I have a theory on why social media is popular with kids. I think it is all about fame, or a variation of fame I call “e-fame.”

This is how e-fame works. Social media is the stage. Your child is the star. Their friends are the audience. Every tweet, status update, message is the performance. Replies are the applause. Viola, your child has achieved e-fame.

So what about adults using social media? My business friends tell me they use social media for business purposes, to improve customer relations, to increase revenues. They make a compelling case. But, I have to wonder if maybe it is really all about e-fame.

Social media is awesome because it can scale. Anyone and everyone can be a star on their own stage. The size of the audience (friends, followers) doesn’t matter. All it takes is one person, one reply, one applause to achieve e-fame.

What do you think? Is the obsession with social media related to an individual’s 15 minutes of fame (or e-fame)?

Shaun McNerney

P.S. – For those readers not familiar with Twitter, 140 characters is the maximum number of characters that a Twitter message may contain.

This is something that I have heard more than once. My reply is always, “That sounds great!” What I really want to tell them is that they are about to discover there is more than one reason to virtualize their servers. Here are a few of my favorites.

Reason #1 – Consolidation of servers
Virtualization makes it easy to replace six (or more) servers with one. This greatly reduces / simplifies power, network, and KVM connections. Electrical and cooling upgrades to your data room are no longer required (for a while at least).

Reason #2 – Engineering Test
Virtualization makes it easy to test software releases against multiple OS / browser platforms. Imagine replacing a room full of test machines with a collection of files (virtual machine images). Engineers can then use these virtual machine images to test new releases against every platform using only their laptop computer. No more building or managing test systems.

Reason #3 – Security
Virtualization does simplify the task of rolling out security patches and updates. My favorite security benefit is virtualization enables supporting new customers with dedicated (virtual) systems. Separated servers helps keep customer data safe and secure.

Reason #4 – Agility
Virtualization makes it easy to adapt to changing business conditions. New servers can be deployed in minutes rather than days. System upgrades will go smoothly now that IT can “practice and perfect” the upgrade process using clones of the real servers.

Reason #5 – Compatibility
Virtualization allows continued use of legacy / mature (older) applications. For example, a Windows XP virtual machine can be used to run “XP Only” applications on Vista and Windows 7 systems. This helps to reduce software costs and there is no need for retraining.

Reason #6 – Business Continuity
Virtualization lets you deploy a virtual machine image on multiple hosts. You can operate a primary server with a secondary (hot standby) system. When the primary goes down, the secondary server can go online instantly. No more half day outages while IT rebuilds the exchange server.

Summary
There are many reasons to virtualize. It only takes one compelling business reason to actually do it. Once you virtualize, you will wonder why you didn’t do it sooner.

So, what will you do with all of your old computers?

Shaun McNerney

One of the hardest things to do is to come up with a compelling idea for a new technology business. Here is the process that I use to help uncover hidden opportunities.

1. Identify Fundamentals
   • Asset or Baby Business
   • Product or Service
   • Better-Faster-Cheaper or Brave New World
2. Collect Ideas
   • You
   • Your Company
   • Customers
   • Emerging Trends
3. Fail Fast
   • Prototype The Business
   • Test The Market
   • Time – The Most Precious Resource

Fail Fast

Read this very carefully. This is important.

Bad ideas should Fail Fast.

Good ideas stand the test of time. Every other idea should Fail Fast. Here is the process I use to Fail Fast.

Prototype The Business

Don’t explore a new business idea by building it. Instead, prototype the new business idea. Napkins, white boards, sketches, or (if you must) PowerPoint presentations are a great way to prototype a new business. The whole idea is to spend as little time as possible on bad ideas (and there will be many of those).

The elevator pitch is another good way to prototype the business. The elevator pitch plays a big role in the next step – Test The Market.

Test The Market

Your new business needs customers to be successful. Test the market by talking to as many potential customers as you can. Ideally your idea should solve one of their top 3 problems. If it doesn’t, then it is probably time for the idea to Fail Fast.

Note: Be sure to remember the customer’s top3 problems. They may lead to other ideas.

Fail Fast

Time is the most precious resource that you have. Rich or poor, everyone has the same amount of time. Don’t give bad ideas any more time than necessary. Always look for ways to fail bad ideas fast.

If a new business idea doesn’t Fail Fast then either:

• You are not performing enough due diligence on the idea

– or –

• You have found a great new business idea

Let me know how you find and evaluate new business ideas. Leave a comment or contact me directly. Enjoy!

Shaun McNerney

Note: This is Part 3 of a 3 part series — Part 1 | Part 2 | Part 3

My favorite strategy is to hire roadies that want to become rock stars … hire turkeys that want to be eagles.

Rock Stars and Eagles
I know several C-level executives that tend to hire only “rock stars.” They want to hire someone like Glenn Frey or Don Henley (both rock stars and members of The Eagles) for their team. They truly believe that is the only way to build a successful business. Their thinking goes something like this … hire a rock star, company gets noticed, company is successful.

Here are some issues to consider when hiring rock stars:

• Time – The company will succeed (or fail) faster
• Money – Rock stars cost, budget accordingly
• Employees – Rock stars tend to disengage others on the team, prepare for turnover
• Customers – Attracted initially by star power, value needed to retain

Roadies and Turkeys
There is hidden value in some roadies and turkeys. Not all. Some. It is a wonderful thing when you find a roadie with potential rock star potential. Of course, as their manager you have to work to help them realize their potential. So that brings up the question, do executives hire rock stars because they are lazy? Not willing to help cultivate turkeys into eagles?

Value vs. Personality
It all boils down to this … more successful companies are built on value rather than on personality. Entertain the customers and you are only as good as your last party. Cultivate the value and your customers remain loyal.

I’ve seen it so many times. After few months, the rock star is asked to leave. The company has nothing to show but a burst of cash burn.

Should you hire rock eagles or turkeys? I’ve met several executives who will only hire rock stars and some who will only hire turkeys.

Hire the best fit, hungry, willing to learn, adapt, and fit in.

Checklist for new hires

1. Qualified
2. More entry level than expert
3. Cultural fit (personality fits the company’s culture)
4. High integrity
5. Understands company direction

Shaun McNerney

Do you have a third place online?

When I meet with aspiring entrepreneurs, I always ask them what type of business do they want – Asset or Baby?

Inexperienced entrepreneurs try to have it both ways. But it doesn’t work that way. Your business needs to be either an Asset or a Baby.

Asset Business
Asset businesses are all about building shareholder value (making money). Public companies and private companies with outside (unrelated) investors are great examples of Asset businesses. The simple reason these are Asset businesses is that their shareholders expect a return on their investment.

Asset businesses are typically bigger, more financially successful than Baby businesses.  The problem with Asset businesses can be best summed up by the old saying, “It’s not personal, it’s just business.”

Baby Business
Baby businesses are all about retaining ownership, control, or keeping it in the family. Lifestyle companies are Baby businesses. Many entrepreneurs start a Baby business as a way to create a job for themselves. New entrepreneurs usually start a Baby business without realizing it. That’s where the thinking “My company is not for sale” comes into play.

The one advantage of Baby businesses is employees enjoy working for them. Baby businesses are like family. Often, several employees are family members (which brings up a whole different topic I’ll cover at a later time).

The big disadvantage of a Baby business is there is too much emotional and personal attachment. The desire to retain control can cripple or even kill a company. I know this from experience. My first software company was a Baby business. Upon reflection, it should have been an Asset business.

What Should You Do?
The question is simple – Baby or Asset?

Step 1 – Decide.
Choose what type of business you want. Communicate that decision with everyone involved – cofounders, employees, management, board of directors, and your investors. This will help to focus and drive everyone to work together, toward the same goals and objectives.

Step 2 – Be consistent.
Make sure everyone in the company (especially you) say and do the same thing. Don’t confuse people by saying your business is an Asset and then do Baby type actions. That will only hurt your company in the long run.

So – What type of business do you want?

Shaun McNerney

One of the hardest things to do is to come up with a compelling idea for a new technology business. Here is the process I use to help uncover hidden opportunities.

1. Identify Fundamentals
   • Asset or Baby Business
   • Product or Service
   • Better-Faster-Cheaper or Brave New World
2. Collect Ideas
   • You
   • Your Company
   • Customers
   • Emerging Trends
3. Fail Fast
   • Prototype The Business
   • Test The Market
   • Time – The Most Precious Resource

Collect Ideas

When it comes to new business ideas, you want to collect as many as possible. When you are collecting, there is no such thing as a bad idea.

Ideas come from many places – you, your work, customers, and from emerging trends.

I write down all of the business ideas that I come across. I sort them into one of three categories: Need, Want, and Other. I then explore only the “Need” ideas.

Tip: When collecting new technology business ideas, try to match them to one of the Gartner categories or IDC market areas. This helps to define what you’re offering, establishes the market opportunity, and identifies competitors.

You

Some of the best ideas come from a problem that you experience personally. Back in 1997, I needed to capture audio recordings (meetings) and post them on a web site. This problem turned into a business – TellSoft.

The problem with ideas that come from you is that you might be the only one that cares about the problem. Your might be the only customer buying.

Your Company

Great ideas are born when your company has a problem. A company that I worked for was having problems sending large, confidential files between office locations. The idea for Bit Weld, my current business, was born from that problem.

Businesses make great customers. If the problem is critical to their business, some companies will pay for a solution before it is built (a great way to finance your new business).

Note: Be extremely careful if you are working on a new business idea inspired by your current employer. The idea may not be yours to pursue.

Customers

Networking with customers and partners is a great way of collecting new business ideas. Here are some questions to ask your customers and partners:

• What are your top 3 problems?
• How are you addressing them?
• What is the impact to the business if they are/are not addressed?
• How can I help?

Remember to listen to the customer and to capture the problem as accurately as possible. Each problem has the potential to translate into a new business idea.

Emerging Trends

New business ideas can be cultivated by observing emerging social and business trends. This requires a combination of vision, imagination, and business sense.

If you are the first to sign up for new online services, first to buy new technology then you might be able to cultivate new ideas from emerging trends. If you’re not an early adopter, then you should focus on getting ideas from you, your company, and customers.

Continued …

Shaun McNerney

Note: This is Part 2 of a 3 part series — Part 1 | Part 2 | Part 3

I can remember when FTP was cool. That was back in 1999 when I was using FTP to download 1 MB files. Now I need to securely share 100MB files. When I think of FTP today I think of failures, no privacy, difficult to secure, no audit trail, and a frustrating user experience.

FTP just doesn’t cut it. Businesses should “Just Say No” to FTP. There has to be a better way to share files. There is – Secure Workspaces from Bit Weld.

Shutdown Your FTP Server
Secure Workspaces are a replacement for FTP. Using a web browser, you can upload and download files easily and securely via https.

A big advantage Secure Workspaces have over FTP is that you can create dozens of Secure Workspaces in minutes – all independent of each other. Using FTP you would have to get your IT staff to create dozens of subdirectories, dozens of user logins, and then apply access controls (security) to each subdirectory separately.

Another advantage is Secure Workspace access is audited. I know exactly who downloaded which files and when they did it.

Check It Out
Click here to try a Secure Workspace that I have set up just for this blog.  The password is “easy” and you will need to enter your email address (your signature) to access the Secure Workspace.

Feel free to create a folder and upload some files into the Secure Workspace. Just keep in mind that I will be alerted when you do.

Summary
So, why should you use Secure Workspaces?

• Simple – Secure Workspace are easy to use. File uploads, downloads are quick and simple. Working with multiple files is a snap.
• Secure – Unlike FTP, secure workspaces are fully encrypted, access controlled, and audited.
• Peace of Mind – Each of my clients have their own separate Secure Workspaces. I know exactly who is accessing my data.

You can try creating and using your own Secure Workspaces for free. Click here to sign up for a 14 day free trial. Enjoy.

 
Shaun McNerney

Disclaimer: I am an investor in Bit Weld.