Avoid writing a Business Plan

Recently I have been talking to a couple of people about the sense of writing business plans.

I have come to the conculsion that under certain circumstances it does not make sense at all to write one. Why? Imagine yoursef in a very competitive environment like Germany or the US for example. Time to market is crucial.

Nowadays it is easy for barely everybody with the right set of knowhow to become serious competition within weeks. At least if you live in a copycat environment like Germany. What a shame it is... Whatever....Time to market and the proof of concept is (in some cases) more important than having a perfect plan.

Can you afford wasting 2-3 weeks for writing something down you already have planned out in your brain? The answer is: No, not necessarily if time and money is -as usual- a factor. Just calculate the cost of it! 2 weeks of work....imagine the money you could earn with something else. I have seen people lose opportunities because they wrote a plan....omg.

What you need in order to skip the annoying task (at least if you don´t need investors) of writing a biz-plan:

1. Opportunity & vision: An awesome idea, team and concept. AAA everything. Then go for it. Asap.
2. Awesome financial planning and revenue stream flexibility.
3. Insider information from a trustworthy source.
4. You are extremely talented and hands on the job and you are not a perfectionist.
5. Pocket money, so you dont have to really care.

If you miss one of the above: Write your damn plan, but dont be a prefectionnist nless you have to be. Halfway down the road you will either have convinced yourself that the thing will fly for sure or you will have realized that its utter bullshit.

Bottom line if you want to source some money or you are a perfectionist nut-job: Write a plan for gods sake and risk losing the market. In all other cases: Good results are the best plan.


Cheers.M

P.S.:

Do not have it written by a third person. Outsourcing is good, but outsourcing your brain is plain stupid.
Keep it short and think what the reader wants to hear/values most. No fuss.
Never say you assume a 1% share of the market. Its bullshit. Every investor reading it will think you are a nut-job. i completely understand that.

Dare to disagree and lead!

I actually believe very strongly in this....a talk every entrepreneur shoud watch:


The other day I say a presentation about an inhouse project of a big company that failed big time. Waste of time for the most of it, but they learned a big chunk of lesson out of it.... It was a classic copycat of Google Wave, which was abandoned by Google some years ago. Wave was pretty much built about the assumption that dicussing a topic to death is a good ting to do when organizing a workflow or even for planning leisure activities. Total crowd-democracy.

I got a little updet during the presentation because I could not understand how some guys, who obviously had some skills going on there, could fall into an obvious trap. They were lacking the common sense of understanding the most basic mecanics of leadership and organizational behaviour.

I wont bore you with that, but the bottom line for me is: When starting a project you need to appoint a devils advocate, who asks the right questions beforehand or during the project...Does it make sense to start this? Is there a real problem we are solving here or do we just try to fix our own lack of leadership skills?

Most startups/projects fail by committing one of the following failures when starting a project:

1. Appointing a team to a problem that exceeeeds a headcount of 5
2. Assembling a team that does not involve all involved / partially touched departments
3. Not analyzing the problem well enough...not knowing where the real problem is. The root of the issue that has to be solved. Where is the biz?
4. "Nerd-Pooling" - creating a task force that consists of a homogeneous bunch of kids....that means skills, soft skills, and age/experience. You need a leader wo guides the discussion. Democracy is good for brainstorming, but for getting things done it is nonsense (most of the time)
5. Did somebody else already solve the problem for you and failed (Google in our particular case). Check if a problem was solved by somebody else already. These guys could have avoided wasting time by researching the stuff that is out there. Do your damn market research:

Bottomline: You need a plan and someone who thells the people the truth about that plan. Dont be polite when people are going the wrong way and you know it...! Help them to avoid a mistake. If they go for it anyways, screw it, theyll learn by their own means... Cheers. M

Brilliant Viral..."Museum of Me" by Intel

This is probably the best visualization of what is about to come and how the Internet is going to influence our life in the future...my dear girlfriend discovered it. Thanks hon!

Intel has launches a "Museum of Me" as a viral marketing campaign that highlights selected information based on your social pattern and habits. Sign up and check it out...impressive.

Since quite a time we have seen a lot of startups creating products based on your Facebook profile and account information - now this kind of stuff is used for viral marketing.

• Velveteenstories creates personalized comic cartoons based on your fotos
• Socialmemories creates a printout version of your Facenbook fotoalbums

Here is a nice video explaining Socialmemories...

And a lot more to come, lets see what the future brings, I can imagine a lot of applications for this model....

A new Dimension in Luxury-Yachting

Bored millionaires have a problem. A big problem. If you want to own an exclusive yacht, the choices to pick from have been boiled down to "the bigger the better" and some new designs that are revolutionary but somehow extremely expensive. This is over now, thank god (!)....

Amazing how obvious this business idea is... how difficult is it to own the most extravagant yacht on the 7 seas? Very difficult if you look at the market and try to spot big differences between all the Sunseekers out there...if even Russian billionaires are entering the boring race of "Eclipsing" the "Rising Suns" on this planet....wow. Here a list of the biggest private yachts on earth....spot the differences! It is embarrassing!!! We need a twist....

Yacht Island Design provides themed yachts. And I promise you something: by doing this they'll break the traditional market segmentation into bits and pieces of customized targets. Arabian, Chinese, European, or Tropical Island themes yachts are about to deliver the upper million on this planet a customized experience in owning a boat. Moreover, I see this as a potential product line of themed add-ons and details that assure modular up and cross sells...

...sorry I am getting overly marketing here but imagine approaching your customer after 1 year telling him that you launched an add-on island for your boat that comes with 5 jetskis and a fake beach you can anchor wherever you like. Modular sales follow-up, I love the idea...Think also about the interior options you can cross and up-sell on a yacht of this type...brilliant.

What about fashion?? Don't designers deliver customized jets, yachts and collections for catering the needs of the emerging markets? By launching new collections they achive repeats that are not known in yachting until now....it is a logical step towards the customers desires...

So the next time you see a yacht....shout "BORING"....and have a drink and thank my friend Deepak and "The daily mail" for digging this out...love it.

9 reasons to imitate - The late mover advantage

"A first-mover advantage is the position held by a firm for being first in a market or first to use a particular strategy," says Mundi. "A late-mover advantage is the position earned by firms that are late in entering a market, usually following the first movers and innovators."

I completely agree with the core idea of this statement taken from this article on INC.com, this is what I actually do all the time. It is never too late to replicate a working business model if it does not exist yet in a market. Being late nowadays often means being first. The article makes 9 points in favour of replicating existing business models and why you should actually do it. Here they are, and even if they do not all apply to all models, they are fairly well taken. I made some comments to give my point of view since it is an overly optimistic article...and you know I am a bean-counter:

1. Refining is easier - yep, obvious isn't it?

2. Benchmark your progress - think about the bizplan and the useful data for reference. Good point.

3. Spend you money better - so true, cut out non-value adding processes or activities!

4. Learn from their mistakes - same as point three for me...but true!

5. Remain nimble - depends...

6. Reserach better - depending on the hints you have you might, if you are transferring a service from one market to another you should never take things as researched by someone else.

7. Make yours better - yes, but I'd even say: If its worth it and more profitable, make it strip it to the core...

8. Learn marketing tips - yes absolutely, adds a lot of value and shortens the learning curve. But beware of the cultural differences in markets.

9. Get funded - yes definitively easier!

Related to this there are some good articles that are worth a read, I took them from the same magazine, Inc.com:

Does it pay to be late?

Should you be a copycat?

You see, there is another reason why I chose to operate in this way. You have to be an innovator or inventor in specific field to be successful and to hit the jackpot. I am an all-rounder and enjoy analysis of existing management organisms for replication in other markets, which requires a hell of a lot of marketing skills. That is a totally different type of entrepreneurship. No better not worse, just different. Cheers...

Your personal asssistant...Outsource it!

Being the boss is actually much easier than you think. Delegating is the key for success. Why don't you get your own personal assistant?

The other day I talked with one of my best friends about the topic and it came to my attention that this market is experiencing a hell of a lot demand. I bet that this is going to be a commonplace thing for enhancing your capacity to deliver in the work landscape. Here an article from 2005 that previewed the rise of the personal concierge...right on the money, but now we are going mass-market! Finally...

Check this video published by AskSunday to get a broad overview of the services.

AskSunday Virtual Assistance Service Overview from AskSunday on Vimeo.

I bet there are many people contracting these kind of services, but it may well be a hidden market. I bet nobody admits to be using it, especially within the corporate landscape. For as much as $180 you are able to add 20 hours to your productive hours. Each additional hour is $10...research, data entry, schedule tasks, appointments, telephone services. Whatever you want. Even your online shopping can be handled via India...get a flatrate and boost your productivity to reach that 4 hour work week you deserve...good book by the way!

More personal assistant services to come.... As it was logical for this kind of service we are starting to diversify into different niches. You'll be surprised how many biz models are potentially in there:

• GetFriday (160 hours a month for just $1120, that is a complete month....double your productivity!)...work related
• Lifes2short Lifestyle Management, more of a lifestyle service as it offers Vertu on its phones
• Guess what you can even outsource your online dating...just a nice example of where we are going. Pure specialization. I don't need it, but hey, what a fun business idea!

Problems and limitations: Language difficulties should not arise in languages like English or Spanish, however, if you try to contract such a service at such competitive rates in German you have no chance....Getfriday even had to shut down the service in German even though it generated money...here is a nice inside take on why they had to shut down operations in Germany. Good read! They could not find enough talent to cover the demand. Sad thing, or maybe another business startup will be covering that niche soon. I hope...

Have fun delegating.

Why you should abandon Smileys

Did you ever in your life receive a message with smileys?

If you are reading this here you are most probably somehow interested in business, as I am, and for sure that situation has happened to you:

"Hey could we postpone the meeting from 12.00 to 13.00h? SMILEY"

Not that I am lacking a certain flexibility towards nice intentions to cheer me up (even though I am German, 8 years in Spain soft-wash your judgement skills sometimes...) but honestly: I am at work, do you think it's fun? Do I look like I need some yellow dot with a face to do and love my job?

Anyways: What has a smiley to do in a business mail? For what the smiley, for good karma? For favouring a potential positive outcome? They want me to change opinion based on a little yellow round face? Want to introduce the "Like" button in business mails? What if my boss sees that I am a smiley-guy? Will I get to do the next important negotiation?

Don't misunderstand me, I believe communication between the lines is important, but do we have to drag the topic back to kindergarten?

"Please, please mom buy me some more candy, smiley!" will probably work for a misunderstood working relationship and kids below the age of 15, but one thing for sure: It should never be replied or influence decision making in business.

Ridiculous topic? not at all: Can you imagine that I evaluate business proposals and outsourcing decisions based on the amount of smileys I find in there? Hilarious, there are a rough 40% of companies in India, Pakistan, you name it for IT outsourcing, replying with fat round smileys in every 2nd sentence....Please do me a favour, do not work with these people...it's just like perfuming your CV and writing on your coverletter that you like people, but have no idea about business whatsoever . It's embarrassing.

Sorry for all of you who feel insulted, but these are my criteria and I am free to work by them. Especially men: Please don't, you lose credibility and fall into baby-talk category. Not only in business, I know no girl that would take you for serious if you use these things all over the place.

Please feel free to prove me wrong on this one...biz is biz, no hugging contest. It's fun like this, you don't need that stuff. Bye.

Nathan Myrvold of Intellectual Ventures - Modernist Cuisine

This guy is my cup of tea. Nathan Myhrvold left Microsoft after 14 years with some 100 Million USD in his pocket. So what do you do with an awful lot of money in your pocket? You start a Venture Hub.

Intellectual Ventures is an invention oriented Think Tank. However they do not focus on inventing with a certain commercial goal. They focus on scientific work and on inventing stuff that may or maybe not matter one day. The concept to problem solving the Myrvold-way is: dig out old patents, ideas, brilliant pieces of science and try to re-apply their use and functionality to modern life problems. Right, they are freaks, thats why Bill Gates pops by every now and then to see what is going on...Myhrvold used to be chief strategist and chief technology in Microsoft, so better keep in touch from time to time...

Lately they have come out with some stuff even I understand (better understand it completely rather than pulling the consultant, but understanding nothing about it...sorry I talk about 80% of all of you consultants out there, the later 20%: you rock!) and actually admire.

He published a book called "Modernist Cuisine" that features 2400 pages of modernist cuisine re-inventions, that in my opinion will become the next Larousse. A scientific bible for chefs all over the world. Check it out and watch the video of how he works on this years TED talk. It is fascinating how he uses non-conventional cooking gear like lasers, ultrasonic waves, or other rather to industrial production related tools to cook:

http://www.ted.com/talks/nathan_myhrvold_cut_your_food_in_half.html

You see, I post this because I honestly think that re-inventing existing processes can actually revolutionize an industry that is thought to be very traditional like this one. Nothing is impossible if you break the right rules (he got slapped by a spanish winemaker for pouring his best reserva wine into a mixer) and experiment with new models, the right ingredients and believe in change.

So sometimes it does make sense to dig some more and to be a freak....there are plenty of forgotten things out there, or rules that need to be broken in order to have massive success. Pick them up and start these projects, they pay off well....

Exit strategies...The Chatroulette disaster!

Unbelieveable to see how many people get overwhelmed by success and even frightened to cash in and exit a project.

Remember Chatroulette?

An unbelievably successful fad in my opinion. And guess what. The guy did not chash in and exit when it was about time to do so...

yes you are hearing right. How often did I talk with friends about it. We were imagining selling that thing off right after we saw the thing and the first naked freaks showing off body parts you did not expect to see.

A video filter would have fixed the stupid situation, but: with an awful lot of porn it was crystal clear that the unleashed beast would potentially scare investors (the good ones) off. And so it did.

So17 year old Andrey flew to New York, got offered millions, got scared and guess what. He did not sell, refused to take the offered bits and dimes and still runs it on his own. Ads cover costs he argues his wise strategy for growth. I just say, what a sad story...how can he feel ok with that?!

Andrey, you could have become a millionaire within a blink of an eye!

Maybe next time, the kid looks promising anyway. Lessons to be learned:

1. know your capabilities and potential to bring that thing to success.

2. Find the right people to make it fly.

3. If you see shit hitting the fan - run

Read the entire story on INC - How I did it. A good read for every once in while when you are getting bored of IT talk with Indians, or just need a good story to tell!

Please don't exit too late and enjoy or just start another project, there is so much interesting and promising stuff around nowadays...U have to LOVE browsing for other horses to bet on!

Cheers.

Incubators to Watch...

Hi, I have been shopping around. In theory, even if I can't afford that right now I think it is a pretty bright investment if you want to start up: A startup Incubator.

I am myself thinking about getting on board of one some time to give the biz the right boost and a good capital injection, but there are still some details about the whole concept here in Germany that make me wait a little longer.

Why should I look for investment and office space in an incubator if I can potentially negotiate a better deal for entering later when the beta version is on-line? I guess many start-ups are entering "the dragon" a little too early, maybe giving too much equity away in exchange for office space and "the right people"....depends on the project, of course...but think about it. If you don't need it to get beta going, don't do it... You need the right people from the beginning on: Yes, but if you cannot start it up to beta without help you are very likely to be useless for the project anyway s. I would not invest in you...

Here the Top 10 in the US to watch on Inc.com and some German/Austrian ones I dug out. Most specialize in certain areas regionally and more importantly in expertise to create better synergy effects...and most are run by some really high profile kids...check them out!

1.Rocket Internet

2.The Hub Berlin

3. Friends Factory

4. Backfabrik Berlin

5. 11 nets

6. Tech2b (Austria)

7. Nabru Ventures

8. Hack Fwd

9. Team Europe Ventures

10. Rheingau Ventures

11. 1st Mover

12. Beta Fabrik

13. You is Now

14. Hanse Ventures

Cheers, I'm off for weekend...or not...

The FB problem & Why Foursquare teams up with Daily Deal Sites

I have not been on Facebook for about 3 days now in order to focus on work. It is amazing how much more productive I am and that got me an idea of how important Facebook places is for Facebook. Makes no sense? Yes it does...

The Facebook Problem: Most of the time logging on to Facebook do not really bring an advantage to my life except of participating in the waste of time my friends are producing...sorry friends! The fact that I am still not experiencing a real disadvantage by not loggin on is a problem for Facebook and key to their success: God knows they are not profitable yet!

The key: They need to charge a fine for not logging on. Yes, I am talking about financial retaliation, a real disadvantage that arises for not logging on. You see, that is exactly what Foursquare does, its smart!

Foursquare is aiming to team up with Groupon in order to deliver customized offers to save money wherever you check in or are around... Imagine sitting in a cafe ordering one of these hilariously expensive coffees and the guy next to you pulls out his phone, checks in and buys a 50% coupon that he trades in with the cashier directly. Now it hurts eh?

There is also a nice Article about it on Wall Street Journal, check it out, its clear why Foursquare is valued 100 million, and maybe undervalued in my opinion....

Old things reinvented - The Panamore Example

Hi guys,

since I have been heavily surrounded by the topic food in the last time and all kinds of startups in that area here comes my big german newcomer favorite in online ordering.

What an easy idea that is, but highly disruptive, that is what I like...

Panamore delivers Pizza to your door. Sounds like old stuff, but has a little twist.

Its gourmet Pizza you assemble virtually online. Tell you more? Well, the stuff comes without cooking...even worse!

Stupid you say? Not at all, the service is over-booked and does not take orders since about 2 weeks. It is actually the best example of how very obvious things like Pizza delivery can still be innovated...many businesses are working like that and give tons of possibilities for new startups!

Here the key differentiatiors:

• More than 40 gourmet ingredients.
• Good for 21 days if cooled.
• Delivers B2B as well.
• DHL Shipping 5 € all over Germany in 24 H
• Pay via Paypal (a good idea for all these other home deliverers out there)

Copy this idea now in all variations and shades of complexity ! Looking forward to have it delivered!

Shopping the South Corean way: I love Tesco...

I love Tesco. Not only for their system for optimizing product rotation in the UK... they plan product distribution for certain products based on the weather forecast for each city: Think about it: barbecue-supply in sunny areas before the weekend starts....brilliant, this is the future.

Now they have hit another big one in South Corea: I really think that this is not only a funny way to do your shopping but also a great marketing tool in many ways...

1. Convert spare waiting time into shopping time
2. Boost sales by offering real-life touchpoints
3. A great marketing effort to promote your shop

The quote leavs no questions about the effect on sales: "During the campaign Home plus online sales increased by 130%, with over 10,000 customers trying the stores."


Here is a video that shows how it works:

Any imitators or other companies doing this? Yes, more than you think....Cheers.

Why so hard...

Hey, based on my experience: Blogging is a hard task, I'll add a mobile plug in to my phone so I keep this thing more updated than in the past. Best ideas actually come outside, that is so true....if it come to me, what about you?

See you soon!

Need a candle?

Hey,

found a 13 year old kid who produces candles that are targeted to the male market. Scents range from camp fire to Pizza..... Why do older guys like me not get across ideas that are that simple. For sure a great gift for fathers day.

http://www.man-cans.com

Maybe its just a bullshit idea, but why not taking this way of thinking towards a new stage of new products for men. Formerly known as a girl product men deserve more than candles targeted exclusively to the female market. Well done kiddo! You are a true entrepreneur! Work a little on the packaging and you could be king of this years x-mas. I'll get one!