Seldom logical | Peter Renshaw

Getting stuff done with nothing

2009-04-21T23:39:30Z

Quick Intro

I presented this quick talk to an audience at Trampoline on Saturday, 28th March, 2009. Before I started I read out a few key words and explained the format of the talk. You can also look at a manga version of the talk.

Hello, my name is Peter. My talk is called "Getting stuff done with nothing". Before I begin I'll tell you something about myself. My first computer was a ZX-80. I don't get out much and I haven't been to a meeting for a long time. I'm one of those Gen-X slackers, I went to school for almost 20 years and worked mostly in Startups and software. So you could say I'm a bit of an expert on the topic. Well at least one.

We (my brother, sister, her bloke, myself and a good mate) undertook two distinct operations. The first, Operation Genny. The objective: to deliver power in the form of a generator. The second, Operation Shutz. The objective to deliver clean water supply tanks up to 3000 litres with 1 tank capable of being put on a ute. We completed both. We had feet on the ground within 48 hours of the fire occurring for the generator. The water supply following some 2 weeks later.

None of this would have been possible if emotional sister and determined brother used speed to the fire zone within couple of hours. The reward, a pass to move through the police road blocks. Had it not been for this quick thinking. Nothing we planned would have come to fruition.

Getting stuff done with nothing

Why is it that some individuals adapt to change faster than others? How is it that people with no authority, few resources can make such a difference? The ideas I want to explore has its roots in the slow decline of volunteering, the unfolding financial crisis and the 7th February 2009. A day we now know as Black Saturday. How do you avoid sabotaging yourself trying to help?

How do you get stuff done, with nothing?

Black Saturday

It was 46 degrees that day. I'd thought about going to Dads about 60 kilometers from where I live. But with a total fire ban and hot conditions I chose the pool instead staying close to home. It wasn't till I got home about six o'clock that evening that I got a call from a distressed sister saying Dad was fighting off fires at his property at Kinglake West and his phone was going flat. Later I got another call at around 8 o'clock to say the house had survived but he was still fighting. [0]

I was 60 kilometers away, it was getting dark so I drove to the nearest place I could see the range, snapped a few shots and uploaded them to Flickr. My brother and sister who lived closer shot up to Whittlesea trying to get into the fire-zone to help. Foolish maybe, but it was to have positive implications later. [1] I knew that if Dad survived the first two hours with house intact - as long as he kept his wits about him, he would survive. So I started planing, writing and collecting any information I could to see if I could help out further down the line.

49 days later

It's now forty nine days since the fire and work is still going on. A casual comment by a CFA volunteer on my Flickr account [2] suggested that for the next major fire a site might do exactly what I was doing - collecting information and acting as a clearing house. This was going to be initial idea for my talk. "How to apply technology and solve the communications and logistic problems" I encountered with the fires. Maybe it could be applied to other relief efforts. What about the recession? Could it help people who loose their jobs to re-train? Get new skills?

But thinking about it more, it turned out to be the wrong question to ask. I don't think technology is the problem. [3] I think the real problem is much more fundamental. I think it's people and how they tackle obstacles. I don't want to get bogged down in theory. What I want concentrate on something practical. How to apply some quick hacks that anyone can master in times of need.

1) Controlling emotion

Emotions effect the way we make decisions. Emotions come in many forms as we react to stress. Each person reacts slightly differently. Limiting your emotional reaction, lets you move forward to make decisions. It's a trait that only you can control. Some sort of control is an advantage over none. No control over you emotions can let fear control you. Fear is by far the most damaging emotion I can think of. Fear paralyses you into in-action. In-action is not only counter productive but it's also the fastest way to sabotage yourself. Fear is also contagious. If you are fearful, it has a nasty habit of rubbing-off onto others. I don't know the solution to avoiding or controlling fear but I do know you should be aware it exists. You should try to negate it's side effects. The better control you have over fear, the more effective you can be. [4]

2) Listening

How well you listen greatly effects any outcome to try to achieve. Not listening is one of the quickest ways to fail when you encounter external hurdles. Not listening you miss details. Details that could mean the difference between knowing what is required or taking a risk and guessing. A requirement achieved is a form of measurable success. Guessing simply wastes time. If in doubt ask someone "on the ground". They know things you don't. Listen now and you save time and effort later.

3) Mindset

If you have a rigid mindset. If you cannot adapt quickly enough. You risk not only failing to achieve the things you set out to do. You will also be susceptible to blunder. A blunder is when the action you take, results in a worse situation than when you start. Blunders have many causes. But the most likely culprit is a fixed or rigid mindset. Mindset is the combined effect of "how you react emotionally to current events" and "the decisions you make as a result". So ask yourself. "Are you undermining yourself because you have a rigid mindset?"

4) Empathy & imagination

Can you walk in the shoes of another person? Can you identify their problems and solve them? Empathy and imagination are an effective antidote to blunders, rigid mindsets and cognitive traps in thinking. [5] Don't just try and blunder your way through a solution. First put yourself into the situation you are trying to improve. Then use your mind to to project how you might make the current situation into a better or best situation. [6]

5) Communication not Info-mania

An "info-maniac", is someone who misuses information. If you hold onto information, shun or avoid the source or nature of information. You are self sabotaging yourself. You need to collect enough of the right type of relevant information. Don't worry about the having too much information. You will be surprised what people might be looking for or find. [7] Working as a team has its own challenges. When communicating to more than one person make sure they have the right mindset and ensure they are communicating together to get the job done.

6) Thrift and resources

Up till now, the focus has primarily been on the how. Little thought has been given to cost. If you have few resources and need them quickly it is up to you to work out how important they are. Weigh the costs of buying verses loaning. Don't buy if you can help it. The time honoured "Beg, borrow and ask" works, well some of the time. A simple solution is to hack what you already have and see if it can fit the purpose. A roll of fencing wire and duct tape may work wonders, but not miracles.

This is where you have to get creative. A good resource can be friends or people you know. It may even be complete strangers. In some cases you will have to pay cash. Before you do check with people on the ground if they really need this item. If you pay cash it might be better to accept a higher price for a receipt instead of trying to negotiate a discount. This avoids disputes. Pay a bit more to avoid potential conflict. [8]

7) Speed

We are often told to do things "fast". But saying and doing are two different things. Where do you start? Well start at the basics. The basics of life are "food", "water" and "shelter". So for a given situation concentrate first on the basics. Be able to say with certainty you have reliability. Day in, day out. Every day. Speed is also about getting real results without wasting unnecessary time and resources. Any lack of the above qualities will hinder your efforts. So I think the measure of speed is about delivering the basics. Then using a combination of listening, empathy and imagination you can move your way forward.

But speed alone isn't good enough.

It's a constant. What you really want is acceleration. What forces can you use to increase the accelerate the rate you do things? Well the answer to this and a potential road-block is probably a more information, not less. Collect enough information on problem at hand and you get a data glut and as long as the relevance of the information is high someone can probably find the right information. The trick is then to get the right people to take notice.

We got "feet on the ground" to Dad in less than 48 hours. Delivering a generator and essentials. Yet I was shocked took another 48 hours for support teams to touch base in Flowerdale a mere 26 kilometers further north. [9] This changed quickly when Pete William started writing the "helpflowerdale" blog. Things sped up when the information flow, sped up. [10]

8) Search for simplicity

KISS or Keep it Simple Stupid. Easy to say, much harder to do in practice. The advantage of simplicity is it helps keeps you focused on what is achievable. Focusing on simple outcomes is also cost and time effective. Complex things consume resources. How do you find simple solutions in real-life complexity?

I have no real answers. But I did get a few valuable insights trying to work out how to solve the problem of water. After the fires, I knew delivering the basics was going to be a big problem. And the most important basic is water. But how do you source, deliver and maintain a clean water supply more than 60 kilometers away?

How did I simplify the problem? Well first I had the right mindset. I knew in the middle of summer in remote areas that damaged water tanks, no pumps and when the power is down there will be no reliable water. I also knew speed was of the essence. The simplicity hack I applied was knowing that water being a basic was required quickly. I confirmed by ringing up people on the ground that water storage was a problem. Then spread the news around this is what was required. It just so happened that other people where already thinking along the same lines pre-warned because of the information I spread, "empathised" and offered help. The actual situation itself is complicated and I couldn't tackle this problem myself but I got a call from a good friend who is an expert in logistics and just happened to have a water solution in the form of a Shutz. By chance I also got access to various forms of transport.

Is this a case of good luck or searching for a simpler way? I'm not sure. I do know that by knowing this was a priority and using resources I secured the water containers and got them delivered. [11], [12]

9) Follow through, re-evaluate

What you start you finish. Don't leave loose threads. Then quickly re-evaluate. Do you really need to continue? Communicate together. Is someone else doing this? Check with someone on the ground again. Then continue. If you promise to do something, do it. No one else is going to do it. It is up to you.

Are you going to let your mates down?

10) Motivation, "the mongrel factor"

The final personal quality is how much of the "mongrel factor" you have. No, it has nothing to do with "Blue Heelers" (the TV show) [13] but the mongrel breed of dog. How hard do you "snap" and "snarl" [14] to extract that last 5 percent effort required to complete a task? The difference between those who give up and those who succeed can partially be explained to how hard they are willing to push themselves. [15]

The future of Volunteers

I don't think technology alone can solve the types of problems. You need intelligent application of technology. Instead we should look at how we as individuals respond using technology to amplify results. I also saw a complete change in community attitudes to 'volunteering'. Before the fire, volunteering was a dirty word. After the fire people felt guilty not helping.

The fires may be over. But your chance to make a difference begins now. Black Saturday might be the fractal training run for the current recession. Lots of people, young people especially are now going find themselves without the opportunities to work and no path to improve themselves.

What are YOU! going to do? Are you! (point to individual) going to let your mates down?

Reference

[0] Bootload, flickr, "You can read a summary and view pictures of the fires first hours here", [Accessed Thursday, 26th March, 2009] http://flickr.com/photos/bootload/3260244634

[1] We (my brother, sister, her bloke, myself and a good mate) undertook two distinct operations. Operation Genny: objective to deliver power in the form of a generator. Operation Shutz: objective to deliver clean water supply tanks up to 3000 litres with 1 tank capable of being put on a ute. We completed both. We had feet on the ground within 48 hours of the fire occurring for the generator. The water supply following some 2 weeks later.

[2] miniopterus, Flickr, "I should have said, good job tracking the events. I imagine that next time we have fires, we might see something similar to your Flickr diary.", http://flickr.com/photos/bootload/3298613958 [Accessed Thursday, 26th March, 2009]

[3] To technologists who forge and yield hammers every problem can appear to be a nail. In this case I don't think a technology solution is applicable as tackling how people deal with decision making. You need intelligent application of technology. Instead we should look at how we as individuals respond using technology to amplify results.

[4] Fear is there for a reason. Men may perceive women to be inferior when it comes to emotion. But like the second law of thermodynamics, all that built up emotion is going to leak out some time in the future. So in the long run, I think women have an edge over men dealing with emotion. But in the short term it is men who edge women out with self control. There is a downside here. Apply too much control and you might emotionally overheat and become brittle when you cool down leaving yourself open to cracking. Hard objects become brittle and crack under stress.

[6] google, "enter 'from: kinglake west to: Flowerdale VIC, Australia' and view the maps tab. This reveals the distance from Kinglake West." [Accessed Friday, 27th March, 2009]

[7] ITConversations, Tech Nation, Zachary Shore, "Why Smart People Make Bad Decisions: Professor, Naval Postgraduate School" http://itc.conversationsnetwork.org/shows/detail4007.html [Accessed Friday, 27th March, 2009]

[8] Sourcing the Shutz (ruggised 1000 Lt, portable water container) I negotiated a price by quoting a friends name in cash. Then I get a phone call asking for more money. A quick call back to my referring mate sorted this out. But had I got a receipt I could have avoided this. In the end it worked out. But the risk was there. You can read more about sourcing the Shutz here: http://www.flickr.com/photos/bootload/sets/72157614178152108/ [Accessed Friday, 27th March, 2009]

[9] google, "To find the distance from Kinglake West to Flowerdale enter 'from: Kinglake West to: Flowerdale VIC, Australia' into google and click the maps tab.

[10] Pete Williams, blogspot, "Flowerdale - Survivor Spirit", "A cry for help from the forgotten people of Flowerdale" "... The final straw for my sister in law came at 6.00am today (12/02/09) when those left fought to save one of the remaining houses that caught on fire overnight. They fought with no water, no fire trucks and no support from the Army that was in the area. They lost the fight. ..." http://helpflowerdalenow.blogspot.com/2009/02/cry-for-help-from-... [Accessed Friday, 27th March, 2009]

[11] bootload, flickr, "flickr set: 'Shutz IBC 1000L' where I order and collect the Shutz water tank" http://www.flickr.com/photos/bootload/sets/72157614178152108/ [Accessed Friday, 27th March, 2009]

[12] bootload, "flickr set: 'Eltham to Kinglake West' where we deliver the tanks" http://www.flickr.com/photos/bootload/sets/72157614178001242/ [Accessed Friday, 27th March, 2009]

[13] IMDb, "Blue Heelers, The Mongrel Factor" http://www.imdb.com/title/tt0527723/ [Accessed Friday, 27th March, 2009]

[14] Australian Sports Commission, "Participating in Sport: Predicting sports suitability", "... Coaches who observe such testing sessions are assessing the "mongrel factor" which athletes show a doggedness to continue when the test becomes hard?" http://www.ausport.gov.au/participating/got_talent/overview/pred... [Accessed Friday, 27th March, 2009]

[15] Simon Britton, "Mongrel Nation", http://culturenow.com/site/item.cfm?item=24814 [Accessed Friday, 27th March, 2009]

For Andy, James, Kev, Mum and Trace. They know how to get things done with nothing. Thanks Trace for reading the article and advising on the talk.

Banking on a Startup loan?

2009-02-06T04:00:42Z

Would you think of using a Bank as a source of credit for your Startup? This idea surfaced recently on the Silicon Beach Startup[1] newsgroup. Why?

Why is this question being asked?

Funding for Startups is a hard problem. The task of securing funding involves both time and effort. A distraction from the task of creating. Why is raising capital so difficult? One word, risk. New companies without a financial track record are unknown quantities. Avoided by all except for the most adventurous of lenders. [2] First-time finance is to Startups what drink-driving is to newly licensed drivers, trouble. [3] For inexperienced Entrepreneurs, even searching for funding is an alien skill. New Startup founders show about as much skill in hunting for finance as 21st century man suddenly thrust back into early Africa. Hungry for food, they sometimes see prey, but have no idea how to trap and kill it, let alone know how to look for spoor. A Bank loan may look like an easy kill. But inexperience has it's downside where knowledge means survival. A lack of the right kind of knowledge can mean a quick financial death.

Harsh financial environment

Founders also have to contend with harsh environments a partial product of local conditions. Geographic location, culture and business climate all play their part defining the quality and sophistication of funding. If you happen to be lucky enough to live in the Amazon Jungle equivalent of finance, Silicon Valley, finance is difficult, but the money is there. If you live in Australia, the financial equivalent of a desert, finance is almost impossible because money is scarce. [4] So the act of questioning all potential sources of finance strikes to the heart of the local funding problem. Asking the question, "What do people think about NAB's young entrepreneur program?" makes absolute sense.

Why are Banks lending now?

"... NAB's Microenterprise Loan for Start Ups - Learn more about a Melbourne Florist whose business is blossoming with the help of a NAB's Microenterprise Loan ..." [5]

The real reason I think Banks are targeting non conventional companies right now has less to do with "social justice" [6] than traditional higher yield customers shedding debt. [7] Debt is now a four letter dirty word in business circles and Banks know it. Banks still have to invest money and small business at the moment, with its lower finance requirements are probably the only types of companies that might show promise of growth. With growth, profits may follow. What is a Startup? Startups come in many different shapes and sizes, are they all the same? What kind of Startup are we talking about?

What kind of Startup?

The idea to "start up" a traditional small business say a hair dresser, a book keeping firm or newsagent is not the same as "Starting up" a new technology based company like Google did or Scribd is in the process of doing. [8] The definition of a Startup for someone not working in technology appears to be a woolly interchangeable label applied to any entrepreneurial or small business activity. By contrast, technology Startups are made up of two essential ingredients, new ideas and technology with the caveat of smart people working at the core. What makes technology Startups different and so appealing is the idea that not all Startups are born equal. Not all Startups are born equal because small teams of smart engineers, can aggressively attack hard problems to create new technologies, productively. Technology Startups have the advantages of leverage and barriers of entry, that traditional small business can never emulate. [9]

When Corporations shed staff and shrinking economies weed out financially weak businesses, more people are exposed to the idea of combining new ideas, risk and effort for profit. Creating wealth at the forefront in peoples mind. But the language used to describe the mechanism to create wealth is still playing catch-up. How do Banks describe such activity? Banks like to use loosly defined, catchy words like "Young Entrepreneur", "Start Ups", [10] "Micro Enterprise" and pepper their documents with terms like ENYA. [11] But don't be fooled by the MBA-speak. Indecipherable terms describing what is really a simple set of ideas.

How not to fund Startups

So lets get back to the problem of Entrepreneur funding and Startups. I'm not going to explore "How to fund Startups" because the existence proof has already been written up. It also comes with the added benefit of dozens of "guinea pig" technology companies field testing these financial hacks, real-time. [12] I'm more interested in why "taking money from a Bank is not the best way to fund your Startup". To illustrate this idea, I went through the documents supplied by the Bank [13] and conducted a quick "thought experiment" into the potential dangers you might face.

The three Amigos of funding

In this "fictional scenario", you the founder are put into a room with three potential suppliers of finance. You have to decide which is the best source of finance for your Startup. For the lender, the job is to determine the risk to return ratio. Are you worth it? Lets start. First there's John, formally dressed and business-like. A representative from the local "Big" Bank. Next is "Fat Tony" the local "loan shark". Immaculately turned out in an expensive foreign suit. [14] Finally Joel, a successful technologist turned Angel Investor. Casual in both dress and manner.

John breaks the ice...

JOHN "So I hear you are interested in the 'Microenterprise Loan for Start Ups' our Bank is offering?"

FOUNDER "Yep. Funding is so hard to do. Where do you start?"

JOHN "Lets go through the steps required. Are you eligible for 'ENYA'?"

FOUNDER "That Celtic singer my mum listens to in the car?"

JOHN "No, the 'Enterprise Network for Young Australians'?"

FOUNDER "'Shite... thinking to self, 'MBA speak'. Danger Will Robinson... Danger!"

JOHN "Tell me about your 'Microenterprise'. Do you know Where your customers come from? Who they are?"

FOUNDER "Yes, no idea."

JOHN "Do you have a reliable and steady income stream?"

FOUNDER "Ramen profitable just this week."

JOHN "Ramen profitable? Is that a global economic indicator like the McDonalds Index?"

At this time both Fat Tony and Joel have been silent. Then Tony pipes up...

FAT TONY "Suit-boy over there is going to... how shall we say, 'compromise your dignity', filling out forms and jumping through unnecessary layers of bureaucratic hoops."

FOUNDER "Forms, hoops... compromise?"

FAT TONY "We on the other hand at the 'Legitimate Businessman's Social Club' have less formal requirements. No forms, just a quick shake of the hand and a big bag of cash. We pride ourselves in only getting involved in your business if you fail..."

Fat Tony pauses for dramatic effect...

FOUNDER "What? Broken knee-caps, knuckle dusters?"

FAT TONY "No. We are strictly legit. We do everything a Bank does - take all your worldly good and possessions, but over a short-black and some Penne al'arrabiata." [15]

FAT TONY "John and the 'Big Bank boys' on the other hand want you to self assess, be Australian, young and take a minimum of 5 monkeys up to 20G's. Wait there's more, not to be a bankrupt"

Becoming increasingly annoyed, John replies...

JOHN "Hang on Anthony. To be absolutely correct, that's only stage one of four. First you have to talk to ENYA, devise a business plan in conjunction with our fully trained business advisors.

FAT TONY "... and listen to their advertisers, I mean advisors for 12 months."

JOHN "Every thing hinges on the business plan and any support issues we identify. You cannot progress to the 'Loan assessment interview' until we have the plan and support letter."

FOUNDER "You mean there's more? ... just for 20 gorillas?"

JOHN "The terms are pretty generous. An unsecured loan from as little as $500 up to $20,000. An interest rate of around 9.95%, a three year repayment period and 90 days interest free."

FOUNDER "The interest rates are pretty high. Can I spend it as I see fit? Can I get GuitarHero for the team? What if I fail?"

JOHN "Thats why we pre-screen you. You have to follow the process. Most of it's online but..."

FOUNDER "So I have to waste my time with some crappy online application, then attend meetings?"

JOHN "No ENYA, no business plan, no support letter, NO Finance."

FOUNDER "But that will take too long. I need to build the product now. Not next week, month"

JOHN "The process will take some time to approve."

FOUNDER "What? Do any of you blokes create, code?"

JOHN "IT? no we outsource all that kind of typing stuff. Bottom line and all that..."

Pregnant Pause as the reality sets in...

FAT TONY "Tell 'em about the interview John. Tell 'em about what happens if the founders don't meet the conditions you'll roll them over to a business loan..."

JOHN "Well there is the final hurdle to make sure your not getting into a worse position. You are taking out a loan. We need to ensure, check, access, confirm, search. We have to be careful and do our due diligence."

FOUNDER "So let me get this right. I have to assess myself, go through ENYA, business plan, go through a loan assessment and all I get is access to a lousy business loan from a Bank?"

Fat Tony "Johnny. It's a pity you didn't do you the same due-diligence on all those housing loans."

John "Look who's talking. I see your business associates taking a hit."

FAT TONY "A Hit?... You and your firm thinking on taking a contract out on me?"

WHACK, WHACK, WHACK, WHACK, #$@$, THUMP...

Some time later the ambulance leaves with John. Fat Tony is speaking to the local Police. Joel speaks for the first time.

JOEL "How about if I make you an offer over some coffee. You've been recommended by colleague at 'The HIVE'. I've use your App. It's the best in the market. I've seen the changes you made with user feedback. Growth looks good."

FOUNDER "You mean no ENYA, no MBA speak. I don't have to eat meatballs at the Social club on Wednesdays?"

JOEL "I've been where your going before. Are you 'Ramen profitable' yet? [16] I'm a hacker/founder made good. I mostly do strategic investments, Angel stuff. Even though the market has crashed I'm still on the lookout for Startups that have potential and are starting to make money. [17] Shhh."

FOUNDER "Mums the word."

Back to reality

Letting a Bank evaluate your idea, bash out a business plan and then audit your finances might be financially prudent from the Banks point of view. But predefined strategies like business plans hinder Startups more than they help. Time bound, rigid processes punish fast moving Startups, crippling the advantages they have over normal business. [18] Startups need flexibility. Is it really worth your time to be told you by a Bank, you are too young or too old? That your business plan needs working on? Only to be offered a business loan if you fail to meet their set criteria?

Startups have different financial needs

Do you expect Banks to understand that the idea you propose is a question, not a business plan? A starting point that evolves over time from listening carefully to what customers want and willing to pay for? Limited funding opportunities and the lack of Angel investors who understand and fund technology, hamper local Startups. But short of uprooting to Silicon Valley, the most sophisticated funding environment in the Startup world, the best Startup financial hack is still to build a demo, release it informally to users and continually modifying your product to make what users want... and will pay for. Then hit the local Startup events with your demo. Tell by showing.

Ramen profitable?

Are you "Ramen profitable" yet? If not, get "ramen profitable" fast. Be frugal. If you can get away without borrowing funds, all the better. If you can't, find alternative sources of finance. [20] If your idea flops, or if you can't make any money or simply fail, you avoid serious debt. Avoid debt. [21] Especially at a time where the costs to execute an idea and informally introduce it a community of users are at an all time low. Needing money from anybody other than your customers also weakens your position as an Entrepreneur in future negotiations. And it's not like Banks are currently the best at evaluating financial risk. Just think sub-prime.

References

[0] Silicon Beach Australia, "An online discussion list to 'create a more unified supportive Australian Information, Communications and Technology sector.'
http://SiliconBeachAustralia.org

[1] Elias Bizannes, "Is 20k from NAB a good idea?", Silicon Beach Australia.
http://groups.google.com/group/silicon-beach-australia/browse_thread/thread/248cd19e3dbc66b4?hl=en
[Accessed Wednesday, 21 January 2009]

[2] Banks requesting Startups to demonstrate financial stability pretty much kills any idea of investment to Startups. The risk of not knowing if the original loan can be repaid is simply to great. This didn't stop Banks lending 100% finance to home owners on the assurance they have a mortgage on properties. Even if the property is over valued. For this reason alone I think the current risk analysis industry is to some degree broken.

[3] Dave McClure, "Great Entrepreneurs are PASSIONATE about Customers & Products, NOT about being Great Entrepreneurs", I got this idea from Dave McClure where he talks about first time Entrepreneurs: "first-time entrepreneurs are just as friggin' dangerous as drunk teenagers behind the wheel of a speeding automobile". The description is apt.
http://500hats.typepad.com/500blogs/2009/01/great-entrepreneurs-are-passionate-about-their-customers-products-not-about-being-great-entrepreneur.html
[Accessed Wednesday, 4 February 2009]

[4] The funding pipeline for Startups in Australia is much less understood and clearly defined than Silicon Valley. Thats why events like, "The Hive", http://www.thehive.org.au/ and "Silicon Beach Australia", http://siliconbeachaustralia.org/ are so important. They act as a ground up movement to funding as apposed to top-down "The Churchill Club", http://www.churchillclub.org.au/

[5] I was worried that I was confusing the term, "Entrepreneur" with "Startups" but I found reference to the term on the Banks own site. So I think I'm on the right track. Here is an example of the NAB (National Australian Bank) using the term, "Startup", http://www.flickr.com/photos/bootload/3214408943/ And another example while randomly reading up on US based small business classes http://www.flickr.com/photos/bootload/3214408947/. In the images, notice the misapplication of business terms.

[6] NAB (National Australia Bank), "Young Entrepreneurs", "... NAB's partnership with ENYA is recognition that an organisation which supports and promotes the active participation of young people in enterprises is the best way to reach young entrepreneurs. ..." is The NAB claim but read in conjunction with "... NAB's partnership with ENYA is recognition that an organisation which supports and promotes the active participation of young people in enterprises is the best way to reach young entrepreneurs. ..." it reads more like marketing.
a) NAB , Young Entrepreneurs
http://www.nab.com.au/wps/wcm/connect/nab/nab/home/about_us/4/3/2/2/
[Accessed Wednesday, 4 February 2009]
b) NAB MicroEnterprise Loans, Young Entrepreneurs (18-29 Years)
http://www.nab.com.au/wps/wcm/connect/f95aac004bc636b1818e932345045098/MED_young_entrepreneur.pdf
[Accessed Wednesday, 4 February 2009]

[7] ABC News, "Figures show Australians continue to shed debt"
http://www.abc.net.au/news/stories/2009/01/19/2469106.htm
[Accessed Tuesday 20 January, 2009]

[8] The greatest source of confusion is the use of the term Startup in what is two entirely unrelated fields. To label a dog-washing firm a Startup might be technically correct but it misses the point. The greatest gains are made by technology Startups because of the way new technology is adopted. Not because of some arbitrary label. Another source of confusion I see is non technology Startups mimicking every Google business practice in the hope they will somehow replicate Google's growth. Google is far past it's Startup stage but Scribd shows the type of growth possible in technology Startups. TechCrunch, Erick Schonfeld, "Scribd Had A Blowout Year, And So Did the Web Document",
http://www.techcrunch.com/2008/12/31/scribd-had-a-blowout-year-and-so-did-the-web-document/
[Accessed Tuesday 3, February, 2009]

[9] Technical Startups have better leverage than small business because they create new technology. The leverage comes from lots of people using the technology. Business not creating new technology miss out on this leverage and the wealth it generates. A good article to read (and one I re-read) to help explain the relationships between Software Startups, small teams, hard problems and wealth can be found in "How to Create Wealth" by Paul Graham. Read the section on "Technology = Leverage".
http://www.paulgraham.com/wealth.html
[Accessed Thursday 22, January 2009]

[10] I was worried that I was confusing the term, "Entrepreneur" with "Startups" but I found reference to the term on the Banks own site. So I think I'm on the right track. Here is an example of the [Big Bank] using the term, Startup. http://www.flickr.com/photos/bootload/3214408943/ Here is another example I found randomly searching for US based small business classes http://www.flickr.com/photos/bootload/3214408947/. Notice the confusion of business terms.

[11] ENYA stands for 'Enterprise Network for Young Australians'. It's also a name for a Celtic singer
a) http://www.enya.com/
b) http://en.wikipedia.org/wiki/Enya
[Accessed Tuesday 20 January, 2009]

[12] Paul Graham, a) "The Hackers guide to Investors" and b)"How to fund a Startup". Both articles provide ample evidence on how best to fund your Startup. The only complaint is the location bias. If you are not in Silicon Valley your chances of funding are reduced. However a word of caution. The ideas suggested are not a perfect solution to funding but more of a clever-financial hack. Like all hacks they are subject to failure. The experiment is still underway and funding results may change in the recession market. In fact the latest change to c) "Make something users want" is "... to pay for".
a) "The Hackers guide to Investors"
http://www.paulgraham.com/guidetoinvestors.html
b) "How to fund a Startup"
http://www.paulgraham.com/startupfunding.html
c) "Paul Graham, YCombinator recommends Startups make something people want... to pay for"
http://startup2startup.com/2008/11/25/paulgraham-ycombinator-recap/
[Accessed Tuesday 3, February, 2009]

[13] I downloaded and went through the following documents:
a) NAB MicroEnterprise Loans, Young Entrepreneurs, Ibid.
b) NAB Terms and conditions (PDF, 332kb)
http://www.nab.com.au/wps/wcm/connect/c1edfc804bc6170eb56fb72345045098/NAB_Microenterprise_Loan_Terms_and_Conditions.pdf
c) NAB's minimum requirements for a business plan (PDF, 256kb)
http://www.nab.com.au/wps/wcm/connect/ec5af5004bc61a4182bf932345045098/NAB_minimum_requirement_for_a_business_plan.pdf
d) NAB Microenterprise Loan Application Form (PDF, 249kb)
http://www.nab.com.au/wps/wcm/connect/e4ebe8804bc60dbf98e79b2345045098/NAB_Microenterprise_Loan_Application.pdf

[14] Fat Tony, "Fat Tony is know by various aliases as William 'Fat Tony' Williams or Anthony 'Fat Tony' D'Amico, even Marion."
http://simpsons.wikia.com/wiki/Fat_Tony
[Accessed Thursday 22, January 2009]

[15] BBC Food, Penne al'arrabiata, "Penne al'arrabiata ia pasta with a tomato and chilli sauce"
http://www.bbc.co.uk/food/recipes/database/pennealarrabiatapast_83813.shtml
[Accessed Thursday 22, January 2009] [16] Events such as "The Hive" Ibid. and online resources such as "Silicon Beach Australia" Ibid. allow informal introductions than attending more formal VC/Angel events such as "The Churchill Club", Ibid.

[17] "Ramen profitability" is the ability to (barely) cover living expenses from your Startup revenue. The idea is a play on the idea of spending so little you eat nothing but "Ramen Noodles". The idea was originally described by Paul Graham in "A fundraising Survival Guide",
http://www.paulgraham.com/fundraising.html
[Accessed Tuesday, 3 February, 2009]

[18] New York Times, "Claire Cain Miller & Brad Stone" "Angels Flee From Tech Start-Ups"
http://www.nytimes.com/2009/02/03/technology/start-ups/03angel.html
[Accessed Wednesday, 4 February, 2009]

[19] Rigid processes punish fast moving Startups, crippling advantages they have over normal business because they restrict speed and flexibility, ie: the ability to create new technology by working in small fast teams on hard problems and profit levering new technology.

[20] Paul Graham, "How to fund a Startup", Ibid.

[21] You might be able to do this working on an obscure idea but if you are in a race to build something where the idea is already in the public domain, your competitors might accelerate past you with the aid of funding.

Fat-free data alternative

2008-05-13T15:11:05Z

Ambition
Last year I finished up running a BBQ for a local sports club. Four years of Saturday morning planning and preparation. [0] Wake up, pack my kit. throw it in the car and drive to the local oval oval. Then ready myself and a volunteer team to prepare and cook. And cook we did. From early in the morning we cooked Hamburgers, plain and with the lot. If customers didn't want a Hamburger then it was hand-made sausages from a great local butcher. We worked like dogs from nine in the morning till two o'clock in the afternoon. From the cool mornings of spring through the heat of summer. Preparing, cooking, selling, cleaning up. Repeating this pattern until we either ran out of food or time. Effort paid off and we made more money than we spent. [1]

The next year we got a bit more ambitious. Enthusiastic after a long break we decided to add a raft of new additions to the menu. Bacon and eggs until we run out. Usually before 10 o'clock. Hamburgers with the lot would now include onion, bacon, cheese, lettuce, tomato. You could even order pineapple and beetroot. Instead of plain sausages you could choose from spicy Italian, beef or plain. Nothing was too much trouble.

Complication
Then an unexpected additional constraint. We moved venues. Changed days from Saturday to Friday. Now instead of mornings we had twilight. Instead of feeding people who skipped breakfast, we are feeding people coming home from work, hungry.

Nightmare
Right about then we, I should have realised it was not going to work. We created our own twilight zone. A nightmare combination of heat, fading daylight and hungry crowds. I'm pretty sure if Chef Gordon Ramsey [2] was to pop in, it would have gone something like this ...

GORDON So Peter. I finally got some of those sausages. Great stuff. Local produce, plenty of onion, selection of sauces. Then I had a Hamburger with the lot. Well cooked. Cheese under the meat. Good meat. Lettuce, onion, eggs. I noticed you'd even put beetroot on the menu.

PETER We are working our legs off but everyone wants their food now! (So far so good. He didn't order the pineapple? Hope he didn't notice the wait. It's an awfully long queue!)

GORDON These bl@@#! people haven't been served? Why? Customers, customers, customers. Service is too slow. You're loosing customers to the F@$!#% re-heated dim sims and Hot Dogs over there. Talk about going to the dogs ...

PETER We're being slammed ... (We are pro's. Everything under control. Too many customers at once)

GORDON Why did I wait a bl@@#! hour to get a F@%$#! feed? It's too complicated. Simplify the F@%$#! menu. Reduce the load on the cooks and service staff. What do you think?

PETER Ahhh, "yes Chef" ... (Oh he noticed)

So what just happened?

We made what customers wanted. The price was right. We made a good profit. The consumables, high quality. But I made a classic mistake. The overly complicated menu with it's combinations and additions was not workable. The front-end was stressed taking weird orders. The back-end cooks could not keep up with demand. Hungry customers waited in winding queues. Add to this a change in venue and increased demand. Chaos reigned. The menu was too complicated. Unsustainable.

GORDON Now what I suggest is. Stream-line the menu. Cut the extra Hamburger additions. Let the customers have the cheese, onions. But for F@%$#! sake, get rid of the beetroot and pineapple.

And so we did. As soon as we simplified the menu, the stress disappeared. The simplified ordering made it easier. We still had the crowds. We sold even more, made more money and sold out early.

Simplify
What has this got to do with technology, software and making product? Well, I've been doing some research for a new product I'm working on. I want users to have the power of access to their data. But before today, I fell into the complexity trap I just described above. I'd forgotten the hard earned lessons of simplicity.

Make something users want
Maybe it was because it was dinner time and the smell of the Sunday roast bought back memories of those sausages and hamburgers on the BBQ. A more likely reason was the article I happened to be reading at the time by the "Gordon Ramsey of the programming world", Douglas Crockford. The paper compared the merits of encoding data in JSON to XML. [3] Reading the article I realised my stupidity. I could still give users access to their data. But without spending the extra three months working on a "ground breaking" standard to achieve the same aim. Earlier in the day I had also read how the Microformat design process really works. [4] The only way standards succeed in the open source world is through a consultation process. Preferably with users who know through experience what problems they face. How can you solve users problems if users themselves are left out? Skip a step. Make a mistake through lack of consultation or insight and failure will follow. Worse still, you might be trying to solve a problem that does not exist. So to I'll repeat it again. If you want to build a standard the right way make sure you at least look at the recipe of successful standards. A recipe something like ...

problem statement ----> research/discussion ----> proposal/draft ----> standard [5]

The standards cooking process takes time, effort and participation. But the outcome is worth it. But I don't have the time to build a standard. I don't even know if users really want it. Once I realised I was biting off a bigger problem than I could solve. I quickly simplified my approach. Why not kick out the complicated XML, DTD's and schema's? Why not give users access to their data without the cruft?

GORDON So Peter. I've been away 3 months now. How's the choice of technology going? Has it worked? Will it move your product closer to demo?

PETER We've stuck with the much simpler JSON instead of the complicated XML schema. The users will be happier because they get the data they want without the extra fat. I'm happier because it means I can get on with building the product instead trying to build a standard nobody will understand, use or want.

GORDON Well that's gone down well. Simplifying the technology means it's lighter, with a faster development time. Customers still get to edit their data. I'm really impressed with the flexibility in thinking. Developers can use JSON libraries with lots of other languages allowing them to build their own data processing tools. F@%$#! me. I think it's the smartest choice because, "While there are transformations which allow XML to express these structures, JSON expresses them directly"! [6]

So I chose the "Fat-free" technology alternative. JSON instead of XML. Giving users direct access to their data not some overly complicated format.

References
[0] I twittered about my last day. Looking back it was a lot of work: "After three years, 22 meets per year, I've sourced, moved, cooked (along with others) approximately 660Kg snags (sausages), 3,300 hamburgers, 3960 buns, 10,560 slices of bread, 132 Kg bacon, 42 tins of beetroot, 132 Kg of onions, 3,200 slices of cheese, 44 lettuces, 66 Kg of tomatoes, 70 litres of tomato sauce and approximately 2000 eggs. It's getting a bit rough. I've only missed 2 meets in 66."
http://twitter.com/bootload/statuses/9910271

[1] The idea behind doing this was simple. With some resources, a bit of effort make something and sell it to people and see what happens. I made a lot of mistakes. Had some success.

[2] It's interesting watching the slew of Ramsey shows on TV. It shows the step up required from technician to entrepreneur.

[3] json.org, Doug Crockford, "JSON: The Fat-Free Alternative to XML" [Accessed Wednesday 14 May 2008]
http://www.json.org/fatfree.html

[4] Microformats.org, "So you wanna develop a new microformat?" [Accessed Wednesday 14 May 2008]
http://microformats.org/wiki/process

[5] Microformats.org, "So you wanna develop a new microformat?", Iterate, et.,al.
http://microformats.org/wiki/process#Iterate

[6] This is great quote lifted from the "JSON: The Fat-Free Alternative to XML". There is a postscript. I posted the article to HackerNews and had a nice discussion on the merits of JSON vs XML.
http://news.ycombinator.com/item?id=187124
A couple of days later this article, "XML: The Angle Bracket Tax" at Coding Horror appeared. No "angle bracket tax" here.
http://www.codinghorror.com/blog/archives/001114.html

colophon

2008-05-10T06:46:30Z

Rationale

I have previously described how I named Seldomlogical. I'm going to quickly discuss the technology behind it. The codename for this project is nextgen [0]. It has a few simple aims:

Data is more important than the technology
Let me save all that data I enter into the web
Allow raw data to be exported as feeds
Give me back control of my own data
Where possible use my own technology

So while the technology may have changed the data remains in re-usable formats that I control. Enough of the ideas what about the technology?

Technology

The latest incarnation of nextgen is built using:

Python [1]
Webpy [2]
Google App engine [3]
data is stored using Datastore api
admin authentication using google Users api
Feeds are valid Atom 1.0 [4]
Feed syndication is via Feedburner
Templates are XHTML Transitional [5]
The valid css is homegrown, based on this article [6]
Images are from my flickr site
The sitename and byline are discussed here
Inspired by Bret Taylors appengine blog [7]

I have been hacking python, webpy, django for quite a while but unable to get code working with a host. That is until appengine. I signed up in the first 10K users in the preview release. A bit of hacking, a domain name, the rest you can see. The simplicity of nextgen means there is no real compelling reason for me to show how. [8] Access to the data is more important.

Reference
[0] I have been thinking and hacking on this problem for a while. You can read more about nextgen here http://flickr.com/photos/bootload/sets/72157600015450188/

[1] You can read more about my Python hacking here http://flickr.com/photos/bootload/tags/python

[2] Using webpy as a development server was a no brainer. Googles appengine is based on webpy and webpy has less moving parts than Django. You can read more about my webpy hacking here http://flickr.com/photos/bootload/tags/webpy

[3] Google appengine has just changed the face of web hosting. Consider the costs. At the moment it is free but shaped. Now if I was to get a host in Australia that could a) have a python account, b) work with webpy it would be in the order of AUD$500 to $1000 dollars per year. Domain name and email hosting another $100.

[4] The Atom 1 feeds are valid. I am also adding meta-data into the feeds. For example geospatial information in the form of geo.lat, geo.lon per Atom.item. The intention is to add useful meta information for general consumption. More so than the marked up pages. The data is more important than the presentation.

[5] The templates are valid XHTML transitional.

[6] maxdesign: CSS Centering - fun for all!, http://www.maxdesign.com.au/presentation/center/

[7] In the article Bret explains how the appengine is based on Webpy.

[8] Teh, the minimal blog is written by Pradeep Gowd using Google appengine technology. The source code can be found at http://github.com/btbytes/teh/tree/master

Seldom logical

2008-05-13T15:33:22Z

I live in a nice home. My web equivalent is not so lucky. Nothing more than a cardboard box lying in a muddy ditch in the middle of the road. It's time to name a new home.

I guess I could do the logical thing and use my own name. Ask yourself, "is naming a site after yourself the only way others can find what you create? How many times have you read something and successfully located it the next day? Next week, next year?" You could wrack your brains trying to remember. With a persons name you might misspell it the first time. But the second time? Next time you would probably use Google. Google will remember and find it for you? ...

All 10,000 of them.

Sure this is an unrealistic example. Names might be unique in your home town. But on the Internet everything changes. On the Internet, everyone has the name equivalent of a John Smith.[0] It really is better to choose a unique name. Besides, why would I want to name something using someone else's choice? I didn't get a say in my own name. So that brings me to the title, "Seldom logical". I stumbled on it as the title sort of suggests. Not by using my inner Spock-like logic, but through human blunder. I didn't use grep on /usr/dict/words as Andrew Tridgell did with Samba [1]. Instead I ran through fortune [2] in a bash shell a few times and stumbled on a Star Trek quote:

"Life and death are seldom logical." "But attaining a desired goal always is." -- McCoy and Spock, "The Galileo Seven", stardate 2821.7 [3]

By chance I happened to watch this episode earlier in the year. Spock, Bones and Scotty and a boarding party are marooned on the surface of Murasaki 312 after loosing contact with the Enterprise. Spock is in command. And only by the skin of his teeth successfully escapes the planet with crew intact. But not before blundering through various scenarios using pure logic. Succeeding in the end only by making one final illogical, but human choice. The idea that we are all illogical beings, trying to be "totally rational" is nicely captured in the title. [4] It neatly sums up what happens when I try to write down some problem. The journey might not be a logical one. But the search for clarity is.

Reference
[0] Google returns some 23,200,000 when searching for John Smith. I chose John Smith because it is a common generic name. http://en.wikipedia.org/wiki/John_Smith

[1] Samba: Tridgell wanted to distribute his new software as SMB Server but a product already existed with this name. Instead he tried ... grep -i 's.*m.*b' /usr/dict/words and the result was "salmonberry samba sawtimber scramble" http://www.oreilly.com/catalog/samba/chapter/book/ch01_01.html

[2] Fortune is a simple UNIX based program that displays random witty messages. http://en.wikipedia.org/wiki/Fortune

[3] Star Trek: "The Galileo Seven", season 1, episode 16, first aired January 5, 1967 http://www.tv.com/star-trek/the-galileo-seven/episode/24901/

[3] I butchered the title and quotation for my own byline, the title stays.

contact

2008-05-05T05:12:50Z

This is my contact card. If you want to get in contact with me, I'm reducing my use of email and increasing any contact that is visible for all to see. Keep this in mind if you email me.

about

2008-05-08T08:12:38Z

I live in a nice home. My web equivalent now has a new name ... continue. I am now actively working on some new Startup ideas. If you are interested you can take a look through the site, read how I made this site or contact me. All the images on this site are taken by me and you can use them without permission as long as you following the license conditions. There are more on my flickr site.