Irrational Complexity

I just got back from the gym, and tonight I saw what I see every time I go for a workout. A very out of shape person doing some kind of ridiculously complex exercise for a particular body part. Which any experienced trainer will know is clearly a waste of time.

The reality of weight training is that the entire body can be trained incredibly well with 5 simple exercises:

Bench press

Chin ups

Squats

Shoulder press

Running

Everything else really is only for the hardcore and professional sports people. Problem is this truth doesn’t sell books, personal training sessions or gym memberships at locations which look like a NASA astronaut training facility. Success in gym programs is more about eating well and doing simple exercises which well executed with good frequency.

There is actually an important human psychology associated with such behaviour in the gym. We think there is some kind of secret formula. That success is associated with a complex algorithm which we must try and find, unlock and use. That success in the gym is rare because it is difficult to know how to do it.  That when we find these special trick techniques, our success will come much quicker. That we’ll be transformed overnight.

As humans in the 21st century we have a preference for irrational complexity. We know the truth, but we’d rather pretend it isn’t so. We’ve been so shaped by the media and a lack of hands on experience that we often believe success is hidden behind secret walls. And so we look for get fit quick schemes (Get rich quick scheme anyone?) rather than a get fit slow routine, which requires a consistent diet and a lot of sweat.

It’s pretty much the same in startup land. There aren’t great deal of tricks out there either. The formula is hard work, a lot of sweat, serving customers well and using the age old business maxims which were written about by Adam Smith over 200 years ago.

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The deception of history

Reading about Craigs list the other day I started thinking about business history and strategy. As entrepreneurs we often get fooled by the deception of history. And it’s easy to see why. All the business books and articles we read on success are based on what someone or some company we respect did. The problem with this is that the world lives in a state of flux, and what worked then, most certainly wont work now. This is where the Craig’s list example comes to the fore.

Craigslist Head office

Would a 3 color page of hyperlinks which looks like the internet did in 1994 work today? Highly unlikely. Craigslist works now, because it worked well then. It had things working in it’s favour like the ‘in crowd’ in the Bay area spreading the word. That it was first to market with an on-line classified. Now these legacy issues become a strategic proposition which is worth maintaining. What it doesn’t mean is that it’s a strategic template worth copying for Startup X. It’s also less likely we’ll get the support needed from the web community or the investors needed.

The same can be said for pretty much any startup with an interesting history.

A social networking site which is set up for alumni of an Ivy League University probably wouldn’t work.

A trading website where auctions are used to develop the perfect market place probably wouldn’t work.

An on-line retailer which aims to sell every book available in the world probably wouldn’t work.

As entrepreneurs, what we are better off understanding is the insights into why things worked, and try and leverage human behavior in developing a strategic direction to launch our business.

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David Elsewhere – 20 years in the making

You may have heard the name David Elsewhere, he’s an incredible dancer who has a style all his own. I wanted to feature him here on start up blog for a few reasons.

  1. There is nothing more niche than what he does (a dance style called liquiding)
  2. He’s been doing it for 20 years
  3. He didn’t stop when rap dancing went out of fashion
  4. He does it because he loves it. No other reason.
  5. He has now made a career out of it, and is an internet superstar. (Just youtube his name)

His major collaboration video has been viewed more than 200 million times. But the internet and youtube didn’t make him famous. His dancing did, it just so happens that the vehicles to promote his amazing stuff came along some 15 years after his preparation began. So here’s an interview to pay homage to staying the course, passion activities and the uber niche. Big ups from startup blog.

[youtube=http://www.youtube.com/watch?v=6V4H9RbbalA]

Patience pays.

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Collective Intelligence

You are in a room full of people.

You are speaking to them on stage and have their full attention.

You tell them to pretend all the people in the world are in this room

You ask the people who believe they have ‘above average intelligence’ to raise their hand.

All the people in the entire room  raise their hand.

The fact is, exactly half will be above and half will be below… we all assume we are the smart guys, the good guys, the people make things better…. we all believe we are adding positively to the collective intelligence.

But collective intelligence has a slight nuance. It only works when we let people with specialist knowledge fill in our own knowledge gaps and or take the lead in areas of expertise. If instead, we take the average viewpoint of the collective audience we usually end up with a pile of crap. Collective intelligence can only occur when we segregate and allocate information requirements, not when we aggregate. The latest proof of this is Youtube.com

youtube logo

Once upon a time youtube was a reliable source of cool and important videos. Circa 2005 the most viewed, most discussed for the day, week or month was an intelligent reflection what mattered. Now it’s a mish-mash of over produced pop songs, inane  comedians, and soft porn. A sad failure of the digital ‘Wisdom of crowds’. Youtube is still incredibly valuable, it just takes a little more digging these days.

The point for entrepreneurs is this: The crowd is not always right. Taking all advice from the crowd on how to iterate your product, service or website could result in a very average product. Intelligent design is usually the work of intelligent people.

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Office Blind

One of my favourite business quotes of all time is from marketing Polymath Al Reis who was co-author of the 22 Immutable Laws of Marketing (A must read for all entrepreneurs) and it is this:

‘An office is a very dangerous place to watch the world from”

Nice view from office
pic by Altus

This is really a key for anyone no matter what our life is. Decisions from the desk are rarely as insightful as decisions made from the filed. For all the reasons we are aware of such as message dilution , the grape vine et al.

I have been witnessing this first hand as I have invested the past few weeks out on the road visiting my business customers for www.rentoid.com. Put simply I’ve learnt more in the past few weeks than I have in the past few months. Incredible insights as deep and wide as web usability to asset management.

I’ll I can say to startups is this. Get out there and press the flesh and make sure you are not ‘Office Blind’.

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Startup Blog Live – episode 3

I’ll be doing another Startup Blog Live session at 8pm this Thursday night. It will be via www.twitcam.com under my twitter sign up which is www.twitter.com/sammartino or @sammartino for current members.

Thursday 13th August at 8pm – Live.

TV Studio

The topics of discussion will be Tactics vs Strategy – which was the topic of a blog post below and a very important issue for startups and entrepreneurs. If you can make it – ask a question in teh comments and I’ll answer it live for everyones benefit. Last time we had over 70 people tune in. So join us.

Steve.

I am on TwitterClick here to chat with me

Tactics vs strategy

In startup land the tactics we employ are far more important than our total business strategy. They are more important for one simple reason:

Tactics are short term. Strategy is long term.

Our goal as entrepreneurs in the short term is to get to the long term. To think, to invent, to create to build and ultimately to survive. If we survive long enough our we’ll be able to test our strategy in market.

Strategy is the domain of large companies who have revenue and time. In the world of the startup we must be tactically superior to get a chance to play in market. Often the tactics are not as the strategy intends. But unless we progress and gain momentum. The ultimate strategy will never see it’s place in market.

The lesson for startups is simple. Our tactics give us a chance at being straetgic in the long run.