James Bond’s archenemy, Auric Goldfinger, was the prototypical evil businessman. He reveled in cheating – in cards, golf and business. His attempt to explode a dirty nuclear bomb within Fort Knox in order to contaminate, and thus devalue, the United States’ gold supply was devilishly akin to real-world, 21st-century terrorist threats.
As noted in Time Wounds All Heels, despite Hollywood’s penchant for representing businesspeople as evil rogues, nefarious business tactics seldom lead to long-term success.
Although you should shun Goldfinger’s unethical approach, you may be surprised to learn that many entrepreneurs have their own “gold finger.”
Continue reading “Do You Have An Entrepreneurial Gold Finger? – The Answer Is On The Back Of Your Hand”
It is your chance to break into the “big time” All of your hard work and preparation comes down to a brief performance, the outcome of which could be life-changing.
This was the situation faced by the hundreds of comedians who debuted on “The Tonight Show” during Johnny Carson’s 30-year tenure. If they succeeded, Johnny shook their hand at the end of their routine and offered them a seat in his guest chair. This small gesture indicated that he approved of their act and would invite them back for a future performance.
The careers of nearly every successful comedian during the 1970s and 1980s, including George Carlin, Flip Wilson, Freddie Prinze, Sr., Joan Rivers, Roseanne Barr, Ellen DeGeneres, Jerry Seinfeld, Robin Williams, Jay Leno and David Letterman, were launched by a brief monologue on “The Tonight Show.”
Continue reading “No Laughing Matter – Presentation Tips From The World Of Standup Comedy”
Salmon live most of their lives swimming with the current. However, once they reach reproductive maturity, they make an arduous journey upstream, often jumping up waterfalls, in order to reach the spawning grounds of their birth.
Salmon do not decide to make their epic trek based upon weather conditions, the flow rate of the streams they must traverse or even how far they happen to be from their destination. Rather, they begin their journey when their biological alarm sounds, irrespective of exogenous conditions.
This is the same mindset that would-be entrepreneurs should have when deciding the right time to jump into the startup world.
Continue reading “Starting Up In A Downturn – 10 Reasons To Start A Company In An Economic Downturn”
Author Henry James understood the impact a ghost could have on a story. He also recognized that two ghosts haunting two children was even more effective than a single ghost and a single child, as his character Douglas notes in the 1898 novella, The Turn Of The Screw:
“I quite agree – in regard to Griffin’s ghost, or whatever it was–that its appearing first to the little boy, at so tender an age, adds a particular touch. But it’s not the first occurrence of its charming kind that I know to have involved a child. If the child gives the effect another turn of the screw, what do you say to two children – ?” “We say, of course,” somebody exclaimed, “that they give two turns!” (italics from original text)
James understood that the introduction of each ghost and child effectively “turned the screw” – to a point. However, just as a carpenter understands that over-tightening a screw can cause it to break; James realized that too many “turns” of his metaphorical screw would render his ghosts ineffective as literary devices. Turning the screw just enough is an art in carpentry, literature and negotiation.
Continue reading “The Turn Of The Screw – An Underkill Approach To Negotiating Your Startup Employment Package”
Wow. You just received a job offer from a startup which includes 50,000 stock options. That is wonderful…or is it?
I reviewed and approved hundreds of Employment Offer Letters at my various startups, all of which included stock option grants. The number of otherwise intelligent prospective employees who never ask relevant questions about their stock options was frankly shocking. By getting answers to the seven questions described below, you will be able to make a reasonable estimate of what your options may ultimately be worth.
Continue reading “What The Heck Are My Startup Stock Options Worth?! Seven Questions You Should Ask Before Joining A Startup”
“Advice is judged by results, not by intentions.”
Marcus Tullius Cicero, Roman Lawyer and Statesman, 106 BC – 43 BC
With slight modification, Cicero’s astute quote aptly applies to the entrepreneurial world:
“Startup advice should be judged by results, not by intentions.”
One way to accomplish this goal is to compensate your addVisors with equity and clearly specify the tasks that they must perform in order to earn their remuneration. If their advice proves sage and the company’s value increases, then they will be duly rewarded. If the company fails, their advice is free, as it should be.
The key covenants to consider when crafting your addVisory agreements include:
- Equity Only – ensures the addVisor’s and Company’s interests are aligned
- Specificity – clearly state the tasks to be performed and the minimum time requirement
- Restricted Stock – ideal form of equity, with no detrimental impact on your adVenture
- Cashless Loan – allows the addVisor to have beneficial ownership of stock, with no cash outlay
- Vesting – reduces your risk of parting with equity and not receiving requisite value
- Out Clause – motivates both parties to keep each other happy and allows either party to quickly terminate an ill-fated relationship
- Short Term – reflects the relatively brief duration of most addVisor relationships
Each of these issues is discussed in greater depth in the following section.
Continue reading “Free Advice, Worth Half The Price – Properly Compensating Entrepreneurial AddVisors”
Karch Kiraly (pronounced “cartch kur-ai”) is an anomaly. He is the only person to win Olympic gold medals in both indoor and beach volleyball.
Just as Karch is a rarity, so are entrepreneurs who are equally facile at startups and Big Dumb Companies (BDCs). Many of these gifted few are household names, partly because the represent such a rare breed: Bill Gates, Michael Dell, Steve Jobs and Jerry Yang. All of these Founders managed their startups from launch to BDC success. With the exception of Gates, each of these Founders took a victory lap hiatus before returning to their BDC as CEO.
Given the relatively small number of people who are proficient contributors at both startups and BDCs, it is worthwhile to explore the different skills required to succeed in each venue. To add a unique perspective to this exploration and hopefully gain new insights, we will examine these different skill sets through the prism of volleyball.
Continue reading “What Do Bill Gates And Karch Kiraly Have In Common? They Can Go Both Ways”
Not all flops are failures. Take Dick Fosbury’s for instance. He began experimenting with alternative, unconventional methods of high jumping as a high school sophomore. Rejecting the straddling approach, which had been the standard for the prior forty years, Dick tweaked the old-fashioned scissor kick, eventually morphing it into a new and unique approach, which was eventually dubbed the “Fosbury Flop.”
The track and field community initially scorned Fosbury’s approach, labeling it “unsafe” and “too unorthodox” for the average jumper to master. However, nothing sells an innovative idea like winning. After Fosbury set an Olympic record at the 1968 Mexico City games, jumping 7 feet 4.25 inches, track coaches all over the world took notice.
Continue reading “Innoventors – How Entrepreneurs Change The Rules Of The Game”
“With a name like Smucker’s, it has to be good.” Really? I would think that with a name like Smucker’s it has to be a vile disease or possibly a large, poisonous, South American leech.
If “Smucker’s” can be slapped on food and annually generate billions of sales, chances are that your company name, no matter how mediocre, will not preclude you from achieving significant success. Thus, join the ranks of Yahoo, Google, Amazon, eBay, Cisco and Microsoft and focus your limited time and resources on perfecting your customer value proposition, not on devising an ideal company name.
When selecting your company and product names, consider the following:
- Uniquely Familiar
- Intuitive URL
- Avoid Hyphens
- No Numbers
- Sans Acronyms
- Not Abbreviated
- .com Suffix
- Phonetically Spellable
- Readily Pronounceable
- Single Connotation
Each of these naming considerations is discussed at length in the remainder of this entry.
Continue reading “Lousy Products Might Break Your Bones – But A Name Will Seldom Hurt You”
In the 1960s cop show “The Mod Squad,” Linc played a vital role as the tough, street-savvy member of the hip, made-for-TV crime-fighting team. When you shake down a drug-addled informant, Lincs are a great asset. However, when you are negotiating with a Big Dumb Corporate Investor (BDCI), links between the strategic aspect of your partnership and the investment terms can be fatal to your adVenture.
Each aspect of your BDCI relationship, financial and operational, should stand separately on its own merits. If there is not adequate strategic value in the relationship, do not accept BDCI funding.
Continue reading “Corporate Venturing – How Entrepreneurs Can Get the Love Without a Bear Hug”