Tech Savvy and Lessons From the Stone Age

About 2.5 million years ago, some clever early human wrapped in a rabbit skin fashioned the world's first stone tool - probably using another piece of stone. A technology that led the way for mass migration and eventually other technological innovations leading up to satellites leaving our solar system. But those innovations were way down the line. If you were one of those early stone tool making types, you were pretty much set for about 2.4 million years. It was all mammoth meat and hot cave gals for you baby. That is until some jerk smelted copper with tin, arsenic and other metals to make - dare I say it - BRONZE!

I can just hear the complains at the Stoneworkers Union hall. "what's this new technology!?" "Can't possibly replace stone! I mean it was good enough for my dad and his dad and so on, then stone is good enough for me". And I'm sure there was a couple of blokes in the back of the room whispering, "What's bronze?" These fellows were faced with wrapping their heads around this new technology or face the very real possibility of have same heads lopped off, shrunk, and worn around necks of the heads that adopted the new technology. Those that did adapt, were pretty much set for about 2,600 years. 

Fast forward to 600 B.C. and all hell breaks loose again. Some wanker develops iron, a metal that could slice right through your shiny bronze swords. Earlier adopters donning iron helmets and wielding iron swords were suddenly everywhere building roads, taxing the hell out of everyone and teaching the world just how vitally important it was to adopt new technologies. 

I could go on, but I think you get the point - unless you're still wrapped in a rabbit skin loin cloth. Technological advances went from time frames measured in the millions of years to several hundred and now less than a life span - much less! For the average middle aged worker today, the concept of I learned a skill like the microsoft suite and now I'm technologically savvy is a sure way to get the modern day version of an iron axe in the head. Technological advances happen every 12 - 18 months. In fact, a generation is now viewed as 6 years! 14 years olds think 20 years old siblings are technological dinosaurs. 

And this appears to be coming at us two tiers, the gross general trends - we're in the interconnectivity phase that includes social media and collaborative operating models and on a micro-scale, the tools that operate in this phase like Facebook and the google suite of online tools. 

To call yourself tech savvy, one has to be constantly aware of what's being developed on the gross and micro scale, test it, adopt it or try something else new - and there will be plenty of that. It should be part of everyone's routine to scan, test and adopt. Otherwise, you'll find yourself and your business being trampled under-foot by hoards of new technology wielding early adopters. 

I Ain't Afraid of No Posts

https://en.wikipedia.org/wiki/Spirit#/
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I like to write as the mood or idea comes to me. So a lot of the sources I quote are somewhere in the pile behind my desk. Like google being the 18th search engine business. Can't recall where I got that one from, but point is, they didn;t let the first 17 failed attempts dissuade them from being number 18.

Likewise Amazon was absolutely railed against when they started selling things other than books. "They're BOOKSELLERS - Period!" was the chorus heard from every so-called business expert in the field.

I'm sure, if you're an entrepreneur, that you've heard more Debbie Downers than you care to count blow hard about the dangers of any course of action you could take and why you shouldn't go there. And they love posting all about it. What they're saying is "I'm a coward, How can you not be afraid like me?!"

What these folks do have in common is being too lazy to do their homework. A business strategy - long before spending a dime on the actual business - is critical. It can identify why the others have failed, why you're different, and the path you need to take to be successful. Google and Amazon relied on their unique product offering, their unique core competencies and a well-planned strategy that connected them with a well-researched customer need. This alignment is business strategy.

Unicorns and their Fearless Pursuit of Opportunity

If you're an entrepreneur you've probably noticed that most people don't think like you. Or more correctly stated, you don't think like most people. By example, when a new venture is proposed, most folks will see every reason imaginable why it can't work. The actually pride themselves on their ability to see the downside of anything as if this is some sort of entrepreneurial skill. Based on their vetting process they appear to be looking for the one venture where the path is clear, the risk is zero and the workload minimal. Or as I like to say, Unicorn hunting. And like unicorns, they don't exist.

https://commons.wikimedia.org/wiki/
File:DomenichinounicornPalFarnese.jpg{{PD-old-100}} – for works in the public domain 
because their copyright has expired in countries and areas 
copyrighting works for life plus 100 years or less.

The problem with most people, these pseudo-entrepreneurs in particular, is that they fear the hard work and risk required to build a business. True entrepreneurs look at what most people see as an obstacle as an opportunity. Some even thrive, seek out, and absolutely love onerous regulations as this tends to frighten off competition. Where one person thinks about how impossible it would be to mitigate the risk and comply with regulations of a toxic cleanup business, others see an opportunity to charge a surcharge and know the competitive field will be small increasing the margins even more.

Our team thrives on a challenge and our members have been chosen to tackle the varied challenges needed to thrive, the same challenges that scare off the average joe and pseudo-entrepreneur.  We're fastidious in understanding a product and its place in the competitive landscape and fearless in executing ones we've vetted. Missing pieces are just that, a piece to be secured and added to our tool belt.

So the next time you're in the latest quasi-governmental or non-profit "here's how to think outside the box" group or consulting with business guru of the day, listen for ques. Are they fearful? Are they quick to dismiss an idea because of competition, regulation or even workload? If so, recognize that they are looking for the mythical unicorn and overlooking an ACTUAL extremely rare and fearless unicorn, you.

Paying Artist What They're Worth

https://en.wikipedia.org/wiki/Sistine_Chapel#/
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We all know who painted the Sistine Chapel in Rome, Michelangelo, of course. But ask anyone if they recall the name of the architect who built the chapel itself? Now ask anyone, who should be paid more in a construction project, an architect, engineer, or an artist hired to decorate the finished structure. Precious few would even consider paying the artist anything close to what they'd pay an architect or engineer.

I lead a consulting team of alphas in Web Design, Business Strategy, Branding and Marketing Strategy, Videography, Accounting Strategy, and Legal Strategy. Together we market ourselves to entrepreneurs as "Your C-Level" team and we all share equally in the proceeds from our clients. Yes, equally, from logo design to contract negotiations to web design and even to additional artists added to the team as appropriate and needed for a project. And we do this because we feel every part of the development process is critical to building a successful business.

Let's face it, we design products for people not Vulcans. Your product should not only function well, but look great, feel right, be a pleasure to use, and just have. Together we build products that include artistic design throughout and not as a final layer, an add-on, or gloss. We value these team member contributions and pay accordingly.

The architect that built the Sistine Chapel, by the way, was Giovanni dei Dolci. And yes, we consider architects artists and just as important as engineers. The engineer? No idea.

Please send business proposals to george.j.constance@gmail.com.

Be a Viking Not a Berserker

https://en.wikipedia.org/wiki/Berserker#/
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History rarely treats them as such, but the Vikings were brilliant strategists. Their well-known and well-deserved reputation for brutishness was usually followed by some fine deal-making that allowed them to physically establish themselves in territories from the Byzantine Empire through North America and control trade throughout most of Europe. And part of that strategy was to establish a foothold using a segment of Viking society known as the Berserkers.

The Berserkers, from which the term "berserk" originates, were the shock troops of the Viking world. Historical texts describe them as savage beyond belief charging into battle in a frenzy wearing animal skins and no armour, biting on their shields, and displaying super-human strength. They are described further as immune to the pain of fire. So terrifying was their appearance and actions that the werewolf legend may have been based on these animal skin clad, beast-like Vikings. They were, in fact, probably drug-induced and so fearsome that they often turned on their fellow Viking communities or hosts, raping and killing at will. For this reason, Viking Lords often turned the sword on these Berserkers after battle to restore order to their newly-won territories and rationally negotiated lasting treaties with defeated foes and neighbors alike. The greatest Anglo-Saxon King Cnut was in fact a Dane and King of England, Denmark, Norway and a big chunk of Sweden. He didn't accomplish this gnawing on his shield.

As a business strategists, I seek out Vikings, aggressive, determined people who are passionate about their products. The Berserker know-it-alls with no time to think through their business processes and company direction are bound to end up on the wrong side of the sword. I don't have time for them.

GJC Business Strategy Consulting has teamed with other Vikings in Marketing and Branding, Web Development, Accounting and Finance, and Law professionals to provide C-level services unprecedented to entrepreneurs. We quickly plan strategies that provide not only a foothold in your market, but a plan for rapid and lasting growth through market exploitation and collaboration.

Long story short, be a Viking like Cnut and not some nameless berserker.

iamge credit: https://en.wikipedia.org/wiki/Berserker#/media/File:Bronspl%C3%A5t_pressbleck_%C3%B6land_vendeltid.jpg

Can you have a "Gentleman's Agreement" with a woman partner?

I'm fortunate to have quite a few partners in all of my business ventures who have trusted me enough to work for equity on a handshake alone. These "Gentleman's Agreements" are usually a result of getting to know someone, getting a good feeling right away, or a willingness to take a chance in the short-run to evaluate a relationship before signing on. I liken the last one to dating before marriage. And in each case the deal is struck between people who are attaching their very reputation to fulfilling their end of the agreement.

But, what if, as is the case for me, what if many of your partners are women? Is the agreement still referred to as a gentleman's agreement? I can see two women reaching an agreement as "Ladies" in a Ladies Agreement", fair enough. But what if one of the is a guy and the other a gal?

I reached out to my oldest daughter who works for the Democratic party. She was first shocked that Libertarian-leaning dad would consider this question and second at a loss for what gender-neutral word to substitute for Gentleman. In the end she suggested a "Professional Agreement". Good stop-gap in my mind, but to me, "professional" lacks the power of "gentleman".  The terms Gentleman and Lady, after all, refer not only to how someone conducts their business, easily separated from the whole person, but refers to the core, the essence of who that person is. Breaking a gentleman's agreement isn;t just indicating you;re a bad person to business with, but a bad person overall.

Problem is that the two terms exist as two gender specific roles were universally recognized at the time the term was coined. Proper adherence earned the term Lady or Gentleman and since Ladies rarely conducted business, Gentleman's agreement was  a no-brainer. And let's be honest, there are still roles apparent and equally enforced by either side of the gender formula with a few extra added in recent years. So, separate terms might still be useful in today's society.

As it stands now, I'm leaning towards "Gentleperson's Agreement". A gentleperson would seem to cover all the bases. It just lacks that age-old feeling of time-tested honor. Spell check appears to be just as torn as it shows "Gentleperson" a misspelling of "Gentle Person".  Or is it the duty of the current three generations of business people to propagate the term and an associated sense of honor-bound obligation.

And I read over this article I noted that I used "them" and "they" as opposed to awkward "he or She" as Gender Neutral terms. There must be a way around this. Please help by commenting.

Equity Crowdfunding - Anyone Can Get funding - Even Concepts

The SEC, Securities and Exchange Commission, quietly released a revision of the 1933 Securities Act that regulated how businesses raise funds through equity and how individuals can invest. I know the original Act itself sounds onerous to most of my fellow libertarian-minded colleagues, but this was really needed back in 1933 and the revisions are nothing less than amazing in 2015.

First, the 1933 Act put a whole lot of snake oil salesman out of business and protected a lot of simple folk from being bilked out of their life's savings. To start with, it required businesses to register with the commission to keep an eye on them. And it prevented them from using wide-scale advertising for investors. If you wanted to invest, you had to work through registered/accredited agents like accountants and professional investors. The investor also had to be accredited having a net worth that was deemed sufficient to protect you from ruin should the venture fail. I know this sounds like big brother protecting folks. But keep in mind, this was 1933, the height of the Great Depression and people were desperate.

Fast forward to 2012 and something amazing happened - crowdsourcing and crowdfunding. The SEC correctly recognized that the internet allowed vast access to capital for small businesses and that crowd could help vet businesses, adding a layer of protection for investors. And so, Jobs Act Title II was passed allowing businesses to cast a wide net on the internet to solicit investment for equity. The investors and businesses, however, were still required to be accredited. The intermediary like WeFunder.com, likewise and rightly, needed to be accredited by the SEC. And the SEC spent the next 2-3 years taking comments from players, monitoring progress, and developing something truly amazing, Jobs Act Title III.

Jobs Act Title III of the 1933 Securities Act, effective May 16, 2016, allows nearly anyone to invest in nearly any business through an online intermediary. This includes NON-accredited investors with minimal income and assets. There are some rules to follow such as registration requirements for all involved. But they don't represent a major hurdle and the onus is on the intermediary crowdfunding sites to maintain. In this Act, folks making less than $100,000 per year can invest the greater of $2,000 or 5 percent of the annual income or net worth and 10% of the annual income or net worth of an investor, if either the annual income or net worth of the investor is equal to or more than $100,000.

This is huge! Investment is no longer the advantage of a privileged a few and any great product or business can seek funding - even concepts. Those tired, dated, and arrogant Angels and VCs, most of whom know nothing about your product or industry, will now have to take a back seat to the general public.

By example, if you have a great concept but lack the funds to create a prototype, the crowd can invest. You don't need to spend time developing networks and risking exposure of a great idea to folks with deep pockets. Alternately, if the concept sucks, the crowd is sure to let you and every other potential investor know why.  As an investor you can invest as little as $100 in as many projects as you like. And you don't have a to have a bucket of cash and can spread the risk around by investing in several projects. You might even get a piece of the next Apple.

Of course there are requirements in the 772 pages of required reading including a well-designed business plan and strategy and review by accredited third parties. This is what we do. We align your product with the market and SEC requirements to increase your chances of being funded. One analysis can validate your product features, target market, identify cash needs in a format required by the SEC for equity crowdfunding.

What are you waiting on?

GJC Business Strategy Consulting
860-970-2645

How to Get Funding for a Startup

Product design, prototyping, customer segmentation, marketing strategy, marketing campaigns, manufacturing and distribution channel design, communications design, management strategy and design, and so much more. You may know your stuff when it comes to what you do as a small business owner, but no one can know all there is to know about all of these things. But these are the things that an investor wants to see.

My job as a business strategy, likewise, is not to know all of these things, but knowing they are needed and how to align them in the most cost effective and efficient way possible. This is what a business strategist does - align the business concept with the market and funding.

So I know what you're first reaction is; I can't afford all of those parts. This is where we provide the value you need. Most of our work involves preventing you from wasting money and, instead, investing money where it's needed. This is bootstrapping at any level. We're huge fans of bootstrapping and so are investors.

Check out our short article about BOOTSTRAPPING here.

My favorite examples of large scale bootstrapping involve a Soy Milk producer and the never too old story of how VHS beat Betamax to the market.

Looking at soy first, the milk industry actually sued the makers of a popular soy milk for using the word milk in the label and causing confusion with the customer. The suit was settled when the Milk industry agreed to distribute Soy Milk. This provided additional income for dairy distributors, allowed them to hedge their bets should soy replace milk, and gave Soy Milk folks a bonanza of not having to develop and maintain distribution and marketing channels.

Likewise, my personal project, Kronicity, a research tool that allows users to easily collect and associate data from any device, was faced with very large costs for content, marketing, and distribution in academia. My solution was to make it free for all educators along with revenue potential for teachers and professors. I saved a ton of cash and will launch months earlier than expected.

As for VHS, they faced a competitor in BetaMax that was backed by industry tech giant SONY that developed the Betamax nearly two years earlier. VHS countered with a product that allowed recording of movies 2 hours long (betamax bet on hour long television recording preferences for the consumer), and more significantly through an agreement with Blockbuster video to provide movies, marketing and distribution. The customer naturally gravitated to the machines that played all those Blockbuster movies. JVC used business strategy to collaborate the pants off of SONY.

In most cases, going it alone, spending the long dollar to reinvent the wheel, more accurately the distribution, marketing and manufacturing channels is a waste of precious time and money. You can get to market a lot quicker and for a lot less than what you thought through a good strategy that involves a few collaborators. Create and execute a plan like this and you're much more likely to launch with the cash you have and attract investors to grow to the next level.

For another example of really well spent money, consider our next post: "How Can I Reduce Development Costs".

How to Reduce Developer Costs"

I like to cite examples of what to do using my personal startup, Kronicity. Kronicity is a free research tool that generates revenue through user engagement and publishing. Greta idea, but getting it developed has been a pain in the ASCII. I literally went though 5 developers to get the product to a place where we can anticipate a launch. And I've come up with a few rules for development and a new tool in my business strategy tool box.

1. Never use equity as payment for a developer. They're just too few around and they're so easily pulled away by paying customers.

2. Vet the hell out of them. This doesn't mean looking at sites they've developed. You really have to get in there and talk to the owners of the site they've worked on and even the developer's partners. Sorry to say guys, but development seems to attract the real awkward kind of folks - folks no normal human can work with.

3. You can save a bundle gong offshore, but Don't go directly offshore. Use a third party in the USA that can be held responsible. More on that in  the example.

4. Talk it over with a lot of folks.

Here's how I accomplished all of these rules in Kronicity. First, I found a developer in hartford, CT that outsourced his work to Egypt. He's a very likable and competent sort and, critically, bound by law to adhere to his contract with me. I get the security of a local developer but paying offshore prices. He came with personal references and paid him for a test of his skills that went quite well.

Next I took on a developer as partner. Not just any developer. I found one that I can work with -  not awkward and argumentative. His job is to make sure the contract developer is doing his job, on time and under budget. As a business strategist and paleontologist, I have no idea when I'm having the wool pulled over my eyes. He also utilizes his network of developers to discuss and adjust our development - something I could never do. Bottom line is that his motivation is the same as mine.

The results have been amazing - half the development time and $123,000 less than planned. We've since added development services to GJC Business Strategy Consulting service list. We work with you to not only develop good business, marketing and channel planning, but also build and guarantee the site for a fraction of what most think possible.

We're available for free consultation in the Hartford area. Looking forward to hearing what you're building.

Fo more on the value of Business Strategy, see post: "What Does a Business Strategist Do?"

BOOTSTRAPPING or HOW MUCH CASH DO YOU REALLY NEED?

Here's the scenario I encounter almost daily: Entrepreneur has great idea in great market and wants a half a million dollars to get started. And that half million is earmarked for founder salaries, administrative costs, office space, new equipment and so on. And they're quick to point out that this "investment" will pay off for the investor because the idea is just so right.

Problem is that experienced investors invest in proven entrepreneurs - ideas are a dime a dozen. And I'm not talking about an investor with a track record of one or several successful businesses. What the investor is looking for is an entrepreneur that can get things off the ground without investment. A crafty individual that can leverage assets, utilize collaborators, and put some personal risk into the game. Someone who can move the needle forward just enough to validate the business model and more importantly, his or her abilities. Someone who needs some cash to take the proven model to the next level.

So, if you're just starting out, consider these two steps:

1. You don't need as much cash as you think. I wish I had a great class A space office to work out of the luxury of a salary to allow me to focus on building my business. But in reality, no one, outside a wealthy relative, is going to fund this. And this is a good thing. This forces you to work hard and act fast. And every good entrepreneur needs to do both, because your competition definitely is. And choosing to spend cash on new equipment and expensive office space is a clear signal to an investor that you're really great at wasting cash.

2. You are going to need cash, a whole lot of the stuff down the line for growth. Good business strategy plans for this with projections. And an investor is looking to invest in this growth and the entrepreneur that has realistically planned for this on top of the startup bootstrapping.

Summing up, investors invest in great people who can bootstrap a great idea and anticipate long-term costs. Be that entrepreneur. Getting from here to there is business strategy. It may seem academic, but nothing is more critical to an investor. When he or she asks the tough questions, have the right answers.