Subscribe to our feed

get entries feed
get comments feed

Blog Action Day - POVERTY and Our Deficit of Hope

Posted in Miscellany by Anne

“Today, October 15th, bloggers everywhere are publishing posts that discuss poverty in some way. By all posting on the same day we aim to change the conversation that day, to raise awareness, start a global discussion and add momentum to an important cause.

Every blogger has a unique voice, audience and perspective. By speaking to their readers on topic about an important issue we can discuss global issues like poverty in a new and hugely multi-faceted way. And from discussion springs action.”

This is my contribution to the conversation.

I have never been poor. I was raised in an “upper middle-class” family of well-educated parents. My father was sent to work in Europe for a time, so I even had the benefits of gaining an international world view - living in Brussels for five years and learning a second language, French. By the simple accident of birth I do not know what it’s like to be really poor, truly hungry, utterly hopeless.

I do read, however, and over the years both fiction and non-fiction literature has given me glimpses into multi-faceted poverty around the world: the bleak african-american experience through the eyes of escaped slave Sethe in Toni Morrison’s Beloved, Maya Angelou’s I Know Why The Caged Bird Sings or There Are No Children Here by Alex Kotiowitz; the poverty and harsh reality of the Chinese woman’s experience through Amy Tan’s books; the ghetto existence in apartheid-era Johannesburg in Kafir Boy by Mark Jones; the cultural poverty of women in the middle east in such books as Nine Parts of Desire by Geraldine Brooks, or Princess: A True Story of Life Behind the Veil in Saudi Arabia by Jean Sasson; memoirs of growing up in extreme poverty in Ireland through Frank McCourt’s Angelas Ashes, or in the United States The Glass Castle by Jeannette Walls.

Some common themes running through all these stories is the constant struggle required to survive against the forces of poverty, the yearning for dignity in the worst of circumstances, and most of all, that some maintained a sense of hope that they would make it, trusted that things would be better. It amazes me time and time again how, out of hopeless circumstances, individuals rise out of poverty and misery because somehow they are able to maintain a sense of self-worth that remains uncowed, unbeaten in the face of so many forces designed to tear them down. Hope is vital for those living in poverty.

The necessity of hope does not merely stretch geographically to humans around the globe, it stretches throughout time, with recorded thoughts on the importance of hope as far back as the 400’s from Pelagius, a monk who said, “There is no worse death than the end of hope,” to Napoleon Bonaparte said, “A leader is a dealer in hope,” and even to Dr. Martin Luther King who said, “We must accept finite disappointment, but we must never lose infinite hope.”

Recent coverage during the Olympic games revealed a current sense of optimism in China. The International Herald Tribune had an article in July about the recent Pew Global Attitudes survey.

Buoyed by years of extraordinary growth and with the promise of the Olympic Games just ahead, the Chinese hold strikingly positive views of their national economy and of the direction their country is heading, ranking first in both measures among 24 countries recently surveyed. They were almost universally optimistic about prospects for the Games, which open Aug. 8.

“This is clearly a nation that sees itself as ascendant, and that leads to tremendous satisfaction with the way things are going nationwide, even though the people are still struggling on an individual level,” said Andrew Kohut, president of the Pew Research Center, which conducted the survey.

Eighty-six percent of the Chinese surveyed said they were content with the country’s direction, up from 48 percent in 2002 and a full 25 percentage points higher than the next highest country, Australia. And 82 percent of Chinese were satisfied with their national economy, up from 52 percent.

By comparison, only 23 percent of Americans surveyed said they were satisfied with the country’s direction and only 20 percent said the U.S. economy was good.

Except for Spain, which placed fourth at 50 percent, the peoples of major European countries were far from content. Only about 3 in 10 British, French and Germans expressed satisfaction.

The survey also revealed Chinese concerns about rising food prices and disparity in income, but it is notable that although they individually may be struggling, their sense of the rising economy has affected their optimism.

Did the lack of confidence in the economy by Americans and most Europeans reflect an innate sense of the looming economic crisis in which we now find ourselves? We hear much talk that this crisis reflects a crisis of confidence. This survey shows that the crisis of confidence started long before the crash, and we have a long way to go to restore it.

I am currently doing some reading on the issue of Globalization, and in Thomas Friedman’s book “The World is Flat” he says, “Too often, we have antipoverty debates but not proentrepreneurship debates. The inspirational power of a local business success story is incalculable: There is no greater motivator for the poor than looking at one of their own who makes it big and saying, “If she can do it, I can do it.”

Conversely, there is no greater de-motivator as when we in the U.S. see more and more foreclosure signs diminishing healthcare security, and real loss of wealth. A sobering article in July by Market Watch reports on the findings of a major new national opinion survey conducted for the nonprofit and nonpartisan Every Child Matters Education Fund (ECMEF) showing “…the United States at or near the bottom of most key child well-being indicators when compared to other leading industrialized nations. The ECMEF report also shows extremely wide variations in child well-being among the 50 states.”

The new edition of ECMEF’s “Homeland Insecurity” report shows that certain states - including Alabama, Arkansas, Louisiana, Mississippi, South Carolina, New Mexico and Nevada - are consistently at or near the very bottom of the list of states on key child well-being indicators, while other states - including Massachusetts, Minnesota, New Hampshire, New Jersey, North Dakota and Washington state - fare better, but still fall far short of the top G8 nations in the health and safety of children. As “Homeland Insecurity” notes: “…within the U.S. itself, wide gaps in child well-being exist: compared to the states with the best outcomes, children in the bottom states are three times as likely to live in poverty, five times as likely to be without health insurance, eight times as likely to be incarcerated, and three times as likely to die before their fourteenth birthday… . The U.S. ranks last among the rich democracies on the two most important health measures — infant mortality and longevity - even though we spend much more on medical care.”

Voters are pessimistic about the future of the nation’s children. When asked whether today’s children in the United States will grow up better off or worse off than people are now, 45 percent believe they will be worse off while only 28 percent say they will be better off, a six point drop from a survey the Every Child Matters Education Fund released in 2003. A solid majority of Democrats (56 percent worse off, 20 percent better off) and near majority of swing voters (48 percent worse off, 22 percent better off) say that children will grow up worse off than people today, while Republican are more optimistic (44 percent better off, 25 percent worse off).
If a majority of us do not see a better future for our children, then we not only have a deficit economy, we have a deficit of hope.
Fareed Zakaria has a great interview with Tavis Smiley about his recent book, The Post-American World. It lays out in blunt terms how the landscape has changed. The rest of the world is rising, and we seem to be staying flat. There are 124 countries in the world that are growing at over 4% per year, and we need to have the political will to embrace the competition and prepare for the 21st century. I encourage you all to take 12 minutes to listen to the interview. In the light of the economic disaster we’ve experienced, we need to hear his message. It’s sobering, but clearly we can change things around.
Whether in fiction or memoir, in India or Indiana - the struggle, loss of dignity and search for hope in the face of poverty is universal. If we can make changes so that our children will have opportunities to grow in safety and health, to learn and compete in the future global economy, we can fight actual poverty and at the same time overcome our deficit of hope.

Tags:,

A Year Of Light, Motion and Magic

Posted in Blogging, Miri Market, Woman entrepreneur by Anne

Happy Birthday to me! I began this Light, Motion and Magic blog a year ago - and what a great year it has been! Today I’d like to write a little about what I’ve learned from the blogging experience - and since this blog is all about being a woman entrepreneur starting my business - I’ll outline where my business efforts are right now.

This blogging experience has been terrific. There have been both outward and inward benefits to this blog. I started it because I realized that there is an online community that I would need to understand, reach out to and be a part of if I were ever going to make a success of my online business. That online community is every bit as robust as I thought it would be, and more. The other blogs and bloggers that I’ve followed, those I’ve communicated with in forums, and the additional Twitter community that I engage with has simply become a part of my life now. Yes, it takes up time, but it’s well, well worth it. I have a genuine fondness and respect for the friends I’ve made online, and the times I’ve reached out, I’ve rarely been disappointed.

On an internal level, I can’t overstate how important it has been, as I’ve gone through this business start-up process, to take the time to concentrate my thoughts and experiences as I’ve gone along. Yes, it’s been hard to think of exactly what to write about sometimes, but the effort has always been rewarding, and has often crystallized my thinking, or spurred me to more needed research.

I am very, very glad that I took the leap to try this online format, and I look forward to another year with you!

My latest test of patience in getting Miri Market off the ground is finally drawing to an end. Johannes will be done with the design enhancements soon, which I am very excited to see. After that, I look forward to getting reactions to the concept from people through online surveys and face-to-face research.

The economic conditions in which we find ourselves is going to affect my business decisions, without a doubt. It’s tough enough to get a business off the ground, even without the tremors of a looming economic crisis shaking that very ground. I will continue to move forward very cautiously. Admittedly, getting Miri Market going has been s-l-o-w-w-w-w, but I’ve always believed that the process will unfold as it should, in due time. Perhaps the delays have been a good thing, and I should be grateful that the nervousness of watching the economy this week was not compounded by having a container of new product to launch and sell! These are uncertain times, for sure, highlighting the need to minimize risk and do my research to make sure this is a product that will be well-received.

Thus, I start out on Year Two of this blog. As I proceed with my business plans through the months ahead I will continue to write about my experiences and bring to you my honest observations and insights. I thank all my readers, and I hope you’ll keep stopping by to take this journey with me.

Tags:, , , , , ,

More on Globalization

Posted in Miri Market, Uncategorized by Anne

I got a long and thoughtful comment last week from concerned citizen, in response to my post Global Learning and the Never-Ending Learning Curve. It was recommended that I look into books that offer a counterperspective to Thomas Friedman’s books.

I really do want to get a balanced perspective, so I have ordered Redefining Global Strategy by Harvard professor Pankaj Ghemawat, and will pick up from the library Making Globalization Work by Joseph Stiglitz. Thanks for the suggestions, concerned citizen!

My eyes and appetite on this subject may be bigger than my time can handle, but I’ll give it a try! I have several of the books already, so my reading begins this week. I’ll certainly be reporting back on what I find.

Meanwhile, Thomas Friedman appeared on Letterman on Monday night, talking about his new book on the energy crisis,  Hot, Flat and Crowded. I thought it was a great segment, and you can see it here.

Global Business and the Never-Ending Learning Curve

Posted in Business resources, Woman entrepreneur by Anne

Early in August I wrote about Energy, Globalization and Manufacturing. Today I want to point you in the direction of more interesting information about globalization, and let you know what’s going on my fall business reading list. I’m not only interested in this topic as a woman entrepreneur, I’m just plain interested.

Laurel Delaney at The Global Small Business Blog consistantly brings up good topics connected to small business and globalization. Her blog pointed me to this site: Knowledge@Wharton and their discussion of a book titled: GLOBALITY: Competing with Everyone from Everywhere for Everything.

GLOBALITY tells the story of a new era of international business competition. The global challenger companies—that grew up in the rapidly-developing economies—are challenging the big, developed-country corporations that have been globalization leaders for the last two decades. Both challengers and incumbents will find themselves competing with everyone (including former partners and suppliers) from everywhere (in both developed and developing markets) for everything (including customers, talent, and more).

This looks like a good one to put on my reading list.

I also like the Globalization category of Small Business Trends. It has many fine articles, one of the contributors being the above-mentioned Laurel Delaney. Read any of the articles listed and you’ll get thoughtful content about global business.

There is a reference in one of the articles to Thomas Friedman’s The World Is Flat. This a book I hear about time and time again, and have often told myself, “I have to read it!” And I haven’t, yet. It seems to me that the globalization of business is a trend that is here to stay, so I want to be more informed, making this is a second book that goes on my reading list (along with Friedman’s latest book, Hot, Flat and Crowded.)

I’ve also discovered a new and fascinating rejoinder to Friedman’s The World is Flat, titled  The Entrepreneurial Society, by David Andretsch, from the Kauffman Foundation’s Entrepreneur’s Resource Center. As I mentioned in last week’s post Exciting Entrepreneurship Initiatives, this site is a tremendous source of information, globalization included.

New book by IU’s Audretsch declares business world ‘not flat’

Embracing innovation is the only way for Western businesses to succeed in the global market, says Indiana University economics Professor David Audretsch. In his new book, The Entrepreneurial Society (Oxford University Press). Audretsch argues that labor will continue to be outsourced abroad as long as the tasks involved are routine and replicable, but companies that reward new ideas, niche markets and community collaboration can thrive on local employment.

“If your company’s competitive advantage is based on lowest cost, you’re out of here,” he said. “If you want to stay and thrive in the United States, the focus needs to be on innovation. You need to think of things we’re not doing today.”

Baby boomers have had a difficult time grasping the changes of a globalized economy, he said. They inherited the economic success of the postwar era, in which large corporations were the major employers. Their attempts to follow an outdated formula have led to personal and corporate financial failures, Audretsch said.

Moving beyond the conclusions of Thomas Friedman’s 2005 bestseller The World is Flat, Audretsch argues that business innovation actually occurs in geographical “pockets” such as Silicon Valley software development, fashion in Paris and Milan, and finance in New York. Talent—and wealth—tend to collect in these areas known for cutting-edge development. The solution to the off-shoring dilemma, Audretsch says, lies in identifying community strengths and building these areas as hotbeds of innovation.

“It turns out, ideas and creation of those ideas happen in a proximate way—people gathered together make ideas grow, and to proactively respond you need to be in the same place together. Business innovation functions much like the world of music—the best work happens when you get together and jam,” he said.

This book will have to be added to my globalization reading list, as well!

I know that I’ve only scratched the surface of this topic and I’ve got an ambitious amount to absorb in just what I’ve found so far. But it’s a start, and a reminder that to stay current on the world, and business trends, the learning curve is never-ending.

Tags:, , , , , , , , , , , , , , ,

Exciting Entrepreneurship Initiatives

Posted in Business resources, Woman entrepreneur by Anne

I took a nice little on-line journey this week…into the world of entrepreneurship initiatives. First I began by checking on information about Global Entrepreneurship Week coming up November 17-23, 2008.

Global Entrepreneurship Week is a combination and expansion of two successful initiatives, the debut of EntrepreneurshipWeek USA in 2007 and the inspiration behind it, Enterprise Week in the UK which was kicked off in 2004 by now-Prime Minister Gordon Brown.

During the last year, these two efforts - led by the Ewing Marion Kauffman Foundation in the US and the Make Your Mark campaign in the UK - combined to engage 2,720 partner organizations planning 6,891 activities that directly involved 929,449 individuals.

Thousands of pieces of media coverage amplified the message, reaching tens of millions.

Watch this great, short video about Entrepreneurship Week 2007. I confess I got excited about all the energy, creativity and possibilites unleashed by this project!

Browsing around this site led me to the Imagine it! site where I watched a whole set of videos from a competition during last year’s Entrepreneurship Week. (Incidentally, the host of the video, pictured below, is Iliza Shlesinger who just won NBC’s Last Comic Standing.)

The film, imagine it!, tells the story of college students who participated in a global creativity challenge hosted by Stanford University during EntrepreneurshipWeek USA in 2007. The challenge? Create value using one pack of Post-it notes in just six days. Teams from around the globe including Thailand, Australia, India, Brazil, Colombia, Japan, Ecuador and the United States surprised everyone with what they did—raising and donating money, composing music, helping the disabled, making powerful social statements and educating children.The film captures the spirit of the next generation of entrepreneurs that will be unleashed during Global Entrepreneurship Week, from November 17-23, 2008.

Allow yourself plenty of time to watch the videos-it’s really fun to see what these bright teams came up with!

Which, in turn, led me to the website of the Kauffman Foundation, one of the main sponsors of Entrepreneurship Week. As a woman entrepreneur, there is much on this site of particular help to me.

The Ewing Marion Kauffman Foundation was established in the mid-1960s by the late entrepreneur and philanthropist Ewing Marion Kauffman. Based in Kansas City, Missouri, the Kauffman Foundation is the 30th largest foundation in the United States with an asset base of approximately $2 billion.

The vision of the Kauffman Foundation is to foster “a society of economically independent individuals who are engaged citizens, contributing to the improvement of their communities.” In service of this vision, and in keeping with our founder’s wishes, the Foundation focuses its grant making and operations on two areas: advancing entrepreneurship and improving the education of children and youth.

There is just loads and loads of great information on this site. Among the most relevant to me is the Entrepreneur’s Resource Center, featuring a wealth of practical articles, written for entrepreneurs by entrepreneurs.

Finally I found myself back at the Global Entrepreneurship Week site, where I registered as a member and signed up for their newsletter. One of the ways the site recommends becoming involved is to “tell others about the week.” And so I have!

Do some exploring on your own to find out about these terrific entrepreneurship initiatives.

Tags:, , , ,

An Excellent Customer email Strategy

Posted in Miscellany by Anne

Note: Before posting this, I checked online (or on-line?) for the latest thinking about spelling ‘e-mail’ with a hyphen versus spelling ‘email’ without a hyphen. I found interesting articles at The Fiction Desk, Digital Quest and Motivated Grammar. The consensus seems to agree with what I’ve personally been leaning towards: email. But both forms of the word are widely used and accepted, and I’m now going to lay this silly point to rest.

I like staying on the EPM Communications Marketing to Women e-mail list, because I get emails with nice little updated facts. Yes, they’re reminding me to buy their latest research, but they’re also adding to my arsenal of information - an excellent strategy to keep people from “unsubscribing” from your customer emails. Kudos to EPM. This is the latest:

1. 50% of American women and 32% of men say that mass merchandisers are their favorite stores to shop, according to WSL Strategic Retail.
2. 12% of new Harley-Davidson motorcycles are purchased by women.

Are Your Products Catching The Attention Of Today’s Homeowner?

Find the statistics and analysis you need to build a strong foundation for your product development, sales and marketing efforts in “Americans & Their Homes.”

For a complete Table Of Contents or to order your copy go to: http://www.epmcom.com/homes


3. 48% of women 35-49 say price-related offers from stores are the primary reason they choose one store over another, reports Vertis Communications.
4. 27% of mothers say nutritional content is their top consideration when buying groceries for their children; the kids preferences are the top consideration for 22%, notes pasta manufacturer Ronzoni.
5. 35.3 million moms are online, estimates eMarketer’s Debra Aho Williamson.

Tags:, , ,

End-Of-Summer Blues

Posted in Miscellany by Anne

This time in mid-August I always become acutely aware that summer is drawing to an end. It is darker in the morning, dusk falls earlier. The cicadas’ drone brings back a lifetime of memories of back-to-school shopping and State Fair visits. A familiar dread of the march of time towards winter takes hold.

In the work/life balance of things, I give special weight to the life part now, and try to grab hold of every moment possible. So enjoy this beautiful poem, and try to take time in the next few weeks to savor this singular, sweet, fleeting time of year.

THE END OF SUMMER

The summer days are fading, as they must
From endless hours to short and fleeting light
The bird’s once bright, immortal tune, now cries
A melancholy aura to the dusk
The children fiercely climb, and dream, and race
Before their wild and unchained days depart
And yet beneath the zeal lies a half heart
For there isn’t time, there’s only enough space
The sun seems low, a hazy orange sphere
Now reminiscing sweetly of the days
When endlessly before you summer lay
And as in the deep, crimson dusk you stir
Your soul joins with the birds in wistful brood
Crying for lost summer days, for childhood

by Shannon Georgia Schaubroeck

Tags:, ,

What I Learned From Summer Camp

Posted in Miri Market, Woman entrepreneur, research by Anne

Having gone to all three sessions of 2008 Summer Venture Camp put on by The Collaborative, I want to summarize the most important lessons that I took away from among all the information, expertise and advice given.

My business niche as a woman entrepreneur with Miri Market was not the primary target of most of the panel discussions, which seemed focused on med/tech start-up companies needing millions in venture capital. The Minneapolis/St. Paul area is especially strong in this industry, being home to Medtronic, St. Jude and Guidant, plus we have a world-class University that makes strong contributions in med/tech research. But the same things that make a strong candidate for getting venture capital makes a strong start-up company of any size, in any industry.

In the last venture camp session it was mentioned that you have to give people a message 9 times for it to stick. Much of what I focus on here are universal elements that were mentioned again and again - maybe not 9 times, but said by enough different people, enough times over the three sessions, that they “stuck” with me. The rest seems like just helpful good sense, to keep in mind as I build my company. So here they are:

1. Successful entrepreneurs need to be really FLEXIBLE. They also need to be completely dedicated; open to input; enthusiastic, but willing to learn; open to criticism; easy to work with; prepared.

2. Be sure to communicate to everyone - your employees, your board, your investors - IT’S ALL GOING TO CHANGE. You need to continually re-evaluate ideas, employee performance, compensation, priorities for spending - with the constant goal of making money and liquidity. Continually set up the expectation that things will be changing.

3. The saying, “Find a need, and fill it” is true. If you start with one idea in mind, and find that your customers are taking it in another direction or asking for some changes, go with it! Due diligence, market research, patent searches and understanding the competitive landscape can also help point you to the void that needs filling.

4. The main things to have down, which you must be able to communicate in a few, concise sentences, are:
-What’s your unique thing, your proprietary property/technology?
-How big is your market opportunity, your universe of buyers?
-What is the benefit customers receive from using your product? Will people pay for it?
-Management team. Management team. Management team.

5. When writing your business plan, make sure you have your above “story” together. Often a power point with supporting schedules will suffice, along with an excellent executive summary.

6. Hire people that are smarter than you. If you don’t have the knowledge and experience to get your company where it needs to be, find someone who does.

7. If you want to attract talent and have them work above and beyond for your success, give ownership as incentive - the earlier, the better. It’s difficult to lose key employees when you’re growing.

8. Don’t give up too much, too soon to your management team. Make sure they earn it, that no one is “dead weight,” then reward generously.

9. Be clear about the different components of your benefits package, and what long-term components reward as opposed to base pay.

10. If incentives are dependent on profit, put out the numbers so the employees know how they’re doing.

11. Consider that benefits have different value to different employees. Also think about the intangibles of your company that might help keep your employees. Create the right benefits and atmosphere for the employees you want to hire and keep.

12. Communicate, communicate, communicate - to employees, investors, public.

13. The right management team means having the right people at each stage. For example, having a bookkeeper –> having a comptroller –> having a CFO. Each time you add the right person, you’re adding value, even though the cash hit can be difficult at the time.

14. Constantly stay on top of cash flow. Check every day so you don’t have surprises.

15. Qualify your new customers. Set payment terms and credit limits. Follow up on slow payers. Offer discounts to get customers to pay more quickly. Offer credit card payment. Impose finance charges for late payments (and also use as leverage.) You can sometimes renegotiate terms with your manufacturers, suppliers. Convert sales as quickly as possible into cash in the bank.

16. Take the time to organize your board. Over time try to increase its sophistication to one that’s informed, and will take action when necessary.

Tags:, , , ,

Summer Venture Camp - Session 3

Posted in Miri Market, research by Anne

The third and final Summer Venture Camp took place on Thursday morning at the University of Minnesota. You can read my blog posts about Session 1 and Session 2.

Put on by The Collaborative, the intent of the Summer Venture Camp panel discussions was to, “… help fuel and inform the ‘next generation’ of innovators while also following The Collaborative trademark of providing information and networking to help entrepreneurs grow their businesses.”

Here is a list of the final four topics and the main points emphasized:

Equity Structure, Termsheets, NDA’s, Capitalization Tables, Employee Agreements and more

  • When seeking financing, you have to have a plan on how much you need, how you’re going to spend it and when you think you’ll need to go back for another round. But flexibility is key: your investors will be dictating the terms.
  • Once you get to the point of getting a term sheet, it’s a signal that your investors are very serious and there’s a doable deal. The term sheet will be a road map.
  • Using equity to incentivize key employees is perhaps THE most important issue in high-growth companies. It’s really difficult to lose a key employee when you’re growing.
  • Cash is scarce for these companies, but if you want to attract talent and have them work above and beyond for your success, you usually give ownership as incentive - the earlier the better.
  • Keep incentive plans simple. Investor doesn’t want it too complicated but does want to see something in place. Requires regular review to make sure they’re effective as things change.
  • Don’t give up too much, too soon to your management team. Make sure they earn it, that you don’t have “dead weight”, and then reward generously.
  • Stock options, restricted stock or stock appreciation rates are most common; a pool of 7% - 15% of equity for employees.
  • Worst thing is to get your valuation wrong - overstating or overvaluing. You will pay a real price later on if you don’t get it right.

The Role of Intellectual Property Issues in Financing

  • Having a strong Intellectual Property (IP) strategy is critical for getting funding.
  • Your first questions should be: Can I patent my idea? What is your strategy compared to the landscape of your industry? Then you should ask: How can I stay on top of it? What is my competition doing? What steps can I take to handle the changing environment?
  • Pay attention to what Universities have published in your area. Do your own due diligence, because professors often forget what they’ve done! And don’t forget to take a look at basic public patents.
  • Your CEO should be actively engaged in seeing what the competitive patent landscape is so he/she understands the context of what you’re doing. Will build a better business model because of it.
  • You want to spend your scarce funds in an area where you have the most leeway and freedom. Patent research can help you find that niche.
  • Make your patent application RIGHT AWAY. Make your patent AS BROAD AS YOU CAN. KEEP UPDATING your patent.
  • The patent office is getting further and futher behind; patents are taking longer and longer to get.
  • Engineering log books are critical. A good, old-fashioned paper trail is vital: a bound log book, dated and numbered and counter-signed by a non-scientist/inventor.

Trends in Talent, Compensation and Benefit

  • Some basic security around health is vital. Pre-tax plans can be foundation for small business. As you grow larger you may have to compete with plans of larger companies.
  • Benefits often begin with long-term planning, like 401K. There’s a trade-off between cash bonuses and long-term leverage. Maybe you can take the short term bonus and use it in a plan that will provide longer-term benefit.
  • Be clear about the different components of your benefits package, and what outcomes are connected to them. You don’t want your employees to be confused about what the long-term components reward as opposed to their base pay. Communicate that BENEFITS ARE PAY.
  • Some private companies don’t want to dilute ownership/equity, so are turning to 401K-like plans that are performance based.
  • If an incentive is dependent on profit, put out the numbers so the employees know how they’re doing.
  • Be sure your communication works with your employees. Studies show you have to give people a message 9 times for it to stick: give it 9 different ways.
  • Companies are moving to defined CONTRIBUTION plans, rather than defined COMPENSATION plans - keeps the company from becoming buried by obligations.
  • New study showing that younger employees now give companies about 6 months to prove they are what they say, and that there’s opportunity for them. If not, they move on.
  • Benefits have different value to different generations: flexibility, telecommuting, compressed work week might be more attractive to younger workers.
  • Think about what intangibles of your company keep your employees. Think about non-equity compensation.

Entrepreneur and Investor Panel

  • The more “disruptive” the idea for a company, the more likely it is to be a startup.
  • Especially in tech/medical industry, a successful start-up needs 1) world-class technology 2) very experienced management 3) capital.
  • Investors are looking to see that there’s a large and growing market, that there’s a very experienced management team (cross-function ability, execution focused, committed to change), that there’s patent protection, and a culture that embraces success - can meet milestones and communicate it.
  • A new company should always focus on basics. Make your business profitable: don’t just wait for financing, move the ball forward!
  • What comes with financing? Often expertise, strategic strengths, core expertise.
  • Replacing management teams is #1 issue - it’s all about management. Experienced management knows how to get to making money and liquidity. The “idea” can’t be the goal; the idea doesn’t matter. Goals will change but experienced management will focus on making money, will meet milestones, put money in proper priorities.
  • Get valuation right at the beginning. If you get it wrong, as painful as it is, make the correction.
  • Venture capitalists are driven by greed. If there are problems in a promising venture, they’ll look to see if it can be cleaned up, but will probably give youa take-it-or-leave-it proposition.
  • The right management team means having the right people at each stage. Ex: having a bookkeeper –> having a comptroller –> having a CFO. Each time you add the right person you’re adding value, even tho the cash hit can be difficult at the time.
  • Bad boards can cost a company money, are too often less informed than they should be, are unwilling to take the action that they’re supposed to take: replacing the CEO.
  • At what point is a company ready for financing? When you can see that with even just the 1st round of financing, it will make money.

The quality of the panels in this last session was more consistent than in the other sessions, and very good. Obviously there was an enormous amount of information, expertise and advice given during Summer Venture Camp, and in my next post I will summarize what I learned from attending.

Tags:,

Energy, Globalization And Manufacturing

Posted in Miri Market, Woman entrepreneur by Anne

There certainly has been a lot of talk about oil and energy prices lately. It has been the topic of a lot of political debate. But it directly concerns me as a woman entrepreneur, and my business Miri Market, when the time comes to choose a manufacturer for my product: Where will I go to have my product made? What will be the most cost-effective manufacturing choice for my business? What will be the most environmentally responsible manufacturing choice?

As we all know, much consumer product manufacturing is now done in Asia. But there was an excellent article by Larry Rohter in the New York Times on Sunday, Shipping Costs Start To Crimp Globalization.

Cheap oil, the lubricant of quick, inexpensive transportation links across the world, may not return anytime soon, upsetting the logic of diffuse global supply chains that treat geography as a footnote in the pursuit of lower wages. Rising concern about global warming, the reaction against lost jobs in rich countries, worries about food safety and security, and the collapse of world trade talks in Geneva last week also signal that political and environmental concerns may make the calculus of globalization far more complex.

Three issues - higher shipping costs, sensitivity to the “green” concerns of energy efficiency and reducing carbon emissions, and a world political landscape shunning tariff reductions - may all be combining to push us towards “what some economists call a neighborhood effect — putting factories closer to components suppliers and to consumers.” But the article goes on to suggest:

As economists and business executives well know, shipping costs are only one factor in determining the flow of international trade. When companies decide where to invest in a new factory or from whom to buy a product, they also take into account exchange rates, consumer confidence, labor costs, government regulations and the availability of skilled managers.

A year ago when I was starting this venture, there was an automatic assumption in several conversations that my manufacturing would probably be done in China. The economic and energy landscape is changing fast as I edge nearer to those manufacturing decisions. I will have to decide where to manufacture my product based on many factors, but I will have no choice but to stay flexible and well-informed on energy and globalization trends. It remains true, as Jack Welch, 20-year Chairman and CEO of General Electric said, “An organization’s ability to learn, and translate that learning into action rapidly, is the ultimate advantage.”

Tags:, , , , ,