Pre-empt reality – success requires it

Entrepreneurship and startups are a lot like starting out in your career. People want you to have experience before they will hire you. It’s that ironic circular reference in which it is impossible to get the job, to get the experience required until we’ve got the experience – right? hmmm.

Often startup businesses need a lot of people before the idea, concept or thing simply works. Kind of like email or fax machines. They only become useful when everyone has one…. or at least some form of critical mass in which we can exchange things of value. Aside from the fact this proves that the most powerful element in any business mix is distribution, it also indicates we all have a chasm to cross before success can become a reality.

So how do we cross the chasm? How do we make success a reality?

We must preempt it.

We must preempt our future reality. As though it already exists. We must talk and act as if it has already happened. Not just internally, not just convincing ourselves, but to all of those whose paths we cross day to day in startup land. We have to sell the future, before it arrives, as if it’s already happened.

Sometimes we might have to use ‘creative language’ which somewhat stretches the truth (our current reality). We ought not feel bad – every successful entrepreneur in history has done this. Every successful entrepreneur in the future will do this. It’s just a necessary element in creating the future. It’s not lying, it’s part of the creation process. Screw it – sell the sizzle and make it real. By the time the people catch up to the today’s reality – you’ve already created the future version.

Bill Gates sold MS DOS before he even built it. He said to IBM – “we have what you need.” Despite the fact it was metaphysical at that stage.

Generating media and interest in your start up is one of the areas where this must happen. Whether it’s in traditional media, the blogosphere, or other means, people don’t want to cover us until we’ve had success. What they fail to realise is that their coverage is the thing which often starts the success. Then people who read about our brand, website or widget say, “Wow, I better check that out”. They believe in ‘the people’. If other people are embracing it, it justifies them checking it out. it’s the wisdom of crowds, as far as people are concerned, we only count when other people care.

When people ask about your startup and want the obligitory progress report – paint the most positive picture possible. Use creative language that makes it sound bigger, better and closer. No – use language that says it has already arrived. Make the future your present reality.

Silicon Beach with yours truley

Silicon Beach Australia [siliconbeachaustralia.org] was formed with no plan, just a question:

“How can we bring the Australian technology community together?”

“Silicon Valley has a supporting ecosystem that makes Internet innovation thrive, so what can Australia do? How can our big island with the best beaches in the world, harness the passionate, intelligent individuals who care to do more?”

It’s a very cool initiative and hopefully something which will harness the intellectual capital our country is renounced for. Instead of losing it to countries who appreciate and embrace innovation.

One thing is for sure – it all starts with conversations. I was fortunate enough to be invited into the conversation yesterday for their 3rd Podcast to discuss a bit about rentoid, and all things entrepreneurship…

I was fairly candid with things like my corporate exit, business philosophy, the financial crisis and just the way I like to go about things. You can check it out by clicking here.

Small Companies vs Big Companies

If I could give one piece of advice for anyone who has reently escaped their cubicle of the large corporate scene to start up it would be this:

Do the opposite of whatever large companies do.

…and be quicker than they are.

if your startup is in the same industry you worked in…

Do the opposite of what you ‘were told to do’ within your large company.

To beat them you must focus on momentum. We most not do what they do, we must not compete on their level.

To gain momentum, we simply cannot behave the way they do.

Qantas gets it wrong with Effiency

These 3 photos where taken at Melbourne airport on a Friday night.

This is of a quick check (self check in terminal)of which there are 22.

This is of the the bag check in staff of which there were 3 working. (They have spaces for 22 employees)

And the this photo is of the ensuing crowd and chaos.

(the crowd goes around the corner it’s at least 100 deep)

I asked the staff member if she’d like some help tonight – she seemed flustered with how busy she was. She said “of course, but it’s ‘cheaper’ this way”. Then I asked if she thought “quick check” was quicker. She said “definitely not”.

So here’s the thing – Qantas make money out of the quick check. The save on overheads. On the balance sheet it makes sense. But what is the ‘real cost’ of doing it?

What it does is, is actually diminish what they actually provide at a differentiated level. It reduces their product from “service” to “travel”. They further commodify themselves against their low cost airline competitors. They make us ask why we are actually flying qantas and paying a premium…

– Is it the food service? – Not likely, given the food is most often a gourmet cookie & juice.

– Is it the service in the air? – Not likely, given their staff are less polite than budget airlines.

– Is it the airplanes? – Not likely, given all domestic players use the exact same aircraft.

– Is the the baggage allowance? – Not likely, given the allownaces are the same 20kg’s to tohers.

– Is it the terminal ambience? – Not likey, given it’s shared with jetstar.

– Is it their safety record? – Not likey given recent scares & that no major aircraft has ever crashed in Australia.

– Is it the inflight entertainment? – Maybe, but it’s a stetch these days given we all have mobile entertainment devices in our pocket.

– Is it the Frequent Flyer points?  Maybe, but it’s marginal at best.

– Is it the Qantas Club? yes – if you are preapred to pay the $775 per annum.

And it can’t be their ground service, given the example above on a Friday night.

Qantas need to ask themselves some hard questions about what they actually offer – as a long time loyal customer, it’s waining quickly. Their point of difference is in a massive state of decline.

Here’s what Qantas ought do if they want to avoid further decline:

  1. Offer Hot meals & drinks every flight. Not just at dinner time. If we are travelling we didn’t have time for dinner or lunch, regardless of when our flight was. We are just as hungry on 7pm flights as we are on 6pm flights. It’s not the food which costs the airline, it’s serving it up. So, if you are going to serve it. Make it worth the effort.
  2. Make the ground experience comfortable and convenient. A few more staff members on the cehckout is a nice start.
  3. Provide free wifi to anyone with a boarding pass.
  4. Have a ‘no tricks’ Frequent Flyer program where any seat on any flight is available, and not for ‘extra points’ – we’ve already paid a premium for our tickets – remember Mr Qantas?
  5. Have separate terminals for your Budget Airline (Jetstar) and your Premium Airline (Qantas).
  6. Sing out loud in your advertising about how different the Qantas experience is. Make us feel special.
  7. Charge the price needed to make it profitable. You’ll be surpirsed how many of us will be preapred to pay for it.

It’s about time Qantas started to focus on it’s customers and forgot about it’s competitors. Eventually we all morph into what we focus.

I’m sure Qantas will tell us this isn’t possible – but tell that to the person who pays twice the price for a Mac book pro versus a Toshiba with the same configurations.

Startups out there: “Beat your competitors – don’t be them!”

The Best Social Networking tools

We often wonder which are the best social networking tools to promote our business. In many ways it’s all and none.

There’s no shortage from which we can shoose from a business perspective: My space, Facebook, Bebo, Youtube, Blogging, Twitter, Live streaming TV, Ranking sites like Technorati, delicious and Stumbleupon, Virtual world spaces like second life.

The list is endless. In fact wikipedia lists the most notable (well over 100) here.

The best ones to engage and use aren’t those necessarily with the most people, the most features or the most anything. The best ones to use are those which you use properly. The way in which they were intended. There’s no point having your brand or startup on any of them – unless you engage the crowd in the conversation ‘they want to have”.

What does this mean?

It means be there often – turn up, and talk.

It means listen to them – it’s their place not ours.

It means share the information people want to have shared in ‘that’ forum.

It means, give first to them, and expect nothing back.

It means learn from their wisdom.

It means show your personaility and have an opinion.

It means create value to them, whatever value means in that forum.

It means be part of a dialogue, not a monologue.

In real terms all these tools are, is a personification of yourself, startup or brand. Don’t engage in behavior you wouldn’t engage in while in the real world. We mustn’t act like an Amway Sales Agents on line. If it’s bad form in the real world, it’s bad form in the on-line world.

If we just put our brand on all of these spaces and don’t get involved – it’s a waste of time for all parties involved. We are much better off embracing one or two forums and using them often and consistently. Going there, isn’t the same as being there. They are not shortcuts to brand fame. In fact, they take longer, but can be of greater value.

Given that the web is a conversation – we must embrace it and have manners. If we’re patient it’s worth the effort.

UGC & Crowd Sourcing – Beware the Homer mobile

There is plenty of buzz around UGC (User Generated Content), Crowd Sourcing and Mass Customization at the moment. And the truth is I am a sucker for it. I embrace it, love it and really believe it is an economic revolution. In fact many of the new features we’ve implemented on rentoid have been at the suggestions of our members…. but there is a downside.

We need to be aware that not every consumer knows what they are talking about, and not every idea we get from the crowd happens to be a good one. The crowd can get it wrong occasionally. Yep – there are people out there with ideas that just might send you broke if implemented.

If we are building a forum for people to create & share their own stuff on like Youtube or Etsy – that’s when it’s a cool idea to let the crowd take over. That’s when it’s cool to build the forum and get the hell out of the way. But when it comes to them designing and creating products for others – we need to keep our heads. In fact if there is one piece of advice startup blog can give is know which business you are in:

A) Are you building a forum for them to connect on?

or

B) Are you building a product for them – with their input?

If you are doing the latter – that’s when you need to be wary of the Homer mobile.

Instead, what we need to do when we want the crowds input is look to our “lead user group”. The lead user group is our base of fans who are knowledgeable, expert, style leaders or simply influential. These are the people we need to listen to when UGC is part of the mix, but not the whole story.

Engage your customers

Really the title should say “people” – we don’t do business with customers, it’s the greatest lie of all time. People trade with people. But I just gave it that title so I could teach people this who stumbled upon this blog entry…

So here’s how we do it at rentoid.com

We have a live chat session with our people. Answer all their questions, assess their concerns and just get to know them. Tonight we are doing it at 7.30pm Aust Syd / Melbourne time.

Go here to log on: http://rentoid.com/live

You can see the startup blog author in action live and see if he (me) can deliver it all live. So tune in, tell your friends and get a shout out!