Jeff Jordan: Entrepreneurship, Angel Investing and Life

Leaving FundingUniverse

2008-03-24T15:09:00.015-07:00

Today is my last day at FundingUniverse.

It makes me think of my first day at FundingUniverse -- in my bedroom office talking on the phone with some character named Trent Miskin, trying to figure out how in the world we were going to make money off a website with 30,000 pageviews/month and a not-so-well-thought-out "We'll just sell ads off of the hordes of traffic we'll get!" business model.

I loved those times. Anna and I were living in a home with a disabled man whose parents paid us to care for him. It was the ideal setup for an entrepreneur who wasn't going to get paid for the next six months.

Two years and as many business models later, FundingUniverse is much more than the naive dreams of a few rookie entrepreneurs. While we still have a lot to learn, Brock, Trent and I have watched a great team build our company into a growing, viable business that is providing real value to the world.

The future at FundingUniverse is bright. We just tripled our sales force and our subscription is converting at an average of about 3.5% with an average purchase price of about $200. The foundation for a great future has been laid.

I'm sure you're wondering why I am leaving if everything is going so well.

First, I'll say that it has nothing to do with the people I work with, or the strategic direction of the company. Brock, Trent, Josh, Michael, Matt, Lindsey and the rest of the crew are like family to me. They're smart, fun and the right people to take the company to the next level. There hasn't been a "falling out" a "philosophical difference" or any of those ridiculous phrases that mean, "We hate each other's guts."

My reasons for leaving have more to do with my desire, and doing what I love most.

After serving in many roles at FundingUniverse, I now spend most of my time managing the consulting arm of the company. The good news is that this part of our business is our biggest revenue generator right now, and it's growing every month. The bad news (for me, at least) is that consulting isn't very fun for me.

I've hired a few people who love consulting. They'll do a much better job than I could ever do because they're smarter than me and they love what they do. In the end, that's better for FundingUniverse, those who will take my place, and me.

What does get me excited is technology, and I was recently offered a product manager position with the baddest, illest, nastiest technology company in Utah. I've admired this company for a while now, and I feel like the timing is right to make a move.

The decision was a tough one for me to make. But, after soliciting advice from a few smart people, researching the careers of a few great entrepreneurs and some good ol' fashioned talking to God, I believe I've made the right choice.

Moving forward, I will remain an active and passionate evangelist of the FundingUniverse cause as an advisory board member. I'm looking forward to watching from the sidelines as FundingUniverse fulfills its potential as the place to find startup capital.

In the meantime, I'm pumped to tackle a new challenge and (hopefully) wreck shop in a new environment! I attended the Omniture Summit a few weeks ago and got a first-hand look at why nearly all of the Fortune 100 companies use Omniture software to optimize their web offerings.

Omniture is deeply, passionately focused on pleasing its customers and overwhelming its competition. It's the only "large" company in Utah where I could go and not miss out on the intense, yet fun environment that one feels when he is part of a smaller, more nimble company. Not to mention the fact that there is a gang of very smart people working there, many of whom will be collaborating with me on a daily basis. Working in that kind of environment will make me a better businessman and, more specifically, a better entrepreneur.

So here's to a great three years at FundingUniverse and a bright future at Omniture! This is going to be fun ...

My Digital Footprint

2007-10-25T11:21:00.000-07:00

It feels like ages since my personal blog has been part of my routine, but I'm still leaving my footprint on the web.

Here are a few ways you can follow what I'm up to:

My Twitter Account -- I tweet a few times each day. If you have a Twitter account and I'm not following you, let me know.
My Facebook -- Shoot me a friend request and I'll respond asap.
FundingUniverse Blog -- I usually blog here at least once a week on entrepreneurship and/or tech
My LinkedIn Profile -- Info on where I work and what I do there

FundingUniverse Speedpitching Video

2007-04-25T16:54:00.000-07:00

If you haven't been to a FundingUniverse Speedpitching luncheon, Joe Grover and the crew at Digital Mind Studios put together a killer video clip that is as much an advertisement for Digital Mind as it is a great depiction of the event. Great work, Joe!

Feeling the Crunch

2007-04-12T08:43:00.000-07:00

I've spent the past two months watching the FundingUniverse AngelReady programs ramp up extremely quickly. While the process has been nothing short of exhilarating, I find myself faced with a growing challenge -- a pressing, urgent, gut-wrenching responsibility to serve the explosively increasing number of entrepreneurs who are paying us to help them raise money.

It keeps me up at night. I have dreams that resemble a commercial from a few years back that featured a few people standing around a computer looking at an on-screen map as they launched a new product. At first, they celebrated as the first few orders popped up on the map. Then, as the number of orders on the map started popping up at an exponentially increasing rate, their celebration turned into panic as they rushed off to fill the orders. (If you can find the video, let me know so I can post it here.)

Fortunately, I believe we have the bandwidth to support the growth, so we're far from panic mode. However, I don't see an end in sight for this busy season at FundingUniverse. It's going to be a wild ride.

Pitching Angels: Sell Your Company, Not Your Product

2007-04-05T14:34:00.000-07:00

The next time you're pitching an investor -- whether it's in their office, at an event, on the phone -- repeat the following phrase 7 times before you walk in the door:

"I am selling my company, not my product."

Pitching an investor is not the same as pitching a customer. When you pitch a prospective buyer, you want them to buy your product or service. When you pitch investors, you want them to invest in your company.

As with a good sales pitch, you want to cover the strongest points of the product that you are selling. While pitching your company, the points that are most interesting to the vast majority of investors are the traction you've made (sales, patents, past rounds of capital, sales and sales), your management team, market size/need and your business model. If you can convince them that these four elements of your business are rock-solid, it doesn't matter what your product is. You're likely to find success raising money.

The tendency of most entrepreneurs is to spend the majority of their pitch telling the investor everything about his/her product -- how it works, how they thought of it, why it's better than the competition. Of course it's important to describe your product or service to investors, but it's should take up no more than 2/5 of your presentation.

Trent Miskin v. Jason Calacanis

2007-03-27T23:58:00.000-07:00

Just in case you missed it, Trent Miskin called out Jason Calacanis' critique of WeightLossWars and similar sites. His post prompted a defensive comment from the chief bloggerino himself.

Given that Trent and Chad are two of my best friends, I'm a little biased on the matter, so I won't chime in. However, I'd love to hear your thoughts.

D.A.M. Truck Tools Steals the Show!

2007-03-22T18:18:00.000-07:00

I get pretty excited about early-stage funding, but it's never moved me to tears until today.

Chris Culp, a Cedar City fix-it man without a high school diploma, won a $100,000 investment from an all-star panel of investors at today's Utah Economic Summit funding competition. Chris' simple concept, D.A.M. Truck Tools, went head to head with companies with millions in revenue, Harvard MBA/PhD leadership and stacks of patents. He won with passion, humility, elegant simplicity and good ol' fashioned Southern Utah charm.

He pitched his idea in a simple suite jacket and a pair of white cowboy boots. When angel investors asked him questions about his pre-money valuation, his go-to-market strategy and other semi-sophisticated terms, he answered with a simple, "I don't know.". He never tried to be anything more that what he was: a simple man with an extremely promising product and the humility to admit his weaknesses and ask for help.

After the event I spoke to a class at the Provo Labs Academy about raising money from angel investors where I relayed the story of what Chis had done. After I outlined the most important things an angel considers when looking into a deal a participant asked me how D.A.M. won despite appearing to be weak in many of the categories that are traditionally important to investors. Tough one to answer. I have never seen anything like this in my life.

I don't have any special insight form the investors, but here's what I think:

According to research, the most important element that angels look at in funding a deal is the passion and integrity of the entrepreneur. Chris clearly conveyed he had no hidden agendas. He repeatedly assured the investors that he had no business experience and was looking for a partner to handle all of the business side.
Because he has very little traction and showed a willingness to share his company, the investors recognized that they could get a lot of bang for their buck. They could have received 20% of a software company with $40 million exit potential or 60% of a company with $20 million exit potential.
His product is a slam dunk and the path to market is very clear cut. I think this was a huge factor. While the other companies were very strong, their path to revenue was less clear and that scares investors.
The white cowboy boots. 'Nuff said.

Before the event, I had several occasions to speak at length with Chris about his product and his story. The guy is solid gold and no one deserved it more than him. I look forward to following his progress and watching his American dream unfold.

Update: Here are a few stories from the local media on his success: SL Trib, Deseret News.

Utah Bloggers Conference Announced!

2007-03-21T07:54:00.000-07:00

Phil Burns announced the second annual Utah Bloggers Conference to be held on July 28th and 29th, 2007. Featured speakers include Robert Scoble and Jeff Barr, with more speakers to be named as the event draws closer.

With Philbert and Money running the show, and headliners like Scoble and Barr, I have no doubt that the event will be off the chain, hook, charts and heezy.

Case study: Humility is good business

2007-03-20T17:42:00.000-07:00

Today, I proved myself a hypocrite once again.

Part I

I spoke with an entrepreneur today who really rubbed me the wrong way because of his lack of humility and tact. FundingUniverse offered him a favor that he didn't necessarily deserve and he basically threw the favor back in my face by asking me to "sell him" on why he should accept our favor.

As a result our offer was withdrawn and now it may be difficult for this entrepreneur to raise angel capital here in Utah because his reaction to our offer indirectly insults the leadership of every angel group in the state (It's a long story, but trust me, it does.). Perhaps raising money in Utah isn't his goal -- I don't know. Regardless, his reputation in this area will take a major hit. And that stinks because this guy is an great entrepreneur with tremendous potential.

Part II

Fast-forward about four hours in the day to an important conversation with a new FundingUniverse team member who gave me some critical feedback on our business model. To make a long story short, the conversation was very difficult for me. I found myself foolishly defending decisions that I had sharply criticized weeks earlier in FundingUniverse team meetings. Why did I defend our mistakes? I lacked the humility to just say, "You're right. We were wrong. What would you suggest we do to solve the problem?" Now I have damaged my credibility with a valuable team member and wasted good problem solving time defending a moot point.

Part III

Here I am writing this post feeling sheepish for being a hypocrite, while hoping that the employee that I spoke with this afternoon reads this post and forgives me. :)

I've also relearned that humility -- not to be confused with sheepishness, cowardliness, or weakness -- is a tremendous asset for entrepreneurs who don't have time to damage relationships and defend past mistakes because of foolish pride.

Killer App: The Boss Button

2007-03-16T16:39:00.000-07:00

I laughed out loud when I used the Boss Button (see picture below) at the bottom of cbssportsline.com's live stream of the NCAA Basketball Tournament games. When you click the button, the streaming video screen turns into a page of charts and graphs, saving you from any negative consequences that may come as a result of your watching the games on the job.

I really wouldn't have any use for it because I would never watch any of the UNLV v. Georgia Tech game during business hours, but some people might. ;)

Breaking news: Congrats to Five GOED Finalists!

2007-03-16T08:30:00.000-07:00

Big shout out to the five finalists who will be presenting at the Utah Economic Summit for a shot at a $100,000 investment:

An ultra-big big shout out to all of the semi-finalists who all easily could have made the finals:

If I'm an angel in Utah, I'm licking my chops right now. All of these companies are fundable, in my humble opinion -- yet not the kind of humble opinion that should be construed as a recommendation. :)

Disclosure: Brock and I are very small share holders in Rahster/OnCampusSports, one of the finalist companies. We went out of our way to offer no opinion or vote regarding OCS's selection into the finals or semi-finals. In the interest of avoiding a conflict of interest, neither of us voted for OCS in any round of the selection process.

Paid v. Free v. Freemium and Company-wide Multi-tasking

2007-03-13T07:43:00.000-07:00

A couple of blog posts that made me say "hmmmmm" last week:

Blog Post #1

Josh Kopleman of First Round Capital started a great conversation last week with this post. Here's the meat:

The truth is, scaling from $5 to $50 million is not the toughest part of a new venture - it's getting your users to pay you anything at all. The biggest gap in any venture is that between a service that is free and one that costs a penny. I can't think of a single premium service that has achieved truly viral distribution. Can you?

Since then, Anne from GigaOm, Jeremy, David, and others ave chimed in with their take on the matter. I've blogged too much about free v. paid v. freemium lately, so I'll just let you check out their stuff. I'd love to hear your thoughts on the matter.

Blog Post #2

Hummer Winblad's Will Price wrote a great piece on the tendency of entrepreneurs to make their companies "multi-task".

Many of the entrepreneurs that we work with struggle with this issue, and I'd be lying if I said that FundingUniverse hasn't fought the tenancy to become all things to all people. Sometimes it's tough to focus when you're out to change the world, but it's imperative to do so when manpower, capital and time are scarce. Find the business model that provides the shortest distance between launch and cash flow, and stick with it.

" Oh yeah, I know him. I know him well."

2007-03-10T21:11:00.000-07:00

You've seen the "man law" commercials on T.V. where a group of ultra manly men declare the laws of manhood over bottles of brew. Well, I'd like to propose two "business laws":

1) Unless a person remembers your face, your name and your company, you are banned from using the phrase "I know him/her." in reference to said person.

2) Unless you regularly exchange email, have lunch regularly with or know the person on some sort of personal level, you are banned from saying that you know said person "very well".

I don't know how many times I hear people throw around the above phrases when the reality is the person they "know" is someone they shook hands with in a crowded room months ago.

All in favor ...

Traction Killed a Lot of GOED Applicants

2007-03-10T20:35:00.000-07:00

Trent, Brock and I spend a good part of our day today narrowing the list of $100,000 Funding Competition applicants from 100+ down to 20 finalists. I am amazed, but not surprised, by the number of quality businesses that applied for the competition. Congrats to everyone who applied!

A couple of observations from the selection process:

-- First and foremost, it is hard to overstate the importance of traction in raising capital from angels. Many of the applying companies had interesting ideas and capable management teams, but had made little or no progress towards making any part of their idea a reality. If you are raising money from angels, go out and do something -- sell a product, recruit a killer board of advisors, get a patent, raise money from your family and friends, get a beta tester, get commitments from a distributor, recruit a key team member ... you get the point. Your chances of raising capital will increase dramatically. All of the companies that made the final cut have done many of the these things.

-- If you are not a technology/biotech company, you can raise money from angel groups. One of the angels on the investment committee for the competition specifically stated that he and his group are looking for deals that aren't tech/bio. There are a lot more angels out there who fall into this set than you might think. Most of them have a little grey hair and made the money that they use to invest before the Internet existed. There are a significant number of finalists who don't fall into the traditional categories.

The final five will be chosen early next week. We'll announce the finalists in the FundingUniverse weekly newsletter next week.

A WeightLossWar is waged!

2007-03-08T08:58:00.000-07:00

My main man Chad Blodgett just launched WeightLossWars.com, a smokin' social network for people who are trying to stay fit and/or lose weight. It's already my favorite social network for several reasons:

1) Summer time is right around the corner and I need all of the help I can get to slim down to my 190 lb target weight. On WLW, I can ask my friends to help me lose weight by becoming my "motivators". That means that every day when I update my profile -- how long I worked out, how much I weigh, how far I ran, etc. -- they get an email that charts my progress.

2) I'm in sales and business development, so I love numbers. When I input my stats, WLW automatically generates a graph for me that charts my progress.

3) This is the first social network that I have convinced my wife to join. She's always been a hater of the 2.0 stuff, so this is a big step in our relationship. :)

If you want to get in on the comedy that is my attempt to lose weight, create a profile and send me a request for friendship. My profile name is jjordan.

Congrats to Chad, Blake and the Griffio team for teaming up to make this happen!

Devin Thorpe Gives a Little Love to my Home Town

2007-03-06T09:10:00.000-07:00

Devin Thorpe gave my home town -- Visalia, California -- a little love in his blog today. It's a shame that it's so expensive to fly there, because the San Joaquin Valley is home to some of the most agriculturally rich (and beautiful) country in the world. As I love to point out to my Floridian wife, in Central California we produce more cheese than Wisconsin and more oranges than Florida.

I'm also glad to see Devin visit my home town because that means there are a few Visalia "harvests" taking place somewhere other than the alfalfa fields. I'm actually good friends with the prospective client that Devin went to visit, and Devin will be sitting pretty if this prospective client becomes a success story. Good luck, Devin!

Does your seat float?

2007-03-02T00:16:00.000-07:00

I was trying to phase out the usual flight safety song and dance on my Delta flight to Denver tonight when I caught a very interesting piece of the presentation:

"Most of your seat cushions can be used as floatation devices ..."

Most of them? What are they going to say next -- "Most of your gas masks will work in the event that the cabin is filled with poisonous gas."? I spent a good portion of the flight looking at the passengers within sight of my seat thinking to myself, "I wonder if he's the one who's going to be mooching float time off of me and my seat if we crash into a body of water ..."

Social network + nice revenue stream idea = Shelfari

2007-03-01T10:10:00.000-07:00

Yesterday, I blogged about the fact that too many media companies, including social networks, launch with the fear of using something like a premium subscription model to augment their advertising revenue stream.

Shelfari, an Amazon backed soc. network, for book lovers, is a great example of a social network with a cool built-in revenue stream.

Users can post their "bookshelves" so other people can see what they have read and find other readers with common reading preferences. You can find reviews, post reviews, ask questions about books and ... drum roll please ... buy the books off of Amazon. Convenience for users, revenue for Shelfari. It's not rocket science, but it's cool.

As a user, I wish it was easier for me to buy books through Shelfari. I found a couple of books that I ended up purchasing, but it took me a while to find the place to buy. I want to be able to click on the picture of the book and have it take me straight to the page with opinions and the purchase button on the right. Otherwise, I love the site and look forward to helping them make money.

My profile name on Shelfari is jjordan. Feel free to find me on the site so I can learn about what you're reading.

Paul Allen has some Competition

2007-02-28T16:56:00.000-07:00

Paul once blogged that his core competency is his ability to type 55+ words per minute on his blackberry. He may have some competition in Bijan Sibet.

Fastest way to get to $50M?

2007-02-28T09:35:00.000-07:00

Jeremy Liew raised a great question on the Lightspeed Ventures blog this morning: What's the fastest way build an online media business to $50M in revenue?

Jeremy points out three strategies towards building enough traffic to reach $50M:

1) The Bebo.com/MySpace.com approach -- broad reach, not a lot of targeting.
2) The Facebook.com/Terra .com approach -- demographic targeting.
3) The Endemic Advertising approach -- create a website about cars that car companies would naturally want to advertise on, an electronics site for consumer electronics companies to advertise on, etc.

Jeremy I agree with Jeremy's ultimate suggestion that #3 is the best way to go of the three scenarios listed, but I think that the best way to get quick cash flow for an online media company is the subscription model.

I know it may be a little Web 1.0 to bring up subscriptions, but I don't know of another way for a media company to get to cash flow positive faster than with a subscription model. Augment your subscription service with a call center, and your conversions go through the roof and you're immediately bringing in cash.

In the long term, its all about automating the process so the call center fades out and margins go up. There's no reason to pay someone a commission on what a website alone can do. But if you want quick cash, subs with call support is where it's at. It also gives entrepreneurs something to help pay the bills while they build traffic and tweak their UI in order to generate more paid sign-ups and pageviews.

I'm not talking about a WSJ subscription model where you basically get no value out of the site unless you pay. I'm talking about a Pogo.com/espn.com/Skype model that gives you good service for free and great service for a monthly rate.

What do you think? Is the 1.0 subscription model broken, or are 2.0 junkies looking past a simple answer that has been under their noses all along?

Getting the Truth from Entrepreneurs

2007-02-23T16:03:00.000-07:00

Going to a networking event with entrepreneurs is a blast. As you go around the room, every entrepreneur that you talk to makes it sound as if their company is on the edge of world domination. "We're about ready to close a huge deal with ..." "Our partnership with so-and-so is starting to really pay off ..."

Of course, 90% of it is total garbage. Most entrepreneurs do not have the physical capability to say anything negative about their comapany. It's like asking a snake to tap dance.

If you want to hear the truth about a male entrepreneurs company, ask his wife. She'll give you the truth.

If you've ever been an entrepreneur leading a bootstrapped pre-cashflow company, you know what I'm talking about. Your buddy asks, "How's business?" You say, "We're stoked about what's happening and we're accomplishing some great things right now." Your wife says, "Yeah. He really likes it and he's having alot of fun. I just hope we get paid soon."

Nine times out of ten she isn't saying it maliciously, she's just telling the absolute truth without any of the fluff. When I began my carreer, Anna unknowingly did this to me a few times. I have since coached her on the art of entrepreneur-speak.

If I were an angel investor, I'd be on the phone with the spouse of every entrepreneur I was looking into financing.

Just in case a few VCs and angels read this and catch on to my idea ... all of you spouses out there, repeat with me, "Business is going very well. I'm excited about this month's revenue!"

My Under the Radar Picks for v100

2007-02-20T21:25:00.000-07:00

I got my link to the v100 voting page today. I love the v100. Going down the list of nominees is incredible. With all of the talent on the list, vSpring could easily make a v200 list.

I'd like to give a shout out to a few less-visible entrepreneurs who will be getting my vote. These guys might not be as visible as some of the usual suspects who will likely end up on this year's list, but are certainly deserving of attention.

Side note: I was looking at last year's list as I did my voting and I was a surprised to see so many VCs and prominent angels on the list. Something tells me that Alan Hall (one of the best entrepreneurs/investors in the state) won't be leaving Mercado Ventures, GUV or his board seat at MarketStar to " ... lead a successful venture as CEO or CTO in the next 5-7 years in IT or Biotech industries". I wonder if some of the voters understand the selection criteria. Sometimes the list looks a little more like a "Who's Who" list than what the criteria calls for.

Anyways, back to the guys I wanted to plug ...

Brigham Tomco -- The guy is a machine. He's a JD/MBA student at BYU, one of the editors of the law review, raising a VC fund for Cougar Capital, and all this while single-handedly building a company and a product that is gaining nationwide distribution. Once he gets out of school and focuses on one project, he's going to be a force to reckoned with.

Nick Mecham -- This recently wealthy technophile is one of the primary reasons that MaxStream is such a success. You won't find find him at a lot of networking events, but I'll bet you will find him as a CTO at a successful technology venture in the next 5-7 years.

Mick Hagen -- If you haven't heard of Zinch -- in the word's of my main man Stuart Scott -- you betta aksk sombody. Sharp young team and a killer concept. Even if Zinch doesn't fly like it has the potential to, Mick is a solid guy who will have his hands in successful ventures for a long time.

There are quite a few more entrepreneurs that I'd like to mention, but I don't want to give away all of my votes. Thanks to vSpring for making this happen!

David Cohen on the Boulder LivePitch

2007-02-20T21:07:00.000-07:00

David Cohen posted more info on the Boulder LivePitch. (We've changed the name because of the new format.)

Attendees in the audience will receive $100 of play money that they will use to “invest” in their favorite company pitch. Both the audience favorite and the investor favorite will receive prizes from sponsors like HRO and CTEK for their efforts. The big picture is that this is a great networking opportunity for investors, service providers, and entrepreneurs.

Speedpitching is Coming to Colorado!

2007-02-17T09:39:00.000-07:00

Had a great chat with Colorado mover-and-shaker David Cohen yesterday. David is part of the muscle behind TechStars and an active angel investor in companies like HyperSites and ClickCaster. I've been subscribed to David's blog since its inception and I'm a HUGE fan of the TechStars concept, which is why I'm glad that we'll be working with David to bring Speedpitching to Boulder in early March.

The event will be a variation on the Speedpitching luncheons we've held in Florida, Texas, California and Phoenix. It will be open to the public and anyone who has an business idea that wants to get feedback from a panel of real investors. There will also be some new crowd participation elements that will allow everyone in the room to "invest" in the ideas that they like the most.

As soon as we know who, what, when and where, we'll let you know. If you're an entrepreneur in or around or willing to drive to Boulder, register at FundingUniverse.com to receive email notification with event details.

Knowing When to Quit

2007-02-16T08:55:00.000-07:00

Will Price blogged a killer post that helps entrepreneurs and investors discover whether the source of their company's struggles is the market or the company. He points out a few ways that you can tell that your market is healthy:

Companies that are in healthy markets close enough business to:
develop a clear value proposition
build repeatable marketing, sales, and delivery models around common uses cases
know their top 2-3 competitors cold and see them in every account
are solicited for business
have real, active partners engaged in common customer accounts
have highly energetic cultures where the changes month to month are significant
can explain what they do so that almost anyone can understand
share a common mission that everyone in the company can articulate

When companies begin to fail, it's important for both the entrepreneur and the investor to determine whether or not the company can be saved. If failure is market based, no amount of money or resources or time can save it. Firing your VP Sales won't save it. It's best to just cut your losses and move on to another deal.

Perhaps this post will be most useful to those who are contemplating a startup and teetering on whether or not there is a market to sustain it. Be honest with yourself and let the numbers make the decision for you. No matter how passionate you are about your space, if there's no market, there's no customers. No customers, no company.

First-time Entrepreneurs Need to Bow Down

2007-02-15T21:29:00.000-07:00

I spoke with a first-time entrepreneur that I really liked today. He was passionate about his idea, he had made some serious sacrifices for his cause and he worked like a fool.

I feel terrible for the guy because I don't know if he is ever going to successfully raise money. He's been offered the amount that he's looking for on several occasions by more than one investor. But the dude is so set on raising money on his terms that he won't accept any others. His greed is going to kill the deal.

In most cases I believe that the best thing that a first-time entrepreneur can do when raising capital is bow down to most, if not all, of the terms that their investor lays out for him/her.

(Their are obvious exceptions to this rule; the most obvious being when you have multiple investors banging down your door to give you money. Or, if the terms of the agreement will hamstring your company's ability to make money. Ninety-nine point nine percent of entrepreneurs aren't lucky enough to be in the first situation, and the second scenario is pretty easy to spot.)

Greg Warnock wrote a great article for Launch Magazine (page 10) about his first investor and how his relationship with him has benefited his career. One of the reasons (not mentioned in the article) Warnock enjoyed such a lasting and mutually beneficial relationship with Jurgen Manchot is because Warnock basically let him have his way in his first negotiation with him. Of course, anyone who has negotiated with Greg Warnock knows that he would probably advise entrepreneurs to bow down to his every whim, but I'm sure you get the point nonetheless.

Losing a bit of equity on your first deal is not the end of the world. Your company not reaching its potential because of a few shares is. Give up a little on the first deal and reap the rewards in the future. The next time you raise money you'll come to the negotiating table with the strength of a successful track record, a solid relationship with an angel and the respect of that angel's network.

Unrelated note: Fred Wilson gives investors a little advice on being good negotiators here.

Valentines, Marriage and Business

2007-02-14T11:21:00.000-07:00

In the spirit of Devin Thorpe's post, here are a couple of things that can help both a start-up and a marriage:

Clear expectations

Business application -- Rather than saying, "Dave, I need you to take care of theproblem with the rating system?" try, "Dave, I need you to take care of the error code on the top of the rating page because we've had four customers report that they cannot purchase their ratings. If you could have that finished by tomorrow evening, that would be great. Does that work for you?" Give details, context, deadline and make sure they're cool with it. If you're the one being given the vague assignment, take responsibility for getting the full story.

Marriage application -- Not, "Honey, I need to be to work early tomorrow. Can you help me get the kids ready?" Instead, "Can you help me get the kids fed by 7am so you can take me to work by 7:15? I have a meeting with the board at 7:45 that's really important." I don't know how many times I've agreed to do something for my wife, only to find her doing the job for me a short time liater with a "My husband is an idiot." look on her face. I've learned that it's important for me to know when she needs something done so she doesn't feel let down when I finish blogging/make a phone call/wait until halftime to do what she asked.

Make time to get outside of the day-to-day grind with your partners

Business application -- Execution is HUGE for a start-up, so it's not uncommon to develop the tendancy to lock yourself in the office, only emerging for meetings and sales calls. Take the time to go to lunch with as many employees as possible each month. Get to know them, their family, their interests, their goals, their talents and all of the other things about people that make them so interesting and lovable. We do our best to do this at FuningUniverse and the results have been significant. I don't know how many times I've heard one of our employees say that the primary reason that they work at FundingUniverse is the people.
Marriage application -- Go on at least one date per week -- especially if you have kids. It's easy to get caught up in the day-to-day grind of "Wake up, feed the kids, go to work, come home, feed the kids, read a story, put kids to bed, clean the house, go to bed. Repeat." If you don't take the time to spend one-on-one with your wife, it's easy to begin seeing her as just another cog in your life -- the lady that helps you pay the bills and change the diapers. Continued courtship helps you see her as she really is: the woman who stood so far out above the rest that you decided to give her your heart, mind and life. A little corny, but nothing short of true.

What have you learned from business that has positive application in your marriage?

I wish we all spent more time blogging about this stuff. Employees with broken marriages are much less productive than those involved in healthy marriages. People with marriage problem are often distracted, grumpy and mentally tired. Besides, I think most of the people reading this blog would agree that no matter what kind of rockstar you are at the office, nothing can make up for failure in the home, and nothing will have a more lasting affect on your happiness.

One more thing now that I'm off my moral high horse: If you have any killer ideas for a Valentines date for a pregnant woman who may very likely be a little queezy tonight, let me know. I have something planned, but I think I can improve. Send your ideas to jeffbjordan at gmail dot kom.

Daily Inspiration

2007-02-12T11:19:00.000-07:00

Every Monday, Wednesday and Friday I wake up at 6am to get schooled on the basketball court by a man who has multiple sclerosis and is almost 20 years my senior. No, I'm not kidding -- and I'm not just saying nice things about him because of his developing condition.

The guy is an animal. We're on the same church league basketball team and he's among the league leaders in points, assists and free-throw percentage. The dude drops threes like they were free throws and he pushes the ball up the floor like he was being chased by Warren Sapp.

Guys like him just get me fired up about life and help me to avoid making excuses when I'm tired or frustrated.

Who inspires you?

FundingUniverse to Co-host $100k Business Plan Competition

2007-02-09T11:37:00.000-07:00

The other day I alluded to this ...

We're hosting the mother of all Speedpitching events in conjunction with GOED, Grow Utah Ventures and Newspaper Corp. Here's an article in the Trib all about it.

Basically, you can enter the competition by clicking here or going to FundingUniverse.com and submitting an executive summary. Registration is free and you have until March 6th to enter.

FundingUniverse will choose five finalists to pitch five Utah angel investors (and the audience) during a special session of the Utah Economic Summit on March 22nd. The entrepreneur with the best pitch/most prepared company gets an equity investment of up to $100k.

Big shout out to GOED and Governor Huntsman for supporting angel investing here in Utah. The Gov, who is doing a great job overall, has shown a lot of love to the VC community since he began his tenure, but not as much for the angels. This is a great step in the right direction.

Jeff Barr, Amazon Web Services Evangelist, Speaking Tonight!

2007-02-08T17:06:00.000-07:00

I know it's a little late, but I just got the following email from TagJungle CEO Phil Burns:

This is your friendly reminder for tonight’s Geek Dinner with Jeff Barr at Los Hermanos (in Lindon) at 6 pm!!

Jeff will be speaking to us briefly (about 5-10 minutes) to highlight the Amazon Web Services; the rest of the evening will be getting to know each other over dinner. Guests and spouses are welcome!

Thanks and hopefully we’ll see you tonight.

I won't be able to come because of a previous engagement that I can't get out of, but this should be a great event.

YouTube Founders Cash Out

2007-02-08T09:27:00.000-07:00

YouTube founders Chad Hurley, Steve Chen and Jawed Karim are very, very, very, very, very, very wealthy.

Paul Kedrosky posted SEC filings on his blog that show Chad and Steve pocketed about $340mm each, while "silent founder" Jawed walks away with a cool $64mm.

I can't get enough these guys. Every time I see video of them, I can just feel the "I can't believe how awesome my life is." bubbling underneath everything they say. Not that I blame them. Over the last year and a half Chad and Steve have been making about $621,500 per day. Not bad ...

Update: Here's a full list of the YouTube sale beneficiaries.

Thousands of dollars for your startup?

2007-02-07T14:37:00.000-07:00

If you're raising capital Utah, keep your eyes peeled for a big announcement involving FundingUniverse, the Governors Office for Economic Development, Grow Utah Ventures, and Newspaper Agency Corp.

Say What?

2007-02-05T22:14:00.000-07:00

Seth Levine recently posted on his irritation with people who do not speak in clear, direct terms.

It's a major pet peeve of mine and so prevalent I'm losing my ability to be nice about it. Perhaps it's a result of being a kinder, gentler society or maybe it's just because we've all sat through too many PowerPoint presentations or maybe we're all testing our political-speak skills, but whatever it is the result is the absolutely maddening trend of people not saying directly what they mean and forcing the rest of us to play 20 questions to tease it out of them.

Amen, Seth. Amen.

Hot Utah-based Website: ConvinceMe.net

2007-02-02T14:33:00.000-07:00

TechCrunch says --

"ConvinceMe.net is a new competitive arguing site [that allows] debaters carry out public debates, head-to-head arguments, and a "King of the Hill" free for all about any subject they like ... ConvinceMe lets members talk about anything and ranks them based on how many “convince” points they get from user voting for their argument."

Big shout out to Pleasant Grove's Brett Stubbs, the chief architect of ConvinceMe, for creating a super-sticky website that is seriously starting to eat into my productivity. (I've spent much more time thinking about and participating in the Superman v. Batman debate than I'd like to admit.)

It's no small thing to get an exclusive launch article from TechCrunch (Although, based on the comments in the article, there was a little misunderstanding between TC and Brett about the timing of the launch.) Having TechCrunch launch a website is the equivalent of a band landing a gig as the opening act for the Rolling Stones. Brett has garnered over 500 registered users in less than three days, and the number of debates is increasing rapidly.

One thing I'd like to see added to ConvinceMe is an email notification system that lets me know when someone has responded to my comment. That would instantly double the number of pageviews I contribute to the site.

Nice work Brett!

"Until we raise money, we're stuck!"

2007-01-19T16:44:00.000-07:00

When I hear an entrepreneur say that his company is "stuck" because he can't raise any money, I cringe because he's probably right. This statement, more often than not, is the outward expression of a mental/creative block.

The fact is that start-up companies are rarely "stuck" -- with the exception of most pharma and biotech-type companies that require a ton of R&D and ramp-up time.

For example, I spoke with an entrepreneur the other day who has a great web-based idea and relationships with the right people to help him make it happen. He has already done a ton of work on the project and he's ready to roll.

One problem -- His website (as he put it) is hideous. When you're a web-based company, that's bad. He can't afford to pay web designers to fix it for him, so he says he's stuck.

Not really though. There are web designers out there who will work for equity and little or no pay if the idea is right. It takes work to find them, but they are out there. If you can't find them, there are people on the other side of the planet who will design a good-enough-to-start-raising-money website for a few rubles a day.

That's just one example. Here are a few examples of entrepreneurs who understand how to make things happen without funding:

I spoke with a great entrepreneur the other day who set up a meeting with a few potential investors and convinced a local real estate office to host the event for him and provide his guests with lunch. The dude was so broke that he had to go to a friend's house to print up the last of term sheets because his electricity had been shut off.
A great entrepreneur right here in Utah was completely out of money when he convinced a publicly traded company to give him a $100k contract for a service he hadn't even created yet.
Carolyn Duncan's Hundred Dollar Business experiment

The skill is part hustle, part bootstrapping, part salesmanship and part gusto. Most of the time it's a skill that comes out when your back is to the wall and your only other option is to close the doors.

When entrepreneurs dig deep and find ways to push forward through the lean times, they often discover on of the most important truths of entrepreneurship: The best way to finance your company is sell stuff and have your customers pay the bills. It took me a while to figure that one out.

Bottom line: Successful entrepreneurs make things happen with or without money. If you ever find yourself thinking "Until we raise money, we're stuck!" you're probably right.

If you have any war stories about making things happen with little or no money in the bank, leave a comment!

There's Hope for the Rest of Us

2007-01-05T02:12:00.000-07:00

A while back, Chris and Matt went toe-to-toe about an article Matt wrote for Connect Magazine that advised readers to leave Utah and learn from the best in the Bay Area. While it is obvious that there is a ton of action in the Bay Area and a boatload of very intelligent entrepreneurs and investors, VentureOne's report on the the biggest VC exits of 2006 suggests that there is plenty of action outside of the Valley for the rest of us.

Here's a breakdown of the locations of the purchased companies. Note that only two of the top ten are from the Bay Area.

YouTube -- Bay Area
Flarion -- New Jersey
Xspedius Communications -- Missouri
Healthfield -- Georgia
CorSolutions -- Illinois
Corus Pharma -- Washington
Mobile 365 -- Virginia/DC
LANDesk -- Utah
GlycoFi -- Massachusettes
Wily Technology -- Bay Area

Congrats to the local boys from LANDesk and vSpring Capital for cracking the list at #8!

I'm originally from California and my job revolves around angel investors and VC, so you know I've got nothing but love for the Bay Area. However, I'm glad to be outside of the Valley learning from some of the best here in Utah.

Bill Gates is Sending me $1M

2007-01-04T16:54:00.000-07:00

Brock Blake said that I would get a million dollars from Bill Gates if I wrote a post about five things people don't know about me.

Here goes ...

1) I was the singer for a rock/roll band called Aberdine back in my glory days. We were kind of a blend between Johnny Cash, Pearl Jam and the Black Crowes. It was just something we did for fun, but we ended up selling about 1,000 CDs and playing enough gigs to pay for a couple months rent.

2) I graduated from high school with a 2.15ish GPA. Although I was able to rebound from my high school daze and obtain a university degree, I still have a bad taste in my mouth for university and high school education systems. Good things happen in schools, but not often enough.

3) My unfinished, non-air conditioned attic was the first headquarters for FundingUniverse. It was at least 90 degrees up there for most of the summer of 2004. Trent and I had some great meetings up there. Good times, good times ...

4) When I grow up, I'm going to a sportswriter. When I was in school, I covered BYU men's basketball for the Daily Universe and I loved it. I can't say I was very good at it, but if it payed better, I'd be doing it right now.

5) In 1996 I danced with Lauryn Hill backstage at the Smokin' Grooves tour stop at Fresno State University. Okay, maybe it would be more accurate to say that I danced very near her but she probably didn't even notice I was there. Either way, me and my buddy Brian Cotta sneaked back stage while Ziggy Marley was playing and found ourselves in the middle of a party with Lauryn, Q-Tip (Tribe Called Quest), Wyclef Jean (Fugees), Busta Rhymes, B Real (Cypress Hill) and about two dozen other crew members.

Bill, I'm waiting for my check.

I tag Chip, Chad and Josh.

Ryan Booher is a Ninja

2006-12-27T14:16:00.000-07:00

We just filled one of the sales ninja positions that I blogged about last week. Ryan Booher, one of the founding members of the Weber Entrepreneurs Association, has joined our team and we couldn't be more excited about having him on board. Ryan received a full-ride scholarship to Weber State University for performing due dilligence on Grow Utah Ventures dealflow, so he knows what angel investors are looking for.

There is still one sales ninja position available. Click here to learn more about it, or send me an email at jeff at fundinguniverse.com.

Jeff Barson, VCs and Snowmen

2006-12-19T10:23:00.000-07:00

You need to watch the video that Jeff Barson posted about the life of a VC. When you're done, you need to add Jeff's blog to your RSS feed. His posts are always money in the bank.

Great Job Openings at FundingUniverse!

2006-12-15T10:26:00.000-07:00

I'm looking for two part-time sales ninjas to join me in my quest to help more FundingUniverse members get involved in our AngelReady Membership.

I don't plan on heading up this project for much longer, so I'll need someone to come in, learn the ropes and take the lead in growing the team. The person I hire will be the third person in on this quickly growing project, so the opportunity to play a management role as the project grows is very strong.

Our sales ninjas are not telemarketers; our sales ninjas are consultants. Our ninjas need to have a deep knowledge of early-stage investing and raising money from angel investors. Before they pick up a phone, they receive in-depth training that allows them to make qualified recommendations to our valued subscribers.

To find out more about this position, click here or call me at 877.638.3616.

We will be interviewing from December 15th to January 5th. Those who submit their resumes early will receive special consideration.

And, no, you won't have to work out of my basement. :)

Don't Try to Reach me at the Office

2006-12-04T21:18:00.000-07:00

Brock and I were on a conference call with our rockstar advisory board last week and we received a clear message from them:

Focus wholly, completely, passionately, 100% on sales.

This is great advice for 90% of the entrepreneurs that we work with each month and it's great advice for us.

Up until the conference call I had been coming in the office to work each day and dividing my time between consulting gigs, business development, and developing the AngelReady sales program.

This week I have decided to take the board's wise council to heart and jump into the sales program 100% with no other distractions. I've set up shop in a small unfinished, unfurnished room in my basement with five things: my laptop, a Vonage router, a phone, a pad of paper. and a chair to sit on. (See pictures. The papers on the wall have our daily registration goals and results written on them.)

Results:

I've gained a deeper insight into the entrepreneurs that we serve and how to best help them prepare to raise angel capital, which has increased my ability to give meaningful feed back and training to our customer care team. This has lead to a vastly increased number of FundingUniverse registrants becoming AngelReady Members.
I am not distracted by the countless "little things" that go hand-in-hand with running a fast-moving company.
I've enjoyed lunch with my wife, Anna, and my boys, Jack and Brixton, every day. Can't beat that.

Even our CEO has spent substantial time on the phone with our members this week. I love it!

I don't expect to stay down here forever, but the exercise has been and will continue to be very instructive.

Adding a Human Touch to the Internet

2006-11-20T08:42:00.000-07:00

When we first launched FundingUniverse, we used LogoWorks (Highly recommended!) to find a good graphic designer. The entire sale took place online -- choose a package, enter your credit card info, done. It was a pretty typical experience up until that point.

Within 1/2 hour we received a 5-minute phone call from a LogoWorks representative who ensured that we understood the process and offered us a discount on another package, which we declined.

I couldn't have felt more valued by LogoWorks. It totally impressed me and taught me an important lesson that I have often overlooked:

People need people -- even on the internet.

Most internet companies shy away from adding a human touch to their user experience because it is too capital intensive. Understandable.

However, a growing number of internet companies have proven that adding a simple customer service phone call after the sale can increase customer retention and revenues.

Two of those companies are here in Utah County: Ancestry.com and Doba. Both companies increased their revenues many times over by adding customer service calls to their user experience. The massive number of subscribers that these companies have proves that the process is scalable -- contrary to what most online companies believe and practice. I have inside info that two of the largest subscription sites on the web have begun experimenting with courtesy calls to their new subscribers.

At FundingUniverse we're following the lead of these great companies by adding a human touch to our customer experience. Every entrepreneur who posts a business plan on our site has been receiving a courtesy call from one of our representatives to ensure that the entrepreneur understands what we do and how get the most out of FundingUniverse. The response so far has been fantastic.

Can you add a human touch to your internet business?

What other internet companies have added human touch to their users' experience?

Will you ever, ever, EVER raise investment capital?

2006-11-08T23:57:00.000-07:00

This past week, I've spoken to a handful of entrepreneurs who are trying to raise capital for the wrong reason: to avoid death.

It's unfortunate, because each of them are good companies with great business models. The CEOs simply got so busy running their businesses that they didn't start raising money until they were nearly out. Now they are raising money with absolutely no BATNA (best alternative to a negotiated agreement) to bring to the negotiation table. As soon as an investor gives them an offer, they'll have nothing to fall back on and are therefore much more likely to accept less than favorable terms.

Every entrepreneur should ask herself if she will EVER raise investment capital -- in six months, seven months, a year, two years, whenever.

If raising money is in your future, start talking to investors now and (prepare for shameless plug) subscribe to FundingUniverse's AngelReady Subscription to learn everything you can about raising angel capital. A combination of know-how, relationships, and (most importantly) execution on your business model will make you an attractive copmpany. Starting the process when you have plenty of ramp time ahead of you will also give you the ability to walk away from unattractive terms without risking death.

Angels Investors are Human Too

2006-11-06T23:49:00.000-07:00

Tonight I had an enjoyable dinner with Chris and Brock before Brock and I did a little guest appearance in Chris' entrepreneurship class at Westminster College. Chris must be inspiring his students -- they were all well-prepared with thoughtful questions and insights.

Because of time issues, we were unable to fully cover a very important element of raising angel capital -- the human element.

Angels vs. VCs

VCs have a strict fiduciary responsibility to their partners that -- unless you're Tim Draper, John Doerr, or Mike Moritz --leaves very little room for "gut instinct" investments. With few exceptions, VCs have to invest in proven companies with proven models or they risk disappointing their LPs and disappearing when it comes time to raise the next fund.

Angels, on the other hand, can be influenced by several factors in addition to their desire to make a good return on their investments. Here are three of them:

Moral obligations -- I once heard a prominent angel investor here in Utah say that his angel group decided to invest in a company because "the company deserved to exist". Translation: The company stood for something they all suported. Before you pitch to an angel, do your homework and find out what, if any, moral/religious causes he supports. If you can show angels how your company promotes their cause, you'll be in good shape.

I'm not encouraging anyone to take advantage of anyone's moral convictions. I'm just saying that you should do your homework before you pitch so you know which angels would make the best match for your company.

Peer pressure -- Frank Peters, an active member of the Tech Coast Angels, has confessed that he has closed his eyes and signed checks for companies simply because he trusted the other angels involved.

Part of this is the old "jockey and not the horse" philosophy applied to angel investing. Another part is something I've seen in many angel groups: If one or two influential angels in a group get behind your deal, odds are that a few others will follow for no other reason than they don't want to look stupid.

Personal interests -- A widget company posted a business plan on FundingUniverse.com for several months and received no contact or interest from angels until an angel who had used the widget in one of his favorite leisure activities got a look at the plan. A short time later the widget company was featured in the angel's angel group meeting.

The motives of angel investors vary from person to person. But if you do your homework and learn about the hidden forces that influence your angel's decision-making process, you'll find yourself in a much better position to raise money from them.

What do you listen to while you work?

2006-11-03T00:28:00.000-07:00

With the launch of the new and improved FundingUniverse.com, everyone on the team has shared the responsibility of rating the 3,000+ business plans already posted on the site. Fortunately, we use an algorithm that makes rating plans very simple because there are few subjective judgments to be made.

During the hours of business plan rating, I keep myself sane with a steady flow of background music. I've discovered that not all good music makes for good "work music".

For instance, I'm a huge hip-hop fan, but great MCs have a way of getting their rhyme style to the front of my mind and breaking my focus. Soundgarden is grunge at it's finest, but it's just a little too power chord/distortion heavy to allow for any free flow of thought.

I've been getting things done with Counting Crows, Fat Boy Slim, Ben Folds, Rascal Flatts and a mix of instrumentals.

What do you listen to when you work?

FundingUniverse Gets Facelift

2006-11-02T15:04:00.000-07:00

Tomorrow morning, FundingUniverse.com will have a new look and a new business model. In my unbiased opinion, there's nothing like it on the web or anywhere else.

Here's what's new on the site (I'll add links to the features when the site is live):

Every business plan posted on FundingUniverse.com receives a rating (0-4 stars) based on an algorithmic formula developed by angel investors.
Entrepreneurs can purchase their ratings details for a song and find out what they need to do to improve their business plan and thereby receive more views from angel investors.
Investors will be able to sort through plans based on rating, industry, amount sought, business model, sales channel, etc. Each time a business plan that fits the investor's criteria is posted on FundingUniverse, an email is sent to the investor (as long as he/she opts in).
Entrepreneurs will be able to subscribe to a menu of services including chats with angels, interactive webinars, VideoPitch capability, ratings details, consulting, etc.
Registration for both investors and entrepreneurs is still free.

Bottom line:

Prepared entrepreneurs will get in front of angel investors and find funding.
Unprepared entrepreneurs will have the opportunity to learn and improve their business at an amazingly affordable price.
Investors will have increased access to business plans that meet their preferences.
More deals get done.

Big shout out to the whole FundingUniverse team for putting together such an amazing service -- especially Matt Bradley, our product development alpha dog, and Trent Miskin, our fearless and sleepless CTO. Nice work, fellas!

Fortune's Ten-year Plan for Greatness

2006-10-25T16:21:00.000-07:00

Fortune Magazine reports that the following steps, repeated thousands of times, over at least a ten year period will result in personal greatness.

1) Approach each critical task with the explicit goal of getting muh better at it.
2) As you do the task, focus on what's happening and why you're doing it the way you are.
3) After the task, get feedback on your performance from multiple sources. Make changes in yur behavior as necessary.
4) Continually build mental models of your situation -- your industry, your company your career. Enlarge the models to encompass more factors.
5) Do these steps regularly, not sporadically. Occasional practice.

It doesn't matter how smart you are, how rich you are, or what natural strengths you have. Just do that for AT LEAST ten years, and you'll be a great one. The field is much more event than some of us may have thought.

Tim Sanders on BookJive.com

2006-10-25T16:06:00.000-07:00

Local internet prodigy Garrett Smith and the crew at BookJive have produced a podcast interview with Tim Sanders, author of local cult favorite, Love is the Killer App. Garrett has worked with us at Funding Universe in the past. I was impressed with his work then and I’m impressed with his work now.

Speaking of Tim Sanders, I am always amazed by the abundance of “lovecats” out there who are always seem to come out of the woodwork to help Funding Universe as we move into new markets across the U.S. Big thanks to all of those who have helped us make our mark and continue to do so. You know who you are.

Invest in YouTube? Nah ...

2006-10-13T08:47:00.000-07:00

Props to Josh Copelman who openly shares the fact that he passed up, or was passed up by YouTube in August of '05. Ouch ... Fortunately, Josh has played part in starting and selling a few very successful companies, including half.com (to eBay) and TurnTide (to Symantec), so no biggie.

When we were selecting entrepreneurs for our Silicon Valley Speedpitching luncheon, we almost pulled a Josh when we nearly passed up an entrepreneur who had started and sold two companies for $20M+. He company had board members who founded and/or lead companies like Skype, PayPal, and eBay.

Although he he was a great entrepreneur, there wasn't much to the PowerPoint he sent over. If it wasn't for some detective work on the part of our sleuth-of-a-CTO, Trent Miskin, we would have passed him up. I had nightmares that night about him blogging about some stupid company called Funding Universe that passed him up in favor of a company that franchises gerbil grooming shops.

Not nearly as big as passing on YouTube, but still funny.

Three Things:

2006-10-10T15:15:00.000-07:00

1) I am still alive. EnablingAngels took up all of my blogging time for a while, so my personal blog took a pretty big hit. I loved the opportunity to blog so prolifically on a subject that I enjoy so much, but the commitment to blog daily just became too much. Funding Universe is changing a lot right now -- look for a big change in the site late Oct./early Nov. -- and those changes have been very time consuming.

2) TagJungle is in the house! Phil Burns and his posse at 42co have been developing a hip new search tool that helps blog readers sort through the mounds of information in the blogosphere and find the most relevant information about topics that concern them most. What's cool about it all is that the information is sortable several different ways that no other search engine has done before. Phil and Jeff have blogged about it. If Phil and his crew can execute, his could be the coolest 2.0ish deal to come out of Utah in ... well ... ever.

3) Yepic. Go there. It's a cool site that allows users to post and sell their own content. I got to hang out with Corey Davis, one of the founders last week and really caught the vision.

Let's say you're a student who has taken copious notes in your biology class and you want to make a little extra dosh at the end of the semester. You can post your notes -- assuming it isn't against any school policy -- on Yepic and sell them to next semester's students. Professors could sell research, artists sell poetry, programmers sell code, salesmen sell sales scripts ... whatever.

It's great to be a blogger and it's great to be in Utah seeing all of these killer technology plays make noise.

Any other Utah companies worth talking about?

EnablingAngels.com

2006-06-20T16:58:00.000-07:00

It's time I came clean ...

I've been writing for another blog.

EnablingAngels.com is the newest member of the Know More Media network of business blogs and I've spent the past week-and-a-half writing its first posts. As you might have guessed, EnablingAngels covering angel investing and the companies that are funded by angels and angel groups.

Check it out and, if you think its worth a second look, give it a shout out on your blog and throw up a link or two. If you think it stinks, let me know how I can make it better, give me a little time to apply your feedback, and then throw up a link or two. :)

While there are a ton of great blogs that occasionally cover angel investing, as far as I know, there isn't another blog out there that is dedicated primarily to angel investing.

So if you're an angel or entrepreneur and you want to stay on top of the latest trends and events in angel investing, put EnablingAngels.com on your RSS and let me know what you think.

Interviews and Recruiting for Startups

2006-05-31T15:13:00.001-07:00

Matt Bradley, FundingUniverse.com's unstoppable Jedi Knight Sales Ninja, and I were chatting today about the dearth of conversation taking place about hiring and interviewing in start-ups.

We all know that one of the most important elements of a successful start-up is the team. The best entrepreneurs surround themselves with people that are smarter than they are. Every text book in every b-school in the country addresses the importance of getting "A players" on your team, but rarely do you find practical advice about how to find them and how to interview them.

Josh James shared some valuable "Hire slow, fire fast" advice at a MWCN luncheon I attended, and Paul Allen has some creative ideas as well. The Workforce.com daily newsletter has some great tips too.

Do you have any hiring/team building tips for entrepreneurs? What's the best interview question you've asked/been asked?

Free Lunch!!

2006-05-26T08:08:00.000-07:00

If you don't get a new idea or two out of these two links, I'll buy you lunch.

Intuit Fails Towards Success -- Intuit has a "Swing for the Fences" award for ideas that fail.

Nine Keys to Fostering Innovation (podcast) -- Speech by Marissa Mayer, Google's VP of Search (Thanks Trent!) Products and User Experience

Enjoy!

Rockin' the iPod

2006-05-24T16:24:00.000-07:00

I finally caught up with everyone else on the planet: I got myself a nifty little iPod mini, and I'm looking for a few good podcasts to put on it.

Here's a sample of the podcasts I subscribe to so far:

The Businessjive Podcast (Big shout to fellow ProvoLabanite Judd Bagley for putting on the illest business podcast on the web!)
The FundingUniverse.com Podcast
The Negotiation Tip Podcast
Venture Voice
HBR Ideacast

What podcasts are you listening to?

LinkedIn Kicks it Up a Notch

2006-05-23T11:01:00.000-07:00

Is it just me, or has LinkedIn totally stepped it up over the past few months?

The site is a great case study on harnessing the power of human nature to increase usership.

Every time a user logs in, she can see how many of her contacts have gained new connections. This simple feature makes the user frequent LinkedIn because

1) We're competitive. If so-and-so can add connections, so can I.
2) We follow the crowd. If so-and-so is actively seeking connections, I should be too.
3) We want to be seen. Everytime I add a connection, everyone in my network knows.

We are also insecure. We need to know that we are appreciated and important. LinkedIn gives its users quantifiable means of confirming their "coolness". If a LinkedIn user ever feels a tinge of self-doubt, he can look on his LinkedIn account and see 5, 50 or 500 connections that say he's cool.

We are lazy. LinkedIn's updated UI makes it insanely easy to add connections, solicit endorsements (Big shout to my peeps who gave me LinkedIn props last week!) and subscribe to premium services.

Anyhow, if you're into internet marketing and you haven't analyzed LinkedIn lately, it's worth a look.

(Speaking of LinkedIn, I got an endorsement from NimbleIt.com CEO Jeff Barson last week. In addition to being a great entrepreneur, my man is hilarious. Note: I haven't seen a single episode of Queer Eye, I haven't exercised in months, and my mother says I eat like a vacuum. Everything else in Jeff's endorsement is true.

Jeff is a muscular and powerful man. He would be an asset to any business if only for his keen sense of fashion. It's been rumored that he's TIVOed every episode of Queer Eye. Having seen Jeff at many functions with his hair standing on end, I avow that he chews with his mouth closed. Jeff's sense of humor is legendary, having a reputation for using a high-powered super-soaker to squirt every boss he's worked for in the crotch before important presentations. Work with Jeff and this could be you. (He also pays fast on Ebay.)

UtahBloggers Get Together

2006-05-19T16:36:00.000-07:00

If you live in Utah and you blog, you should be at the Utah Bloggers networking event on June 13th at the Larry H. Miller Innovation Center. The event will run from 6:30 - 9pm.

Based on what I heard, it's gonna be straight crunk.

Another Blogger Gives JetBlue Props

2006-05-03T09:24:00.000-07:00

So I was working on my laptop at JFK a couple of weeks ago and I had to step away from my machine for a moment. I asked the woman sitting next to me if she would watch my laptop until I returned. She seemed trustworthy (40-year-old Utah mom) so I kidded her about stealing my gear. Her reply was suprising:

"Oh, don't worry! You can trust me ... I'm a Jetblue employee."

When I returned, she couldn't stop herself from spouting off about the True Blue program (Jetblue's rewards program), how much she loved working at Jetblue, and how much she enjoyed her job.

How does Jetblue do it?

Brock Blake Cracks v100

2006-05-03T08:32:00.000-07:00

Big shout out to FundingUniverse.com CEO Brock Blake and all of the others who made this year's V Spring v100, a prestigious list of Utah entrepreneurs in the biotech and technology sectors.

I share an office with Brock, and I can say without reservation that my man is more than deserving of the recognition that he gets. Way to be, bro!

Angel Investors Rock!

2006-05-02T08:23:00.000-07:00

I gained a greater appreciation for angel investors at the Angel Capital Association's education conference in NYC last week. I blogged about it at the FundingUniverse.com blog.

Here's the link.

Angel Investors -- Save us from the bubble!

2006-05-02T07:54:00.000-07:00

For the past year or so, I've heard countless experts and analysts talk about the return of the internet bubble (Gasp!). They say that the stocks and valuations of technology companies are way too high and the whole thing is going to come crumbling down as soon as we all wake up and smell the coffee.

As a shareholder in a promising internet company, I fear the bubble. The last thing I want is to see the hard work of internet cowboys everywhere go to pot.

The burden of preventing the bubble from forming, growing and bursting rests partially on the shoulders of angel investors and VC's. As long as they continue to give reasonable valuations, the bubble stays safely full but not over-inflated. If they let things get out of hand, we can all consider ourselves Netscaped (read dead).

So to all of you angel investors out there: Please don't over-pay for internet companies. Don't let the Google/MySpace/YouTube excitement cloud good judgment. If you let things get out of hand, you lose money and our hard work becomes worthless.

Social Capital

2006-05-02T07:17:00.000-07:00

I propose that we ban the words "social capital" from our business vocabularies.

"Aquiring social capital" is a phrase I've heard used to describe the process of making friends with people in order to increase the size of one's business network, and therefore increase one's ability to do business with, and in some cases, connect others.

Every time I hear someone talk about social capital, I find myself questioning their motives with regard to their relationship with me. "Is this guy really interested in what I do, or is he just looking for another LinkedIn connection to quantify his social capital?" I don't want to be anyone's social capital. I just want to be partners, friends or both -- not just a notch in the belt of some social climber.

I'm not writing this post because I think everyone who has referenced social capital has a hidden agenda. In fact, most of them are awesome people with legitimate, sincere desires to help others as they grow their network.

Steering clear of terms like social capital simply eliminates the risk of potential friends misinterpreting your intentions.

Harvard Classics and Company Histories

2006-04-24T11:50:00.000-07:00

I'm almost embarrassed to report some of the books I've been reading lately. Most of them are bereft of meaning or deep value. Ever since I made the shift to sales and evangelism at FundingUniverse.com, I've had to brush up on my sales skills by reading such timeless classics as Selling to Anyone Over the Phone, The Sales Bible, and other riveting, paradigm-shifting pieces of literature.

In all seriousness, it's been great to get back into a sales state of mind. I'm enjoying it, and I think FundingUniverse.com will benefit from it.

One set of books that I have begun reading is called the Harvard Classics. It's a 50+ volume set of books that cover every topic under the sun. Volume I is a bathroom book of sorts that gives a brief synopsis of topics like ancient history, philosophy, fine arts, the colonization of the U.S., and a jillion others. Each section is written by a different Harvard professor. I feel like a real renaissance man every time I put it down.

I've also spent time each day reading from FundingUniverse.com's unparalleled collection of over 10,000 company histories. Great entrepreneurs learn from the best, and reading these company histories is a great way to do it. The collection includes the histories of companies like

HP
Yahoo!
GM
Hallmark

... and about 9,996 others. I know this is probably coming off like a shameless plug for our website (and it is), but these histories are a fantastic resource to entrepreneurs who are serious about learning from companies that have already made their way through the bumps and bruises of the start-up years. Check 'em out.

Team Focus and the End of Innovation..

2006-04-13T08:32:00.000-07:00

The other night I went to a gathering hosted by the Junto Benjamins. I had a few great points re-emphasized to me by a great speaker and conversations with a couple of great Utah entrepreneurs:

1) Bruce Jackson, a consultant and parallel entrepreneur, reminded us of the importance of a focused team with one clear mission. He illustrated his point by telling the story of a friend of his (we'll call him Bill) who worked at NASA during the 60's.

At the beginning of the decade, President Kennedy suggested that the United States " ... should commit itself to achieving the goal, before this decade is out, of landing a man on the Moon and returning him safely to the Earth." Kennedy's adminition gave NASA one clear-cut mission: By 1969, a man on the moon. Period.

NASA management reinforced the goal to their team so well that even the janitors were on board. One night Bill was walking out of NASA headquarters when he noticed a janitor down the hall performing his usual clean-up tasks. He called out to the janitor, asking him what he was doing. The janitor replied, "Putting a man on the moon, sir!".

It was a great example of getting an entire organization to catch a single vision and tie every task to that vision. When I have a clear vision and measurable goals that I am somehow accountable for, I work like a champ. Without them, I comparatively suck. Maybe you and your company can relate ...

2) At the party I spoke with a couple of rockstar programmers from an equally rockstarish company about the end of innovation. The gist of our conversation was this: Sometimes you just have to quell your innate desire to innovate, and just focus 100% on selling. In other words, stop adding bells and whistles and just freakin' sell what you have!

A New Direction

2006-04-06T09:50:00.000-07:00

A few years back, I played on a basketball team with a couple of 6' 10" towers that would drive me nuts. They roamed around the perimeter, launching threes and midrange jumpers instead of using their height in the low post where they were guaranteed a high-percentage shot every possession. Every time they took a jump-shot, I would think to myself, "You're good out there, but you could be great if you focused on your strength."

For the past year or so, I've been guilty of the same mistake.

Ever since the first time I read Paul Allen's blog, I've wanted to be a ninja internet marketer. I love the internet. I love statistics, making sales/conversions in my sleep, copyrighting, MarketingSherpa, and on and on ... And I feel like I've done a decent enough job using what I've learned about internet marketing to build FundingUniverse.com into a viable community of entrepreneurs and angel investors.

But like the center looking for his three-pointer, I haven't been focusing on my strength -- people.

By the grace of God, I have always been good at forming friendships and partnerships. I love being and talking with people. In fact, the gift of gab got me permanently kicked out of Golden Oak Elementary School in the sixth grade. (This blog's for you Mrs. Gipson! No hard feelings. It's water under the bridge.)

So, in his infinite wisdom, our "Top 40 Under 40" CEO, Brock Blake, asked me to move over to the position of COO/Chief Evangelist. In my new position, I will oversee the recruitment of new angel groups and entrepreneurial societies to FundingUniverse.com websites. I will also oversee FundingUniverse.com's sales efforts, recruiting and managing a small team of highly specialized, hard-hitting, killer-closing, Jedi Knight Sales Ninjas.

I'm excited to tackle this new challenge. At the same time, I know creating this new department is not going to be a cake walk. Nevertheless, I can hardly sleep at night I'm so stoked about it!

So, if you know any Jedi Knight Sales Ninjas, or mortal salesmen with potential to become a JKSN, let me know -- jeff (at) fundinguniverse.com. There's lots of work to do.

Another Blog about Alexa's Weaknesses

2006-03-30T14:35:00.000-07:00

Here's a SiliconBeat post about how Facebook is getting a raw deal from Alexa.

Help me Test my Alexa Conspiracy Theory

2006-03-30T08:15:00.000-07:00

I hate Alexa for the same reason that I hate the BCS: Neither of them give accurate information about the mid-majors. The information that it gives for the top sites is generally accurate, but the rest of us are basically judged based on how many of our users have the Alexa toolbar. Let me explain ...

Most internet marketers know that Alexa collects its information based primarily on the surfing habits of those who have downloaded the Alexa toolbar -- at least that's what I've heard from people that I consider "in the know". I've never done an actual test, but I've seen enough anecdotal evidence to make me believe.

How many of you have watched your Alexa ranking move in the opposite direction of your actual traffic numbers, for good or bad? I don't know how many times I have seen it happen for FundingUniverse.com and my very own blog. I'm not talking about minor discrepencies either. We're talking about days when actual traffic is abysmally low and Alexa rankings absolutely soar, and visa versa.

The sad thing is that internet pros actually depend religiously on Alexa for accurate info about site traffic. For the big dogs this is fine, but for us mid-majors the system is totally bogus and can be manipulated easily.

Anyway, I need all of you to help me get to the bottom of this. Here's how you can help:

1) If you haven't already, go to www.alexa.com and download the Alexa toolbar. The link is on the left side of the page, top of the coulmn. After the test, feel free to delete it.

2) As soon as you download it, post a comment on this site so I know how many participants we have. (Ths could expose me as a seriously unpopular blogger, but what the hay ...)

3) Visit my blog -- www.jeffreybjordan.blogspot.com -- twice a day for a week. Even if you read this via RSS, come to my actual site. I'll report on traffic changes all week.

I imagine that we'll only need about 20 people to make it happen. So if there are less than 20 people on the list when you put your name on the list, send this entry to a fellow internet junkie. I promise that this isn't just a ploy for more traffic. In fact, if more than 30 people participate, it would destroy my theory -- a few Alexa toolbars users and rankings go through the roof.

My current ranking is 1,013,689. I really think that if we get 20 people to do this, I honestly think I could easily break the top 500,000.

If I'm wrong, I'm wrong and you'll all know it. But if I'm right, maybe this little test can help mid-majors like us gain a little more respect.

Here's the Alexa link: www.alexa.com. Ready, set, go!

The Next Level

2006-03-21T10:57:00.000-07:00

When I was in college, I roomed with one of the best point guards in the history of BYU basketball. The guy had insane --and I mean insane -- handles. He was the singular reason that no team ever tried to run a full-court press on BYU from 1999-2002.

Sometimes he would try to teach me a few of his tricks and it would amaze me how many small details went into every ankle-breaking crossover, or an inside-outside fake. After a while I came to see that the biggest difference between him and I was the attention he paid to detail. Every detail of every step had been carefully studied and tweaked one at a time until the entire motion was perfect.

His attention to detail brought his game to the elusive "next level".

I thnk the difference between good internet companies and great internet companies is attention to detail. These days every company knows the basics -- consistant emails, simple interface, reinforced value, permission marketing principles, blah, blah, blah. Great internet companies do these things as a rule and they measure and test every little element of each tactic.

For instance, a good internet company is happy with an email newsletter with a large subscription base. A great internet company has an email newsletter with a large subscription base, a great click-through rate, a huge open rate, an effective viral element, news that customers care about, etc. Great internet companies don't get that way by accident. They get that way because they measure and track like it's going out of style.

We're trying our best to measure our way to greatness at FundingUniverse.com. You should be too.

Searching for an Online Ad Sales Ninja ...

2006-03-21T10:48:00.001-07:00

FundingUniverse.com is looking for a jedi knight, thunder lizard of a salesman to lead its national ad sales efforts. If you or anyone you know fits the description above, contact me at jeff (at) fundinguniverse.com.

Viva la Glue Guy

2006-02-27T09:21:00.000-07:00

(You can also find this entry on the FundingUniverse.com blog.)

Every great NBA basketball team has a ”glue guy”. The Pistons have Ben Wallace. The T’wolves have Fred “The Mayor” Hoiberg. The Showtime Lakers had Kurt Rambis. The glue guy is usually not the most talented player on the court, but he brings value to the team because he holds the team together with his hustle, passion, toughness, selfnessness and – above all — endless energy.

A few weeks ago when I was at my favorite burrito joint, I noticed the effects of a manager who is obviously his team’s glue guy.

The guy never sat still. He was a pure hustler. In the time that it took me to place and receive my order, he had wiped up at least a football field’s worth of countertop space, greeted and thanked every customer who placed an order, helped fill every order, mopped the floor and took a couple phone calls. It was unreal.

The coolest thing about it was the effect that this manager had on his team. Every burrito in the place was folded and stuffed by hands moving faster than a Las Vegas card dealer’s; and every employee did it with a look on their face that made me believe that they LOVED doing it. These people had obviously been infected by a glue guy, and had thus become glue guys themselves.

Start-ups need glue guys. You know the type — they come into the office ridiculously happy every day, sincerely ask how everyone is doing, and spend most of their time trying to make everyone’s job easier.

Glue guys can make their impact from anywhere on the organizational chart. Our glue gal at FundingUniverse.com is a part-timer named Sophie Barth who comes in for two hours a day. She immediately infuses the office with a boost of energy that leaves everyone energized after she leaves. Nice work Sophie!

Bottom line: Entrepreneurs, go find yourself a glue guy or gal. When you’re up to your neck in debt, on the verge of making your first big sale, or trying to forget all of the times your friends/mom/husband/wife has told you to get a real job, you’ll be greatful that you have a little extra energy — thanks to your glue guy.

The Executioners

2006-02-23T09:02:00.000-07:00

No, this blog is not a salute to one of my favorite DJ crews.

It's a salute to entrepreneurs out there who just flat get things done. In the words of my main man Stuart Scott, "Big ups to my boys!" (Especially Ryan Money, who's insightful blog post got the juices flowing for this entry.)

Sometimes I think us entrepreneurs get a little too much Godin on the brain, thinking that all we need to do is have a remarkable idea and go to networking events and people will somehow make their way to our website or buy our products.

Networking is very important, remarkable ideas are very important, and Seth Godin is a genius. These are facts. But ...

... behind every creative founder and networking CEO, there has to be a team of workers who execute. They are the ones building the site, meeting the deadlines, making the sales, answering the phones, driving the traffic, writing the copy, mopping the floors, driving the trucks, SEOing, and on and on and on. Without execution all the ideas are just thoughts, and the networking is just talk.

People aren't writing cutting-edge books about this because it's old news ... kind of an unspoken law. But it's just as important today as it was 1,000 years ago.

If anyone reading this has any recommended reading regarding the subject of execution, let me know. I'd like to see the unspoken law be spoken a little more often "lest we forget, lest we forget."

The Best Books

2006-02-22T10:25:00.000-07:00

I've read a few good books since Nov. 30th. Here's a breakdown:

The Big Moo - Seth Godin and the Group of 33

Good book to get the creative juices flowing -- something to release your inner Godin. Moo is a compilation of short stories, case studies, and inspirational thoughts written by 33 marketing/innovation hotshots like Guy Kawasaki, Tom Peters, Mark Cuban, and others. The book isn't the meatiest read out there, but it's the perfect bathroom book for marketing execs.

My primary lesson: The best thing you can do to market your company is do something that is "remarkable" -- literally worth making a remark about. If what you do doesn't shock, offend, uniquely entertain, inspire, or otherwise break from the conventional in one form or another, you're going to have a tough time breaking through the clutter to grab the attention of your potential customers.

Leadership and Self Deception -- The Arbinger Institute

(I think I'm the last person on earth to read this book. If you haven't read this book yet, let me know so I don't feel completely out of the loop.)

Fantastic read. Great combination of warm fuzzies and practical, applicable business know-how.

My primary lesson learned -- " ... we can sense how others are feeling toward us. Given a little time we can always tell when we're being coped with, manipulated, or outsmarted. We can always detect the hypocrisy. we can always feel the blame concealed beneath the veneers of niceness. ... It won't matter if the other person tries managing by walking around, sitting on the edge of the chair to practice active listening, inquiring about family members in order to show interest, or using any other skill learned in order to be more effective."

We all know people like this, and they all suck. I don't ever want to be that person.

Purple Cow -- Seth Godin

(See The Big Moo)

The 5 Dysfunctions of a Team -- Patrick Lencioni

Killer book. It's kind of a parable that illustrates and remedies the core issues that keep a team from functioning at maximum efficiency. Lencioni uses a fictional management team filled with personalities that we all can relate with to show how to fix a broken team, or improve a good one.

My primary lesson learned -- Conflict is good -- nay, conflict is very good ,as long as it is focused on ideas and not people or personalities. This is a tough lesson, especially for all of us in Utah Valley where "contention is of the devil". A good team should argue passionately about ideas and strategy. If no one argues, ideas are concealed, resentment builds, and the best ideas don't come forward. The author also points out that unless everyone on the team has voiced a strong opinion, not everyone can feel committed to the solution reached.

Words that Sell -- Richard Bayan, Phrases that Sell -- Edward Wertz and Sally Germain
Paul Allen recommended these books to me when we started creating a storefront for the FundingUniverse.com site. The titles sound cheesy, but these are great quick references for copyrighters.

My primary lesson learned -- Never underestimate the value of good copy. This book probably increased sales on our site 30%.

I've gotta bolt, but here are the other books that I've read recently that are worth a look:

Burn Your Business Plan -- David E. Gumpbert
All Marketers are Liars -- Seth Godin (Notice a trend here. I'm officially all caught up on my Godin reading.)
Inside the Tornado -- Geoffrey Moore

Jim Ericson Meeting

2005-11-30T09:32:00.000-07:00

Yesterday, I had lunch with arguably one of best internet marketers in the state, Jim Ericson. Jim was one of the first team members at Ancestry.com, and is a bona fide jedi knight of selling online content subscriptions. He is now working on several exciting projects with Infobase Media Corp.

Jim gave me some great pointers on selling online content. My time is short, so I'll just share two of the basics:

--When you sell someone a subscription, you are selling them a promise -- a promise that you will add value and content to their subscription every week so that the investment they made in your product will be worth more next week than it was when they started. If you can't do that, you shouldn't sell subscriptions.

--Constant contact is a must -- Don't start selling subscriptions until you have a solid e-newsletter in place. Once they begin their subscription, you need to constantly reinforce their investment by reminding them what a great deal they are getting. Let them know about new ways to use the information they are getting, use testimonials, tell them about new content, etc.

I'll have to to include more tidbits of info in a later post. Gotta run.

Thanks, Jim.

Interesting CEO Blog Stat

2005-11-23T10:14:00.000-07:00

Just got an email from WOMMA with the following info about CEOs who blog:

"Only 7% of CEO's are blogging and only 18% plan to start in the next two years. Those are the results of a joint survey conducted by PR Week and Burston-Marsteller.

Even though many CEO's are not blogging themselves, they do still continue to value them as a mode of communication. Other findings include:

* 47% called blogs useful for internal communications
* 59% called blogs useful for external communications
* 41% favor blogs for communicating news and ideas quickly
* 36% favor blogs for collecting feedback "

Here's a list of CEOs who do blog.

Mom, Entrepreneur Podcasts, and Motivation

2005-11-22T07:30:00.000-07:00

I was on the phone with my mother last night and, in passing, she mentioned that she is keeping up with how I am doing by reading my blog. For a moment I pictured my proud mother in a Relief Society meeting holding an open laptop with my blog on the screen, the same way most mothers hold open their wallets with pictures of their children and grandchildren. Then I thought it would be a good idea to to try and write something altruistic that a mother could be proud of.

So here goes. This one's for you, Mom.

I just learned about a great new website called businessjive.com.

The site is a compilation of podcasts featuring successful Utah entrepreneurs like Alan Hall of Marketstar and Will Marre, co-founder of the Covey Leadership Center. Tomorrow, the site will broadcast an interview with Overstock CEO Patrick Byrne.

There are a million ways to motivate people. I think most of us believe that nothing motivates people the way good people do. Every time I hear the story of a hero who has overcome tremendous odds to become very good and very influential, it motivates me more than any incentive or reward ever could.

I read about a great example of inspiring motivation at a (speaking of good people) Corporate Alliance function the other day. The following text is taken from a full-page ad published on Boss's Day 1994. The ad was paid for by the employees of Southwest Airlines and it was addresses to Herb Keller, the company's CEO:

Thanks Herb
For remembering everyone of our names.
For supporting the Ronald McDonald House.
For helping load baggage on Thanksgiving.
For giving everyone a kiss (and we mean everyone).
For listening.
For running the only profitable major airline.
For singing at our holiday party.
For singing only once a year.
For letting us wear shorts and sneakers to work.
For golfing at the LUV Classic with only one club.
For out-talking Sam Donaldson.
For riding your Harley Davidson in to Southwest Headquarters.
For being a friend, not just a boss.
Happy Boss's Day from Each One of Your 16,000 employees!

Only one "thank you line" out of thirteen has anything to do with the success of the company, and not one has anything to do with pay.

Don't get me wrong -- If a company can't pay people, it certainly cannot motivate them. We are all in business to make money. To forget that fact is to commit organizational suicide.

But, when it all boils down, people are motivated best by good people. To forget that is morally and interpersonally destructive and will keep your organization from peak performance.

(How was that, Mom?)

Here's to the Free Press Release!

2005-11-17T09:49:00.000-07:00

Yesterday I was sitting at my desk pounding out an email when I received a call from a writer for Worth Magazine, a publication for the rich, based in NYC. She said that she would like to do a feature article on FundingUniverse.com in a forththcoming issue. After a twenty-minute interview, I asked her where she first heard of our company. She said that her boss handed her a press release that we had written a couple of months ago when FundingUniverse.com reached $250 million in available capital.

The best part: All of this exposure hasn't cost us a dime!

For the past few months, FundingUniverse.com has regularly published press releases on free press release distribution sites like PRWeb.com, PRLeap.com, and PRZoom.com and others. If your company hasn't been doing this, start now. It's a easy way to get your name out and give a PR intern valuable experience. In addition, press releases that include links to your site help SEO and increase the chances of your company showing up on someone's blog.

Anne Holland on Email Marketing

2005-11-04T16:21:00.000-07:00

If your business has anything to do with the internet and you haven't subscribed to MarketingSherpa's free daily newsletter for internet marketers, do it now -- on a new browser, of course.

I just purchased the transcript of the MarketingSherpa "Selling Subscriptions to Internet" summit -- best $195 I ever spent.

Sherpa's publisher opened the conference with a killer presentation on email marketing.

Here are a few highlights:

One of the most read emails you will send your customers is your "Welcome" email -- the one they receive when they register on your site. Make sure you include something in the welcome email that will entice them to return to your site, like a coupon, the first issue of your newsletter, or a free sample of your product. Better yet include some sort of offer that the new subscribers can send to a friend.

RSS is still in its infancy -- 3 million users -- so don't kill yourself trying to reach RSSers just yet. Stay up on developments, but don't make it a priority.

You have 8 seconds to cath the attention of your users, so simplify your emails. More is not necessarily better. If you are going to include a picture in your emails, make sure you have important text in your email right next to it, because a huge percentage of your readers wil go there first.

Duke University Alumni Association sent "update your info" post cards to their alumni when their email addresses started bouncing back emails from Duke. Worked like a charm, reduced churn like crazy.

In the interest of staying on the right side of copyright laws, I'll stop there.

Think Digital, Act Analog

2005-11-04T15:41:00.000-07:00

I'm following the lead of FundingUniverse.com CEO Brock Blake and posting an email that I sent to the FundingUniverse.com marketing team last week.

"Check out yesterday's stats:

20 new investors, $8.8 million in new investment capital, 44 new entrepreneurs, 23 new business plans

Boo-ya!!

These high numbers are likely due to our new "open door" policy:

1) Our toll free phone number was listed in our email to over 3,000 entrepreneurs. At least 20 of them called yesterday, giving us a great opportunity to create a relationship with each of them, receive valuable feedback, and sell them our other services.

2) We now call every investor who registers on our sites to a) Welcome them to our network b) Encourage referrals c) Confirm that they are accredited investors d) Obtain feedback

The lesson in all of this: Think digital, act analog. Guy Kawasaki uses this phrase in Rules for Revolutionaries when he encourages internet companies to use technology to enhance, not supplant personal relationships with their customers.

I think yesterday's experiment is proof that Kawasaki is right, and that the root of good business is still in one-on-one relationships."

SpeedPitching in Provo

2005-10-12T10:54:00.000-07:00

Utah entrepreneurs looking for start-up funding should check out FundingUtah.com's SpeedPitching Luncheon on November 8th, at the Provo Marriott at noon.

The first ten entrepreneurs to register will give five-minute pitches to 10 tables of 3-5 accredited angel investors, rotating in a "musical chairs" fashion. After the event, investors may inquire more or the entrepreneurs at designated tables situated around the room.

You can register as an entrepreneur or investor by visiting http:www.fundingutah.com/speedpitching.

This will be the first of many similar events hosted by FundingUniverse.com sites across the country.

Great Resource for Marketers

2005-09-30T07:21:00.000-07:00

Every day that I don't learn something new that is pertinent to my profession, I am creeping one step closer to becoming obsolete.

This week I found a great way to fight obsolescence.

Infinity Broadcasting offers daily free streaming audio of fantastic keynote addresses by a variety of marketing gurus. This morning I listened to a great speech by Seth Godin that was delivered just yesterday afternoon. Today at 9 a.m., I can listen to a speech by Becky Saeger, EVP Marketing at Charles Schwab.

A successful entrepreneur I know fights obsolescence by attending an industry conference at least once a month. If you don't have the budget to follow his example, this is the next best thing.

Hard Work Report

2005-09-24T00:21:00.000-07:00

Well, I said that I would come back and report on my week. Well, its 1:21 AM (at least that's when I started this post) and I just finished preparing a presentation and writing a press release for our fine website for angel investors and entrepreneurs. That puts me at 65.5 hours of work this week.

I'm not doing this to brag. There are probably a million people out there working much harder than me, and a couple of them are probably reading this right now thinking terrible thoughts about me.

Regardless of any terrible thoughts, when you're a dumb rookie the only advantage you can have over your competition is your ability to work like a slave. Not everyone has the natural business savvy of Warren Buffet or Bill Gates, but everyone has it in them to work harder than anyone else in their organization.

I think it's important to note that working like a slave does not require one to abandon his/her responsibilities to family, church, and self. It does, however, take a lot of creative time management; i.e. waiting until your wife is asleep and sneaking away to the study to get a few extra things done, properly utilizing every trip to the men's room, waking up extra early to work and then helping your wife get the kids up and fed, and then returning to work.

What creative methods of time management have you used to balance work and family? Please post.

Good Old-Fashioned Work

2005-09-19T06:20:00.000-07:00

Since my mixed experience with The New New Thing, I've done a lot of thinking about good old-fasioned hard work.

I've never heard of a start-up making it big without the entire management team and most other key employees logging 65-80 hour weeks for the first year or two -- which lead me to the following epiphany:

Most emerging growth companies know that measuring key metrics is key to success. Sometimes I think we overlook the most basic metric: hours worked. This obviously isn't a problem with workers that are paid on a per-hour basis. But what about your management team? Do you know how many hours your CTO put in last week? Do you know how many hours you put in last week?

Thomas S. Monson said, "When performance is measured, performance improves. When performance is measured and reported back, the rate of improvement accelerates."

So here's my suggestion: This week, keep track of your hours like a lawyer would. (Don't worry; this is the only time I will ever suggest doing anything like a lawyer.) A lawyer can go to work every day for 15 hours and not get paid. Simply showing up and going through files/surfing the net/going to meetings doesn't bring home the bacon. A lawyer is only paid when s/he is providing a "billable" service for a client. The hours spent helping clients are called "billable hours."

How many billable hours are you logging each week? How many hours are you spending each day doing things that are adding value to your company?

Every day do an honest evaluation of your day's work, and log how many "billable" hours you put in, and tell someone that you're doing it so you can report to them. If at the end of the week, you're not logging 65-80 hours, based on what I have read, the chances of your start-up becoming an inspiring success story are slim.

Obviously, this isn't the only important metric. If you are working like a slave, but your work is focused on the wrong thing, you need to rethink your strategy. However, measuring work ethic is important and I think it is often overlooked by many start-ups.

Am I wrong here? Have you ever heard of a mega-successful company that succeeded with anything less than 65-80 hours/week? If so, please tell me.

Troubled Outlook?

2005-09-19T06:04:00.000-07:00

FundingUniverse.com CTO Trent Miskin added an entry to his blog that could save techies everywhere hours each week: simple instructions on how to set up an account on Microsoft Outlook.

All of you non-technical types, before you put yourself on your programmer's bad side by asking him/her to set up your Outlook account, go to this page. You might also enjoy his post about the importance of angel investors.

FundingUniverse.com Hits 300/2000 Mark

2005-09-13T15:28:00.000-07:00

This afternoon the FundingUniverse.com staff was partying like it was 1,999. Then we hit 2,000.

Today FundingUniverse.com hit two impressive milestones in one day: 2,000 registered entrepreneurs and 300 registered investors.

As if that wasn't good enough, our Utah site was featured on the front page of one of my favorite business magazines, Connect Magazine.

Thank you, Connect Magazine, and, more importantly, thank you to the thousands of entrepreneurs and angel investors who are using FundingUniverse.com websites.

Truman Doctrine Follow-up

2005-09-11T21:21:00.000-07:00

Last month, I blogged about the virtue of patience in business as illustrated by Harry S. Truman.

It turns out that stealing Truman's philosophy was a good move. I held off on creating the department and can see now that if I created the department in July, I would have wasted a lot of time and money. We have changed direction and need only half the staff that we needed then.

Now, we have the right number of the right kind of people. The "airlift" is over and we're about to turn a major corner at FundingUniverse.com.

Thanks, Harry!

New Blog on the Block

2005-09-11T20:40:00.000-07:00

Utah businessman and Junto Partner Brock Blake started keeping a blog a few weeks ago. You can find it at brockblake.blogspot.com.

I was fortunate enough to spend about six months working on a project with Brock. He's a fantastic businessman and leader. You'll enjoy his blog.

The New New Thing

2005-09-11T14:44:00.000-07:00

Most people in the entrepreneurial community consider Jim Clark the greatest entrepreneur of all time. He is the only person in history to start three multi-billion dollar companies -- Silicon Graphics, Netscape, and Healtheon. Last week I finished reading Clark's biography, The New New Thing, by Michael Lewis.

I came away from my reading with mixed feelings. One one hand, Clark is a gutsy genius who deserves all the attection he has garnered for being an otherworldly businessman and inventor. If I had half the brains and foresight of Jim Clark, you would be one of hundreds of thousands of people reading this blog. Things as they are, you are probably one of dozens. :)

That being said, I wouldn't recommend this book to a colleague for two reasons

1) The "hero" of the story is portrayed as a greedy jerk. (Disclaimer: I say "portrayed" because I don't know Jim Clark from Adam, and for all I know he's a class act.) The Jim Clark that Lewis describes is a greedy, foul-mouthed, self-centered person. At one point in the book, Clark is described by a friend and business partner as having "a clarity of vision that is prompted by the purest form of greed. Nothing clouds it."

Call me idealistic, naive, self-righteous, whatever -- but I'm a real "Kawasakian" type of guy who sincerely believes that the best kind of success is rooted in a desire to change the world and help other people. Greed just doesn't do it for me.

2) When I read a business book, I generally read for one of three reasons: 1. To learn a new skill 2. To be inspired 3. To be entertained. The New New Thing doesn't really teach a skill and, as noted above, the main character of the book isn't very inspiring.

To top it all off, the book didn't really hold my attention very well. Throughout the book, Lewis abandons the most exciting element of the book (the creation and sale sale of Clark's three multi-billion dollar companies) in favor of chapter upon chapter describing Clark's silly side project (creating the first-ever computer-run boat) that never amounts to anything.

That said, I wouldn't say the book was totally bereft of value. The New New Thing illustrated the insane amount of work it takes to run a successful start-up. Throughout the book there were references to programmers who basically lived in their cubicles, working 20-hour days. Some of the Indian engineers who worked with Clark went so far as to send their families home to India so they could focus! I'm not an advocate of families falling to the wayside in the interest of business, but the example o f Clark's programmers has helped me kick it up a notch in my worklife.

So there you have it.

Local Boy Does Good!

2005-08-29T16:15:00.000-07:00

BYU computer science professor and tech guru Phil Windley has cracked the Feedster 500, a monthly listing of the top blogs on the web, with his Technometria blog. You'll have to scroll down to the very bottom of the page to find it.

Congratulations, Phil! Way to represent Utah in the blogosphere!

VoIP Question

2005-08-24T22:38:00.000-07:00

I'm going to set up VoIP accounts for FundingUniverse.com's online ad sales team members this week. The only people I know with VoIP use Lingo, and they all report that it is common to experience occasional glitches.

Are any of you using a VOiP service that hasn't given you any trouble?

If so, let me know. I need your recommendations.

"Hustle, Passion, and Resiliency"

2005-08-20T22:30:00.000-07:00

Firepoll CEO Will Allred had a great post on his blog, commenting on the Jason Calacanis theory that business is all about three basic elements: 1) Hustle 2) Passion 3) Resiliency. These are definite must-read articles for entrepreneurs looking for a secret to success that doesn't require an MBA.

In an interview with the Harvard Business Review, Dell hotshots Michael Dell and Kevin Rollins support Calacanis' theory by suggesting that their company's success is due mostly to consistent, disciplined execution -- the natural byproduct of the three virtues mentioned above.

Here's the quote from the article:

"HBR: The elements of the Dell business model are no secret: going direct, information over inventory, world class manufacturing, and superior customer information. Everybody knows these, so why haven't other companies been able to copy your model or beat you at your own game?

Rollins: The same reason why K-Mart can't imitate Wal-Mart. What Wal-Mart does isn't rocket science - it's retailing. Why can't everybody be Wal-Mart or JetBlue or Samsung or whatever the best company in their industry is? Because it takes more than strategy. It takes years of consistent execution for a company to achieve sustainable competitive advantage. So while Dell does have a superior business model, the key to our success is years and years of DNA development within our teams that is not replicable outside the company. Other companies just can't execute as well as we do."

Remember, Michael Dell didn't graduate from college. He used hustle, passion, and resiliency to develop a simple plan and execute it with disciplined precision.

I think most entrepreneurs (including me) need to focus more on simple execution. Sometimes we spend too much times in meetings talking about how great our idea is and how it's going to change the world, when what we should be doing is putting the rubber to the road, reaching strategic goals, and making money.

Any ideas on how to make a company execute with Dell-like efficiency?

The Cinderella Man Metaphor

2005-08-19T08:54:00.000-07:00

Just watched the movie Cinderella Man. Fantastic movie! With all due respect to Hoosiers, Rudy, Remember the Titans, and the rest, Cinderella Man is the best sports film I've ever seen.

The central character of the movie is James Braddock, a washed up boxer who made an improbable, if not miraculous, comeback during the depths of The Great Depression. According to the film, Braddock's ascension became a source of hope to the masses of broken families searching for a reason to keep trying. At the same time, Braddock found strength in the people who looked to him for hope, knowing that his performance affected so many people.

I usually don't get too worked up about movies, but this one struck a nerve because Braddock's struggle taught me that every entrepreneur who has started with nothing has the potential to be a James Braddock to the rest of us.

Each time I read about a young entrepreneur who is finding success, it gives me strength to draw on when I'm having one of those "I-should-have-listened-to-my-mother-and-gotten-a-'normal'-job" moments. I know that may sound cheesy, but it's the gospel truth.

At the same time, I draw strength from the fact that there may be others out there like me who are looking for inspiration when the going gets rough. My success may give a couple of guys in their garage the energy to squeeze out the idea or strategy that ends up putting them over the top.

So, to all of you garage-dwellers who are looking for inspiration -- I'll try not to let you down.

To all of you who think the only people who depend on your success are your family, employees, and partners -- Don't let me down.

Omniture CEO Luncheon Notes

2005-08-18T12:55:00.000-07:00

Josh James, CEO of Orem web analytics giant, Omniture, spoke this afternoon at a luncheon co-hosted by the Utah Valley Entrepreneurial Forum and the Mountain West Capital Network.

A couple of highlights --

Just say "No." James said that he "truly became a manager" when he learned to say "no." When employees requested extensive time off, extensions on deadlines, and other small favors that were cumulatively destructive to Omniture's goals, James began saying "no." He called the first year of his new-found assertiveness, "The Year of No."

The story was not meant to encourage dictatorship management or unreasonable management. On the contrary, Omniture has what James calls a "No Jerks" policy. James' point was that the best leaders will not always make everyone happy. A manager is duty-bound to do what is best for the organization. Sometimes, fulfilling your duty as a leader will require you to make decisions that will upset some people.

Take your time when hiring key team members. James likened hiring management team members with marriage. "You'll be spending more time with your key team members than you will with your spouse," James said. "You wouldn't get married after two dates, would you?" When he hired his sales VP, James interviewed him nine times, took him to dinner several times, and met his family.

Have fun. Throughout his address, James laced in entertaining stories about office antics that make working at Omniture fun. A crowd favorite was one he told about how team members were given silly words like "tighty whities" and "grasshopper" to use during important client presentations.

My Own Truman Doctrines

2005-08-15T17:50:00.000-07:00

Just finished reading McCullough's, Truman.

Here's what I learned:

Patience is Still a Virtue

During the aftermath of WW II, the Russians created a military blockade around Berlin. No food or medicine was allowed into the bomb-riddled city, so it had to flown in by plane -- an extremely expensive endeavor that would leave the Germans constantly on the brink of starvation. President Truman faced heavy pressure to engage the Russians and break through the blockade .

Wary of a conflict that could have easily provoked World War III, Truman patiently waited for the Russians to keep their end of postwart agreements. During the airlift his popularity suffered tremendously, yet he waited.

To make a long story short, his patience paid off and the Russians eventually eased up, allowing sufficient supplies to finally get to Berlin after over 120,000 supply drops by U.S. planes. While engaging the Russians would have solved the immediate problem, it would likely have been catastrophic in the long run.

Business Application

The ability to make a good, quick decision cannot be overvalued in the technolgy sector. Innovation is the name of the game. However, there are times when it is best to use what I call Truman's "Airlift Approach."

A while back, I was feeling quite a bit of pressure (mostly from myself) to create a department that would help FundingUniverse.com increase revenues drastically. However, for various reasons, the best people for the job would not be available for a couple of months.

Rather than go out and hire a handful of good, but underqualified employees to patch up the problem and relieve some of the pressure I felt, I decided to use the Airlift Approach and get by on minimal resources until the time was right.

I'm still in "airlift mode," and it has been tough to scrape by. But when all is said and done, it will certainly have been worth it. Later this month, the personnel that I need will be available and I will be better prepared to bring them into a situation where they will be able to succeed.

Not-so-empty Numbers

2005-08-07T22:21:00.000-07:00

In Guy Kawasaki's Art of the Start, the author urges entrepreneurs to "make meaning" as they make money. His suggestion is that we all work harder and are happier when we are working on a project that brings us deep and abiding satisfaction. Once we have found meaning in what we do, we can dedicate ourselves completely and financial success will soon follow.

I have found meaning in what I do because I know that my company's success stimulates the economy, provides jobs/healthcare for the people it employs, and help entrepreneurs finance their dreams. I truly feel like I am part of something that makes the world a better place.

But what about other employees who perform much more monotonous tasks than I do? What is deep and meaningful about selling advertising on a website? Where is the meaning in updating the news section of the website? Perhaps they (the employees) see the big picture -- More sales = more revenue = increased ability to help others succeed = meaning. -- but I don't think that is what gets them through their day.

I think the key to finding meaning in the monotonous is recognizing it as an opportunity for self-mastery and self-improvement.

Keeping regular statistics helps employees find meaning in what appears to be insignificant work.

When salesmen use stats, they know that an unsuccessful call only means that they are seven unsuccessful calls away from a sale. And, more importantly, they know that if they make a sale in less than seven calls, they have improved and overcome their natural tendencies that prevent sales. That's intrinsically meaningful.

When website copy editors can see how many conversions their page has generated since they worked on it, rearranging the wording of a paragraph becomes a contest between how they have achieved in the past, and how well they know they can perform. When stats imporove and we outperform ourselves, we come one step closer to reaching our potential and we achieve meaning.

I'm going to do a better job at helping everyone at FundingUniverse.com find meaning in self-mastery and self-improvement by creating better, more meaningful statistics for every position that I am responsible for, including mine.

Note: Check out The Game of Work for more on how keeping statistics creates meaning.

Day One

2005-08-01T22:43:00.000-07:00

Like many people in the internet/high tech industry, I've always wanted to publish a blog. However, I only recently began my career in the internet industry and don't have the wealth of knowledge that my favorite internet entrepreneurs have to offer. I have always felt a little apprehensive about publishing my naivete for all of the world to see.

Until the other day I remembered reading a rookie diary by former BYU basketball player Travis Hansen, who, at the time, was with the Atlanta Hawks. The diary was a simple record of lessons learned during Hansen's rookie season in the big leagues.

During the periods of my life when I have been a truly efficient learner, I have always taken notes. Hence, I am starting my "rookie diary" today.

Enjoy.