action, online movie piracy will run rampant, no better business model for the film industry will emerge, and big-budget, mass-market blockbusters will become economically infeasible to produce, because studios will have no prospects of recouping such massive investments. The amount of new movie content of this type is reduced, though what does exist is more widely available to large numbers of people at low (or no) cost." Would this be a bad thing? Content is available to more consumers at a lower cost and the possible profits go up due to simple economic mathematics. Or...? "Is there anybody out there?" to borrow a lyric from Pink Floyd. Anyone at all? MIT : For a fascinating read on the "Aha!" phenomenon and how insights play out in the brain at an electrical level, be sure to read The Eureka Hunt (*.pdf link), by Jonah Lehrer from the New Yorker magazine. Why is this process important to the small business owner? Because many times, innovations do not come from plodding analysis or dogged research, but rather by some slippery machinations of the "wetware" of the mind and by understanding these pivotal moments, ideas and creativity can be more easily accessed to create new and useful methods of pursuing goals. That's why! In addition, this particular article also features some real-life examples of unexpected insight in action that help liven up the somewhat dry, scientific feel that the pervades the piece. BusinessWeek.com : The election of Barack Obama as the next President of the US has many people excited at the prospect of change and possibility, and small business owners number among those hopefuls. Gene Marks, CPA and owner of the Marks Group, takes a moment to point out the impacts of a Obama's new plan for taxes. Marks writes on taking the prudent route to continuing business success, "Smart business owners will recognize as much income as possible this year before potential new tax laws take effect. That means, depending whether you're on cash or accrual basis, getting as many invoices legally out the door and/or as much cash in the door as you can. These savvy business owners will also be finding ways to distribute income over the next few years. Think paying family members at lower rates, bartering, deferring income, and shifting profits overseas. Smart business owners will be lined up outside their accountant's door already, planning these strategies for 2009 and beyond." For the rest of Marks' thoughts on being tax savvy in the coming new year, read How Entrepreneurs Can Profit with Obama . Locus Magazine : Cory Doctorow has a wonderful read on the copyright vs. culture debate in a recent piece, Why I Copyfight . Doctorow points out that the Internet is an inherent copyright infringing technology and that if copying is a crime, then the the whole 21st century model of technological sharing and the democratization of information is a limitless source of criminal activity, intentional or otherwise. But should cyber-chatting around the virtual watercooler be a crime? "Copyright law valorizes copying as a rare and noteworthy event. On the Internet, copying is automatic, massive, instantaneous, free, and constant. Clip a Dilbert cartoon and stick it on your office door and you're not violating copyright. Take a picture of your office door and put it on your homepage so that the same co-workers can see it, and you've violated copyright law, and since copyright law treats copying as such a rarified activity, it assesses penalties that run to the hundreds of thousands of dollars for each act of infringement." Is this reasonable? Would the moron-in-a-hurry think it was a crime to take a picture of a newspaper clipping and post it on your online bulletin board? Food for thought. | |||
| [ Back ] | |||
| Humility Can Help Venture Capitalists In Tough Financial Times | |||
| Written by Anthony Dale Kuhn | |||
| VC Confidential : For an insightful read into how humility can help business, investors, and venture capitalists weather stormy markets, check out James Montier's recent Societe Generale piece, An admission of ignorance: a humble approach to investing (*.pdf link). From Montier's short missive: I fear that somewhere there exists a secret school (a Hogwarts for brokers and investment managers) whose first rule is that one should ever admit ignorance, and where any semblance of humility is surgically removed. However, if one can accept that you can’t and don’t know everything (or even very much at all) then a number of insights into investment start to flow. For instance it makes no sense to forecast, the margin of safety becomes central as a buffer against ignorance/error, market timing should be eschewed, and finally cheap insurance should be sought out. Humility should be central in the investment process. To find out the secret to a unpretentious approach to the finicky world of finance simply follow Montier's advice and know that sometimes humble pie is a dish served warm and tasty. Internet Biz Tax Tips : Kristine McKinley takes a point-by-point look at how President-elect Obama's tax plans will affect small business owners in a topical post . A somewhat significant tax change would be certainly welcome for many entrepreneurs: "Health Care Tax Credits. Obama’s health plan centers around tax credits that, together with his other proposals to expand pooling options and ease enrollment, will ensure that health insurance is available and affordable for all families." McKinley comments on this credit: "I can’t believe I’m admitting this, but when I first started my business, I did not have health insurance. I chose to go without for about six months while I worked to build my business. I’m not alone in this regard; I know many, many self employed individuals (and families) who don’t have health insurance because it’s just too expensive to purchase it on their own (another employer sponsored benefit given up to pursue the American Dream). So, while I’m a little concerned about 'expanding pooling options' and some of the other changes that have been discussed, I’m all for a tax credit that would make health insurance more affordable for those who don’t have it through an employer." Any help to take the specter of health problems off the shoulders of those inclined to "go it alone" and start their own gig would certainly be welcome and help them to more aggressively fund their efforts if this change is enacted. Forbes.com : A column by George Gilder discusses the increasing value of creativity in a rapidly stagnating and declining world economy with a special focus on how businesses will be affected by the coming changes - post-bubble. Gilder writes, "The real source of all growth is human creativity and entrepreneurship, which always comes as a surprise to us, especially in the worst of times..." and although the current meltdown might not qualify as one of those times for some, it certainly has plenty of investors and dependent businesses spooked. But Gilder sees a return to the "good old times" in the not-to-distant future: "Because the U.S. remains the world's largest economy and still leads the world in business and technological creativity, the current crisis is mostly confined to boondoggles of finance. It will pass rapidly and evolve into a new boom. Emerging is a parallel unregulated financial system based on entrepreneurial creativity and invention." For more on what's in store for this system and the creatives behind the helm of this new ship to prosperity, read The Coming Creativity Boom . The Guardian : In a welcome bit of innovation/technology news, John Vidal and Nick Rosen report on a confirmed plan to build and install small-sized nuclear reactors that can power 10,000 homes in the next few years, starting in, of all places, Romania. John Deal, chief executive of Hyperion, whose company is licensing the technology for the new power plants from the Los Alamos lab in the US, gives us further details : "The first confirmed order came from TES, a Czech infrastructure company specialising in water plants and power plants. 'They ordered six units and optioned a further 12. We are very sure of their capability to purchase,' said Deal. The first one, he said, would be installed in Romania. 'We now have a six-year waiting list. We are in talks with developers in the Cayman Islands, Panama and the Bahamas.'" The plants have no moving parts, no weapons-grade fuel and will be buried in the earth after being delivered on the back of a semi-tractor trailer. Is this the brave, new world of cheap energy or just another environmental disaster waiting to happen? VentureBeat.com : Apple Computer had great hopes when it poached IBM's microprocessor guru, Mark Papermaster, but a District Court judge has put a kibosh on the move. MG Siegler reports, "The transition from departing iPod chief Tony Fadell to new vice president of Devices Hardware Engineering Mark Papermaster is not going to an easy one for Apple. A U.S. District Court judge ruled yesterday that Papermaster would have to cease work immediately for Apple while allegations of a breach of contract with his former employer, IBM, is looked into..." Our old friend the Non-compete contract appears to be rearing its ugly head, and this time there's no likely way to avoid complying with it. Check out the rest of the story in Judge to Apple’s Papermaster: Thou shalt not work . | |||
| [ Back ] | |||
| Small Changes In Business Processes Can Have Large Results | |||
| Written by Anthony Dale Kuhn | |||
| FutureLab.net : As recently covered in September's McKinsey Quarterly, small changes effectively integrated into almost any process can reap huge benefits in short order. John Caddell explains how one example in the report follows this principle: "Its central point, illustrated by the Institute for Healthcare Improvement's campaign to save 100,000 unnecessary hospital deaths, is that the best innovations are often the simplest and most basic. In other words, a partial solution that is easy to communicate and to implement may bring far more value than a more complete solution that is more complex and difficult to bring into production." Such small and simple changes might include the use of checklists to ensure medical staff follow basic sanitation practices, which has proven to be invaluable in reducing the incidence of hospital-induced illnesses (and related deaths). The practice of following a set sequence of procedures to regulate the human capacity for error has shown itself to be an absolute necessity in other fields of critical path decision trees like piloting aircraft or running nuclear reactors. Does your business incorporate small, easy-to-implement changes to its methods? Scope out Innovation Made Easy... or Else and feel free to post any comments on this idea or add to the discussion. ArsTechnica.com : The DVR (digital video recorder) has become a staple in tech-savvy homes of TV enthusiasts as it allows watching broadcast television shows when, and sometimes where, -ever the viewer chooses with the added benefit of being able to fast-forward through advertisements. Cablevision had high hopes of being able to implement its own version of this technology, although instead of using a set-top box that recorded shows on a local hard drive, the Cablevision model used remote servers to stream shows to subscribers on demand in a kind of remote control DVR system. This use of DVR technology raised the hackles of content owners and has spawned a number of lawsuits claiming infringement. Nate Anderson reports on the outcome of the primary case: "Cablevision won in court this summer, as an appeals court found little functional difference between the system and a traditional DVR set up. Cablevision still requires customers to select shows for recording, rather than simply recording everything on a television and offering it up to users on-demand. As for the copies made in the act of buffering, the court found that a one second buffer did not meet an undefined 'duration requirement,' and it said that the temporary copies of video created in this way did not infringe on copyright." This judgment seems to have not satisfied a number of concerned parties and additional actions have been taken by some unlikely sources. Read Copyright Alliance to Supremes: hit rewind on networked DVR for the inside scoop on the players. PEHub.com : As predicted, some fallout is already occurring in the venture capital business, with one industry heavy reporting large losses. Dan Primack's Blackstone Posts $502 Million Loss tells more of this torrid tale: "The firm reported a Q3 loss of $502.5 million, compared to a $299.2 million gain in Q3 of last year. This included -$68.3 million for its private equity portfolio, which was mostly attributed to a reduction in the carrying value of its portfolio companies. It also deployed about 35% less limited partner capital." In a prepared statement, Blackstone explains: "We are operating in a challenging and volatile environment. As evidenced in the third quarter, global equity and credit markets have declined substantially and we have lowered the carrying value of our fund investments. However, Blackstone has set up its businesses to not only weather such an environment, but to benefit from it. Given Blackstone’s strong balance sheet, scale and breadth of business and continued strong investment performance, we believe that the current market dislocations will alter the competitive landscape, position our firm to enhance our market position and enhance long term unitholder value." We'll see if the Group's strategic plan holds water in the coming months/years! The Metric System : Numbers and data creep into almost any discussion of business and marketing with heavy emphasis placed on the interpretation of these figures as proof positive of success. Robert J. Moore writes about his quest to unearth the business behind a seemingly un-profitable proliferation of dating lawn signs in the neighborhoods around his home town and after after performing a private eye-style investigation into the matter, comes to a fascinating conclusion. Read Moore's lengthy, but very insightful, narrative on his hunt for the story behind an unlikely-business model in Single? Lawn Signs Conquer the American Landscape . Xconomy - Seattle : Business method patents are all over the headlines of intellectual property (IP) blogs and with good reason. Of special note is the court case known as Bilski , which ended in a ruling that has turned the value of many companies' IP holdings head-over-heels. Gregory T. Huang reports on recent details of related legal action surrounding the contentious patent ruling: "Last Thursday, the U.S. Court of Appeals for the Federal Circuit rejected a patent application from a company called WeatherWise for a method of managing the risk involved with energy costs. The court ruled that in order to be patentable, a process must be tied to a 'machine or apparatus, or transform a particular article into a different state or thing.' That means abstract processes known as 'business methods' can no longer be patented. A classic example of a patented software business method is Amazon’s one-click process for on-line purchases." One CTO, Bill Baxter of Seattle-based startup Cozi, gives his opinion on the ruling's impact on patents: "'The patent process in the U.S. is broken,' he says. 'Too often patents are issued that should not be. It’s a great business if you’re a patent attorney or if you’re a company who creates nothing, just acquires patents and then litigates to create a business. I’m happy each time what is patentable is narrowed. The whole system requires an overhaul.'" More on this sea-change in patentability in Ruling to Block “Business Method” Patents May Spur Innovation, Say Entrepreneurs and Investors . And for a bit of Friday Fun, check out this innovative and mind-blowing new application for the Apple iPhone from Smule.com : the Ocarina . See it in video action here. | |||
| [ Back ] | |||
| Highlights: President-elect Obama's Policies On Intellectual Property and Technology | |||
| Written by Anthony Dale Kuhn | |||
| PatentBaristas.com : President-elect Barack Obama and his Vice President, Joe Biden, plan to make many changes during the next 4 years, some of them more difficult than others to enact, but according to a timely post by Stephen Albainy-Jenei, the duo are very pro-science/technology with strong statements to back up this leaning. In What Will The New Administration Bring to Patents and Technology? Albainy-Jenei lists the incoming administration's policies on these important areas with encouraging news on intellectual property, the fight against piracy, and a firm promise to increase both R&D funding and the pursuit of scientifically-sound advice when making legislative decisions. Here's just one example of the what the future holds for US patent and IP efforts abroad and at home: "Protect American Intellectual Property Abroad: The Motion Picture Association of America estimates that in 2005, more than nine of every 10 DVDs sold in China were illegal copies. The U.S. Trade Representative said 80 percent of all counterfeit products seized at U.S. borders still come from China. Barack Obama and Joe Biden will work to ensure intellectual property is protected in foreign markets, and promote greater cooperation on international standards that allow our technologies to compete everywhere." Hear, hear and "Yes, we can!" YesToMe.com : Sometimes inspiration comes from unlikely sources, in this case, an interview with entrepreneur and life coach Tom Volkar courtesy of Akemi Gaines. YesToMe is a bit new-agey and healing crystal-ish, but that doesn't keep it from hitting a homerun with a encouraging bit of reporting. Coaching The Freedom Of Self-Employment: Tom Volkar highlights Volkar's journey from working stiff to self-employed small businessman with the requisite hard times and hard-fought victories that come in a classic tale of Horatio Algier-esque struggle. Takeaway: "I totally agree with the importance of authenticity! I also like his advice on how to choose the supports and advice with care. The moral encouragement from friends and family is nice, but if they are not entrepreneurs themselves, do take it with a grain of salt. That kind of free advice can cost you a lot in terms of your time or missed opportunities. So thank them with grace, and find other entrepreneurs and real pros for advice." Be sure to read the entire interview (it's quite compact!) for more wisdom on how one startup managed to navigate the rocky waters of going it alone. Gizmodo.com : Gimmick or 21st-Century technology at its finest? The holographic interviews conducted by CNN on Election Day 2008 might appear on the surface to be a bit showy or even creepy, but they were, without much question, a technology tour-de-force that pushes the limits of current computer ability and paves the way for three-dimensional television. Get all the details in How the CNN Holographic Interview System Works and be prepared for more holographic interaction in the near future. What's next, "Beam me up, Scotty?" DigitalNomads : Business people travel a lot in pursuit of the next deal or while making routine sales calls, but often times this puts sensitive and critical data at risk due to the high incidence of laptop theft where travelers tend to frequent. Think rental cars, hotel rooms and airports; prime places for thieves to spirit away your favorite road warrior lappie, data and all. The good folks at DigitalNomads suggest you take the advice of the CIA and protect one of your business' most valuable resources with a multi-step program to ensure your data remains secure and inaccessible to prying eyes. A tip to get you started on your laptop security program: "[D]igital nomads must be careful about which networks they use to transmit data. Open Wi-Fi access points might seem to be a handy bargain, but they have also been used to gain access to sensitive data. Hotel and corporate guest networks can also be used in this manner. It is better to rely on 3G modems which are harder to snoop. One should also always use VPN software or secure web sites when dealing with sensitive data." If you are not already implementing these measures, the sooner the better. Read The CIA Model for Digital Nomads by Stephen Foskett for additional ways to keep your bits and bytes in order. Entrepreneur.com : Non-profits are one of many ways to pursue your goals of changing the world as a business owner. There are numerous legalities to keep in mind, however, before you make the jump from for-profit to not-for-profit, and Jeffrey Steinberger, veteran trial attorney and the founder and senior partner of The Law Offices of Jeffrey W. Steinberger, has some excellent information on what a non-profit is, exactly, and what it means to do business as one in Can I Operate my Business as a Non-Profit? From Steinberger's article: "[A] non-profit is an organization that has no owners and that has as its purpose the promotion, advancement and achievement of a specific mission. Like a business, a non-profit can take the form of a corporation or an unincorporated group of persons banded together to achieve their mission. The missions of non-profits can be as varied as the human experience. For example, non-profits are formed to advance local, national or international missions such as charitable work, disease prevention, humanitarian relief and environment goals. Non-profits also can be as simple as a group of concerned citizens who want to fund a neighborhood watch or parents who have bake sales, car washes, or pancake breakfasts to earn money to finance their children's little league teams or scout troops." There are some examples of non-profit organizations that are a bit more complicated than bake sale fund-raising, so be sure to read the entire piece for at least a basic primer on non-profits and at best, a road map to achieving your mission. | |||
| [ Back ] | |||
| Mother Nature Innovates: Rain Forest Fungus Digests Plants, Synthesizes Diesel | |||
| Written by Anthony Dale Kuhn | |||
| Wired.com : Sometimes one need only to look to Mother Nature for an elegant solution to a difficult technical problem. A recent discovery by a plant expert with a bit of wanderlust could very well revolutionize the process of fueling our planes, trains and automobiles as highlighted in Alexis Madrigal's topical piece, Rainforest Fungus Naturally Synthesizes Diesel . "A fungus that lives inside trees in the Patagonian rain forest naturally makes a mix of hydrocarbons that bears a striking resemblance to diesel, biologists announced today. And the fungus can grow on cellulose, a major component of tree trunks, blades of grass and stalks that is the most abundant carbon-based plant material on Earth." This particular fungus was first identified by Dr. Gary Strobel, a plant scientist at Montana State University, and although it holds hope for a future with less reliance on processed oil, Strobel admits, "Its ultimate value may reside in the genes/enzymes that control hydrocarbon production, and our paper is a necessary first step that may lead to development programmes to make this a commercial venture." Five Years Too Late : Eric Wiesen, Venture Capitalist at RRE Ventures in New York City, discusses the ugly truth behind one startup pitcher's honest assessment of his company's projected profitability path in The Truth, or What We Want to Hear? Wiesen's intro explains the problem: "Years ago, when I was a Silicon Valley lawyer, a VC client related an amusing anecdote about being pitched by early-stage companies (I know, VC jokes are always the funniest). The observation he made was that every startup, regardless of sector, business model or average sale price has the same 5-year revenue projection: $50 million, plus or minus a few. The reason, he explained, was that if the 5-year number is much lower than $50M, the VCs won’t be interested, and if it’s much higher than $50M the VCs won’t believe the projections." And simply put, that's the truth. Despite the model case's solid plan, good pitch, and accurate profit projections, Wiesen passes on the deal due to the low number ($100M) for an exit and the longish time-frame suggested by the startup entrepreneur during the pitch. Sad, but true, indeed. SpringWise.com : As the holidays approach, WrapRage , or the extreme difficulties experienced when trying to release gifts from their daunting, and sometimes dangerous, packaging will return as an unwanted partner to giving and getting. Amazon.com is going to do something to combat this foe of consumption by partnering with some of its top retailers to change some packaging materials and methods. "Thanks to a new, multi-year global initiative announced yesterday, Amazon is working with manufacturers to eliminate the causes of Wrap Rage while also minimizing the impact of packaging on the environment. The effort is focusing first on two kinds of items: those enclosed in hard plastic cases known as 'clamshells' and those secured with plastic-coated wire ties, commonly used in toy packaging. As a result, 19 best-selling products are now available through Amazon in the US packaged in smaller, easy-to-open and recyclable cardboard boxes that protect the products within just as well, the company says." What's not to like about that? And if it can help holiday battle-scarred gift veterans purchase more products, the shareholders will love it, too. Read Frustration-free packaging to unwrap the rest of the story. BusinessWeek.com : Most people have encountered the "I am a human" test when signing up for a service or joining a website, also known as a "Captcha," but many do not know that the inventor of this test is using the algorithm behind the technology to help transcribe the archives of the entire New York Times. Jessie Scanlon features said inventor in a recent piece, Profile: Luis von Ahn , and reveals the story behind this visionary inventor's quest to use Captchas for the betterment of mankind and computers. "Von Ahn's breakthrough technology—the Captcha, developed with his thesis advisor Manuel Blum in 2000—is used by 60,000 sites including Yahoo (YHOO), Facebook, and Ticketmaster (TKTM) to verify that the entity filling out a Web registration form is a person rather than a bot. Has a Web site ever presented you with a distorted word and asked you to retype it? That's a Captcha. 'Within five years, about 200 million Captchas were being typed everyday,' says von Ahn. 'And I started to feel bad, because each one was wasting 10 seconds of someone's time.' Von Ahn wondered how those seconds could be used to do something valuable, and, in 2007, he introduced ReCaptcha, which draws its random words from the Internet Archive's book digitization project and, until the job is completed late next year, from The New York Times archive." Von Ahn hopes the NY Times project will be completed by late 2009 and continues to use this insights into "human computation" for innovative applications. The New York Times : The layers of connections and complexities in the global financial system continue to reveal how seemingly far-away events are having local impacts of the most unwelcome kind. The privatization of retirement accounts created a circumstance wherein people and organizations invested in a wide variety of faddish instruments, including so-called AAA collateralized debt obligations, or C.D.O.s, and as the mortgage/debt pyramid scheme unraveled, so have many working people's hopes of being able to stop working before they die. Police forces in England stand to lose millions of pounds Sterling due to the crash of the banking system in Iceland, which is directly related to the tiny country's investments in derivative financial schemes with hopes of garnering greater returns for the effort. All this was also aided and abetted by the rather new practice of extreme and legal under-capitalization of banks, which sometimes were leveraged 30 times or more over their cash-on-hand reserves. Pair that with variable-rate mortgages to people without the means to pay and the additive nature of investments based on those monthly payments means national bailouts, recessions/depression in many countries, and high unemployment in the months, or years, to come. OK, then. Off the soapbox! Read From Midwest to M.T.A., Pain From Global Gamble for a real life story of this ticking time bomb which finally exploded. | |||
| [ Back ] | |||
| Rofo.com Helps Startups Reduce Real Estate Costs | |||
| Written by Anthony Dale Kuhn | |||
| GigaOm.com : Many businesses are cutting costs in hopes of staying afloat longer than the competition but there is one area where savings can be made that is often overlooked: paying rent! Alan Bernier posted a guest piece, 8 Ways to Hack Your Office Lease for Cash , that lays out some ways you can squeeze your rent for what could end up being a significant amount. For example, "7. Consider a buildout. If a landlord offers an allowance to build out a space to your specs, take the time to get a construction bid. Make the landlord pay for the estimate. Be sure the allowance can be used for architects, construction management, your moving expenses and data wiring. Most landlords draw the line at furniture and fixtures, but ask for it." You don't know if you don't ask, but don't expect every landlord to be amenable to your cost-cutting ideas. Bernier also has created a real estate resource for startups, Rofo.com , which should help you find the best space for the lowest cost, which in these times of reduced credit should act as a kind of bottom-line multiplier. Entrepreneur.com : Neuromarketing is becoming more and more accessible to smaller businesses these days and some hold the truths behind the revelations of customer brain scans to be unreliable while others swear that by tapping into the limbic, lizard reactions of our primal gray matter, they can actually see the subconscious underpinnings that really determine why we buy what. Roger Dooley, of Neuromarketing.com and Dooley Direct, is one of the persons of note in Dennis Romero's Targeted Marketing Gets Intelligent . A few Dooley gems: "If someone asks why you purchased a particular car, scotch or soft drink, you would have a rational answer, but your brain is processing that information below the level of consciousness." And this one, "Neuromarketing," he says, "could help companies achieve those visionary breakthroughs." Join in the discussion over the potential for neuromarketing to revolutionize the study of human purchasing behavior and how best to take advantage of the data gained through its practice by reading the piece and leaving a comment on this blog. Also from Entrepreneur.com , an interesting article on Lessons Learned at 'Harvard for Losers' that lifts up the spirits with its tale of second-chances and criminals turned doctor, lawyer or even cop. "Imagine a place where former drug addicts, ex-convicts and the homeless can go to find housing, employment and education. When they leave for the "real world" again, they've learned the skills to become successful attorneys, doctors, and yes, even cops. It may sound like a pipe dream, but it’s not. It's called the Delancey Street Foundation, a place founder Mimi Silbert has dubbed the 'Harvard for Losers.'" The Delancey Street Foundation started out in 1971 with a $1000 loan and an idea to change the rehabilitation model for recently-released felons. Since then, it has grown into a multi-regional operation that continues to have great success and relies on its charges to make the process work. "Silbert's organization, which operates five residential facilities in San Francisco, Los Angeles, New York, New Mexico, and North Carolina, employs no staff, charges no fees, and receives no government aid." Maybe there's the potential for a kind of franchise opportunity if you have plenty of patience, believe in the goodness of your fellow man, and are willing to put your trust in those who need it most. TechDirt.com : Time for another episode of the Can A Moron In A Hurry Tell The Difference Between A Hershey Bar And A Couch? show, courtesy of Mike Masnick. From the Michigan branch of truth is stranger than fiction facts: "[A] judge has ordered a furniture store to stop using a design that shows a couch being unwrapped from a candy bar. Hershey's sued the furniture company, claiming it violated their trademark on unwrapping chocolate bars[.]" Masnick points out the judge''s own admission that there is no real basis for copyright infringement, but decides to put the kibosh on the whole "sofa-as-candybar-being-unwrapped" advertising campaign that hasn't even actually started yet. Where will the insanity end? VentureBeat.com : Chris Morrison lays out the good news for concentrating photovoltaic solar panel (CPV) startup SolFocus in a recent piece . Morrison explains the tech behind this emerging cleantech trend: "CPVs [are] a type of solar power in which sunlight is focused by lenses or mirrors onto a small, highly efficient solar cell. Although other forms of solar power — notably solar thermal, in which focused sunlight turns water to steam — have landed deals running into the billions of dollars, this is the biggest single investment that CPV has received to date, by a significant margin. The technology is typically considered less proven than solar thermal and regular solar panels." However, due to the lower costs associated with focusing mirrors versus the complex and costly process of making highly-efficient photovoltaic panels, SolFocus stands poised to capture a significant portion of the CPV market with a recent round of funding at $103 million. Morrison calls this move, "a major first step for seeing the technology become a big renewable energy player" and we can look for SolFocus to continue to make progress in its homeland, Spain, in the months ahead. | |||
| [ Back ] | |||
| Telsa Motors' CEO Elon Musk Personally Guarantees Roadster Production | |||
| Written by Anthony Dale Kuhn | |||
| Cnet News : Tesla Motors hasn't escaped the execution's axe in the latest round of job cuts and venture capital pull-outs, but recently appointed CEO Elon Musk seems to be pleased with the way things are shaping up for the builder of the much anticipated Tesla Roadster. Martin LaMonica puts together some details of the company's fortunes for us. "Musk, who become wealthy after selling PayPal to eBay, said that he will personally ensure that all Roadsters on order will be delivered. So far, 60 customers have received them, out of more than 1,000 orders. To finance construction of its corporate headquarters and Model S manufacturing plant, Tesla intends to secure government-backed loans worth $200 million." With a reported 9 million dollars in cash, things would appear a bit slim financially for the company, which also just closed down some of its R & D operations and has had a significant number of executive officer changes in recent months. To date, the car has suffered from transmission troubles and production delays, but if the cars are actually delivered, it could bolster confidence in the market for electric sports cars. Tesla Motors seeks cash to keep moving forward for the rest of the story. NewsGuide.us : OK. So maybe it seems a bit like an ad, but an article featuring a non-disposable, American-made product deserves a little press and since small businesses often need to find innovative ways to compete, why not do so with a premium, guaranteed winter car accessory? Enter the IceDozer! "Winter can be lovely, except when you find it all over your windshield. Sure, common sense tells you that you need complete visibility, but it's cold, the kids are complaining or you're running late for an important appointment. There's no end to excuses for wanting to avoid the loathsome task of scraping ice and snow from the windshield. That's why the IceDozer was invented. With its patented FlexiBlade™ (which automatically adjusts to the curvature of any windshield), ergonomic grip and triple attack surfaces, the scientifically designed IceDozer® makes quick work of windshield ice." The idea is to reduce the landfill waste that results from cheap, throwaway imported ice scrapers, cut down on the carbon footprint by not shipping materials back-and-forth across the oceans to an off-shore manufacturing location, and make cleaning off your icy, snow-covered windshield that much less heinous. Read Innovation Factory Bucks the Trend for more on this mean, clean de-icing machine. People In Passing : Exciting news for those with an entrepreneurial spirit but more ideas than machinery who happen to live in Portland, Oregon! TechShop is coming to town: "TechShop’s goal is to remedy this situation for the 300 or so potential members that came to the opening event. TechShop plans to have milling machines, lathes, welders, a laser cutter, an electronics shop, blacksmithing tools, a finishing room, workstations, a 3D printer, and of course the coveted CNC router. Along with all of this equipment there will be a tool and materials shop, a small library and a communal kitchen." There is a membership cost associated with using the gadgets at the TechShop, but it will give small businesses and inventors access to high-tech tools and a community of like-minded folks to help them make their ideas become reality. For more on the TechShop, check out the post . ClimateArk.org : Innovation can cause great things to happen, but who would have guessed that it might have enabled mankind to leave the cradle of civilization and populate the world? "Innovation--not climate change--may have triggered early humans' migration out of Africa, a new study suggests. For early Homo sapiens, periods of population movement coincided with social advances and tool-making innovation, the work found. By contrast, human movements didn't match as closely with changes in Africa's climate, such as rainfall variation or other weather issues, as previous research had suggested. The study authors caution, however, that their work doesn't suggest a specific cause-and-effect relationship." The information comes courtesy of the National Geographic organization and leads us to believe that it was doing old things in new ways which led to the mass migrations from the sunny savannas of the African continent to the colder and more demanding locations to the North. More on this unexpected application of innovation with monumental consequences in Innovation Linked to Human Migration Out of Africa . PEHub.com : The current economic market might not seem to be the ideal time for someone to take on a multi-million dollar business idea, but that's not stopping one intrepid entrepreneur. Connie Loizos reports: "David Knight is either crazy like a fox, or just plain crazy. As the country moves inexorably toward the worst recession in roughly 20 years, Knight is gambling on a big idea, literally. Think 40-foot-wide, 22-foot-high HDTV screens — the largest LED screens ever produced — for which his company is paying $1.5 million a pop." Knight plans to tow the screens around with semi-tractors and set them up at large, outdoor events, which he will then use to display video of the action and advertising, which should boost his bottom line. Knight says, "It’s like Google contextual relevancy outdoors," and if his success is anything like that of the Mountain View, California search giant, Big Moving Pictures will be a huge hit with audiences and advertisers everywhere. More details on the out-sized innovation in A Big Idea Looks to Get Green-Lighted . | |||
| [ Back ] | |||
| Tribalism Dictates Who We Are And What We Do (And Buy!) | |||
| Written by Anthony Dale Kuhn | |||
| Summation : Auren Hoffman presents a convincing argument that we are all the sum of our interactions with the people we surround ourselves with which, in turn, influences many of the major decisions we make in our day-to-day lives. These influences also run to things like shopping choices, self-image and happiness, which should come as no great surprise. We form our own personal tribes and shape our image in light of those around us, reinforcing and strengthening ties through mimicry and by filtering out those things that don't speak to us. In his blog post, You Think For Yourself but You Act Like Your Friends [homophily] , Hoffman highlights the concept of homophily, which is "the tendency to associate with people similar to you and the people you associate with tend to act like you over time (and vice-versa)." We can see examples of this behavior in our daily exchanges with those around us, such as the practice of "mirroring." Knowledge is power and the takeaway from this piece is: "The best way to deal with homophily is to understand how you are impacted by it and to hack your life and make adjustments accordingly. To inoculate yourself politically, for instance, start considering the "other side" of the political isle. If you are in San Francisco (84% Democratic), you might want to read the Wall Street Journal editorials every day. Similarly, if you are in the back countries of Alabama (70% Republican) you should read the editorials of the New York Times every day. Don’t let yourself be blindly led by those you know." You can do the same thing with your mood, shopping choices and food consumption now that you know the secret! BBC News : People in the United Kingdom who don't even know what peer-to-peer software is or who haven't ever played a video game are getting notices in the mail suggesting that they pay a fee for illegal downloads of copyrighted software or face legal action from the company that owns the program in question. Such is the case of Gill and Ken Murdoch : "In the case of the Murdochs, a letter was sent giving them the chance to pay £500 compensation or face a court case. Gill Murdoch and her husband, aged 54 and 66 respectively, told Which: 'We do not have, and have never had, any computer game or sharing software. We did not even know what 'peer to peer' was until we received the letter.' The case has now been dropped by Atari, although the firm is yet to comment on the reasons why." There are at least 70 other confirmed cases of mistaken piracy claims, based on the physical address of a given Internet Protocol (IP) number, with possibly hundreds more unreported instances. That's just not fair cricket, sending Grandma and Grandpa a mean-spirited and threatening letter demanding payment or else, who might be confused and act out of fear of legal action by paying a fine they don't deserve. Get a grip, Atari, and research things a bit better before letting loose the dogs of war! Xconomy - San Diego : How's this for a catchy article title? Grim San Diego Panel Urges Venture Community and Entrepreneurs to Get Realistic . Does that get your attention? moderator Carl Eibl, a managing director at San Diego’s Enterprise Partners Venture Capital, lets the first grenade fly: "'You cannot tolerate people who are not producing. You have got to rank your employees and do what’s necessary.' At the same time, Eibl observed that layoffs taking place throughout the economy provide an opportunity to recruit extraordinarily talented people." So there is some light at the end of the dark, and long tunnel, it would seem. Other experts from the world of startups and venture capital weighed in with their thoughts on how things will look in the coming months and years with the overall mood being sombre and realistic. Cuts, shrinkage, and belt-tightening are the order of the day. Wired.com : One way to help cut down on costs is to allow your workers to do their thing at home, as opposed to having all the overhead and infrastructure necessary to house them all in an old-fashioned cube farm. Brendan I. Koerner takes a long, hard look at the many benefits telecommuting can provide for businesses of almost any size in his recent piece, Home Sweet Office: Telecommute Good for Business, Employees, and Planet . Koerner writes, "That might sound a bit radical to those who swear by the office's supposed benefits, like camaraderie and face-to-face collaboration. But time and again, studies have shown that telecommuters are every bit as engaged as their cubicle-bound brethren — and happier and more productive to boot. Last year, researchers from Penn State analyzed 46 studies of telecommuting conducted over two decades and covering almost 13,000 employees. Their sweeping inquiry concluded that working from home has "favorable effects on perceived autonomy, work-family conflict, job satisfaction, performance, turnover intent, and stress." The only demonstrable drawback is a slight fraying of the relationships between telecommuters and their colleagues back at headquarters — largely because of jealousy on the part of the latter group. That's the first problem you solve when you kill your office." Go ahead. Make the move to telecommuting and never look back. Your employees, and your bottom line, will thank you in the profitable years to come! BusinessWeek.com : GM looks to join the ranks of failed American automobile manufacturers in the near future, but there are hopes that its new electric/gasoline hybrid car, the Volt, can help rescue the once proud company from the dustbin of ignominy. Author Matt Vella visits General Motors' design director Bob Boniface and details a proud walk-through of the car's sleek exterior, high mileage and 21st Century interior. "[T]he Volt is essentially a plug-in electric car with an onboard gas-burning engine that can recharge the vehicle's batteries. This enables the Volt to travel some 40 miles before the driver turns on the gas. Because most daily commuters in the U.S. don't travel that far, GM says many drivers will not have to use any fuel at all, simply recharging the vehicle via a regular outlet at home overnight. GM is still wrangling with the Environmental Protection Agency over the vehicle's efficiency, but executives say the final number should be north of 100 mpg for both types of power." GM has high hopes that a return to the fuel-efficient cars that were popular before the advent of the SUV and Hummer-sized megatrucks will help it gain market share and a return to profitability. Read Can the Chevy Volt Save GM? for more on the great, electric future of GM. | |||
| [ Back ] | |||
| Herman Miller Continues Its Quest To Dominate The Furniture Biz | |||
| Written by Anthony Dale Kuhn | |||
| Innovation Playground : The Herman Miller story has graced these pages in previous posts, but its worth revisiting the company's on-going campaign to unseat all other office furniture makers with creativity, sharing and premium-priced chairs. Idris Mootee is a big fan "not only about their chairs but also their corporate culture and management capability" so he recently composed a piece featuring CEO Brian Walker's thoughts on what makes Herman Miller such a force to be reckoned with in the cube farm biz. "The central thing that we've learned is a willingness to follow and give ourselves over to these designers-not lose ourselves, but be open to following them to places that we may question in the beginning. We give our creative network an outline of a perceived problem and let them share their insights as to whether we're on the right path and then enable them to bring their own gifts to the search for a solution. We follow them in their journey without judging too quickly. One of the hardest things to do is not to judge too quickly, based on the first physical appearance of something. Instead, we try to understand the essence of what they're describing in physical form, written form or sketches." This "creative network" includes outside sources that increase HM's chances of striking the perfect balance of design, materials, and cost of production for its very popular line of ergonomic chairs. Read Herman Miller's Next Innovation Is In Clinics And Hospitals. How About The Aeron Wheelchair? for the rest of the story. Vcorp Services : Global Entrepreneurship Week is coming soon and what are YOU going to do to celebrate? UnleashingIdeas.org is sponsoring the event, which takes place during the week or Nov. 17-23, with hopes of encouraging would-be business owners to attend any number of events as detailed in a timely post by the good people at Vcorp Sevices in 10 Cool Things to Do During Global Entrepreneurship Week . For starters, here's one that could be interesting: "By Kids for Kids (BKFK) is encouraging young innovators to clean out their lockers. BKFK inspires young entrepreneurs to create and share their ideas, and often transforms outstanding ideas into commercial products where the young people earn self-esteem, business experience and royalties. As part of the program, BKFK provides Idea Lockers, a private online space where teens can create, develop, store and share their ideas." What's bad about feeling good, earning money and learning about the world of business? Knowledge At Wharton : With the Christmas shopping season just around the corner, there are justifiable concerns that consumers will not be spending with the credit cards like they have in years past, with even the steadiest of luxury goods purveyors wondering if the crunch will hit them this time around. From Pajamas and Popcorn: Retailers Face a Less-than-Festive Holiday Shopping Season : "[L]uxury retailers are no longer immune to the jitters that have plagued other retailers in past spending troughs. Carl Steidtmann, chief economist at Deloitte Research, says that in recent years, luxury retailers had been able to sustain strong growth by developing new entry-level brands and products to draw in "aspirational" shoppers with lower incomes than traditional customers. Now those aspirational spenders who helped support high-end retailers in recent years are more susceptible to the economic downdraft than long-time clientele. Luxury retailers are no longer "bulletproof," he says." Nieman Marcus' line of extravagant Christmas gifts now includes pajamas and popcorn, albeit at the 100 dollar price range, and is a sure sign that even those with a few million in the bank are feeling the pinch of the economic downturn. VentureBeat - Mobile/Comm : Maybe what everyone needs is an inexpensive netbook to fulfill their holiday tech shopping needs? VentureBeat's Dean Takahashi features HP's entry in the crowded netbook market in his review of the HP MIni 1000 family of computers. "The models are targeted at 'information snackers,' or people who want to get on the Internet, quickly and easily. They include mobile professionals, media enthusiasts, and 'fashion-forward women.' The 'ultra portable' computers are less than an inch thick and weigh 2.25 pounds. Yet the keyboards are almost full size, at 92 percent of the typical keyboard size." There is also a very sleek and beautiful Vivienne Tam version that looks like a clutch-style purse and has the Chinese symbol for "double happiness" on the keyboard. Price for this tiny, light and eye-catching netbook ranges from $379.99 for the Linux version to $699.99 for the Vivienne Tam model. ArsTechnica.com : Ten years in, the Digital Millenium Copyright Act (DMCA), what does the world of piracy and DVD-ripping look like? John Timmer thinks that there are some positive, but mostly negative effects from the DMCA's loose definitions of infringement and its Draconion anti-circumvention provisions and he details those failings in A decade of the DMCA: keep the Safe Harbor, ditch the rest . Timmer writes, "...[T]he big loser here has been the public. As more devices gain the ability to handle music and video—I can think of five different device classes that handle one or the other lying around my (quite small) apartment right now—consumers have found the DMCA is a hurdle that keeps them from having the content they own available on the device of their choosing. Want to watch a DVD movie on an iPhone? Good luck; software that allows you to do so violates the DMCA. Sophisticated users know how to find the software that does what they want, but the average consumer is stuck with lots of formats and protection schemes, and no guarantee that they'll be able to get the content they own where they want it." One might conclude that the anti-circumvention part of the DMCA encourages piracy because people want to watch "their" copy of a movie or listen to a song when and where they please, and not have to purchase another copy to be able to use the file on a separate digital gadget. | |||
| [ Back ] | |||
| Change.org: A New Fund-raising Philosophy For Non-Profit Businesses | |||
| Written by Anthony Dale Kuhn | |||
| Change.org : Non-profit businesses can be innovative, entrepreneurial, and small but that doesn't mean that they have an easy time reaching some of their goals, one of which stands out from the others as the most difficult to sell. And that's fundraising. Asking people for money to fund a change that needs to happen is never easy, and getting rejected is at best disheartening, and at its worst, devastating. Nathaniel Whittemore, founding Director of the Center for Global Engagement at Northwestern University, features some thoughts on changing not only the world, but offers a new way to look at the job of fund-raising at a non-profit in Brilliant: "In Defense of Raising Money: A Manifesto for Nonprofit CEOs" with some help from Sasha Dichter, the Director of Business Development for the Acumen Fund. A takeaway passage to get you interested on a new fund-raising pitch ideology: "How about this instead: 'You are incredibly good at making money. I’m incredibly good at making change. The change I want to make in the world, unfortunately, does not itself generate much money. But man oh man does it make change. It’s a hugely important change. And what I know about making this change is as good and as important as what you know about making money. So let’s divide and conquer – you keep on making money, I’ll keep on making change. And if you can lend some of your smarts to the change I’m trying to make, well that’s even better. But most of the time, we both keep on doing what we’re best at, and if we keep on working together the world will be a better place.'" Each person gets what they want/need and continues to do what they do best, be it making money or effecting important change. I wholly recommend you read the entire post for yourself as it contains many paradigm-shifting ideas. Innovate On Purpose : What did Ginger Rogers, famous dance partner and star in her own right, know about business innovation that you don't? Jeffrey Phillips looks into why doing things "backwards and in high heels" makes all the different in his recent blog post, Gaining a different perspective . Phillips writes, "[T]o innovate one must obtain a fresh perspective, a new insight. Imagine if you will taking Ginger Roger's role in those famous musicals. She had to trust her partner to lead her in directions she couldn't see, and match his moves while moving in an uncomfortable direction and gait in shoes that had to have been uncomfortable. That has a lot of parallels for innovators - moving into spaces we aren't quite sure about, being led by our customers and markets in uncomfortable directions using methods and techniques that perhaps we aren't expert in, to end up in a completely new place." And a new place is just where many struggling businesses hope to find themselves as the economy continues to unwind and winnow out the chaff from the seed. Neuroscience Marketing : Roger Dooley peeks under the kilt of Google's latest round of neuromarketing research in his ghoulishly-titled Now Google Wants Our Brains but ends up embracing the search giant's efforts to take a zombie-sized bite out of the public's gray matter. Dooley quotes the results of Google's recently commissioned study: "In a study released Thursday, Google and MediaVest used NeuroFocus findings to show that overlay ads appearing in YouTube videos grab consumers’ attention and boost brand awareness…To that end, the NeuroFocus research conducted in May looked at the reactions of 40 people to YouTube InVideo overlay and companion banner ads from a cross-section of MediaVest advertising clients…The study revealed that viewers found overlays 'compelling and engaging,' generating high attention and emotional engagement levels across different brands and types of video. On a one to 10 scale, the ads scored a 6.6 in effectiveness, which is considered showing 'a high effect.'" Those are the kinds of numbers needed to sell billions of dollars' worth of YouTube InVideo overlay ad spots and although the proof will be in the pudding, the report predicts success. Small Business Answers : The question What Does Success Mean? is an important touchstone for many businesses and Stoney deGeyter tackles this nebulous concept in his thought-provoking and comprehensive look at defining success. deGeyter carves up the idea of success into a number of complementary and contrasting pieces with the sum of the whole being more than its parts. By that, I mean that while each individual instance of an angle of success might only provide a small slice of the overall, when taken together, deGeyter's many views of success create a complete ecosphere of the concept. Here's an example of success that will ring true for many small business owners: "Success means...Maintaining your integrity when faced with temptation. There are many who find success that have no integrity whatsoever. But that kind of success is usually both fleeting and unsatisfying. Integrity helps build success that is more than just being about fame or money, but about knowing that what you do has purpose and value to others. There are many temptations on the path to success. A little lie here, a little cheating there. They are often so small and so easy to to think, 'what's the harm.' But maintaining rigid integrity is essential to find purposeful, life fulfilling success. And make no mistake, sometimes maintaining your integrity means going against every fiber of your natural inclinations. It's not always about being right, but about doing what is right." There's only one person you have to face in the mirror each morning, and as the questionable business ethics of some powerful politicians (The dis-Honorable Senator from Alaska comes to mind) highlight the need for integrity, this 10-minute read should put you firmly on the path to your own success. Innoblog : A new innovation in the electrolysis of water might make the storage of solar energy much more efficient and affordable, according to Tim Huse's New Discovery Enables Simple, Inexpensive, and Efficient Storage of Solar Power . Huse reports on this technological coup by MIT chemistry professor Daniel Nocera and post-doc Matthew Kanan: "While the electrolysis of water is a well-known process, it has traditionally been expensive due to reliance on noble metals and the inefficiencies of oxygen extraction in non-benign environments. The new catalyst that extracts oxygen consists of cobalt and phosphate covering a conducting material such as glass or graphite. These materials are widely available and thus cheap. Placed in water, cobalt and phosphate ions form a thin film on the electrode when a positive potential is applied and produce oxygen gas. The new catalyst works well in neutral water at room temperature and under normal atmospheric pressure – in contrast to the traditional industrial water electrolysis process. The solution looks to create precisely the benign, inexpensive, and easy-to-set-up environment preferable for at-home use." The gases would be recombined during times of solar energy ebb in fuel cells that could power homes and businesses without adverse environmental impact or reliance on far-away sources for stable supply. And if this news isn't enough to get your excited, check out this quote: "James Barber, professor of biochemistry at Imperial College London, gushes: 'This is a major discovery with enormous implications for the future prosperity of humankind. The importance of their discovery cannot be overstated since it opens up the door for developing new technologies for energy production thus reducing our dependence for fossil fuels and addressing the global climate change problem.'" | |||
| [ Back ] | |||
| New Import/Export Laws Adversely Affect Small Businesses | |||
| Written by Anthony Dale Kuhn | |||
| Entrepreneur.com : Tom Travis, managing partner of Sandler, Travis & Rosenberg, P.A., a leading international trade and customs law firm, recently penned a piece highlighting some changes in US laws that could adversely affect businesses that deal in the import/export business. Travis writes, "Two new laws affecting importing and exporting enacted this summer impose some of the most burdensome requirements American importers have faced in years. While the intent of these two measures is noble enough--improving protections against unsafe consumer goods and preventing the illegal logging that's devastating a number of developing countries--the way they're being implemented is changing the way importers structure their operations and deal with the federal government. And the first deadlines for complying with the new rules are approaching quickly." To learn more about these laws and how to stay on the good side of them, read New Rules, New Headaches for Importers . Extremepreneur : Remember that very memorable scene of Slim Pickins riding the nuclear bomb down to Russian soil from the apocalyptic movie, Dr. Strangelove ? Well, one blogger has it that there is something to love about the recent bombing of the world financial scene, much in the way that Slim learned to love the bomb. William Volk, gaming industry expert and serial entrepreneur, details such a situation in his timely post, How I Learned to Stop Worrying and Love the Crash . Volk details the tale of two similar startups with a focus on Apple iPhone applications and shows how a smart venture business can still make it in today's tough market through cost cutting, quality product, and an eye on cash flow. Getting past the beginning of a new business might be more difficult these days, but a good solid idea is still just that and there is, and will be, money for these types of unflappable ideas. Los Angeles Times : Let's all shed a tear for the unfortunate, and increasingly depressed, Wall Street wives who have had to cut down their indulgent, properly-capitalistic spending in these difficult times. I mean, come on now, they've had to cut back on maid service, McMansion size, and meals out, people! And, horror of horrors, some have even resorted to discount toilet paper to make ends meet; "the scratchy stuff," if you can believe such deprivation is not against the tenets of the Geneva Convention. This is devastating and important! At least the sympathetic author of a purporting piece of journalism entitled Wall Street wives had the richer, now they're a bit poorer thinks so. So, break out your tissues and shed a tear or two in the name of those poor, little rich wives who are suffering like the common man. You are using "the scratchy stuff" these days, aren't you? The Huffington Post : News of the on-going fraud perpetrated by large businesses on the US taxpayer-funded small business Federal contract system has taken a new turn, according to Lloyd Chapman in his recent article dated October 27th, 2008. Chapman lays out the scene: "Since 2003, over a dozen federal investigations have found billions of dollars in federal contracts earmarked for middle class firms have been diverted to Fortune 500 companies. A recent story in the Washington Post found over 40 percent of government small business contracts actually went to Fortune 500 firms. Even though the diversion of government small business contracts was first exposed in 2002, Congress has not passed a single piece of legislation to address the problem." What follows is a comprehensive and possibly controversial list of ways that this multi-billion dollar problem could be addressed, although some of them are sacred cows and would be difficult to enact. For example, the no-compete Alaska Native Program, which allows huge government contracts to be awarded without the proper bidding process to a very small and inordinately powerful group. The list is worth reading, if only to get a better send of the injustice and scope of the fraudulent Federal contract system. SFGate.com : Two entrepreneurs hope their business can weather the economic downturn through its inexpensive startup funding model, and if current successes are any mark of what the future holds for the San Mateo-based investment firm. Author Deborah Gage reports on Tandem Entrepreneurs, with their modest office furnishings as a background. "The amount of money Tandem invests in startups is also small - around $850,000 - and it only takes on as many companies as the three founders can comfortably handle. Right now, they're working with five startups that all have a good chance of making it on their own with no additional funding, Renert said. Tandem has raised $15 million and has no plans to raise more money soon.Much of what Tandem provides for its companies is sweat equity. While the startups' founders - many of them engineers, some recently out of college - work on building products, Renert, Bhargava and Wijaya are the marketing team, the technology advisers, the deal makers and whatever else is needed." Small, agile and basic are three terms that describe Tandem Entrepreneurs and because of this, the firm stands poised to capitalize on shrinking credit and the many smaller companies that will fall between the cracks in the "large exit "strata of venture investing. | |||
| [ Back ] | |||
| SFGate: Zeppelin Re-enters Service Via Californian Small Business | |||
| Written by Anthony Dale Kuhn | |||
| SFGate - Home of the San Fransisco Chronicle : Innovation is still innovation, even if it's 70+ years old. After a ride aloft in one of history's most memorable air disasters, the zeppelin, Brian Hall, a software entrepreneur, decided America needed some rigid airships of their own to fly the skies around sunny, funny California. "Starting Friday, Airship Ventures will begin offering rides that provide a bird's-eye view of Napa and Sonoma wine country, the Big Sur coastline, San Francisco and other parts of the Bay Area. The cabin holds 12 passengers and two crew members, and tickets start at $495 per person for an one-hour ride." Have no fear, this 246-foot long Zeppelin NT (New Technology) uses helium to keep it aloft, which is not a flammable gas, so extinguish any visions of exploding Hindenburgs and the resulting carnage. The company has commissioned 2 additional zeppelins to be built which will eventually take tourists and thrill-seekers for a ride on the East Coast. More details on this buoyant business idea in Californians float a plan: Return of the zeppelin . PEHub.com : Connie Loizos interviews "The Undertaker" in a recent piece that sends shivers down the spines of startups everywhere. Also known as the 27-year-old Sherwood Partners in Palo Alto, the moniker stems from the companies job of mopping up and chopping jobs in a ruthless triage that hopes to save sinking businesses. What's the method behind this amputative madness? Sherwood co-founder Marty Pichinson tells us the bloody tale, full of sorrow and woe. "I feel very bad about this. We’ll do well but I don’t feel good. We’re not going to have a depression but this is life changing. This is everything changing. There will be new government laws. There will be new oversight. There will be new ways to do business. People talk about when the IPO market is going to open up again. You think people are going to run back to the stock market in another year or two? I don’t think so. I’ll tell you a story. I went to Costco two days ago. I like to shop. I wear Lucky jeans on the weekends. They cost me $90 at Nordstrom’s, but I found two pairs for $39 apiece at Costco. I almost bought them, but before I reached the checkout, I said to myself, I don’t need them." Even the Grim Reaper is cutting back on fancy pants, people! Read A Q&A with Silicon Valley’s "Undertaker" for the rest of the story. ArsTechnica.com : Some exciting developments are underway the field of nanophotonics, which is "research dedicated to understanding and using light on ever-smaller scales" and could revolutionize computer chips, pregnancy tests, and tumor detection. Good stuff, huh? Join Chris Lee as he takes a technical and deep journey into plasmons, the stuff that makes studying nanophotonics possible along with an interview with field expert Naomi Halas, Stanley C. Moore Professor of Electrical and Computer Engineering and Professor of Chemistry at Rice University in Sculpting light: interview with Naomi Halas, plasmon pioneer . GigaOm.com : Mike Hirshland, general partner at Polaris Venture Partners and guest columnist for Om Malik's important blog, writes on 10 Tips for Building Revenue in the Ad Recession with tips that every business can use to squeeze every last penny from their precious supply of Washingtons. To top off the list, Hirshland gets right to the meat of the matter. "1. Hug your stars. Identify your best people, and make sure they know — and feel — how valuable they truly are." This is only the most important from a list of 10 tips, so be sure to visit the site and read the rest of an industry expert's hot ad advice. Chron.com : Most of us have heard about the success pursuit and arrest of a significant number of members of the Mongol biker gang but did you know there is a trademark/IP angle to the story. Michael Doyle of the McClatchy-Tribune writes, "Uncle Sam could end up owning the name of the Mongols, a West Coast motorcycle gang accused by federal prosecutors of 'crimes and acts of violence.' Like other motorcycle outfits including the Hells Angels, the Brotherhood Nomads, the Misfits and the Wicked Women, the Mongols trademarked their name. Now, culminating a three-year undercover investigation, federal prosecutors are hoping to take that name away from them." Yikes! I would hate to be the attorney prosecuting this zinger of a trademark lawsuit (pun intended). Looks like The "Man" hopes to have yet another reason to pull over a Harley-riding motorcyclist who happens to be sporting the Mongols trademarked membership patch, as if they needed one. Full story in U.S. hoping to ride away with Mongols gang name . Sometimes truth IS stranger than fiction!a | |||
| [ Back ] | |||
| Anger Management Business Off To A Smashing Start | |||
| Written by Anthony Dale Kuhn | |||
| Springwise.com : In tough times, people often turn to strange outlets for their feelings of anger and the need to strike back at someone, or something. Enter Sarah's Smash Shack . "Customers in San Diego can choose fragile tableware from the Smash Shack Menu—for example a set of three glass flowers for USD 10, or the House Special, which consists of 15 plates at a cost of USD 45. They’re also welcome to bring in their own breakables to pulverise for a ‘corkage fee’ that starts at USD 20. After donning protective gear, smashers are escorted to one of the break rooms, where they stand behind a waist-high barrier and hurl their arsenal at a stainless steel wall. To make the process more personalised, customers are encouraged to bring their own soundtrack on MP3, and to write messages on whatever they’re about to throw. There’s also the option of flinging objects at a photo or mantra of choice. A VIP room is available for group smashes." Seems impossible that someone could make a successful business out of smashing up stuff, but maybe there are enough fed-up worker bees with a penchant for busting stuff up (Office Space, any one?) to make this work. Read the entire article for more on faux-violence anger therapy. BusinessWeek.com - Innovation: Reena Jana reports on an on-going report by New York-based architecture and design firm Gensler with a focus on the relationship between workplace satisfaction and profitability. The data suggests that when things are good for the employees, things are generally good for the business, too. Jana writes, "82% of employees of the most profitable companies said they were satisfied or highly satisfied with their offices, compared to only 43% of those who worked at companies with average profits (among the corporations represented). Companies whose employees participated in the survey rated their workplace as “highly effective” saw an average of 28% three-year profit growth. Those who rated their offices as not very effective saw only 14.4% three-year profit growth during the same period." There are other questions and answers of interest in Read it here first: Gensler’s 2008 Workplace Survey Links Office Satisfaction and Financial Performance . Also from BusinessWeek.com: The International House of Pancakes is a long-time favorite of many breakfast eaters with an eye on cost and value but with a lagging sales and out-of-date menu choices the chain found itself in need of a change. Enter former IHOP waitress, and now Chief Executive Officer Julia Stewart. Stewart took on the tough job of steering the venerable casual dining franchise back to profitability and a greater market share and made use of a number of powerful tools that any business can put to use. For starters, Stewart organized the monies needed to purchase a franchise with more responsibility on the owners instead of taking on the debt at the corporate level. "Beginning in the mid-1980s, IHOP lent entrepreneurs most of the $1.9 million it generally takes to open a new restaurant. That's an unusually enticing arrangement in the restaurant business, but it was cooked up at a time when IHOP was so poorly regarded that it had no other way to attract franchisees. It worked, too: IHOP doubled the number of its locations in the 1990s. The strategy hardly offered a sweet return on capital, though. Now, Stewart is taking a more traditional tack: Franchisees have to borrow the money somewhere else. This will mean fewer new restaurants -- perhaps 80 this year, down from 96 in 2002, she estimates. But, Stewart adds, the switch will help IHOP grow faster in the long term because it'll be leveraging other people's capital." A timely choice in light of the current credit crunch! Further details in Bringing home the bacon at IHOP? by Christopher Palmeri. TechFlash.com : Bill Gates has a new "secret" venture according to a recent article by Todd Bishop and Eric Engleman. "Public documents describe the new Gates entity -- bgC3 LLC -- as a “th | |||