2009? - Aaron Patzer describing his path
https://www.youtube.com/watch?v=oGhedOHLTOI
2009.07.23 - Fortune Brainstorm TECH - Panel
https://www.youtube.com/watch?v=S_h5ZX9GPIk
2010.02.18 - VentureBeat - 4min interview
https://www.youtube.com/watch?v=hENM1T-SaX8
2010.05(?) - The Duke Start-Up Challenge
https://www.youtube.com/watch?v=FNT5nmqmk3A&t=7m20s
2010.07.29 - The American Entrepreneur
https://www.youtube.com/watch?v=cQRlHWIa8l8
2010.12 - Net@Night - Interview
https://www.youtube.com/watch?v=wixHKoXGJsQ&t=26m23s
2010.12.08 - Founder Institute in Silicon Valley - Naming & Branding for Startups
http://vimeo.com/17670720
- Choose an English name. He gives an example of his competitor "wasabe", which he couldn't find online even after searching for it for an hour.
- Choose a meaningful name (mint relates to finance but it also has a connotation of freshness)
- Choose an original name (he gives the example of copy-cat companies that ended in "-ster" after friendster became successful)
- Choose a name that is spelled unambiguously. (examples of bad names: "milo", "flickr", "kwiqapps", "simplyhired" [the ending 'd' can be hard to hear])
06:41 - He bought "mymint.com" for $3,000.
08:00 - He offered the hedge fund guy $75,000 cash and was turned down.
8:25 - The key is that the domain has to be lightly-used.
~9:00 - He said three things got the guy convinced: 1) the opportunity for an asymmetric return (ie he got equity), 2) limited chance for loss (ie preferred stock), 3) a promise to not allow any other NY financiers to invest, so the manager could brag to his Wall St friends that he was getting to invest alongside the best VCs in Silicon Valley and none of them could get in.
10:00 - He got the domain for the equivalent of $182,000 in equity in the round of financing he was in the middle of negotiating. The guy liked the business so much that in the next round he ended up putting in $300,000. So they got the domain and $300,000. The guy ended up making $2.5 million from that investment (so from $500k to $3mill?)
10:25 - Lesson: Don't settle for a subpar name. Pick the right name and go after it with everything you've got.
10:45 - 90%+ of all brand marketing people are fluff. The people who do SEO are charlatans. Some people who do some types of direct marketing (SEM) are OK. "Brand marketing is where you can get away with the most fluff."
11:27 - Brand marketers use a lot of jargon that's impossible to understand.
11:30 - "There is a logical way to figure out what the value proposition of your business should be and how you should be positioned against your competitors." He suggests you create a matrix (eg a 2x2 matrix) where you plot the most important features of a product (eg "# of things it can do" and "cost") and then plot where the competition is on that matrix. Then just look for gaps.
16:40 - Very interesting: he describes how they went to the Mountain View metro station and tested their slogan on them to see what their perceptions were. Go anywhere there's a queue.
~18:00 - He went back to IN and tested his explanation of his product on his parents' 60yo friends.
19:00 - In surveys people generally say they'll use it more than they actually do.
2011 - Web 2.0 Expo San Francisco - 5 min interview
https://www.youtube.com/watch?v=vWctrFsydNo
2011? - the Founder Conference
http://vimeo.com/15644909
2012.02.16 - TechCrunch - Informal 7min interview with Scott Cook (founder of Intuit) and Aaron Patzer
https://www.youtube.com/watch?v=_fjQxwvmgDw
2012 - e27.sg - 5 min informal interview
https://www.youtube.com/watch?v=buD6L6ybcyM
1. Born to a poor family in Scotland. They had to leave their village when machine-looms made the father's hand-looms obsolete; they ended up settling down in Pittsburgh. Carnegie received almost no formal education.
Basically, he was in the railroad industry for ~15 years (the same amount of time that Walton was in retail before starting Wal-Mart) from the age of 17, worked harder than anyone around him, got promoted again and again until he was in a fairly prominent position, and only THEN started the project that really seemed to start to make him rich: a bridge-building partnership with some contacts he had made.
He was able to use his many years of experience in the railroad industry to make intelligent decisions about the direction of the business (e.g. concluding that the business was a profitable venture, choosing the best men in the industry for his partners, using non-obvious information to convince customers that his bridges were superior to that of the competition).
He was also able to see steel coming like a wave of the future (like a surfer), and he did a great job of launching himself onto it as it arrived. As part of the bridge-building business he'd bought a small iron-forging plant, and knew a lot about iron and steel because of their importance in building bridges and acting as train tracks (apparently iron train tracks used to break ALL THE TIME back then and would cause all kinds of train accidents; pretty crazy to think about).
The last 100 pages or so of this book seem pretty boring; just him talking about his philanthropy, all the friends he's honored by naming a building after them, etc. (everything starting with the chapter "The Gospel of Wealth")
1. Keep your eye out for people with Carnegie's traits: disciplined, hard-working, thoughtful, etc. [I didn't get a strong sense of whether his ambition would have been visible earlier in his career.]
2. You can invest your time in PEOPLE just as you can invest your time in founding a company; Carnegie rose through the ranks because the guy he was working for kept getting promoted and always brought Carnegie along with him. This is the exact same kind of relationship that Generals Sherman and Grant had in the Civil War; Sherman had the opportunity to compete with Grant for control of the entire army but chose instead to forcefully decline any such ambition, instead loudly declaring his intention to work faithfully under Grant. Then as Grant got promoted he brought Sherman along with him, which ended up putting Sherman in the position to conduct affairs as he pleased (which led him to absolutely destroy the South).
- Working together and developing a friendship can propel both of you to higher ground than if you're competing against each other for the "higher" rank (and generating animosity between yourselves as a result). This actually kind of ties into my thought that "leaders" aren't necessarily any more worthy of praise and attention than the people "under" them.
- You might be better off looking for someone who is in a position to rise up but hasn't yet. I'll have to think about this more.
Q: What exact expertise did Carnegie acquire in his first 15 years that made him successful at future projects? Would there have been any way to acquire that expertise more quickly?
18:00 - He recs the book "The Sovereign Individual", he says it's one of Thiel's favorite books, one of Andreessen's favorite books, and one of his favorite books.
18:15 - He mentions "Seeing like a State"
As I stepped into my apartment I felt the Giffuni Brothers’ check burning a hole in my pocket. Should I buy a new coat or shouldn’t /? I looked down at my lavender Georgy Girl outfit; I knew it had walked down the street too many times to still look fancy-free. Should I or shouldn’t I? Well, I decided, if Mom could cover her old rocks with a coat of white paint, I could certainly cover my old outfit with a new coat! I hightailed it down to First National City Bank to cash my check and made a beeline for Fifth Avenue. I was going to buy myself the best coat in the best store on the best block in all New York! I asked the red-suited doorman at Bergdorf Goodman where I could find ladies’ coats and took the gold-paneled elevator to the second floor. The elevator opened, and I tripped into a full city block of new coats. A well-clad saleswoman offered her help, but I was too intimidated to accept her offer and thought of a really original response: “No, thanks, I’m just looking.” I puffed up my chest and dove straight into the sea of a thousand coats. Suddenly, I spotted her from across the room. She was the flashiest one in the whole place. There was nothing plain about her. She had curly brown and white fur around a high mandarin collar and a pair of matching cuffs. Her wool was thick, laid in an oversize brown and white herringbone pattern. Down her front she had at least a dozen diamond-shaped buttons chiseled out of what looked like real bone. Each button hooked through its own loop. Her huge shoulder pads rode high and her hem swung low, almost touching the polished wood floor. Everything about her screamed, “HERE I AM!” And for $319 plus tax, she was mine. My new coat became my signature piece and I never took it off. In it, I not only looked successful, I felt successful. My curious customers asked what kind of fur it was, and since I’d never spoken to the saleslady, I had no idea. “It looks a lot like my old dog, Prince,” I’d joke. For the next two years, I marched in and out of buildings up and down Manhattan wearing my expensive coat and flaunting my new image for all it was worth.
Corcoran, Barbara; Littlefield, Bruce (2011-02-09). Shark Tales: How I Turned $1,000 into a Billion Dollar Business (pp. 21-22). Portfolio Trade. Kindle Edition.
a great book. it's concise, conversational, funny, filled with valuable lessons and great stories. i actually got the feeling that we could be good friends (i.e. it seemed to me that our values are close enough and that we'd see eye-to-eye on a lot of things). the whole thing was written as a letter (or letters) to his son, which is why it's a lot less dry than other autobiographies you'll see (where the author is clearly being careful to avoid making himself look bad).
highlights:
- franklin's attempt at correcting all of his faults
- his weekly meetings to discuss intellectual subjects
- his work ethic (working from dawn till dusk, seven days a week while establishing his printing shop)
- his chronology of success: made his way from Boston to Philly without much money, ended up working as an assistant to a printer, eventually opened his own printing shop and worked his tail off to do a good job of it, gradually gained more customers and Philadelphia became a bigger city (when franklin got there there wasn't much competition), he also became well-known for his published thoughts on things (iirc). don't quite remember how he got pulled into the revolution; i think it's just because he was already well-known by then.
2014.10.30 - Stanford / YCombinator - How to Start a Startup - Lecture 12 - Building for the Enterprise
https://www.youtube.com/watch?v=tFVDjrvQJdw
He comes off very well IMO, he seems to know his stuff.
02:10 - When they started they didn't know they wanted to do enterprise software.
04:15 - They got the idea in 2004, started in 2005.
05:30 - They noticed in college that it was really hard to share files.
05:40 - He had an internship that involved copying lots of paper.
06:45 - The first name was Box.net
06:50 - They noticed the cost of storage was dropping dramatically.
07:15 - They had more powerful browsers & internet connections.
07:25 - People had more locations they wanted to share files from.
07:40 - Look for broad changes that are happening.
08:10 - They put together a quick version of Box. They got funding from Mark Cuban before Shark Tank.
09:25 - They first moved to Berkeley, and then Palo Alto
09:35 - They had hundreds of thousands people signing up every month. (2006) They offered a free GB.
10:00 - They ran into a problem where they were over-serving consumers and under-serving businesses. They had more functionality than consumers wanted and less functionality than businesses wanted.
11:35 - They thought consumer would be really fun and enterprise would be really hard.
11:50 - The big problem in the consumer world is how to make money. You generally have two options: 1) have the user pay for the product, or 2) use advertising. In today's world the annual consumer spend on mobile apps is $35 billion and the total worldwide ad spend is $135 billion, so the consumer world has about $170 billion in money to go after. However, in enterprise, $3.5 trillion is spent on IT services every year.
13:20 - At the time there were rumors that Google would be coming out with a free version.
14:35 - It can take a couple YEARS to sell a product to a company, and then a few more years for them to implement it.
15:10 - When looking at enterprise software you often ask why the GUI is so bad.
15:30 - Another problem with enterprise is that you'll have to hire salespeople.
16:40 - Every investor in 2007 was telling them they wouldn't make it in enterprise.
17:08 - The
18:50 - They got lucky in that they had an investor who was also early in his own career and was willing to take the chance.
19:10 - They architected the product to work in one particular version of the world, and they happened to be right.
19:50 - Main topic: What has changed that has made enterprise easier to enter than before?
20:30 - He talks about "on-premise computing" but I didn't really understand.
21:45 - The big change is that CIOs are now taking advantage of cloud services. From their perspective, there are decades of investment that need to be shifted to the cloud.
23:20 - The reachable enterprise market has gotten way bigger.
24:20 - He distinguishes user-led vs IT-led purchasing decisions. Which makes me think Box is just getting used by individuals.
30:10 - Go to any business and ask what are the fundamental changes in (?) and ask what software will be necessary to power that.
31:50 - He starts to give advice about how to get started. He gives a really good caveat that things are messy.
32:30 - #1. Spot technology disruptions. Gaps between how things HAVE been done and how they CAN be done.
33:50 - Go to articles in the '90s and you'll see that all we're doing nowadays is trying things that have already been tried 10, 20, 30 years ago, but the time wasn't right.
35:00 - He gives an example of how the founders of PlanGrid realized that $4 billion are spent printing blueprints, but with the iPad all that could be done away with.
36:10 - #2. Start intentionally small. "If people call it a 'toy' you're definitely onto something." Start on a sliver of a problem and make the user experience totally amazing.
37:28 - Example: zenpayroll - They found that the payroll process was a pain. The sliver they went after for startups was just payroll. The incumbents look at something like zenpayroll and think, "Oh, that's small, we don't have to worry about it."
39:00 - #3. Look for things that incumbents can't do because it's economically and/or technically infeasible.
41:20 - #4. Look for businesses at the bleeding edge of technology to be your earliest customers.
43:20 - #5. Listen to your customers. Build what they need, which may not be what they ask for.
43:55 - #6. Modularize, not customize.
44:15 - #7. Focus on the user. It's easier to sell into an organization.
44:40 - #8. Your product should sell itself. But you still need salesmen.
45:30 - Read these three books:
- Crossing the Chasm
- The Innovator's Dilemma
- Behind the Cloud
2015.01.28 - Inc. Magazine - A Look Back on How Box's Aaron Levie Became Entrepreneur of the Year, 2013
https://www.youtube.com/watch?v=kGjj45CgRwI
01:37 - He gives some interesting comments about what it's like at the beginning: "On day one everything about your day and your time and every moment you have is about building a product and getting it in the hands of customers. You're not focused on hiring, you're not focused on selling, you're not focused on scaling, you're just focused on, "I need to build a product and I need to get it in the hands of customers." And there's something very genuine and raw about that process, because you have to be able to create that product-market fit, and that's one of the hardest grinds there is, is that early stage."
06:47 - There's a couple of clips of him interacting with random employees at Box and it's clear he doesn't have any particular connection with them. It comes off as the kind of "blow sunshine up their asses" behavior Ben Horowitz describes in his book. I think he was probably just put under pressure by the film crew to do it.
08:41 - He gives a BS spiel about how he didn't start the company as a way of making money.
09:50 - "The best piece of advice I've ever gotten as an entrepreneur was from Mark Cuban, who said "Don't hedge your bets." That was a lesson very early on that we learned from him, which was, you can't ever balance two completely contradictory things as a means of hedging. You have to decide, "What are you going to believe in?" and put all of your energy behind that. And those are the kinds of strategic decisions and trade-offs that you make every day as an entrepreneur, and it's important that you create the level of clarity and conviction to go after an opportunity that isn't hedging lots of different ideas or lots of different approaches, because that's the surest way that you'll never be good at anything."
Coding he did before he started a company:
- He took CS classes in college.
-- For example, algorithms classes.
-- These didn't really prepare him for web development.
- He was doing a lot of coding for the trading.
Regarding the tech:
- He created the spreadsheet library from scratch.
-- Reason: He wanted to be able to approve changes as they happened and update data programmatically, and a lot of the software packages out there weren't very easy to use.
-- He uses Ember.js
- Web development is less about solving tricky problems and more about putting in the hours to get it done; you can have a rough idea of how long something will take to do.
Getting the first version done:
- He started coding in April.
- Some days wake up at 10am, code for 12 hours on his mattress.
- He can do ~1000 lines in those 12 hours.
- He's pretty interested in the problem itself, and he likes the language; if not for that, he couldn't have worked as hard as he has.
- He's started a LOT of projects that he never finished because he didn't find the problem interesting.
- Having an actual customer to work with for the initial development was a helpful motivator.
- "I can't imagine coding from home all day"
- Finished coding it in four months.
Getting his first customer:
- His first customer was a friend of a friend: an eCommerce company had an office and they gave him a desk in exchange for the software.
- It was almost not a good thing because he built it too close to what they wanted.
- This company had too many desks and his friend was renting one of them. It was a month or two into development and he had a rough prototype.
- This was a 5 person company who had gotten a pretty big office with 30 desks. (NW: It being a 5 person company may have made the decision-maker/CEO more accessible.)
- He sent info about the program to the Princeton listserv, some guys were interested, his company was in San Diego, so B went to his office and showed him a presentation. 1.5 hours later he got an email saying they were interested.
- He thinks it was crucial to meet people in person to close the deal.
Regarding pricing:
- He just asked the first customer before the presentation, "How much would you pay for this?" The guy answerd, "$3-5k/yr". And so in his presentation he said it would cost $5k/yr.
- He read an article that says you should ask 3 questions: 1) What would you pay? (that's your lower limit) 2) What would be expensive? (that's prob. what you should charge) 3) What would be obscenely expensive? (that's your upper limit)
Getting later customers:
- 80-90% of business are referrals; his impression is that "no one does email" because you need to send 18 emails to get a meeting.
- Self-service is hard because you're reliant on a lot of sign-ups / inbound marketing, which is really hard. It's hard to get people to organically visit your site.
- [NW: I brought up the fact that Infer can't really do self-service trials for their original product because there's a costly setup process, and asked whether he had the same issue.] There is a configuration process that takes time; right now it's set up as self-service but he doesn't think that's a great model.
- Self-service gets you basic editing but no one wants basic editing. The product is a lot more useful to customers if they can use the more-advanced features (eg workflows).
- For example, a customer will have a list of orders and they want to select orders and press a button and the button knows to set the flag, or they have a db and want to expose it to customers so the customers can edit the db, but they don't want to build something complicated.
- One problem he's seeing is that the tool is so general that he'll describe how one customer is using it and that use-case won't really apply to the prospective customer he's talking to.
- He's finding that it's hard to describe it in an email.
- He had five sales calls this week and had trouble finding a use case.
- The first customer was really excited and introduced B to five other guys with the same problem.
- He's also been trying to email Princeton
- Cold email and inbound marketing weren't very succesful.
- He set up adwords last night, so it's yet to be seen how that'll work.
- He posted the article on twitter, facebook, linkedin, custom accounts for that company. he also shared it on his personal social media acounts. He only got seven views.
- He was so worried about the launch getting too much traffic, but no one showed up.
- The problem with getting lots of traffic before you're ready is that it can really hurt you if you haven't worked out the kinks yet.
- He's finding that customers will want some features that he doesn't have, so he needs to spend time coding them.
How he's spending his time now that he's switched to selling:
- Now he's mostly doing business stuff, maybe 3 hours of coding if he can find the time.
- What "business stuff" means: Updating the deck, coming up with strategy, coming up with leads, updating the website, mainly thinking about the business model, thinking about features, thinking about how he wants to approach sales.
- Today he had four or five meetings: people he's getting advice from, or customers, or investors.
- I asked a tangent Q regarding the investors: He's not ready to raise a round because he doesn't have customers. If he holds out for another two months he can get a bunch more customers and prove out the product and get a better valuation.
- He also consults two days a week.
- He works seven days a week, but he travels sometimes, or if a friend wants to do something, but otherwise he doesn't have any downtime. If he's not with friends he's working.
- He used to work until 1 or 2am, which wasn't very good, because you get tired. He sets alarm for 8am or 9am but he's not too strict about it. The coworking space closes at 12am and he uses that to force himself to stop for the night. The most important thing is to not burn out.
- He's not afraid to take a break if he's not feeling it (typically this is if he went out drinking the previous day).
- How to keep your eye on the big picture: He structures his day in terms of time. "Today I'm going to work from 12 to 4, and however much I get done between 12 and 4 is what I'll do." versus "I'm trying to get XYZ done today and I'll spend however long it takes to get that done.". That's better than focusing on particular features you want to get done. The focus isn't on finishing the task; it's on maximizing the progress per unit of time.
Twitter
https://twitter.com/sacca
2015-04-27 - Put some effort into your email intros. Saying "You two should talk!" without any context is a total waste of time. Respect your recipients.
2) Of course, all intros should be double opt-in. Dumping unsolicited, contextless shit into someone's inbox makes you a spammer.
3) Restate the context for why it is worth both recipients' time to connect, even though you already covered that in the double opt-ins.
4) Then include something flattering about each recipient to make them feel like they are off on a good foot with the conversation.
5) Good intros make stuff happen. They earn money, they land jobs, they can even lead to marriages. Bad intros just leave people hating you.
6) If you asked for the introduction, for the love of all things holy, it is your job to follow up as soon as the intro is made.
Experiences, not stuff
http://www.whatisleft.org/lookie_here/2 ... s_not.html
Some links that have piled up:
http://www.whatisleft.org/lookie_here/2 ... ick_o.html
- "Pitch suggestions from a VC. It never gets old because so few execute it well."
- Link: http://web.archive.org/web/200503020314 ... ous_w.html
He links to this at some point:
http://www.forbes.com/sites/bruceupbin/ ... heres-how/
This Valley Is Small
http://www.whatisleft.org/lookie_here/2 ... ear_e.html
- re: honesty
Startup School - An Inspiring Room Full of Hackers
http://www.whatisleft.org/lookie_here/2 ... hool_.html
- re: the first YCombinator class
Hints for proposing deals . . . (or, "My word, this inbox is a mess")
http://www.whatisleft.org/lookie_here/2 ... _busi.html
Wikipedia - Christopher Columbus
Ambitious, Columbus eventually learned Latin, Portuguese, and Castilian, andread widelyabout astronomy, geography, and history, including the works of Claudius Ptolemy, Cardinal Pierre d'Ailly's Imago Mundi, the travels of Marco Polo and Sir John Mandeville, Pliny's Natural History, and Pope Pius II's Historia Rerum Ubique Gestarum. According to historian Edmund Morgan,
Columbus was not a scholarly man. Yet he studied these books, made hundreds of marginal notations in them and came out with ideas about the world that were characteristically simple and strong and sometimes wrong, ...[23]
Britannica - Christopher Columbus
(...) Columbus was the eldest son of Domenico Colombo, a Genoese wool worker and merchant, and Susanna Fontanarossa, his wife. His career as a seaman began effectively in the Portuguese merchant marine. After surviving a shipwreck off Cape Saint Vincent at the southwestern point of Portugal in 1476, he based himself in Lisbon, together with his brother Bartholomew [NW: Like Elon and Kimbal, Sam Walton and his brother, etc.]. Both were employed as chart makers, but Columbus was principally a seagoing entrepreneur. In 1477 he sailed to Iceland and Ireland with the merchant marine, and in 1478 he was buying sugar in Madeira as an agent for the Genoese firm of Centurioni. (...) Between 1482 and 1485 Columbus traded along the Guinea and Gold coasts of tropical West Africa and made at least one voyage to the Portuguese fortress of São Jorge da Mina (now Elmina, Ghana) there, gaining knowledge of Portuguese navigation and the Atlantic wind systems along the way. (...)
In 1484 Columbus began seeking support for an Atlantic crossing from King John II of Portugal but was denied aid [NW: age 33-34]. (...) By 1486 Columbus was firmly in Spain, asking for patronage from King Ferdinand and Queen Isabella. After at least two rejections, he at last obtained royal support in January 1492 [NW: Like entrepreneurs getting rejected by VCs. He was ~42.]. This was achieved chiefly through the interventions of the Spanish treasurer, Luis de Santángel, and of the Franciscan friars of La Rábida, near Huelva, with whom Columbus had stayed in the summer of 1491. [NW: Connections are important!] Juan Pérez of La Rábida had been one of the queen’s confessors and perhaps procured him the crucial audience.
https://news.ycombinator.com/threads?id=dhouston
2011.10.18 - Forbes - Dropbox: The Inside Story Of Tech's Hottest Startup
The next day he shot a missive to his staff: “We have one of the fastest-growing companies in the world,” it began. Then it featured a list of one-time meteors that fell to Earth: MySpace, Netscape, Palm, Yahoo YHOO -3.45%.
2015.08.21 - Wired - Slack Is Overrun With Bots. Friendly, Wonderful Bots
2015.08.24 - Thoughts from Alex Danco - Dropbox: the first dead decacorn
A startup’s greatest fear initially isn’t competition from others – it’s simply the worry of being ignored and irrelevant. Past a certain stage of growth, and now you’re worried about your competitors – what if they can built it better, cheaper, faster, stronger? At yet another point, though (I’d argue around the $1B valuation mark) your peers aren’t your biggest concern anymore. If you’re worth a billion dollars, you’re probably doing enough things well that your direct competitors can’t take you to the cleaners overnight. Instead, your nightmares shift to a fate even scarier than being outcompeted: being eclipsed. Specifically,being eclipsed by someone at one level of the stack above or below you.What does this look like in practice? It’s what Microsoft did to the PC manufacturers, and then what the web browser did to Microsoft. It’s what Android/iOS did to the handset makers, and what Facebook is trying to do to them in turn. To those being eclipsed, it’s terrifying because the change happens so gradually and then so suddenly: Compaq was one of the best PC makers around until all of a sudden Windows was what mattered, not the machine it ran on. Then a bit later on, Windows ruled the world and Microsoft was King- but all the interesting stuff started happening inside the web browser. My point being: Compaq didn’t get creamed because somebody else came along and made a better desktop PC. They lost because all of a sudden Windows was what was important- and other PC Manufacturers like Dell were better suited to thrive in the new reality of modular commodity.I preface my unicorn prediction with all of this to emphasize once again – when billion dollar tech companies die, it usually isn’t at the hands of their direct competitors. It’s simply because they go from one day being the best at what they do, to the next day being still the best at what they do except it doesn’t matter. When these companies are really big – i.e. in the $10B+ Decacorn range – it matters.
The problem for Dropbox is that our work habits are evolving to make better use of what’s available; specifically, the awesome power of the internet. And on the internet, the concept of a ‘file’ is a little weird if you stop and think about it. Files seem woefully old-fashioned when you consider organization tools like Evernote, task management tools like Trello, and communication channels like Slack. Files are discrete objects that exist in a physical place; the internet is … pretty much the opposite of that. And while it made sense that the birth and early growth of information and the internet would contain familiar, old-school ideas and organizing systems, and some point the other shoe was bound to drop. To me, Slack feels like the first truly internet and mobile-native productivity platform – especially as it expands beyond messaging and into workflow automation, helper bots, and who knows what else. Dropbox might be the pinnacle of file management, but Slack is the beginning of what comes next.
2015.09.22 - The Verge - The case against Dropbox looks stronger with each passing day
This is an account of the rise of Enterprise Rent-a-Car by a guy who started there very early and ended up in some very high position for a bit (he's now a millionaire); the founder of Enterprise is now a billionaire, but I don't think there are any (auto)biographies of him out at the moment.
I found out about this guy from Travis Kalanick, apparently Travis is a big fan of Gary and/or they're friends.
Amazon:
http://www.amazon.com/The-Emperor-Ice-C ... 0974885703
I absolutely love Haagen Dazs; it's one of my favorite products, and seemed to anticipate the now-huge market for premium/natural ingredients (that's the basis for Whole Foods, for example). This was written by the wife and cofounder; it's a good book that seems to have mostly flown under the radar of the business world: the amazon page only has 1 review, and I'd never heard it mentioned before in any lists of business books. To be honest it isn't as engaging as some of the other autobiographies I've read (I can't quite put my finger on why), but it does have a lot of good information in it. I actually have an autographed copy which the recipient apparently never read (because the book was in like-new condition when I got it).
Thoughts from the book:
- they struggled very hard to compete against the huge ice cream makers; eventually they were able to be successful by going into a niche market that the big guys weren't paying attention to. It's a lot like a small animal deciding that it's not worth going after the same patch of food as a much bigger animal, and instead looking around for a patch that no big animal has seen yet. In Haagen Dazs' case, they went after the premium niche: extremely high quality ice cream that would be sold for a higher price.
- two big things that separates Haagen Dazs from other ice creams are 1) the addition of eggs, and 2) a much lower proportion of air-to-ice-cream. I didn't know this before, but apparently most ice creams are about 50% air (by volume). Just by accident, one day Reuben Mattus discovered that ice cream tasted way better with a lower amount of air. Now HD has about 20% (according to Rose).
- it seems that the Mattus family had a harder struggle to success than the Waltons. I want to spend some time thinking about what separated the two families' stories.
. . . One thing is that the Waltons were borrowing HEAVILY for many, many years to expand quickly. Sam Walton talks about borrowing from one bank to pay back another. The Mattus family also borrowed, but it doesn't seem they borrowed to the same extent as the Waltons. The Mattus family also seemed to borrow for risky ventures, like a never-before-done business idea (e.g. ice cream vending machines in the subways), rather than for an expansion of a proven idea (e.g. the Waltons borrowed to open new stores, which they KNEW from experience that people would prefer to whatever else was in town). The Mattus family had to give up the vending machine idea when 1) a kid tried to steal some ice cream and got his hand caught, resulting in a lawsuit, and 2) they discovered that they didn't have a way of repairing the machines. I guess the underlying lesson here would be, "To grow quickly, borrow money to bring your proven product to new people. It may be slower-going if you try to further-cultivate your existing base of customers through new ideas."
. . . Another thing is that Sam Walton aggressively sought out all existing good ideas in his industry from the very beginning; he came across one of the major ideas of his business, discounting, relatively early on. Walton said in his autobiography, "Most everything I've done I've copied from someone else" (or something like that). Reuben Mattus, on the other hand, seemed to rely more on himself for inspiration; it wasn't until well into his career that he came across the ideas that finally made his business take off (adding eggs and lowering the air content). He didn't come up with the ideas himself, though: one was an accident and the other was an idea he got from French ice cream makers. He may have benefited from following a path more like Walton's, aggressively seeking out every bit of information that existed all over the world about making ice cream and related products (from which he could get ideas).
I love this book. His prose isn't as easy to read as it could be, but the stuff he talks about are all top-top-top ideas. This is a book I'll need to re-read to catch all the ideas I missed the first time.
Lessons to be drawn from the book:
1. A good idea is not even close to being sufficient to be successful. Execution of the idea is extremely important. (Felix Dennis says the same thing)
2. Constantly experiment with new ideas. Don't judge one way or the other until you've examined the idea thoroughly.
3. Try to reduce risk ahead of bad events by coming up with a "Plan B" for everything you depend on.
Notable Quotes:
"Almost anyone can think up an idea. The thing that counts is developing it into a practical product." (Intro, p3)
"When [people] talk about improvements usually [they] have in mind some change in a product. An "improved" product is one that has been changed. That is not my idea. I do not believe in starting to make until I have discovered the best possible thing." (Intro, p13)
"We are constantly experimenting with new ideas...I do not believe in letting any good idea get by me, but I will not quickly decide whether an idea is good or bad. If an idea seems good or seems even to have possibilities, I believe in doing whatever is necessary to test out the idea from every angle." (Intro, p13)
"...we do not want to be held up in production or have the expense of production increased by any possible shortage in a particular material, so we have for most parts worked out substitute materials." (Intro, p14)
[after talking about ways they've improved the manufacturing of the cars]
"If we had devoted all of this energy to making changes in the product we should be nowhere; but by not changing the product we are able to give our energy to the improvement of the making." (Intro, p14)
My Q: So...what's a formulaic way of figuring out when you should focus on making changes in the product and when you should focus on improving the manufacturing of the product? Or how much energy you should invest in each category?
"The principal part of a chisel is the cutting edge...What is the use of putting a tremendous force behind a blunt chisel if a light blow on a sharp chisel will do the work?...The cutting edge of merchandising is the point where the product touches the consumer. An unsatisfactory product is one that has a dull cutting edge. A lot of waste effort is needed to put it through. The cutting edge of a factory is the man and the machine n the job. If the man is not right the machine cannot be; if the machine is not right the man cannot be. For any one to be required to use more force than is absolutely necessary for the job in hand is waste." (Intro, p14-15)
The institution that we have erected [the Ford Motor Company] is performing a service. That is the only reason I have for talking about it. The principles of that service are these:
1. An absence of fear of the future and of veneration for the past. One who fears the future, who fears failure, limits his activities. Failure is only the opportunity more intelligently to begin again. There is no disgrace in honest failure; there is disgrace in fearing to fail. What is past is useful only as it suggests ways and means for progress.
2. A disregard of competition. Whoever does a thing best ought to be the one to do it. It is criminal to try to get business away from another man--criminal because one is then trying to lower for personal gain the condition of one's fellow man--to rule by force instead of intelligence.
3. The putting of service before profit. Without a profit, business cannot extend. There is nothing inherently wrong about making a profit. Well-conducted business enterprise cannot fail to return a profit, but profit must and inevitably will come as a reward for good service. It cannot be the basis--it must be the result of service.
4. Manufacturing is not buying low and selling high. It is the process of buying materials fairly and, with the smallest possible addition of cost, transforming those materials into a consumable product and giving it to the consumer. Gambling, speculating, and sharp dealing, tend only to clog this progression.
(Intro, p15-16)
"Given a good idea to start with, it is better to concentrate on perfecting it than to hunt around for a new idea. One idea at a time is about as much as anyone can handle." (Ch1, p17)
"[Growing up on a farm,] there was too much hard hand labour on our own and all other farms of the time. Even when very young I suspected that much might somehow be done in a better way. That is what took me into mechanics..." (Ch1, p17-18)
"There is an immense amount to be learned simply by tinkering with things. It is not possible to learn from books how everything is made--and a real mechanic ought to know how nearly everything is made. Machines are to a mechanic what books are to a writer. He gets ideas from them, and if he has any brains he will apply those ideas." (Ch1, p19)
After dropping out of accounting school sometime around 1980, Kameyama says he considered almost any work that promised to pay well. There was a very brief adventure as a semi-nude dancer at a gay Chippendale’s club. Once, he tried to get a job at a hospital washing cadavers.
By the time he was in his late twenties, Kameyama was the owner of several rental movie shops. But when Japan’s version of Blockbuster Video set its sight on his town, he knew it wouldn’t last.
To survive, Kameyama decided to try making movies instead of renting them. He set up his porn factory in an empty supermarket, where he used thousands of household video recorders to copy from master tapes, running night and day.
He was able to convince most video stores to stock his product by making them an offer too good to refuse: “Here’s a box of 100 tapes, pay me only for what you sell.” It was a deal that didn’t require an army of salesmen to pitch. And, because viewers rarely complained about picture quality, unsold tapes were easily re-used.
The next big idea was a cash register Kameyama developed that looked like a tablet computer. He gave it to customers for free, in exchange for their sales records -- data that made him better than anyone at tracking the preferences of Japan’s porn consumers.
The biggest innovation, though, was going online. That wasn’t an obvious choice in 1998, when DVDs were still new and fewer than one-in-five Japanese households were even connected to the internet.
The scam that got him arrested focused on the pay-by-the-minute phone chat lines popular in the early ’90s. These were the German equivalent of 1-900 party lines that the phone company charged as a long-distance call, usually at around $1.20 a minute. The operator of the line received a percentage from the local telecom, about 15 cents a minute per caller; the more callers, the more money the party line owner made. So Kim set up his own party line in the Netherland Antilles. Then he generated massive caller traffic using stolen calling-card numbers from the hacker bulletin boards.
“It worked really well,” Kim says. He says he made more than 75,000 Deutschmarks (or about $195,000 today)—”which at the time was a huge amount of money, because I was a kid. I wanted to buy more modems for my BBS, a better computer—nice stuff to advance my capacity.”
“The Ultimate Rally was supposed to be Gumball on steroids,” Kim says. He’d host it somewhere like North Korea and attract professional drivers from Formula One with a million dollars cash awaiting the winner. Kim saw a business based on video rights, films, and sponsorship.
Kim and his new partner, Bram van der Kolk, drummed up interest by sending out videos of Kim’s racing exploits, often by email. The problem was, the video attachments were too big, and the emails kept bouncing. Clearly, there had to be a better way to share large files online.
They called their solution Megaupload. The charges against the company describe their technology concisely: “Once that user has selected a file on their computer and clicks the ‘upload’ button, Megaupload.com reproduces the file on at least one computer server it controls and provides the uploading user with a unique Uniform Resource Locator (‘URL’) link that allows anyone with the link to download the file.”
“It was a little idea,” Kim says. “At that point we honestly never expected to do anything more with it.”
At first Kim used Megaupload to generate buzz around the Ultimate Rally, offering $5,000 for the best street-racing videos. “All of a sudden you have all these car people uploading videos and linking to them to share with friends,” Kim says. Soon they were pushing the limits of their servers.
This had potential beyond racing videos, he began to realize. File sizes were getting bigger; HD had gone mainstream. The future was obvious. He never would have seen it if he was still in Germany, if his old business hadn’t been destroyed. The cloud was the future. “I decided, fuck Ultimate Rally,” Kim says. From then on, he would be all Megaupload. But he would no longer be Kim Schmitz.
I'm Louis Reingold, the founder & CEO of Soflyy. I've been profitably building software for the web since 2005, when I was 14 years old.
It seems everyone in our industry has some heroic story about their success, a blog where they share their purported business wisdom, and some page on their website that rambles on about their guiding principles and how enlightened they are.
We don't do any of that. This company exists to make money, so we try to avoid distractions. We generally avoid blogging, speaking, bragging about our success under the guise of "transparency", attending too many conferences, doing interviews, and anything else that would take our focus away from what matters most: our customers and our products.
There's no way to tell what it was.[In the mid-2000s,] the blogs I followed trended toward product launches, and it felt like everyone around me was succeeding. The formula for success seemed simple:
Pick a task that people already use software for (communicate, organize, write, etc).
Build a better piece of software to accomplish the task.
Iterate on it with customer feedback.
Build up enough revenue to quit your job and work on it full time.
http://www.forbes.com/sites/clareoconno ... ur-energy/
He just noted what ingredients were being used for a 16 oz energy drink (“not rocket science”, as he told me — caffeine, vitamins, taurine etc — the same ingredients used by many similar energy products) and then hired a company to come up with a version that’d work in 2 ounces [in comments]
Parent company Living Essentials initially outsourced the manufacture of its elixir to Custom Nutrition Laboratories in Carrollton, Tex. In 2007 it replaced Custom but continued using the same formula. Custom sued, and the case went on for almost two years, moving among state and federal courts in Texas and Michigan until the parties settled in 2009 for undisclosed terms. Custom’s position that it owned 5-Hour’s formula never changed.[in the sidebar]
2012.09.21 - TechCrunch Disrupt SF 2012 - Fireside Chat With Marc Benioff
- He stays very cool when prodded with antagonizing questions.
- He uses the interviewer's name a lot ("Michael"), to the point where it's noticeable and seems affected/artificial.
- He also touches the interviewer a lot (the interviewer even mentions it in the 2014 interview)
---------
- he talks about Dreamforce for a minute or two
- he gives an anecdote about jumping off a bridge
- he talks about his 1/1/1 model: 1% of equity, 1% of profits, 1% of employee hours
08:10 - He talks about Warren Buffett's model. He says Buffett kept being asked by his wife to give away his wealth.
09:40 - They give people 6 paid days a year to go do volunteer work.
11:10 - They start talking about fitbit. He says he's an investor in fitbit. He also has a power balance bracelet.
13:20 - He talks about how he doesn't think about competition as a zero-sum game. It sounds like he doesn't really believe it.
17:10 - He cites a statistic about how by 2017 CMOs will have bigger budgets than CIOs(?)
17:40 - "Why sell when things are going great?" Very interesting.
18:20 - He didn't buy Yammer because he already has Chatterbox and it would've been hard to integrate the two.
20:20 - He talks about Google. He thinks Google isn't going to go after enterprise b/c Larry / Sergey are more interested in other things.
21:00 - He talks about Facebook. Facebook is a big customer of Salesforce.
21:40 - He doesn't think Facebook should have gone for the Nasdaq; he thinks they should have gone for the NYSE.
22:40 - He says Facebook needs to focus on revenue growth. He says they have the opportunity to be the next Google, but they need to figure out what the revenue opportunities are.
23:35 - Salesforce has bought about 25 companies. He talks about what he looks for
25:00 - He talks about how he uses Hawaii to relax
26:00 - He talks about how his grandfather would go to watch a movie the night before a trial.
2014.09.09 - TechCrunch Disrupt SF 2014 - The Things Marc Benioff Really Cares About
00:00 - Some random comments about the new iPhone and the leaked Kate Upton / Jennifer Lawrence photos.
01:40 - Yesterday Marc announced a venture fund. What's that about? A: It's just a name for what we've already been doing.
02:30 - He talks a little about the companies he's really interested in investing in: companies that use the tech he's already invested in.
04:20 - He says you really hear a gasp when you see enterprise data on wearables.(?) He thinks they're going to be a big part of the enterprise world. He gives Glass as an example.
05:50 - They talk about the growth of Salesforce. They've been having great growth in Europe
- ~06:00 - They talk for a few minutes about Salesforce's philanthropy
~13-14 - The interviewer talks about Marc touching him.
16:15 - Interviewer asks if Marc would be interested in politics. Marc says he has no interest in that. He gives a reason that he likes to say what he wants to say. Michael
19:00 - He asks politicians for four things: 1) H1-Bs and visas, 2) patent reform, 3) the ability to easily move cash from overseas to the US, maybe 15-20%, 4) balanced budget for the US, things like Simpson-Bowles to deal with entitlements
22:50 - Q: What do you think about Apple / Tim Cook? A: He gives
25:40 - He talks about how he doesn't like when entrepreneurs say they'll give back after they get rich. He goes on for a few minutes.
28:30 - He talks about when he was at Oracle. He joined when he was 21 and was a VP by 25. He says he had a million-dollar salary, a ferari, a condo. But he didn't feel fulfilled. He gives an anecdote about going to India and having some random guru tell some other guy to give back. His delivery seems a lot more believable than Aaron Levie's.
Fascinated by America, he went to the US at 16 for a short-term study abroad program, eventually quitting school in Japan and moving to San Francisco a year later. Never one to waste time, upon enrolling at his new high school, Son insisted that he already knew everything in the textbooks, arguing that he ought to be able to take the college preparatory exam right away. When the school caved and let him take the test he argued that it wouldn't be fair unless he was able to take it in Japanese, eventually getting permission to use an English-Japanese dictionary, passing the test, and quitting the school two weeks after he enrolled. This pushiness would be a common element in many of Son's successes as a businessman.
Determined to make a name for himself in his 20s, he began studying economics at UC Berkeley in 1977, at the same time getting his first introduction to the world of microchips. Son was convinced early on that he could make a fortune with computers, and he committed to a relentless schedule of one new entrepreneurial idea per day. By the end of the year he would amass more than 250, including an idea for a translation device that he would sell to Sharp the next year for ¥100 million (a little over $450,000 in 1978 funds) — seed money he would use to start his first company in the US.
Son returned to Japan to start a software distribution company called Nihon SoftBank in 1981 — the name was later shortened in 1990. Despite having no software to sell, Son managed to nab an exclusive contract with both Osaka electronics retailer Joshin and top Japanese software developer Hudson, quickly rising to the top of the country's nascent computer industry, grabbing some 50 percent of Japan's retail market for computer software by 1984.
Q: Did you really want to retire in the first place?
A: I thought I might spend the rest of my time on golf. But thinking about it now, I'm happy playing whenever I have some downtime in my busy schedule, and even if I had all the time I wanted to play, my score probably wouldn't be very good. [If I had retired,] I think I would have kept in contact with venture capital investors and entrepreneurs. I'm sure staying involved as something like a coach would be fun. If I handed over the reins to a successor, I wouldn't stick around [to pull strings] like a retired emperor. But a big paradigm shift is staring us in the face. If I left things to someone else despite having my own thoughts on it, I wouldn't be true to myself.
Q: Alibaba Executive Chairman Jack Ma Yun called you just after the deal was announced.
A: Jack's theory is that whoever controls data controls the world. Based on that, he said [the ARM deal] was just what he'd expect from me. He's also said he wants to meet with me soon with his chief technology officer in tow to deepen [Alibaba's] partnership with ARM.
2011? - Max Levchin at Startup School
- General thought: It's interesting to see the difference between how Levchin talks about himself and how Peter Thiel talks about himself. Thiel projects an attitude of extreme confidence while Levchin is more self-deprecating. I can't remember Thiel ever saying anything self-deprecating.
00:30 - He never plans these talks.
02:10 - One thing he was asked to talk about was founders and cofounders.
- He started 4 companies, all of them failed, the 5th one was PayPal.
2:40 - He has a story about a moment when he thought, "Holy shit, I picked the wrong cofounder..."
- Thiel lived in a nice complex when they started PayPal. Levchin lived within walking distance from there.
03:50 - They were talking about how they were going to take over the world until 2am.
- He had moved to Palo Alto 6 months before starting PayPal.
- He had the thought, "Wow, I shouldn't have started a company with him, he'll just abandon me..."
5:10 - He made a list of top mistakes as an entrepreneur
5:30 - He thinks it's not always necessary to get a cofounder.
- He didn't have a cofounder for Slide, and it didn't come close to PayPal's level of success.
6:37 - Peter was arguing very convincingly that the markets were about to crash.
7:03 - LOL - He points out that Thiel ALWAYS predicts doom-and-gloom.
- They had 9 weeks of cash in 2000.
8:24 - He says Thiel is not a warm-and-fuzzy guy.
8:30 - Thiel was talking to Yakuza to raise money, they wired them money without being given instructions to do it.
09:15 - He says the warmest moment he had with Thiel was when Thiel said, "Don't worry about it, we'll raise the money."
09:50 - He says the job of a great cofounder is to provide a platform of support when you most need it.
10:22 - They didn't have to take a valuation hit when Thiel raised the money.
10:40 - You can start a company on your own, but you really need someone there to support you and tell you you're not fucked when you think you are.
11:45 - Picking a cofounder you have a hard time dealing with, or you don't want to impress on occasion.
12:15 - Thiel was giving a lecture about financial systems when Levchin met
12:40 - Levchin says that over the next few months they would meet in coffee shops and throw each other math puzzles and
13:25 - Levchin started a company with a guy he was super impressed with.
13:50 - The cofounder was trying to sell something.
14:45 - When you ever get a feeling like, "Ooh, this isn't going to work", then break up immediately. Don't put it off.
- It's hard because a lot of the time the other person will be someone you really respect.
15:35 - His favorite movie quote of all time is, "Whenever there's any doubt, there's no doubt."
15:55 - One of his favorite mistakes:
- You'll find a high-level engineer who is very well-liked, and you know the person is a net-negative: they're creating a faction, or they're a nasty person. You need to get rid of that person ASAP. It's really hard.
17:35 - Firing people is probably the most painful thing, especially when you like the person.
18:20 - He's going to teach us how to fire people:
- Sit the person down and say, "I'd like to ask you to resign." It really works.
19:30 - A classic engineering mistake: Confusing "hard" and "valuable"
- When I was young I'd run into a hard problem and assume that solving it I'd get some great things. The reality is that really, really valuable things are frequently pretty hard. However, there are many hard things that aren't really valuable.
- 21:00 - Example: the original name of PayPal was FieldLink. They wanted to build a PDA and would create a secure VPN into the company. The problem was the PDAs were severely underpowered.
22:28 - Peter put a bunch of money into Levchin's idea and went around trying to pitch it.
23:40 - The big issue he ignored: nobody wanted to read their corporate email on a PDA. The idea was too ahead of its time. There were only 1 million PDAs, and most of them were owned by consumers.
24:40 - Don't let your office become a dump. It's just going to get worse.
25:20 - When Slide got acquired by Google they were in their 4th office, and the office was really a dump.
25:55 - Story: [Side-note: Levchin says he doesn't watch TV.] He tells a story of a VC who told him his business plan was the "Underpants Gnome" business plan: 1. Solve problem 2. ? 3. Profit!
27:35 - The single most annoying thing he sees when evaluating potential angel investments is underpants-gnome thinking (and he still hasn't seen the episode).
28:20 - Fear of failure and fear of judgment is a big issue.
28:40 - For a few years after PayPal he
- If you have a successful company in your past you can really cruise: you can raise money at a high valuation, and people won't call you
29:50 - Nothing really matters in starting a company other than passion for the product. You can't waste time thinking about "How will this look to others?"
31:20 - Last piece of advice: Are you doing the things you're good at? Don't worry about your mistakes! If you're an amazing coder, maybe you shouldn't be trying to be a CEO.
This book is a riot; Kroc was very intelligent, had a lot of attitude, wasn't afraid to scream and swear, loved to make money and wasn't ashamed of it. the book moves fast and sticks to the essentials, which seems appropriate considering those are the qualities that made McDonald's so successful in the first place.
I ate my fair share of McDonald's when I was younger, and while I haven't gone to one in a long time, and I'm not happy about some of the problems McDonald's seems to create, after reading this book I have to admit that the company has done quite a lot of good. The basic execution that made them successful was to do things /faster/, offer /better/ tasting food for /cheaper/, and have /cleaner/ restaurants. By figuring out the best-possible way of doing things and then standardizing them, they were aiming to help spread good ideas and improve quality. Nowadays people are a bit more health conscious and worried about the effects of all this greasy food, but when McDonald's was coming up in the world people weren't really thinking about it (or at least, that's my impression). You could take the McDonald's franchise model and apply it to anything you want, including super-healthy food.
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Chronology of Success
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- he got work experience while still a kid: setting up a lemonade stand, working at a grocery school one summer while in grammar school, working at his uncle's drug store. he started a music store with a friend but it failed
- while still in his late teens / early 20s he worked as a paper cup salesman by day and a piano player on a radio station at night. this was back when paper cups were a completely new thing that most people had never seen before. and paper cups were also not as good back then as they were now; they weren't as stiff.
- he was a better salesman than most: he made sure he dressed sharp, he took care of his customers so that they would trust him (e.g. telling his customers when his company was about to raise prices so that the customers could stock up ahead of time and save money).
- he spent around 20 years in the paper cup business as a salesman, gradually rising up through the ranks and having people under him (leadership experience). he became comfortable making deals with large companies for large quantities of paper cups (which would presumably help him when forming McDonald's).
-
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Notable Quotes
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114-115
I have had people with us who seriously proposed that we plant spies in the operations of our competition. Can you imagine? Next thing we'd learn that Ronald McDonald is a double agent! My response to that kind of claptrap has always been that you can learn all you ever need to know about the competition's operation by looking in his garbage cans. I am not above that, let me assure you, and more than once at two o'clock in the morning I have sorted through a competitor's garbage to see how many boxes of meat he'd used the day before, how many packages of buns, and so forth.
2013.09 - New York (Magazine) - In Conversation: Michael Bloomberg
Interviewer: But your wealth has helped you get things done politically.
Bloomberg: Well, John Lindsay, he’s a good-looking guy—all right, that’s an advantage too. I come with a different advantage. There are people that had great educations at Ivy League schools. I was a straight-C student at Johns Hopkins. Don’t ask me how I ever got into Harvard Business School. Now [Harvard president] Drew Faust is asking for my advice on education. But let’s get serious as to why.You can come from all different backgrounds. The real question is, do you have the desire and the willingness and the creativity and the moxie? And that’s all in your head. When people say, “It’s not fair, you had an advantage,” I’m thinking, Well, they had an advantage—they went to better schools, or they came from wealthier families. My father was a bookkeeper. He worked seven days a week until he checked himself into the hospital to die. My mother went the next day to the library, got a book on driving, taught herself to drive on our quiet street, because she said, “I’m gonna have to be the chauffeur from now on.”
I know what hard work’s about. I still come back to what my strategy always was and will continue to be: I’m not the smartest guy, but I can outwork you. It’s the one thing that I can control.
Interviewer: You’ve been a Democrat. You’ve been a Republican. You’re currently an Independent. Which party do you feel closest to now?
Bloomberg: I would describe myself as a social liberal and a fiscal conservative. But I think I’m too liberal for the liberals, because I actually try to deliver the services rather than just promise them. If they delivered everything they promised, nobody could afford it. I actually am a conservative more so than other conservatives in the sense that I think you could go and cut 2 or 3 percent out of the budget in every agency. We’ve done that twelve times, and we’ve cut roughly a billion and a half and there’s six-odd billion that’s recurring, and you can go and cut people or find other revenue sources. There are ways to do those things.
The quote below was transcribed from the video. I don't think it shows up in the text of the interview.
Regarding his first 100 days:
Bloomberg:Everybody kept saying, "Well, what have you done?" And I kept saying, "Build a team." And they said, "Oh yeah, that's nice, but what have you done?" And I kept saying, "Build a team." When you have a business or an organization with 280,000 employees, 8.4 million customers (that we want to phrase it), $70 billion budget, you just have to delegate, and you have to give authority to go along with responsibility. That not only lets you run the place, but it also lets you attract great people. And many businesses don't, and most governments do not delegate. And so why would you want to go to work in a place where you're going to be held responsible if the shit hits the fan, but you don't have any real say in it.
I was hooked from the first chapter. Bloomberg comes off as a much more interesting and lively person in this book than he appears in his speeches as mayor of NYC. He throws out a lot of great anecdotes and bits of advice for people interested in being successful at what they do.
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Main Thoughts
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- Bloomberg's story seems VERY similar to Carnegie's. Both spent 15 years in their industry before starting their company: gradually working their way up from within a large organization, developing contacts, gaining insight into how a particular market worked, working their butt off, etc.
- He happened to spend the EXACT SAME AMOUNT OF TIME in his industry as BOTH Sam Walton and Andrew Carnegie did in theirs before starting the businesses that would make them rich. 15 years in all three cases. But in Sam Walton's case, he didn't really have as much of a "boss" as the other guys. Although Sam was still operating within a larger organization: the Ben's Five-and-Dime chain. So Sam still had to deal with higher-ups, even if not as frequently as Carnegie and Bloomberg.
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Chronology of Success
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- Went to Johns Hopkins, did academically poorly because he wasn't motivated (C grades), BUT:
- Just like Sam Walton, he was the "big man on campus", and organized all kinds of events. He also ran for student government, etc.\
- He was accepted to Harvard Business School. He said that while there were some smart people there, there were some others he wasn't impressed with. Same impression I got when visiting HLS. He did say that many of those relationships became useful to him later in life.
- After graduating he had no idea what to do, so a friend told him to call up Salomon Bros and ask for a job. At that time securities trading was not the popular industry it is now, so it was easy to get in.
- He then spent 15 years working harder than anyone else around him (just like Carnegie), gradually working his way up from the scummiest work to positions of big responsibility (just like Carnegie).
- After 15 years he was fired when Salomon Bros merged with another company, but was given a $10 million severance.
- He used that money to start a new company, which became Bloomberg.
- The new company was designed to fix a problem he saw in the market he had spent the past 15 years working in. Because of that investment in time he was able to identify a lucrative problem, get the right people to work for him, put in the up-front investment to get the project going, and get the attention of the customers he would need to buy his product. Just like Carnegie.
********
Questions
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Q: Was it really necessary that he work for 15 years at Salomon Bros before starting the business that made him rich?
A: Hmm...it seems like it would have been much more difficult if he had started earlier. He had 3 cofounders, all of whom had been forced out of Salomon at the same time as him (iirc); he prob. would not have been able to get them to leave the company earlier. If he had started his company alone, it isn't clear 1) if he would have spotted the opportunity that he did, or 2) how likely he would have been able to get a finished product to a first customer.
https://en.wikipedia.org/wiki/Palmer_Luckey
2012.04.15 - MTBS - Oculus "Rift" : An open-source HMD for Kickstarter
2013.11.07 - EuroGamer - Happy Go Luckey: Meet the 20-year-old creator of Oculus Rift
2014.05.20 - WIRED - The Inside Story of Oculus Rift and How Virtual Reality Became Reality
Luckey does not come from money, nor did he have access to the prep-school, Ivy League fast track that Zuckerberg and so many of Silicon Valley’s young masters started on. Luckey grew up the oldest of four children, in a small duplex in Long Beach, where he was home-schooled by his mother. His father, a car salesman and an amateur mechanic, taught him to tinker in a garage full of tools. (NW: This is a trend. Many successful guys had fathers who got them started: Spielberg, Ted Turner, Woz.) Luckey started small, building his own computers, and then moved on to wilder pursuits. For a time, he got really into lasers and accidentally burned a small blind spot into one of his retinas. “It’s not a huge deal,” Luckey says. “We have blind spots all over the place in our eyes, but our brains compensate for them.”
Luckey funded his hobbies by buying broken iPhones on eBay and repairing and reselling them, and he sought out fellow tinkerers on Internet forums. (NW: Do this!) “Even if you only have a couple of people per town who are interested in something, in aggregate over the entire world you can create a community of hundreds or thousands of people who are interested in this tiny hobby,” he says. Luckey got into V.R. by way of computer games, which he was obsessed with for a time. After building what he recalls as a “beautiful six-monitor setup,” for extreme visual saturation, he wondered, Why not just put a small screen directly on your face? He wrote about his ambitions on a forum and then updated his virtual friends as he made progress.
In April 2012, at the age of 19, he announced that he’d finished his first V.R. device and that he planned to offer it as a do-it-yourself kit (NW: So offering it as a complete product was an iteration.) on Kickstarter, so that anyone could make his or her own rudimentary system. “I won’t make a penny of profit off this project,” he wrote. “The goal is to pay for the costs of parts, manufacturing, shipping, and credit card/Kickstarter fees with about $10 left over for a celebratory pizza and beer.” He planned to call the device Oculus (Latin for eye, a “supercool word”) Rift (a reference to the way that virtual reality “creates a rift between the real world and the virtual world”).
Luckey sent his prototype to a rock-star video-game developer, John Carmack, who showed it to journalists at E3 (Electronic Entertainment Expo), the annual video-game conference in Los Angeles, declaring it “the best VR demo probably the world has ever seen.” Luckey was suddenly beset by requests from excited video-game reporters. Sony offered to hire him to run a virtual-reality lab in Santa Monica, which sounded like a huge improvement over his parents’ garage. “It was pretty crazy,” he says, recalling that time. “It was just me.”
As Luckey cast about for advice, a forum acquaintance introduced him to Brendan Iribe, (NW: So reach out to people! Don't just stay inside your own head.) a gaming entrepreneur who, at 32, was a relative veteran. Iribe had trouble tracking Luckey down—at the time Luckey was worried about government surveillance and he refused to use a cell phone—but they eventually connected and arranged for a dinner at STK, a steak house in Westwood. Luckey showed up late, wearing sandals and an Atari T-shirt, and began talking at a full sprint. “O.K.,” Iribe recalls thinking, “this is going to be fun.”
Iribe and three of his friends who had worked with him at two video-game software companies—Nate Mitchell, Michael Antonov, and Andrew Reisse (who died a year later in a hit-and-run accident)—offered to help. Iribe told Luckey he would lend Oculus a few hundred thousand dollars and help him create a promotional video for a Kickstarter campaign. As an act of good faith he wrote a $5,000 check, no strings attached. (NW: ILuckey moved out of his parents’ house and hired another teenage techie, and the two boys set up shop in a two-star flophouse motel in Long Beach. They pushed the beds to the corners and used every available electrical outlet, turning the room into a crash pad and a laboratory. “It was a little bit shady,” Luckey admits with a devilish grin.
Luckey and Iribe had initially planned on asking backers for a total of $500,000 to complete the prototype, but at the last minute Luckey got spooked and cut the goal in half. Multi-million-dollar Kickstarter projects were a rarity at the time, and Luckey worried that if the campaign failed to attract sufficient support that would be it for his idea.
Instead, they hit their goal in a matter of hours; by the time the campaign ended, the following month, Luckey had raised $2.4 million from nearly 10,000 people. He moved out of the motel.
“There is no inherent reason why medicines should taste horrible — but effective ones usually do. Similarly, there is no inherent reason why decisions should be distasteful — but most effective ones are.” -Peter Drucker, The Effective Executive
Back in 2001 after my birthday someone in the office introduced me to online dating sites. I went back to my desk and checked out udate.com and kiss.com and lavalife/web personals. I was bored and I wanted to chat with people. I was really annoyed when I found out you had to pay for everything, I ended up telling the girl who introduced me to the sites that I could do better and make them for free, so I went and registered Plentyoffish.com. All I ever ended up doing was creating an index page and forgot about it.
Fast forward to 2003, I had been jumping jobs every couple of months from one sinking ship to another. I had just joined a new company with 30 employees on Dec 1st of 2002, by the time Feb rolled around 15 people had already been laid off and I started to worry. I started thinking about finishing my site and learning asp.net at the same time and I wondered why people didn’t come rushing to join. I quickly started building my site and actually made it somewhat functional although most pages where in asp, others in asp.net. Somehow I ran across this sitehttp://www.cre8asiteforums.com, once there I was introduced to the concept of SEO, boy did that open my eyes. I started exchanging links with everyone and anyone and finally got a bit of traffic. Then I sat back and waited for the famous google dance, the once a month update. At the start of March google updated and I got pagerank, but still not much traffic and I made my first post here asking for help.
At the start of March I had ~40 members my site was running off my home machine, people where complaining I didn’t allow image uploading so by mid march I had added image uploading. You can see how absolutely horrible the site looked here. By the end of March my site went viral and started growing 2 to 5% a day and it was off to the races from there. I was still developing on the live site/home machine and I always prayed nothing would crash.
Then at the end of June Adsense came out up until then I had no real way of monetizing my site. I had a single affiliate program but it didn’t even make $40/month. I went and added Adsense pretty quick, I made a whole $5.63 cents my first month, but that was more then enough for me to realize that I wouldn't go broke running the site and I could make a business out of this with enough traffic. In my evenings I started working really hard on my site learning asp.net trying to convert my hastily put together asp pages to asp.net and trying to add more pages/functionality. I was doing the Beta thing before it was cool. I was updating/building the live site every couple of minutes, if the site crashed I didn’t really care, only took a few seconds to fix it.
I once again complained in my thread about my sites lack of SEO results it was September of 2003, I had 10k signups now and only a ~100 visitors a day from google and other 2,000 unique visitors a day from who knows where. By the time October rolled around my site was rolling, I quit my job at the start of the month and FINALLY went and bought a little server and moved my site to a hosting provider at the end of October. Still can’t believe I ran my site off my home computer for the first 8 months.
My short description leaves a lot out, but basically I spent every waking minute when I wasn't at my day job reading, studying, and learning. I picked out "enemies" and did everything I could to defeat them which ment being bigger then them. I refused to accept defeat of any kind, and I constantly forced myself to test new things. I never tried to perfect anything it didn't matter if things didn't work 100% as long as it was good enough I would move onto the next thing. In 2003 the dating market was growing 80% a year unlike the -10% in 2006 so growth was a LOT easier. When 2004 rolled around and word of mouth REALLY kicked in and as they say the rest is history.
I look back now at how ill prepared I was, I didn't know anything about SEO, Advertising, community and I didn't even know what Venture Capital was. Just goes to show you anyone can do anything.
after about 2006 we stopped being innovative in terms of what a consumer saw, the problem was that every time we did something that made a difference it would be copied by competitors in a matter of weeks. This would have a major impact on our growth because their network effects would increase more than ours, ie we weren’t the biggest yet. Its at that point I started focusing on innovating in the backend and sticking to making huge improvements in retention and virality. The improvements on retention and virality also had a much bigger payoff.
http://www.inc.com/magazine/20090101/and-the-money-comes-rolling-in.html
Answering friends’ questions makes Quora seem a lot like Google’s Aardvark.
I think we’re a lot different than something like that. Our goal is to build this up as a knowledge base that anyone can look at. We’re not just interested in people answering their friends’ one-off questions.
We’re more interested in someone writing a really great answer that’s going to be read by thousands or tens of thousands of people over the next few years as it stays on Quora and as it gets distributed on the Internet.
So the value of writing a lengthy, well-thought out answer is....what? How will you this keep from turning into another Yahoo! Answers?
I think the motivation is a lot different. On Quora, you’re not answering questions because you want to get points or because you have nothing else to do.
You’re answering questions because you want to build your reputation or you genuinely, intrinsically enjoy helping people. It’s the same reason someone might want to make a website with information. We just made that a lot easier.
13:00 - Ask for what you want. People aren't aggressive
13:50 - Crises get less scary over time.
[adapted from wikipedia]
After receiving his MBA, Wyly moved to Dallas to work as a salesman at IBM's Service Bureau Corporation. Three and a half years later he left IBM to become the area sales manager for Honeywell, establishing their computer business in Dallas and Oklahoma. Wyly's wealth comes from businesses that he founded and developed, or purchased and expanded;
1963: founded University Computing Company (UCC), which provided computer services to engineers, scientists, and researchers with Sun Oil Company, Texas Instruments, and others. He began the company with $1,000 and three customers;. The company went public in 1965. By 1968, sales were $60 million; in 1971, they were $125 million.
1967: With his brother Charles, bought the restaurant chain Bonanza Steakhouse. He had initially started investing in it with money from the sale of stock in UCC. The company grew to approximately 600 restaurants by 1989, when the two brothers sold it.
1968: Acquired Gulf Insurance; at the time, the company had free equity of $52 million and $63 million unrealized capital gains.
Co-founded Earth Resources Company, an oil refining and silver and gold mining company, served as its Executive Committee Chairman from 1968 to 1980.
1970: Purchased Computer Technology, which functioned as the in-house data processing unit for LTV, for $40 million in cash and notes.
1972: Sold a computer terminal business to Harris-Intertype, writing off $32 million in investments.
1973: Divided UCC into four companies, including Datran, which began construction of a nationwide system of microwave towers to transmit data among 27 American cities in direct competition with AT&T.
1981: Co-founded Sterling Software. The company was sold to Computer Associates in 2000 for $4 billion.
1982: Bought controlling interest in an arts-and-crafts chain Michaels; the company's revenues grew from $10 million at the time of purchase to $1.24 billion by 1996. In July 2006, Bain Capital and the Blackstone Group purchased the company for $6 billion.
1986: Purchased Frost Bros., a specialty retail chain, from Manhattan Industries. After failing to reorganize while operating under bankruptcy protection, the company was liquidated in mid-1989.
In 1990, co-founded hedge fund Maverick Capital, which by 2003 had about $8 billion in assets. Beginning in 1993, his son Evan, a Maverick co-founder, and money manager Lee S. Ainslie III managed the fund.
As of 2006, Wyly was the largest stockholder of clean-energy producer Green Mountain Energy.
In 2006 Wyly also was the largest investor in the online social networking company Zaadz.com at an estimated 1.5m.
In March 2007, Forbes magazine estimated Wyly's net worth to be $1.1 billion. In September 2006, Forbes ranked him as the 354th wealthiest American.
Finished this book April 11th, 2010. Sam Wyly is a very smart guy.
About Wyly:
- He's basically another techie billionaire like Bill Gates, Ross Perot, and Michael Bloomberg. He started as a salesman for IBM, became a millionaire by starting a company that sold computing power to businesses in the 70s, then started experimenting with different business ventures (e.g. a restaurant chain, an arts and crafts chain), and became a billionaire in his 50s by knowing how to game the stock market. this is all based off my year-old memory of the book, though; i could be wrong about some of this.
- note that just like Sam Walton, he spent much of his business life working with his brother.
2015.10.06 - Stanford ECorner - Talk with Stewart Butterfield
The founders first spread the word about Snapchat to college friends at Stanford University, but the app’s popularity didn’t really start to take-off until it made its way into the high school ranks to become a popular means of communication for teenagers.
It gave young teens an opportunity to exchange messages quickly and left no evidence for the rest of the world, including the eyes of parental figures. The story goes that Spiegel’s mother told their cousin about the app who in turn showed his friends at a local high school in Southern California - from there the app began spreading like wildfire. [NW: Of course, that could very well not be the real way it got popular.]
← This is a very interesting look at how they grew the use of the app.URS HOLZLE: All right, so I'm curious how you actually got started with both the idea, and sort of the infrastructure. What led you there?
BOBBY MURPHY: Yeah. So Evan and I got started on Snapchat summer of 2011. Basically, kind of understood that visual content was the most engaging, interesting form of content that there was. And wanted to create a way to enable that to be a means of communication, rather than a piece of content around which communication actually happened. So that was sort of the initial concept behind Snapchat. We launched on Google App Engine because I'd used App Engine a couple times for some small projects, found it was super easy to get up and running. And at the time, obviously, our biggest priority was to get a product in the hands of users in the world-- in the real world-- as quickly as possible. And so I turned again to App Engine, something I was very familiar with. And a platform that very easily abstracts away a lot of the complexities of building, deploying, and a web backend into the real world. And I think at the time, App Engine was actually still in preview, so we took a chance on a new platform. But I was fairly confident that given Google's kind of reputation as a very strong infrastructure company, that anything we built on App Engine would eventually scale if we needed it to.
Chipotle: The Definitive Oral History
http://www.bloomberg.com/graphics/2015- ... l-history/
- this is a fantastic article.
- main takeaways (just from memory):
-- it seems like pairing up with McDonald's was crucial to the magnitude of their success.
-- his product was an immediate hit with his very first restaurant. This is something I've seen many times in the autobiographies of successful entrepreneurs. So if your product isn't a huge success, think hard about tweaking it.
-- They did a lot of things differently from what the conventional fast-food wisdom would suggest (eg no drive-through, no breakfast, a simple menu, an assembly-line-style setup). The executives at McDonald's and other chains were assuming that things couldn't be any other way.
-- He took a product that was excellent but not widespread (tacquerias) and brought it to the rest of the country. This reminds me of Sam Walton gathering all of the good ideas used by retailers across the country, gathering them into one store, and then taking that vastly-superior product and mass-producing it.
-- Their original location didn't have the assembly-line format; they got the assembly-line idea from their second store, which had previously been a "House of Pies" restaurant chain. They think House of Pies had just used the long display to show off their selection of pies, but Chipotle saw how they could repurpose it to serve meals more quickly.
2011.08.24 - Chipotle Story - How it All Started
https://www.youtube.com/watch?v=wmH73Diqf5Q
2014.07.22 - Forbes - Why Chipotle's Founder Isn't A Burrito Billionaire (And May Never Be)
http://www.forbes.com/sites/briansolomo ... -never-be/
As of Chipotle’s 2014 proxy statement in March, Ells held 339,474 shares of Chipotle stock (including some options). That’s just over 1% of outstanding shares, and at current prices his stake is worth over $200 million.
While most people would love to have Ells’ shares, and he’s probably quite comfortable with the fortune he has amassed, that stake is much lower than that of many other comparable CEO-founders. For example, Hastings has been heavily diluted over time, but still has just under 4% of Netflix’s outstanding shares.
The primary reason Ells’ stake is so low is that he has been selling stock since Chipotle’s 2006 IPO. Even as Ells has had options vest over time, his total share count has dropped.
While Ells banked cash profits on his stock sales, there’s no investment he could have made with that money that would have been more lucrative than keeping it in Chipotle stock. For example, if Ells had never sold a single share since the IPO, just that original pot would now be worth about $700 million (up from a scant $22 million in 2006).
Yet there’s another, more fundamental reason for Ells falling short of billionaire status: selling out to McDonald’s. Back in 1998, Chipotle was only a 14-restaurant chain, mostly in the Denver, CO area. In order for Ells to supercharge expansion of his promising fast casual concept, he needed money. That cash infusion came in the form of an investment from fast food king McDonald’s. While the Golden Arches initially took only a minority stake, by the time Chipotle went public in 2006, McDonald’s owned more than 90% of the company.
his dad had worked his way up to the low-multi-million-dollar level w/ a billboard business. ted was made to work summers for the company from around age 12. his dad died when ted was only 24, and ted took over and started expanding aggressively.
At first, Gould tells me, the app had a ruling class of “the matching 1 percent,” people who got tons of matches and who made everyone else look bad in comparison. Tinder decided to change the trend by showing these profiles less frequently, especially to users who weren’t in the 1 percent. Now those who get a lot of right swipes (yes) get shown to progressively fewer people, and those who get a lot of left swipes (no) get shown to progressively more people. “I call it progressive taxation — redistributing matches. They’re not truly ours to redistribute, but we try,” Gould says. “It feels right to do that.”The company calls this “smart matching”: bringing justice to the dating world by balancing the playing field and making sure that members less likely to get matches still get some. “Part of the human condition is the struggle. If you’re seeing nothing but Victoria’s Secret models, one won’t necessarily stick out,” Badeen says. “When we introduce people who aren’t suited for you, it accentuates those who are. The matches don’t happen by chance. Tinder is arranging who you’ll see next.
They also change the system for bad actors, limiting the number of swipes per day. “We used to have a bunch of guys who would swipe right on everyone and then not respond, so we added a limit to detect people who weren’t playing the game,” Gould says. “I was surprised, but people actually are smart. They play what they’re given. For the first few days, the guys kept hitting their limit. Then, after that, they began to adapt. Once they did, conversations got longer.
This guy has done a fantastic job of making use of the knowledge of others.
Another chat:
http://www.youtube.com/watch?v=WZpU8oIT8tM
- new bit of info: they run a separate website, 6pm.com, to handle discounted stuff at the end of the season (~12mins in)
Imagine if you were the most efficient manufacturer of seven-fingered gloves. You offer the best selection, the best service, and the best prices for seven-fingered gloves–but if there isn’t a big enough market for what you sell, you won’t get very far.
Or, if you decide to start a business that competes directly against really experienced competitors such as Wal-Mart by playing the same game they play (for example, trying to sell the same goods at lower prices), then chances are that you will go out of business."
Wikipedia - Uber
http://en.wikipedia.org/wiki/Uber_(company)
Uber was founded as "UberCab" by Garrett Camp and Travis Kalanick in 2009—the service was officially launched in San Francisco in June 2010, with Ryan Graves appointed as CEO in August of that year. Graves later stepped down from his role as CEO—becoming VP of Operations and a board member—and was replaced by Kalanick.[7] Uber's mobile app—for both iPhones and Android phones—was launched in San Francisco in 2010.[8]
The company received venture funding in late 2010 from a group of super angel investors in Silicon Valley, California, U.S., which included Chris Sacca.[9] In early 2011, Uber raised more than US$11.5 million in Series A funding led by Benchmark Capital.[10] In late 2011, Uber further raised $32 million in funding from several investors that included Goldman Sachs, Menlo Ventures, and Bezos Expeditions,[11] bringing their total funding amount to $49.5 million.
Lesson: It may be good to have powerful people invested in your company. They can help you get through big fights, and other people may decide it's better to jump on the bandwagon instead of backing an alternative.
Wikipedia - Garrett Camp
http://en.wikipedia.org/wiki/Garrett_Camp
StumbleUpon
StumbleUpon is the first web-discovery platform and personalized recommendation engine, co-founded by Garrett in 2002. In 2006 StumbleUpon relocated to San Francisco upon receiving its first round of funding from Silicon Valley angels. In 2007 StumbleUpon was acquired by eBay for $75M and later spun-out in 2009, becoming an independent company again. Garrett grew the company to over one hundred employees and over 25 million registered users as its founding CEO before stepping down in mid 2012 to work on other ventures. StumbleUpon has been listed in TIME's 50 Best Websites and most recently in TIME’s 50 Must-Have iPad Apps.
2010.12.22 - Uber Blog - Uber's Founding
http://blog.uber.com/2010/12/22/ubers-founding/
2014.08.19 - Washington Post - Uber hired David Plouffe when it realized ‘techies’ can’t do politics
http://www.washingtonpost.com/blogs/won ... -politics/
- another example of bringing on a powerful ally
2015.09.08 - Fast Company - What Makes Uber Run
http://www.fastcompany.com/3050250/what-makes-uber-run
- This is a really interesting article.
Scour
In 1998, Kalanick dropped out of UCLA and with some of his classmates to found Scour Inc., a multimedia search engine, and Scour Exchange, a peer-to-peer file-exchange service. In 2000, the Motion Picture Association of America, the Recording Industry Association of America (RIAA) and the National Music Publishers Association (NMPA) brought a lawsuit against Scour, alleging copyright infringement. In September of that year Scour filed for bankruptcy to protect itself from the lawsuit.
Red Swoosh
In 2001, with Scour's engineering team, Kalanick started a new company called Red Swoosh, another peer-to-peer file-sharing company. Red Swoosh software took advantage of increased bandwidth efficiency on the Internet to allow users to transfer and trade large media files, including music files and videos. In 2007, Akamai Technologies acquired the company for $19 million.
Uber
In 2009, along with Garrett Camp, Kalanick founded Uber, a mobile application that connects passengers with drivers of vehicles for hire and ridesharing services.
I didn’t really know what a Summa Cum Laude founder was early in my career. Since then I’ve learned.
The first time was when I met Travis Kalanick, CEO of Uber … back in ‘04. He will not remember me. This was pre-Uber and during Red Swoosh I think. He was not yet a “success”. His first start-up was shut down. The second was sold for a very small amount.
And he explained the entire future of video on the internet. In 2004. It was mostly right, and even what wasn’t, was profoundly insightful.
I remember thinking I’d never had a conversation like that, and I’d worked with some pretty good CEOs and founders before.
I was initially a little skeptical about how much information he'd give away in this book, but after having read it i can say this is a must-read for anyone who wants to succeed in business (or ANYTHING, really). there are a ton of very useful ideas and anecdotes; it really is a "this is step-by-step how i did it" book. he comes off as one of the most energetic and driven individuals i've ever heard of.
http://en.wikipedia.org/wiki/Whole_Foods_Market
2012.12.06 - WF Blog - Conscious Capitalism: A New Book by our Co-Founder and Co-CEO, John Mackey
http://www.wholefoodsmarket.com/blog/co ... ohn-mackey
2013 - Amazon - Conscious Capitalism: Liberating the Heroic Spirit of Business
http://www.amazon.com/Conscious-Capital ... K2P83YYFWO
2013.02.16 - Forbes - Five Take-Aways From Whole Foods CEO John Mackey's Surprising New Book
http://www.forbes.com/sites/davidshaywi ... -new-book/
https://en.wikipedia.org/wiki/History_of_Wikipedia
The History of Wikipedia formally began with the launch of Wikipedia on 15 January 2001 by Jimmy Wales and Larry Sanger; however, its technological and conceptual underpinnings predate this. The earliest known proposal for an online encyclopedia was made by Rick Gates in 1993,[2] but the concept of a free-as-in-freedom online encyclopedia (as distinct from mere open source or freemium)[3] was proposed by Richard Stallman in December 2000.[4]
Crucially, Stallman's concept specifically included the idea that no central organization should control editing. This "massively multiplayer" characteristic was in stark contrast to contemporary digital encyclopedias such as Microsoft Encarta, Encyclopædia Britannica, and even Bomis's Nupedia, which was Wikipedia's direct predecessor. In 2001, the license for Nupedia was changed to GFDL, and Wales and Sanger launched Wikipedia using the concept and technology of a wiki pioneered in 1995 by Ward Cunningham.[5] Initially, Wikipedia was intended to complement Nupedia, an online encyclopedia project edited solely by experts, by providing additional draft articles and ideas for it. In practice, Wikipedia quickly overtook Nupedia, becoming a global project in multiple languages and inspiring a wide range of other online reference projects.
According to Alexa Internet, Wikipedia is the world's seventh-most-popular website in terms of overall visitor traffic.[6] Wikipedia's total worldwide monthly readership is approximately 495 million;[7] according to comScore, Wikipedia receives over 117 million monthly unique visitors from the United States alone.[8]
2013.06.30 - NYT - Jimmy Wales Is Not an Internet Billionaire
Parker Conrad, Zenefits Co-founder and CEO:
We compete with BenefitFocus in the sense that you probably wouldn't use Zenefits *and* BenefitFocus at the same time, although we make money in very different ways (BenefitFocus charges you directly, we make money from benefit providers):
There a few major structural differences (ie putting aside that I think our product is cleaner / nicer / better in many ways):
1) BenefitFocus is the Flywheel to Zenefit's Uber -- BenefitFocus is working to sell technology through the incumbents in the market, while Zenefits is "full-stack" and takes on the incumbents (mostly insurance brokers) head-on. From a practical perspective, this means that Zenefits is free and BenefitFocus costs money.
2) BenefitFocus is mostly an online enrollment tool. Zenefits solves a bigger and more foundational problem than that -- companies have 20 different systems related to HR (payroll, insurance, 401k, commuter benefits, time & attendance, PTO tracking, equity administration, etc, etc). Zenefits takes all these separate systems, connects them up & integrates them, and give employees and employers a single place to do everything -- which saves someone at the company a lot of time on admin work. Doing health insurance online is a necessary first step for a system like Zenefits, but it's just a component of our offering -- while it's the entirety / main focus of BenefitFocus.
1:30 - His last company flatlined, they were always 2-3 months from missing payroll. One of the things you do in that scenario is that you don't hire anyone in HR because you can't afford to.
3:20 One of the reasons that we've grown is that we're in this fortunate position where we're selling a free product that we make a bunch of money on, and that solves a real pain point for a lot of companies out there. And so roughly what that looks like, as Keith said the company's about 2 years old, we stareted in 2014 with about $1M in run-rate revenue
8:50 - #2 - Another thing that really helped them was to set incredibly aggressive goals.
9:35 - Their goal was to go from 2 sales reps to 20 sales reps, and go from $1M to $10M
10:10 - His VC advisor was like, "Why aren't you at 100 sales reps?"
10:50 - So they started talking amongst themselves, asking "Why couldn't we get to $20M? What problems would we face, and could they be overcome?"
12:14 - Taking whatever your goal is and doubling it or tripling it, and asking "if this is not going to work, what is the reason?"
12:40 - #3 - Tactics - "Top of the funnel constraints are the only acceptable constraints. Everything below that is execution."
13:22 - So everything he's going to talk about is for top-of-the-funnel.
13:30 - Zenefits grew via direct marketing
13:50 - The first thing is universe construction: you need to know all of the companies that you would ever sell to. And this is the most challenging part of this exercise.
They buy some lists, but the lists you can buy are very low quality. They have several engineers who work on the marketing team who help to build and maintain this list.
They scraped a lot of data out of LinkedIn. They had 27 different fake recruiter accounts.
14:23 - They sell to companies with less than 500-1000 employees, and there are about 4.5 million of them across the US.
16:10 - Once you have that list, and you know
It's then about what is the right waterfall of outreach. Their first bit of outreach is email, their second level is a demo. And you gradually move down from less-costly to more-costly method of reaching out.
17:50 - It's really important to have the right person in marketing. They need to be a real hustler. They need to be really creative about how you reach out to people.
19:31 - Everything before getting on a phone with a sales rep should be automated as much as possible.
21:00 - Growth does cause strain, but it also attracts a lot of help
21:30 - Investors are evaluating companies based on a ratio of how much they accomplish over time. At his first company he thought it was how much you accomplish over the amount of money that you spend. !!!!!!!!
21:50 - Switches to questions.
22:20 - Q: How do you maintain that sense of urgency among new hires?
23:20 - A lot of the behavioral norms are hard to change at a company once they get established. One of their mottos is "Ready Fire Aim". People tend to ape the behavior of others.
23:50 - Q: You said investors care more about the ratio of stuff-done over time instead of stuff-done over money. Is that a universal truth or a sign of the times?
24:00 - Businesses generally have three systems of record: one for customers (Salesforce), one for financial information (Quickbooks / Oracle / Netsuite), and one for employee information. And there's a big hole in the third one for companies less than 1,000 employees.
25:20 - Growth is not just about getting there quickly. It's also about
- A lot of what they do is about integration (a lot like Slack!)
26:00 - Their biggest challenge is to integrate all these different systems, and it's tricky because you need to get these counterparties to work with you. And so it's their growth that gives them the leverage / right to reorient the ecosystem.
26:50 - Q: What's your opinion on tech like eloqua and marketo?
