My family is fine, how is yours?

I was interested in reading an article in this weekends Australia Financial Review which was titled ‘What worries the rich?’ – Firstly, who cares? Not me. Not because they are rich, just that it is an irrelevant question. We all have worries, and the worries of a particular demographic are no more important than any other demographic. However, in reading one particular persons comments I was astounded at the irony.

The rich person in question was Bruce Mathieson, who has a net wealth of over $1 billion. He said:

“I’d hate to think that I had a lot of money  but my family and everyone around me were unhappy. That would be an absolute disaster.”

For anyone who doesn’t know, Bruce made the majority of his wealth via Poker Machines. Here is a guy who “sells hope, and provides misery” – claiming he’d hate to make anyone unhappy. Is he serious?

Poker machines provide nothing good to society. The only thing that poker machines are good at, is redistributing wealth from the poor to the rich. And governments falsely believe the tax revenue outweighs the cost of the social ills they create.

You might think this is slightly off topic for startup blog. But for me it sent me a clear message about what business is all about. Creating value for all those who participate in the value chain – not one sided value.  If the cost of being wealthy, was creating heart ache for people, I’d rather be poor. In addition, I like to think we are entering an age where wealth creation is more often a result of creating value for society, not by tricking people.

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Imaginative work

I read a great quote today which I thought was worth sharing:

“There is a recognition dawning that the repetitive linear system which controls work and the worker is no longer profitable. Consequently, the presence of the soul is now welcome in the workplace. The soul is welcome because it is the place where the imagination lives.”

What I like about this is the reference to profit, and that linear systematic work isn’t profitable. If I think about every startup I’ve ever been involved with the real profit has come from the excitement and variety of the work. Internal profit rather than financial. And so my soul has been enriched.

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Don’t be boring

It’s not a boring category, industry, startup or company. You’re a boring brand run by boring people.

Exciting is a state of mind, if we have the courage to create, upset or even offend, then we can change our brand or industry forever. In fact, it might even be worth going broke or getting fired for.

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The white collar underclass

Before the Industrial Revolution the average number of hours worked in the western world was less than 6 hours per day. Some say we worked less than two and a half days a week.

I won’t quote what the average number of hours are today, but it’s more for everyone I know personally. I’m certain many people reading this would work in excess of 12 hours on certain days.

So what happened?

We got stooged. The  industrial revolution made it possible for a larger segment of the population to work year-round, since this labor was not tied to the season and artificial lighting made it possible to work longer each day. Peasants and farm laborers moved from rural areas to the factories and work times during a year has been significantly higher since then the important  innovation of piece labour. That is, the ability to earn income based on output. Think bolts in car doors.

Over time longer hours lead to greater amount of industrial accidents and workplace injuries. Unions formed and laws changed on the factory floor. But, the office was a different place altogether.

Office workers – salary based workers who where historically in management worked for salaries. A fixed wage for a fixed number of hours. My father constantly reminds me that in his day office workers only worked from 9am until 4.30pm. That tradesman and factory workers were the only people who did extra hours. And they did this to make up for the pay discrepancy which was favour of salary workers.

Clearly times have changed. If you are working in a large corporate, cubicle farm, in front of a screen or any place where you don’t get your hands dirty then chances are your are part of the ever growing white collar underclass. Here’s the some of stuff that defines members of the White Collar Underclass:

  1. A fixed salary with no overtime (factory workers, tradesman, retail staff all have overtime)
  2. Regularly working beyond the ‘official hours’ including weekends.
  3. It is expected that you arrive before and leave after your official hours.
  4. No representation in your industry to protect employment conditions.
  5. No tax benefits or uniform allowances, because your work clothing doesn’t have a logo on it. Even though it is in real terms a ‘uniform’ and costs you 10 times what hands on workers wear to work.
  6. Your annual performance review is based on the subjective assessments of your direct manager who may or may not like you.
  7. You work in a large building full of people who look and act like you do, and no one really knows what anyone else does.
  8. In an economic downturn, you panic, because you know what you do is essentially expendable.
  9. Large parts of your day are dealing with procedure, invented by other workers to justify their own existence.
  10. You look at a screen for large parts of your day, but have restrictions on what information you can bring onto the screen from the outside world.
  11. You feel as though your rarely use the skills acquired in the formal education you needed to get that job.
  12. You can work for days, weeks and months without any physical evidence of tangible outputs of what you have done. You don’t make or fix anything real.

If some of the above apply to you, chances are you are part of the white collar underclass. A group of people who have been victimized by efficiency. A group of people who don’t do anything real. Which is why there will be a significant value shift and higher pay going to people (like tradesman) who make stuff. Simple supply and demand. In the past 50 years companies have became so good at what they do, that very few people really do anything, including you. But you are giving so much of your time… you know it, and it eats at your soul.

Startup blog advice: Earn your living. Do something that adds value, not takes up space. Even if it must be done at nights and on weekends. Even if it provides no income. The human soul feeds on real activity, not simple economic existence. Feed your soul in 2010.

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The white collar reality

It was easy for white collar workers to be smug during the 1980’s. Their blue collar counterparts faced a dire future as hands on jobs increasingly went overseas to low cost labour markets. It even made it possible for information workers to extract larger salaries as the profitability of their organizations soared. The white collar desk jockey rode the wave of efficiency as corporations globalized and consolidated manufacturing.

The art of Tailoring

Life has a funny way of going full circle. And now it’s our turn, the white collar worker. We are also an endangered species in developed markets.

Yep, you and me. We too, will be outsourced. All us accountants, IP Lawyers, Engineers, Computer Programmers (insert university educated profession here).

Don’t believe me? Then consider this: In India each year there are over 300,000 Engineering graduates and over 400,000 IT graduates who will happily work for 10% of what conglomerate X pays you right now. It’s only a matter of time before large corporations, who are usually struggling for top line growth, can get over the emotional barrier of having a large corporate head office and go offshore. The spreadsheet will make that decision for them. But this time the barriers will be lower than when all the call center went overseas because consumers wont even notice. Society wont care either. They are sick of people earning well above average incomes in ivory towers. No one will feel sorry for us.

Micro outsourcing as provided by Elance, Odesk and Guru for entrepreneurs is just the test case. The head office is next.

What to do?

Stop being a factor of production and start organizing them. Stuff gets done, things can be built, and anything which is done at a desk is about to disappear to low cost labour markets. The way information workers can survive is through undertaking entrepreneurial endeavors (corporate & private). Be able to manage complex projects and by managing situations and people, not doing stuff. The age of the entrepreneur is about to become something which is so significant it changes work just like the industrial revolution did.

Startup blog says: Are you ready?

Get ready at Startup School.

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Industrial Tourism

Industrial Tourism is big business. It’s a little know fact the Boeing factory in Seattle has over  180,000 visitors a year.  At $15 a ticket that is approx $2.7 million in high margin revenue.

boeing 787 dreamliner

Local Australia firm fosters brewing has a popular brewery tour at their Melbourne plant (you get a free beer at the end of it) as does Media conglomerate NBC in the Rockerfella Centre in New York. None of this is free, and they are all fully booked pretty much every day.  The thing that is almost as powerful as the cash such Industrial Tourism generates, is the relationship it builds with the brand.

It is pretty cool to be taken into the ‘secret back room’, even though we can all be pretty sure that Boeing or any large conglomerate are not about to give away any secrets on said tours. But this is where startups and SME’s can do it even better. We can let our early adopters into our Factory, Alpha testing, Retail back room, Warehouse, New Product Development session. We can let them expose our secret goodness to the market for us. Especially if we do something awesome like make great software, use recycled materials or anything creative.

So the question for startups is this: How can we let our early adopters and brand evangalists into our secret world to spread our world?

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Boring and Stealth

There’s been a lot of conjecture as to my post below – that ‘boring is profitable’. I’ve been inundated with tweets from people providing examples of exciting yet profitable companies. And yes, exciting can be profitable. But that wasn’t the point of the allegory. The point is that Boring is Stealth!

Stealth bombers are about being undetected. If you can’t be seen, you can’t be shot down. Pretty simple concept really. The equivalent of stealth in business is boring. Because boring stuff is invisible to the majority of consumers and entrepreneurs. Given the way we are ‘attacked in business’ is by competitors, then the best way to avoid competition – is by being invisible.  Which for startups is much more probable than developing a monopoly through competitive barriers or brand loyalty.

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