Monday, December 16, 2013

5 Must-Read Books For Starting Your Company

When starting a company, there are many resources available to you with folks telling how, why, when and where to start your business in order to become a millionaire at an early age.  Unfortunately, many, if not most, of these resources are mediocre, misleading, or just not useful.  Having access to resources to assist you is critical for your long term success, however.  Since your time when you start your company is at a premium,  you want to ensure that every moment you spend reading relevant books is time well spent.

To assist with that goal, here is a list of 5 books that I have found invaluable in starting my businesses.  Why not a top 10 list?  Because it’s hard enough to find time to read 5 books.If you’re starting your company a list of 10 books to read is completely intimidating.  So start with these:

The Little Red Book of Selling.  Every entrepreneur will need to know how to sell.  Whether you’re selling prospective employees on your vision, investors on your company, or customers on your product, you need to be able to sell.  Even if you have a partner who is responsible for sales or hire a a sales person, you need to understand a methodical sales process.  This book takes you through an industry-generic process for the sales cycle.  It’s a fast read, and a book to keep for reference.  I gave one to each of my sales team members and executives.

Good Luck:  Creating the Conditions for Success in Life and Business.  I’m not normally a fan of the business teaching-by-parable book genre, but I do like this book as a motivational book for anyone starting their own company.  Without becoming too trite or platitudinous it is another short read that will put you in the proper perspective for starting your company and putting your efforts into the context of your overall life plan.  This is a great book to read, discuss with someone you trust, then give to someone else you think will benefit from it.  I’ve given this book  to at least 5 or 6 people over the years.

The Entrepreneur’s Manual.  This is an older book, out of print  but a classic.  It is not particularly well organized, but an amazing compilation of insights that will come back to you as you continue to grow your business.  This is one to keep for reference, and break open every 4-5 months to skim through the chapters.

The Portable MBA in Entrepreneurship.  Another classic reference tome, much better organized than The Entrepreneur’s Manual with a different set of best practices and references.  Another one to keep on the bookshelf. Reference it as needed.


3-D Negotiation. Another critical skill for any entrepreneur is to be able to negotiate.  Much as fighting in a skilled way isn’t about wading in and swinging wildly and aggressively without direction, negotiation isn’t about shouting loudly and playing hardball on every point.  This book is used by the Harvard Business School for some of their executive level negotiation courses, and emphasizes the setting of the negotiation game board before the negotiation even starts, so that the actual tactics employed during the negotiation become secondary in importance.  

By Eric Basu

Saturday, October 19, 2013

We Need Our Brightest People Working on Our Biggest Problems

A few weeks ago, I got to visit Microsoft’s annual conference of faculty members involved in computer science research at universities around the world. I hadn’t been able to attend the conference since I went full-time at the Gates Foundation, so I took the opportunity to talk about how the researchers’ work might overlap with some of the foundation’s efforts.


A lot of the faculty members wanted to know how they could help and how we can all bring more bright people into the fight against disease and poverty. So I thought I would share a few ideas about how we can help researchers from different fields have an impact on the world’s poorest people.
1. Find ways to apply technology so it helps the world’s poorest people solve problems.
For the poorest 2 billion people, progress in the most important areas — which I argue are health and agriculture — will depend on advances in technology, from computer science to genetics, materials science, and energy.
For example, in health, computer-based disease modeling is a big area. I’m optimistic that we’re going to eradicate polio in the near term, and perhaps malaria and measles in the mid to long term. To eradicate a disease, we need to understand how it’s affected by things like weather or the movement of insect populations (malaria is spread by mosquitoes). A technique called stochastic modeling — which involves running a lot of computer simulations where you randomize different variables and study the outcome — is helping us understand the impact of the various factors so we can get the right mix of tools to fight different diseases.
There are many examples from other fields. Geneticists can help develop crops that are more nutritious, disease-resistant, and drought-tolerant. Someone who’s interested in finance can help drive innovations such as digital currency that reduce transaction costs so that poor people can borrow at five percent a year instead of 15 percent. People with a passion for education can develop software that models what the student knows, interacts with and encourages her, and helps the teacher see what she’s been doing.
So there’s a lot of opportunity. But these advances won’t happen unless bright young people enter these fields. That brings me to the second priority:
2. Attract more of the world’s brightest people into technical fields.
We need a constant stream of new people coming into these fields with fresh energy and ideas. And it needs to draw from a broad range of people — meaning different ethnicities, income levels, and countries. After all, no nation has a monopoly on talent or on the best way of looking at a problem.
I wish rich countries did more to draw their brightest people into the sciences. We also need researchers from developing countries, though that’s hard because few of them have great universities where people can get top training. We need to look at ways to strengthen those schools through partnerships. We can also expand opportunities for young people to study in other countries and then return home to start their careers. And we definitely need to encourage more women to enter technical fields.
As we bring more bright young people into the sciences, there’s a third step to making sure it has an impact for the poorest two billion:
3. Show experts how they can help solve these problems.
As I said earlier, several of the researchers I talked to at Microsoft asked how they could help. Unfortunately, historically the world hasn’t done a very good job of connecting people with expertise to the biggest problems.
For example, a big challenge with vaccines is that they spoil if you don’t keep them cold. This problem has kept a lot of kids from being vaccinated, and it has cost a lot of lives. There are experts in the science of insulation, but no one had explained this problem to them. As soon as we did, they started thinking about how they could help. They got to work on a kind of super Thermos — a way to keep the vaccines cold without using any energy. It’s in development now.
Scientists aren’t the only ones who can help solve problems in the poor world. Savvy people in businesses, non-profits, and governments can find ways to deliver solutions at scale.
Of course there has to be a financial incentive to draw people in. Governments and philanthropy can establish grants and prizes. They can also set up funds to guarantee that there will be a market to pay for advances if they’re developed. The Gates Foundation has a program called GrandChallenges in Global Health, which is designed to help experts from various fields see how they can help save lives in the poorest countries. That’s just one example, though, and the world could use a lot more.
It was great to connect with all the researchers at the Microsoft conference. I hope some of them use their talent to help solve some of these challenges. I’m convinced that getting our brightest minds focused on our biggest problems will save lives and make the world a more equitable place.
Author:

Bill Gates, Co-chair, Bill & Melinda Gates Foundation

Tuesday, October 15, 2013

iPhone 5s Outselling iPhone 5c Two to One

Asked during Apple’s last earnings call if he feared the higher end of the smartphone market was nearing saturation, CEO Tim Cook said he did not. “I don’t subscribe to the common view that the higher end, if you will, of the smartphone market is at its peak,” Cook said. “I don’t believe that.”
Turns out Cook had good reason to take that view. In September, Apple launched a pair of new iPhones, the flagship iPhone 5s and the mid-tier iPhone 5c, and a new analysis by Consumer Intelligence Research Partners shows that the higher-end 5s has been outselling the lower-priced 5c in the United States.
According to CIRP’s survey of U.S. consumers who purchased Apple’s latest iPhones during the last days of September, the 5s accounted for 64 percent of total iPhone sales following its launch that month. Meanwhile, the 5c accounted for 27 percent, with the legacy iPhone 4S making up the remaining 9 percent.
So not only is the 5s outselling the 5c, it’s outselling it more than two to one.
Welcome news for Apple, since cannibalization of the 5s by the 5c was a potential commercial risk for this iPhone cycle. CIRP’s data suggests that the company has so far avoided it — though that’s hardly surprising at this early stage. After all, the iPhone 5c was intended as a mainstream smartphone, the iPhone 5s as an enthusiast one — a “forward-thinking” device for forward-thinking folks. And enthusiasts are often early adopters.
What’s more surprising is the iPhone 5c’s sales performance relative to that of the iPhone 4S’s following the debut of the iPhone 5. Despite the 5c’s newness and its colorful design, it’s not selling that much better than the 4S did when it was demoted to legacy iPhone by the flagship iPhone 5.
According to CIRP’s analysis, the 5c accounted for 27 percent of iPhone sales during the time period surveyed — just slightly more than the 23 percent captured by the 4S during the same period last year. Remember, the new 5c is this year stepping into a role similar to the one the old 4S served last year: The $99 iPhone. But Apple has attempted to improve its value proposition, tricking it out with a new plastic chassis and color options.
Also worth noting: The iPhone 5 appears to have had a slightly more successful debut than the iPhone 5s, capturing 68 percent of new sales compared to the 64 percent captured by the 5s.


So, at launch, the iPhone 5s has proven more popular than the iPhone 5c. Will it continue to be into the new year? Or will sales slow a bit once the early-adopter binge has concluded?
“The relative performance of all three iPhones is generally in line with the performance of the similarly priced phones following the launch of the iPhone 5 in 2012,” CIRP co-founder Josh Lowitz told AllThingsD. “Over time, the lower-priced phones have tended to gain share versus the flagship phone, after the initial rush of dedicated upgraders to the newest device. So we expect that the 5c will account for a higher percent of total U.S. iPhone sales in the coming months, but the design changes may alter that dynamic. The iPhone 5c may appeal to different buyers than the legacy 4S did last year, or the new 5s will this year.


Author: John Paczkowski, AllthingsD.com 

Monday, October 14, 2013

Three Things I’ve Learned From Warren Buffett

I’m looking forward to sharing posts from time to time about things I’ve learned in my career at Microsoft and the Gates Foundation. (I also post frequently on my blog.)
Last month, I went to Omaha for the annual Berkshire Hathaway shareholders meeting. It’s always a lot of fun, and not just because of the ping-pong matches and the newspaper-throwing contest I have with Warren Buffett. It’s also fun because I get to learn from Warren and gain insight into how he thinks.
Here are three things I’ve learned from Warren over the years:
1. It’s not just about investing.
The first thing people learn from Warren, of course, is how to think about investing. That’s natural, given his amazing track record. Unfortunately, that’s where a lot of people stop, and they miss out on the fact that he has a whole framework for business thinking that is very powerful. For example, he talks about looking for a company’s moat—its competitive advantage—and whether the moat is shrinking or growing. He says a shareholder has to act as if he owns the entire business, looking at the future profit stream and deciding what it’s worth. And you have to be willing to ignore the market rather than follow it, because you want to take advantage of the market’s mistakes—the companies that have been underpriced.
I have to admit, when I first met Warren, the fact that he had this framework was a real surprise to me. I met him at a dinner my mother had put together. On my way there, I thought, “Why would I want to meet this guy who picks stocks?” I thought he just used various market-related things—like volume, or how the price had changed over time—to make his decisions. But when we started talking that day, he didn’t ask me about any of those things. Instead he started asking big questions about the fundamentals of our business. “Why can’t IBM do what Microsoft does? Why has Microsoft been so profitable?” That’s when I realized he thought about business in a much more profound way than I’d given him credit for.
2. Use your platform.
A lot of business leaders write letters to their shareholders, but Warren is justly famous for his. Partly that’s because his natural good humor shines through. Partly it’s because people think it will help them invest better (and they’re right). But it’s also because he’s been willing to speak frankly and criticize things like stock options and financial derivatives. He’s not afraid to take positions, like his stand on raising taxes on the rich, that run counter to his self-interest. Warren inspired me to start writing my own annual letter about the foundation’s work. I still have a ways to go before mine is as good as Warren’s, but it’s been helpful to sit down once a year and explain the results we’re seeing, both good and bad.

3. Know how valuable your time is.
No matter how much money you have, you can’t buy more time. There are only 24 hours in everyone’s day. Warren has a keen sense of this. He doesn’t let his calendar get filled up with useless meetings. On the other hand, he’s very generous with his time for the people he trusts. He gives his close advisers at Berkshire his phone number, and they can just call him up and he’ll answer the phone.

Although Warren makes a point of meeting with dozens of university classes every year, not many people get to ask him for advice on a regular basis. I feel very lucky in that regard: The dialogue has been invaluable to me, and not only at Microsoft. When Melinda and I started our foundation, I turned to him for advice. We talked a lot about the idea that philanthropy could be just as impactful in its own way as software had been. It turns out that Warren’s brilliant way of looking at the world is just as useful in attacking poverty and disease as it is in building a business. He’s one of a kind.
Author: Bill Gates
Co-chair, Bill & Melinda Gates Foundation

Friday, October 11, 2013

10 Things To Do Every Workday

I’ve always been focused on performance. I’m a list person. I love the feeling of crossing things off. It makes me feel productive. Plus, consistent productivity has the wonderful byproduct of accomplishing more. Jeff Haden’s recent article on Linkedin summarizes the value of having a daily to-do list beautifully: You don’t wait to do the work until you get the dream job - you do the work in order to get the dream job.
I’ve never shared this list with anyone until now.
It’s the list of ten things I try to do every workday. Yes, there are days when I don’t get them all done, but I do my best to deliver. It has proven very effective for me. They are:
1.    Read something related to my industry.
2.    Read something related to business development.
3.    Send two emails to touch base with old colleagues.
4.    Empty my private client inbox by responding to all career coaching questions within one business day.
5.    Check in with each team member on their progress.
6.    Have a short non-work related conversation with every employee.
7.    Review my top three goals for my company that are focused on its growth.
8.    Identify and execute one task to support each of my top three goals.
9.    Post five valuable pieces of content on all my major social media accounts.
10. Take a full minute to appreciate what I have and how far I’ve come.
This list could be longer. BUT...

If it was longer, I wouldn’t be as good at getting them all done. This list is manageable to me. Of course, I do more than these ten things every day. But, these are the ten I choose to do with consistency. Why? Over the years, they’ve proven the best way for me to grow my career and my business. The collective results have made completing these tasks consistently; even when I don’t feel like it, well worth it.
What things do you do every day to advance your career or your business?

P.S. - First time reading my posts? Thanks for taking the time to stop by! Not only do I write for Linkedin, but I'm also founder of a popular career advice site,CAREEREALISM,and currently run the career coaching program,CareerHMO. I hope you'll check them both out!


Author:

J.T. O'Donnell Founder & CEO of CAREEREALISM.com | Creator & Coach at CareerHMO.com | Syndicated Author | Columnist | Blogger | Speaker

Thursday, October 3, 2013

The 5 Traits of Wildly Successful People

I have a crazy idea: success isn’t just about hard work.

We hear about hard work all the time—it’s what Olympic champions talk about when they get to the top of the podium and it’s what the media credits as the sole force behind billionaire entrepreneurs. But there has to be something else in the equation of obtaining unimaginable success. What other traits tipped the odds in favor of the world’s most successful people?
What helped propel their careers before they had track records?
For the past three years I’ve been fortunate enough to research and interview some of the world’s most successful people to find the answers to these very questions. Below are just a few of the traits I’ve noticed that have stood out in the personalities of people who have truly made it big:

1. Chase the School Bus

Growing up, Sugar Ray Leonard would wake up, get dressed for school, and walk with his siblings to the bus stop. As the yellow bus would pull to the curb, his friends and siblings would step up into the school bus, but young Sugar Ray Leonard, who is now a six-time world champion boxer, would refuse to get on. As the bus drove away, Leonard tightened up his sneakers and ran behind the bus all the way to school.
“The other kids thought I was crazy,” Leonard said, “because I would run in the rain, snow—it didn’t matter. I did it because I didn’t just want to be better than the next guy, I wanted to be better than all the guys.”
My generation is used to instant gratification. But Sugar Ray Leonard demonstrated the necessity to be able to buckle down for the long haul and accept that you won’t see any return on investment for years. You have to be able to stay passionately committed even when you can’t see the light at the end of the tunnel. And remember, Sugar Ray Leonard, now one of the greatest boxers in history, was running behind that yellow school bus at a time when others thought he wasn’t “boxing material.”
Sugar Ray Leonard kept at it, to the point that others thought was irrational. Turns out irrational commitment leads to irrational success.
Does what you’re working on excite you so much that it inspires an irrational sense of commitment? Are you willing to chase the school bus for years—before seeing any return? If so, keep running. If not, maybe it’s time to think bigger.

2. Stray From the Pack

In his early twenties, Tim Ferriss, bestselling author of The 4-Hour Workweek, was running an online sports nutrition company and realized that he would be risking his businesses’ survival if he followed the industry standard of accepting payment up to twelve months after the product was shipped.
“Everyone followed those rules,” Ferriss revealed to me. “I realized I was inviting disaster and financial ruins if I risked my cash flow that way by following the standard protocol, so I insisted on prepayment. Nobody had ever done prepayment. I think that is one of the reasons why my sports nutrition company succeeded where a lot of other startups of that type failed.”
Straying from the norm isn’t easy when you’ve spent your whole life following rules laid out for you at school and at home. It takes a major cognitive shift to understand that the way things are, and have been, can be challenged.
Ask yourself what rules in your industry you accept as fact. Why do you follow them? If the excuse is “that’s the way it’s always been,” it’s time to consider pulling a Tim Ferriss.

3. Create Corkboards

Peter Guber, former CEO of Sony Pictures Entertainment, was in his mid-twenties as a new hire at Columbia Pictures when he realized that the way the studio heads were selecting directors was archaic—based on esoteric chatter instead of real data. Guber personally took on the task of solving this industry-old problem.
He went out and got a corkboard the size of his office wall and created a matrix: all the directors in Hollywood listed down the side and all the relevant information sprawled across the top—think of it as a primitive Wikipedia for the entertainment industry.
Word spread around town about the young guy who had this crowd-sourced wealth of data on every director in Hollywood mounted on his wall. In addition to adding value and helping others do their jobs more effectively, the corkboard allowed people to take notice of Guber’s ingenuity.
“It became a tool that allowed people to recognize that I was willing to do things differently. It shined the light on me and it and gave me more currency to make more daring choices,” Guber said. He explained that, “You are in the ‘problem solving’ business—always. That’s the way it works.” This was a key trait that allowed Guber to go from being a new hire at Columbia pictures to the studio chief—in just three years.
Although HR reps fail to mention it on the first day on the job, it seems that taking risks, solving other people’s problems, and creating value—even in a formal corporate environment—could have huge payoffs for your career.
Are there any problems, even outside your job description, that you could solve? What opportunities can you create to add value to both help people as well as supercharge your career?

4. Get on "Qi Time"

Growing up in a village outside of Shanghai with no running water or electricity, Qi Lu (pronounced: chee loo) had no idea that one day he would have a corner office at one of the world’s biggest technology companies. As the President of Online Services at Microsoft, Lu has made a drastic journey to the top thanks to what his colleagues call “Qi Time.”
“During college, the amount of time I spent sleeping really started to bother me,” Lu explained to me. “There are so many books I can read and so many things to learn. It feels like, for humans, 20% of our time is wasted [during sleep] in the sense that you’re not putting that time towards a purpose that you care about.”
Although he admits it wasn’t easy, Lu has engineered his body to function on four hours of sleep a night thanks to an unusual regimen that ranges from timed cold showers to daily three-mile runs.
Driven by an unusual hunger to do more, Lu’s sleeping schedule has added an extra day’s worth of work time per week, which aggregates to nearly two months of productivity latched on to every calendar year. And he did it while still in college.
Ask yourself how badly do you want to do more. And what are you willing to give up for it?

5. Play the People Game

Shortly after graduating high school, Steven Spielberg began reducing the time he spent at college and increasing the time he spent hanging within the Hollywood inner circle. “[Spielberg] was going off to Sonny and Cher’s place all the time,” said Don Shull, Spielberg’s childhood friend. In a personal letter to Shull, Spielberg revealed that he would directly approach directors and Hollywood stars on the studio lot and ask them to lunch. And keep in mind—Spielberg was only nineteen years old at the time.
“Spielberg arranged his class schedule so that he could spend three days a week at Universal, watching filmmakers at work and trying to make useful contacts,” writes Joseph McBride in his detailed biography on Spielberg’s career. “He frequently slept overnight in an office at the studio where he kept two suits so he could emerge onto the bustling lot each morning looking as if he hadn’t slept in an office.”
“Steve knew at that early age that filmmaking is not just filming—it’s a people game. And he played it well,” said producer William Link.
While he definitely had talent on his side, so did handfuls of other aspiring directors. What helped Spielberg become the youngest director signed to a long-term studio deal was his focus on building relationships. This has nothing to do with “networking”; this has to do with making friends and focusing on people.
What little changes can you make in your life, starting today, to put a greater focus on people? What investments can you make, in both time and money, to hone the way you play the people game?

Wrapping up

Success can come in different fields, but the principles behind it are one. From Sugar Ray Leonard chasing the school bus to Peter Guber’s corkboard, these stories show the unique personality traits that tipped the scales in favor of the world’s most successful people.
Success—while defined by everyone on their own terms—is something that truly manifests itself once you make that mind-set shift and tell yourself it’s go time. Are you ready to make that shift?

Author: Alex Banayan is an associate at San Francisco-based venture capital firm Alsop Louie Partners and the author of a highly anticipated business book being released by Crown Publishers (Random House, Inc.). For more, sign-up for Alex Banayan’s newsletter here.

Tuesday, September 10, 2013

Why The Economist Should Stop Ranking B-Schools

A day after Forbes magazine released its biennial ranking of the best business schools, The Economist weighed in today (Oct. 10) with its own annual list of the top MBA programs worldwide. The University of Chicago's Booth School of Business topped the ranking for the second year in a row.
But as is often the case with The Economist's ranking of the Top 100 global schools, it's a head-scratching mess. IE Business School in Spain and Hult International Business School both did nose dives this year, plummeting 28 places to rank 50th and 59th, respectively. Yet, little if anything, has changed at these two schools.
The big three U.S. schools--Harvard, Stanford, and Wharton--all suffered declines. In the 12 different versions of this ranking The Economist has published since 2002, Harvard, Stanford and Wharton has never topped the list. Neither has London Business School or INSEAD, generally regarded as two of the very best business schools in Europe.
What gives? It’s just another peculiar, topsy-turvy ranking from The Economist, which has consistently published the most unstable and volatile ranking of business schools. This year some 34 business schools had double-digit climbs or falls in the ranking, including three newcomers and five schools that completely fell out of the Top 100.
As if it couldn’t get any worse, one business school literally came out of nowhere, climbing at least 71 places to finish at a rank of 30th. The European School of Management and Technology in Germany, which was not on The Economist’s Top 100 list last year, showed up above such world renown business schools at Cambridge, the University of Texas, Georgetown University, and Italy’s SDA Bocconi. Because ESMT failed to make the ranking in 2012, it meant that if it were the 101st school last year it would have had to rise 71 places in a single year to end up 30th.
The biggest gains by schools on last year’s list were posted by the business school at the University of St. Gallen, which zoomed ahead 29 places to rank 52, and SDA Bocconi, which climbed 23 spots to rank 47th this year from 70th in 2012. The big U.S. gainers are the University of Georgia’s Terry School, up 19 places to rank 79, and Arizona State University’s Carey School and Case Western’s Weatherhead School, both up 14 positions to rank 45th and 86, respectively.
The Economist says that its methodology for ranking MBA programs takes into account new career opportunities (35%); personal development/educational experience (35%); increasing salary (20%); and the potential to network (10%). The figures are a mixture of hard data and the subjective marks given by the school’s students who are surveyed by the magazine.
What generally causes such wide swings is a methodology where the underlying result is so close that a numerical rank for a school if more often than not statistically meaningless. The Economist does not publish underlying index numbers along with the actual rank of each school so it’s not possible to tell exactly how close one school is to another. But it would not be possible to have so many dramatic changes in a year-over-year ranking unless the differences among schools are mere slivers of fractions.
Obviously, business school MBA programs don’t change all that dramatically in a single year. So there are no explainable transformations of curriculum, student quality or MBA outcomes to justify such roller coaster results–especially when they occur to roughly a third of the sampled schools. The MBA programs at Hult and IE didn’t deteriorate since last year in any meaningful way to drop like stones. The University of St. Gallen and SDA Bocconi didn’t appreciably improve to warrant jumps of 29- and 23-places in the space of 12 months.
Losing Big Ground In The Economist's 2013 Ranking
School
2013 Rank
2012 Rank
Change
IE Business School
50
22
-28
Hult International
59
31
-28
USC (Marshall)
63
43
-20
Grenoble
89
69
-20
Boston University
73
55
-18
Lancaster
95
80
-15
EMLYON
70
57
-13
WHU (Beisheim)
99
87
-12
City University (Cass)
42
30
-12
Southern Methodist (Cox)
93
82
-11
EDHEC
62
52
-10
Wake Forest (Babcock)
60
50
-10

What's most surprising is that a publication that is as widely admired and respected as The Economist could publish a ranking so devoid of authority and credibility. Yet, year after year, the magazine cranks out its wacky list. It's time for The Economist to give it up and stop ranking business schools.
Author: 

John A. Byrne

Chairman & Editor-in-Chief at C-Change Media Inc.