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Graduate of Startup Day? Enroll in Entrepreneur University!

September 28th, 2009

As a sponsor of Startup Day and entrepreneur enthusiast, here’s a quick shout out and thanks to the Seattle 2.0 team and the army of volunteers who pulled off a great event!  The day was chock-full of casual conversations, and terrific speakers, who shared at least one common element: passion.  They combined healthy (if occasionally daunting) realism, with success stories, inspiration, and practical advice.   Full disclosure—while busy staffing NWEN’s display table, I couldn’t glean every ounce of advice from every speaker, so some sound-bytes and side-bars are reflected below.  That said, check out my personal top-ten take-aways:

  • Caffeine’s got nothin on Cooperman. Started off the day with coffee, granola bars, and Hillel Cooperman, dropping an average of two f-bombs per minute, but great advice and anecdotes.
  • Two to tango. Ksenia Oustiougova spoke candidly about the challenge of asking for support from the men in our lives (fill in “partner” of any kind and this is true.) Andy Sack’s start-up checklist includes the absolute necessity of getting buy-in and support from your significant other.
  • Release early and often. Though his topic was on financing, talking with TA McCann at the event, he’s a poster-child for the importance of beta testing—lather, rinse, repeat..  Gist had something like 47 builds before the official launch. Absolutely fanatical about customer feedback. No wonder FOGs (friends of Gist) are a large and loyal audience!
  • Just the stats, man. Dave Schappell’s estimate: one in 15 attendees of Startup Day will actually go try and start a business (and I’m just guessing this is a subset of the 25% of the audience who raised their hands when asked if they’d been called a workaholic before).  Talking with attendees, all of whom found the sessions valuable, a few said: I learned at this conference that I do, in fact, need to keep my day job. Good to learn that now, instead of a bank loan, two mortgages, and three awkward holidays asking friends and family for money later—this is clearly not for the faint of heart.
  • People need people. We’ve all heard it before, but Alex Berg suggested a new twist on an old favorite: Jerks are “little jerk factories”; all the sudden you come to work wondering why you don’t like anyone you work with.  Every hire counts (and evidently multiplies!).
  • Pick one. Ben Huh: you can be big or focused, but not both. It’s like the project management adage: you want good, cheap and fast?  Pick two.  Ben’s content-rich presentation on the stunning realities of monetizing web traffic dove-tailed nicely with Alex Castro’s talk on revenue models for Software as a Service offerings.  Good stuff.
  • Fumpany. Mike Mathieu quipped that the worst insult you can get is: “That’s not a startup, it’s a feature.”  Back in my Alliance of Angels days, my colleague Kevin used to call those “fumpanies” (vs. companies).  If you’re a one-trick pony that could be considered a feature of an existing product, ask yourself what’s to stop the developer of that product adding on that bell or whistle themselves.
  • The gift that keeps on giving: Check out the Startup Day twitter stream.  Lots of gems here culled from speaker presentations.
  • Got a dog-sitter (thanks, Dave Schappell!).  Now it’s official.
  • Got a couple offers for side jobs (thanks, Marcelo, for the pleasure of introducing Ben Huh, Ksenia Oustiougova, Alex Castro and Jonathan Sposato—extra love to the always-gracious Jonathan for suggesting that I become a voice coach—I’ll definitely keep my day job, but got a few business cards from folks wanting to pay for some voice-over work).

So if you’re in that elite group of folks who are inspired by what you heard and Startup Day, what next?  In this reporter’s opinion, sign up now for Entrepreneur University. It’s a logical next step where we’ll both inspire you with nationally recognized speakers and local heroes, and put you to work. With four interactive workshops peppered throughout the day, get your hands dirty wrestling with such challenges as “Will the dog eat the dog food? “How do I finance this puppy?”  “ How can I give my elevator pitch a lift? “ And “How can I harness social media and take the power to the people?”   Not to mention 90 minutes in which you can sit down with an investor one-on-one in our always-popular VC bistro….and/or sign up for a lunch date with experts in raising money, marketing, sales, law, and entrepreneurship.  Hope to see you there!

PS: Though we don’t plan to monetize these particular voice-overs, the NWEN board and friends will be showcasing their karaoke stylings at Hula Hula tonight at 7 PM.   Just sayin. If you read this blog post in time, don’t be shy…join us and grab the mic.

Tags: entrepreneur university, startup day
Posted in Uncategorized | 1 Comment »

Application Deadline Extended for First Look Forum

August 18th, 2009

NWEN extended First Look Forum Applications until August 31. This allows for more time for your executive summaries to be reviewed before competing for the top 20 spots for screeching, then the top 12 spots for the actual First Look Forum.

Why apply?

* Every applicant will receive feedback on their executive summary. For those not selected to present at the event, you will receive a free “Think Like an Investor Workshop”
* At our inaugural March event, the 12 presenting companies enjoyed exposure to 17 different angel and VC groups
* As before, presenters will receive over 3 hours of coaching from investment professionals, and priceless advice on the fundamentals of their business.
* Reflecting on the spring event, 86% of presenters reported they met potential business advisors or investors

If you won’t be applying with us, please be sure tell a friend that could benefit from all the coaching received from this process. Go to our website to see the comments from the previous presenters and attendees feedback!

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NWEN, ZINO and First Look Forum

July 24th, 2009

NWEN and The Zino Society are now offering reciprocal discounts to any entrepreneurs applying to both forums. Whether you are an early-stage innovator primed for First Look Forum, or an investment-ready deal ideal for ZZIF, send in your application and we’ll point you in the right direction at no extra cost to you. NWEN’s screeners will let you know if you’re too far along for our opportunity, and Zino will deduct $50 from their fee. To synch up with Zino’s schedule, we are extending our Early-Bird deadline to 7/31. Looking forward to your application!!

Be sure to follow us on facebook for all of our contest updates and pictures from our events.

Posted in Uncategorized | 1 Comment »

First Look Forum: The Sequel

July 15th, 2009

It’s summertime, which means blockbuster sequel season: applications are now open for First Look Forum, Part Deux! Read here for reviews of March’s event—more than a popcorn movie, it was met with critical acclaim. It is this reporter’s opinion that sadly, most sequels are inferior to the original (with the obvious exception of The Empire Strikes Back ). So we’re taking a page out of the 1980 George Lucas playbook and kicking it up a notch.

Just how are we raising the bar?
a) Streamlined application: A one-page executive summary. Every entrepreneur needs one, and we want to get you on your way with a solid template (click here).A word of warning: Mark Twain aptly noted “I didn’t have time to write you a short letter, so I wrote you a long one.” It’s no easy feat to distill your business into a page, but we’re here to help. Speaking of which…..
b) Iterative feedback: Everyone who applies will receive commentary on their one-page summary. The earlier you apply, the more iterations of feedback you can receive. Take advantage of this lather-rinse-repeat opportunity, and apply now so we can help you whip that summary into shape.
c) Transparent process: We’ve published our timeline so you know what to expect every step of the way. Other than birthday parties, we fully support a “no surprises” approach, and are here to answer any questions you may have.

As for those questions, below please find some FAQ’s. Though school is out for summer there’s a little multiple choice test if you’re getting nostalgic:

Who should apply to First Look Forum?
a) Founders who have an innovative businesses poised for growth
b) Entrepreneurs who seek feedback and coaching on their business plan from investment professionals
c) Companies who have not yet presented to the membership of angel group or a VC partnership
d) All of the above

Why would I be disqualified if I’ve presented to angels or VC’s?
a) NWEN is all about bleeding-edge, seed stage companies who need connections and coaching.
b) Angel groups and VC’s have pretty darn good processes to evaluate investment-ready opportunities.
c) We are committed to bringing our audience new opportunities that have not yet seen the light of day in the investment community (it’s the truth in advertising part of “First Look”).
d) That’s right, all of the above.

So why is this event invite-only to attend?
a) We promised our presenters we would fill the room with investors.
b) Space is limited.
c) Rebecca has spent way too much time in Belltown and just loves the velvet rope.
d) Truth in advertising is the big winner: both (a) and (b).

Bonus facts: If pressed, the author, NWEN ED Rebecca Lovell, will admit to both (a) having an inordinate trivial knowledge of Star Wars (episodes 4, 5, and 6) and (b) having a special place in her heart for Belltown.

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Market Research Sources

July 6th, 2009

I was reading an article about Market Research and sources you can use when on a budget. I thought this would be great to share with our community. We are all looking for ways to save, without cutting corners. You need the most information you can obtain in order to make the best judgement. By using the right tools and techniques you can excel with your research. NWEN is having an event tomorrow, July 7 on Market Research. If this is something of interest to you please be sure to check out our website and sign up. Mike Pritchard will be discussing an introduction and refresher on market research tools and techniques, relevant tools for entrepreneurs, what you can do your self and how to work with a research vendor.

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NWEN Events

July 1st, 2009

We have added new events to the calendar in July. Use the extra hours of light to network, and focus your energy on important entrepreneurship skills:

Market Research eIQ Session
Tuesday, July 7, offered twice 1:00 – 3:00 pm or 3:30 – 5:30 pm, NWEN Offices, Bellevue
Entrepreneurs need to know more about their prospective customers and markets, but perceptions or lack of knowledge sometimes gets in the way. “Market research is an expensive isn’t it?” “How much can I do myself?” How do I make sure the research gives me the answers I need?” Join Mike Pritchard as he shares cost effective tips for success.
Cost: $34 for members, $49 for non-members
Register for the 1:00-3:00 Session
Register for the 3:30-5:30 Session

Venture Breakfast: Meteor Solutions: A Love Story
Friday, July 10, 7 – 9 am, early bird networking starts at 6:30, Harbor Club, Bellevue
In a tale of two companies (and a venture capitalist), boy starts company, company goes to market, company meets venture capitalist, two companies meet, and live happily ever after. Though the story of Meteor Solutions isn’t nearly this simple, it is a Reese’s Peanut Butter Cup-style phenomenon where the whole is greater than the sum of the parts. Join us as Pete Parsons (founder of Fyreball) and Ben Straley (founder of Reach Machines) share some lessons learned from the market, the joy of being nimble and market-sensing, and the power of relationships in the community. Whether or not you agree the subsequent creation of Meteor Solutions is a classic romance, it is a fascinating story.
Cost: $25 for members; $40 for non-members, $5 additional after July 6 (walk-ins additional $5 at door)
REGISTER

Pub Night – New Location for July
Wednesday, July 15, 6:00 – 8:00 pm, Del Rey, Seattle
NWEN’s pub nights have been a long-standing tradition, and a popular favorite amongst our members for the networking opportunity, great appetizers, cold drinks, and the chance for 3 minutes of fame as brave souls pitch their business to a friendly (beer-drinking) crowd. We’ve kept all these great traditions, but in July will move the party to Belltown. With free street-parking after 6, a US Bank lot just over a block away, $7 all-evening valet parking available via a neighboring restaurant, and bus routes galore, we’d love you to join us and celebrate.
Cost: $10 for members
REGISTER

Business Plan Writing Workshop
Tuesday, July 21, 3 pm - 4:30 pm or 6:30 - 8pm, NWEN Offices, Bellevue
Are you struggling with writing your business plan or executive summary? If so, you’re on the right track. It’s supposed to be hard. Let us help you to make it effective as well. Learn how to use the business plan writing process tool for critically researching, evaluating, planning, and explaining your business. NWEN’s Business Plan Writing Workshop provides an overview of many of the critical questions that every entrepreneur needs to consider in the early stages of the company’s life. This popular session is led by Bryan Brewer of Business Plans Northwest.
Cost: FREE for members; $49 for non-members
Register for Afternoon Session
Register for Evening Session

Think Like An Investor eIQ Session
Wednesday, July 29, 3:30 - 5:30pm, NWEN Offices, Bellevue
If you’re seeking outside capital for your startup, you need to think like an investor when putting together your pitch. Investors seek to maximize opportunity and minimize risk; get inside their heads and anticipate their questions. This interactive session is peppered with real world examples and led by Rebecca Lovell, NWEN’s executive director.
Cost: $34 for members; $49 for non-members
REGISTER

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Advertising Getting Better and Cheaper Through Facebook

April 6th, 2009

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About a year ago, I didn’t care or desire to be on facebook and until recently not many of my peers were on facebook. Now, it seems everyone is on it. If you are looking for a friend on facebook, just friend me. It is pretty impressive to see a company grow from 0 to 175M registered users in a matter of 5 years and these users are spending an incredible amount of time on the site every month. This leads to a tremendous opportunity for advertisers and entrepreneurs. I admit I haven’t figured facebook advertising out yet, but given the sheer numbers on facebook, it’s only a matter of time before facebook starts becoming extremely profitable. So, for us entrepreneurs, it’s time to start playing the game early before the all the other advertisers arrive.

One of my good pals, DK has a great post on facebook advertising. If you’ve done some facebook advertising with success, please share in the comments below about how you’re thinking about advertising on facebook and what’s worked well. I’m going to share some of the things we’re going to consider trying on facebook. I’m very excited to try this out.

1. Test slowly on a small targeted group. I’m most likely going to target the younger demographic 15-34 since we’re running an entertainment site. Find your group, target age, gender, and location if you need to. Start a campaign on that small group.

2. Measure and Optimize. Watch your results closely and see if you’re driving good, converting traffic. If not, focus on ad copy and your site to make sure it’s converting. CPC’s on facebook are generally cheaper than Google, so you may find some great opportunities to pick up traffic.

3. Consider using CPC as a branding exercise. If you are paying for CPC and you’re getting 0.5% clickthrough, wouldn’t it be great that you would be also getting brand exposure on the other 99.5% of people who don’t clickthrough? Make sure your brand is front and center and that you are doing things that are relevant for the end user.

4. Consider the social impact/virality of ads. If you create a successful campaign, it will get pushed through facebook very quickly with people sharing and talking about your company/product. Find ways to provide value to the end-user and make it easy for them to share your story.

There’s a ton of opportunity right now especially with advertisers staying on the sidelines to be able to purchase advertising much cheaper than in the future which means you can build a business a lot faster now. Facebook is just one of many channels that are going to be huge for driving unique, valuable customers to us. If you figure it out soon, you’ll have a definitive advantage over those who arrive to the party late.

Good luck!

This post was written by Andy Liu, a serial entrepreneur and angel investor. Andy currently runs BuddyTV, sits on several boards, and blogs at InspiredStartup about staring and growing successful businesses.

Tags: facebook, online advertising
Posted in Marketing communications, viral marketing | 3 Comments »

How to Get Quality Freelance Graphics Design Work on a Budget

April 5th, 2009

If you’re like me, you have a burning desire to be awesome at Photoshop. It seems so easy, so within reach. Maybe you’ve learned a few tricks like making gradient backgrounds for website titles. Ooooh, it looks 3D! Look out Pixar!

But then you come to some bitter realizations:

  • I’m spending way too much time on this.
  • None of this is making my website truly awesome.
  • Design doesn’t come from Photoshop filters; there’s color palette, page layout, consistency, compatibility with messaging, not to mention fonts other than Myriad Pro.

Making your website or blog or software gorgeous means finding a great designer. And since you probably don’t have enough work to hire an in-house designer, you need to find a freelancer.

Well, you’re in luck. Here’s how to get freelance design work and how to make sure you don’t spend more money than necessary.

1.  Bid out small jobs on-line

The first rule of hiring a consultant is: Maybe you don’t need to hire one!

If you’re in the market for small jobs, your best bet is a marketing auction site like 99designs or CrowdSpring, or a professional database like GraphicRiver, or a site with both like DesignBay.

To describe how it works, let’s assume you want a logo.  You start by describing the project: “Design a logo for Xyz.”  (That was easy.)

Next you give parameters and conditions.  Specify your company’s color scheme (two or three colors; if you suck at colors just steal borrow a nice set from Adobe’s on-line archive.  Logos need to look good both large (for T-shirts, posters, and tradeshow banners) and small (for business cards and corners of websites), even if that means having different but very similar logos for different sizes.  It’s often a good idea to require that the logo makes sense in black-and-white, or that it’s still legible even if the viewer is red-green color blind.

Finally you specify the amount of money you’re willing to spend. Often $150 for a logo is enough.  Why so low? Because a lot of designers are just getting started and need to win jobs to build a portfolio. Also because designers do this on the side for a little extra income, or are willing to take cheap jobs to get through the recession. Or because the designer lives in a country with a lower cost of living.

I know several people who have had great logos designed in three days for under $150. If you’re looking to develop your personal or corporate image, surely that investment of time and money is worth it!

But many jobs are too complex or too important for a one-off cheapo solution. Besides, there’s a good argument to be made that these design-on-spec sites are morally gray.

In that case you need to hire an expert.

2.  How to look for freelance designer

You couldn’t have picked a better time to hire a freelancer! The recession has created a buyer’s market for any sort of consultant. Take advantage of this time to find a terrific person at a bargain.

Start with your network (friends, Facebook, LinkedIn); recommendations are almost always better than nothing.

Be careful though — if the recommendation is for “a friend” or anyone with a familial relationship (”Oh yeah, my brother-in-law is looking for work), be very very cautious! First, this implies the recommendation is a favor rather than a vote of confidence for the work. Second, and more importantly, it will be hard to have a professional relationship. If you have to put your foot down or even fire them, suddenly it’s personal. Not worth it!

Your alternatives include Craig’s List, general Internet searches in your area, or web sites like Elance that connect you with freelancers; all these methods can create an avalanche of candidates you’ll have to sift through. That means you’ll have to be rigorous with your vetting process, described next.

3.  How to choose which designer to hire

So now you’ve amassed a few candidates.  (Yes “a few,” you’re not going to consider just one!)  How do you choose?

The most important qualification is whether you like their prior work. I cannot stress this enough: Designers don’t morph their style to match yours; they don’t deviate from their own style.

If they make slick, glossy, mocha-latte-modern-glassy stuff, you’d better like that. If they make crunchy, green, friendly, round-rectangle stuff, you’d better like that. Scan their portfolio and make sure you like what you see, as-is. If you run across something and think, “Ooh, this would be perrrrfect if they just copied this exactly for me,” that’s a great sign. If you go through fifteen pages of their portfolio and nothing makes your heart leap, it’s a “pass.”

I know, many designers will tell you otherwise, and I’m sure there’ll be thirty comments calmly and artfully ripping me a new one over this. (And please do! Our dear readers need to hear the other side of the story.) But in my experience a style mismatch is a non-starter.

The next thing you do is call their references. But don’t get excited when their references are positive. Of course they are — otherwise they wouldn’t be listed as references!

Instead, you’re looking for glowing, over-the-top recommendations. You’re looking for things like “Yeah we hired her once and we’ve been coming back for years.” Or “I actually hate to tell you how awesome she is because it might mean we get less time.”

A key question you should ask is: “Did the designer deliver on time and on budget?” These constraints are important and separates the artists from the artists-who-treat-this-as-a-business. You need the latter.  (Thanks to Kathy from Virtual Impax for this suggestion!)

A trick is to request a reference for a particular portfolio piece that you like. Don’t ask for the references they want to give — surprise them.  Expect that they need to ask permission before giving out contact information.

4.  What to ask for in the contract

You have to get a few things in writing so there’s no mistake when it comes time to trade final product for a check.

  • You are the sole owner of all works made for hire. The consultant retains no copyright. You need this to ensure uniqueness — that the designer cannot just duplicate work done for you and use it elsewhere. You also need it for control; when I sold my company we had to get special releases from all our freelance designers explicitly stating that we owned the intellectual property.

    It is appropriate (and recommended) to allow the designer to use all materials in their own portfolio; just make it clear that this isn’t joint copyright, but rather a free license you grant them for the purpose of promoting themselves.

  • You get the electronic source files of all works, both finals and drafts. This is essential so that you can make small changes yourself or switch to a different designer.
  • Expenses besides the hourly rate must be approved first. I’ve been bitten by designers who run off and order products we don’t need or make expensive color glossy print-outs of things we’d rather see on a computer screen.

A final note on contracts, though — don’t sweat all the little details. Contracts only matter if there’s a dispute so severe and irresolvable that it comes down to lawyers. In that case it will be far cheaper to just walk away from the situation, even if that means paying the full amount.

5.  How to approach and structure the new relationship

So you’ve selected a designer and you’re ready to start. You don’t know each other yet, so neither one of you knows how to work together.

You’re going to want things like estimates and clear statements of work but the designer doesn’t know how many times you’re going to change your mind, how many iterations it will take, or whether you’re going to blow up her cell-phone at 9pm on a Saturday night.

The designer will want things like a clear direction and approvals for color palettes and design concepts, but you’ll be unsure of yourself, unsure how much to trust the designer’s instinct when it conflicts with your own, and unable to find the words to express your muddy vision.

Addressing these unknowns is easy — just be honest about them from the start and make it clear that you appreciate the designer’s dilemma as well. Talk! Notice when you’re hitting a barrier that might be your own fault.

Take a “baby-steps” approach to the design work. Instead of making a grand plan for redesigning everything, start with the basics. For example, try just the color scheme and logo as described above. This gives both of you a chance to learn how to work together.

Besides, getting the basics totally finished and approved makes it much easier to see how the rest falls into place. Once your colors, attitude, and style are embodied in something as iconic as a logo, the path to websites, white papers, blogs, and tradeshow banners becomes an extension of an idea rather than a new project.

Finally, “baby-steps” means you can spend just as much as you want. If you end up not liking each other or it’s too expensive, you can stop and still have something to show for it. And since you have originals, maybe you can take a crack at the rest yourself.

6.  It’s worth it

Yes, it really is worth all the effort. Your image matters. First impressions matter. Colors and layout and fonts set the tone before a person reads a single word.

In this ever more cluttered Internet, it’s even more important to stand out.

Plus, looking good just feels good. Now I know how Brad Pitt feels. (Yeah right!)

Jason Cohen wrote this post and allowed us to syndicate it. He is the founder of Smart Bear Software, maker of Code Collaborator, the world’s most popular tool for peer code review and recent winner of the Jolt Award.

Tags: graphic design
Posted in Entrepreneur resources, Marketing communications, Startup survival, starting a company | 3 Comments »

Definition of Insanity

April 4th, 2009

Do you ever feel like you’re going insane? Do you do the same things over and over again expecting a different result? Is your business becoming more and more like Groundhog’s day? That’s the real definition of insanity. How do you avoid going insane? Here are some of my free-wheeling thoughts.

1. Understand your motivation. What is driving you to do what you do each and every day? Are you someone who always seeks comfort and predictability? Do you value work/life balance? If you don’t know why you are going to work each day, you’ll be doing the same things over and over again with the same results. By understanding your motivation, you’ll have a clear idea of what you need to change in order to generate real results. For example, I’m motivated by competition and playing the game right, I enjoy winning which drives me to constantly evaluate strategy and execution. At times though, I’ll get in a rut and realize that I’m not driven by winning, rather I’m driven by “playing not to lose” - which in my mind is the dumbest way to play. For me, understanding which way I’m playing helps me stay focused on results.

2. Challenge yourself everyday with something uncomfortable. Now, not for the sake of doing so, but because you are doing something valuable for your company. For example, if you don’t write well, write a blog post for your company today. If you don’t know how to cold call, do it - call three potential clients today. If you don’t enjoy networking, invite a potential mentor to lunch today. The more you are challenged with new things each day, the more you’ll be able to see opportunities that will open doors for you.

3. Take responsibility. Honestly, I’m sick and tired of hearing entrepreneurs complain about the economy instead of taking responsibility for the decisions they are making. Everyone is in the same boat, the great entrepreneurs are the ones that are able to adapt, make decisions given incomplete information, and take responsibility for their own decisions. Blaming the economy is an easy way to continue doing the same things and avoiding the tough decisions that need to be made in this environment. Another thing that drives me absolutely nuts are companies that survive by leeching off of others, in other words, building a business around suing other businesses and people instead of building real businesses or competing. Build value, take responsibility, and stop the nonsense of detracting value.

The past Bush administration post 9/11 asked all Americans to step it up and spend to keep our economy growing. The biggest insanity in the US is that we think spending and debt will bring about a sustainable economy. Time and time again, it’s been proven that spending and debt both personally and as a country is unsustainable. We tend to spend on assets that decline in value, automobiles, Ipods, Iphones, TV’s, overpriced homes, etc. What we need is to have a healthy mix of saving and investing in assets that provide a return. It means that we must do things differently, we must live below our means (both personally and collectively), we must invest wisely, and we must save more. It’ll mean more short-term pain, but in the long-term it’s sustainable and bubbles of the past may be minimized in the future.

This post was written by Andy Liu, a serial entrepreneur and angel investor. Andy currently runs BuddyTV, sits on several boards, and blogs at InspiredStartup about staring and growing successful businesses.

Posted in Economy, Inspiration, Startup survival | No Comments »

Double Your Productivity Without More Work or Stress

April 3rd, 2009

Zappos COO Alfred Lin enlightens us on how to become 37 times more productive in only one year! Can it be? Let’s hear him out:

Make at least one improvement [every day] that makes Zappos better. It sounds daunting, but remember improvements don’t have to be dramatic. Think about what it means to improve just 1% per day and build upon that every single day. Doing so has a dramatic effect and will make us 37x better, not 365% (3.65x) better at the end of the year. Wake up every day and ask yourself not only what is the 1% improvement I can change to make Zappos better, but also what is the 1% improvement I can change to make myself better personally and professionally — because we, Zappos, can’t grow unless we as individual people grow too.

Imagine yourself making 1% changes every day that compounds and will make you and Zappos 37x better by the end of the year. Imagine if every employee at Zappos was doing the same. Imagine how much better you, Zappos and the world will be next year.

At first glance it’s inspiring.  At second glace it’s poppycock. At third glance you wonder how it’s possible for someone to use the word “Zappos” so frequently.

Being 37x more productive is impossible, and I’ll show you why. But along the way it will become clear how becoming 2-3x more productive might be within reach.

His math isn’t the problem per se. It’s true that if you improve 1% each day over the previous day, that’s a 1% compounding rate. My question is: Is it possible to increase your daily productivity by an entire percent every day?

To answer that, I want to give you a fun math puzzle. Yeah, I know, “fun” is relative… Okay look if you don’t like word problems just take a random guess at the answer. If you’re up for the challenge, try to solve it without pen and paper. You know, just to prove your MIT education wasn’t for nothing.

Here’s the puzzle: You get in your car at home and head out towards your mother’s house 60 miles away. (Your mom likes this word problem, I can already tell.) You hit traffic during the first half of the trip, so after 30 miles you’ve averaged only 30 miles per hour.

Now the traffic opens up and you can go as fast as you want. The question is: How fast do you have to go during the second half of the trip such that you’ve averaged 60 mph over the entire trip?

If you’re not using pen and paper, maybe you guessed 90? 120?

Actually it’s impossible! To average 60 mph you need to travel the whole 60 miles in a single hour. But it’s already been an hour!  Even if you went 1000 mph during the second half, it would have taken just over an hour to complete the 60 miles, therefore your average is still less than 60 mph.

It’s amazing how periods of low velocity wash away gains of high velocity. In the puzzle, if you doubled your speed in the second half it would increase your trip average from 30 to 40 mph. If you quadrupled your speed in the second half, your trip average would still be only 48 mph.

Once you’re behind, you can’t make up ground no matter how fast you go.

This puzzle illustrates the weird math of velocities, and what applies to “miles” per hour also applies to emails per hour or writing code or writing prose or any other “gettin’ stuff done” per hour.

The problem with improving your productivity is that so much of your day is occupied by low-velocity activity — dealing with emails you didn’t really need to see, dawdling in a meeting that hasn’t started yet, or spending too much time reading blogs. (Present company excepted.)

When half your day moves at 30 mph, it’s impossible to make up the time during the other half.

This is the problem with Lin’s 1% idea — the low-velocity stuff makes it too difficult to improve even 1% overall, at least not every day of the year. Even with 37x improvement in some areas, you still might not be 2x more productive overall.

There’s good news here, however! Once you realize that the low-velocity stuff is responsible for most of the drag on your productivity, you realize that the thing to do is eliminate the low-velocity stuff. Yes it’s good to learn to type faster, but cutting down on the time it takes to process useless email might help even more.

Ready for more good news? There are free tools that help you identify what the low-velocity stuff is. I use one called RescueTime. To show you how useful this is, consider this example of my stats for one week:

Whoa — almost eight hours of email.  That’s a solid, uninterrupted, full day of nothing but email I’m blowing through every week. Is that really the way I should be spending the majority of my time?

Even the long tail can be instructive. Notice the 45 minutes of “Calendars.” A drill-down bears out the awful conclusion — yes I spent almost an hour in Google Calendar.  It’s true this week was completely packed with events, but still.

Another realization: I had an averaged 5.5 hours of activity per day.  I was in the office for over 8 hours every one of those days — the rest is sopped up with meetings, office chatter, and lunch.  Here’s the mythical eight-hour workday quantified — I’m starting with 5-6 and even then I spent much of it fielding email.

Once you see the numbers it’s easy to correct. I now notice more when I’m in an office conversation that’s past the point of being productive. There’s millions of tips for how to process email more efficiently.

So if you’re serious about wanting to increase productivity by, say, 2x, you can. Identify the biggest perpetrators of low-velocity activity and eliminate them, then do a little surgery on your high-value tasks.

The best part is, none of this means working late or working harder. Just stop averaging down!

Jason Cohen wrote this post and allowed us to syndicate it. He is the founder of Smart Bear Software, maker of Code Collaborator, the world’s most popular tool for peer code review and recent winner of the Jolt Award.

Tags: getting things done, productivity
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