Traditional Venture Capital Broken?

Venture Capital Broken?

"You would think that cheap, abundant capital was a great boon for entrepreneurs. It isn't. The reality of startups is that you spend what you have. The more cash you have in your pocket, the less you value each dollar. It is human nature. Lots of cheap capital, available at high valuations seems great, until you do the exit math...Higher valuations and high venture rounds may feel good in the short term, but with IPOs as scarce as they are, they can price you out of the very exit you seek...

The traditional venture capital model has been “fund twenty, pray for two.” Since you could only lose 1X your money, you could make it up with a couple of big hits. But big hits are fewer and much farther between than ever before...The math worked when venture funds were $200M and exits were $500M. It doesn’t work when the numbers are reversed...

I can only see two venture capital strategies that make sense in this environment. One is to be small, focused, and totally aligned with market realities and founder incentives...be maniacal about capital efficiency...place small bets in multiple companies along an investment theme...Then even the small outcomes can provide a venture return...The other strategy is to be treat venture capital as one of many capital markets to search for inefficiencies across the private-public spectrum..."

Read more in this provocative post from EarlyStageVC.

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Do Your Beliefs Hold You Back?

"All of us have some flawed or erroneous beliefs. Since we interpret the world though these beliefs, we see the world not as it is, but as we are – and it’s this flawed interpretation that drives our attitude and behavior...our beliefs become our truths and reality...

For example, if you don't believe something is possible to do, you’re probably not going to commit much energy and resources to accomplishing it. Whether it’s gathering new assets, landing a big client, or simply getting out of the office at five o’clock, your beliefs dictate your actions...

Insanity is often defined as doing the same things over and over again, while expecting different results. If this rings a bell, it may be time to change your mindset so you can get different results.

Here are three steps to change your beliefs and mindset:

First, begin by specifically identifying the results you want.
Then create and develop actions that will accomplish those results.
Lastly, examine your beliefs about those actions to determine if they are holding you back."

Read more in this article by Bob Lodie

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New Tax Deduction for Energy Efficient Commercial Buildings

"The Energy Tax Incentives Act of 2005 creates a brand-new deduction for expenses incurred for energy-efficient commercial buildings (Code Sec. 179D). It's a major incentive for building owners to upgrade their systems and for those building new structures to design them in an energy-efficient manner. The deduction is available whether the building is new or used.

The maximum energy efficient commercial building (EECB) deduction is equal to (1) $1.80 per building square foot (60¢ per building square foot, for certain separate building systems), less (2) the aggregate amount of EECB deductions allowed for the building for prior years...

The new deduction is available only if the EECB property meets all of the following conditions:
... It is property that is otherwise depreciable or amortizable.
... It is installed on or in any building located in the U.S. that is within the scope of Standard 90.1-2001 of the American Society of Heating, Refrigerating, and Air Conditioning Engineers and the Illuminating Engineering Society of North America (ASHRAE/IESNA).
... It is installed as part of (a) the interior lighting systems, (b) the heating, cooling, ventilation, and hot water systems, or (c) the building envelope.
... It is certified as being installed as part of a plan designed to reduce the total annual energy and power costs with respect to the interior lighting systems, heating, cooling, ventilation, and hot water systems of the building, by 50% or more in comparison to a reference building which meets the minimum requirements of Standard 90.1-2001 (as in effect on April 2, 2003). Detailed certification requirements must be met in order to qualify for the deduction, with IRS to promulgate regs explaining how the fuel savings targets are to be measured. Any energy or power cost savings calculation must be prepared by “qualified computer software.” “Qualified computer software” is software that:
... the software designer has certified meets all procedures and detailed methods for calculating energy and power consumption and costs as IRS requires;
... provides the forms that IRS requires to be filed in connection with the energy efficiency of property and the deduction for energy efficient commercial property; and
... provides a notice form that summarizes the energy efficiency features of the building and its projected annual energy costs...

Effective Date. The new deduction for energy-efficient commercial building property applies for property placed in service after Dec. 31, 2005, and before Jan. 1, 2008."

Thanks for the information goes to
Harry R. Veltum, Jr.
Sobol Bosco & Associates
615 Iron City Drive
Pittsburgh, PA 15205
e-mail: harryv-at-sobolbosco-dot-com

Technorati Tags: business, taxes, real estate, tax, legal

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On Being Bought Not Sold

"Your exit goal as a venture-backed company is to be bought not sold. Holding the top spot on several acquirers' target lists is the best way to achieve that, and it makes getting through the deal screening process much easier. Understanding the acquisition strategies and parameters of your potential acquirers will help you to begin positioning and preparing your company to make it to the top of the list.

Gaining this intelligence is not that hard..."

See this post from Confessions of a Corporate Dealmaker for instructions on how to do it.

Technorati Tags: business, vc, venture capital, entrepreneur, entrepreneuship, startup

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Leadership Is Not About Being Boss

This post from the Servant Leadership Blog provides links to a series of summaries of James Autry's 'Five Ways of Being' from his book The Servant Leader and concludes with Autry's list of six things he believes about leadership:

"1) Leadership is not about controlling people; it's about caring for people and being a useful resource for people.

2) Leadership is not about being boss; it's about being present for people and building a community at work.

3) Leadership is not about holding on to territory; it's about letting go of ego, bringing your spirit to work, being your best and most authentic self.

4) Leadership is less concerned with pep talks and more concerned with creating a place in which people can do good work, can find meaning in their work, and can bring their spirits to work.

5) Leadership, like life, is largely a matter of paying attention.

6) Leadership requires love."

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Open Source Q&A

"In recent years, there has been a tremendous buzz about open source software. Many constituencies believe that it is the ultimate destiny of the software industry, while others remain unconvinced that open source represents a viable business model. There is no doubt, however, that open source software is changing the software industry and is here to stay – in some form. This Goodwin Procter article from Mondaq answers the following frequently asked questions about open source software and addresses some common misconceptions.

1. What is open source software?
2. Is all open source software the same?
3. Does use of open source software save time and money?
4. What are the different types of open source licenses?
5. Do I even need to worry about complying with open source licenses?
6. How do I get support for open source software?
7. How does open source software affect my intellectual property?
8. How does using open source software affect my litigation risks?
9. How do companies make money giving their software away?
10. How can I safely implement open source into my development process?

Technorati Tags: open source, software, legal, law

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GPL 3 Draft: Where There's Smoke

"In the run-up to the release of GPL3, Eben Moglen of the Free Software Foundation sought to calm anyone concerned by noting that the changes would be very small – so small, in fact, that everyone would wonder why there was any cause for alarm about the terms of GPL3. Well, the initial draft of GPL3 has now been released...

Taken altogether, it’s not clear that GPL3 is a minor extension of GPL2. Perhaps a better way to characterize it would be to say that GPL3 reflects GPL2 concepts, but updated for today’s technology environment of software patents, downloadable content, and global Internet access. GPL3 is consistent with the longstanding principles of the FSF; however, some of its requirements may be difficult to accept for organizations interested in using GPL3-licensed code..."

Read more in this article by Bernard Golden for Tech LinkLetter.

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Technology Law Updates

This Duane Morris LLP newsletter edition from Mondaq offers updates on the following legal developments in information technology, e-commerce and telecommunications:

D.C. Appeals Court Rejects Telephone Excise Tax Arguments
New Internet Addresses Coming Soon?
French Parliament Adopts New Anti-Terrorism Legislation
Illinois Video Game Laws Violate Free Speech
Battle Over Wiretap Access Continues
Georgia Court Reverses Itself on Venue Requirement in Georgia Identity Fraud Statute

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How to Finance Almost Anything

"Despite the tumultuous and unpredictable state of today's capital markets, entrepreneurs still have plenty of ways to raise funds for their companies. Here are 20 [from the Cash Flow Blog] that offer particular promise in the current economic climate. Some represent new marketplace solutions to the perennial financing problems of business owners; others offer new twists on time-tested strategies or financing tools."

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Why Software Companies Fail

"Here's the secret that every successful software company is based on: You can domesticate programmers the way beekeepers tame bees. You can't exactly communicate with them, but you can get them to swarm in one place and when they're not looking, you can carry off the honey.

You keep these bees from stinging by paying them money...And you get them to stay in the hive by giving them other coders to swarm with...and if you want to get a good swarm, you make sure that you have at least one certified genius coder that they can all look up to, even if he glances at other people's code only long enough to sneer at it...If a software company provides such a hive, the coders will give up sleep, love, health, and clean laundry, while the company keeps the bulk of the money...

Here's the problem that ends up killing company after company. All successful software companies had, as their dominant personality, a leader who nurtured programmers. But no company can keep such a leader forever. Either he cashes out, or he brings in management types who end up driving him out, or he changes and becomes a management type himself. One way or another, marketers get control..."

Read more in this humorous and provocative article by Orson Scott Card.

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Politicians Ignore Facts, Study Finds

"Democrats and Republicans alike are adept at making decisions without letting the facts get in the way, a new study shows...

Researchers asked staunch party members from both sides to evaluate information that threatened their preferred candidate prior to the 2004 Presidential election. The subjects' brains were monitored while they pondered.

The study points to a total lack of reason in political decision-making...The test subjects on both sides of the political aisle reached totally biased conclusions by ignoring information that could not rationally be discounted...And they get quite a rush from ignoring information that's contrary to their point of view..."

Read more in this article from LiveScience.

Technorati Tags: politics, politicians,

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Steelers Logo & Other Steelers Trivia

'62 steelers helmet
Originally uploaded by TigerTigerTiger.

"Do you know why the Steelers are now the only team in the NFL to sport a logo on only one side of the helmet? The Steelers steelmark logo was originally only applied to one side of the helmet (the right side) because the Steelers were uncertain how it would look on their solid gold helmets.

Even when they later switched their helmet color to solid black, they decided to permanently retain the logo on just the one side due to the team's new success and the interest generated by the logo's uniqueness. "


Did you know that the Steelers once fielded a team jointly with the Philadelphia Eagles with the team named the "Steagles"? No kidding. See this post from About.com for more Steelers trivia


Technorati Tags: steelers, Pittsburgh

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I'm My Own Grandpa

Okay, in Hotmail, when I save a copy of an email with an attachment to the "sent items" folder, it does not save the attachment. To work around this, I copied myself on the email. Only problem is the crack spam filter recognizes my hotmail email address as junk and diverts the message to the junk mail folder. So I had to add my hotmail email account to my hotmail email account's safe list to receive the email from me sent from one account to the same account. I am certain that this makes sense to someone, but it sort of reminds of that old ditty, I'm My Own Grandpa.

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Four Meme

Nobody tagged me but...I thought I would contribute to the Four Things meme. So, here goes:

Four Jobs I've Had in My Life

Jet Refueler
Construction Laborer
Car Wash Attendant
Corporate Lawyer

Four Movies I Could Watch Over and Over, and Have

To Kill a Mockingbird
It's A Wonderful Life
Harold and Maude
The Wizard of Oz

Four Places I Have Lived

Farr Street, Tripp Park, Scranton, PA
Princeton, New Jersey
Bigelow Boulevard, Polish Hill, Pittsburgh, PA
Sewickley, PA

Four TV Shows I Love to Watch

24
ESPN Sportscenter
Seinfeld
Star Trek (all series)

Four Places I've Been on Vacation

Yucatan Peninsula & Mexico City, Mexico
Four Corners area where NM, CO, AZ & UT intersect
The Jersey Shore
Myrtle Beach, SC

Four Websites I Visit Daily

My Lycos home page
Bizz Bang Buzz
My fantasy sports page
My hotmail account

Four Favorite Foods

Pizza (light on the cheese)
Pasta (red sauce please)
Cereal/Granola (my special mix)
Fish sandwich (baked of course)

Four Places I'd Rather Be Right Now

At Invesco field, Denver CO. (the Steelers playoff game is about to start)
Visiting my daughter, just about anywhere
At a live sporting event
At the movies

Technorati Tags: four meme

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Supreme Court Justices to Don Steelers Black & Gold Robes & Terrible Towels

Supreme%20Court%20Steelers
Originally uploaded by TigerTigerTiger.

"WASHINGTON - In a marked departure from his predecessor, Chief Justice John Roberts announced that the Court will allow advertisements on its Justices' robes, but not for any person or business that currently has a case pending before the Court. The first ads, fittingly enough on the Friday before the AFC Championship, will be for the Pittsburgh Steelers. Roberts declared Friday "Black and Gold Day" at the United States Supreme Court. All justices will don ceremonial Terrible Towels over the traditional black robes worn since the inception of the court over two hundred years ago."

Read more in this post from The Carbolic Smoke Ball.

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How to Make an Effective Presentation

This Business Opportunities Weblog post refers to a post by Guy Kawasaki offering the following advice on how to get a standing ovation at your next presentation:

"Have something interesting to say.
Cut the sales pitch.
Focus on entertaining. Understand the audience.
Overdress.
Don't denigrate the competition.
Tell stories.
Pre-circulate with the audience.
Speak at the start of an event.
Ask for a small room.
Practice and speak all the time. "

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Networking 101 for the CIO

"While CIOs are masters of a variety of skills, networking typically isn’t one of them. Most CIOs, introverts at heart, would rather lead a global SAP deployment than work the room...Yet, effective networking is often a means toward better business partners, better employees and better jobs...These four IT executives offer practical, tactical advice for identifying the most promising networking opportunities and making the most of them.

1. Avoid generic networking events. Dave Clarke, CTO of the American Red Cross...
2. Conceptualize and build a networking model. Greg Smith, CIO of the World Wildlife Fund..,
3. Focus on vertical networking. Chris Feola, CIO of AskSam Systems...
4. Take an MBA short course....
5. Engage in collaborative networking. Tom Morgan, CIO of Dobson Communications..."

Read more in this article by Martha Heller for CIO.com

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Free Management Library

Carter McNamara of Authenticity Consulting, LLC offers an integrated Management Library for For-Profit and Nonprofit Organizations at http://www.managementhelp.org containing 75 popular categories of topics.

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List of Popular Web 2.0 Applications

Virtual Karma provides "an alphabetically sorted list of popular Web 2.0 applications. The description for each of the application is taken from their own About or FAQ pages."

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Love the Work You're With

Snippets from an excellent article by Paul Graham:

"Doing what you love is complicated. The very idea is foreign to what most of us learn as kids…

Prestige is like a powerful magnet that warps even your beliefs about what you enjoy. It causes you to work not on what you like, but what you'd like to like… Prestige is just fossilized inspiration. If you do anything well enough, you'll make it prestigious… So just do what you like, and let prestige take care of itself.

Prestige is so effective at distracting the ambitious that society has evolved many ways to use it for this purpose. If you want to make ambitious people waste their time on errands, the way to do it is to bait the hook with prestige. That's the recipe for getting people to give talks, write forewords, serve on committees, be department heads, and so on. This pattern is so common that it might be a good rule simply to avoid any prestigious task. If it didn't suck, they wouldn't have had to make it prestigious….

The other big force leading people astray is money… With such powerful forces leading us astray, it's not surprising we find it so hard to discover what we like to work on. Most people are doomed in childhood by accepting the axiom that work = pain. Those who escape this are nearly all lured onto the rocks by prestige or money. How many even discover something they love to work on? A few hundred thousand, perhaps, out of billions.

That's an important thing to bear in mind. It's very hard to find work you love. It must be, if so few do. So don't underestimate this task. And don't feel bad if you haven't succeeded yet. It's not a sign there's something wrong with you if you have trouble finding the work you love, any more than it is if you're out of breath climbing a 30% grade. In fact, if you admit to yourself that you're discontented, you're a step ahead of most people, who are still in denial...

You tend to become what you do. If you work on tedious stuff for too long, it will rot your brain…The kid who wants to write but decides to go to law school, thinking that he'll be a lawyer and write in his spare time, runs a great risk of finding ten years later that he has become a lawyer…

In the design of careers, as in the design of most other things, you get better results if you use flexible media. Unless you're fairly sure what you want to do, your best bet may be to choose a type of work that will allow you to delay deciding…

The only way to learn what a job is really like is to do it. So a job that lets you work at many different things is good not just because you can push it in many different directions, but because you can learn faster which direction you want to push it in…

If you work hard at being a bond trader for ten years, thinking that you'll quit and write novels when you have enough money, what happens when you quit and then discover that you don't actually like writing novels?...

Constraints give your life shape. Remove all constraints and most people have no idea what to do: look at what happens to those who win lotteries or inherit money. Much as everyone thinks they want financial security, the happiest people are not those who have it, but those who like what they do..."

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Guide to Retail Business Startup

Whether you want to sell the latest fashions or coolest toys, hardware or pet accessories, sporting goods or beauty supplies, you may wish to begin your journey at the Retail Startup Center from Entrepreneur.com The site allows you to get started with extensive how-to, then check out numerous articles on retail trends, successful business owners, tips, tactics and more.

Technorati Tags: startup, entrepreneur, entrepreneurship, business

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Practicing Servant-Leadership

"Since the time of the Industrial Revolution, managers have tended to view people as tools, while organizations have considered workers as cogs in a machine. In the past few decades we have witnessed a shift in that long-held view. In countless for-profit and nonprofit organizations today we are seeing traditional, autocratic, and hierarchical modes of leadership yielding to a different way of working--one based on teamwork and community, one that seeks to involve others in decision making, one strongly based in ethical and caring behavior, and one that is attempting to enhance the personal growth of people while improving the caring and quality of our many institutions..."

Read more in this summary of servant-leadership principles found via this post from the Servant Leadership Blog.

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Audio Conversation One of Top Ten

I am pleased to report that this interview of Anthony Cerminaro regarding the "Well Utilized Business Lawyer" was selected as an SMB Trend Wire|Top Ten Most Requested Small Biz Audio. In the audio conversation, I discuss with Anita Campbell and Steve Rucinsky legal issues important to small businesses and how and when to make effective use of a business lawyer as part of "the team."

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Aim for Sustainable Competitive Advantage

"A common approach used by investors to identify potentially successful businesses and to minimize risk is to judge a business on its ability to achieve and perpetuate a sustainable competitive advantage. Some of the characteristics that can provide such an advantage include:

+Unique technology or processes (yielding products or services that can be shown will be in high demand by the marketplace).

+Intellectual property protection (patents, trademarks and copyrights that can be realistically defended).

+Human-resource factors (expertise and track record in a proven management team).

+Strategic alliances with key market players (unique partnerships, joint ventures and/or exclusive licenses that are equally beneficial for all parties).

+Location (ownership or favorable long-term lease of property with unique market attributes).

+Marketing/distribution (unique branding and/or distribution rights that will lead to a sustainable and powerful image)."

From an article in the OrlandoSentinel.

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Technology Aids Entrepreneurs in Middle Income Countries

"Entrepreneurs in middle income countries are beginning to catch-up to their counterparts in richer economies by tapping into technologies unavailable to them just a year ago, according to the seventh annual Global Entrepreneurship Monitor (GEM). Directed by Babson College and London Business School, the report is the largest annual measure of entrepreneurial activity worldwide, compiled by more than 150 scholars from 35 countries.

GEM 2005 also found that entrepreneurs with 'innovative' businesses drive higher growth rates of GDP per capita. Additionally, middle income countries tend to start more businesses than high income countries. Yet 'quantity' of start-ups does not necessarily translate into 'established' businesses..."

Read more in this Babson College press release.

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Guide to Winning Friends & Influencing People

"This guide to the ideas in Dale Carnegie's How to Win Friends and Influence People highlights the core ideas of the book in outline format. The guide and the book are intended to help you build more effective relationships and motivate others. The guide identifies these as the three fundamental tenets repeated throughout the book:

Never criticize, condemn or complain.
Self-criticism is extremely rare. Your criticism won’t be welcome.
Criticism makes others defensive and resentful.
Positive reinforcement works better.

Make the other person feel important.
People deeply desire to feel important and appreciated.
Praise others’ strengths and they’ll strive to reinforce your opinion.

Frame requests in terms of what motivates others.
Ask yourself: “Why should someone want to do as I ask?”

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Gathering Competitive Intelligence

"The most important distinguishing feature of successful companies is how they monitor and respond to events and conditions in the
environment in which they operate. Unless you notice what is happening, you will blunder along in the dark, not knowing where you are going, what your competitors are doing, or what business opportunities are passing you by.

Enter competitive intelligence: a systematic and ethical programme for gathering, analysing, and managing information about your business environment that can affect your company's plans, decisions, and operations.

The potential benefits of implementing a CI programme are many. Timely intelligence will help you to anticipate and minimise risk, identify business opportunities and new markets, make sound decisions, innovate, improve your strategic planning, and allocate your resources more effectively. Intelligence operations are not a form of spying; they may (indeed, should) be conducted both legally and ethically. They can be set up with little cost, carry little risk, and are easily concealed..."

Read more in this article from FreePint.

Technorati Tags: management, intelligence, information, business

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When Should You Sell Your Tech Business?

This post from Seth Levine identifies two peak times for the sale of a software/technology business. The first is the point when the technology has been proven, just before the company enters into "what Gartner would call the trough of disillusionment but what entrepreneurs would more likely call the long hard slog." The second optimum sale point would be upon emerging from slog, when "you now have real critical mass and market validation/adoption. Your revenues are well into the double digits and you’re probably cash flow positive even as you re-invest in your business to keep your growth up."

Technorati Tags: vc, venture capital, startups, business, technology

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Getting Rid of Spyware

"Spyware is one of the most challenging — and frustrating — problems faced by today's computer users and administrators. Even the savviest Internet surfers have discovered their systems are riddled with unwanted software that display popup ads, modify their search engines or home pages, slow down performance or even make the system unstable."

If you suspect that your system is infected with adware, spyware, or other malware, check out this article from information week for instructions on how to get rid of it.

Found viathis WisBlawg post.

Technorati Tags: technology, software, computers, spyware

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Five Ways to Raise $100,000

"They key points to remember when you're looking for funds to start your own business are:

Make sure your business plan is well thought out, well presented and, most of all, realistic.
Most sources of funding, whether it's friends and family, banks, venture capital companies or a Business Angel, will want to see that you're taking on some of the risk yourself. Nobody wants to feel that it's only them that are at risk of losing their investment.
Spread your debt around between a number of sources. The more people you can get involved in your business, the more advice and expertise you can call on, and there's always the possibility of extra funding if your business does well.
You may have to sell a stake in your business to secure the funding you need. Don't be afraid to go down the 'Dragon's Den' route of funding. If your creditors have a stake in the venture, they're much more likely to help you out of trouble than see their investment disappear.
Most of all, if you believe you have a good idea then make something of it. Don't give up..."

Read more in this post from MSN Money UK.
'."

Technorati Tags: venture, capital,, vc, startup, entrepreneurship

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Risks & Reward of Franchising

"There are several very good reasons to pursue a franchise as a first time entrepreneur.

First, most franchises have a business model already in place that has been tested and refined...Second, the systems should be well established and ready to go...Third, a franchisor should be able to provide significant help in marketing...Fourth,...a franchise eliminates the need to come up with an original, creative business opportunity...

With all of these advantages, there are several sobering disadvantages of franchising...Beyond the contractual issues that arise in franchising...over time, many franchisors realize that they can be just if not more effective on their own without paying the monthly percentage of sales to the franchisor...These on-going fees can eat away at profit margins if there is not real value added in what the franchisor provides.

Another concern expressed by franchisees is that with all of the rules and standardized procedures, they tend to feel more like an employee than a business owner...A financial risk to consider is that many first time entrepreneurs can only afford newer franchised concepts..All franchise opportunities are not created equal."

Read more in this excellent article from the Entrepreneurial Mind.

Technorati Tags: entrepreneurship, startup, franchising

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2005 Movies in Review

This is an updated list of 2005 movies I have seen. Four star movies are those that I highly recommend. Expertly crafted, captivating stories, well acted, haunting, amazing. If not masterpieces, then pretty close. My favorites.

Three and half star movies are just a smidge below, maybe missing one of the foregoing elements. Greatly entertaining, highly superior movies. Also strongly recommended.

Three star movies are those just below the foregoing. Worth seeing, worth a trip to the theater. Recommended.


**** Four Stars (Very Highly Recommended)

Capote
Walk the Line
Syriana
The Chronicles of Narnia: The Lion, the Witch and the Wardrobe
Munich

***1/2 Three Point Five Stars (Highly Recommended)

Good Night and Good Luck
Pride and Prejudice
Batman Begins
June Bug
Sin City
Crash
Cinderella Man
The Constant Gardener
Wallace & Gromit: The Curse of the Were-Rabbit
Breakfast on Pluto
The Corpse Bride
A History of Violence
Match Point

*** Three Stars (Recommended)

The Wild Parrots of Telegraph Hill
Jarhead
Millions
Harry Potter and the Goblet of Fire
The Hitchhiker's Guide to the Galaxy
Star Wars: Revenge of the Sith
Me and You and Everyone We Know
March of the Penguins
Hustle & Flow
Broken Flowers
Proof
Lord of War
Everything is Illuminated
Serenity
Shopgirl
The Weather Man
Rent

**1/2 Two Point Five Stars (Mixed Bag)

Brokeback Mountain
King Kong
North Country
Charlie and the Chocolate Factory
The Wedding Crashers
The 40 Year-old Virgin
Dreamer: Inspired by a True Story
Sahara
Flightplan
Chicken Little
Sky High

Technorati Tags: movies

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Free Complete Toolkit for Boards

This virtual library designed by Carter McNamara, MBA, PhD provides a bonanza of resources for board members, those contemplating serving on a board, or companies organizing or working with an existing board of directors, stating:

"Corporations, whether for-profit or nonprofit, require a governing Board of Directors. Governing Boards have certain legally required duties, including duties of care, loyalty and obedience... Some people believe in life stages of Boards, including that they 1) start out as "working" Boards where members focus on day-to-day matters in addition to strategic matters, 2) evolve to "policy" Boards where members focus mostly on strategic matters, and 3) eventually become large, institutionalized Boards that often have small executive committees and maybe many members some of which are "big names" to gain credibility with funders or investors.

Boards can have a broad range of "personalities." For example, Boards of large for-profit and nonprofit corporations might be very formal in nature with strong attention to Parliamentary procedures, highly proceduralized operations, etc. In contrast, Boards of small for-profit, family-owned corporations might be very informal in nature and comprised mostly of members of the family, rather than of independent members (members from outside of the family and/or corporation)...

Recent illegal activities, particularly in large, for-profit corporations, have brought much attention to the roles and responsibilities of Boards, especially to their degree of effective oversight ("oversight" as in ensuring strong, effective organizations), ethical operations and approach to compensating senior executives..."

Technorati Tags: business, management, entrepreneurship, startup, legal

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Lakota Instructions for Living

"Friend do it this way - that is,
whatever you do in life,
do the very best you can
with both your heart and mind.

And if you do it that way,
the Power Of The Universe
will come to your assistance,
if your heart and mind are in Unity..."

Read more in this post from conscious living journal.

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FactSheets from Barclays Business Banking

The Barclays Business Information Factsheets Service provides concise but comprehensive information on various aspects of running a business. Below are examples of the type of information provided:

1. A guide to writing a Business Plan
2. A guide to renting premises for your business
3. Could you run your own business?
4. A checklist for financing a new business
5. How to forecast cash flow

Technorati Tags: business, entrepreneurship, startup

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Reading Between VC Lines

This post by Guy Kawasaki explains how to understand what a venture capitalist is really saying. For instance, at to whether a VC is interested in investing in your company, each of the following means "No":

'I liked your company, but my partners didn't.'
'If you get a lead [investor], we will follow.'
'Show us some traction, and we'll invest.'

Technorati Tags: business, venture capital, entrepreneurship, startup

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Technology Trends for 2006

See this post by Manav Sehgall the provides links to 9 different sources of technology predictions for 2006. Common themes include security, offshoring debate, Web 2.0, Year of the Blog and Software as a Service.

Technorati Tags: technology

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Open Source to the Rescue

"The traditional enterprise software business model is broken. A rabid search for new customers and revenue growth has caused sales and marketing costs to spiral out of control...

This quest for additional revenue has created an untenable cost structure for the industry - one that doesn't serve vendors or their customers. In essence, vendors spend a lot of money to convince customers to buy, and then charge them a lot of money for the license which covers the sales and marketing costs. We're charging the customer just to sell to them.

Enter Open Source..."

Read more in this SandHill.com article.

Technorati Tags: software, open source, technology

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States Add Laws on Data Breaches

"Companies struggling to keep up with a patchwork of state laws related to data privacy and information security have three more to contend with, as new security-breach notification laws went into effect in Illinois, Louisiana and New Jersey on Jan. 1.
Like existing statutes in more than 20 other states, the new laws prescribe various actions that companies are required to take in the event of a security breach involving the compromise of personal data about their customers...

For companies that do business nationally or in various states, the smorgasbord of state laws poses a growing problem, because the measures often specify different triggers for notifications and set varying requirements on what needs to be disclosed, to whom and when..."

Read more in this article from Computerworld found via this post from Gahtan's Technology and Internet Law Blog.

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ESOP No Fable, but Viable Exit Stratgy

"One of the great ironies of entrepreneurship is that many people spend years building their companies, only to undo all of that work at the very end by deciding to sell the business to the wrong person. Decisions like that don't have to be made, especially today. Employee stock ownership plans, or ESOPs, have become a mainstream alternative for business owners who wish to sell their business but want it to remain largely intact...

Legally, an esop is a tax-qualified retirement plan. It borrows money to buy the owner's shares, then allocates them to employee retirement accounts as the loan is paid off. In certain circumstances the selling shareholders can defer capital gains taxes...

But selling to the employees? Will the inmates be running the asylum?

The legalities are clear and reassuring to nervous managers. The business runs as usual, with the CEO and the board in charge. The ESOP shares' votes are in the hands of a trustee, who is appointed by the board, just like the CEO. What's not so clear are people's expectations...

One key to success is educating employees about what it means to be an owner. Yes, you will benefit in a major way if the company makes money and grows; here's how. No, you don't get to tell your boss what to do, and no, you aren't automatically entitled to know what she makes..."

Read more The Ultimate Employee Buy-in from Inc.com.

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Cool Photos from the Pittsurgh Flickr Pool

slopes
Originally uploaded by sharwest.

Terabull Tahls
Originally uploaded by UrbanTiki.

Just some of the photographs recently posted to the Pittsburgh, PA Pool on Flickr.

The Morning's Best View
Originally uploaded by btezra.

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Licensing University Technology

"What do Yamaha synthesizers, gene splicing and DSL have in common? They are all based on technology licensed from universities. As these examples show, universities often develop and license new cutting edge technologies. In this brochure [from Fenwick & West via Mondaq], we will walk you through the process of determining whether a university license may be right for you, how to obtain a university license, and the deal terms you can expect to find in a university license."

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Venture Capital Conferences Directory

"The world of venture capital is built on relationships that foster ideas into actions. Conferences and discussion forums are, without a doubt, ideal environments in which these partnerships are born and developed. Venture Capital Conferences brings together a comprehensive online database focused on venture capital and emerging technologies events in America."

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Business Planning Links

"This library of resources [from Business Resource Software] contains links to hundreds of sites offering research materials on every area of planning a business including: venture capital, new products, market analysis, competitive analysis, production management, tax problems, legal issues, financial statements, writing a business plan and much more."

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Stress Busters for the New Year

"Set Realistic Goals...

Use the Power of Positive Self-talk
The best way to eradicate those "weeds" that fill the "garden" of your subconscious mind is to practice telling yourself positive, self-enhancing thoughts every time you catch yourself being negative...You can re-program your subconscious by recognizing your negative, self-defeating thinking patterns...and changing them on the spot....

Choose an Optimistic Interpretation of Events...

Change Your Diet and Exercise Habits...

Embrace Opportunities for Relaxation...
One of the best stress busters is regular relaxation breaks. These can range from spontaneous mini-vacations (e.g., weekends), to a relaxing walk in a serene place (e.g., the beach or near a babbling brook), to taking 15 minutes twice a day to meditate right in your office. There are many excellent relaxation tapes, yoga exercises, and visualization/hypnosis tapes on the market. The key to this is to make the time, be sure you will not be interrupted and stick to your plan. Recharging your emotional batteries is healthy and easy to do, as long as you take charge of yourself to allot the time and make relaxation part of your weekly routine.

Stay Close to Positive People and Influences
Unfortunately, many of us are married to, related to, or work for negative, pessimistic people. These are folks who have their own fears of change, do not take risks, and wallow in their own misery. These members of the "negativity club" want you to join them, because that helps them to justify their own behavior and ideas...So, be a "Teflon" person...let the comments of these folks bounce off you...Find positive, optimistic, successful people to get close to, who will encourage you to move away from your habitual, "inside of the box" ideas. What a breath of fresh air that will feel like to you!

Search for Opportunities for Fun and Laughter..
Bringing fun into your life is immensely important for your health. Endorphins, which override stress hormones and produce a sense of release and calm, are released by the brain every time we laugh or engage in a fun activity. In fact, the immune system is impacted in a powerful way by fun and laughter...

Read more in this article by Dr. Jack Singer.

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Advice & Resources for College Entrepreneurs

From this article from Quintessential Careers:

"The most common piece of advice among experts on collegiate entrepreneurism seems to be -- just do it. Don't wait too long to launch your business. Don't make excuses for why it won't work or why you can't do it. Don't let fear, lack of money, insufficient time, or other obstacles stand in your way. Even if you fail, you still will have gained a great learning experience."

Other tips from the article:

"Be a problem-solver. Find a need or a niche and demonstrate that your idea can fill it. Do your homework so you truly understand the market into which your product or service falls.

Gain exposure to others who have started successful businesses, especially other college students and recent grads who can inspire and motivate you.

Be innovative. Hone your idea by sharing knowledge and brainstorming with other college students.

Network and get a mentor...

Take on extracurricular leadership roles to gain management practice and consider working at an entrepreneurial company to attain practical experience...

Speak with confidence and contagious enthusiasm when you tell others about your business idea -- especially when you tell investors -- but don't be too cocky...

Start your business and get class credit, too..."

And to help you along in your endeavors, check out this excellent collection of Resources for College Entrepreneurs.

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Guide to Startup Forecasting

"Forecasting business revenue and expenses during the startup stage is really more art than science. Many entrepreneurs complain that building forecasts with any degree of accuracy takes a lot of time--time that could be spent selling rather than planning. But few investors will put money in your business if you're unable to provide a set of thoughtful forecasts. More important, proper financial forecasts will help you develop operational and staffing plans that will help make your business a success."

This article by Asheesh Advani provides some detail on how to go about building financial forecasts when you're just getting your business off the ground.

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VC Presentation 10/20/30 Rule

"It’s quite simple: a PowerPoint presentation should have ten slides, last no more than twenty minutes, and contain no font smaller than thirty points...

Ten is the optimal number of slides in a PowerPoint presentation because a normal human being cannot comprehend more than ten concepts in a meeting...If you must use more than ten slides to explain your business, you probably don’t have a business.

The ten topics that a venture capitalist cares about are:

1. Problem
2. Your solution
3. Business model
4. Underlying magic/technology
5. Marketing and sales
6. Competition
7. Team
8. Projections and milestones
9. Status and timeline
10. Summary and call to action

Read more in this post by Guy Kawasaki. For another perspective on what a VC presentation should include, see this Brad Feld post where he identifies the following questions as being necessary to answer:

1) What is your vision?
2) What is your market opportunity and how big is it?
3) Describe your product/service
4) Who are your customers?
5) What is your value proposition?
6) How do you sell?
7) How do you acquire customers?
8) Who is your management team?
9) What is your revenue model?
10) At what stage of development are you?
11) What are your plans for fund raising?
12) Who is your competition?
13) What partnerships do you have?
14) How do you fit with the prospective investor?
15) Other
- What assumptions are key to the success of the business?
- What "gotchas" could change the business overnight? New technologies, new market entrants, change in standards or regulations?
- What are your company’s weak links?

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Habitat for Humanity Bicycle Challenge

uphill
Originally uploaded by TigerTigerTiger.

My daughter is one of the student leaders organizing the Habitat for Humanity Bicycle Challenge for 2006.

She and 89 other college students, in an epic effort to raise awareness and money for Habitat for Humanity, will saddle up and spend this summer biking 4,000 miles across North America.

Every night, the riders will give presentations and answer questions in churches and community centers, trying to increase Habitat's visibility, stimulate the formation of new chapters, and encourage donations.

To make HBC 2006 a success, the riders need your help! Please take a moment to browse through a list of frequently asked questions and their answers, and check out some more information about the Bike Challenge.

If you like what you see, consider raising money and awareness by biking coast-to-coast for Habitat (applications posted soon), donating to the trip, or becoming a corporate sponsor.

Since each rider is required to raise $4,000 to go on the trip, if you decide to donate, please include my daughter's name, Deirdre Cerminaro, so that she may receive credit for your kind contribution.

Finally, the riders are specifically in need of a corporate donation of three digital projectors to use each evening to make their presentations. Please contact me if you or someone you know would be interested in donating them.

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New Years Wishes

New Years wishes from Ed Morrison:

May we see a world next year in which more children are safe and healthy, more adults do good work, and each of us are connected with more ties of understanding and compassion.

Via this Brewed Fresh Daily post.

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Starting a Small Business Articles

This post from lifehack.org provides links to three articles by Jerry Glenn at the Entrepreneur Network on how to start a small business. The articles provide information on selecting a business to start, choosing the type of business organization, how to raise money for your small business and writing a business plan.

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Links to Entrepreneurial Resources

"Entrepreneurial Resources (EntrepreneurialResources.info) is a Subject Tracer Information Blog developed and created by the Virtual Private Library. It is designed to bring together the latest resources and sources on an ongoing basis from the Internet for entrepreneur resources...This site has been developed and maintained by Marcus P. Zillman"

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Tech Savvy College Students Available

"Entrepreneurs and small businesses are often in need of affordable technology assistance. With limited budgets, many of the existing solutions are too costly. The idea of reaching out to tech savvy college students on a part-time basis not only makes financial sense but also develops these soon-to-be-graduates for the workforce. This concept can even enhances local economic development initiatives by addressing brain drain while encouraging students to pursue entrepreneurship." So states TechStudents.net, a service that connects small business with technology students.

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Management Science Portal

"12Management is a management science portal that summarizes over 300 management methods, models and organizational theories, combining scientific rigor with practical relevance. The methods are classified into 12 (partly overlapping) management disciplines."

Via this post from Business & Technology Reinvention.

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Use the Law to Strategic Advantage

What all firms have in common is the ability to integrate legal considerations into the firm?s overall strategy, not only to stay out of trouble but also to create value and manage risk. That?s what winning legally is all about. So contends Constance E. Bagley, associate professor of business administration at Harvard Business School, in this interview from HBS Working Knowledge. From the interview:

"Q: How can managers ensure that legal strategy aligns with corporate strategy?

A: Framing is critical here. There are legal aspects to every corporate strategy. Law is not separate and apart from what managers do. The law affects each of Porter's Five Forces as well as the resources and capabilities of the firm. The availability of patents may be key to deciding what barriers to entry exist. The enforceability of covenants not to compete and assignments of inventions may determine who captures the value of knowledge created by employees. The risk of product liability may make it unwise to pursue certain marketing strategies..."

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Powerful Year End Questions to Answer

"The questions we ask determine the answers we get. And it is from these answers that we create the actions of our day-to-day lives. This simple progression of questions to answers to actions implies that if we want more effective and productive actions, we can start by asking ourselves better questions....Will it take some time? Yes it will. But it will be time well-spent...Schedule a two hour appointment (or schedule 10 minutes each day and do one question a day) with yourself in a quiet place, with your Journal, computer or just a pad of paper and record your answers to these questions.

1. What did I learn this year?...
2. What did I accomplish this year?...
3. Which accomplishments am I proudest of?...
4. Knowing what I know now, what would I have done differently in the past year?...
5. What will be my greatest lasting memories of this year?...
6. In what ways did I contribute?...
7. What were my biggest challenges or obstacles?...
8. What obstacles did I overcome? And how did you do it?...
9. Who are the most interesting people I met?...
10. How have they changed my life?...
11. How am I different now than I was at the start of the year?...
12. What am I most grateful for?...
13. What else do I want to reflect on?...

These are thirteen powerful questions. But the power comes not from asking them, but from answering them..."

Read more in this post from getmotivation.com.

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Lawyering in the Dark?

This J-Walk Blog post offers an instructive perspective on sending copyright infringement "cease and desist" to bloggers. I wonder if offering a license or otherwise granting the J-Walk blog permission to use the copyrighted material might have better served the interests of the copyright holder, the National Geographic Society. The post is reprinted below:

"Today I received a certified letter from Susan Borke, the Deputy General Counsel of the National Geographic Society. She claims that the J-Walk Blog contains nine (9) instances of unauthorized use of photographs and excerpts from several National Geographic articles. I must remove them all.

Problem is, she didn't give any specific URLs. I could find only three photos (which I've deleted). She also claims "unauthorized use of the NGS name and logo." I've never reproduced their logo. Is she telling me that I can't even write "National Geographic" in a blog entry?

So what did she accomplish by sending me a form letter?

1. She has changed my opinion of the NGS. In the past, I've always had a very positive attitude about the organization. Not any more.
2. Over the years, I've probably sent 5,000 or so visitors to their site. Now, I will never link to a National Geographic site again.

Nice job, Deputy General Counsel."

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Open Source Year in Review

Reprinting a post from Texas Venture Capital Web 2.0 Blog. Please see the post for a link to the article mentioned:

"CIO Magazine has a great list of the 'Top Five Open Source Events of 2005' on their website. The list:

Red Hat makes money from free software
Sun is making everything open source (except Java)
Motorola uses Linux in their phones
Firefox created 100MM downloads
VCs invested $400MM in open source start ups in 2005

They ask the question: What will happen in 2006?"

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Tuck Center Case Studies and Notes

The Tuck Center for Private Equity and Entrepreneurship offers for download informative case studies and other excellent teaching materials that are used in Tuck's MBA courses. Topics covered include angel investing, buyouts, private equity deal structures, private placement memoranda, venture capital due diligence, private equity asset allocation, venture capital portfolio management, limited partnership agreements and exit strategies.

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Helpful Articles for Entrepreneurs and Investors

This collection of articles from angelscorner.com provides useful information on accepting and making private equity investments, as well as business planning, financial planning, business valuation, marketing and tax issues.

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The ROI on ROI Computations

"While ROI analysis is a must-do for any self-respecting management team, ROI is often misused and little understood.

Over the years, after countless ROI analyses for leading software providers, my opinions have fundamentally shifted about the use of ROI analysis and how meaningful ROI results can be. In short, my take on ROI has shifted away from the belief that the results of ROI are factual and the goal of the ROI exercise is to find the answer...the real teaching of ROI is not in solving the equation, but in learning through the process. ROI is a journey not a destination."

Read more in this excellent article from Darwin Online.

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Automatic Corporate Jibberish Generator

"Welcome to the Corporate Gibberish Generator on AndrewDavidson.com. Enter your company name and click...to generate several paragraphs of corporate gibberish suitable for pasting into your prospectus. (The gibberish is geared more toward Internet and technology companies.)" Here, for example, is a bit o' BizzBangBuzz gettin' jibby wit' it:

"We here at BizzBangBuzz have come to know that it is better to repurpose vertically than to matrix ultra-magnetically...better to revolutionize intuitively than to architect dynamically...BizzBangBuzz has refactored the concept of leading-edge, proactive fractal Total Quality Control. Think customer-directed. Think six-sigma, social-network-based. Think cross-media. But don't think all three at the same time..."

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Entrepreneurship Essentials

"While a bold idea, unflagging determination and patient financial backers are all crucial to successful start-ups, entrepreneurs must also focus on less dramatic aspects of running a company, according to seasoned entrepreneurs who spoke at the 8th Annual Wharton Entrepreneurship Conference.

This means paying attention to investment relationships, exit strategies and the mechanics of building a business, including hiring, firing, marketing and distribution..."

Read more in this Knowledge@Wharton article for CNET.

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Business Plan Basics

Well worth reading is this summary from Joe Hadzima "of the important information conveyed by some 50 speakers in over 100 hours of practical presentations at the M.I.T. Business Plan Competitions Seminars over the past six years." An example of the advice offered:

"Everything Must Tie Together. The Business Plan should be internally consistent and tie to any presentation you will make. This seems obvious, but I can't tell you how many times I have seen plans which present a cluttered, inconsistent message. We all have difficulty critiquing our own work, so have your plan reviewed by several people who haven't been involved in putting it together and ask them for frank feedback."

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My Favorite Movies of 2005

Wow, I have seen way more movies than usual this year. Here is my list grouped by categories. I recommend any movie I have awarded three or more stars to.

**** Four Stars

Batman Begins
Capote
Good Night and Good Luck
Pride and Prejudice
Walk the Line
Syriana
The Chronicles of Narnia: The Lion, the Witch and the Wardrobe

***1/2 Three Point Five Stars

June Bug
Sin City
Crash
Cinderella Man
The Constant Gardener
Wallace & Gromit: The Curse of the Were-Rabbit
Harry Potter and the Goblet of Fire


*** Three Stars

King Kong
The Wild Parrots of Telegraph Hill
Jarhead
The Hitchhiker's Guide to the Galaxy
Star Wars: Revenge of the Sith
Me and You and Everyone We Know
March of the Penguins
Hustle & Flow
Sky High
Broken Flowers
Proof
Lord of War
Everything is Illuminated
The Corpse Bride
A History of Violence
Serenity
Shopgirl
The Weather Man
Rent

**1/2 Two Point Five Stars

North Country
Charlie and the Chocolate Factory
The Wedding Crashers
The 40 Year-old Virgin
Dreamer: Inspired by a True Story
Sahara
Flightplan
Chicken Little

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Season's Greetings from One PPG Place

Tree, Wreaths, & Points
Originally uploaded by Marc_714.

This is a great view of the ice skating rink, Christmas tree and my regular entrance to our offices here in downtown Pittsburgh, PA. Merry Christmas to all and to all a good holiday season.

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Forms of Business Ownership

"One of the first decisions that you will have to make as a business owner is how the company should be structured. This decision will have long-term implications, so consult with an accountant and attorney to help you select the form of ownership that is right for you. In making a choice, you will want to take into account the following:

Your vision regarding the size and nature of your business.
The level of control you wish to have.
The level of 'structure' you are willing to deal with.
The business's vulnerability to lawsuits.
Tax implications of the different ownership structures.
Expected profit (or loss) of the business.
Whether or not you need to re-invest earnings into the business.
Your need for access to cash out of the business for yourself. "

Read more in this guide from the SBA that explains the basics regarding the essential choices - sole proprietorship, partnership, corporation and limited liability company.

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UNC Intellectual Property Guide

This Intellectual Property Guide prepared by the Small Business and Technology Development Center, a business development service of the University of North Carolina, provides a good overview and resources for businesses and inventors. The Guide covers the basics of Patent, Trademarks and Copyrights.

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Ten Questions for Evaluating an IP Portfolio

From a Philip Brooks' Patent Infringement Updates post. Please refer to Mr. Brook's post for related links.

"Christopher A. Colvin of Kramer Levin Naftalis & Frankel LLP and Tom Steiglehner of Silver Point Capital present 10 questions as a framework for evaluating a company's intellectual property portfolio in the December print issue of the Journal of Corporate Renewal from the Turnaround Management Association.

What are the company's three most valuable IP assets?
What are the company's three least valuable IP assets?
What is the company's offensive IP strategy?
What is the company's defensive IP strategy?...
What is the company's foreign IP strategy?
What will the company's IP portfolio look like in five years? 10 years?
Has the company 'locked up' its IP assets?
Who is managing the company's IP portfolio?
Has IP management contributed to business shortcomings?
Is the company's IP strategy thoroughly integrated with its overall business plan?"

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Ten Lessons from the Dot Com Shakeout

"Our primary mission in creating the Business Plan Archive is to enable entrepreneurs of the future to learn from the lessons of the past. In the interest of sparking discussion and ideas, here are ten lessons we take from our observations of the dot com shakeout.

Nothing changes overnight.
New stuff doesn't replace old stuff.
Too early to market? Too bad.
Many startups were fundamentally uncreative and "un-Internet
All we, like sheep, will go astray (with enough pressure).
Free is folly.
We used narrowcast to broadcast.
The $50 million rule can kill.
It's hugely difficult to build chicken and egg simultaneously.
Prediction tools must improve."

Read more at Business Plan Archive.

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Rimers Rules for Open Source Investing

Venture capitalist Danny Rimer has made investments in companies across the field. In this BusinessWeek interview, venture capitalist, Danny Rimer talks about the criteria he uses in making an investment in an open source software company, stating:

"Early on we had to come up with key criteria. It's not difficult to create a successful small business if you're an open-source vendor. But we're a VC firm looking to make returns [of 10 times our initial investment] for [our investors]. We're looking for $100 million in revenue potential. A small business that's highly profitable, making $15 million a year, is not going to move the dial for us. We're looking to invest in major software vendors.

So what are those criteria?

I call them the three Cs. These are necessary from the onset to make it an attractive story. The first is community. There has to be a huge amount of interest in it. [MySQL, Zend, and TrollTech] were already incredibly popular [when we invested]. The community is your marketing and evangelism arm. They're going to contribute and make sure this piece of software truly becomes mainstream.

The second C is commodity. Open-source companies absolutely can't have a new, innovative technology. They have to be smarter approaches to existing technology. They have to be [technologies] that developers and buyers already understand...

The third C is price cushion. There has to be a big enough difference between what proprietary vendors are charging and open source is charging, so that over time open-source companies can charge more and still have enough of a price cushion to make it interesting for customers."

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Guide to Starting Your Business

"Chris Campbell has compiled an excellent nut & bolts guide to starting your business...He covers chosing a structure, finding an accountant, bookkeeping, taxes, deductions, lawyers, copyright, contracts, and invoices, among other things." For links to the guide, please see this post from Startup Fever.

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Happiness Breeds Success

Reporting on the results of a recent study:

"'When people feel happy, they tend to feel confident, optimistic, and energetic and others find them likable and sociable,' said Sonja Lyubomirsky of the University of California, Riverside. 'Happy people are thus able to benefit from these perceptions.'...

Among the good things that come from happiness: positive perceptions of self and others, sociability, creativity, a strong immune system, and effective coping skills."

Read more in this article from LiveScience

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How Start-up Capital Works

"When you start a new business, you need money to get it off the ground. You need the money to rent or purchase space for the business, furniture and equipment, supplies, professional fees such as legal and accounting, as well as continuing the research and development of your product or service. You may also need money to pay employees. There are several places where you can get the money that a new business needs, but first you need to think about which type of funding will work best for your company."

This article from Howstuffworks explains in understandable terms the differences among various types of financing, helps you decide which is best for your company, and gives you tips on obtaining the funding you need to get your business off to a running start.

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The Ideal Business

"The ideal business sells the world...offers a product which enjoys an "inelastic" demand....which cannot be easily substituted or copied...has minimal labor requirements...low overhead...does not require big cash outlays or major investments in equipment...has cash billings...is relatively free of all kinds of government and industry regulations...easily moveable...satisfies your intellectual (and often emotional) needs...leaves you with free time...[and] is one in which your income is not limited by your personal output..."

Read more in this article from Richard Russell.

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How to Value a Patent

This post from Philip Brooks points to an article written by "J. Timothy Cromley, CPA, for the American Institute of Certified Public Accountants (AICPA) about the '20 Steps for Pricing a Patent.' He is an accredited senior appraiser in business valuations, a professional engineer and a registered U.S. patent attorney providing professional business valuation services for the Valuation Advisory Services Group of JPMorgan Chase & Co. "

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The Best 2005 Web 2.0 Software

"In spirit of the holidays, here is a list [from Don Hinchcliffe]of some of the best Web 2.0 software...You may have heard of some of these, but hopefully you'll find a few nice new Christmas presents under your Web 2.0 tree." Found via this post from robhyndman.com.

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The Leader-Follower Leadership Model

This is the index to a series of posts by Chris Newham about the fourteen features of proposed model of leadership, A Vision of Leadership. Chris solicits your comments about the proposal.

The model is driven by two pairs of values that are often perceived as competing: lead and follow, implement and innovate. The index follows the order of posting. Each model feature is italicized in the post title. Found via this Random Thoughts from a CTO post.

INTRODUCTION

• Missing, a Follower
  
• Visions of Leadership
  
• A Vision of Leadership - A Tetrahedral Model
• A Vision of Leadership - A Heartfelt Vision
  

SIX LEADERSHIP PRACTICES

• Respect Empowers Follower and Leader
  
• Realizing Drives Innovation and Implementation
  
• Structuring - How Leaders Implement
  
• Responding - Follow and Innovate
  
• Conforming - Follow and Implement
  
• Improvising - Lead and Innovate
  
• Six Practices Through Others' Eyes
  

FOUR OUTCOMES OF LEADERSHIP

• Visualization - The First Face of Leadership
  
• Organization for Implementation
• Innovation vs Implementation
  
• Contribution - The Essence of Following
  
• Collaboration for Innovation
  
• Donald Trump and A Vision of Leadership
  
• Lean Leadership
  

FOUR LEADERSHIP VALUES

• Innovation Occurs on a Foundation of Organization
• Implementation Energized by Collaboration
• Lead While Staying Grounded
• A Conscious Decision to Follow is an Act of Leadership

CONCLUSIONS

• Lessons From a Vision of Leadership
• What more would be possible if . . .

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About Solving Pain

The [non]billable hour posts::

"Barry Moltz has a recap of the10 Lessons his students should have learned in his entrepreneurship class. The best one:

Every Business is About Solving Pain. Find the People that will Pay for it."

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SCORE Template Gallery

The Service Corp of Retired Executives offers a collection of small business templates at Template Gallery. Included are templates for business plans, break-even analysis, making a loan request and many other useful planning tools. The templates as available as Word or Excel documents as well as PDF format.

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Christmas & Hannukah to Merge

Continuing the current trend of large-scale mergers and acquisitions, it was announced today at a press conference that Christmas and Hannukah will merge. An industry source said that the deal had been in the works for about 1300 years.

While details were not available at press time, it is believed that the overhead cost of having twelve days of Christmas and eight days of Hannukah was becoming prohibitive for both sides. By combining forces, we're told, the world will be able to enjoy consistently high-quality service during the fifteen days of Christmukah, as the new holiday is being called.

Massive layoffs are expected, with lords-a-leaping and maids-a-milking being the hardest hit.

As part of the conditions of the agreement, the letters on the dreidel currently in hebrew, will be replaced by latin, thus becoming unintelligible to a wider audience.

Also, instead of translating to "a great miracle happened there," the message on the dreidel will be the more generic "miraculous stuff happens."

In exchange, it is believed that Jews will be allowed to use Santa Claus and his vast merchandising resources for buying and delivering their gifts.

In fact, one of the sticking points holding up the agreement for at least three hundred years was the question of whether Jewish children could leave milk and cookies for Santa even after having eaten meat for dinner. A breakthrough came last year, when Oreos were finally declared to be kosher.

All sides appeared happy about this. A spokesman for Christmas, Inc., declined to say whether a takeover of Kwanzaa might not be in the works as well. He merely pointed out that were it not for the independent existence of Kwanzaa, the merger between Christmas and Hanukkah might indeed be seen as an unfair cornering of the U.S. holiday market. Fortunately for all concerned, he said, Kwanzaa will help to maintain the competitive balance.

He then closed the press conference by leading all present in a rousing rendition of "Oy, Come All Ye Faithful."

(An oldie but a goodie)

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Year End Tax Planning Tips

This post from Fresh Inc. offers year end tax tips including:

"Pay off accounts...Make capital investments...Stock up on supplies...Distribute profits...Save for retirement...Make charitable donations...Get slow movers off your books...Adjust your estimated taxes..."

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Model Venture Capital Documents

The National Venture Capital Association offers this
"'template' set of model legal documents for venture capital investments put together by a group of leading venture capital attorneys. The model venture capital financing documents consist of:

Term Sheet
Stock Purchase Agreement
Certificate of Incorporation
Investor Rights Agreement
Voting Agreement
Right of First Refusal and Co-Sale Agreement
Management Rights Letter
Indemnification Agreement

...The model documents aim to:

-reflect and in a number of instances, guide and establish industry norms
-be fair, avoid bias toward the VC or the company/entrepreneur
-present a range of potential options, reflecting a variety of financing terms
-include explanatory commentary where necessary or helpful
-anticipate and eliminate traps for the unwary (e.g., unenforceable or unworkable provisions)
-provide a comprehensive set of internally consistent financing documents
-promote consistency among transactions
-reduce transaction costs and time"

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How Business Bankruptcy Works

This article from Howstuffworks provides an easily understandable overview of business bankruptcy stating:

"Bankruptcy is one of the most complex areas of law, incorporating elements of contract law, corporate law, tax law and real estate law. In recent years, several high-profile corporations like Enron, WorldCom and Adelphia have filed for bankruptcy. Although businesses only accounted for about 2 percent of all bankruptcy filings in the United States last year, commercial bankruptcies can have a big impact on the economy because there can be a lot of money at stake.

In this article, we'll explain the different types of bankruptcy filings under United States law, figure out who pays what to whom, and describe the process of reorganizing a company and running it under bankruptcy."

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Private Equity Glossaries

The Center for Private Equity and Entrepreneurship of Dartmouth's Tuck School of Business provides a comprehensive Private Equity Glossary featuring everything from "'A'-Round" to "Zombie."

In case you were wondering: "A" Round is "a financing event whereby venture capitalists become involved in a fast-growth company that was previously financed by founders and/or angels." And a Zombie is "a company that has received capital from investors but has only generated sufficient revenues and cash flow to maintain its operations without significant growth."

Please see this post from Dane Carlson for another glossary of VentureSpeak from 3i.

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Happy Holidays? Bah Humbug

I avoid using the sappy, vapid phrase "Happy Holidays." I much prefer greeting others with "Merry Christmas" and, the more traditional, "Season's Greetings."

I find it hard to understand how anyone could be offended by such a greeting. For instance, many of my friends and colleagues are Jewish, and I am relatively certain that none of them has ever been offended by hearing a hearty "Merry Christmas" greeting from me. Nor am I offended when I am wished a joyous and happy new year when Rosh Hashana rolls around. If someone is wishing for me happiness and blessings, then I am all for it.

As Dave Hoggard puts it:

"My traditional holiday greeting is not intended as an insult or to disparage anyone, I just truly dislike the phrase "Happy Holidays". "Merry Christmas" means something. "Habari Gani" means something. "Happy Chanukah" means something. "Happy Holidays" means nothing more than "I hold no traditions nor beliefs dear and don't think you should either, but I hope your few days off of work are pleasant."

Or as David C. Stolinsky, M.D., who is Jewish, states in this provocative article:

"This year it seems that fewer people wish one another "Merry Christmas." Instead, in an effort not to give offense, they say "Happy Holidays."

Obviously, Christmas means the most to Christians, who make up the large majority of Americans. Yet non-Christians can also enjoy the beauty of the season, and they can honor the holiday without observing it – unless they are eager to take offense...

Some would distort freedom of religion into freedom from religion. They take offense at anything that does not accord with their own beliefs – or lack of belief. They insist that the nation revolve around them...

Is there too much happiness in the world? Is there a shortage of sadness and grief? Does hearing "Joy to the world" really cause a problem?

Is there too much friendship in the world? Is there a deficiency of hatred and strife? Does "Peace on earth, good will toward men" really sound oppressive?...

Is there too much fellowship in the world? Is there a dearth of hostility and ill will? Does a hearty "Merry Christmas!" really give offense?

Is there too much light in the world? Is there a scarcity of darkness and gloom? Do pretty lights really cause distress?

A wise man said that it is better to light one candle than to curse the darkness. But what would he have thought of those who curse the candle?"

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The Carbolic Smoke Ball: Funnier than the Onion?

The Carbolic Smoke Ball is a blog from one Judge Rufus Peckham in the style of the Onion, but, funnier (so claims a recent post with which I must agree). Just having the headlines show up in my rss reader ordinarily makes me smile. Some examples of headlines from recent "stories."

Lego Forced To Vacate World Headquarters Because Plastic Floors Can't Support Weight Of Employees
First 'Face Transplant' Patient Slips Out Of Hospital Without Paying Bill -- Because No One Recognized Her
Venus De Milo To Get Breast Enlargement To Boost Crowds At The Louvre
Ex-People's Court Judge Wapner Brought In To Speed Saddam Hussein Trial To Conclusion; Verdict Expected In 15 Minutes
FDA Recalls Insecticide "Raid" Because Of High Incidence Of Life-Threatening Disease In Insects
MIT Study Shows That Heat At Adequate Temperatures Can Prevent Freezing
Company Hits It Big Publishing Physician Waiting Room Magazines That Appear To Be Outdated
Most Hate Crimes Driven By Loathing And Detestation
Ted Williams' Head Thawed Out For Annual Press Conference

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The Wonderfulest Christmas in the United States of America

The gifted storyteller and former radio broadcaster John Henry Faulk recorded his Christmas story in 1974 for the program Voices in the Wind. You may read and listen to this wonderful story about the joy of simplicity, sharing and fellowship by visiting NPR : John Henry Faulk's 'Christmas Story'. Many thanks to Tammy Lenski's Strategic Conversations for the link.

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Bootstrapping Boot Camp

"Ilana DeBare has a good column in the San Francisco Chronicle Small Business Section on bootstrapping. She interviews Bruce Maxwell, a serial entrepreneur, on the topic. Maxwell says, 'Bootstrapping is founded on two simple techniques. The first is time-shifting your payables into the future...The Second technique is barter.'"

For a link to the column, please see post from Mary Sullivan's Way to Grow.

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Focus on What You Know Well

"Starting a successful company involves solving a critical problem for a targeted group of customers. To be able to do that, you have to understand the customer extremely well, and be an expert in their interests, needs and problems.

It's not a coincidence that a lot of successful companies are formed by a few individuals that leave a parent company to start a similar company to meet the needs of their sector. They have worked in the space for a few years, understand the needs very well and create a solution that meets those needs. No amount of market research or interviews will give you that level of understanding, so they have an inherent advantage against competitors...

So, if you're starting a company, find a problem in the fields you are familiar with and focus on that. You'll have a much higher probability of success and likely find yourself with some unfair advantages that you can use..."

Read more in Why VCs Don't Start Companies - Sean on Life.

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Great Site: NetMBA Business Knowledge Center

The mission of the NetMBA Business Knowledge Center is to provide high quality business knowledge resources via the Internet. The Center publishes excellent and informative articles in various subjects of business administration. The articles cover both basic and advanced topics, and include frameworks and theories that are useful for solving the more challenging problems of business administration. Subjects covered include Accounting, Economics, Finance, Management, Marketing, Operations, Statistics and Strategic Management. Well worth a look.

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7 Characteristics of Highly Effective Entrepreneurial Employees

"Fast growing, entrepreneurial organizations need employees who regularly demonstrate entrepreneurial characteristics and work habits...So what are the characteristics of highly effective "Right Stuff" entrepreneurial employees? Here are a few to keep in mind as you interview potential new hires...

Ability to Deal With Risk....
Results Oriented....
Energy....
Growth Potential....
Team Player....
Multitasking Ability....
Improvement Oriented...."

Read more in this article by Joe Hadzima.

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