Suzan Bond

Warning: Spoilers ahead! Don't read if you don't want to know who's zooming who on the TechStars series.

I watched the show live but DVR'ed it as well so I could watch it again. As you probably know already, TechStars feels like family to me so seeing their name on my DVR list rocks. These guys make the me even more proud to be a member of the tech startup community. The show is really well done and pretty realistic. Props to Bloomberg.

As for my list of shows–yes, I am a romantic at heart who loves romantic comedies and Glee. Who doesn't love a little singing and dancing? Now that that's out of the way. On to my thoughts on the second episode of TechStars on Bloomberg TV.

Let's focus on themes from tonight's show. As the program gets started, this show focused a bit more on some of the potential pitfalls the companies might fall into. So, the themes reflect that. In case you haven't seen the show here it is.

1. Rookie Confidence

The show highlighted this theme nearly from minute one. Many entrepreneurs have tons of confidence when they start their first entrepreneurial venture. You need to have this in order to push through the tough times and take the risks required. Confidence is good, cockiness can get you into trouble at times as the episode shows. As the mentors said a number of times, having humility is super important. Having humility keeps you grounded, realistic and helps you build strong relationships with others. All of the TechStars graduates I know are really humble and down-to-earth so I'm betting some humility will show up soon in these teams as well.

2. Names Matter

Wiji was praised having "great product, humility, boundless passion and energy and something that's really fucking cool" according to mentor Roger Ehrenberg. Which is absolutely true. They're great guys who are wicked smart and created cool technology (I've seen it in action). And, everyone universally hated their name. David Cohen put it on his Top 5 All-Time Worst Names list while Ehrenberg thought it sounded like a disease "Oh, my Wiji."

Yep. Names matter. You've seen all the brouha-ha about the name of Netflix new spin-off Qwikster right? Getting the name right can be tricky but critical. Luckily, the team recognized this and went back to their original name which is pretty solid. Based on the amount of research I had to do to locate these companies using their current names I'm pretty sure we'll see a number of  name changes along the way as well.

Bloomberg Fact: A third of the companies change their name at some point during the program.

3. Know Your Market

Team Home Field was contemplating a switch from a focus and passion for sports to building a media business–an industry they don't know–on the advice of their mentor Fred Wilson. I hear they're doing well so I'm curious to see where they go with this. By the way, eats Reece Pacheco (the CEO of this team) the screen like it's for dinner. He's very compelling to watch.

Both Urban Apt and To Vie For (who has a great name by the way) were also facing the challenge of working in an industry they didn't know well. Being an outsider to an industry can definitely allow you to find fresh new approaches to old problems because your lens isn't jaded or rigid. But if not careful, you can shoot your business right in its bottom line. Thinking you can change an industry from the outside sometimes comes from naivete. Other times it's more arrogance. And sometimes, you really can. You have to learn the balance between a fresh perspective and relevant knowledge of the market. I think some of these teams have the chance to do this.

I love what David Tisch (loosely) said about this: You have to know how to do it and why you're the one to do it."

4. Gaming is a BIG Trend

At least two of the companies talked about it tonight (To Vie For and Socrated). Although they knew adding this dimension would help their company, neither was very experienced with it. This prompted Gary Vaynerchuk to really, really, really, really, really, really highly suggest Socrated get an advisor on their board who has experience with companies like Zynga. That was 6 really's if you're counting. One of my favorite moments of the show. I asked Tisch what he thinks about this trend on the Facebook chat after the show

His answer is spot on. Looking forward to see how these companies use gamification to support their overall goals.

Front Runner So Far?

Wiji. Just to reinforce that? They got to visit their dream mentor and were featured on ABC News today for their Minority Report like view of the future. Super proud of these guys. Looking forward to seeing some of these other companies really start to rock. Although it's not the same as being at the Boulder Theater with everyone, I'll be on my couch next Tuesday cheering at the TV whenever Jason and team comes on the screen.

Props Go To…

All of the teams. I applaud these teams for allowing a camera to follow them around documenting their TechStars experience. Startups are hard at their foundation. Add a challenging program like TechStars and a camera on top of that? That's gotta be a pretty intense experience. I'm grateful they were willing to put themselves and their companies out there so we can learn from them. Well done all.

Honesty was on my mind a few weeks ago. It stuck with me. Turning it back on myself I realize there's a confession I should make. Now, I'm not Catholic so I've never really done this before. Bear with me.

The thing is…

I'm an idealist. One of the things that drives me the most is impact. Empowering people is a huge part of my life. I'm an idealist that wears a business blanket around her. I love making people and organizations more effective, happier and just better people. Or groups of people. I love taking this mushy stuff like intuition, empowerment, learning and making it tangible and accessible so that things happen.

You know, strong companies, more effective people. All that stuff that lives in the real world. 

My end game? Results. I am driven by tangible things like deadlines, results, impact and anything you can count. I just start with a bit of good old fashioned idealism.

Now the confession starts to get really good
Somewhere between worrying about makin' the donuts and paying those bills there was a time when I lost a little of that part of myself. Not "I'm gonna die in the jungle lost." Just enough to make me a wee bit well, less me. And I believe we're all our most effective when we're truly ourselves. It's actually ironic given one of my favorite quotes:

If you ask me what I came here to do I will tell you. I came to live out loud.

                                                                                                              Emile Zola

The slow leaking away of this part of myself wasn't obvious for a while. Over time I just became a bit stiff. And unlike myself. I started focusing only on results–not the way to get there. Misalignment starting showing up in my life at times. Things got harder and just didn't seem to work as well as they had before.

Why did I lose it? There are the usual suspects but the biggest reason is that I focused on the wrong goal. I had this idea that my main goal in life was to make money and pay my bills. Yes, those are realities. But focusing on them for me were akin to being on a hamster wheel where the object became keeping that cycle going. It was a gradual slipping away and a gradual awakening. Then there was a day when I just decided it was time to change my focus. I chose a deeper, more sustainable goal. That focus? To be myself. Idealist and all.

Allowing my natural preferences and my vision to guide me actually helped me find better opportunities are truly aligned with who I am. It's also given me much more stability in the good old financial department. Huh. Fancy that.

We all lose our way sometimes

There's lots of pressure around results and that sometimes means we drop a little part of ourselves along the results highway. We forget that it's actually one of the fastest ways to results.

I see startups do this all the time as they grasp for their early clients. Growing companies can fall into this trap as they seek to keep the ground they've gained. As a CEO of a scrappy little startup it can be easy to get caught up in all those darn logistics and lose sight of your vision. For me, finding my way back wasn't like waking up on pile of soft pillows and I had to make some real choices but once I got there it felt amazing. To live any other way is well, just kind of crazy.

So tell me.

What part of yourself or your company have you dropped off on the side of the results highway? 

And how will you pick it back up?

Yep. It’s Tuesday in the real world. But on this blog–it’s On My Mind Monday.  Here are your links for the week. Enjoy.

bg Blog: My Week Alone on the Internet
Why: I saw the author, Grant Blakeman speak recently at TedxBoulder about minimalism. (That’s him in the photo to the left.) He continues the good work here with a post on being distracted with what he calls CRS aka Constant-Refresh-Syndrome. This post details his experiment to circumvent this and what he found was that there are distractions everywhere. Insightful read.

The Daily Beast: Is There a Gender Divide in Startups?
Why: After a flurry of articles about where all the women are in tech startups the author herself a tech startup veteran gets to the point about what we should be focusing on. “I could keep writing about the lack of women in tech, but starting a new company sounds like a lot more fun.”

Seth’s Blog: The Fear Tax
Why: Ever the provocateur, Seth Godin does it again with this post. Simply? Fear is one of the biggest things that holds us back from success in business and in life.

Boundaries are very good things. They delineate what’s ok and what isn’t. I always like to say that everyone (adults, children, dogs) needs boundaries. It lets them know where the line is for what’s acceptable. It makes them feel safe. And in some cases, actually makes them safe.

In my work I see many companies with organizational and/or business issues where the lack of strong, articulated boundaries were the culprit. In some cases they didn’t have enough business experience to know what kind to set. In other cases, they had boundaries they wanted to set but didn’t for fear of losing clients or valued staff. Or worse? They set boundaries but then didn’t enforce them. This eroded their credibility and built distrust because others didn’t know what to expect of them. This = not good. The founders became frustrated. Left to the whims of others. And? The business was less profitable.

An epic fail.

When Boundaries are Bad
I’m having a hard time coming up with a time when at least some basic boundaries aren’t good. One of my friends, thinks that not all boundaries are good. Especially in extreme sports.

I think what he’s actually talking about are limits. These, I think, are different than boundaries. You set limits for yourself but boundaries for others. When I’ve been in extreme situations I still have limits. For example, on my first hike up two 14ers in a day my limits were mostly around altitude issues.

If my lungs rattled, down I went.

If I started getting sick to my stomach, it meant stop.

Getting a little frustrated or scared meant I still continued forward. That’s how I got to the top of the mountains safely. I saw some people coming down the mountain who were just wrecked. They either didn’t have limits or, had pushed way past them. I kept thinking we might see a Medevac on the mountain. Not good. Note: The fabulous jumpers in the photo are my friends Betsy Doughty and Emma Nicoletti participating in the Warrior Dash, an extreme running/obstacle course event. Their limit was sticking together through the entire course. They did and both came through the course with their well-being intact.

Although these examples are from the sporting world, it applies to the professional as well. An example is having a limit around how much money and time you’re willing to pump into your business as a new entrepreneur. As I mused on this topic there was a pretty furious volley going on about boundaries on Twitter. Here are some of the juicy tidbits:

@iamkendal: …one area of life tends to reflect others. Even in the extreme sports context, there’s more going on.

@heizusan: I keep my boundaries very broad, but iron-clad steel. You get lots of wiggle room, but 0 tolerance for “leaving the premises”.

@campsteve: People who say they don’t have boundaries don’t know themselves.

I agree with @campsteve’s comment. And? It’s also true about limits. You have to know yourself. Know what’s ok. And…what’s not. To know that you actually have needs that need to be respected in your business, your relationships and with yourself.

If you don’t have boundaries and limits you’ll get hurt in life–metaphorically and literally. The lack of the them can breed frustration and conflict with others if they’re not well set AND articulated.  Pretending you don’t have boundaries or repeatedly ignoring them will raise your cortisol levels. Otherwise known as the stress hormone, elevated levels of cortisol are associated with a weakened immune system, impaired brain function among other yucky stuff you don’t want.

Save yourself from inner and outer conflict and just set some boundaries and limits. Your business will thank you. Your friends, family and colleagues will thank you. Your soul will thank you.

The Equation

Being an engineer, my dad’s pretty much a math genius so even though I’m not I like to express things in terms of equations. So for the math nerds out there here it is:

Boundaries = well-articulated external rules for others

Limits = clear internal rules for yourself

Boundaries + Limits = a well-articulated business and life that supports you. And that = happiness in my book. Without boundaries and limits, life is just a roll of the die.

What kind of boundaries do you have?

What limits do you set for yourself?

Ok, ok. I know for most of you it’s not Monday. Even though it’s Tuesday I’m posting this because I was away in Santa Fe this weekend and just got back yesterday so today is my Monday.  On to the stuff I found interesting this week…

Chris Brogan: Not Time Management
Why: This is actually a vlog post. I included it because he makes a simple but really important point about the biggest key to managing our time.

Reuters: If Women are Good at Running Businesses Why Does it Take Them Longer to Start One?
Why: As a female entrepreneur I’m always fascinated with this topic. And? It points out how the “system” can adjust to suit potential entrepreneurs just a tad outside the traditional profile.

New York Times: But Will it Make You Happy?
Why: Happiness is always a fun topic. It also talks indirectly about a topic I’m very interested in: simplicity vs. minimalism.

Home Grown: Earthship Biotecture
Why: This weekend I had the opportunity to visit the original Earthship community just outside of Taos. When I was going to get my PhD I studied environmental risks and community response to it so sustainability is a topic that’s always close to my heart. The photos below are of completed and still in the works Earthships.

I’m a voracious reader. I ask lots, I mean lots, of questions. (I’m actually paid to do it for a living).  So, one of the things I’m known for is being able to assimilate and use information quickly. I’m often asked which networking groups are the best in town. Or, who’s speaking at an event in town. And most often…resources on organizational strategy, business and transition.

I’ve decided to spread the love via this blog.  Every week I’ll share links to the things that have been on my mind over the past week.  Some times they might have a theme. Often, like the way my brain works, they’ll be more stream of consciousness.

On to our first edition…

More Venture, Less Capital: On the Road with TechStars
Why: This article highlights some of my favorite TechStars companies from the 2010 class. Companies and people you definitely want to watch.

Tech Cocktail: TechStars Boulder Launches 11 More Startups
Why: This is a good comprehensive recap of the recent crop of TechStars.

New York Times: Tapping the Wisdom of the Crowd
Why: Crowdsourcing is the way of future if not the way of now. It’s a trend a new way of doing business that you should know about.  As an added bonus? The article mentions a couple of Boulder local businesses.

New York Times (Sunday Magazine): The Age of Laura Linney
Why: I’m fascinated with talent and people who find ways to use theirs to create a satisfying career. Laura Linney is definitely one of those. Actors are like entrepreneurs because they’re free agents who have to manage their careers well. And? I met her once. She was so genuine and unassuming (for such a big talent) that I didn’t realize who she was until much later. Cool.

And, a photo I took from my bedroom window Sunday night as I was preparing this post.

It’s investor day today for TechStars companies. The latest crop of companies from this mentorship-driven seed stage investment program was impressive. That’s Josh Fraser introducing Adstruc who have a pretty brilliant idea that’s sure to have an impact in the outdoor ad industry. Some of the founders for those companies are from Boulder (like Spot Influence) while others came here specifically for the TechStars program (such as Adstruc who are from New York–a billboard & advertising mecca. Which of course, is a natural fit for their company). 

Under30CEO.com just came out with the results for their survey on the best cities for young entrepreneurs. The list included the usual suspects that appear on many “best of” lists.  Chicago, Seattle, New York and the like. While some of the choices are dead on I disagree with some of their choices. And, more importantly. Their methodology.  This got me to thinking about how to choose a city for your startup.

Choose Your Criteria Wisely

The criteria they include on this survey include: resources available, schools, social atmosphere, weather and networking opportunities. While these are good things to think about there are some other things they’re missing. For example: What is the climate like for entrepreneurial ventures? What is the city known for industry-wise?  They’re also missing the boat on what’s going to make an new entrepreneur successful.

Let’s take my former hometown as an example. Chicago may be a very large city with lots of fun things to do. I know. I lived there for 12 years. Is Michigan Avenue with its expensive stores really going to be a draw for a debt-ladden/low or no income entrepreneur? Are they going to be lounging on the shores of Lake Michigan? Somehow I doubt it. This is probably good information for say an under 30 professional but less so for someone who’s running and gunning to get a new business off the ground.

Yes, But What Kind of Startup?

The kind of business you want to start is key in making the “What city should I start my company in?” decision. Let’s go back to the previous example. Chicago is well suited for professionals who like large companies–in fact many have their headquarters there including Kraft, Boeing, Sears and the like. The biggies there are financial services, management consulting and pharma. Now if your startup directly serves those industries by all means–go there. Starting a professional services firm? Yes. A technology startup? Not so much. There just isn’t a large community there for it.  Deanna and Brett, former Chicagoans moved to Boulder to go through the TechStars program with Rent Monitor. And they’re staying.

For the tech startup world I’m gonna go with the Bay area (natch), Austin or my current hometown of Boulder.  Why? They’re magnets for some of the best technical minds in the our country.  You’re more likely to find people with money to spend on these ventures there.  And? They all have great indicators for quality of life: easy access to the outdoors, good weather and a high concentration of smart, educated folks. From the 2010 TechStar class, Boulder’s own RoundPegg is a good example of a company that’s a good fit with a city with a high concentration of tech talent AND all the amenities that attracts good talent.

So…

One size really doesn’t fit all when it comes to making a huge decision like deciding where to found a startup venture. A big city isn’t necessarily better than a small one. Bars, beaches and boutiques probably shouldn’t be a big part of the decision making criteria for an entrepreneur. In order to be truly useful you need to identify the right criteria to get the most pertinent information.

Other things entrepreneurs need to consider in selecting a city:

• Amount of entrepreneurs in the area. (indicates support you may receive from other entrepreneurs and the community)

• Access to venture capital, angel investors and other funding options.

• The presence of incubators and mentorship-driven seed programs like TechStars.

• Where your co-founder is located and wants to be located. (because co-located teams can be difficult in the early stages)

And one that is hard to quantify but incredibly important: Does it feel like a city that I can thrive in?

What do you think makes a city a good choice for an entrepreneur?

I had a client who decided to make a good sized change in their business model. One of the keys to this decision (which was a good one by the way) was the use of disruptive forces. In their case, the disruptive forces included bringing in outside perspectives. This was in large part what helped them to get clear about their core competency. They got a bit uncomfortable. They disrupted their usual way of thinking.  And viola. The right solution came to them. Pretty easily by the way. Having to reinvent yourself is common–especially in the startup and growth phases of business. Twitter got its start out of a need to reinvent and in their case–do things radically differently. If you don’t know the story of how this innovative, disruptive company came to be, you can read their story here. On a side note, it’s also an interesting case of building a disruptive technology in stealth mode. Who knew you could change the way the world communicates in 140 characters?

Want to have more business? Be more profitable? Create an innovative disruptive technology in your industry? Get out of your comfort zone. Feeling uncomfortable isn’t well–comfortable. But it is sometimes necessary to help you get out of the ruts you’ve developed by habit. And sometimes, changing the standard operating procedure is just what’s needed. Here a few ways to disrupt your thinking:

- Read about innovations in other fields.
- Do a daily task in a very different way than normal.
- Ask for an outsiders opinion. Strangers or those outside your field can often provide surprising & new solutions.
- Work with different people on a project than you normally would.
- Spend time in a completely different environment. (for example, watch children play if you’re normally in an office all day)

If all else fails–stand on your head. That’ll make the world look different.

What are your favorite ways to disrupt your thinking?

And do tell me how things have changed once you disrupted your usual way of thinking and acting. Blog-perators are standing by...

I was fortunate to get some time to talk with Jason Mendelson, one of Foundry’s managing Directors. Foundry Group is a Boulder based venture capital firm which invests in entrepreneurs across the country to help them turn great ideas into sustainable businesses which define and lead markets.  Recent investments include Trada which aims to revolutionize search marketing through crowd sourcing and SendGrid which utilizes a cloud based email platform that makes transactional email delivery easier for companies.

The focus of our time together was on managing the growth phase of a company, which I like to call the teenage phase of business. Here’s what he had to say.

Once you’ve invested, how far into the life cycle of the business do you go?

All the way through.  However, the roles change over time. In the beginning I focus on the product and building out the management team. Once the product is well developed, I focus on making sure the team is functional and milestones are being met.  In this phase of business I become somewhat of an armchair psychologist. Sometimes.

What is the biggest mistake you see companies make in the growth stage?

Hiring sales people too early. If your CEO can’t credibly sell—you don’t have something to sell. Also in the sales realm, companies can have too much business development but not enough sales.  Meaning—they have lots in the pipeline but they’re not closing enough. From a sales perspective, a business needs to differentiate its audience and determine the top few prospects that are most likely to buy and knock them down. Then go after the next set of prospects likely to buy.

What are other common mistakes you often see?

Holding on to the wrong employees too long. Businesses often need to change out people faster. It’s like love. If you fall out of love, the chance of falling back in love are minimal. So it’s likely you won’t get that love back.  Holding on to people like this can be damaging to the rest of the staff and weigh on morale.

How do you know when it’s time to let someone go? What are the parameters you use?

It’s never easy to do and even less able to determine the right course of action before it’s obvious, but there are a couple of filters that I use.  First, if the person becomes unenthusiastic or disconnected from the business, that is usually a sign of something greater.  Also, if the team around a person becomes dysfunctional, that is also a telling sign.  Changes in behavior, performance issues, etc., are all early signs.  I wouldn’t suggest any of these leading to an instant termination.  Everyone deserves a transparent and open conversation, but it’s rare that you lose confidence in a person and they gain it back.

Which company gets the growth phase right?

Rally Software.  Tim Miller and Ryan Martens have a well functioning team, a great product, they understand their customers and the sales cycle and are willing to make the hard choices. They’re the gold standard.

The transition from a startup to a well-functioning growing business can be tricky. Hence, why I call it the “teenage” phase of business. Some are conscious about the growth of the business, know their worth and adjust accordingly. A good example of this is social media Chris Brogan who wrote an excellent behind-the-scenes post about it called Redrawing.

I see many other businesses who struggle with how to scale their business–especially when it comes to serving clients and adjusting their services or products. It’s a familiar story I hear from founders all the time. An entrepreneur starts a business. Because they’re just starting out they take every client they can get. Typical of this phase of business. Fast forward a couple of years. They’ve been relatively successful and have a steady list of clients. Now comes the tricky part. They’re still acting as if they’re brand new to business. They’re reluctant to raise prices. They continue to act on the whims of their clients rather than setting up a relationship that works for them as well.

Bottom line: They don’t want to demand too much from their current clients. They’re afraid they’re going to scare away that steady cadre of business.

The Transition From Startup to Growing Business Can Be Tough

This is a common problem for businesses that are past the startup phase and moving into (or further into) the growth phase of business. While their skills and ability provide quality services or products has evolved, their beliefs haven’t. The white knuckle mindset (as I like to call it) will actually cause a business to stagnate.  Or worse, the business holds on for dear life to their customers and existing standard operating procedures–white knuckling it all the way into decline. Business is not only about the tangible things like pricing, marketing, product development and feature sets.

It’s also a mental game. You have to know what you’re worth–and ask for it. If you don’t, you’ll miss growth opportunities. You’ll set your prices to low or allow the client to negotiate the price. You might give away too much for free. You’ll run all over town (or the online equivalent) trying to meet unrealistic demands of clients that serve their needs but not yours.  You’ll be resentful or frustrated. Profits will stay the same–for years. Worst case scenario–you’ll go belly up.

Do the other things matter for a company in the growth phase? Absolutely.  But if your business mindset ain’t right–it doesn’t matter what else you do in the business.

So how do you get your mind set for success?

Step1: Know the strength of the business. Figure out what sets you apart (this is also known as differentiation).

Step 2: Plant your flag there. Read: believe in your business. (And yourself)

Step 3: Know what you’re worth.

Step 4: Ask for it.