Step 1:

First thing the exec will ask is “hey, what is this so called *problem* i have?”. If you can’t define it simply and concisely, you’re out the door before you even put your latte on the table.

Step 2:

Now the big cheese is listening, offer up your solutions to the problem (3 is always a good rule of thumb) AND suggest what one you would go with.

Step 3:

• Make sure it is technically possible – if it cant be implemented, you’re out the door.
• Ok, you’re still in the game. Make sure it’s financially sound. If it costs $1m to fix a $100k problem, you know where you’re going…
• Nearly there: After all your bluster and rational thought, will this answer to the problem really work. You’ve built up some credibility if you’re got this far, so work your magic (now you can become a bit more subjective). Give it a 75% chance of success and you’re off to the races; less than 25% chance of success and you lose, find the door.

It’s time to get going on looking at some new business ideas. Here’s the process i’m following:

1. Generate Business Model(s) – Create different business model variations around my concept. There are 9 building blocks to my business (see list below) but I’m going to primarily test around the value proposition (VP) block.
2. Experiment – I’m setting up real life quick and easy (and cheap) tests to validate the hypothesis behind my biz models. i.e. i’m testing customer responsiveness – aka “customer need”. Online and offline.
3. Evaluate and iterate – as i gather feedback over the next few weeks i’ll add multiple new tests and tweak the hypotheses i’m running the tests against. Once this is done i’ll make a decision on how to move forward.

I’ve given myself a budget of $2,500 to test this model and it’s needs to be completed by end of May.

Here’s a list of the component parts in the business model process i’m using – there are nine. I created a short YouTube video for each (i’need to upload the videos but i have included one as an example). I’ve done this to help myself get understanding of the process because i’m trying it out for the first time. BTW – the concept of business modeling i’m using is from a book called “Business Model Generation” by Alex Osterwalder.

Here’s the 9 building blocks (you can see my rendition of this canvas at the top of the page):

9 Building Blocks to a Business Model

Here’s one segment (Customer Segment) explained in a video i created.

The business experiment concept i’m following is a mish-mash of ideas developed by Eric Ries (Lean Start-Up) and Steve Blank (4 Steps to the Epiphany).

I’ll post a video later about Business Experiments.

I’m looking for some feedback on my business model as i move forward, so please get involved. If you sign up for my newsletter, you’ll be added to the test group (see top right of this page to sign up).

Can I have some more?

I find myself frequently calling up people and asking for business help. Not only is it an incredibly good way to get advice and a new perspective but it is a great way to build a network.

For the most part people are really pleased to help, especially if i have been referred by someone they respect. Likewise, i get my share of people calling me for advice; i always try and make time to do this and be as helpful as i can. I dont claim to be the greatest expert on how to do this but being on both ends of the give-advise-get-advice conversation, i have some opinions on ground rules:

• Have a purpose – I always have some specific reasons for wanting to talk. There is nothing more annoying than someone you dont know calling and wanting to ramble on about nothing. Let’s face it, you dont know each other and non of us are in the market for new friends in the middle of the work day. Calling with a specific purpose helps me create a good tone for a conversation and lets the person being called shift gears and snap into the conversation they are having with me. Examples: “I’m having problems hiring quality sales people and i know you have built successful sales teams. How do you find good candidates”; “What’s your opinion on business plans. I’m currently raising money, do i need to write a business or will an investment deck be enough”; “What’s your opinion on hiring an good attorney, is it worth splashing out or do i keep it cheap”; and so on. If this goes well I have a good foundation for talking about the more personal stuff like wind surfing or dog-frisbee. I also like to make sure that i can succinctly describe my business and background in 3o seconds. If you need to create an elevator pitch this video is a great starting point (from Adeo Ressi @ Founder Institute).
• Set up a specific time to talk on the phone – I do not call cold, even if I have been introduced over email. The probability that I’m going to get a quality reception is small. Even if the guy answers my call, the chances are that he wont be in a good position to talk anyway (even if he says he is). He’s either just fired someone or he’s just lost his biggest customer. I like to set up some time over email – “Can we talk for 10 minutes if i call you at 10am monday 17th”. I always send a meeting request through Google as well (most the time people do accept it but its still worth it).
• Be respectful of time – If I say that I only want 10 minutes of the guys time, then I stick to it. It builds credibility and creates a good platform for future talks:  ”I said that i’ll only take 10 minutes of your time and we’ve been talking for that long now. Thanks for your help. Do you mind if i occasionally contact you if i have follow up questions”. People will always say if they want to continue.
• DO NOT ASK FOR MONEY THE FIRST TIME - There is nothing worse than the guy who says that he wants your advice and then drops the will-you-fund-me bomb. If you have to ask for money first time around; you better have an iron clad idea. In the rare case that i will be asking for money then i say this prior to the meeting. In my intro email I will say  ”I’m raising money and our mutual friend John says that you might be interested in a business like mine”. You can feel the energy drop out of the call if you spring this one unawares. Let’s face it, nobody is going to invest in someone they dont know anyway. Cultivate the relationship first and then you can ask for money. Another way is to say that you would like some advice on your investment pitch (make sure that you do want advice and you’re not just after money because trust me it’s obvious). This is a dangerous one so use it sparingly.
• Do your homework - Before I talk to someone i like to make sure that i know something about them. Their background, successes, current area of work etc. Not only is it courteous but it gives me an idea of what relevant advice i can seek. linkedIN is great for this, as is a good old Google search.

If you are not calling people for advice regularly then you should be. Every successful person i have met is an expert at this. By putting some thought into all this, you’ll avoid hanging up the phone with that cringing thought “why the f***” did i just say that”. Do not become Mikey…

This morning I visited the Center of Puppetry Arts in Atlanta with my two year old. The history of the Muppet Show was interesting (and fun).

Jim Henson’s story, as creator of the Muppets and numerous puppet characters, is captivating. Reading between the lines of how he created one of the classic and longest lasting icons of modern day entertainment, you can see a clear formula for successful.

• Need –TV commercials created an on-ramp for an old artistry to discover a new medium. It also provided a business model and a revenue platform for it to morph into an entertainment machine.
• Passion – the breeding bed for innovation. Strip it down and Henson did what he did because he loved it. This created the environment to discover, experiment and not so much ‘find’ a formula that worked – because this implies he was searching– but something found him.
• Innovation – Henson took the established puppet world and turned it on its head.  The technology vehicle of choice was TV and he used its production capabilities to deliver a total new and revolutionarily experience. Henson broke with the existing mold.
  

  Innovation through TV

• Branding – Muppets leveraged star power. By taking an old format – anonymous person pulling the strings – Henson created new way for the audience to interact with the people they knew. Puppet plus established star equaled something that would stick.
  

  A new Brand

Find what you will from this but it’s an interesting case study on how a business – and industry – grew from beginning to end and literally in front of our eyes.

I have an on going struggle.

In fact, I have a lot of them but one of the main ones is about how to share my time between digging around online, looking at new areas and translating that into specific activity. I’m paranoid about getting analysis paralysis; you know, becoming so insular and heady that trying to start a new business becomes an intellectual frenzy rather than something real life and practical. I got talking to an older successful guy yesterday and he told me he doesn’t use a computer, never has and never will. My God, how does he do business. Simple, the answer is relationships – picking up the phone and talking to someone (such a novel concept).

I just finished reading the auto biography of Andrew Carnegie, the steel magnet bloke from the turn of the nineteenth century. Don t even talk about computers, the guy wore a top hat and tails and used horse power for transportation. And no, he didn’t have a phone. So he did his networking and business face to face. There ‘s a rare concept. I remind myself of this every day. I’m reminding myself of this now because even writing here is making me ansi – it’s 9 am on a wednesday morning and i’m sitting here with a coffee and my dog on my southern wrap round porch stuck in my head writing something nobody else is probably going to read. Go and phone someone!!  If I’m not careful I find myself on the mouse wheel of continually looking at new business ideas (an addiction) and never moving anything forward. Your training gurus would probably tell me to spend more time setting my goals around a specific area and working towards solving problems around them.

True but here’s the deal so pay attention.  I respond well to the randomness of immersing myself in a topic area. There is something organic and essential to letting myself just wander (same reason why people stand memorized in front a weird painting in a museum) . It does something inside. Normally, reading a book or magazine article to focus my efforts on will start the process because reading someone else’s thoughts or experiences normally gets me to come up with my own questions   (I’m currently using the book Wikinomics).  This immersion allows me to become a domain “amateur” (the “expert” part can follow later). By learning just enough to be dangerous, I can create a good platform to speak with some type of authority when evaluating businesses. Most importantly, it lets me come up with the right questions when looking at opportunities. Questions are key to life. If i’m not coming up with the right questions when evaluating a business it normally means i’m not finding an intuitive fit for an area or the people i’m looking to get involved with. No questions = no chemistry = not a good business for me. When I went for lunch yesterday with a couple of Professors from Georgia Tech to talk about an elearning product,  I had a stream of questions – a feeding frenzy. These are good signs.

Here’s my list of things to investigate today. They are mostly based around the online learning and the growth of peer to peer & collaborative learning:

1.    Check out the California open source text book
2.    Set up meetings with the advisors of the elearning service I’m evaluating (face-to-face, very old school).
3.    Research some the collaborative news services out there. How they came to be and what makes them work.

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