John's Music Blog

I’m a couple of hundred pages into The Black Swan, by Nassim Nicholas Taleb.  In Taleb’s world view, The Black Swan can be the highly-improbable good event or the highly-improbable bad event, either of which has the ability to change the course of history.  He makes a good case for his statement that highly-improbable events have more impact on the world’s future than probable events.  I’m sorry, if that seems irrational.  But my recommendation is that you slug through the first 200 pages, as I did, and see if you reach a similar understanding.  (more…)

Back-of-the-napkin analysis isn’t good enough for some people, as one friend illustrated, when after my last post he sent me this link to an available research report on Ice Cream in the USA to 2011.  This report, which provides volume, value, share and per-capita consumption analysis across four categories of ice cream, confirms once again what my brother, Ken, has said, “If you focus narrowly enough, and study intensely enough for a few weeks, you can become the world’s leading expert on a topic.”  If the availability of this 120-page, 530 Euro report isn’t enough to prove Ken’s claim, note on the weblink the assertion that “Customers who bought this report also bought Ice Cream in Pakistan to 2011 and Ice Cream in Argentina to 2011.   Having been to Argentina and observed the beauty of the country, I had been hoping to become the world’s leading expert on ice cream consumption in the country. Alas, the job has been taken.  I guess I will need to focus more narrowly.  Perhaps I’ll focus on the per-capita consumption of 18 oz. Porterhouse steaks.  You wouldn’t believe how much meat they eat in Argentina. In the meantime, I’m wondering, if I can get a discount on a three-country ice cream report bundle. (more…)

I added a new link on the resources page of the blog a couple of weeks ago, and thought I would add a post, just to ensure you take a look.  The link is to The Funded, which is an online repository of customer experiences in working with venture capitalists.   The customers are in large part entrepreneurs that received venture backing, or at least sought venture backing.  The site contains commentary of these entrepreneurs regarding their specific experience in working with various venture capital firms. In some cases the postings contain  commentary on individual partners at those firms.  Postings are allowed only by approved writers, and there is a public and a private section.  The private section is viewable only by individuals who are approved to post commentary.  VCs are excluded from posting – along the lines of not allowing the horse to guard the oats.

What I learned in reading through the public and private posts is that there are individuals with some very strong opinions, both positive and negative, regarding particular VCs.   I also confirmed what I had long known: It doesn’t take long to spoil a good name which was years in the making.  And finally, if someone attacks you unjustly, someone else will rise to your defense, but the voice of the attacker will likely be louder.  If you are seeking venture capital, I would suggest at least a review of the site to see what has been said.  It’s not an end point in an investigation regarding a particular VC, but it is a data point. If you are a venture capitalist, I would recommend having someone monitor the public portion of this and any similar sites.  It may provide an early warning to problems in your company’s client-engagement process or in partner behavior.

When my partner and I founded our company, we wanted to ensure that our interests were aligned with that of our clients.  That drove several decisions in terms of our business model and fee structure.  On the one hand, we needed enough revenue to keep the lights on.  That’s in our clients’ interest and in ours. But, we intentionally kept our costs extremely low, taking the minimum office space that is necessary to operate the business and only spending money on those things absolutely  required to operate the business.   There’s no “flash” when you come to visit.  The chairs, the desks, the filing cabinets, and the computers have all been around the block more than once.   That allows us to keep our retainer fees comparitively low.  Again, that’s in our clients’ interest and in ours.  

On the other hand, we expect to be compensated fairly and proportionally, if we help our clients grow their revenue and increase the value of their businesses.  If we drive a million dollars in sales, we’ve increased revenue, but we’ve also increased the value of the business, and we expect to participate in that increased value.  That notion is difficult for some, who are used to a commission-only, a fee-for-service, or an hourly-rate model. 

In keeping with our aligned-interest model, if we work with one company, we don’t work with their direct competitors.  That might seem patently obvious to some, but probe a bit on the companies offering to make introductions or help promote your company, and you may be surprised at how many of those offering to work with you also work with your direct competitors.  (more…)

Several times over the last two months, I’ve been approached by people saying something along the lines of, “I’ve got this great idea for a new product that could generate millions of dollars in monthly revenue, but I don’t have the time, money, or expertise to develop it.  What should I do with my idea?”  A similar question was posted on LinkedIn, and I took the time to post an answer.   My answer to the question in turn prompted a small flood of additional requests, and I received, for what it’s worth, the LinkedIn designation, “Best Answers in Business Plans,” by the guy who posted the question.

I encourage you to take a look at some of the other answers that were posted.  For those of you who don’t want to take the time, however, I’ll sum up.  Here are the Top Five responses to what you should do with an idea for which you have no time, money or expertise to develop. (more…)