"All work and no play make Jack a dull boy" is the old adage. I'm sure all cultures on this planet have learned that. Without R&R startup leaders become no fun to work with. That ends the adventure. People quietly leave on move on to a place where R&R is practiced.

So I leave you with this tip: Plan holes in your work schedule over the next 60 days. Surprise the ones you love: "I'm going to spend 100% of the following days with only you." It will do remarkable things to you. And to them. It will boost your unfair advantage.

I'm back home on the 19th. Will post while in Berlin.

Meanwhile, I wish you The Best on your Adventure!

The old guys could not grasp the wonder and opportunity of the wave of social networking economics.

The young guys and gals got it -- and were presenting some amazing ideas.

So after the break and my brief tutorial, we were more appreciative of what we were seeing.

For me this translates to a single, large lesson: Founders of startups need to be naive, not know that there is an existing, best practices, way of doing things out there. Instead they need to know that they have a cool idea that solves a big problem, an idea that the existing way of doing things out there cannot solve.

I think it is part of a constructive naivete. It is that something that gets people to "just do it". To start with an idea and advance it to the next level. So it emerges as a way cool business plan that could lead to building an amazing, enduring corporation doing good for a lot of needing people out there.

Sure, it is important to be realistic, and to assess your risks, and to know a pathway from here to success. But the old guys bring with them the baggage of the past. The things and methods and solutions that made them famous are no longer going to be used to create great new enterprises.

So when selecting your next CEO, look for a person who can think in fresh terms. Who "gets it" when you talk with him or her. You need a person with that naivete, a person that doesn't know that that new eay of thinking is crazy and not possible.

That also has strong implications for who you decide to present to when seeking investors.

BOTTOM LINE: I learn from my amazing students. Today I learned to look for naivete in the founders. And to respect naivete in spite of my many years. The young kids are going to be first to get it right. That's part of their unfair competitive advantage.

I wish you The Best on your Adventure!

What impressed me was how quietly confident they were without being arrogant.

Several were for large ideas that would break new ground and become worth half a billion dollars in value within five years. Others were confident of hitting at least $50 million in sales by that time, from only addressing the US market.

Half of the teams were using high tech from Cornell research laboratories and inventions by professors and their PhD students. Breakthrough technologies that are disruptive were described in compelling detail by students confident they could deliver.

Each team had evaluated the risks and competition. They were realistic about the challenges ahead of them.

And all of them were clearly bold about what they intended to do.

I find that a mark of the winning entrepreneur.

They are confident without being arrogant.

BOTTOM LINE: Do a venture that is bold. Avoid doing a safe startup (they die). Your boldness will come from confidence in your core team that constructs the bplan that you believe in. Knowing the risks will keep you humble. When you do that, you'll have achieved one of the most important elements used by serial entrepreneurs to do one successful startup after the other.

I wish you The Best on your Adventure!

I advise the CEOs I coach to be prepared for life's dark days, both at work and in their personal lives.

This was reinforced to me in a shocker when I contacted a serial entrepreneur I respect in southern california and got this automated email reply:

"Due to the sudden and tragic loss of my beautiful daughter Grayson, I will be taking time off from work and will not be responding to emails.  This will be for at least a few weeks.  In honor of my daughter please have compassion for all of those around you and make sure to take a few extra minutes each day to hug your loved ones.  I will not be checking this email during this time

For more information you can visit her memorial page on facebook
http://www.facebook.com/group.php?gid=160709302244"

=======

Life happens to startup people, regardless of ability and stature.

The loss of a child is ranked by psychiatrists as second in emotional pain only to loss of a spouse. I have seven friends who have lost children and they tell me it is a hole that remains forever in their hearts.

So what is a founder CEO to learn from such dark news? I think it is simple: be prepared for the darkest of times when you do your startup; Doing a startup is not a way to escape from life (lost a job, lost a girl/boy friend, got divorced, etc.).

BOTTOM LINE: Even the best of the best of serial entrepreneurs must face what life confronts them with. If you are not able to do that, then pleased do not add the stress of doing a startup. Because when the inevitable dark days come, you'll be crushed, and so will your startup. People able to get through such terrible events in life are the rare people investors and serial startup employees are looking for. It's part of their unfair advantage. It is what people want to hear from you when they interview you. Are you prepared to tell them about such times in your life?

I wish you The Best on your Adventure!

NEXT WEEK I'll be doing finals at Cornell University. I'm excited about that. I'll share with you some of the ideas from the students.

There is good advice for startup leaders in a Wall Street Journal article about Thanksgiving.

Here is the final part of what I found helpful:

=======

Contrary to the misconstrued Victorian concept of 'Puritanism,' an idea C.S. Lewis calls "the haunting fear that someone, somewhere, may be happy," the original Puritans, serious as they were, embraced not only hard work, but the pursuit of joy. Lewis, opposed to this inaccurate view of the Puritans, would agree with writer, Richard Bernard, who said Christians "may be merry at their work, and merry at their meat." Thomas Gataker wrote that Satan was the one who would try to convince people that "in the kingdom of God there is nothing but sighing and groaning and fasting and prayer," but the truth was that "in his house there is . . . feasting and rejoicing." Lewis, further debunking the myth that Puritans never had fun, said "bishops, not beer, were their special aversion." The Puritans pursued joy, the very antithesis of depression, even in the midst of hardship, believing they were firmly in God's hand, not forgotten and never forsaken.

More than just an annual turkey fest, the Puritans gave America a pedagogy of work and an attitude toward life that upsets the modern notion that a person's occupation equals his value. A man's worth, the Puritans might advise the unemployed [Steve Lee cited earlier], lay in his service to God and to his fellow man, not in titles or financial portfolios. Rather than seeing life as a series of random events, the Puritan's belief in Providence imputed a profound sense of a loving God's purpose for him, a purpose that left very little room for despair."

=======

So what can a startup CEO get from this? Ponder these:

• Work works against depression. I find serial entrepreneurs do manual labor tasks as part of their lifestyles. Serious hobbies include gardening, painting their houses (Gordon Moore of Intel was famous for this one) and working on a car (restoration of an oldie is one example). 
• Celebrations and fun are part of the lifestyle of the winners. When I talk to a startup leader I look for how he celebrates and has fun. I've found lack of that to indicate a person in mental trouble. Serial entrepreneurs know how to have a good time. They radiate joy and delight.
• God makes a good adviser to startup leaders. Many agree. Worth looking into. I did and now He is part of my life.

So I wish you a wonderful Thanksgiving, wherever you are and all The Best to you on your Adventure!

Will talk to you next week (I'll be doing final exams for my class at Cornell University)

There is good advice for startup leaders in a Wall Street Journal article about Thanksgiving.

Here is the second part of what I found helpful:

=======

Much like modern work is separated into white and blue collar, 17th-century tradition held that sacred occupations (like priest or monk) trumped secular ones (like farming or blacksmithing). The Puritans, however, rejected such a distinction. Holding to "Whatever your hand finds to do, do it with your might" (Ecclesiastes 9:10), the Puritans sanctified the common, believing that all work, however lowly, if done for the glory of God, was good. Christ Himself "was not ashamed to labor; yea, and to use so simple an occupation," said Puritan Hugh Latimer. The farmer's plow became his altar, his tilling an act of service to God every bit as holy and valuable as the priest's, reminding the unemployed that temporarily taking a step down in pay or status does not equate to failure."

=======

So what is applicable to startup CEO? Here are some for you to ponder:

• When looking for your special talent, take it very seriously. With God giving out the talent, this is serious business. So be careful to recognize what the specialness is about. You may be a techie who thinks he would make a great CEO founder, but that may turn into a disaster if you lack the talent. Ditto for other career jumper-wishers. But the search can also give you courage to finally jump onto the track you really were created to take, at last!
• Once you are on the right talent track you can be confident. This comes from God supporting your choice. Your motivation for doing the work will be clear.
• Humility follows from seeing all kinds of work as good. People in startups do what work is necessary, regardless of job title. That kind of humility gets a lot done very quickly. It is central to the agility of startups that gives them a competitive superiority to giant corporations.

There is good advice for startup leaders in a Wall Street Journal article about Thanksgiving.

Here is the first part of what I found helpful:

=======

"With Thanksgiving just around the corner, encouragement may come from an unexpected source: the Puritans.

Often misunderstood and perennially maligned, the Puritans—tested first by religious persecution and later by the elements in their primitive surroundings—grew not into the fuddy-duddy party-poopers of modern history books, but into a tenacious and stalwart people. They developed by sheer necessity one of the most highly defined and well-honed work ethics in history. If anyone knew a trick or two about surviving hard times, they did.

Defined primarily by their religious separation from the Church of England, the Puritans (not surprisingly) had a view of work in which God looms large. Living according to the Westminster Shorter Catechism, which states that "Man's chief end is to glorify God and enjoy Him forever," the Puritans believed that all of life, including their work, was God's, and, as such, infused with purpose and meaning. They saw hardship not as a sign of failure, but as a path to growth and maturity, a mind-set that kept them from the kind of work-related despair seen in today's news."

=====

So what does that do for startup leaders?

Think about these:

• Don't accept all of what you hear about people when they are maligned by the media. I've found great people among those the reporters knocked and the public mocked. Find out on your own. Make your own decisions about people.
• Religious people work hard. It is in their beliefs that their determination, loyalty and commitment come from. Those characteristics are precious to startups.
• Faith in God keeps people from despair. All startups will get into serious trouble. Their leaders need workers able to keep from falling into the dark pits when the tough times arrive. Faith is stronger than willpower. Such people make great startup employees.

BOTTOM LINE: There is a lot more to Thanksgiving than giving thanks. People of faith know that. They make great employees as well as leaders of new enterprises. They have a deep source of purpose and reason to work hard. It is part of their unfair advantage. Wise founders look for them.

More tomorrow.

I estimate that around 40% of the ideas in my entrepreneurship classes at Cornell University become real startups within three years. Young people are that much "in touch" with the real world. Most are done by others than the students, which tells you a lot about priorities in life and the intensity of global competition.

Here's the story (New York Times):

November 18, 2009, 4:00 PM

Tune In, Start Up, Drop Out

Courtesy of MyFit.com.Max Hodak, left, and Jason Mueller.

The chance to go pro frequently entices college students to drop out of school. It worked for the basketball legend Magic Johnson and, more recently, the golf upstart Rickie Fowler. Now, it’s happening for entrepreneurs on the collegiate business plan competition circuit.

The 20-year-old chief executive Max Hodak and the 23-year-old finance chief Jason Mueller dropped out to start their business as a “temporary” move, following a competition season in which they won $4,500 and some honors but never took a grand prize. That dropout status is likely permanent now that their company, MyFit.com, has received venture capital financing and is operational, says Mr. Hodak, who would have been a junior biomedical engineering major at Duke this year. Mr. Mueller would have been a senior business major at North Carolina State.

Their company, which competed under the name AcceptEdge at North Carolina State’s eGames and Duke University’s Startup competitions last year, today announced a $1 million series-A investment round from New Enterprise Associates, one of the largest venture funds in Silicon Valley. MyFit.com is a Web site, a Facebook application and a service that helps high school students and their parents predict and improve their chances of getting into a college where they will enjoy life and succeed.

The service differs from traditional methods by analyzing more than grade-point average and test scores, considering “social maps” online and real time data about a student’s lifestyle, goals and interests. The company also aims to give admissions boards a more efficient way to find, recruit, filter and accept applicants who are best matched for their colleges.

Thanks to its runner-up showing at eGames, Mr. Mueller said, MyFit.com was able to raise $60,000 from two angel investors — one a North Carolina State professor of entrepreneurship, the other a local business owner. Those investments in turn enabled the company to improve its product and pitch it on Sand Hill Road in Silicon Valley. In the spring of 2009, Mr. Hodak and Mr. Mueller presented to at least a dozen investors who said “not yet” to financing.

Then Patrick Chung, a partner focused on consumer, mobile and Internet investments at New Enterprise Associates, invited MyFit.com to participate in the fund’s incubator program. The founders worked there this summer without pay but within advice-seeking distance of: Krishna Kolluri, co-founder of Healtheon/WebMD; Mike Ramsay, co-founder of TiVo; and Arno Penzias, a winner of the Nobel Prize in physics for work on the Big Bang theory.

As summer wound down, Mr. Hodak and Mr. Mueller didn’t know if MyFit.com would be among the few to get financing, said Mr. Hodak, but they felt “there was no way to half-do this” and decided to forge ahead with their start-up rather than returning to school.

“I don’t encourage it,” said Mr. Chung, who faces criticism each time he deals with young executives on the brink of dropping out, “but parents tend not to like me.” He promises them that he will persuade their children to finish school should their ventures fail.

And he continues to spend a lot of time hanging out — unapologetically — at business plan competitions. The younger entrepreneurs he meets there, Mr. Chung believes, have a significant advantage in some industries because they are “immersed in a culture previous generations have not been, with technical skills to go along with their insights.”

Now an adviser to MyFit.com (as well as to well-known start-ups Loopt andGoodGuide), Mr. Chung said the company “holds enormous promise, when you look at the fact that every year, five million students go to college and grad schools in the United States alone and spend $7 billion on admissions-related services. It’s a price inelastic market. Parents will forgo vacations and eating out but not getting their kids into a great college.”

Both the investor and the young executives recognize the irony in their dropping out of college to start a company that will help other students get in. Mr. Hodak, citing entrepreneurial dropouts like Microsoft’s Bill Gates and Facebook’s Mark Zuckerberg, joked that getting a degree “means something went wrong.” But Mr. Mueller said he plans to complete his degree if his MyFit.com schedule ever affords him time.

I've written before about how serial entrepreneurs respect their health programs. They work on their health, do not ignore it. That's how they successively became winners.

Today I'll share with you a testimony about the importance of one aspect of health to aggressive CEOs like you. It came in the form of an email from a very creative entrepreneur in India who I met a few years ago in Mumbai and have grown to respect, Mohit Dubey founder of carwale.com.

Here is our exchange of our emails. The lesson for you will be clear.

=========================================================================================

Mohit,

You are “A Winner”. I am so impressed that you remembered and have acted on a bit of advice. Healthy gray cells (brain) result in very creative work and wise decisions. REM = fresh gray cells every morning.

After reading your email I then went to look at carwale.com to see what had progressed since we last chatted. It is clear that your creativity has lifted the quality of your business up to a new level. I had just used the U.S. car sites to purchase a new VW for my pregnant daughter (our first grandchild). Yours is far superior. I especially liked the Forums and Blog. I could get people’s impressions of cars as well as see the latest fresh news without tedious searching and blogging. What I’m waiting for is the arrival in the U.S. of the Tata Nano. It will be a game changer here.

So today I’ll use Carwale.com in my blog, with pride and joy at seeing you doing so well. Hang in there during the coming difficult times, pick only excellent people to work with you, and then with a few breaks you’ll emerge a big winner for a lot of people, as well as for you and your family. I’ll pop the cork for you when that happens!

Wishing you The Best on your Adventure,

JOHN

---------------------------------------------------------------------------------------------------------------------------

Hi John,
Trust this finds you well!
Thought of sharing this with you (and I shared it with my all colleagues), as the stress and sleep correlation got heated up in India again after the SAP India CEO died of heart attacka t a young age of 42.

I remember reading in your blog- how serial entrepreneurs know the importance of sleeping 8 hrs every day!

Thanks.
--
Mohit
CEO, CarWale | Automotive Exchange Private Limited
www.carwale.com
M: +91 9967 11 3000
O: +91 22 6739 8888
Fax: +91 22 66459665, 6739 8877

---------- Forwarded message ----------

Great Mangers and entrepreneurs take 6 to 8 hrs of sleep everyday!
Building a career or company is a marathon and not sprint- so take good care of yourself.

Cheers!

----
Mohit Dubey
CEO, CarWale.com

What killed Ranjan Das and Lessons for Corporate India:-

A month ago, many of us heard about the sad demise of Ranjan Das from Bandra, Mumbai. Ranjan, just 42 years of age, was the CEO of SAP-Indian Subcontinent, the youngest CEO of an MNC in India. He was very active in sports, was a fitness freak and a marathon runner. It was common to see him run on Bandra's Carter Road. Just after Diwali, on 21st Oct, he returned home from his gym after a workout, collapsed with a massive heart attack and died. He is survived by his wife and two very young kids.

It was certainly a wake-up call for corporate India. However, it was even more disastrous for runners amongst us. Since Ranjan was anavid marathoner (in Feb 09, he ran Chennai Marathon at the same time some of us were running Pondicherry Marathon 180 km away), the question came as to why an exceptionally active, athletic person succumb to heart attack at 42 years of age.

Was it the stress?

A couple of you called me asking about the reasons. While Ranjan had mentioned that he faced a lot of stress, that is a common element in most of our lives. We used to think that by being fit, one can conquer the bad effects of stress. So I doubted if the cause was stress.

The Real Reason

However, everyone missed out a small line in the reports that Ranjan used to make do with 4-5 hours of sleep. This is an earlier interview of Ranjan on NDTV in the program 'Boss' Day Out':

http://connect.in.com/ranjan-das/play-video-boss-day-out-ranjan-das-of-sap-india-229111-807ecfcf1ad966036c289b3ba6c376f2530d7484.html

Here he himself admits that he would love to get more sleep (and that he was not proud of his ability to manage without sleep, contrary to what others extolled).

The Evidence

Last week, I was working with a well-known cardiologist on the subject of ‘Heart Disease caused by Lack of Sleep’. While I cannot share the video nor the slides because of confidentiality reasons, I have distilled the key points below in the hope it will save some of our lives.

Some Excerpts:

·        Short sleep duration (<5 or 5-6 hours) increased risk for high BP by 350% to 500% compared to those who slept longer than 6 hours per night. Paper published in 2009.

As you know, high BP kills.

·        Young people (25-49 years of age) are twice as likely to get high BP if they sleep less. Paper published in 2006.

·        Individuals who slept less than 5 hours a night had a 3-fold increased risk of heart attacks. Paper published in 1999.

·        Complete and partial lack of sleep increased the blood concentrations of High sensitivity C-Reactive Protein (hs-cRP), the strongest predictor of heart attacks. Even after getting adequate sleep later, the levels stayed high!!

·        Just one night of sleep loss increases very toxic substances in body such as Interleukin-6 (IL-6), Tumour Necrosis Factor-Alpha (TNF-alpha) and C-reactive protein (cRP). They increase risks of many medical conditions, including cancer, arthritis andheart disease. Paper published in 2004.

·        Sleeping for <=5 hours per night leads to 39% increase in heart disease. Sleeping for <=6 hours per night leads to 18% increase in heart disease. Paper published in 2006.

Ideal Sleep

For lack of space, I cannot explain here the ideal sleep architecture. But in brief, sleep is composed of two stages: REM (Rapid Eye Movement) and non-REM. The former helps in mental consolidation while the latter helps in physical repair and rebuilding. During the night, you alternate between REM and non-REM stages 4-5 times.

The earlier part of sleep is mostly non-REM. During that period, your pituitary gland releases growth hormones that repair your body. The latter part of sleep is more and more REM type.

For you to be mentally alert during the day, the latter part of sleep is more important. No wonder when you wake up with an alarm clock after 5-6 hours of sleep, you are mentally irritable throughout the day (lack of REM sleep). And if you have slept for less than 5 hours, your body is in a complete physical mess (lack of non-REM sleep), you are tired throughout the day, moving like a zombie and your immunity is way down (I’ve been there, done that L)

Finally, as long-distance runners, you need an hour of extra sleep to repair the running related damage.

If you want to know if you are getting adequate sleep, take Epworth Sleepiness Test below.

Interpretation: Score of 0-9 is considered normal while 10 and above abnormal. Many a times, I have clocked 21 out the maximum possible 24, the only saving grace being the last situation, since I don’t like to drive (maybe, I should ask my driver to answer that lineJ)

In conclusion:

Barring stress control, Ranjan Das did everything right: eating proper food, exercising (marathoning!), maintaining proper weight. But he missed getting proper and adequate sleep, minimum 7 hours. In my opinion, that killed him.

If you are not getting enough sleep (7 hours), you are playing with fire, even if you have low stress.

I always took pride in my ability to work 50 hours at a stretch whenever the situation warranted. But I was so spooked after seeing the scientific evidence last week that since Saturday night, I ensure I do not even set the alarm clock under 7 hours. Now, that is a nice excuse to get some more sleep. J

Unfortunately, Ranjan Das is not alone when it comes to missing sleep. Many of us are doing exactly the same, perhaps out of ignorance. Please forward this mail to as many of your colleagues as possible, especially those who might be short-changing their sleep. If we can save even one young life because of this email, I would be the happiest person on earth.

Due to confidential information, I must be careful about what I say to you. But you'll get the message from what I can tell you.

From the get-go the founder impressed me with his raw brainpower plus the outstanding brilliance of the people he recruited to do the startup. They were confident without being arrogant. They debated and learned from one another. They respected competitors. They took counsel and advice from outsiders such as myself.

That team set out to create a new generation of device that would enable a giant market to open up. To date prior technology had constrained the new market, keeping it only a hope in the hearts of market forecasters.

The technology the team created was blistering. It did things never done before. It also bankrupted the business plan, costing much more in cash and time and people than imagined. That happens often in attempts to break the sound barrier, but nothing ventured, nothing gained. Such is life in startups. Get used to it.

The result was a long list of world-wide patents plus a state-of-the-art factory partially completed.

Facing a fork in the road, the founder chose to keep the patents and sell the factory. The PR blast was so negative it would have destroyed lesser men. The founder made the transition and kept his character intact.

Over the subsequent ten years, the team perfected more technology, licensed it to giant companies and prepared to sue for royalties from those violating the startup's patents.

Half a decade later, the startup won. About 100 lawyers against 40. Goliaths against David. The first checks from the losers totaled $300 million to the startup. More followed as did more licensing deals.

Thus the shareholders like me celebrated with the founder and his persistent team.

BOTTOM LINE: Some would call this an example of a "Phoenix." the mythical bird that rises to fly out of the ashes of a fire (defeat and ruin). I see it as an  example of that special breed of startup founder: the one with a special form of persistence tempered by wisdom, character and street smarts. If you have that, you are blessed with a special element of an unfair competitive advantage.

I wish you The Best on your Adventure!

Let's pick up from where we left off yesterday.

• Be opportunistic. I had a plan to execute, but things changed, so I changed. The river was void of crowds, I had the place to myself. Amazed and thankful, I altered my plan to fish specific places that in the past had been productive with people around. Instead, I walked more slowly, enjoyed more of the fall colors in the leaves, the white waterfalls and aqua green stream of the river. That gave me more time to look for active fish. In less than an hour, deep into the forest, I looked down from the high trail and spotted three active fish. They were preparing a bed for laying eggs (a "redd"). Immediately I stopped, turned, and began the decent to the water below. About an hour later, the result was a very nice fish on the line. Unexpected yes, but that is what such a day is all about.Startup leaders know the time to be opportunistic. It is what startups do as part of following their plan. They are constantly looking and listening as they march forward. When they spot an opportunity, they make the change and go after it.
  
• Be persistent. The clouds arrived, the rain started, the bugs stopped hatching, the fish disappeared. I continued fishing. A famous guide I know and his fishing buddy yelled "Hi" from far above me. I scrambled up, caught my  breath and exchanged notes about our day of fishing. Slow but they had done well. Then off they went, to get out of the forest before the black and dangers of night descended on lonely hikers. I continued to fish, reluctantly conceding the wisdom of following them out very soon. The result was one more fish on the line an hour later. I hurried my hike back to the car over the rocks and through the trees. When I got to my motel I was very tired, but satisfied that the day had been worth the effort.
  
  I decided to get up early the next morning to be on the water as the sun began to warm it up.I expected the rise in temperature to get the fish stirring. The weather report was for bright sun as the rain passed through the prior night. The fishing began with me casting worse than a beginner. Tangles in the line, breakoffs in my thin leader, lost flies in the bushes all were discouraging. I kept fishing. By noon I had no fish. Not a nibble. I had seen several active however in the bright sunlight. They just did not want to play. I kept fishing. Bugs started hatching around noon. I landed my first fish, a modest one, but very strong. I kept fishing. Two hours later I landed my next fish, also modest but eager, after a rough climb down a rock cliff face and an exhausting climb out. I kept fishing. As the sun began to drop to the west, I reluctantly turned and headed back to the trailhead. I planned to fish a final stretch of water, a location in the past where I had landed a fine rainbow in the summer. I arrived, no one around. No signs of active fish. I began casting. Cast number three landed, the fly drifted and pow! The fly disappeared, I felt a very strong pull on my line and the fight was on. Moments later I landed and photographed "the fish of a lifetime" according to my guide friend. The smell of fish was wonderful. Persistence had paid off. Startup leaders keep on going and going. It is in their genes. Persistence is their motto.

BOTTOM LINE: Learn when to be opportunistic with your startup. You'll catch more fish. Learn to be persistent and you'll catch a trophy trout.  It is what serial entrepreneurs do to build unfair advantages. So can you.

I wish you The Best on your Adventure!

• Plan but let it remain an adventure. I had obtained insider information from locals and guides about the river and fishing conditions concerning my favorite water. My flies and rods and lines and leaders were selected and ready for action. My clothes, boots and waders were packed for the full range of weather predicted (full sun to cloudy to rain, sleet and snow, warm temperatures plunging to below freezing). And I had reviewed my fishing journal, noted tips and lessons learned on prior trips. All was summarized in my head in the form of a plan for the fishing. I remained open to whatever might happen, got excited about the possibilities of surprises good and bad, and relaxed. I finished packing my Jeep, set my alarm for 3:00 a.m. and went to bed in our guest room. Startup leaders plan and prepare in depth, yet keep their mindset open to the coming adventure.
• Adjust to the conditions. The water turned out to be free of fishers, with only two spotted in the four miles of water during day one. Day two I was alone. Day one was rainy and warm. The water was a cool but acceptable 55F (trout are active only between 52 and 62F). Bugs started hatching from the water around 11:00 a.m. and the final variety stopped at 3:00 p.m. I changed flies to match the hatches. I kept my wet flies (nymphs) deep in the cold water because the warmer temp is just off the bottom and that's where the big fish lie, waiting for bugs to grab. Top water bugs (dry flies) remained in my fly box, unused, except for one special pattern I decided to experiment with. I looked for fall fish spawning (big brown trout) and the greedy rainbows feeding behind the pair as some of their eggs drift down to feed the hungry bows. Startup veterans immediately adjust their plan to fit the situation. They treat the plan as organic, changing it daily.
• Act with confidence. I found when I fished a fly that I doubted would attract a fish that I it did not. When I acted with confidence, I caught fish. Similarly when I cast to a section of water I was certain contained fish (they are not visible to the eye), I caught fish (and visa versa). Startup leaders learn that doubt is a great hindrance to success. Be realist, not arrogant but definitely act with confidence.

Tomorrow I'll give you a couple more to dwell on.

BOTTOM LINE: Serial entrepreneurs plan their enterprises yet keep them an adventure. Once started, they adjust daily to the conditions they encounter, including surprises good and bad. And they do their work with confidence, without doubt. Those are characteristics of what it takes to be one of the startup greats. Learn to do that and you'll be on your way to building a startup with an unfair competitive advantage.

I'll head for trout on my favorite river in a remote section of northern California.

I'm going solo so I can think and mediate on what is on my mind, and to enjoy a quiet time talking with God about his beautiful creation and blessings.

I'll be back on Monday and  in the meantime wish you The Best with your Adventure.

Today I'll discuss some of what Tim Draper said about making the perfect presentation to investors. He is managing director of Draper Fisher Jurvetson.

At a recent conference for entrepreneurs in Marina del Rey, California run by PerfectBusiness.com, Draper said the following about entrepreneurs making presentations to investors:

"It has to feel like you're already in business and you have to make the investor feel like they need to get in on it." Those are words from one of the world's most successful and helpful venture capitalists.

So let's take a look at what we can learn from what he said:

• Emotions move investors to reach for their checkbooks. Note the word "feel" in what Draper said. That is an emotion. It is also a signal that he will invest if you stir his emotions enough. Note also the lack of a call for lists, facts, numbers and great graphics, and missing are calls for oratory skills of Churchill or Blair. That may sound strange to you techies, but serial entrepreneurs understand the power of emotions and work it into every presentation.
• Presenters fluent with their business plan get the money. These are the founders who have spent months, years, thinking and working on an idea for a new enterprise. Their hard work is in the form of a forty page business plan that is memorized. Ask them anything about it and they have an eager answer. Numbers about market size, figures about sales sources, headcount and cash flow pop up instantly. Strategy is presented as a done deal, no wavering. And so on. The presenter comes across to the investor as someone who knows a ton about the idea and what it needs to do to succeed. He is competent about what to do with the investor's money.
• Fear of missing the next Google makes investors leap to do your deal. Competition is the entrepreneur's best friend. Competition by investors eager to invest in your deal. You achieve that superior position by presenting an idea that has a core team ready to with a powerful competitive advantage in a potentially huge, open, growing market. "First to get it right wins" is how I see it. When the investor senses you've got that, have discovered the right mixture, then they will leap to do your deal. They don't want other investors to do it instead. So you'll need to plan your capital raising campaign with care and deliberation. The result will be investors lining up to hear your presentation, competing to do your deal.

BOTTOM LINE: These are special words from a great venture capitalist. Study them and reflect on the discussion of their meaning. Then apply it to your presentation for your next round of financing. That will boost your chances of getting the money from the investor you want to do the deal. Fluency with your business plan is key to getting the big check written. Dwell on what that means. And a calculated campaign to get the best deal from competing investors wins the day. When all that makes sense to you, you'll be well on your way to building a business plan so compelling that multiple investors want to get in on your deal. Your competitors will complain that's unfair.

I wish you The Best on your Adventure.

BOTTOM LINE: Investors want to feel you are an ace about your business, are raring to go, are ready to launch and all you need is some money to get started on a quest to become an amazing, enduring great business. Emotions play a key role. Think about that.

I'll start today with Richard Branson, famous for establishing the brand Virgin. Of all the celebrity CEOs I have studied, he has the most fun with his businesses.

At a recent conference for entrepreneurs in Marina del Rey, California run by PerfectBusiness.com, Branson said the following:

He ought to know. He's been on the brink of bankruptcy multiple times since he started his first business at the age of 16.

Here are my takeaways for you to think about:

• Like children, startups are fragile. Most cannot survive hard blows. On the first flight of his first aircraft of Virgin Atlantic Airways in 1984, without any passengers, (the flight required to certify the aircraft), a flock of birds flew into and destroyed one of the jet engines. His banker refused to lend the money to replace the engine. Branson raced into action, contacted  every business person he knew. Three days later a new banker lent him the needed money. It was a close call. The years following contained numerous blows. At first Virgin Atlantic survived, yet with the skills of Branson, it emerged as a world-class success.
• Entrepreneurs see success beckoning just on the other side of the line of survival. It calls in the night to propel founders in trouble. It generates a powerful call to leap into action in times of deep trouble. It is a call that the entrepreneur always believes in. That is why startup founders are so optimistic. They believe in the impossible, they believe they can find a way through the moments of disaster. That is great. That is dangerous. It motivates with enormous energy. But it may be unwise (time to close the doors and find a better business idea). In either case, the entrepreneur always hears success calling on the other side of the dark river of deep troubles. It seems to be in his genes.
• Wisdom and experience keep entrepreneurs on the right side of the line dividing success from survival. Here is where the serial entrepreneur, have an unfair advantage. They have learned what strategic and operational moves are wise and foolish. They are confident in the people they will hire, based on years of experience. Marketing is one of their great skill sets. Managing people is another ace asset. The first timer has to learn these skills by doing them. The unskilled can benefit from the experiences of people on the board  of directors, and from mentors and counselors. Such borrowed wisdom when combined with a few breaks can lead to success. 
• Entrepreneurs manage cash. It is the measure of health for their startup. It is what fuels the business. Yes, they can read a balance sheet and income statement. They understand the meaning and purpose of a forecast of financial statements. They understand how the cash does flow in their business model. They can explain all of that to anyone, without needing to display the Excel model they have memorized. It all rolls up to a lifetime of managing cash as it comes in and goes out of the new enterprise. That is not delegated. It is done by the CEO. If you cannot, it's time to pause and learn how.

BOTTOM LINE: Branson is wise, he respects the thin line between survival and success. Surviving is no fun.  It grinds people down. If you are there and have been for years, consider packing it in and moving on. Success is a better way to live your life. To find what it takes for success, I advise you to spend time studying and listening to some of the great entrepreneurs. Then discount the high degree of distortion the media puts on what they write about the greats. Find yourself a great local mentor who has been in business for years. Spend time with that person. Discuss what you read said about the great entrepreneurs. Then make up your mind about what you would do when walking the thin line between survival and success. When you can do that, you'll be well on your way to building an unfair competitive advantage.

I wish you The Best on your Adventure.

If you are giving negative responses to those questions, think about why serial entrepreneurs do not.

The veterans of startups have learned to use at least one day of the week for a special task: refreshing body and mind, and regaining perspective.

Why? Because they have learned in the school of hard to do startups that much of the winning is because they were able to be more creative and have more endurance than their competitors. Their insights were sharper and they made wiser decisions. They kept the battles in perspective and won the big war.

For first time entrepreneurs and for workaholics, this may sound counter productive. They think the person who works the hardest wins. But that's not true. Ask the serial entrepreneurs. It takes hard work, yes, lots of it. But the winning startups are lead by people who are fresh and keep life in perspective.

BOTTOM LINE: Don't waste a weekend working hard. Instead, use it to refresh and regain your perspective. That will enrich you in many ways, keep you ahead of your competition and make you a lot more fun to work with. When you learn to do this, you can use it to build a part of your unfair advantage.

I wish you The Best on your Adventure!

Their complaints form a pattern that you also may have experienced:

• I talk to seed round investors and when I finish they tell me they are not investing at this time in seed rounds.
• They tell me to keep them informed about my progress and then they lead me to the exit.
• No matter what I say they do not invest.
• I have this great idea but no investor wants to put money into it.

That is common.

It may surprise you, but it happens in boom times as well as recessions! I've watched it for decades. It is always with us.

Here are some reasons the budding entrepreneur discuss when we talk about why they are not getting the money:

• My presentation skills need some polish.
• If I found the right investor he would eagerly give me the money.
• Maybe I need to build a prototype to get the money.
• I asked for too much money.
• I asked for too little money.
  
• The recession keeps the investors from acting.

Those are frequently noted as why the money is not forthcoming.

But I think they are off target.

These are the reasons startup founders do not get seed round financing:

• Management is missing. Most of the sad founders are solo operators, commonly a lone engineer.
• The business plan is incomplete. It consists of one page in Word and forty PowerPoint slides, mostly about the features of the product/service and the technology details.
• Marketing skills and buzz attraction planning are missing.
• A plan for out-maneuvering the competition is missing (strategy).
• The business model consists of a guess and a hope (e.g. advertising will come).
• Forecast of the financial statements is missing.
• The basic idea is not amazingly different, instead it is only 'better, faster, cheaper" than existing products/services.
• Most of all, the idea does not display power in its competitive advantage, i.e. it is missing an unfair advantage.

Serial entrepreneurs who are famous do not take an idea to investors that they thought up in the shower that morning . Instead they use an initial idea to fill out a business plan that is well prepared. They respect that even they, the famous and successful and experienced, will only get one shot at the investor with the idea as presented. If ill prepared, they expect to get the dreaded response "Keep us informed of your progress." No investor says "Go away" because they might be missing out on the next Google after you get your act together.

There are times when you do need to prove the worth of your idea to investors. That requires you to fund the seed round with your savings. It is commonly required of startups lacking an experienced CEO and of ideas that are radically different and bold in their confidence of outlandish future success.

BOTTOM LINE: So do as the Boy Scout motto says it: "Be prepared." Serial entrepreneurs respect the value of doing the hard work prior to contacting investors. They do not seek money to get a business plan prepared. That they expect to do with their own time, paid for by their savings. Naive first time entrepreneurs that do the same will greatly increase their chances of getting seed funding. Remember that every investor is eager to spot the next great startup before competing investors do. So work on the suggestions above and aim at converting your idea into a business plan that comes across to investors with the power of an unfair advantage. That's how you get your seed money.

I wish you The Best on your Adventure!

"Similar" is a killer word for startups.

That word has such boring implications that startup leaders should delete it from their vocabulary.

If that is what you are bragging about, to investors, employees, bloggers and customers, please go no further. Save yourself the agony of learning the hard way. End it all now (your idea, not yourself!).

Why is "similar" so awful for new enterprises? Take a look at these reasons:

• No one (in the know, or who is cool) will spend money on similar when they can buy the original.
• A similar date is boring, the original is hot.
• People wanting change want big change, not similar (think notebooks versus laptops).
• New products that win big are radically different (think iPhone versus all the rest).
• Investors see ten similar ideas every week, they are looking for something very different.

If your idea for your startup is similar to other products on the market, you need to be courageous and create something radically different.

How radical? I'm glad you asked.

Take a look at the findings of new consumer product survey and you'll instantly see what I mean. (It is a quick read). The title says what is in the article: "iPhone vs BlackBerry: Survey Pits Sexy Against the Suits".

So now you get it: Winning is all about what marketing gurus call positioning. Your product is radically different in the mind of the buyer, it is so psychologically different that is will not be called similar by its buyer. That is where you want your product to be in the head of your ideal customer.

BOTTOM LINE: "Similar" is not in the vocabulary of serial entrepreneurs. They have learned to be radically different in the minds of their ideal customers. The customers instantly recognize the difference (between your product and those of the competitors). That is what positioning is all about. When you learn to do that, you'll be on your way to becoming a black belt in marketing, a skill mandatory to win the global new product wars. Use it to build your unfair competitive advantage.

I wish you The Best on your Adventure!

That word has such negative implications that startup leaders should delete it from their vocabulary.

If that is all you have to offer investors, employees, bloggers and customers, please go no further. Save yourself the agony of learning the hard way. End it all now (your idea, not yourself!).

Here is what better means for a startup:

• No better than another startup idea that is better.
• A small percentage more, nothing greater than that.
• Vulnerable to being leapfrogged by the same idea done by a different startup.
• Easily out-maneuvered by competitors who are quicker, faster, cheaper.
• Vaguely more valuable to customers.
• Lacks crisp superiority.
• Unable to respond to breakthrough solutions leaping onto a bold, new market.
• Feels like a warm, fuzzy blanket of comfort.
• Says the founders are safe minded, risk-reducing seekers.
• Boring.

The last is the worst. Boring means none of the stakeholders will get excited enough to go into action (invest, accept job offer, buy the product/service, blog about it).

If your idea is better, you have to drop it or use it in a breakthrough way to solve a huge problem. That is tough, time-consuming work. But well worth it.

BOTTOM LINE: Better is for small businesses in local communities. It works fine for them if they can also figure out how to stand out in an intensely competitive market. But for people (like you, hopefully) who want to convert an idea into a world-class, barn burning, rocket that make people watch in awe, better is a killer. When you understand this, you'll have insight that could lead you to move to greatness that amazes the world. That will be part of your unfair competitive advantage.

I wish you The Best on your Adventure!

That's a common call I get from enthusiastic entrepreneurs.

Nothing wrong with it except for one thing: that first call will be your last unless you are prepared.

What does it mean to be prepared for a call to an investor to talk about your startup?

Try this dialogue to see if you can get what I mean:

SITUATION (dialing the phone for the tenth time after a dozen emails, the founder has finally gotten the great venture capitalist to answer the phone).

FOUNDER: "Hello Mr. INVESTOR. Thank you for taking my call."

INVESTOR: "Glad to, you had a fine introduction from Brad. What can I do for you?"

FOUNDER: "I have this great idea for a startup. I need a seed round. Here is what it is all about . . ."

INVESTOR: (Interrupting) "How much are you seeking?"

FOUNDER: "Well I haven't a specific amount in mind. What do you think is about right?"

INVESTOR: (Ignores answering) "What is this idea of yours?"

FOUNDER: "I was thinking that if somebody did XYZ . . .: (He talks rapidly, stumbling around, for about two minutes, mostly speaking in general terms about the idea, then stops after realizing the investor has been silent). "So what do you think about my idea?"

INVESTOR: (Again ignores answering) "Who else is working on this with you?"

FOUNDER: "It's me and a couple of techie friends so far. I worked for Google for a couple of years after school and quit last year to work in this. I thought you could help me find the people Ineed."

INVESTOR: (Again ignores answering) "Which of you has run a business before?" (He repeats the same question about marketing, business development and engineering leadership).

FOUNDER: (Responds with answers that reveal the startup has people with no managerial experience, have not managed profit centers or been leads in their field of expertise. In fact, most are solo contributors or students with modest working challenges).

INVESTOR: "Send me something in an email." (By now he is looking at his emails online, preparing to end the phone call.)

FOUNDER: "What do you have in mind?"

INVESTOR: "Send me a deck [he means PowerPoint slides] about your idea. I have to go now, thanks for the call. I wish you the best." (Click, the phone call is ended.)

That is how an unprepared founder gets treated by busy, sharp investors. In this case, the investor is being polite to Brad who did the introduction. The founder does not know that over the past four months the investor already has seen a dozen related ideas in the same general area. Two of those have impressed him enough to lead him to dive into research about the related market and competitors, especially potential startup competitors. The result is that our FOUNDER is supplying information and not knowing it, and is not very likely to be contacted again. The INVESTOR did not find outstanding management or idea or market or technology in the idea of the FOUNDER.

How could our FOUNDER have been prepared? Simple: by spending the time (ouch!) and effort (groan!) to write a solid business plan before making the first call to an investor. The result will include an Executive Summary of two to four pages. That is what should be sent to the INVESTOR, not a PowerPoint deck (which lacks the comprehensive words needed to enrich the idea and stir emotions of the reader). After that hard work the FOUNDER will be prepared with solid answers to any question asked by the INVESTOR about management, people, market size, ideal customer, competitors, strategy, unfair advantage, cash needed, when.

BOTTOM LINE: It sounds so easy to take a good idea to an investor, get some money, pay for yourself and some people to figure out what to do next and then build a great success. But my experience shows me the great startups are well thought out before anyone dials for dollars. That is how serial entrepreneurs do it. It is how they become successful, startup after startup. It is part of their unfair advantage. You can do that as well. I highly recommend it.

Think like the Boy Scout motto: "Be prepared." Then you'll have a much greater chance of success when you make your first call to an investor. When you do, you'll be like serial entrepreneurs. You'll have an edge over other startups looking for money.  It will be your unfair advantage.

I wish you The Best on your Adventure!