9 days and counting, my new Surface will arrive.  As an avid gadget guy, I’m pumped about this launch with Windows 8.  Could this be the breakthrough consumer product that competes with the iPad?  Maybe.  Here’s why.

1.  There’s the USB port which I plan on using with external drives, scanners, and the like.

2.  A microSD slot which also allows me to add additional memory and download photos from my camera that uses microSD (really nice when traveling).

3.  It comes with all the productivity tools like powerpoint and excel.

4.  A seamless experience with my XBOX.  It also allows me to remote desktop to my work computers.  All of which I cannot do with any of my current tablets.

5.  And, it’s just under 1.5 ounces.

That’s a tremendous amount of promise - if it can deliver, I may be using the Surface as my go-to tablet.

I also have a very short attention span, if I can’t figure out a strong use case for that device quickly, it’ll end up becoming an expensive doorstop for me.  The iPad/iPhone/Apple TV combo has been by far the most compelling ecosystem for me followed by Nexus 7/Nexus Phone/Google TV.  If the Surface/XBOX combo works extremely well, I could very well be on the path to Windows Phone 8 and to the Microsoft ecosystem.

Microsoft is taking a huge leap here building devices that compete directly with their distribution partners or OEMs.  Bravo for doing it, takes courage, and sets the bar high for its partners, consumers, and its competitors.  I’m looking forward to seeing how this fight turns out - Apple vs Google vs Microsoft - and I can’t wait to get my hands on the Surface to see if it’s the real deal.

Let me know what you think.

Bad timing.  I’ve been on bedrest now for almost 5 days with more pain than I have ever felt and nothing seems to be working. Pain meds, acupuncture, chiropractor, deep tissue massage, physical therapy, epidural injections, etc. I can’t stand up for more than 10 seconds without shooting pain from my back to my foot. I can’t sleep, can’t shower, can’t drive, can’t sit, can’t stand, can’t walk, can’t do much. Feel pretty bad - miserable.  Not super inspiring.

On the upside, I’m watching a few movies on my new iPad, I get to work on some work stuff without distractions, grew some facial hair, and enough time alone to reflect on stuff.  Figured I’d post some stuff that I’ve been thinking about.

Some of the random stuff that I’ve thought about:

1) Man, I run hard and don’t realize often how hard I press. Only when forced to slow down do I realize how hard I’ve been pressing. I’m definitely grateful for the physical strength that I do have and will be even more grateful for my health when I get back into shape.

2) It’s unreal if I ask the hospital how much a procedure costs, no one knows the answer. They mention I’ll get a bill in the mail. It is what it is. Strange.

3) Out of curiosity, I called around for an MRI and found an office that was willing to charge $1,299 for it if I have insurance, but if I wanted to pay cash they were willing to charge me $475 but only if I proved I didn’t have insurance.

4) I wouldn’t survive without my wife. Not sure how she handles me anyway, but she’s been an absolute hero through this week which I won’t forget.

5) I canceled a trip to SF this week and it was great to see one of our team members take the lead and attend all the meetings. It was his first solo trip on behalf of the company. I’m excited about the new level of responsibilities each of my team members take when I’m totally out of the office.

6) There are a couple of ways to respond to tough circumstances. It applies both to your personal and business outlook. When tough times come, you can respond with dejection, frustration, and fear. Or, you can respond with hope, new opportunities, and optimism. It’s a choice. I definitely wish I didn’t have this physical pain, but I feel that coming out of this, I’ll have stronger perspective, stronger relationships, and more optimism. For me, it comes down to a choice.

7) I’m looking forward to a bunch of stuff now. Fresh air, board meetings, work, exercise, sunshine, travel, friends. Can’t wait.

8 ) One of the things I’ve asked our team to do more of is recognition. We need to recognize people more, there are so many things to celebrate in life - hard work, imagination, teamwork, excellence. The more that I take a back seat and watch what our team is capable of doing and recognize it, the more I’m impressed with what they can accomplish. Are you recognizing your team? With more recognition, I believe everyone gets better results.

9) One thing I’ve also noticed while being out of the office and bedridden is the challenges that I’ve brought upon myself based on my leadership skills. How clear am I on the vision of the company? Is each team member given the right tools to succeed? Do they each know what success looks like? While I feel that we’re in a good place, there are several areas that I’ll need to focus on in case I get stuck again. Those areas have become clearer for me in the past few days.

10) Which leads me to my key point. As a leader, am I building an organization that can be self-sustaining without me. Have I built an organization that has a deep bench, pointed in a very strategic direction, and working as a team to reach a big goal? I want to build a great company that is capable of being great without me or at least me with a bad back.

11) Why is it that prescription meds don’t mix with alcohol?  Oh well.

12) Goon is a pretty funny movie while watching on pain meds.  Trust me.

Well, I’m super fortunate I’m alive with a great family and running a business I love with great colleagues. I don’t have all that much to complain about, wish me luck!

I love this answer from the Dalai Lama when asked what thing about humanity surprises him the most.

He answers: “Man…. Because he sacrifices his health in order to make money. Then he sacrifices money to recuperate his health. And then he is so anxious about the future that he does not enjoy the present; the result being that he does not live in the present or the future; he lives as if he is never going to die, and then dies having never really lived.”

What do you think?  Are you enjoying the present?  How is that making you a better entrepreneur?

Enjoying the present for me can be as simple as enjoying a great bowl of ramen and appreciating the art, passion, and the entrepreneurs behind the business.  As I continue my search for the best bowl of ramen in the world, I savor everything about the broth and the noodles.   I know something as simple as ramen can make me appreciate the now, and taste beautiful.  Share your ideas, thoughts, and stories below.

Let’s soak the rich - apparently that’s what most Americans think should happen to reduce the deficit including Warren Buffett.  A recent CNN poll says that 63% of Americans wants to raise taxes on the rich.   Everyone knows that our federal deficit is unsustainable.  It’s clear to me that one of the biggest bubbles that we’re building is the government debt bubble - we’ve shifted the consumer, housing, and financial bubble to the government.   The stimulus we’ve put into the economy is nothing short of staggering.  We have to get more efficient and make hard decisions on the federal budget.  Should we follow the public’s outcry to soak the rich?

The President defines the rich as someone who makes over $200,000 a year.  Some interesting stats - “About half of Americans who file tax returns pay almost all the income taxes; the top quarter of filers pay 86% of the taxes; 10% pay two-thirds of the taxes. A mere 1% of Americans earning income pay 38% of the tax revenues—in 2008, that was $392 billion paid by them, out of a total take of $1.03 trillion.” (Thomas Donlan, Dow Jones & Company).  Do the rich need to do more?  I’d argue yes, but not in the traditional sense of more taxes.

Personally, I don’t have any problem providing tax cuts to the poor and the middle class where the need is greatest and where the extra income will be spent right away.  Where I have a problem is not expecting more from the rich.  This is why I’d argue that it is up to the entrepreneurial community and the “haves” to step up and take risk and invest - in a way that drives growth and jobs something I believe the government cannot efficiently do and shouldn’t do.

Most of my uber-rich friends are in capital preservation mode.  I don’t personally believe in trickle-down economics, once the uber-rich has enough capital for their family and future generations they go into capital preservation mode and minimize risk and taxes.  Often times, they’ll buy treasury bonds or other capital preservation investments that do not inherently drive efficient growth.  With limited estate taxes, generational wealth can be passed along to heirs who do not have to work for their money or create sustainable businesses for their employers or themselves.  We should encourage the rich to invest in new businesses and put their creativity and knowledge to work.  Take this crazy idea for example:

Create jobs and more wealth creation: Fund every entrepreneur.  I’m an angel investor that has invested in over 32 companies and I don’t have the means to invest in every opportunity I see, but why can’t we fund every entrepreneur to give their dream a shot.  Here’s how I would do it.  The entrepreneur needs to put up 50% of the cash for the startup and gets matching funds from any “rich” individual for a company to get started up to $50K.  The investor gets to immediately write-off the entire investment off of ordinary income (very similar to a charity) up to the amount of the increase in taxes that Buffett or Obama proposes.  If the “rich” do not make the investments, they must pay the additional taxes levied.

Here’s where it gets more interesting for the entrepreneurs: The investment reduces risk for the entrepreneur and the investor.  The entrepreneur gets someone who can provide guidance on how they became rich and could be a source of additional capital, advice, mentorship, and networking.  The investor gets to see a return on their investment that should be larger than a muni-bond or treasury.  Even if the venture fails, the entrepreneur and investor gained valuable experience that can be passed onto the next venture.  These days, technology companies and businesses can get their unit economics and business model working on a small scale with a budget less than $100K.

Every person in America who has a dream can do this, they have to have their own skin in the game (50%), they have to marshall resources from friends and family (just like every entrepreneur does), and there is a government subsidy for the rich to invest and to take risks.  Even if just 1% of all these businesses succeed, the profits and jobs created will be substantially greater than the tax subsidies provided by the government.  Those who are unemployed get to use their creativity to build businesses and investors get an opportunity to participate in investing in non-traditional companies.

Based on my limited interaction with entrepreneurs, this could create over 10MM new businesses (3% of 300M).  If we find the next Microsoft, Google, Zynga, Facebook, Starbucks - which is highly likely we could create over 10MM new jobs for the economy in the near term (2% = 20,000 strong companies with ~500employees).  The cost would be the tax deduction for $50,000 against 10MMbusinesses or $175B (assuming a 35% tax rate) if this was all new investment dollars and would be levied as a tax hike only if the “rich” do not make any investments.  We need the rich to invest more, innovate more, be entrepreneurial, and be rewarded for doing well - the rich and the entrepreneurial will help America get the economy and the federal deficit back on track.

I’m sure I’m not the only one with this idea.  What do you think?  Wouldn’t it be great to see more people creating opportunities when jobs are hard to come by?  Perhaps we can find an entrepreneurial way to build a bridge to the prosperous future for everyone especially those who are unemployed and are struggling.

I was once told that you can always sleep more once you’re dead. There’s just too much to do, finding great opportunities and doing what we do best - pulling resources together to build something really special. Umm, who needs sleep?

I believe that one can choose happiness and that very little of it depends on circumstances. I choose to enjoy the entrepreneurial journey, if/when it ends isn’t as important as the opportunity to be in a startup venture every day. I’m absolutely blown away by how fortunate I am each day to be able to go into work and do what I get to do each day. It’s crazy. People working together to achieve something great and I get to be a part of it. Getting a “no” on a biz dev is just not that big of a deal, just pick up the pieces and go again. Here are some of my random thoughts on being happy and staying happy:

1) You can choose to be happy even when circumstances seem otherwise.
2) Happy Gilmore did it best by thinking positive, fun thoughts. Just reflecting on the positives changes my outlook pretty quickly.
3) Be around positive people. Be around entrepreneurs!
4) Stop hanging around those who are negative energy and are constantly down.
5) Give. Not just money, but time. Be a mentor, introduce people, host a party.
6) Exercise. I think there’s some chemical that’s released to your brain that makes you more positive.
7) Watch and read inspirational stories. Happiness Advantage is a good one.
8 ) Plan something new then do it. I haven’t snowboarded. It’s time.
9) Set a goal each day and achieve it.
10) Reflect on what you learned that day. Part of what I think is uniquely human is our ability to reflect and learn. Not sure why many of us just want to forget the day, it’s an opportunity for us to savor life and what was memorable.

Love to hear your thoughts…

2) With low expectations, you can become the talk of the town! This past week, I can’t remember one day where I didn’t enter into a random conversation with someone about the Seahawks. They were the talk of the town - they galvanized the community and fairweather fans became diehard fans. Trust me, 2-3 weeks ago, people weren’t talking Seahawks. Our businesses can do the same thing, by defying expectations, and going above and beyond we’ll create fans and customers that love us and will share with the rest of the world. We just have to deliver. As entrepreneurs, I feel we’re always the underdog, the odds are stacked against us, and like the Seahawks we have to work our way to defy expectations and to create the buzz around our companies.

3) Give credit to Pete Carroll. The guy really is the Tony Robbins of the NFL. I read his book - Win Forever - and, it was a little too sugary for me. However, the guy lives it out and is consistent day in and day out with regards to being positive, motivational, energetic, and competitive. The team believed in its leader and played hard for him, there was a pretty big difference in their swagger, belief, and it showed on the field. I’m not saying we need to be Pete Carroll in our businesses, but we can sure learn from being focused and having everyone on our team moving in the same direction.

4) Get rid of the wrong players. With over 200 roster changes, if you weren’t bought into the system, you were out. Period. The Seahawks paid a receiver over $6M to not play for the Seahawks. If you have team members that aren’t willing to buy into your vision and pull the same direction, it’s time to let them go. For a startup, you can ill afford to have team members that are just there for a paycheck. You want people who want to win, who are and act like owners, that don’t give up easily. They are positive and influence others positively.

5) You are going to lose occassionally, but don’t lose the war. It sucks that the Seahawks lost and I’m sure the players were extremely disappointed especially since the stars lined up and Green Bay would have played in Seattle next week and New England is now out of the playoffs. But, the beautiful thing like sports, entrepreneurship is a journey and a game. If you play the game right, there’s always next season and there’s always tomorrow.

It was a fun ride and I was definitely inspired by the last couple of weeks. If the Seahawks can beat the Saints with a roster of unknown names - we can do the same with our businesses!

We ran into a situation with AdcloudMedia where we were invoiced for an amount significantly more than we had agreed to.  I generally do not have a problem with this as many companies can and have made rather innocent mistakes.  I had instructed our accounts payable person to not pay the invoice until we had it corrected - unfortunately for us, the check did go out.  I incorrectly assumed that when a company receives a check that is obviously in error (and notified several times about it) that it would either return the check so we can re-issue a new, correct check or they would refund us the difference.  This company felt that they deserved the check and mentioned on the one phone call I could get through that “finance had closed their books” and they would not be able to refund the money.  This is no different than you or I finding $8,000 in a wallet with ID and keeping it - sure we can keep it, but is it right?  My argument is that not only is this wrong, but so short-sighted that it borders on incompetence. 
 
Are you chasing short-term gains at the expense of long-term homeruns?  I admit that it’s easier to take the short-term gains and it’s hard to pass on immediate gratification for the opportunity of bigger gains down the road.  This company took $8,000 but lost the opportunity to grow a business where we would spend significantly more than that amount over the lifetime of our relationship.  I was really surprised that they worked so hard for our business, responding to phone calls and emails and then as soon as we complained about overpaying they never responded.  It’s like a hit and run, the 8-grand was the homerun and they were willing to burn the bridge.  My advice to them would be to - don’t take the easy money and walk away from the opportunity to build a long-term relationship.  I can think of countless companies that do this right.  Nordstrom’s - they’ll take a loss on a return, but by treating you right, you’ll come back and spend more and tell your friends.  We all know about Zappos, they take care of their customers and their customers are extremely loyal.  Customers want to be delighted and surprised by great stories.  Yet, at the same time, they won’t hesitate to share their displeasure with bad service or experiences.  This company has lost a long-term customer. 
 
We all know the power of word-of-mouth.  It’s powerful, but often underestimated.  It’s pretty easy to calculate what the win was for the company, about $8,000.  It’s a little harder to calculate what they lost - potentially $100,000 this year in new business from us.  However, word of mouth losses could exceed significantly more this year.  It takes both the positive and negative form.  We won’t recommend the firm to companies we’re friendly with which reduces referral business they would have received from us.  Obviously, we’ll be sharing stories with other business owners about our experience with them which may cost them new business moving forward.  The cost of doing business this way is significant. 
 
Another area of fallout include employee dissatisfaction.  If you can’t take care of your customers, will your employees work extra hard for you?  Will you even be able to keep your employees?   
 
So, what can we do in 2011 to focus on building long-term value for our companies, I’ve been thinking about some ideas and here are some:

1) Invest in relationships that have no immediate payoff.  Be thoughtful about how you can help another company reach their goals in 2011 even if there is no quid pro quo.  Make it a weekly rhythm of helping one acquaintence by making an introduction or taking a meeting.  Building long-term relationships absolutely results in positive outcomes even if it is just feeling good about helping another person or company out.  Deals are generally done because of relationships, make a concerted investment in them.

2) I had a unique opportunity to visit Robben Island last year and hear from one of the prisoners who lived with Nelson Mandela as well as listen to a political activist, Denis Goldberg, who was imprisoned for 22 years for his opposition to Apartheid.  Their personal stories as well as their stories about Nelson Mandela were incredible - even in the midst of living in extremely inhumane conditions at the prison, they showed fortitude and lived with integrity until their release.  They had a vision for South Africa and what it could be and followed through with dramatic human spirit to change a nation.  As entrepreneurs we often don’t think big enough and don’t have enough fortitude to drive through the hard times - staying consistent to who we are.  Invest in who you want to become and have a real vision to follow through.  My hope in 2011 is to be intentional, and not to be swayed by all the short-term opportunities that might seem attractive.      

3) Overdeliver.  How do we delight our customers, our employees, and our investors?  It used to be that getting an ok product with great marketing could drive a successful company.  Now, with social media, word of mouth, and instant feedback - great products, great service get recognized quickly.  Restaurants that used to be local favorites are now frequented by foodies around the world.  In 2011, I want our company to overdeliver - to really delight our users and surprise them.  Make it feel like magic!  Let your customers market to your userbase.  Focus on the product, focus on your employees, and your investors will be delighted.  Overdeliver.

What are some things you are working on in 2011 that will create long-term value?  Have you struggled with short-term gains that distract from the longer-term goal?  Share some of your thoughts below. 

Lastly, I don’t know these AdcloudMedia folks personally, and for all I know they are probably great guys and would be fun to hang out with.  I don’t care to really pursue things further with these guys because we’ve all done things that are shortsighted and probably hurt the businesses we run long-term.  Who knows?  Maybe they’ll surprise us by doing the right thing.  I think the lessons we can learn from the way they conduct business proves to be a good reminder of what to strive for - surprise our customers with more than they expect and focus on driving long-term value.

How do you get your business “in the zone” and really working on all cylinders?  I can honestly say that it doesn’t happen often and you absolutely know it when it happens, the team is all on the same page focused and energized on the vision, customers are happy, investors are excited, and you are absolutely on a mission.  Here are my thoughts on the three ways to get “in the zone”:

1) It takes a spark.  Someone in the band has a creative moment and starts a simple chord progression with a rocking tempo and the band starts jamming.  That’s all it takes is someone with initiative to start it off.  That of course, should be you.  It’s your inspiration, your creativity, your energy that everyone will feed off of.  However, you’ve got to get off your butt - and execute against your idea and inspire a team around you.  Get the ball rolling, stop listening to music and make your own.

2) Move until you Groove.  A lot of times, a drummer or a guitar player will start a jam session with a simple beat or a guitar lick and the band just starts feeding on it until everyone is in a groove.  However, most times, people just aren’t feeling it or just don’t get it and you’ve got to start over and take another direction.  Recognizing when something just isn’t working and moving on is a great skill, move on too quickly and you just might miss a great opportunity, move too slowly and you lose valuable time.  The underlying lesson is always be moving because you will hit a groove - too many entrepreneurs just plain give up when things aren’t going right.  Things mostly don’t go right, you’ve got to keep trying.  It’s worth the ride to get the groove on - several of my companies took at least 2-3 years before we got it right.

3) Build energy or momentum.  Once you’re in a groove, don’t let up.  Hit the gas pedal.  It’s just getting fun, everyone has got energy, executing on all cylinders.  You’re moving downhill, take advantage of it.  People feed off your energy and you feed off theirs, so keep your energy level high.  For example, the best time to sell a deal is right after you close a deal - you’re on a high, you’re confident, and you’re on a roll!  When we were in a groove jamming away, we would try to keep it going as long as we could.

4) It takes the right band members.  It’s impossible for me to get a tone deaf person to be the lead singer just like it would be impossible for me to teach a drummer how to keep a beat.  If you have those people in your company, let them go.  Once you have them though, trust that they can do their jobs and provide the right environment for them to thrive and to get into a groove.  When we were jamming in a band, we had to trust each other especially when we’re performing - focusing on our own role.

5) It’s all about rhythm.  Music wouldn’t be music without rhythm.  As human beings we have rhythm as well, a pulse, a heartbeat - without it, we are dead.  Business without rhythm is undisciplined, likely to be dead quickly.  What do I mean by business rhythm?  Do you have critical processes that help keep everyone aligned and accountable (board meetings, huddles, etc)?  How do you keep a rhythm of high energy (celebrations, parties)?  How about a communicative rhythm (investor updates, company updates) to keep key folks thinking about your business?  Keeping a regular rhythm helps you stay disciplined and accountable.

When a business is totally cranking, energized, and everyone is aligned - it is a real joy for everyone involved. One of my favorite rock stars, Bono once said “Joy is a subject I go on and on about. It’s one of the only emotions you can’t contrive. It’s impossible. Despair and anger are easier to convey. Great rock ‘n’ roll, the raw stuff, is pure joy. It’s that sense of being alive, of being grateful for your pulse.” I love rock ‘n’ roll, and like music I think great businesses can also bring real joy and fun for not only you, but everyone you come in contact with.

My friends Marcelo Calbucci and Jennifer Cabala were gracious enough to give away 1 ticket to Startup Day to a reader of InspiredStartup.  The event takes place this Saturday 9/25 in Bellevue and tickets run from $245-$395.  If you are remotely considering starting a company, this is a great event to attend with speakers like Dave McClure, Keith Smith, Ben Elowitz, and Hadi Partovi - all of whom I’m a fan of.  I’ll select one reader to give a ticket to - all you have to do is answer my simple question - what is the biggest hurdle for “pre-entrepreneurs” to start a company?  Feel free to comment below or link to your answer on a blog or tweet.  I’ll do my best to select the winner by Thursday AM.