Startup Weekend is off and running, eight projects under way and a pep talk from Mayor Newberry.  Check back here for more updates through out the day tomorrow.

…our business may be significantly impacted by the failure of capitalism…

It is pretty frustrating out there, but don’t let it get your down.  Look for the opportunities in the problems you see.  If credit is tightening what sort of businesses will be successful?  If the government is going to print trillions of dollars focused on public works what sort of business will be successful?  Don’t fight reality, instead embrace it.

Greg wrote: “If you lost your job would you start your own business?” and he referred to a comment I made in a post where I wondered why none of the people at a recent LinkingRaleigh meeting seemed to consider starting a business after having lost their job.

A lively and very interesting discussion started in the LinkedIn group.  (If you’re not a member of LinkingRaleigh, AND you live in the Triangle, contact Greg to inquire about joining.  With 2300+ local LinkedIn members its a great networking resource).  My take-away was that people see the challenges of a startup and still may choose to take the leap and start for themselves.  Not necessarily because a job-loss forced them to, but because they prefer the personal fulfillment of going out on their own.

Some of the best comments were from Don Crouse who wrote “Starting my own business, while a challenge has given me freedom and happiness that I have not had in years.  We are now in charge of our own ship and we are staying docked in Raleigh.”, and from Jeff SanGeorge who wrote “I keep going back to something a Professor from NC State told me, ‘its much easier to find new business than it is to find a new job’.”

I never really thought about it that way, but its very true.  The very thing that makes companies hesitate to hire us, may give us the incentive for a startup.  You know, as in “Necessity is the mother of invention”.  Of course, you could interpret it as “I started my company because it seemed like less work than looking for a job.”   :-)

I’m a big believer that there is no good or bad time to start a business only different circumstances.  And I’m not being cheeky here.  Look at it this way…  Right now is a tough time to find startup capital, but a very easy time to find cheap, qualified labor.  A few years ago it was the reverse.  So if you’re starting up now your challenges will be different, but as an entrepreneur you’re constantly facing new and different challenges anyway.

The article I saw proved the point that great businesses can be started in “tough” times.  And I’m talking about startups that your mother would be proud off, with names like FedEx, Burger King and HP.  The article ran in the on-line edition of InsideCRM (not sure if it was in the print edition).   Make sure to read the comments at the bottom as well, some interesting and inspiring thoughts there.

The article got a lot of attention, suggesting that people are looking for validation to start something.   I first saw it mentioned on the Linked Business Strategists blog and then on Dane Carlson’s Business Opportunities Weblog.   Enjoy!

Increasingly, there are places where you can get work done and find like-minded soles.  I talked about one such place recently when I interviewed Brian Russell of Carrboro Creative Coworking.  But now Springstage, the project that is launching startup blogs accross the country — including this one, is offering a new opportunity for coworking.  OK, for now its only in Dallas, but its a start and part of a trend.

So every Friday, starting on December 5th, bring your laptop and go work in an environment with other entrepreneurs.  No way to know who will be there, who you may meet and what influence it may have on your venture.  You just have to try it.  Its hosted by Alexander Muse and Big in Japan.  More details here.

In case you’re wondering… I don’t know why its called a “Jelly”, but lets hope there’s free jelly donuts!

The presenting company was Komfort Kruz, manufacturers of motorcycle to trike conversion kit.  The company was started by two passionate enthusiasts and they have some patented technology that set them apart.  We will have more on Kustom Kruz shortly as well.

Looking at search engine traffic we are very aware users are entering ‘Shop Savvy‘ instead of ‘ShopSavvy’ into Google.  Our website doesn’t even appear on Google relative to the Shop Savvy search string.  In the UK, no one EVER searches for ShopSavvy.  The press gets it right, i.e. that is why there are 95,000 mentions of the application using the ‘ShopSavvy’ name, but consumers have voted that Shop Savvy is the right name.  How annoying!  If you are looking for Shop Savvy the best place to go is http://www.biggu.com.   Hopefully this post will help associate Shop Savvy with our company’s website.

INSIGHT TECH GEAR named 2008 PRODUCT OF THE YEAR

Insight Tech-Gear - MTMv2-LCD

Imagine if you could see crisp, clear, live images in total darkness, through fog, smoke, or thick brush with a devise that fits comfortably in the palm of your hand, said Devin Standard, Director of Marketing & Business Development - as he addressed the audience at last night’s Product of the Year Awards banquet. And, imagine if you could locate a lost child lying unconscious in the deep woods or a man overboard from your pleasure boat at night or in dense fog. STOP imagining. Insight Tech-Gear has the solution, the MTMv2-LCD, the smallest high-resolution handheld thermal imaging devise in the world, weighing in a less that 11oz. Boasting a robust military heritage and innovative features, this product has been created to directly serve the first responder market with unprecedented portability, thermal imaging performance, and easy viewing. The MTMv2-LCD is the only thermal imaging devise that renders facial-recognition quality images and man-sized objects at a 1/3-mile distance in a package this small. Utilizing a high-resolution infrared detector coupled with Insight’s proprietary electronics and imbedded software, the MTMv2-LCD runs on commercially available batteries for over 4 hours making it ideal for search & rescue operations on land and at sea. Saving lives in the goal of using this New Hampshire designed and manufactured high-tech product. Resume imagining! www.insight-tek.com

The Five Judge’s Award Winners: Ensconce Data Technology, Dell Inc., Eleme Medical Inc., Bradford Networks and Insight Tech-Gear presented their products to an audience of over 325 business, government and education leaders at the New Hampshire High Technology Council’s Product of the Year gala banquet held November 18th at the Center of NH Radisson Hotel in Manchester. The products were judged according to their innovation, performance, functionality, value and uniqueness, among other attributes. As the audience and finalists waited for the results, Governor Lynch received the winning company’s name and announced Insight Tech- Gear’s MTMv2-LCD the 2008 New Hampshire High-Tech product of the year. The winning team cheered as they all gathered on stage to be recognized. The elegant crystal Product of the Year trophy will be engraved with this year’s winner, Insight Tech-Gear. The trophy is on display at the Manchester-Boston Regional Airport lobby in the Product of the Year Hall of Fame.

The event is free, just RSVP so that we can make sure we have enough room.  Here are the details:

First Friday Dallas Jelly
Event Date: 12/5/2008
Event Time: 9:00 AM to 5:00 PM
Host: SpringStage Startup Network
RSVP: http://upcoming.yahoo.com/event/1372543/

You can still sign up, but you have to be fast.  The Startup Weekend in Lexington, KY is this weekend, starting on Friday evening at 6:00 PM through Sunday night.   Sign up here, and read more details here.

You can read more about the Startup Weekend concept in my recent post.

Nice article on this very topic in a recent Mass High Tech authored by NH’s Chip Griffin - enjoy!

http://www.masshightech.com/stories/2008/11/03/weekly4-Risk-takers-can-flourish-in-this-economic-storm.html

Friday, November 7, 2008

Innovation Notations

Risk takers can flourish in this economic storm

Right now the opportunities are abundant. Companies that find themselves downsizing will find real appeal in startups that help them do more with less staff. Focusing on things that increase efficiency and leverage scarce resources may be a path to success for new high-tech companies. Similarly, consumers will continue to spend money, they will simply be more selective in their short-term spending. Pursuing a venture that either appeals to the cost-conscious today or establishes itself in preparation for the next economic upturn would be wise bets.

Of course, finding investor funding may be a bit harder since far too much capital remains on the sidelines. That simply means that ideas with bootstrap potential may be better positioned to succeed in this environment since they are less likely to be facing imposing opposition from a well-funded competitor.

Meanwhile, smart venture capitalists aren’t hiding their wallets — instead, they are out looking for opportunities. With less competition for the best deals, investors can afford to be selective. There are no artificial competitions for funding to drive prices into the stratosphere, and that’s a good thing. A rational market has greater chance of long-term success than one that veers between extreme frugality and irrational exuberance.

Of course, there are other benefits to the current economic situation for entrepreneurs that must not be overlooked. The fact that many companies are reducing their workforces represents a tremendous opportunity for today’s startups. With talented individuals out of work and looking for their next paycheck, startups take on greater appeal. Moreover, with an expanded talent pool and a diminished market for employment, those who are hiring are in a position to pluck prime talent at affordable prices.

In the very best cases, some of these unemployed individuals may prove to be excellent entrepreneurs themselves, either by starting their own companies or by joining the founding team elsewhere. For those contemplating the refuge of graduate school, you might think about joining a startup — where you’ll get an on-the-job education about many business essentials. It won’t be formal or fancy, but you’ll get paid rather than shelling out cash, and you may just get a head start on the next big thing.

None of this comes without risk, unfortunately. For those who demand stability — either because of personal circumstances or individual preference — the turbulence may prove to be too great. The odds of failure for a startup today may not actually be any greater — in fact those at greatest risk are likely those started when times were better, when enthusiasm often outweighs reason.

If you have a strong stomach, a great idea, or a pile of cash, now is the time to find the right opportunities to take advantage of everyone else’s fear. Bundle up, prepare for the storm, and head out into the great unknown in search of the next prize.

Chip Griffin is a serial entrepreneur and angel investor who serves as the CEO of CustomScoop, a media intelligence company based in Concord, N.H. He can be reached at chipgriffin@gmail.com.

I’m in Toronto today speaking at Canada’s startup conference, Startup Empire. My presentation is called “Boulder, TechStars, and Why Venture Capital doesn’t have to matter.”   In general, I think that entrepreneurs put far too much weight on the availability of venture capital. Worse, they put too much mental energy into it.  I’ve been pitched many ideas over the last 3 or 4 years that always start with “get venture capital”. These business plans fundamentally depend upon venture capital (even prior to collecting underpants), causing many of them to never even get off the ground. The availability of venture capital cannot be your barometer.

My presentation in Toronto today argues that (based on raw data) it’s mathmatically 100 times harder to raise venture capital in Toronto than it is in tiny little Boulder, Colorado.  But my point is that whether your chances are 0.5% or 0.005%, does it really matter? Are you really going to focus your efforts there unless you have some of the things that improve your chances dramatically, such as a track record or a truly-world changing technology?

If you’re a first time entrepreneur with no big wins under your belt and no special relationships, it’s time to stop deluding yourself. Focus on your product and your customers, not venture capital.

Don’t let the down economy stop you from starting a business right now. That’s an excuse, and entreprenurship is about breaking through excuses. Sure, it’s hard to raise money from VCs (it always has been) and it’s also hard to raise money from angels (and it always has been) and it’s hard to build a business from the ground up (and it always has been).  It always will be, but you can do it.

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I have argued North Texas entrepreneurs (or potential entrepreneurs) are too conservative.  I have complained over and over that most 20-something ‘potential entrepreneurs’ in Dallas, as opposed to their counterparts in San Francisco and Boston, look a lot more like 30-somethings.  Let me explain.  In San Francisco most young entrepreneurs are living WAY below their means, sharing houses/apartments and using public transportation.  Their fixed costs are VERY low.  Compare that with the average ‘potential entrepreneur’ living in Dallas who has a nice big house in the suburbs, a leased BMW, a wife and two kids.  I get it.  There is no way the 20-something ‘potential entrepreneur’ is going to risk his house, car and family to start a business that is going to fail 90% of the time.  On the other hand, the average 20-something in San Francisco can fail over and over with very little impact to his way of life.

What if the downturn continues and deepens?  What if we hit double-digit inflation?  Maybe a new crop of 20-somethings will emerge in Dallas (and Texas as a whole) who don’t have easy access to credit (to buy houses and cars) and instead focus on building businesses.  Without easy access to credit they won’t have anything to risk - everything is upside.  Maybe easy credit has been the problem.  Of course there is a flip-side to this argument, but that really isn’t my point.  Perhaps there is a silver lining.  Beyond tightening of credit markets, I suspect there will be a tightening in the job market.  It isn’t hard to leave a job to start a business if you get laid off.

Finally, Texas is a very business-friendly state.  As companies file Chapter 11 and reorganize, perhaps they will pick states like Texas to relocate to?  For example, if Pelosi and Reed would allow GM to file Chapter 11 they could shed their expensive union contracts and move those high paying (i.e. comparable to the Toyota, Honda and BMW jobs we have in Texas) to Texas, Tennessee or South Carolina.  Maybe Texas is the NET winner in this realignment?

Here’s what I like about MEG, she seems to know her market segments. The company has identified the individual niche segments that could use the service and puts them out there with a sweet spin. CHeck them out.

“1 email with: “Steve Jobs has done an amazing thing with these Blackberry devices and my application can continue the drive for total RIM dominance.” Now, what’s cool about this one was the Steve Jobs, Blackberry and RIM words were all in Bold and different font.  This was from a fine fella in Lexington KY.  Yeah, [DEL].”

I am sure this was just a mistake and the guy knew that jobs and apple is the pairing but I assure Mr. Segal that most of us do.  Just a small black eye.

MARINE CORPS ORDERS
No. 47 (Series 1921)
HEADQUARTERS U.S. MARINE CORPS
Washington, November 1, 1921

759. The following will be read to the command on the 10th of November, 1921, and hereafter on the 10th of November of every year. Should the order not be received by the 10th of November, 1921, it will be read upon receipt.

(1) On November 10, 1775, a Corps of Marines was created by  a resolution of Continental Congress. Since that date many thousand men have borne the name “Marine”. In memory of them it is fitting that we who are Marines should commemorate the birthday of our corps by calling to mind the glories of its long and illustrious history.

(2) The record of our corps is one which will bear comparison with that of the most famous military organizations in the world’s history. During 90 of the 146 years of its existence the Marine Corps has been in action against the Nation’s foes. From the Battle of Trenton to the Argonne, Marines have won foremost honors in war, and in the long eras of tranquility at home, generation after generation of Marines have grown gray in war in both hemispheres and in every corner of the seven seas, that our country and its citizens might enjoy peace and security.

(3) In every battle and skirmish since the birth of our corps, Marines have acquitted themselves with the greatest distinction, winning new honors on each occasion until the term “Marine” has come to signify all that is highest in military efficiency and soldierly virtue.

(4) This high name of distinction and soldierly repute we who are Marines today have received from those who preceded us in the corps. With it we have also received from them the eternal spirit which has animated our corps from generation to generation and has been the distinguishing mark of the Marines in every age. So long as that spirit continues to flourish Marines will be found equal to every emergency in the future as they have been in the past, and the men of our Nation will regard us as worthy successors to the long line of illustrious men who have served as “Soldiers of the Sea” since the founding of the Corps.

JOHN A. LEJEUNE,
Major General Commandant
75705–21

Bob Parson, CEO of GoDaddy, put together this tribute. Semper Fi Marines!