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January 30, 2008

Book Recommendation: American Shaolin

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My favorite scene in The Last Samurai was when the Tom Cruise character says something to the effect that “I’ve never seen a people who are more obsessed with perfecting simple skills” as he watches some villagers. This is just so Japanese—I’ve used it several times to explain to my wife why I try to shoot 100-200 pucks everyday (chi ku—eat bitter) in our backyard. Thus, when I happened upon a book in Kepler’s called American Shaolin: Flying Kicks, Buddhist Monks, and the Legend of Iron Crotch: An Odyssey in the New China, I couldn’t resist it.

This is a first-person narrative written by Matthew Polly. He was a proverbial “98-pound weakling,” tall, skinny white kid from Kansas who decided to prove himself by training at the Shaolin Monastery beginning in 1992. It is absolutely hilarious from the moment he explains to his parents what he’s going to do, to how he finds the temple, to how he gets in, to his interactions with various monks, masters, students, and Chinese babes. Imagine if you combined George Plimpton (Paper Lion) and John McPhee (A Sense of Where You Are) and then this amalgamated man went to China for two years to learn kungfu—this is the book you’d get.

I’m no expert in China and the Chinese, but I found Polly’s insights very informative and amusing—much more so that attending yet-another conference about the “tapping the Chinese market.” For example, you won’t learn about Iron Crotch kungfu from Monk Dong at any conference I’ve been to. The book de-mythifies China, kungfu masters, and the male psyche, so I’d be surprised if you didn’t like American Shaolin. Warning: the book is not even remotely similar to Kung Fu, the television series.

January 27, 2008

Forget the A-List After All

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You’ve got to read “Is the Tipping Point Toast?” by Clive Thompson in FastCompany. The gist of Thompson’s piece, based on the work of Duncan Watts of Yahoo Research, is that the theory that a select few “key influencers” matter more than “the rest of us” when it comes to viral and word-of-mouth marketing campaigns is flawed. Said Watts:

“It [achieving marketing success through influentials] just doesn’t work. A rare bunch of cool people just don’t have that power. And when you test the way marketers say the world works, it falls apart. There’s no there there.”

In contrast to influential marketing, Watt’s believes the key factor is the readiness of the market: “If society is ready to embrace a trend, almost anyone can start one—and if it isn’t, then almost no one can.” There will be first movers, but almost anyone can be this first mover—and therefore what Watts calls an “accidential influential.”

My money is on Watts. If you agree, it should change your perspective on marketing:

  • Spend less time and effort on industry events and other focused PR and marketing that involves sucking up to journalists, analysts, and experts. Spend more time and effort pressing the flesh of real customers. Typically, you won’t meet too many customers at a Ritz Carlton.

  • Try mass marketing because you never know who will be your “accidental influential.” Or, as the saying goes, “Let a hundred flowers blossom” to determine who “gets” your product. Admittedly, the challenge is to find a cost-effective way to do mass marketing.

  • Forget A-list bloggers. Lousy reviews by them cannot tank your product. Great reviews cannot make it successful. Focus on big numbers—any Technorati 1,000,000 blogger can be a channel to reach people. If enough people like your product, the A-list bloggers will have to write about you.

How does Watts’ thinking square with evangelism? I don’t see a conflict because evangelism is about “bringing the good news” to everyone and then supporting the people who “get it.” Evangelism is not about sucking up to only people who are famous and self-important. To wit, few Fortune 500 CIOs helped make Macintosh successful. It was unknown artists, designers, hobbyists, and user-group members who made Macintosh successful, and we could have not identified them in advance.

photo by Steve Pyke

January 21, 2008

The Art of Registration Pages, Opt-In Practices, and Welcome Emails


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Dave Walker pointed out a very interesting blog post called "Ecommerce Registration Usability Tips." The author(s) analyzed the registration procedure of eighty seven online retailers. One of my pet peeves is sites that don't allow you to use your email address as a user name--he found that only 13% do. Surprisingly, only 1% of the sites required Captcha completion--I thought that was very low. The post also analyzed how many pre-checked opt-in email: 57% did so. Finally, the post examined welcome emails--the ones that you get after you register. All three posts are very interesting reads for any company that requires registration. In case you missed them, here are my thoughts on the similar subject of fighting friction.

January 20, 2008

Reality Check: Triggit

Triggit is a WYSIWYG web application for integrating third-party elements into websites. It enables people to drag and drop advertisements, Flickr pictures, and YouTube videos directly into their site without any skills in web programming. Triggit is free to use, and works on any site that accepts JavaScript. It does not require any downloads, access to FTP, or APIs. Installation involves pasting one small piece of code in the site.

Triggit’s goal is to serve as a feature-rich tool whereby publishers can quickly and easily integrate all manner of widgets, content, advertising units, APIs and data from third party sites. In doing so, it operates as a distribution arm for companies seeking to spread the reach of their advertisements, widgets, content, and data on the web. By making it easier for web publishers to integrate these objects into their websites, Triggit helps to expand the ability of these companies to reach larger online audiences and add new revenue streams.


January 18, 2008

Ypulse College Mashup Conference


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My friend Anastasia Goodstein is running the Ypulse College Mashup conference for companies who are trying to reach the college-student market. The conference is running from January 31 to February 1 in Santa Monica, California. Speakers include: Jake Sasseville, host, The Edge With Jake Sasseville; Jessica Barron, director, Front Page Programming, Yahoo!; Chip Ross, director of PlayboyU.com, Playboy; Stephen Friedman, general manager, mtvU, MTV Networks; Ricky Van Veen, cofounder of CollegeHumor.com,; and Rafat Ali, editor and publisher, ContentNext Media. The keynote speakers include Dr. Jean Twenge, author of Generation Me, and Penelope Trunk, author of Brazen Careerist. Readers of my blog can enter "KAWASAKI" and receive a 15% discount when registering. If you want to learn how to reach college students, this conference is the one to attend.


January 14, 2008

Guest Post: “We Got Out of Kenya, But What About the People Who Live There?”

Saturday, January 12, 2008

I write this after a good night’s sleep—the first I’ve had since December 29. That was the day that incumbent Kenyan President Mwai Kibaki announced victory in the country’s elections and was sworn in as a nation listened, paralyzed with shock. Moments later, the radio system went dead. When broadcast resumed, it was to report riots, lootings, a rising death count, and huge numbers of people displaced as violent tribe-against-tribe attacks became an outlet for the betrayal and hopelessness so many Kenyans felt.

My son, Matt, age twelve, and I had arrived in Kenya two weeks before the election. It was my second visit; his first. We had come to Kenya to spend time at an orphanage, the Lewa Children’s Home in Eldoret, and then to visit Eregi, a rural town that is both a hub of micro-entrepreneurship and the regional base of Village Enterprise Fund, a micro-granting organization I’ve supported for several years.

In the weeks before the election—peaceful, festive weeks, marked by political optimism and the cheer of the holiday season—Matt and I enjoyed a brief acclimation in Nairobi before getting hands-on at the orphanage. As we prepared to travel to Eregi on December 28, the day following the election, we heard the first rumblings of trouble. Gasoline was suddenly in short supply because deliveries were halted “to keep people in their precincts until the count is complete.” We also heard of boxes stuffed with pro-Kibaki ballots, and of a surprising rate of voter turnout (115%) in several areas that favored Kibaki.

But we didn’t feel concerned. Our Kenyan friends, educated, savvy people with a strong sense of responsibility for our well-being, scoffed at some reports, dismissed others as rumors, and never doubted a fair outcome to an election they believed would deliver both a new president and meaningful benefits to the Kenyan people. We headed west, excited about our plans for a six-day tour of rural microfinance projects and enjoying the winding, sunset-lit drive to Eregi.

Things did not turn out as planned. On December 29, as our host family and millions of their countrymen stood by their radios in disbelief, Kibaki’s office announced victory and delivered a cold, hasty swearing-in that sealed the country’s fate for the five-year term to come.

The repercussions began almost immediately in the slums of Kibera, the beaches of Mombasa, and countless cities and towns across the country. Riots, stabbings, lootings, and the torching of an Eldoret church where some fifty people, including children, sought refuge from the violence raging outside devastated the Kenya that we knew and loved. A friend texted me a rushed message saying that he was one of 20,000 people being emergency evacuated from Eldoret by the Army. He was one of some 250,000 people left homeless by riots or transported to neutral areas that offered some hope of safety.

Kenya was suddenly paralyzed by a cut-off fuel supply, very limited availability of phone credits, lack of cash access, and danger on the streets. In our village, we fell asleep—or tried to—to the sound of rage echoing through the valleys and awoke to escalating reports of resource limitation and approaching danger.

In the end, we got out. It wasn’t easy. We drove to Uganda, got within sight of safety, but then turned back because of gunfire at the border. I pleaded with a charter pilot—begging him to meet us at the Kakamega landing strip. He was just a short way away, airlifting British and German aid workers out of Eldoret, but he feared potential danger at the small and unprotected strip. With an abrupt “click,” he ended our call. Our host family pulled out every stop to negotiate a safe route to Kisumu, the nearest main airport, where we held paid airline reservations. Nothing, not even police escort, felt safe enough.

In the end, we found a helicopter pilot willing to take the leap of faith that he could find our landing site (a soccer field at a remote village school), that it would be clear, large and safe enough for him to land, that he would be able to get enough fuel for the flight and that we would, indeed, pay him after banking returned to normalcy. Fortunately, at this point, I was pretty damn persuasive, and the airlift service, Everett Aviation, was pretty damn wonderful. The sight and sound of that helicopter’s landing and our friends waving goodbye are forever etched in my mind.

But that’s just our story. It matters less than the stories of countless people who now must reshape their lives to the devastating changes they face in Kenya today.

Allow me to provide some examples. First, there’s Carol, a willowy, confident young woman who serves as an interpreter for her extended family, many whom have been afflicted by congenital blindness and deafness. She uses a sign language that has evolved over generations, and with it she helps her siblings run a home-based knitting business that produces sweaters, hats, and other clothing items for babies and children. Carol planned to enter university in Nairobi this spring with the dream of studying special education. Her family’s sustenance, and her educational options will be affected by Kenya’s sudden plummet from stability, and these developments weigh heavily on her mind.

Next, there’s Brian, a teacher, twenty-five years old, passionate about the chemistry, physics and biology. He teaches at a prestigious boarding school in Central Kenya. Brian’s gift for bringing science to life made him a favorite teacher at this school, and he dreamed of inspiring one of his students to create or invent something that truly changes the world. Handsome, articulate, and creative, Brian comes from a minority tribe that factored prominently in the recent ethnic conflict.

The danger of going back to Central Kenya at this heated time left him asking: “Should I risk my safety and well-being to return to my job and students?” When I last spoke with him, the fear of violence had swayed him toward staying in his family’s home rather than resuming teaching. He was devastated not to be there when his students returned to school.

Then, there’s Winnie, who worked at hotel in Nairobi. She worked any shift she could during the brief days we stayed with her, being such a constant presence at the reception desk that I suspected she had an identical twin. Gracious and poised, she covered nights and days and never had less than a radiant smile to welcome her guests. Winnie lost her job yesterday. Her hotel is now nearly vacant—what businessperson or traveler would visit Nairobi now?—and along with twenty nine others who were let go, she now must try to find another job. But where? With tourism at a standstill, corporations re-evaluating their Kenyan presence, and much day-to-day commerce frozen as people await resolution of major political issues, where will employment come from?

Finally there’s Phyllis. She runs a dairy, a boarding school, and an orphanage. She depends on a steady stream of volunteers, culled from an international network she’s developed over decades, to assist her with teaching and caregiving. All of her recent volunteers have been evacuated from Kenya and those scheduled to arrive have cancelled their plans. Many of her teachers and students fear returning to hard-hit Eldoret, an epicenter of recent tribal conflict. Charitable funding once focused on her orphanage is now being distributed to a broader set of needs and emergencies.

How will she make ends meet, keep her children learning, and attract enough support to sustain her programs now that Kenya is a “high risk” country? Or her son Martin, a young father and former professional athlete, whose business—combining sports management, active tourism, and development of Kenyan athletic talent—was on track for profitability in 2008. What will become of his enterprise and the programs he has carefully developed over the past four years?

These stories are not isolated cases. Each of them represents untold thousands of individuals, people whose life course and opportunities have been slammed against a new, harsh reality: a country suddenly unstable and untrusted, a dream of African progress and promise gone awry. Tourism has screeched to a halt. Companies considering investment or manufacturing opportunities in East Africa report taking their development plans elsewhere. Step by step, layer by layer, these decisions will affect every man woman and child in Kenya, likely for years to come.

What can be done? The question is haunting and the answer evasive. And conditions are likely to worsen as the polarized “sides” of this political divide prepare their showdown—angry and in deadlock.

Answers are not likely to come at a policy level. But perhaps there is some hope at a “people” level. Microfinance organizations such as Kiva and MicroPlace have ways of reaching small business people in Kenya. Heifer International and Village Enterprise Fund, two agencies with established infrastructure in Kenya, will continue their entrepreneurial support there. Countless other organizations will have ways to provide support; if you know of any, I encourage you to share their contact information here.

In a crisis like this, in a country like Kenya, any small token of support can work wonders. Even if you don’t support Kenya with your wallet, support it in your heart. Think of the highly-educated, industrious people of Kenya, half of whom are twenty years of age or younger, and of the hopes, security, and actual prospects that they have lost in the last two weeks. Imagine yourself, or your child, in a similar situation, and ask yourself what you would do. And what you would want others to do to help you through this time.

Whether you send a prayer or a wish or an even more tangible form of support, put yourself in their shoes. Use the freedom that you have—so similar to that which the people of Kenya truly believed was theirs—to wish the people of Kenya the safety and strength to survive what is likely to be a very hard times ahead.

Ellen Petry Leanse
Menlo Park, California

Ten Questions With Garr Reynolds

All hail Garr Reynolds! He has written the definitive book about making great presentations: Presentation Zen: Simple Ideas on Presentation Design and Delivery (Voices That Matter). To give you a taste of his book (and increase my link count), here are ten questions (really thirteen) with Garr.

  1. Question: Who indexed your book? I know I’m in it, but I’m not in the index . Of course, it does say something about me that I would look for my name in the index. :-)

    Answer: I was horrified when I saw that! A thousand apologies. I since learned a good piece of advice for new authors: Always do your own indexing or at least be very involved in it. The indexer did a very good and quick job, so it was my fault for not checking and adding a few names and page numbers to subjects. The index was designed to be light to save space, but not that light. Live and learn.

  2. Question: Okay, now that we got that out of the way, what is the “Presentation Zen” approach?

    Answer: Presentation Zen is indeed an approach not a method. There are many paths and many methods to presenting insanely well today. At its heart Presentation Zen is about restraint, simplicity, and a natural approach to presentations that is appropriate for an age in which design-thinking, storytelling, and “right-brain thinking” are crucial complements to analysis, logic, and argument.

    The goal of the book was not to offer panaceas and rigid rules, but instead to encourage people to think differently about their visuals, the way they present them, and how they connect with audiences. My hope is that people find some things new in the book that stimulate their creativity--helping them to discover a more “enlightened” and more effective approach to presenting.

  3. Question: How did we get to this place where most presentations suck?

    Answer: There are many reasons. First of all, presenting exceptionally well isn’t easy. In fact it’s hard. That’s why we find great presenters—and great communicators in general—so remarkable. They are all too rare. Many professionals simply have never had much practice and just follow conventional wisdom and do it “like everyone else” instead of doing it effectively.

    PowerPoint and Keynote are both pretty simple tools, but there has been too much focus on the tools themselves. If people want to learn how to make better slides they should study good books on graphic design and visual communication to improve their visual literacy.

    When it comes to designing appropriate visuals, there is a hole in our education. Concerning quantitative displays, for example, very few people have had proper training in how to design graphs and charts, etc. The great master Edward Tufte has written many useful books in this regard.

  4. Question: Are PowerPoint and Keynote part of the problem or part of the solution?

    Answer: There is no question that PowerPoint has been at least a part of the problem because it has affected a generation. It should have come with a warning label and a good set of design instructions back in the ’90s. But it is also a copout to blame PowerPoint—it’s just software, not a method.

    True, the templates and wizards of the past probably took most of us—who didn’t know any better anyway—down a road to “really bad PowerPoint” as Seth Godin calls it. But today we know better, and we can make effective presentations with even older versions of PowerPoint—often by ignoring most of the features. Ultimately it comes down to us and our skills and our content. Each case is different, and some of the best presentations include not a single slide. In the end it is about knowing your material deeply and designing visuals that augment and amplify your spoken message.

  5. Question: In a nutshell, what makes a good presentations stick?

    Answer: If you want to know how to make better presentations, buy Made to Stick by Chip Heath and Dan Heath. The Heath brothers found that sticky, compelling, and memorable messages and ideas share six common attributes: Simplicity, Unexpectedness, Concreteness, Credibility, Emotions, and Stories. Ask yourself how your presentations rate for these elements, and you are on your way to crafting presentations that stick.

  6. Question: Specifically, what makes Steve Jobs’s presentations so great?

    Answer: Steve Jobs makes it look easy. He’s comfortable and relaxed. This in turn makes the audience feel relaxed. His keynotes usually rate very high on the Heath brothers’ “sticky scale” above. Steve also speaks in a manner that is conversational, and even though he practices a lot before the event, his words never sound scripted.

    Steve uses the slides to help him tell a story, and he interacts with them in a natural way, rarely turning his back on the audience because monitors in front show the same onscreen image as well as the next slide. Steve uses visuals, his own words, and a natural presence to tell his story. His visuals do not overpower him, but they are an important component of the talk. Steve also demos his own software. This is much harder than giving a presentation, but he pulls it off well. How many CEOs can do that?

  7. Question: Do you think that Bill Gates (a) knows his presentations are lousy and doesn’t care or (b) doesn’t know they are lousy at all?

    Answer: Who knows? Historically, Bill has been a good contrast in styles to Steve Jobs. In the past we said, “Do it more like Steve and less like Bill.” The thing is, one-on-one Bill seems very engaging and very likable, but he has always struggled with the keynote address. The awful slides behind him usually do not help.

    I wish Microsoft would call Bert Decker for some coaching and hire Duarte for the visuals. If Duarte can make Al Gore an extraordinary presenter, think what they could do for Bill. Bill is a remarkable man, not just for his software so much as for his philanthropy and his work with his foundation. So it would be nice for a remarkable man like Bill to be a remarkable presenter too. His CES keynote was better—not great, but an improvement. Perhaps Bill will abandon the all too common common “death by PowerPoint” method in future.

  8. Question: What’s your version for the optimal number of slides, length of presentation in minutes, and font size?

    Answer: It really depends on a great many things, but if I was going to make a pitch to a venture capitalist, I’d probably recommend your 10/20/30 method. That is, the presentation should have about ten slides, last no more than twenty minutes, and contain no font smaller than about thirty points. I especially like the twenty-minute limitation of this method.

    There are myriad types of presentation situations and the actual number of slides and the time may vary greatly depending on the specific circumstances and method. However, the audience should have no idea how many slides you have. Once they start counting slides all is lost. As far as text goes, I say as little as possible on slides, but when text does appear it should be large and serve to complement your words. People did not come to read; they came to hear. Any speaker can read bullet points. The audience wants to hear your story not read it.

  9. Question: How many slide transitions should a presentation contain?

    Answer: It’s good that PowerPoint and Keynote have many transition options, but people need to exercise restraint and use a very few effects. I suggest using no more than two to three different types of transition effects per presentation and not use transition effects for every slide. I use a fade to black between the major sections of a talk to communicate closure of one section and the opening of the next one.

    I often use a smooth dissolve to gently move from one visual to the next as I continue speaking. Using no transition effects is also often appropriate. When you watch a film or a TV show you are not usually aware of the transition effects from one scene to another--that would be distracting. Audiences should not notice the effects we employ between slides too.

  10. Question: Why do you think 2-D graphs are better than 3-D graphs?

    Answer: 3D charts and graphs are very popular with consumers, but in almost every case it is preferable to use 2-D graphics to display 2-D data. Charts with 3-D depth and distortion usually make things harder to see, not easier. Some of the precision is lost. There is beauty in the simple display of the data itself, there is no need to decorate with distorted perspectives. If the graphic is just for showing the roughest of general trends, then there is nothing really wrong with a 3-D chart I suppose, but when you are trying to show a true visual representation of the data in the clearest way possible, a simple chart without 3-D adornment is usually better.

  11. Question: How many times do you think a person should rehearse a presentation?

    Answer: You should rehearse at least three to four times all the way through and rehearse the first three minutes at least ten times or more. You also need to do a formal dress rehearsal in front of a real audience such as coworkers who can give you constructive criticism.

    In some ways good presenting is like good writing, you’ve got to pare it down and dump the superfluous and the non-essential. But since we are so close to the material it is hard for us to see what works and what does not, or what is repetitive, etc. This is why you cannot only rehearse alone. You’ve got to rehearse in front of others so that you can experience the nerves, the blank stares, etc.

    The more you rehearse the more the fear of the unknown is removed. The more the fear is removed, the more confident you will become. As you become more confident you will feel more relaxed and your confidence will shine through. The thing about confidence is that it’s impossible to fake, but with practice you will indeed become a confident speaker. And yes, it is possible to rehearse too much. You want it to sound natural and fresh, not mechancial and memorized. Usually three to four full rehearsals will get you there.

  12. Question: What is the single most important thing people could do to enhance their presentations?

    Answer: Turn off the computer, grab some paper and a pencil, and find someplace quiet. Think of the audience. What is it they need? What is it you want to say that they need to hear. Identify what’s important and what is not. You can’t say everything in a twenty-minute talk—or even a two-hour talk.

    The problem with most presentations is that people try to include too much. You can go deep or you can go wide, but you can’t really do both. What is the core message? This time “off the grid” with paper and pencil or a white board is where you can clarify your ideas and then get them on paper visually. After your ideas and basic structure are clear, then you can open up the software and start laying out the story in the slide sorter view.

    If the computer ever freezes in your live talk you need to move on. The work you did in the preparation stage “off the grid” and away from the computer will help make things concrete in your own mind so that you can move forward sans your Macintosh in the event of a technical glitch. By the way, if you ask the audience to bear with you as you try to make the computer work, you might as well stick a fork in it because you are done. Keep moving forward in the unlikely event of a technical glitch.

  13. Question: Who are the ten best presenters?

    Answer: I have pointed to many on my site over the years such as Seth Godin, Steve Jobs, you, Al Gore, Lawrence Lessig, Tom Peters, Hans Rosling, and many more. Recently I have come to think that US senator Barack Obama is an amazing speech maker as well. But more than anything, I point people to TED where they can see some really good presentations and speeches by some very smart and creative people who are all trying to change the world in their own way. Each case is different, but really, if you’re not trying to change the world, what is the point of making a presentation?

January 12, 2008

Video Coverage of CES


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Here's a feed of video coverage of CES via the Inquirer (you've got to love the British sense of humor). There are fifty-four sessions in this feed including keynotes by Bill Gates, Jerry Yang, Paul Otellini, Rick Waggoner, John Chambers, Michael Dell, and Ed Zander. If nothing else, you'll see why people should read this book. There's even a keynote by Chip Heath, the co-author of Made to Stick. You'd also probably find "Ten Digital Trends to Watch Out for in 2008" useful too.

January 10, 2008

Top Ten Myths of Entrepreneurship


sas46_65.jpgThis is a guest post by Scott Shane as a follow up to his entrepreneurship test. He is the A. Malachi Mixon Professor of Entrepreneurial Studies at Case Western Reserve University. He is the author of seven books, the latest of which is The Illusions of Entrepreneurship: The Costly Myths That Entrepreneurs, Investors, and Policy Makers Live By. Many entrepreneurs believe a bunch of myths about entrepreneurship, so here are ten of the most common and the realities that bust them:

  1. It takes a lot of money to finance a new business. Not true. The typical start-up only requires about $25,000 to get going. The successful entrepreneurs who don’t believe the myth design their businesses to work with little cash. They borrow instead of paying for things. They rent instead of buy. And they turn fixed costs into variable costs by, say, paying people commissions instead of salaries.

  2. Venture capitalists are a good place to go for start-up money. Not unless you start a computer or biotech company. Computer hardware and software, semiconductors, communication, and biotechnology account for 81 percent of all venture capital dollars, and seventy-two percent of the companies that got VC money over the past fifteen or so years. VCs only fund about 3,000 companies per year and only about one quarter of those companies are in the seed or start-up stage. In fact, the odds that a start-up company will get VC money are about one in 4,000. That’s worse than the odds that you will die from a fall in the shower.

  3. Most business angels are rich. If rich means being an accredited investor –a person with a net worth of more than $1 million or an annual income of $200,000 per year if single and $300,000 if married – then the answer is “no.” Almost three quarters of the people who provide capital to fund the start-ups of other people who are not friends, neighbors, co-workers, or family don’t meet SEC accreditation requirements. In fact, thirty-two percent have a household income of $40,000 per year or less and seventeen percent have a negative net worth.

  4. Start-ups can’t be financed with debt. Actually, debt is more common than equity. According to the Federal Reserve’s Survey of Small Business Finances, fifty-three percent of the financing of companies that are two years old or younger comes from debt and only forty-seven percent comes from equity. So a lot of entrepreneurs out there are using debt rather than equity to fund their companies.

  5. Banks don’t lend money to start-ups. This is another myth. Again, the Federal Reserve data shows that banks account for sixteen percent of all the financing provided to companies that are two years old or younger. While sixteen percent might not seem that high, it is three percent higher than the amount of money provided by the next highest source – trade creditors – and is higher than a bunch of other sources that everyone talks about going to: friends and family, business angels, venture capitalists, strategic investors, and government agencies.

  6. Most entrepreneurs start businesses in attractive industries. Sadly, the opposite is true. Most entrepreneurs head right for the worst industries for start-ups. The correlation between the number of entrepreneurs starting businesses in an industry and the number of companies failing in the industry is 0.77. That means that most entrepreneurs are picking industries in which they are mostlikely to fail.

  7. The growth of a start-up depends more on an entrepreneur’s talent than on the business he chooses. Sorry to deflate some egos here, but the industry you choose to start your company has a huge effect on the odds that it will grow. Over the past twenty years or so, about 4.2 percent of all start-ups in the computer and office equipment industry made the Inc 500 list of the fastest growing private companies in the U.S. 0.005 percent of start-ups in the hotel and motel industry and 0.007 percent of start-up eating and drinking establishments made the Inc. 500. That means the odds that you will make the Inc 500 are 840 times higher if you start a computer company than if you start a hotel or motel. There is nothing anyone has discovered about the effects of entrepreneurial talent that has a similar magnitude effect on the growth of new businesses.

  8. Most entrepreneurs are successful financially. Sorry, this is another myth. Entrepreneurship creates a lot of wealth, but it is very unevenly distributed. The typical profit of an owner-managed business is $39,000 per year. Only the top ten percent of entrepreneurs earn more money than employees. And the typical entrepreneur earns less money than he otherwise would have earned working for someone else.

  9. Many start-ups achieve the sales growth projections that equity investors are looking for. Not even close. Of the 590,000 or so new businesses with at least one employee founded in this country every year, data from the U.S. Census shows that less than 200 reach the $100 million in sales in six years that venture capitalists talk about looking for. About 500 firms reach the $50 million in sales that the sophisticated angels, like the ones at Tech Coast Angels and the Band of Angels talk about. In fact, only about 9,500 companies reach $5 million in sales in that amount of time.

  10. Starting a business is easy. Actually it isn’t, and most people who begin the process of starting a company fail to get one up and running. Seven years after beginning the process of starting a business, only one-third of people have a new company with positive cash flow greater than the salary and expenses of the owner for more than three consecutive months.

January 09, 2008

The Art of the Signup Page


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A site's signup page is the second most important page on a site (the most important is the home page itself) because this is where you're asking for committment. Everyone worries about the home page (and still don't do a good job), but most companies do a poor job with the signup page. For example, HAMweather's is aesthetically-challenged, and Last.fm's doesn't convey enough information. This article about signup pages by Tim Bednar is a good read. His list of important signup-page elements is:

  • Logo

  • Elevator pitch

  • Descriptive copy

  • List of key features

  • List of key benefits

  • Call to action

  • Testimonials

  • Tours

  • Examples of users

  • Screen shots

  • Life-style images

  • Link to more information

However, you can clearly be successful without a great signup page.

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