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	<title>Guidewire &#187; Observations</title>
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	<link>http://guidewiregroup.com</link>
	<description>Connecting Innovation and Opportunity</description>
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		<title>The Rise of the Startup Industrial Complex?</title>
		<link>http://guidewiregroup.com/2011/09/the-rise-of-the-startup-industrial-complex/</link>
		<comments>http://guidewiregroup.com/2011/09/the-rise-of-the-startup-industrial-complex/#comments</comments>
		<pubDate>Wed, 07 Sep 2011 01:25:24 +0000</pubDate>
		<dc:creator>chrisshipley</dc:creator>
				<category><![CDATA[Entrepreneurship]]></category>
		<category><![CDATA[Guidewire Group]]></category>
		<category><![CDATA[Observations]]></category>
		<category><![CDATA[Startups]]></category>

		<guid isPermaLink="false">http://guidewiregroup.com/?p=1753</guid>
		<description><![CDATA[<p>Running a startup is like riding a monster roller coaster. You push your way through line, excited and a little nervous, maybe even scared. You talk a good game to all your friends, while secretly stealing an envious glance at some of the seemingly safer rides. As you approach the ride, all the signs warn [...]]]></description>
			<content:encoded><![CDATA[<p>Running a startup is like riding a monster roller coaster.  You push your way through line, excited and a little nervous, maybe even scared. You talk a good game to all your friends, while secretly stealing an envious glance at some of the seemingly safer rides. As you approach the ride, all the signs warn of the dangers. You must be so tall. Not advised for people with this condition or that.  You press on, strap into the car, and go for the ride of your life, climbing up until the bottom drops out, then climbing again. In a split second, the ride is over. You stagger in to the daylight, throw up, smile, and get back in line again.</p>
<p>Which is to say that being an entrepreneurial leader is  exciting, scary, relentless &#8211; and some days, the days when you don&#8217;t throw up, it&#8217;s an incredibly rewarding job.</p>
<p>It seems to me that it may have gotten a bit surreal these last few months. The global campaign for entrepreneurship has spiked a fever. Public and private programs champion the entrepreneur as the engine of the economy, yet the economy hardly supports a budding startup. Seed financing is abundant yet difficult to find.  The magnetic north that is Silicon Valley drags foreign entrepreneurs to its center even as politicians and pundits promote new business as the catalyst for emerging markets and revitilized cities.</p>
<p>A sort of Startup Industrial Complex has quickly grown up to support the business of starting businesses. Meetups and camps, seed funds and inclubators, trade missions and partnerships, media and events &#8211; all there to &#8220;help&#8221; the entrepreneur.  </p>
<p>But are they really helping?  Has all the attention on entrepreneurship shifted, even a little bit, the odds of success to the favor of the startup.  Surely, so-called super angels are making money and politicians are nailing their talking points.  Lots of people have met, camped, communed. But are they really getting what they need?  Are they now really able to build better, sustainable businesses?</p>
<p>My guess is that these programs do catalyze some businesses.  My suspicion is that they are hugely inefficient, and waste as much entrepreneurial energy and resource as they hope to create in the form of new companies.  My fear is that would-be entrepreneurs have become the fuel in a machine that creates status and capital returns for a few Startup Industrialists while leaving the entrepreneurs themselves to live in proverbial company towns working for a new digital age &#8220;Man.&#8221;</p>
<p>The irony here is that these mostly well-meaning folks really are just trying to help. Maybe, though, the best &#8220;help&#8221; is a little less help. Give entrepreneurs open, transparent access to the tools and information they need to build their business. Be candid and respectful with your feedback. Provide mentoring when they ask, and encouragement even if they don&#8217;t ask. Reach into new communities, sharing best practices and leaving some of your DNA there to encourage a new crop of entrepreneurs grow in place.</p>
<p>That&#8217;s what we&#8217;re trying to do at Guidewire Group: build an open platform and information exchange.  We are by and for entrepreneurs, creating an alternative to the Startup Industrial Complex.  We are looking for partners who share our values and commitment.  If this sounds like your kind of monster roller coaster, drop me a line. <a href="mailto:chris@guidewiregroup.com">chris@guidewiregroup.com</a>.</p>
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		<title>Ask the Wrong Question, Get Meaningless Answers</title>
		<link>http://guidewiregroup.com/2011/04/ask-the-wrong-question-get-meaningless-answers/</link>
		<comments>http://guidewiregroup.com/2011/04/ask-the-wrong-question-get-meaningless-answers/#comments</comments>
		<pubDate>Wed, 27 Apr 2011 14:00:06 +0000</pubDate>
		<dc:creator>chrisshipley</dc:creator>
				<category><![CDATA[Observations]]></category>
		<category><![CDATA[Uncategorized]]></category>

		<guid isPermaLink="false">http://guidewiregroup.com/?p=1664</guid>
		<description><![CDATA[<p>Oy.  My head is about to explode.  I&#8217;m here at the <a href="http://innovate-columbus.org" target="_blank">Innovate Columbus</a> event listening to a panel that had such wonderful potential.  David Pogue of the New York Times (and an incredibly funny moderator), Anousheh Ansari, co-founder of Prodea Systems and the first private woman space tourist, and Sarah Lacy, the infamous [...]]]></description>
			<content:encoded><![CDATA[<p>Oy.  My head is about to explode.  I&#8217;m here at the <a href="http://innovate-columbus.org" target="_blank">Innovate Columbus</a> event listening to a panel that had such wonderful potential.  David Pogue of the New York Times (and an incredibly funny moderator), Anousheh Ansari, co-founder of Prodea Systems and the first private woman space tourist, and Sarah Lacy, the infamous Silicon Valley journalist.  I met Anousheh at dinner last night and was so looking forward to hearing about her travel to the International Space Station and the audacious aspirations to make space travel available to mere mortals.</p>
<p>That&#8217;s not exactly what transpired, much to my disappointment.  I suppose it was inevitable, though, that an audience member would ask that question that makes my eyes roll like an exasperated teenager: &#8220;Why are there so few women in tech?&#8221;</p>
<p>For some seemingly interminable time, Sara, the audience member, and Anousheh (when she can shoehorn a word in) discussed the question.  Amid the not-so-veiled hypothesis that women are back-stabbing bitches who perceive all other women as competitors who must be crushed under their stiletto heels, Sara made an insightful observation.  As graduating men and women enter the job market, they are at relative parity in pay and status.  &#8221;But somewhere along the line, a choice is made. Things change.  I don&#8217;t know what it is.&#8221;</p>
<p>Really?  This from a woman who is pregnant?  I&#8217;m going to guess that the birth of that child might help identify the &#8220;choice.&#8221;</p>
<p>Which leads me to my point.  Beyond being tiresome, this relentless questioning of why not more women entrepreneurs or why not more women in tech is fundamentally the wrong question.  We should be asking why more men aren&#8217;t choosing full-time parenting.  The fact is that women stop out of their careers to raise children at a substantially greater rate than do men.  And they tend to do it at exactly the time most professionals hit the inflection point of their careers.</p>
<p>Just once, I&#8217;d like to hear a panel discuss that question.  I&#8217;d like to hear men speculate about parenting as an emasculating activity that leaves an otherwise  macho wage-earner whimpering in the locker room with as much stereotypic bull pucky as we listen to women describing each other as ruthless, hair-pulling, nail-scratching, girl-fighting wenches.</p>
<p>Really. Just once.  Can we?</p>
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		<title>The &#8220;Color&#8221; Commentary on the Cooliris Engineering Culture</title>
		<link>http://guidewiregroup.com/2011/04/the-color-commentary-on-the-cooliris-engineering-culture/</link>
		<comments>http://guidewiregroup.com/2011/04/the-color-commentary-on-the-cooliris-engineering-culture/#comments</comments>
		<pubDate>Wed, 20 Apr 2011 03:40:58 +0000</pubDate>
		<dc:creator>chrisshipley</dc:creator>
				<category><![CDATA[Entrepreneurship]]></category>
		<category><![CDATA[Observations]]></category>
		<category><![CDATA[Bill Nguyen]]></category>
		<category><![CDATA[Color]]></category>
		<category><![CDATA[cooliris]]></category>
		<category><![CDATA[UX]]></category>

		<guid isPermaLink="false">http://guidewiregroup.com/?p=1659</guid>
		<description><![CDATA[<p>Remember the iconic movie scene in which Dorothy’s black-and-white Kansas becomes Technicolor Oz?</p> <p>Life might feel a little like that for the engineers at <a href="http://www.cooliris.com" target="_blank">Cooliris</a>, watching Silicon Valley tastemakers speculate about <a href="http://www.color.com/" target="_blank">Color </a>and its $41M venture round, except that the Cooliris folks have been working in living color all along and [...]]]></description>
			<content:encoded><![CDATA[<p>Remember the iconic movie scene in which Dorothy’s black-and-white Kansas becomes Technicolor Oz?</p>
<p>Life might feel a little like that for the engineers at <a href="http://www.cooliris.com" target="_blank">Cooliris</a>, watching Silicon Valley tastemakers speculate about <a href="http://www.color.com/" target="_blank">Color </a>and its $41M venture round, except that the Cooliris folks have been working in living color all along and the rest of us are just now catching up.</p>
<p>Founded in 2006, Cooliris established itself the most prolific and avant guard graphical UX firm that you must be continually reminded of, which is to say that you’ve probably heard of CooiIris and likely used its photo wall application.  But this decidedly engineering-focused company has never been a hype machine.  Instead, it steadily created incredibly beautiful, high-performance applications, testing user appetite for media consumption and sharing, while building a robust platform for graphics-driven commerce.  The company counts more than 40 million downloads worldwide of its desktop products, and more than 23 million page views per month delivered by third-party Web sites using the Cooliris embedded photo display tools.</p>
<p>After 5 years of development focus, Cooliris is turning its attention to commercialization and marketing.  The company has developed a 3-D advertising platform for the iPad.  In partnership with InMobi, the Cooliris Immersive Ads platform transforms ordinary photos into engaging three-dimensional ad experiences. Cooliris Immersive Ads is just rolling out with some significant (soon to be announced) media partners, but early experiments suggest that the platform has the potential to drive up the value of the InMobi remnant ad inventory to levels approaching $20 CPM.</p>
<p>All of that is great, but if you’re an engineer in an engineering culture pushing the envelope of graphics technology, it’s as important to get your props from the technical community as it is to see your technology come to market.  And that’s where the Cooliris LiveShare and Deck products for iPad and smart phones platforms should come in.  They are both outstanding accomplishments of graphics manipulation and user experience.</p>
<p>These companies slipped quietly into the market at just about the time that Color announced a staggering valuation that has stumped most Valley pundits and launched a first product that has just about everyone scratching their heads. (For the record, I have no idea what secret sauce accounts for the $41M venture investment, but I’m pretty sure it’s the company’s founder and CEO Bill Nguyen.) As a competitive product, Cooliris’s LiveShare runs circles around Color.    It delivers a rich experience, intuitive and social.  Color, not so much.  At least not yet.</p>
<p>While lesser developers might be tweeked that a baffling beta is the talk of the town while the technically-superior product is, on a comparative basis, overlooked, Cooliris developers aren’t like other engineers.  They remain heads down and proud of their work.  And they know they have work to do to make a market for their products and a name for themselves.   To that end, Color may be the best thing that happens to Cooliris, at least insofar as marketing is concerned.  Color has started a conversation in the market, and Cooliris deserves its place in that discussion.</p>
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		<title>Master Class: Looking for Focus? Ask Your Customers!</title>
		<link>http://guidewiregroup.com/2011/04/master-class-looking-for-focus-ask-your-customers/</link>
		<comments>http://guidewiregroup.com/2011/04/master-class-looking-for-focus-ask-your-customers/#comments</comments>
		<pubDate>Thu, 14 Apr 2011 19:15:46 +0000</pubDate>
		<dc:creator>chrisshipley</dc:creator>
				<category><![CDATA[Business Models]]></category>
		<category><![CDATA[Entrepreneurship]]></category>
		<category><![CDATA[Observations]]></category>
		<category><![CDATA[Startups]]></category>
		<category><![CDATA[business plans]]></category>
		<category><![CDATA[Judi Clark]]></category>
		<category><![CDATA[ManyMedia]]></category>
		<category><![CDATA[startup fail]]></category>
		<category><![CDATA[Steve Larsen]]></category>

		<guid isPermaLink="false">http://guidewiregroup.com/?p=1654</guid>
		<description><![CDATA[<p><a href="http://www.linkedin.com/profile/view?id=15597&#38;authType=name&#38;authToken=qfGw&#38;trk=tyah" target="_blank">Steve Larsen</a> is an entrepreneur’s entrepreneur.  By his own admission, he’s not the “world’s greatest CEO” or even the “idea guy” of young businesses.  But by my observation, he is among the most willing among experienced executives and entrepreneurs to share his experience with those who have yet to cut their startup teeth.  [...]]]></description>
			<content:encoded><![CDATA[<p><a href="http://www.linkedin.com/profile/view?id=15597&amp;authType=name&amp;authToken=qfGw&amp;trk=tyah" target="_blank">Steve Larsen</a> is an entrepreneur’s entrepreneur.  By his own admission, he’s not the “world’s greatest CEO” or even the “idea guy” of young businesses.  But by my observation, he is among the most willing among experienced executives and entrepreneurs to share his experience with those who have yet to cut their startup teeth.  Steve spent the day at Studio G, delivering a Master Class to our startup CEOs, sharing his observations and experience gained from over nearly 20 years of leading emerging businesses.</p>
<p>Blogger Judi Clark captured much of the <a href=" http://manymedia.com/2011/04/guidewire-group-master-class-on-being-a-startup-ceo/" target="_blank">great advice </a>for ManyMedia.</p>
<p>It’s been my experience that when Steve mentors, a-ha happens, and I had one of those moments as I listened to Steve talk about the 10 Reasons Startups Fail.  He addressed each reason as a separate, potentially deadly challenge for young companies, but for me, Reason #6 (“Don’t Pay Attention to your Customers”) and Reason #4 (“Fail to State a Clear Mission and Focus”) came together as both problem and solution. While he was making the point that companies ignore their customers at their peril and that too many startups go sideways because they pursued too many “opportunities,” I heard the solution to problem #7 by solving #6.  Your customers will tell you what to focus on, if you just listen to them.</p>
<p>A case in point.  I was working with a startup team recently to help them develop their strategic messaging.   We talked for several hours about the company’s technology, its leadership in cloud computing, the evolution of the enterprise software market.  We drew on the whiteboard and argued perspective. After three hours, we agreed to a story arc, the company’s position in a rapidly evolving market, the coming disruption and the company’s opportunity to exploit that change.</p>
<p>Then we took a break.</p>
<p>After a 30-minute breather, I asked to see the customer testimonials that had been recorded for the soon-to-be launched marketing effort.  A virtual parade of customers talked about the company’s ability to help solve a critical problem. They talked about cost savings, but then only as an afterthought to real benefits the software delivered. They used lots of words to describe their happiness with the product –few of them the words the company echoed in its marketing and none of them that the company would have said was its focus.</p>
<p>Yet in just 10 minutes listening to customers, the four executives dispatched to the task of identifying the company’s marketing message found agreement in the company’s focus.  Perhaps most remarkably and what may have been the first time,  the company’s founder, product lead, marketer, and salesman reached quick agreement about the business and collectively knew they could sell the message – and the focus – to the rest of the company.</p>
<p>Why the instant Kumbaya?  Because the message came from customers.</p>
<p>Too many startup execs are convinced that the startup must teach and groom the market and when that strategy fails to deliver business performance, they chase to another opportunity and then another.  In the most extreme case, a prominent Web 2.0 entrepreneur suggested that his customers – by which he meant every consumer in America if not the world – were just not smart enough to understand the greatness he was bringing to their lives.</p>
<p>It turns out, though, that customers don’t have to be “smart” to make a decision to buy or not.  But entrepreneurs have to be genius in listening to the “why” in that decision if they ever expect to build a business.</p>
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		<title>StartUP America Partnership Shares Our Vision</title>
		<link>http://guidewiregroup.com/2011/01/startup-america-partnership-shares-our-vision/</link>
		<comments>http://guidewiregroup.com/2011/01/startup-america-partnership-shares-our-vision/#comments</comments>
		<pubDate>Mon, 31 Jan 2011 14:59:04 +0000</pubDate>
		<dc:creator>chrisshipley</dc:creator>
				<category><![CDATA[Observations]]></category>
		<category><![CDATA[Startups]]></category>

		<guid isPermaLink="false">http://guidewiregroup.com/?p=1574</guid>
		<description><![CDATA[<p>The Obama Administration today jump-started a key initiative of the President’s national innovation strategy, The Startup America Partnership.   The program is a proposed alliance of entrepreneurs, venture capitalists, angel investors, CEOs, university presidents, foundations, and other leaders, “joining together to dramatically increase the prevalence and success of innovative, high-growth U.S. startups.”</p> <p>And it’s no wonder.  [...]]]></description>
			<content:encoded><![CDATA[<p>The Obama Administration today jump-started a key initiative of the President’s national innovation strategy, The Startup America Partnership.   The program is a proposed alliance of entrepreneurs, venture capitalists, angel investors, CEOs, university presidents, foundations, and other leaders, “joining together to dramatically increase the prevalence and success of innovative, high-growth U.S. startups.”</p>
<p>And it’s no wonder.  Startup businesses add more jobs to the economy than do established corporations, according a Kauffman Foundation Study.  Small businesses (which are often startups on their way to becoming larger and sustainable businesses) represent 99% of all businesses in the U.S., employ nearly 120 million people, and capture some $22 trillion in revenue each year.   From microchips to the smart phones that use them, entrepreneurs and their ideas are responsible for some of the most significant, market-shifting, high-impact innovations of the last 40 years.</p>
<p>It’s fitting then that the President embraces startups as the drive or the economy.  More fitting that the program is designed as a nonprofit, nonpartisan organization that works with government at all levels to advance an agenda for entrepreneurial education, to clear a path for commercialization, and to accelerate startup growth. This isn’t a big government program so much as catalyst of entrepreneurs working to create more entrepreneurs.</p>
<p>The Startup America Partnership will marshal “private resources to scale up a portfolio of proven models at every stage of the innovation funnel, from the first stirrings of entrepreneurial ambition to the market success of a new firm,” the White House statement said.</p>
<p>Guidewire Group couldn’t be happier with that ambition, because it is our vision.  We’re less than four weeks away from cutting the ribbon on our new Studio G Business Acceleration workspace and we’ve begun to roll out our programs.  Our design goal:  to create a global network of entrepreneurs and mentors sharing best practices, leveraging resources, and providing the connections that shift the odds to the favor of startup success.</p>
<p>While the Studio G Business Accelerator is based in Silicon Valley, it is intended as a hub in a national and international alliance of entrepreneurship programs, grafting the entrepreneurial DNA of Silicon Valley into the root stock of communities around the country in order to grow new businesses in place to have the greatest impact of economic revitalization and job creation across America.</p>
<p>Silicon Valley is a rich, complete, well-tuned, and <em>advantaged</em> ecosystem.  In many ways, it is far easier to build a business in Silicon Valley than in Witchata.  But I was in Kansas last week and I assure you that the entrepreneurs in Witchata and elsewhere around the country are every bit as scrappy, as ambitious, and as capable as any I’ve met in Silicon Valley.  By reaching, encouraging, and working with these entrepreneurs where they are, we can build a better and more competitive America, and arguably a more competitive Silicon Valley.</p>
<p>That’s way programs like the Startup America Partnership and, dare I say it, Guidewire Group’s Studio G are so important.  They have the potential to tap the vital human resource of energy and innovation and bring it to fruition in the parts of the country that need it most.</p>
<p>As we work to build a global Innovation Ecosystem, I hope you’ll join me in supporting the entrepreneurs who are starting the next great American companies.</p>
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		<title>Too Small To Fail</title>
		<link>http://guidewiregroup.com/2010/03/too-small-to-fail/</link>
		<comments>http://guidewiregroup.com/2010/03/too-small-to-fail/#comments</comments>
		<pubDate>Thu, 25 Mar 2010 19:40:32 +0000</pubDate>
		<dc:creator>chrisshipley</dc:creator>
				<category><![CDATA[Entrepreneurship]]></category>
		<category><![CDATA[Observations]]></category>
		<category><![CDATA[Startups]]></category>
		<category><![CDATA[finance reform]]></category>
		<category><![CDATA[Fortune 500000]]></category>

		<guid isPermaLink="false">http://guidewiregroup.com/?p=1412</guid>
		<description><![CDATA[<p>Now that health insurance reform is out of the way (sort of), our employees in Washington (that is, Congressional reps and Senators) will surely turn their attention (if not their bipartisan cooperation) to economic stimulus and finance industry reform (get ready for Obstructionist Politics: Round 2).</p> <p>Among the bits of joy in the financial reform [...]]]></description>
			<content:encoded><![CDATA[<p>Now that health insurance reform is out of the way (sort of), our employees in Washington (that is, Congressional reps and Senators) will surely turn their attention (if not their bipartisan cooperation) to economic stimulus and finance industry reform (get ready for Obstructionist Politics: Round 2).</p>
<p>Among the bits of joy in the financial reform bill proposed by the Senate Banking Committee are new guidelines for individual investors and the startups they support, guidelines that significantly and negatively impact the seed funding ecosystem.</p>
<p>The proposed legislation doubles the measure of net worth or income  required for an individual angel investor to be accredited, and nascent companies would be required to climb a mountain of paperwork with the Securities and Exchange Commission then wait up to 120 days for the SEC to review it.</p>
<p>These proposed rule changes throw sand into the gears of entrepreneurship and for what purpose?  If capital is not already difficult to come by for startups, this financial reform would effectively evaporate the pool of angel investment.  And while the SEC plods its way through filing reviews, time will be killing young businesses.</p>
<p>There are enough laws, regulations, and daily shenanigans to demonstrate that Congress hasn&#8217;t a clue about entrepreneurship.</p>
<p>So let&#8217;s be clear: entrepreneurship is, and always has been, the driver of the  economy.  Risk-taking individuals start new businesses, hire employees, create opportunities and build wealth that is often re-invested in local communities. Rather than imposing new regulation that makes these companies stillborn, Congress should be removing obstacles to capital.</p>
<p>Instead, Congress focuses on mega-banks and Fortune 500 companies, unwilling to let these leviathans of business falter.  They need to shift their attention and their policy initiatives to the Fortune 500,000 companies that are too small to be allowed to fail.  These companies employ more than 100 million people in the U.S. and earn upwards of $22T in revenue each year. Numbers, by the way, that stack up very favorably against the Fortune 500&#8242;s <em>worldwide </em>performance data of 24M employees and $9T in revenue).</p>
<p>We rarely use the Guidewire Group pulpit to incite political action, but if you&#8217;ve ever cared about an entrepreneur or imagine you might one day start a company of your own, now is the time to reach out to your elected officials and demand these onerous &#8220;reforms&#8221; be removed from the forthcoming legislation.</p>
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		<title>Be the Peloton: My TEDxAustin Talk</title>
		<link>http://guidewiregroup.com/2010/02/be-the-peloton-my-tedxaustin-talk/</link>
		<comments>http://guidewiregroup.com/2010/02/be-the-peloton-my-tedxaustin-talk/#comments</comments>
		<pubDate>Fri, 26 Feb 2010 13:00:01 +0000</pubDate>
		<dc:creator>chrisshipley</dc:creator>
				<category><![CDATA[Business Models]]></category>
		<category><![CDATA[Entrepreneurship]]></category>
		<category><![CDATA[Observations]]></category>
		<category><![CDATA[Fortune 500]]></category>
		<category><![CDATA[Fortune 500k]]></category>
		<category><![CDATA[small business]]></category>

		<guid isPermaLink="false">http://guidewiregroup.com/?p=1366</guid>
		<description><![CDATA[<p>Several days later and I&#8217;m still reacting to the amazing day that was <a title="TEDxAustin" href="http://www.tedxaustin.com/" target="_blank">TEDxAustin</a>.  In a day jammed with wonderful ideas, insightful speakers, engaged audience, and some stunning performances, I had the privilege of sharing one of my ideas within the event&#8217;s banner &#8220;Play Big.&#8221;</p> <p>Being the contrarian I am, of course, [...]]]></description>
			<content:encoded><![CDATA[<p>Several days later and I&#8217;m still reacting to the amazing day that was <a title="TEDxAustin" href="http://www.tedxaustin.com/" target="_blank">TEDxAustin</a>.  In a day jammed with wonderful ideas, insightful speakers, engaged audience, and some stunning performances, I had the privilege of sharing one of my ideas within the event&#8217;s banner &#8220;Play Big.&#8221;</p>
<p>Being the contrarian I am, of course, my talk centered on the idea of remaining small.  Here&#8217;s my case:</p>
<p>Consider the sumo wrestler.  He&#8217;s one big boy.  Professional sumo wrestlers &#8211; of which there are 700 in Japan&#8217;s traditional training centers, or <em>heyas </em>- weigh in from 250 to 500 pounds.  They are very competitive in a decidedly individual competition, and while they are strong and quick in short bursts, they can be cumbersome and slow outside the ring.  Maybe most importantly, they are bound by centuries of tradition.</p>
<p>Now, consider the peloton.  A compact team of athletes, the peloton leverages the strength of individual members to deliver benefit to the whole.  By working together, an well-architected peloton can reduce wind drag by as much as 40% to operate with greater efficiency and greater speed.  Throughout a race, the peloton can react to changing conditions and proactively seize new opportunity.  In a word, pelotons are entreprenurial.</p>
<p>In the world of business, the sumo is a big company, which is resource rich, with strong brand power and great global reach.  With a rich legacy in the market, big companies &#8211; like tradition-bound sumo wrestlers &#8211; are well rooted, and while that provides great stability, it can also make change difficult for the big company.</p>
<p>The peloton, as you might have now guessed, is a small business.   They may well be resource constrained, but they tend to be on a first-name basis with their customers.  Small businesses have a strong connection to their local community, and yet they often play in global markets. With fewer and thinner layers of decision making, small businesses are adaptive.  They can be risk takers.  And often because of their constrained resource and their close ties with customers, small businesses must be incredibly innovative to serve their markets.</p>
<p>As entrepreneurs, we aspire to be big businesses.  That, after all, is what investors look for and what the public markets reward.  The Fortune 500, we often assume, are the drivers of the global economy.  In 2006, the Fortune 500 had aggregated revenues of more than $9 <em>trillion,</em> with profits of $610B.  With nearly 25 million employees world wide, the Fortune 500 earns $368,000 per worker.  In big energy, that number can reach as high as $1m per worker and in the retail sector it drops to about $200,000 per employee. If the Fortune 500 were a country, it would be the second largest economy in the world.</p>
<p>Impressive.  But let&#8217;s consider the other 29,599,500 businesses in America, business employing fewer than 500 people.  Most of these are sole proprietorship; only some 5.7M businesses have employees, but among them they employ nearly 115M workers and generate $22 <em>trillion (</em>yep, that&#8217;s more than 2x the Fortune 500 in the U.S. alone.) .  If you&#8217;re doing the math, that&#8217;s about $192,000 per employee.</p>
<p>We tend to think of big business at the head of the long tail of business.  I&#8217;d argue we turn that graph on its side.  The size of the ecosystem swirling around small business and the economic value created by it outstrips the Fortune 500.   In the U.S. alone, small business accounts for nearly half of the GDP.  Worldwide, small businesses in aggregate must certainly stand and the largest global economic force.</p>
<p>The entrepreneurs who start small businesses are arguably the most innovative.  Think of the market-changing, market-making innovations of the last 10 years.  Software as a Service, smart phones, eCommerce platforms and businesses, fundamental Web technologies and security systems, digital media and the DVR.  These, among many others, were developed not in big companies (in fact, many big companies failed to deliver products in these categories), but by small entrepreneurial businesses.</p>
<p>The irony is that the very thing that makes a big business &#8220;successful&#8221; is that thing that often prevents them from furthering their success.  Big businesses lumber under the weight of  their size, unable to move fast enough on their own.  That&#8217;s the good news for startups who become targets of acquisition, as big business consumer young companies like so many calories in order to fuel their innovation engine.</p>
<p>But what if there were a different model?  What if we rewarded companies not for getting big, but for being efficient engines of innovation, employment, and value creation?  Imagine for a moment the rise of the Fortune 500,000, those top small businesses that outperform the markets by performing well together, much like a peloton.</p>
<p>Individually, each small corporation is strong, highly adaptable, capital efficient, and profitable.  These strong businesses remain agile, able to pounce on new opportunities and deliver results without wading through layers of decision making and corporate process.</p>
<p>Best of all, they can easily partner with other strong small enterprises to tackle a market or create one.  Each small enterprise brings its unique and highly-tuned capability to the partnership.  At the risk of mixing my metaphors,  each small enterprise is a free atom that can bond with other organizations in a precise formula to attack a business opportunity.  They can decouple and re-attach to other organizations when new opportunities arise.</p>
<p>Collectively, they can be stronger and more competitive against lumbering large organizations than they ever could be on their own.  And, collectively, they can react more quickly and be more responsive to a changing market environment than large companies can.</p>
<p>With specialization to deliver expertise and collaboration to deliver complete market value, the peloton model of business will drive innovation and create economic value.</p>
<p>Whether today&#8217;s capital markets can be as reactive to this coming business change is an entirely different matter.</p>
<div id="_mcePaste" style="overflow: hidden; position: absolute; left: -10000px; top: 875px; width: 1px; height: 1px;"><img src="file:///C:/Users/CHRISS~1/AppData/Local/Temp/moz-screenshot-1.png" alt="" /></div>
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		<title>Color Me Confused</title>
		<link>http://guidewiregroup.com/2010/01/color-me-confused/</link>
		<comments>http://guidewiregroup.com/2010/01/color-me-confused/#comments</comments>
		<pubDate>Fri, 08 Jan 2010 23:03:58 +0000</pubDate>
		<dc:creator>carlacthompson</dc:creator>
				<category><![CDATA[Observations]]></category>
		<category><![CDATA[breast cancer]]></category>
		<category><![CDATA[Facebook]]></category>
		<category><![CDATA[Huffington Post]]></category>
		<category><![CDATA[Susan G. Komen]]></category>
		<category><![CDATA[Washington Post]]></category>

		<guid isPermaLink="false">http://guidewiregroup.com/?p=1157</guid>
		<description><![CDATA[<p>Mine was beige, with flowers.  Which, as the evening wore on, proved to be one of the more boring updates. (I especially loved the person who asked, &#8220;Why is everyone posting synonyms for tan in their status?&#8221;) But what occurred on Facebook last night and this morning was, in my opinion, pretty amazing. A meme [...]]]></description>
			<content:encoded><![CDATA[<p>Mine was beige, with flowers.  Which, as the evening wore on, proved to be one of the more boring updates. (I especially loved the person who asked, &#8220;Why is everyone posting synonyms for tan in their status?&#8221;) But what occurred on Facebook last night and this morning was, in my opinion, pretty amazing. A meme took hold in a matter of minutes and, perhaps most impressive, had no explanation directly attached to it. You had to Google it or scan comments in your friends&#8217; posts to find out what the hell was going on. But the number of people participating was overwhelming, nonetheless.</p>
<p>What also took mere minutes was the indignant faction who were either annoyed, offended, or downright angry. While watching the BCS game (which is an entirely separate argument we won&#8217;t discuss), I found myself in a heated debate with a friend as to the effectiveness/harm of posting your bra color for breast cancer awareness. Her key point was that &#8220;hollow gestures threaten to undermine substantive action&#8221; and she circled back to her favorite rant topic: the aligning of twitterers with the Iranian democracy revolt last summer. I disagree strongly; people turning their avatars green has no effect &#8211; negative <em>or</em> positive &#8211; on Iranians&#8217; fight for democracy, just as typing the word &#8220;beige&#8221; next to my name on Facebook isn&#8217;t going to set breast cancer research back 10 years.</p>
<p>What it does do however is a couple of other important things. It serves a very real sociological need for affiliation. Humans define themselves, at least partially, by their causes. &#8220;I&#8217;m against Prop 8; therefore I am liberal and open-minded.&#8221; &#8220;I&#8217;m a member of the NRA; therefore I am conservative and like to kill things.&#8221; (Sorry. I&#8217;m only human.) So when you glom onto to one of these silly online memes &#8211; and yes, they are mostly silly &#8211; people feel they&#8217;re defining themselves a little bit.</p>
<p>The second point is one that&#8217;s much more salient. Last night&#8217;s bra-color game was a hint of what is possible when you combine social causes with social networks. Even those who were offended as hell have to admit: we&#8217;re talking about breast cancer now. Yes, of course, we were talking about it before. On occasion. In October when every household object on the market is tinted pink. But it did in fact, achieve precisely what it set out to do &#8211; raise awareness. <a href="http://www.blogher.com/name-awareness-fb-color-meme" target="_blank">The Huffington Post</a> wasn&#8217;t focusing on the anger and raw emotion of a breast cancer survivor last week. The rage that cancer engenders was not getting ink in the <a href="http://blog.washingtonpost.com/story-lab/2010/01/solving_the_bra_color_facebook.html?hpid=topnews" target="_blank">Washington Post</a>. And the Komen fan page on Facebook, for whatever good it does, had far less fans yesterday morning. Now the efficacy of &#8216;awareness&#8217; is most definitely up for debate. But if one little meme involving a color can take hold that quickly, and make that much of a splash in less than 12 hours, what&#8217;s going to happen when someone &#8211; and I&#8217;m betting it will be a political candidate &#8211; figures out how to <em>really</em> utilize our personal networks?</p>
<p>Because I&#8217;ve argued enough this week, I&#8217;ll let my friend have the last word. Kind of.</p>
<blockquote><p>If tech and social media wants to be taken seriously as a potential cure for that ill, action has to make a leap from status updates to the real world.</p></blockquote>
<p>I couldn&#8217;t agree more. She goes on to posit, though, that online actions make people feel they&#8217;ve done their part and therefore won&#8217;t contribute more substantive action in the real world. Perhaps, with some people, yes. But I can pretty much guarantee those folks weren&#8217;t going to contribute much to begin with.</p>
<p>If there&#8217;s one thing I&#8217;ve learned in emerging technology, it&#8217;s that you can&#8217;t start at the top. You lay the groundwork at the very bottom and hope that subsequent companies and technologies will build on it in your wake. No, we didn&#8217;t cure breast cancer last night. But I&#8217;m certainly willing to keep playing these little games until we do.</p>
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		<title>10 Stupid Things Entrepreneurs Do To Mess Up Their Businesses</title>
		<link>http://guidewiregroup.com/2009/12/10-stupid-things-entrepreneurs-do-to-mess-up-their-businesses/</link>
		<comments>http://guidewiregroup.com/2009/12/10-stupid-things-entrepreneurs-do-to-mess-up-their-businesses/#comments</comments>
		<pubDate>Sun, 20 Dec 2009 18:18:43 +0000</pubDate>
		<dc:creator>chrisshipley</dc:creator>
				<category><![CDATA[Entrepreneurship]]></category>
		<category><![CDATA[Observations]]></category>
		<category><![CDATA[Startups]]></category>
		<category><![CDATA[10 Stupid Things Entrepreneurs Do]]></category>
		<category><![CDATA[best practices]]></category>
		<category><![CDATA[corporate culture]]></category>
		<category><![CDATA[fundraising]]></category>
		<category><![CDATA[FWE&E]]></category>
		<category><![CDATA[Startup Camp Montreal]]></category>

		<guid isPermaLink="false">http://guidewiregroup.com/?p=1053</guid>
		<description><![CDATA[<p>In October, I spoke at <a href="http://startupcampmontreal5.wikidot.com/" target="_blank">Startup Camp Montreal5</a> about the <a href="http://www.slideshare.net/ptelio/10-stupid-thingspublic-2276015" target="_blank">10 Stupid Things Entrepreneurs Do to Mess Up Their Businesses</a>, and alluded to that talk again recently at the <a href="http://www.fweande.org" target="_blank">Forum for Entrepreneurs and Executives</a> conference on entrepreneurship.  It came up in conversation again on Friday so it seems high [...]]]></description>
			<content:encoded><![CDATA[<p>In October, I spoke at <a href="http://startupcampmontreal5.wikidot.com/" target="_blank">Startup Camp Montreal5</a> about the <a href="http://www.slideshare.net/ptelio/10-stupid-thingspublic-2276015" target="_blank">10 Stupid Things Entrepreneurs Do to Mess Up Their Businesses</a>, and alluded to that talk again recently at the <a href="http://www.fweande.org" target="_blank">Forum for Entrepreneurs and Executives</a> conference on entrepreneurship.  It came up in conversation again on Friday so it seems high time I actually post the notes from the talk on our blog.</p>
<p>I hope by pointing out common blunders, I can help entrepreneurs avoid a few of the dumb mistakes that (almost) every startup makes.  I also hope that some of you who have tripped into these potholes of entrepreneurship might come forward as case studies for a collection of essays that I&#8217;m compiling.  If you have a story that serves as object lesson to fellow entrepreneurs, I&#8217;d love to talk to you about it.  I promise to protect identities (where necessary and/or requested) and to be gentle with you.  The goal of the book is to help new entrepreneurs learn from those who have gone before.   If you&#8217;re interested in sharing a story, contact me via <a href="mailto: chris@guidewiregroup.com">email</a>.</p>
<p>Now, on to the list of <strong>10 Stupid Things Entrepreneurs Do To Mess up Their Businesses*</strong></p>
<p><strong>1.  Think Like a Guppy </strong></p>
<blockquote><p>Okay, so you&#8217;re a small company.  Maybe it&#8217;s just you and a couple of co-founders. Hell, maybe it really is <em>just you. </em>That&#8217;s cause to be judicious with your resources, but it&#8217;s no reason to whine.</p>
<p>Somehow in the past few years, it&#8217;s become popular to put startups in some sort of protected charitable class.  You&#8217;re not a charity, you&#8217;re a business and if you want to be a big business, you have to think like one.  Manage your resources, posture, negotiate,  demand performance, deal.</p>
<p>You&#8217;re not a little fish; you&#8217;re a whale that has a long way to grow. Think like a small business and you&#8217;ll stay a small business.<em> </em> Think like a big business and you are more likely to become one.<br />
<strong><br />
</strong></p></blockquote>
<p><strong>2. Confuse Vision and Focus</strong></p>
<blockquote><p>Any business worth doing starts with a big, clear vision, that usually has something to do with owning a market, solving a giant problem, saving the world, or simply total world domination.</p>
<p>Still, there is a giant difference between vision and focus.  Vision is the audacious objective, the big game of entrepreneurship. It is what the business looks like when you&#8217;ve achieved your goals.</p>
<p>Focus is how you get there.</p>
<p>Focus is critical because it provides the actionable steps to make a vision a reality.  Focus prevents companies from running off course, or worse, chasing after the shiny objects that pose as opportunity. As importantly, focus provides a measure of progress and keeps ambitious entrepreneurs from becoming overwhelmed by their big vision.</p>
<p>Smart entrepreneurs dream big, but focus tightly. You can eat an elephant, but you have to do it one day at a time.</p></blockquote>
<p><strong>3.  Confuse activity for focus</strong></p>
<blockquote><p>There are no idle entrepreneurs.  Indeed, time is the enemy of startups, and every founder is busy, busy, busy building the business.  Or so it seems.</p>
<p>Lots of activity doesn&#8217;t necessarily mean lots of progress. If you&#8217;re unfocused and doing the <em>wrong things</em>, you can be mighty busy doing little of value.   When you&#8217;re lost, don&#8217;t just drive faster.  Stop.  Breathe. Assess. Focus.  And maybe even ask for directions.</p></blockquote>
<p><strong>4. Fall in Love with Technology</strong></p>
<blockquote><p>Of course you love your technology; every entrepreneur does.  It&#8217;s the product, after all, that people will buy. So you give it all your attention, defend it when criticized, convince your self that <em>your </em>baby can&#8217;t be ugly.</p>
<p>While dedication to technical excellence is admirable, in  a startup it&#8217;s the wrong target for your affection.  Instead, fall in love with your customers. They will tell you what to make.</p></blockquote>
<p><strong>5.  Focus on Fund Raising Instead of Building a Business</strong></p>
<blockquote><p>I know.  You need capital to build your company and venture capital is the fastest path to cash in the bank.  Or it used to be.</p>
<p>While few VCs will openly admit that <em>they </em>have much worry, truth is that the venture capital industry is in upheaval.  The perfect storm of the residual dot-com mega-funds, cash-efficient business creation models of the Web 2.0 cycle, and a global economic meltdown leave most funds with capital they can&#8217;t invest, capital calls they can&#8217;t make, or new funds they can&#8217;t raise. VCs are trying to re-engineer (and, in many instances, simply save) their businesses.  And while they may be saying something different, they really aren&#8217;t spending as much time thinking about how to invest in yours.</p>
<p>But even in the best of times, the best way to raise capital to build your business is to build and sell products and services that people want to buy.  In fact, nothing catches the interest of VCs like money coming into the company.</p>
<p>Consider that raising venture capital is a time-consuming activity.  Consider how you might otherwise use your time.  Developing a product?  Talking to customers?  Building strong channel partners?  Then consider this: what brings more value to your company: building PowerPoint presentations for Sand Hill Road or building your company?</p></blockquote>
<p><strong>6. Fail To Measure</strong></p>
<blockquote><p>Young companies run fast, but not every startup is clear on where they&#8217;re going or what it will look like when they arrive.  No doubt there will be plenty of turns along the way, but if you don&#8217;t lay down some milestones, you&#8217;ll have no way of knowing whether you&#8217;re on track or on time.</p>
<p>Companies of all sizes do what they measure, so measure what matters.  Determine by what metrics you will evaluate your progress and by which you will be evaluated by others.  Whether its development deadlines, page views, sign ups, downloads, or whatever &#8211; figure out what <em>measurable </em>metrics demonstrate growth and potential for your business.</p>
<p>Include in your metrics the sub-measures that affect the whole.  For example, if the measure is a sales goal, also measure marketing and development activity that contributes to achieving that goal.  That way, you have a clearer view sooner of what is going right, and possibly wrong.</p>
<p>Communicate those metrics to your team so they understand what they are and why they are important.  Then measure and report in meaningful and actionable increments.</p></blockquote>
<p><strong>7.  Ignore Yellow Lights</strong></p>
<blockquote><p>Optimism is a critical requirement for entrepreneurs. You have to believe that you can do the impossible while constrained in every possible way.</p>
<p>Still, your optimism can not be allowed to trump your reality.</p>
<p>That&#8217;s why metrics and measurement are so important to young companies.   It&#8217;s important to set those milestones while everything remains possible and reason rules your business planning.</p>
<p>As you march on, you&#8217;ll no doubt miss a milestone or fall short of some measure.  Pay attention. Take time to analyze the shortfall, learn from it and make course corrections as needed.</p>
<p>And, most importantly, listen for that little voice that urges you to press on even when all the warning signs point to another course of action.  Listen for it, not to it.</p></blockquote>
<p><strong>8. Hire Good People</strong></p>
<blockquote><p>Smart founders hire <em>great </em>people. Period.</p>
<p>You&#8217;ve got more work than you can do alone, your small team can&#8217;t move fast enough, and you&#8217;ve got the resources to bring in more people.  Hiring fast may seem like the answer.  It rarely is.</p>
<p>As much as founders need people to help build the business, people can be a time sink for founders.  The wrong person in the wrong job will bury you in management hassles, and they can do more to destroy team morale than a weeks of all-nighters.</p>
<p>As counter intuitive as it may seem, it is far better to take time to fill a position with the absolute best hire, than to burn time managing your way out of a bad hire.</p></blockquote>
<p><strong>9. Neglect the Details</strong></p>
<blockquote><p>An entrepreneur I know calls the details of budgeting and bookkeeping, employee contracts, stock agreements, and the myriad other details of business life &#8220;administrivia.&#8221;  It&#8217;s a fun word, but there is nothing trivial about business management.</p>
<p>In the earliest days, when you&#8217;re working on handshakes and shoestrings, there&#8217;s little need for over the top business administration, but that doesn&#8217;t obviate the need for some reasonable care.  That care (or lack thereof) will set the tone for your business as it grows.</p>
<p>A little time and a few dollars spent with a bookkeeper and lawyer in your earliest days will save a lot more time and money later when you need clean books and protected IP to make your case to investors, customers, and partners.   Forensic accounting and documentation is very expensive.  You can pay me now, or pay me a lot more later.</p></blockquote>
<p><strong>10. Lose Site of Your Values</strong></p>
<blockquote><p>Every company has a culture.  It&#8217;s either accidental or deliberate.</p>
<p>An accidental culture grows as people come on to the team, decisions are made, customs established, crises arise, pressures build and release, new challenges and opportunities preset themselves.  How founders act as the business unfolds sets the tone and establishes precedent.  Precedent, re-enacted time and again, grows into corporate culture.</p>
<p>In my experience, most accidental cultures are toxic, not unlike mold growing in a refrigerator; all the best ingredients are there, but having gone ignored or uncared for, they go to waste.</p>
<p>Deliberate cultures aren&#8217;t necessarily complex and they don&#8217;t require management consultants or self-help books.  They simply require awareness.  What do you believe and value?  If this company is your legacy, how do you want to be known?  How do you want your company to be perceived by its employees, customers, and community?</p>
<p>Let the awareness of and commitment to those values drive your business dealings and decisions. Be consistent with your values, make them part of the company, and demand that those around you do the same.</p></blockquote>
<p>* <em>with apologies to Dr. Laura Schlessinger for riffing on her popular book titles. </em></p>
<p><em><br />
</em></p>
<div id="_mcePaste" style="overflow: hidden; position: absolute; left: -10000px; top: 0px; width: 1px; height: 1px;">You’re not a little fish; you’re a whale that’s not yet gotten big.</div>
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		<title>You May Not Need a Business Plan, But You Must Plan Your Business</title>
		<link>http://guidewiregroup.com/2009/12/you-may-not-need-a-business-plan-but-you-must-plan-your-business/</link>
		<comments>http://guidewiregroup.com/2009/12/you-may-not-need-a-business-plan-but-you-must-plan-your-business/#comments</comments>
		<pubDate>Tue, 15 Dec 2009 16:26:12 +0000</pubDate>
		<dc:creator>chrisshipley</dc:creator>
				<category><![CDATA[Entrepreneurship]]></category>
		<category><![CDATA[Observations]]></category>
		<category><![CDATA[Startups]]></category>
		<category><![CDATA[Uncategorized]]></category>
		<category><![CDATA[Brian Halligan]]></category>
		<category><![CDATA[business plan]]></category>
		<category><![CDATA[HubSpot]]></category>

		<guid isPermaLink="false">http://guidewiregroup.com/2009/12/you-may-not-need-a-business-plan-but-you-must-plan-your-business/</guid>
		<description><![CDATA[<p>I admit I&#8217;m a bit behind in my reading amidst end of year planning and all this holiday hoopla, so I&#8217;m just getting around to reading Sunday&#8217;s Wall Street Journal post asking <a href="http://bit.ly/8J1AAp" target="_blank">&#8220;Should Start-Up Founders Forget About Business Plans?&#8221;</a></p> <p>The post quotes HubSpot founder and CEO <a href="http://www.hubspot.com/company/management/brian-halligan/">Brian Halligan</a> saying that creating a [...]]]></description>
			<content:encoded><![CDATA[<p>I admit I&#8217;m a bit behind in my reading amidst end of year planning and all this holiday hoopla, so I&#8217;m just getting around to reading Sunday&#8217;s Wall Street Journal post asking <a href="http://bit.ly/8J1AAp" target="_blank">&#8220;Should Start-Up Founders Forget About Business Plans?&#8221;</a></p>
<p>The post quotes HubSpot founder and CEO <a href="http://www.hubspot.com/company/management/brian-halligan/">Brian Halligan</a> saying that creating a business plan is a &#8220;fool&#8217;s errand,&#8221; noting that he has raised some $30million in investment capital without a formal business plan.  He added, “No venture capitalist actually asked us for a business plan.”</p>
<p>There&#8217;s long been a debate about the value of a documented business plan in fundraising.  VCs might ask for one, but really (and usually said with a wink and a snicker), we all know they never actually read them. In other words, as Halligan put it, business plans are &#8220;a waste of time.&#8221;</p>
<p>As business professors everywhere grab their pearls at the thought, let me jump in here and say that Halligan is right &#8211; and completely wrong.</p>
<p>A fully-documented, prose-polished, perfect-bound business plan adds little real value to a startup company. But that&#8217;s really not the point.</p>
<p>A documented business plan doesn&#8217;t simply appear, created from golden cloth as if by some Rumplestilskin-like magic.  Indeed, to say that a business plan is a fool&#8217;s errand is missing entirely the nature of the errand itself.  The thinking, measuring, investigating, validating, and actual planning that enables one to write a business plan is what matters.</p>
<p>Halligan goes on to say that startups need only three documents with which to raise money: a PowerPoint presentation, a one-page executive summary, and a “fictitious” pro forma income statement.  All of which, he stresses, are &#8220;simple.&#8221;</p>
<p>Let&#8217;s assume for a moment that Halligan is right.  The subtext of his comments presented at the  <a href="http://www.enterprizepr.com/Default.aspx?alias=www.enterprizepr.com/prventureforum">Puerto Rico Venture Forum</a>, is that the venture guys are kind of superficial and so you, dear entrepreneur, can be, too. Throw together some slides, whip up a couple of paragraphs, invent some numbers. Bob&#8217;s your uncle.</p>
<p>I dare you to build a business on that soft foundation. While business <em>plans </em>find their way to the dust bin of history, business <em>planning </em>is critical to the formation and growth of any company.  I&#8217;m not talking about lock-yourself-in-a-room-subsist-on-pizza-and-Red-Bull-ignore-incoming-calls-figure-out-every-nuance planning. I&#8217;m talking about common sense testing of assumptions, laying out a strategy, idenfitying tactics, and understanding milestones. It shouldn&#8217;t take weeks, but it ought to take days.</p>
<p>Without this level of planning, you can&#8217;t articulate your business in the infamous 10-slide deck or quick and dirty executive summary.  More importantly, you can&#8217;t articulate your business to your team, your potential hires, contractors, and others who will actually help you execute on the business.</p>
<p>It takes time &#8211; thoughtful, focused time &#8211; to plan a business, but so much less time than tacking from one spaghetti-against-the-wall experiment to the next.</p>
<p>Do I read massive business plans?  No.  Do I expect the companies who seek my help to have planned? Yes!</p>
<p>So while Mr. Halligan may be right that no one reads a business plan, you&#8217;ll be dead in the water if you interpret his remarks to mean you needn&#8217;t plan at all.</p>
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