The Goldman Sachs Civil Suit

I usually don't like to get too far into disecting the news on this blog, but the decision to file a civil suit against Goldman Sachs for fraud is very unique. The firm brokered tons of deals where they sold complex CDOs filled with dangerous mortgages that would eventually default. What makes all this so incredible is that Goldman could create and sell these packages for huge money and have them all insured through AIG to hedge any potential risk. We know how that worked out for AIG. It's amazing how such a small percentage of your total business can take-down an entire company when things turn sour. Sure, Goldman also hurt for a few quarters in the heart of the meltdown but they have turned the corner quite easily since. AIG, on the other hand, needed a ton of money from the U.S. Government and still may not make it.

So, in the heat of the growing CDO/housing bubble, a few investors started investigating the possibility of shorting these securities and the firm allowed that too! They were essentially on both sides of a deal in which they knew at least one particpant was going to lose a lot of money. Being involved in the sale and the shorting of the same asset means one of your clients is going to make money and the other is going to get killed. It's a zero sum game. Goldman was so oblivious (or didn't care) in the beginning that they let the shorters cherry-pick the CDO's they wanted. These guys went after the most toxic of the group and made BILLIONS.

But, is Goldman really at fault here? There are definately some moral obligations that were not lived-up to in this scenario, but can you place the entire blame on the firm? I don't think so. Times were too good and large investors were willing to buy anything. You have to do some research and understand what you are buying. As a small-scale stock picker, I know how much due-diligence I do before spending any of my money on a company. I am sure the salesman were slick and the prospectus was glossy, yet I can't help but think there has to be some blame placed on the money managers looking to show-off big returns.

While it's not great to think about the pools of money the shorters made off betting against the American Dream, you have to applaud their intelligence and rebelliousness. These investors went against everything they read and heard on a daily basis and took the time to understand the asset and what comprised it. They saw a bubble and did not wait for it to pop.

The civil lawsuit could be a big turn. So many people are scrutinizing whether any sort of sustainable regulation was put in place since the financial crisis. The simple answer is probably not. Until the firms have to be completely transparant on every deal, especially complex combinations of debt, there will never be complete oversight. Now, at least, there is the possibility of financial penalties for being too good of a salesman (be it a deceptive saleman). The lawsuit may open the floodgates to many other civil suits. In the end, though, it will be business as usual for financial firms so large that they constantly have to come up with new forms of innovation to keep the revenue train moving forward.

Transition

I apologize to everyone for taking so long between posts. The last few weeks have been a time of transition for me as I moved to another position at my company. It occured to me there are a lot of business lessons to take away from periods of movement and the art of learning a new position. Here are the essentials:

Humble yourself. An ego has no place in a new job. You are making new friends and business contacts that need to respect you and your ability to function as part of a team. It takes time to earn the trust of those around you. Don't take that message as saying not to speak up and implement your ideas to make a process or product better. Simply use an extra amount of tact so you don't come off as a bull in someone else's china shop

Prepare to work on nights and weekends. You will naturally be slower than your predecessor at the new job, so understand that it will take extra time to finish a task. You need to use this time to prepare resources and study processes that will make you more efficient. Often, this will also be the time when you find problems with old systems and begin thinking of ways to optimize.

Ask questions. There is a certain understanding that goes along with being a beginner. Think of the breaks you allow a novice to a card game. The company hired or promoted you because they want to see you succeed. Understanding this basic thought should set your mind free to ask questions and seek help in excelling.

Don't loose your cool over a mistake. They are just going to happen and your focus needs to shift to correcting with minimal damage. It goes back to a general business principle: be proactive and not reactive. If there is a task you don't fully understand and no one around to ask than simply take steps to clot any damage that could occur. Your co-workers will understand, just be honest don't try to cover-up while digging yourself into a deeper hole.

Work as hard as you can. Most evaluators of future talent make a decision on the potential of new hires within weeks of starting. It is important to make that initial impression very positive and ensure that you are on the minds of the career-makers. It is certainly important to always work hard, but you first paycheck cycle could make a tremendous impact on your future.
Keep the ball moving forward and always put yourself in positions to succeed.

Be Productive

A lot of talk is devoted to the best way to be efficient and organized throughout the day. There are highly-paid professionals making money purely from teaching people to prioritize tasks and stop wasting portions of their time. For me, being productive is a personal idea and must be tailored to an individuals own ways of thinking and problem solving. With that being said, there are certain patterns used by successful people that must be examined and possibly integrated into your daily routine.

INC. profiled a few prosperous executives and entrepreneurs to see their strategies for executing the 'to-do list.' Let's look at a few highlights:

Jordan Zimmerman insists on daily phone calls. He has direct access to the heads of client companies and an understanding that they will take each other's calls to discuss strategy and progress in succinct conversations. Zimmerman also doesn't sleep and is routinely up at 3 AM to workout before starting his day (which he claims gives him energy for the day).

Kevin P. Ryan spends a great deal of time involved in HR for his company. He insists on doing a large amount of the hiring as he feels that the right people make his job that much easier. Ryan is in constant contact with his top executives and those identified as 'up-and-comers' both inside and outside the company in order to feel at-ease with delegation.

Barbara Corcoran makes her 'to-do list' for the next day before she takes of for the night using a rating system based on the importance of the task. This way, she hits the ground on the hard stuff in the morning and the day runs smoother. Corcoran also has a list of follow-ups assigned to people after each meeting to make sure that maximum time is spent executing as opposed confusion in responsibility.

Seth Priebatsch is most efficient during off-hours from work. He finds that large problems are much easier to solve when the office is empty and there is time to really think. Using the nights and weekends allow for his time to run smoothly when employees are demanding his attention.

Scott Lang always keeps large blocks of his day unscheduled. He likes to keep a cap at 50%, though admits that number can sometimes slip to 80%, to solve problems that come up during the day or be open for a last-minute client meeting or call.

While these are only a few examples, the major themes include the importance of exercise, keeping meetings to a minimum, and solving problems through unscheduled or open time blocks. Your productivity will always be based on the optimum use of your thoughts. Keep an open-mind and be on the lookout for ways to increase your efficiency but, remember, the goal is to always keep the ball moving forward any way you see fit.

Negotiation

This is a great example of negotiating from a Hollywood Mogul to a future Hollywood Mogul. Barry Diller, then a young executive at ABC on his way to running a few studios and, more recently, IAC, was approaching Lew Wasserman, head of MCA/Universal:

"I was purchasing films for ABC from Universal, and I went to his office, and I asked him - I said, given that we are buying sixty-four units at ,$600,000 each, couldn't you cut one little unit off the sixty-four? Two beats. He stared. He said, 'No.' Nothing more. Just, no. Silence. The stare. And I folded like the cheapest tent. But as I got up to go, dejected, knowing the fool that I was, he walked me out and in that very quiet voice of his he said, 'Next time you try this, be prepared to call it off if you don't get what you want. Because, otherwise, you never will.' And the door closed behind him."

-From When Hollywood Had A King by Connie Bruce.

The Corner Office MBA: Lessons In Leadership

By Lewis Collins

Leadership is a term of art. It has been defined and redefined over the centuries. Each leader has his or her unique leadership style and characteristics. The Reverend Martin Luther King once said: “A genuine leader is not a searcher for consensus but a molder of consensus.” This statement is a crystallization of what a leader must do to lead. Rudy Giuliani was once asked whether leaders are born or made. His response was that he believed that leadership is mostly a skill that people can learn. He indicated that the learning process begins when you are a child and sources of the “DNA” that leaders possess come from parents, friends, colleagues, teachers and clergy. Giuliani also believed that leadership can be honed by reading about great leaders. He believed that by reading about these great examples of leadership, one sharpens their understanding of how great leaders think and act. This article is inspired by, and loosely based on, Rudy Giuliani’s book: “Leadership”.

Everyone’s accountable, all the time. As a leader, it is your responsibility to be accountable for your actions. These actions must be based upon your core beliefs. You as the leader set the tone. Leading by example is not only a platitude – it is a platform.

Are you up to the Challenge? For a business leader to remain effective, he or she must continually challenge themselves. For a leader to lead, everything must be questioned. The most dangerous “infection” a business can experience is the virus of success. Success breeds complacency. As pointed out by the authors of Built to Last, the truly successful business is one that has an unchanging core belief yet continually reexamines itself in light of the changing business culture. Long-term success requires a business leader to hold true to his or her core beliefs and, at the same time, continually challenge themselves to change and adapt to the environment within which the business exists. You must remain vigilant by continually examining each component of the business to determine whether or not that component is in line with its core beliefs and goals. Continually challenge yourself and the business to determine the relevance of everything undertaken.

Bright people debunking your logic test the consistency and validity of your ideas. Being a leader does not give you a corner on the market of ideas. Great leaders surround themselves with bright people who are not “yes men or women”. Tom Peters, one of our nation’s most prominent management gurus, advocates at a leader should surround themselves with contrarians. He believes that contrarians help an organization test and shine a bright light on the dark corners of those ideas. A leader needs the insight of bright people who can look at all aspects of ideas and plans from a contrary viewpoint. In this way they will assist you in honing and validating those ideas and plans.

A real leader leads with a true heart and an honest mind and will not deny a belief simply because it makes him or her uncomfortable. Being a leader involves, on occasion, making tough choices. The tough choices must be made if they are consistent with the core beliefs of the leader and, of course, the organization. It is easy to make decisions when those decisions are popular ones – the true leader, however, makes decisions that are tough. Be your own person. A leader is chosen because the business trusts his or her judgment, character and intelligence. Do not put your finger to the wind of opinion and do the popular thing if it runs contrary to the vision you have laid out and your core belief.

Every decision must be made for the benefit of the business. When a decision is made, the business and its interests must be paramount – above those of your own. This must be a template for every decision that is made. Inspire confidence. It is a leader’s job to instill confidence by believing in his or her own judgment. Lead with ideas . . . and ideals.

Prepare relentlessly! Rudy Giuliani, a student of leadership throughout history, made a very striking observation. He crystallized what he observed as a very important key to making a leader. He wrote: “Preparation – thus eliminating the need to make assumptions – was the single most important key to success, no matter what the field.”

The importance of meetings. Meetings are a way to coalesce ideas, a way to brainstorm and refine. Meetings, however, are meaningless unless they are well-organized, focused and short.

Set the tone early on. When you begin to move forward as the leader of an organization, it is vitally important to communicate your vision, organization and plan early and often. The opening tone you set will motivate, inspire and focus others. Start with small successes. Giuliani tells in his book of one of his earliest “small successes”. This success was with a group of people he referred to as the “squeegee men”. These were people in New York City who would jump in front of cars stopped for a traffic light and squeegee their windshield. After the cleaning, the squeegee men would pressure the drivers for payment. One of the first things Giuliani did when taking over as mayor was to crack down on these “squeegee men”. In a short period of time he was able to eliminate their harassment. This small, tangible, success was a building block for the many large successes that he experienced later in his administration.

Surround yourself with great people. Great leaders have great insight. Great insight comes from a variety of sources. The best source for great insight is surrounding oneself with great people. Too many leaders believe that they are “anointed” through their election or appointment to a leadership position. This lack of humility and failure of perspective is one of the single biggest flaws of a true leader.

Servant leadership. A true leader realizes that he or she serves the organization. If a leader believes that they “rule” the organization, they will be an unmitigated failure. To paraphrase Psalm 19, great leaders ask to be free of presumptuousness. The servant attitude will place you in the right frame of mind to lead. It will give you the proper perspective and attitude. You will realize that you brief time at the head of the organization is one of service to the members.

Realize your weaknesses. A good leader realizes that he or she has weaknesses. No one leader has all of the traits and qualities needed for leadership. When a leader realizes this, they can balance their weaknesses with the strengths of others. I am not as good with budgets and financial forecasting. I am more of a big picture, idea man. I realized this shortcoming and, as a result, relied on the sound financial judgment of others to compensate. Leadership, therefore, requires the leader to be honest with themselves. Admit your shortcomings and be a leader by making sure you have a person or persons you can count on to fill the hole in your leadership void.

Motivate and Delegate. A great leader who surrounds themselves with talented people must take the next step by motivating those people to achieve. Allow the people you appoint to encounter challenges on a regular basis. Challenging talented people brings forth their true abilities and allows them to achieve great things. Create a sense of adventure in the job you task them. If highly driven people are not sufficiently challenged, they surrender to self-satisfaction and arrogance. Give them the vision of what you want to accomplish, the leeway to make it happen and the spark to ignite their passion for the project. Empowerment allows businesses to achieve great things. A team can achieve much more than an individual. If you delegate - and then empower the people you delegate - you show your true leadership character. Delegation without empowerment leads to the primary weakness of an organization – micro-management from the top. General George S. Patton once said: “Never tell people how to do things. Tell them what to do and they will surprise you with their ingenuity.” As the Chinese philosopher Lao-Tzu once said: “When the best leader’s work is done, the people say, ‘We did it ourselves’”. This is a great picture of what a leader does through empowerment.

Reflect, then decide. It is often said that the primary difference between intelligence and wisdom is experience. Experience provides you with the underlying facts that allow you to reflect. Experience teaches you what you need to determine the best course of action. It gives you the basis for making a more informed decision. Woodrow Wilson said, “One cool judgment is worth a thousand hasty counsels. The thing to be supplied is light, not heat.” Experience teaches that we should:

1. Be reflective. Consider all your options before making a decision.

2. Be ready to pull the trigger. After considering the options and the counsel of others, the time comes to make a decision.

3. Early analysis. You must begin the process of decision-making by analyzing all of the options at the earliest possible moment.

4. Use creative tension. As pointed out earlier, the contrarians in your organization are very valuable. Use their contrary views, thoughts and ideas as a catalyst to making the right decision. F. Scott Fitzgerald said that the “test of first-rate intelligence is the ability to hold two opposed ideas in the mind at the same time, and still retain the ability to function” – to make a decision.

5. Chart it, outline it, understand it. Most innovative thinkers understand the importance of reflecting before deciding. His “chart it, outline it, understand it” way of thinking helps a leader make the right decisions. This method of thinking allows a leader to: organize the steps to completion; factor in accountability; use creativity to solve problems and, think outside the lines and decide what’s best for the organization.

6. Establish priorities and stick to them. Once a goal is set, the steps to achieving that goal, within a reasonable time frame, must be established to provide a guidepost of achievement, a horizon of accomplishment.

Conclusion. Leadership is the most important ingredient that enables a business to achieve great things. In his book, Good to Great, James Collins underscores the importance of leadership in developing great organizations. A leader must possess many vital character traits. While no leader has all of these characteristics in equal measure, great leaders possess most of these core ingredients. Character, courage, compassion, vision, wisdom, conviction and doggedness are all aspects that a leader must draw upon if they are to lead an organization from “good to great”. Whether that “organization” is your family, or your business – you must be able to tap into these elements to achieve greatness.

I end with the reflections of Alexis de Tocqueville. de Tocqueville, a French writer, poet and historian, came to America to observe, first-hand, what made this country “tick”. He observed:

“I sought for the greatness and genius of America in her commodious harbors and her ample rivers – and it was not there . . . in her fertile fields and boundless forests – and it was not there . . . in her rich minds and her vast world commerce – and it was not there . . . in her democratic congress and her matchless constitution – and it was not there. Not until I went into the churches of America and heard her pulpits flame with righteousness did I understand the secret of her genius and power. America is great because she is good, and if America ever ceases to be good, America will cease to be great.”

About the author: Lewis is a Partner in the Tampa, Florida office of Butler Pappas Weihmuller Katz Craig, LLP. He has served as President of the Federation of Defense & Corporate Counsel (2005-06) and is Past President of the Florida Defense Lawyers Association. Mr. Collins currently holds the position of President of Lawyers for Civil Justice

SIFTABLES - The Future Of Toys

As chips get smaller, computers get smaller and take on different forms. The technology allows for a greater combination of the what used to be purely physical that can now incorporate a digital component.

Davis Merrill created SIFTABLES, a fascinating technology that takes a basic block and transforms it into a mini-computer with the ability to sync and connect with other blocks to form a network. The toy may never be the same. This demonstration shows a very preliminary examination of the possibilities. Child development will be particularly affected by the technology as it creates greater interest from the young user and combines tangible usage as a new learning medium.

Clif Bar - A Model Of Growth

Gary Erickson had a problem. He was an outdoor enthusiast in need of nourishment but stuck with a stale tasting Powerbar he could not bring himself to eat.

A seemingly simple problem, but one that becomes much larger for an entrepreneur. You either accept the mediocre product dominating the market or you get up and challenge Goliath with one of your own. Erickson, then the owner of a bakery, went to his mother's kitchen and created a great tasting energy bar for athlete's like himself. He turned his homemade creation into a nutritional powerhouse sold nationwide. The most amazing aspects of Clif Bar's ascent in the market is it's lack of outside funding, slow and organic growth dictated by the founder, and a rich pay day from Quaker that was refused.

As I have mentioned before, listening and selling directly to your customer is essential in discovering the best product. Erickson and his wife went to marathons, triathlons, and bike races talking to the very athlete's who needed their bar most. Great taste was the kicker but the functional value of the bar is what sold. Using little advertising, the company chose to grow organically with the founder keeping control throughout the process. Word of mouth is the most powerful form of marketing that exists and it can be very fast in certain circles. Athletes proved to be one of those circles.

There was a little luck involved in Clif Bar's success as the company started getting big just as a national demand wave started sweeping the country for nutritional foods and supplements. The company now found their product featured prominently in supermarkets as well as the small specialty stores to which they owed their start. Everything came to fruition through revenue. Erickson cut deals with his distributors for discounts in exchange for cash on delivery and was able to pay suppliers out of incoming revenue. It is because of this excellent money management that he found the coveted control.

When QUAKER came calling with a big buyout offer, temptation certainly struck but the offer was ultimately turned down. There seem to be two types of entrepreneurs. Some want to start a business to cash-out while others want to run the company as long as they are able. There is nothing wrong with either type it just comes down to a matter of personal preference. If the business is successful, money will be made in both scenarios. Ultimately, you are either OK with prolonged gratification or not.

Clif Bar is a rare example of this level of success but one that is as good a case study as any on small business growth into national brand. The expansion was slow, controlled, and done on revenue.

How To Get Rich

How do you lay the foundation for getting rich? Its a process we all must have the patience and passion to attain.

Mark Cuban understands how to get rich. His success has come from the ability to see opportunity and take the necessary steps to accomplish his goals. This is certainly an over-simplification, but understand that is a macro-approach to the situation. Gaining real wealth means expending all the resources at your disposal and committing the house when the right shot comes around. In youth, the stakes are high but manageable. I don't want this blog to always seem like we have nothing to lose because of our age, but it should drive home the point that now holds fewer consequences.

Even if the right opportunity is not in front of you at this moment, the preparation will make all the difference. Mark has always been very specific about the role discipline must play starting out. There are no shortcuts to real wealth and no gimmicks that will actually make this process any easier than the sweat and stress involved. The discipline takes on a few dimensions. The first is the discipline of saving money and shopping smart. No matter your salary, conserve as much money as possible, not for long term retirement, but in order to have the cash available to make a significant play at the right opportunity. Cash is king in business.

The next facet of discipline involves the patience it takes to wait for an unstable market to attack. Get the best deal possible and be ready for a bust at any time. Learning the business you want to pursue should include learning the historical causes of booms and busts. You must commit to understanding the data and the ramifications from numbers that seem inflated or overexposed. It is during these times whe you use that money you have been conserving. See the opportunity and seize it.

Clay Shirky: Cognitive Surplus

What do you do with your spare time? Are you improving yourself or society?

We grew-up on TV. It's a fairly simple fact that television changed the way we utilize our free time and it has been that way for over 50 years. Clay Shirky gives a phenomenally insightful speech at the Web 2.0 Conference on what this technology has done to the population and how we will buck the trend with a fundamental shift in the way we utilize media.

After World War II, the 5-day work week meant we had to learn as a population how to use our time away from work. Television and, as Clay singles out, the sitcom took hold and held a tight grip on our hours. For this period of time, there were few other options. There were no blogs, no podcasts, no file sharing, and no open-source technology. Well, the world has changed. In what Clay identifies as an Architecture of Participation, media is turning into a triathlon. The population now wants to consume, produce, and share their media. It's the time of the people.

Think of all the hours wasted staring at a television that provides little in return. Something as simple as sharing an idea means you have taken the time to change society. That idea can circle the globe within seconds of striking the enter key. And, certainly, doing something is better than nothing. Pick your platform and utilize it. Who cares if your ideas are not entirely original? Piggy-back on the wisdom of others. Sharing is still a pillar of new media, just give the originator their credit.

Clay says some extremely insightful things as he surmises the argument. The future is in participation. He says, "Media that is targeted for you that does not include you is not worth watching." Many industries dying a slow death can attest to this (newspapers, music, etc.). Locking out the user sets the stage for a major coup. The over-throwers are the same users you used to call customers.

Talent Development

If you look carefully at the former employers of many of the most successful entrepreneurs and executives in the world, you will start to notice a pattern. Certain companies have an uncanny ability to develop talent. This doesn't happen by chance, but because they take the time to find potential and nurture growth. GE, Proctor & Gamble, Coca-Cola, and Microsoft are known to be some of the best and they invest a great deal of money and resources to keep it that way.

In my business, the William Morris Agency mailroom was the ultimate place to start a career. Young graduates would take substantial pay cuts (and check their pride) in order to deliver mail for the talent agency and it's stable of stars. Michael Eisner, David Geffen, and Barry Diller are just a few of the media industry legends willing to work their way from the bottom-up. While there are now more agencies to choose from, the mentality is still the same. Work the long hours, accept the low pay, and learn all you can. If you don't work out, there are 100 other kids willing to take your spot. This program is a little more extreme than the talent development programs at your typical company, but there is something to be said for succeeding in an environment like this.


I started thinking about talent development while reading this article from Bloomberg Business Week about the next generation of tech companies being started and/or funded by former Google employees. The conglomerate has produced an unbelievable number of start up founders that are revolutionizing all areas of technology. Those who are not starting the companies are investing and helping in early-stage development. It should be said that the ex-Gogglers have more money than your typical young, former employee, but it's more than just the money that is creating all this success and wealth. It's about the network and experience that comes with working at Google. These entrepreneurs and investors have direct involvement in Justin.tv, mint.com, Foursquare, Twitter, Facebook, Tapulous, Y Combinator, and bit.ly to name a few. The network is kept alive through events organized for the purpose of sharing information and ideas.


So where is the lesson here? Really it is two-fold. First, do your research on the companies who will identify your talent and open doors through development for the future. Sometimes there may be a pay cut from other opportunities, but understand it as an investment in your future. The second lesson is the importance of recognizing people with whom a relationship will be mutually beneficial and fighting to keep that connection alive.

The Future of Money

Could the financial transaction industry be going the way of the music, television, and publishing industries?

The situations feel similar. A tight, protected system built over many years and controlled by a select group of super-companies that have free reign to charge and operate how they please. Then, a group of developers come through and make the entire business open, easy, and cheap. The internet provides the opportunity and the entrepreneurs create the innovation. WIRED proposes the idea that we may be in for a fundamental shift in the way we transfer money with Paypal as the instigator.

Creating the credit card was the first monetary revolution that our generation accepted as standard. In fact, I can't remember life without plastic money. The change from cash only made banks more powerful as they could charge fees for merchants to accept this form of payment. It's really the ultimate partnership between the card companies and the financial institutions and it's one that costs the business owner 6 times what that purchase would cost with cash.

Paypal used to just be the primary form of payment on Ebay, but has done something I believe most large tech companies will do in the future; open the code to developers and let them create new innovations that originate new revenue streams for the company. This country is full of highly educated tech developers lacking the proper established networks and systems used to create highly innovative new companies. When Paypal opened up, thousands of coders came in and made the business of transferring money easier and available on whatever platform you use most. It could be on your smart phone, through social media, and even through subscription services available on ITUNES. They are effectively taking the arduous 10-step process of the past and breaking it down to 3-7 steps for a complete transaction.

WIRED singled out these companies as the leaders: Twitpay, Zong, Square, GetGiving, Hub Culture, and Obopay.

Discover Your Business

Sometimes to discover your business, you just have to start your business.

Steven Blank defines a start up as an organization formed to search for a repeatable and scalable business model. The business model essentially describes how your company will make money. Ask any leader to describe their business model and I can almost guarantee you won't get anything resembling a short answer. The reason is simple, in order to maximize profits and efficiency, the boss has to understand the smallest nuts and bolts of the business. This comes from experience and, most of all, the desire to have this knowledge. One of the benefits of starting a company is that you become the first and hardest working employee. There isn't a job too big or small for someone who can't afford a staff.

All this learning allows for tweaking or complete shifts in the business philosophy as the search continues for a repeatable and scalable model. It's where you meet customers and learn about your product from an outside perspective. It's where you learn the real profit margin on each unit delivered. It's where you discover your business.

The hardest part of this early stage development is the lack of money and direction. This is where that eternally optimistic voice in your head must keep reinforcing faith in your instincts and the product. As this NY Times article points out, even Pandora took 348 pitches to land VC financing.

The World's Most Innovative Companies

Fast Company's list of the World's Most Innovative Companies is a fascinating look at the speed required to keep business on the cutting-edge. A leader's ability to anticipate the future and answer consumer's questions before they ask is crucial to constantly creating new products and services that will increase revenue. Here are a few highlights from this year's list:

Sportvision: The company that brought us the yellow first down line and the digital strike zone is now breaking down every aspect of a single play in Baseball. Two cameras set up at the stadium will capture 600 locations and allow managers to determine which player has the best knack for play-making by analyzing their movements to the ball and the player's range. The technology also breaks down a pitcher's trajectory and how prone he is to be stolen against. Yes, this takes the feel out of a game that is very much instinct and reaction, but it is still pretty cool to know.

Glam Media: I include this example only to show how new media is transforming how we receive information. The company is a network of 1,500 blogs targeted for women. It's significance is in the ability to provide so many marketing opportunities from one media company (a right once reserved for only highly diversified newspaper and TV/Movie media conglomerates) to it's advertising partners. The business thrives on it's innumerable micro-audiences still of high value to marketers.

Ngmoco: I previously spoke of the incredible business mobile app development has become. Short for next generation mobile company, NGMOCO creates games, mostly for the iphone, and gives them away for free. Their revenue comes from virtual goods and services layered into the programs to enhance game play and sold for a fee. The company also launched it's PLUS+ network in order to create a community to display scores and challenge others through social media.

Katalyst: I like this company for so many reasons. Being in the media industry, I understand very clearly the dramatic shifts taking place and threatening the hierarchy that has been strong for about 85-90 years. Ashton Kutcher, the founder, has taken his production company to the front of the curve. Most movie stars simply use their celebrity to setup production companies to produce their movies, but Ashton is using his status to help large corporations reach a younger audience through new media. He uses the web to showcase his series, shorts and help promote the companies through his extensive social media network. I believe he has the potential shift entire marketing campaigns and media strategy.

Dreamworks Animation: The movies are not why I chose to include them on the list. It's because they are now an incubator for new technology developed to enhance the movie experience which is spun-off to the Silicon Valley community. They are far more than a movie studio now.

Scribd: Self-described as a community of 'millions of readers, millions of documents', this service allows anyone to upload, comment, vote up or down, and tag any document. The service is easy-to-use and let's anyone share their findings or read the findings of others. There are also partnership deals with large media companies that provide the opportunity to read books and newspaper articles both for free and at a fee.

There are so many other innovative companies changing the world. Take some time and learn about the advances. Intellectual curiosity is an important trait to develop in your business career.

Execute

Consultants tend to be good consultants because they have the ability to analyze information and suggest solutions. Analysis is an important part of business but has nothing to do with how successful your company will be. The single determining factor in achieving your goals is the ability to implement. In other words, make things happen.

Let's back-up for a second. I am not saying that having the numbers and understanding your business won't pay dividends in the long run, I am simply saying that any good executive or entrepreneur has the the ability to 'Just do it'. The importance of this ability for entrepreneurs is made expertly by Mark Suster.

What does it mean to make things happen? It means to close the sale, convince suppliers to discount prices, hire qualified people, fire under performing employees, and constantly advance forward. In short, pay the bills and expand.

In my business, I am tasked everyday with delivering on near impossible tasks no matter how mundane without excuses. There is no room for being passive and you better have a good reason for not executing. It is part of our internal training. Our company is so successful because it is filled with self-starters and doers. This is not to say that everyone must operate at this level or that it's the only way commerce functions, but it could be the difference between your start up becoming a profitable business or your department meeting it's yearly targets.

Be aggressive, execute, and make things happen.

Pivot: A Turning Point in Web Exploration

Pivot may revolutionize the way we use the internet.

Gary Flake, founder and director of Live Labs at Microsoft, demonstrates a new technology that allows for the discovery of patterns and links invisible in standard web browsing. It essential has the ability to sort not only massive amounts of data but also content. Use of the internet shifts from just surfing page-to-page to actually becoming a web of connected sites, information, and content. The combination of all the knowledge and insight from the innumerable sources of the web defined, sorted, and well-presented could define what it means to be connected in the future.

Gary says this is something in between searching and browsing. It is that middle road that makes it so innovative. You would have the ability to operate on a much larger scale and move from many things to many things as opposed to a tedious search of fragments.

It Must Be A Marketing Problem

Steve Blank knows the difference between a marketing and a sales problem.

The first step in solving this problem is getting between the departmental finger pointing and investigating the nuts and bolts of how the product is moved to the consumer.

For any budding company, a great deal of the first sales come from friends and contacts of its board members and employees. As Steve points out, this is can be a potentially significant problem as it inflates sales numbers and sets impossibly high goals and projections. In addition, it keeps the sales team from really getting out in the field and interpreting the problem of the customer and solving that problem.

A company that lacks customer discovery is lost. They have no idea where to enhance or adapt the product and cash is pouring out. Steve says there is not better time to get back to basics and fire the wayward employees. The founder needs to reclaim his job as the most passionate and engaging salesman for his product.

Cool College Start-ups

Entrepreneurship is about vision.

It's about the vision to recognize a gap and fill it. This is not based on age and it is not always based on intelligence. I think it's almost exclusively about following through on that conversation you have with your friends that starts with "It would be so great if....".

Check out this INC. slideshow about simple ideas by college students that generate serious revenue. They are the leaders of our generation because there is no doubt they have the mindset of business owners. At our age, if something fails, it fails. Try something new and start over. Learn from your mistakes and succeed.

Do Your Homework, Get The Job

It had been a while since I went through an interview but, sure enough, walking into the meeting with who will be my new boss brought back the same nervous energy I had when first trying to get into the company. So how do you calm these nerves and get the job every time? Simple, do your homework.

It's important to understand that, first and foremost, an interview is a sales meeting. The person asking the questions has a need and you must convince them you are the best candidate to satisfy that need. As you would in any sales meeting, you must come prepared. The first step is to understand the company and what they do. Use the internet to research every aspect of their business and how they are innovating and moving towards the future. Familiarize yourself with the history and the leaders who have shaped the company. Also, understand the competition and where their strengths and weaknesses lie. I can tell you that most of the candidates will not have this information and will be at severe disadvantage to those who do.

Armed with this research, you can have an extremely educated conversation about the job and how you would fit into the company's vision for the future. Do not propose any 'revolutionary ideas' or changes to the business. This comes with time in the position.

Dig up some information on who will be conducting the interview and who your superior would be. LinkedIn and Facebook will be resources to see work history. Try to talk to someone who works at the company and find out the culture at the office. Tailor your pitch to how your strengths would gel in that particular office environment.

If you come prepared with the right information for an interview then it simply becomes a conversation. Be calm and collected. Prove through doing your homework that you have the work ethic to excel in the position.

Seth Godin On Standing Out In Business

Be remarkable and speak to those who want to listen.

Two simple rules Seth Godin believes define the new world of marketing and business success. The general thought is that we are so inundated with products and services that, without being remarkable, there is no way to get noticed. Playing in the middle is a great way to get ignored. Developing for the finges is the way to get attention and have people start talking about what it is you're doing and creating. Even small changes make a big difference because, as any ad man will tell you, perception is the single largest intangible factor in a marketing campaign's success.

Many of these campaigns are now viral and based on consumers talking about their own experiences through the many social media platforms. Finding the consumers who appreaciate your product is the best way to garner a volunteer sales force. Let them tell one person who tells one person who tells a group of people and you have a better advertising campaign than any commercial you could put on TV. Do this by standing out and being different.

Carpe Diem

It's decision time.

Every so often, an opportunity comes around and you have decide the path to your life's success. These are fantastic moments. They are moments of introspection, evaluation, and idealization. My moment came this week in the form of an exciting new opportunity at work. It was time to really think.

Comfort, to me, is a scary word. I always link being comfortable with settling and that should not be an option when you are young in your career. This is the time to take risks and experiment. Those risks may be dangerous and come with a lot more work and stress, but that is part of the growth and maturation of getting into business. Like my parents always used to say, "Welcome to the real world." As you get older, you will get used to sleeping less and having less time to sit around and watch TV. If you are eager and ambitious to get a jump start on creating success, there will be side businesses and the constant pursuit of extra knowledge on top of your responsibilities at the stable job. Success is attained through small sacrifices.

The more I thought about the opportunity in front of me, the more excited I got. Being at an age where learning from powerful people still gets my heart racing means any chance to work for someone more polished, more respected, and willing to teach along the way is the ULTIMATE opportunity. Sometimes there is no increase in pay, and maybe even a decrease, but it must be seen as an investment. No business class can teach what someones success can.

Don't lose sight of the endgame. Your career is a marathon and should be the right combination of planning and pure instinct. The last thing you want is to look back at retirement age with a 'what if' in your mind. Carpe Diem.

Steve Jobs And The Path To Personal Success

Steve Jobs has had several unbelievable stories of succees in his life but, in his commencement speech at Stanford University, he tells three surprising stories that influenced his life. These are tales of confusion, naivete, despair, death, and humility that shaped the man and success story Jobs has been for so many years. I will let you hear the stories from him, but wanted to post what I found so energizing and eye-opening about his life.

It's not easy to stomach venturing off the well-beaten and expected path of a typical, successful life. Jobs dropped out of college and took that very route. He trusted that things would work out and maintained his intellectual curiosity and sense of a greater purpose. Sometimes we have to trust the forces of the Universe and our own ability to create success and opportunity to truly achieve our life's destiny. Follow your heart and intuition, shoot for the stars and don't settle.

Jobs was very publicly fired from his post as CEO, not to mention Founder, of Apple. It was only through what became an opportunity that he was able to create and prosper the rewards he found later in life. The world deals setbacks everyday. They will always hurt at first, but understand why they happened and what opportunities they allow for the future. You just have to stay hungry.

The last part of the speech examines death and it's role in living. He talks about how you must assume your time could come and live for the happiness you deserve. Jobs makes a point to look in the mirror everyday and ask if he is happy doing what he is doing. Are you?

Lessons From A Legend: Richard Branson

LOSING MY VIRGINITY, the autobiography by British mogul Richard Branson, is a game-changer for anyone is business. Branson shows the value of listening to your customers, challenging the status-quo, and doing business on your own terms. In almost every business he started or is involved with, he had the unique ability to see large gaps in service and tailor a business to connect with the needs of the customers. The way he was able to have fun in these incredibly trying and stressful stages of business development is almost as astounding as the level of success he has attained with the Virgin Group.

Don't be afraid of competition: Whether it was Virgin Airlines challenging the pillar of English air travel in British Airways or Virgin Music Stores opening shops to compete with the cold, stuffy record stores of the time, Branson was never afraid of a little competition. Just because a business is operating doesn't mean the customers are satisfied with the service. They may just not have enough options to choose otherwise. With Virgin Airways, Branson made travel fun and comfortable again. In Virgin Music Stores, he added bean bags and allowed customers to hang out in the lounge setting. It was all about identifying with the consumer.

Controversy Isn't Always A Bad Thing: Branson has often been criticised for being a showman. But, in reality, he was only using the press to increase the visibility of his brands and show the characteristics that made them successful. The Sex Pistols and Culture Club may have been controversial, but they didn't hurt anyone and their exposure to the public was great for business. Be sure you are not violating any laws or crossing any major moral boundaries and turn the publicity into positive exposure for the merits of your business.

Have Fun: The only reason Branson has been able to hold the passion for business as long as he has is because of his ability to have fun. There don't have to be the rigid constraints that sometimes monopolize corporate culture in order to succeed. Keep hobbies and make sure you love what you do and it will show through on the balance sheet. Branson also always had a deep love for his employees and customers. He is known to carry around a notebook and write down the ideas of his staff and consumers to implement. These personal connections will keep you motivated and fresh.

There are no set rules for success. Branson shows anyone can make it with the right passion for what they do and the instincts to adapt with the market.

Custom Fabrication And Open Source Technology For Entrepreneurs

WIRED shows us how the age of open source, custom fabrication and online product design can make anyone an entrepreneur.

Augmented Reality WiIl Blow Your Mind

Blaise Aguera y Arcas demonstrated the future of mapping technology at the TED Conference in Long Beach, CA a few days ago. It is no surprise that he drew gasps from the crowd as he showed the combination of digital and real world imagery on one screen. Augmented Reality will be the future as the technology seems to be multiplying in it's capability and functionality by the month.

When you watch this video, picture this technology on your mobile phone as you explore a city or are trying to avoid traffic in a particular area. It is an incredibly inspiring demonstration.

The Corner Office MBA: Cash Flow is King

By Dave Richardson

Business is tough, the economy is unstable. You need cash flow to make payroll and pay bills. Wait! No, you need profits to make payroll and pay your bills. No, wrong! If you have more cash flow coming in this month than bills then the cash flow has kept you alive a little longer until you can make a profit.

So….if you have $20,000.00 in bills due this month and you can get $20,000.00 worth of cash coming in to pay the bills you survive another month. The problem is in order to get the $20,000.00 in revenue you have had to cut prices to get the business. You then spend $22,000.00 to operate the business for another month, which will be due next month.

Next month you do whatever it takes to get $22,000.00 in cash flow to pay the bills. No matter what, you have to have $22,000.00 in cash flow to pay the bills even if it costs you $25,000.00, which of course will now be due the next month.

Hopefully when times were good you saved up. In the above scenario, if you have $50,000.00 in a line of credit or extra in your operating account maybe your business will survive another 12 months or so. Or maybe you can last 2 months with no cash flow.

As you can see, depending on how deep your pockets are, you can do this for only so long. Some day you will have to start making a profit or lose your business. You could cross your arms, pout and vow that you’re not going to cut prices just to get work, and there goes your cash flow. You will be out of business…soon. Or, you keep your customers happy, lower your prices, and bring in some cash flow.

Businesses that have a large amount of overhead, expensive equipment payments, or grew too fast will not last as long as those who managed their growth and overhead. To survive you may have to restructure your loans to spread out the payments, sell excessive or unused equipment and inventory. Sometime you have to trim your staff.

Cash flow does not equal profit. Not making a profit does not mean you will go out of business, however eventually to stay in business you will eventually need to run your business in a profitable manner.

About the author: Dave is the Founder and President of Crush It Inc. , a custom concrete and asphalt crushing company based in Florida. He and his wife, Lisa, grew the company from scratch into one of the largest and most successful in the state. Check them out at http://www.customcrushers.com/.

Drink The Kool-Aid

Drink the Kool-Aid and take your career to new heights.

MEN'S HEALTH had an article this month that hit real close to home. It details the many disadvantages of a cynic, those who blame others for their problems in both their business and personal lives. Constantly complaining and asking questions as to why it never seems to happen for you eliminates motivation and takes time away from what you could be accomplishing to get ahead. It's time to take responsibility for what happens in your career and create the opportunities that will lead to success.

The article quotes Mathew McConaughey, "Cynics love to put their finger on disease before they put it on health. It's the easy way to go. Play the blame game." The problem is that successful people do the opposite. They drink the Kool-Aid and believe they create their own destinies.

Everyone in the business world suffers from cynicism at some point, especially those in the corporate world. I found myself sitting at work several times this week thinking cynical thoughts about my workload and those around me. Sometimes we just need a wake-up call. Think about all you're learning and the connections you're making. Think about being young with the world in your grasp. Think positive. Drink the Kool-Aid.

David Heinemeier Hansson: The Secret To Making Money Online

David Heinemeier Hansson of 37signals and the creator of Ruby on Rails delivers a must-see speech on the merits of running a sustainable business without the desire to get bought out by a conglomerate. To set the stage, David is speaking after attendees have just been taught, by speaker after speaker, how to pitch VC's and get high-level financing for their business.

The counter-argument is the so-called 'mom and pop shop' of the Internet
that fills a niche and charges for it's services in order to create consistent revenue and profit. The numbers are simple; with the large number of online consumers and the relatively low overhead of most Internet businesses, consistent cash flow can keep you wealthy and happy for years. Find the hole in the market and create a product to fill the void. This idea is only rational because, as David points out, selling your business to a large company is the equivalent to winning the lottery.

BRAVO Partners With Foursquare

The NYTIMES ran this article today about a partnership agreement between Foursquare and BRAVO Network. Foursquare, a mobile phone app that allows people to explore towns and give reviews and tips, has partnered with BRAVO to engage viewers on locations inspired by their shows. It's another step in the interaction companies are looking for with their consumers as mobile apps allow for constant connection. This is a fairly groundbreaking agreement that will likely inspire many other networks to follow suit.

BRAVO WORKS WITH FOURSQUARE TO ENGAGE FANS ON PHONES.

Mark Cuban's Message To The Young

You can't argue with the man's success. Mark points out that you can't be in too much of a hurry to grow-up and the importance of absorbing all the basic business principles you can. As most of us will find out, you learn more through real world experience than any class can teach.

SUCCESS & MOTIVATION: SCATTERBRAINED AND IN COLLEGE

Eugene Lin: iPHONING MY WAY TO RETIREMENT

Great speech from Eugene Lin on how he finally made money selling iPhone apps. Keep trying until that one slightly inappropriate idea takes you to the bank.

iPHONING MY WAY TO RETIREMENT $.70 AT A TIME by Eugene Lin from Ignite Show on Vimeo.

The Corner Office MBA: The Value of Mistakes

By John Collins

All driven, ambitious individuals set goals. I doubt many use the word “failure” in a list of those business or personal goals. That is a mistake. It ignores the value of screwing up, of trying something new, or innovative, or untried, or “crazy” and not immediately succeeding. It does not recognize the value of mistakes.

Few disregard the worth of a formal education. Learning generally has a well deserved reputation for value on its own -- try getting a gig at Goldman Sachs without your name on a diploma. But generally, my experience is that many entrepreneurs and managers (especially young, cocky ones like I was) discount the worth of lessons taught by failure. Because failure was the antonym of my ambition, it took years of experience to teach me the value of mistakes. “Business judgment” is a trait of effective, successful leaders. The only way to learn “judgment” is through experience. The experiences that made the most lasting effect on my success were not always successes.

I am not suggesting that one should plan to fail – that you start your day, week, month or year by looking forward to a disaster. I am suggesting that you not ignore the view from behind – that you finish your day, week, month and year by carefully understanding what did not work as well as accounting for what did. This is especially true when managing others, when developing talent in others to leverage your success. Few individuals get rich working alone. If you make those working for you (or with you) fear mistakes, what you get are monkeys with typewriters. They will eventually spell a word, but will never create value.

So, what is the value of mistakes in business? It is certainly not the effect -- it is the cause. Analyzing why something did not work, or how a mistake occurred, and using that “education” to make changes designed to make it work or prevent re occurrence. That is the value of failure. Encouraging innovation will likely not result in universal success with every attempt – mistakes are unavoidable. If you think you never make errors, you are mistaken. However, you can universally learn from every failure – and improve your chances of future success.

About the author: John Collins is an entrepreneur and business consultant based in Washington D.C. He formerly founded and served as CEO of Portsmouth Financial Group, Inc. and held senior positions at Knightsbridge Management LLC, Feltman & Co, DeStor Corporation, and The Home Depot.

Make Your Business Happen

It is possible to start a business in a recession.

The financing is out there. Venture Capital firms handed out $17.7 billion in financing, angel investors are looking to nurture and mentor, and, what seems to be the most exciting of all, the age of the incubator is upon us.

Picture this: You move to San Francisco to develop your business where you are given office space surrounded by other smart, motivated entrepreneurs sharing ideas and contacts. At night, you go to dinner with some of the icons of technology, business, and investment. This is the essence of the Y Incubator founded by Paul Graham and Company. They also give you an investment to obtain between 2-6% of your company. It's hard to imagine a better way to get started and this is far from the only incubator that exists. They are sprouting up all over the country from Charlotte to Seattle. And, of course, those running the incubators are doing everything they can to help you succeed in order to make their investment worth while.

Angel investors can sometimes be exactly what their title says to your business. They provide capital and, with the right investor, the opportunity to use their knowledge in your growth. Target entrepreneurs from your industry and you will find a more hands-on director who can help guide through the perils of a start up. Netscape founder Marc Andreeson was already a legend in Silicon Valley before he started investing and mentoring the next crop of web 2.0 innovators. Contacts and industry knowledge that come from a person of his stature can change the game for a young company.

Venture capital firms want the next idea. Think mobile, on-demand, or a completely new model of commerce. They are still investing at very high rates, but don't think they are your only option.

Be creative. There is no better time than now, recession or not.

Engage With Your Community

Decrease your spending and increase potential clients and buyers through the new wave of digital marketing.

It's time to use a more integrated, targeted, and brand-building strategy to create a buzz and reputation customers will associate with your company. The new platforms include blogs, podcasts, virtual worlds, web communities, and social media. The beauty of these mediums is the initial investment of time and not money.

There are a lot of tutorials on how best to use digital marketing, but it all boils down to a few simple lessons: be transparent as a brand, engage in conversations with your customers, and use multiple platforms to establish credibility and reach a wider audience. Twitter and Facebook are a great place to start with their ease of use and the vastness of their communities. Start a page, begin engaging in conversations, and don't over-promote. The brand itself is going to have to cede some control to the customer and trust the process.

Become active in the various ratings systems such as Yelp. These sites are only growing and a few bad reviews can be costly to your business in the same way a good review can help. Ask why people had a negative experience and what you can do to rectify the situation. The beauty of sites like Yelp and Twitter is the ability to identify unhappy consumers and change their minds.

A Digital Nomad

While I don't agree with all of the principles of Tim Ferriss' 4 HOUR WORK WEEK, it certainly has some good points. He did a series of testimonials from followers and I watched this video with a very small amount of jealousy. Maneesh Sethi showcases all the ways you can make money on the internet using a little creativity.

The Corner Office MBA: Listening

by Evan

God gave us two ears and one mouth.

Nearly 70% of our country’s Gross Domestic Product (GDP) comes from consumer spending. As Americans, we produce and consume goods and services that drive our economy. Someone comes up with an idea - that is then manufactured, packaged, marketed and distributed to an end consumer.

Therein lies the rub.

The end consumer. The purchaser. The individual who has a “need” that must be satisfied through obtaining the “product”.

In school you’re taught the basics. Reading, writing and arithmetic. But they never teach selling. The one thing that you could attribute the majority of our GDP too. And what is selling? Selling is communication. Selling is understanding the various qualities and capabilities of a product and being able to translate that information to a consumer. We must be informed of what they want in order to deliver the proper advice and sell them. What does the consumer want?

Therein lies the rub.

The consumer, your potential client, has a certain set of needs that must be satisfied through the purchase of the product. We must find out what these are through a process called “Discovery”. We ask questions to identify what the client wants and then we – shut up. Stop talking. Remain silent. When a potential client is telling you what they want – listen to them – understand it – and try to mentally match your product(s) with what they had in mind. Ask more questions to refine their criteria.

The conversation should be back and forth, but should mostly be centered around the client. Cause its not about you – its about them.

Therein lies the rub.

When you are in the process of discovery , LISTEN to what the client has to say, and don’t be afraid to repeat it to them. This is probably one of the most effective, yet underrated techniques in selling. After you are done asking a question, listen to the answer and then repeat back to the client what they just said.

Its not easy to listen, in actuality its one of the most difficult things to do. But for those of us who can master the discovery process, and listen to the answers, we will become much more effective in the world of sales.

About the author: Evan is an investment advisor at one of the top firms in Los Angeles. His clients include affluent individuals and private institutions.

The Founder Factor

Fred Wilson has a cool take on company founders. They run the most innovative, forward-thinking businesses because it's always about what comes next and not the merits of the past.

THE FOUNDER FACTOR

Learning From A Recession

Survival was the main objective for many companies during the recession that has gripped the global economy for the past 18 months. Businesses got leaner, more reactive, and certainly learned to operate with more efficiency as a matter of necessity rather than want.

Whether your company was in the real estate market or not meant little when the international markets froze, prices tumbled, and a wide-ranging economic disaster struck. It is nothing any of us could have planned for (except for the brilliant hedge fund managers who bet against the bubble and took home 1000% gains for their efforts) but an event that truly separated the good business managers from the great. Those of us lucky enough to be young, still-employed and interested can take away many great business lessons.

Don't become complacent. Your balance sheet is the most important indicator to how you can survive in a climate of free-fall. When markets freeze, the ability to get financing to keep your company moving becomes near impossible. Your reserves are your ticket to survival. Unless you operate the rare 'recession-proof business', you can count on a large percentage of your sales and profits dipping in these tumultuous times. Cash flow will be the key. Always monitor your books and understand how long you could survive if things change.

React quickly. Don't wait until the business is lost to make the necessary cost and staff-cutting decisions to save the company. Make your company as lean as possible without compromising the essentials. Sales, marketing, and research & development must remain strong. While making these changes, always remember the tremendous opportunity a recovery brings. Position the business to reap the rewards of another company's lack of preparation. The only way to dig yourself out of a revenue and profit hole is to make sales!

Diversify your customer base. One account should never be responsible for more than 15% of your revenue, especially in tough times. Always envision the future based on the possibility that you could lose your biggest account. What would happen? Understand the impact a sudden change could have on the books. This is also an opportunity to diversify your employees. Recessions are a great time to recruit talented people who have had a run of bad luck.

The leader must make themselves visible. Your company needs to know who is in charge and that they have a plan to attack the problem . Her or she is their ticket to employment. This kind of decisiveness and leadership has a trickle-down effect in how they deal with customers and market to prospects.

Take the lessons from tough economic times and apply them when times are good. It is the only way to truly ensure your companies' ability to survive and thrive in all climates.

The Great Business Of Apps

Mobile app development companies may soon rival software pioneers like Microsoft.

Apps are remarkable not only because of the functions they can simplify, but also because of their revenue potential:

1. Consumers purchase the apps.
2. Users are exposed to advertising embedded within the app
3. In certain situations, digital products can be bought to enhance game play

That is a remarkable business model. The digital products are the smartest aspect of this operation and the most successful developers have a keen understanding of this. Further, every click is being recorded and analyzed to increase productivity and profitability. Venture Capital firms have taken notice and are investing and incubating these companies at increasing rates.

There are relatively few barriers to entry in this market. By all accounts, learning to write the software is an easy task and the hardest part has been gaining approval from Apple. Google is attempting to take away that obstacle allowing a much freer process of getting apps onto phones operating on their Android system.

The next step is combining the everyday functions of these apps with a serious, branded business purpose. Corporations are writing programs to allow their employees in the field to work directly within their systems. This can be accomplished by almost anyone with an IT department and a little training. Also, the movement to Augmented Reality in combining the Internet and what is seen in front of you should be a huge breakthrough, and it can only happen with a phone.