Companies don’t give a fuck.  They just don’t. They don’t care about users enough, they just don’t.  Which is why when somebody like Zappos gives even a solid fuck, we go crazy.

-Gary Vaynerchuck

No longer does the company hold all the power.  In fact, the power shift is dramatically in the favor of the consumer.  This trend is extremely exciting or scary for companies…depending on their customer service philosophy.

As a business owner, you must view your audience as an important extension of your core foundation.  In fact, the word audience grossly underestimates the value of your customers/clients.  No longer are they on the sideline watching and consuming silently in the stands.

Alternatively, customers more accurately depict a “sixth-man” role when it comes to their impact on businesses.  Just like a sixth man in basketball that comes off the bench to re-energize the team, customers are now responsible for the positive (and subsequently, negative) momentum companies receive when their product/service goes in the wild.

In a “word-of-mouth” economy, like it or not, your brand equity is largely dependent upon these human catalysts.  Better treat them well or suffer the consequences.  Very simply, as Gary Vaynerchuk advises all companies to do, all you have to do is care.

Many would argue that it lies in games.  Not the traditional console games of the past, but an underlying gaming layer that’s pervasive throughout our daily lives made possible by the explosion of mobile phones and connected wireless devices.

We’ve seen a massive shift in the way business is conducted today compared to the past. I believe among other factors, technology has probably played the biggest role in the massive shift.

It’s no surprise either for the internet is about 20 years old (broadly speaking). This means that the  young generation who grew up with the web at their fingertips have grown up, and some have become business leaders.  The difference in their values, business strategy, public relations, and customer appreciation is truly astounding.

I’ve seen multiple interviews with Andrew Mason, and the CEO of Groupon personifies the face of today’s business leader.  Take a look at the clips below and tell me: Does this resemble someone who is running a company that some value at over a billion dollars?  Someone who’s operating a company that’s growth is astronomical and has spurred an entirely new sector of commerce?

Most CEOs will make stuff up about them to make them sound way smarter and cooler [...] I decided to set the bar very low and make up lies about myself that make me sound lame.

-Andrew Mason, CEO, Groupon

Life is just as depressing and hopeless as it was when I wasn’t doing this [...] I never thought of myself an entrepreneur before I started this, and I don’t really now, I just like to build things.

-Andrew Mason, CEO, Groupon

There’s a tremendous difference in the overall attitudes of today’s younger CEO’s, and it has everything to do with the factors and influences that we’ve experienced growing up; things that older generations simply did not have.  Gen-Y realized at a very early age that communication takes place on many different levels and through various mediums.  We also learned that nobody is inaccessible.  We have grown up to expect a LOT from companies.  And we have recently become comfortable with the notion of affecting and changing certain business decisions through the power of social media.  We have an almost unlimited number of tools at our disposal and an infinite amount of information made available at a moment’s notice.

Things are different and the face of today’s business leaders are no exception.  We will continue to see business leaders of tomorrow being more and more:

Transparent

Transparency is a hot buzzword for good reason.  We are seeing more business executives approach their roles with integrity and transparency.  Businesses that do not embrace the importance of being transparent are doomed in a world of virality, search queries, and social networks.

Honest

Equally as important to transparency is honesty.  Consumers expect more out of their favorite companies and brands, and that means trusting the individuals who run them.  Being honest is so important for today’s companies to establish legitimacy with their customer base.

Approachable

Social media has given today’s corporations absolutely NO excuse NOT to be approachable.  Bogged down in email?  Try Twitter.  No longer will business executives hide behind their corporate veil.  That just won’t cut it anymore.

Competitive

The barriers to entry in today’s business arena is nearly zero.  Technological advances have made running a business very cost effective.  As more players enter the market, the level of competition will naturally rise.  Today’s businesses need to remain focused and hungry…especially with the pace of innovation that we are seeing today.

Customer-Centric

More than ever before, we are seeing customers playing a huge part in how businesses are run.  I’m not talking about letting customers make every single strategic decision, but instead, I’m referring to the influence of crowds.  We’ve seen it time and again.  Most recently we have seen Facebook and Apple caught up in a media blitz that started with a few angry customers.  To ignore customers given today’s media channels is corporate suicide.

According to Dan Rainey, a general partner at Grotech Ventures, there are a few lessons that will resonate with most all entrepreneurs as they pursue a startup venture.  Here they are:

1. Things take longer than you ever imagine

2. Items that do succeed tend to do so quickly

3. People will let you down

4. Good employees are really hard to find

5. Your bad employees rarely quit

6. You will be lucky and unlucky

7. Avoid the myth and misery of sunk cost – Get used to making decisions instead of dwelling on “good” versus “bad” money

8. Fill the pipe, always fill the pipe – Keep the “opportunity pipeline” in constant flow.  You’ll appreciate this when your business is going through bad times.

What are some lessons you learned during your business ventures?

Kevin Pruett: What is your background with relation to technology, business, and entrepreneurship?

Ryan Graves: That’s a packed question.  The short answer is that I’ve always been entrepreneurial and I realized that tech was a great way to fulfill those ambitions.  It’s a relatively low barrier to entry and many people are scared by technology.  I figured if I embrace that as young as possible it would create opportunities that others wouldn’t have available to them.  I studied Economics in college, then took a mgmt consulting job.  Next, I ran large IT projects at GE for 3 years. I eventually hustled my way into an internship at foursquare which helped me break into the startup world.

KP: How did you get involved with UberCab? Who does the team consist of?

RG: UberCab was founded by Garrett Camp the current CEO of StumbleUpon.  Him and Travis Kalanick, and angel investor here in SF incubated it and brought me into run it early this year.  We actually met over twitter! Our team is small right now, 3 engineers and myself.  We’ve got some amazing advisors in Garrett & Travis as well as Tim Ferriss, Steve Jang, and Steve Russell.  We haven’t raised any money to date, but we’re working on it.

KP: Those are some great names! What is your advice to entrepreneurs who are looking to break into the startup community?

RG: Follow the main names so you understand the echo system. Then find who you want to work for, then work for free. If you’re awesome, they will hire you.

KP: Was the transition to UberCab difficult?

RG: No. I’m finally working on something that I love doing. That’s why I’m up answering these questions for this interview and it’s 1:15am. I just love it.
There is a lot to learn however, but that’s what makes it so fun.

KP: How would you compare a Project Manager role at GE to being the CEO of a technology startup?

RG: There are similarities but running a company take about 1000 more skills that being a project manager. The number of different things I do each day continually surprises me. When you’re a project manager it’s easy to stay high level. When you’re an entrepreneur it’s a requirement to be able to dive into the details but always keep your eye on the high level.  Understanding both where you’re trying to go, and how your going to get there is critical.

KP: We see a lot of “business-types” wanting to get involved in the dot-com arena, although often times, they lack certain technical knowledge. How should “non-technical” entrepreneurs approach technical ventures?

RG: I was once told that if you [as a business person] understand the jokes that developers tell, then you understand the technology enough. Really it’s an endless process. Business people in tech should always continue to learn the technologies that they’re businesses are using.

KP: Is it REALLY necessary to be in San Fransisco to properly run a tech startup?

RG: Is it necessary, no. Is it 100x easier, yes. Honestly, if you’re going to do a startup I would do it in SF or NYC. But look at Groupon (Chicago), so maybe I’m full of shit.

KP: What industry trends are you particularly interested in?

RG: I’m having fun disrupting a real world business with technology. There will always be opportunity for that.

KP: What differentiates UberCab from its competitors?

RG: We are super-focused on creating an end to end experience that people say WOW about. We handle the request process, the car service or trip, and the billing. By doing that, and rocking at every step is how we will win the hearts of users.

KP: Any plans on expanding UberCabs services to outside San Fransisco?  How would UberCab do in New York City?

RG: New York, LA and beyond. Announcements coming soon!

KP: What is the greatest bit of advice you wish you received that you learned on your own?

RG: Good things never come over night. You just gotta keep hustling and hustling and you’ll eventually nail it.

KP: What are some of your favorite resources that you urge other entrepreneurs to follow?

RG: Hands down my favorite startup blog now is that of Ben Horowitz. Hacker News & anything Paul Graham. Travis Kalanick’s post on raising seed money.

This desire to be ahead of the times is alluring for obvious reasons, but for the vast majority of ideas and projects, leading in this category should be far down the list of priorities.  In order to create an impact, it’s just not as important as many would lead you to believe.

Author, marketing guru, and entrepreneur Seth Godin speaks of this concept in his latest book, Linchpin.  He explains the importance of operating on the border of “the box” instead of operating completely outside of it.  The thought is, if you can

recognize and acknowledge the needs of the mass market while operating slightly ahead of their curve, you stand a greater chance of gaining adoption as compared to the few operating well outside of the box.
These individuals (we’ll call them “creatives”) tend to come up with big, bold ideas that are either: a) not understood by the masses, or b) too early to properly execute.  This is why Godin stresses the importance of operating somewhere in between.

A great example of this concept is found in an interview (a must see in my opinion) with serial entrepreneur Michael Robertson on This Week In Startups.  Robertson speaks of several business ventures where he was simply too early and flat-out failed as a result.

When you’re an entrepreneur, timing for [these] big macro trends is critical, if you’re too early, you lose…You gotta get your ear closer to the ground, it’s not about having the right idea and seeing the future, it’s about getting the timing right.
-Michael Robertson

Robertson’s point is well made and he is living proof that first-to-market is not all that important in creating a successful product or service.

Instead of Focusing on Being First, Focus Your Attention on:

Your Idea

It sounds obvious, but you must have a clear vision for the idea you are bringing to market.  Are you prepared to “pivot” your focus if necessary?  Remaining flexible throughout the initial stages of your business will prove much more valuable than simply being first.

Right Now

Where is the general audience right now in regards to your product or service?  Would your mother understand your business today?  Are there any complementary materials outside of your control that are contingent on the success of your business venture (technology, infrastructure, etc.)?  If so, are they mature enough or years away from mass market adoption?
Rule of Thumb: Think in 6-month intervals.

Core Competencies

The businesses who succeed are rarely the ones who come to the scene first.  Instead,  it’s the companies that innovate, change, and disrupt the status quo who gain attention.  How does your business do this?  What’s special about your company’s product or service?  How do you create change in the market?  Forget about who, what, and when, just focus on how you can move your industry forward in your own unique way.

“We should be raising kids to be entrepreneurs instead of lawyers.”
-Cameron Herold

Herold champions the idea of being an entrepreneur.  He believes we have an obligation to teach kids to become entrepreneurial and self-sufficient.  Instead of teaching children to react, let’s teach them to act.

It’s a widely held belief shared by many prominent business professionals that MBA programs are not useful in breeding effective entrepreneurs.  Herold agrees with this wholeheartedly, stating:

“Our MBA programs don’t teach kids to become entrepreneurs, they teach them to go work in corporations.  So who’s starting these companies?”

Schools in general are not conducive to breeding these types of individuals.  Schools are really only great at one thing: duplicating like-minded individuals.  But it’s almost impossible to find examples when general education has contributed and/or embraced the entrepreneurial sentiment.  Herold argues that instead of medicating children with ADD and forcing them to conform to the “system,” we should be embracing their passion.  Similarly, Herold explains how bi-polar disorder is nicknamed the “CEO disease”, explaining how Steve Jobs, Ted Turner, and the founders of Netscape all had this condition.  Large institutions, particularly educational, lack the knowledge and capabilities in dealing with certain individuals who think, act, and behave outside the “norm”.  Just imagine how tragic the outcome if these individuals were coerced into following the same path as their peers.  This is where Herold’s enthusiastic stand for entrepreneurship shows its merit.

The core takeaway from Cameron Herold’s talk at TED (shown below) is that kids who don’t excel at school need not be treated as failures.  Instead of forcing them to adapt to the rigid educational system, kids should be taught how to embrace their talents and passions on a much broader level.  More specifically, children should be taught the self-sufficient skills of  becoming an entrepreneur instead of fitting an old and tired model.

Disruption is an inevitability that many executives and business owners are frightened to death of. It’s no surprise than, as to why the hungry, passionate, savvy, scrappy entrepreneur-types relish in this type of disruption. Disruption is the reality check for big organizations who become complacent. Disruption is the constant balance necessary between innovation and stagnation. Disruption is the automated removal of irrelevance. Disruption is completely unbiased. Disruption is … the only way.

We’ve seen time and time again how ignoring disruption can lead to business annihilation. In most instances, corporations choose to ignore the early warning signs, opting instead to embrace their close-minded agendas, only to be blindsided (shock!) by more agile competitors and/or powerful market trends.

In the past two years, we have seen nearly every prominent industry disrupted to some degree. The automobile industry, financial institutions, media conglomerates, the list is a mile long…and it continues to grow.

My name is Kevin Pruett and I have been “analyzing” businesses and their effect on society ever since I can remember. Son of a Wall Street executive, I was exposed to the free market economic philosophy at a very early age. As a result, I quickly became fascinated with the driving forces that shift markets and affect businesses. Despite the unrivaled influence of Wall Street, I never fully bought into it. I recall walking out of my father’s 16th floor office at 12-years old (1997) trying to think up ways to completely reshape the industry. (ah, childish exuberance!)

Businesses are not faceless stock tickers. They are not commodities or products of speculation. For a long time now, we have treated these publicly traded companies as the ultimate indicator of business success. Those days are long gone…Enter the disruptive business era.

I started gaWrilla as a place to speak directly to those passionate about delivering purpose and meaning through business ventures. The “gawrilla” represents that special breed of animal (in a jungle of competition) that engages in three core principles: 1) vision 2) passion and 3) execution. It is my belief that stripping a business down to these basic layers allows for true growth and discovery. It is also my belief that by embracing this methodology, true disruption is likely to occur.

I have a passion for being disruptive….I have a passion for breeding gawrillas.

Contact Me:
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The great debate at TechCrunch Disrupt over lean versus fat startups between Ben Horowitz of Andreessen Horowitz and Fred Wilson of Union Square Ventures.  Ben takes the side of the “fat” or capital intensive startup methodology as Fred takes the side of the “lean” or capital efficient startup strategy.

Ben Horowitz makes first statements: He asks:

a) How do you know you achieved product market fit?
b) What happens if prior to product market fit, a scary competitor emerges?

Ben’s main focal point:

Ben doesn’t want entrepreneurs to avoid big ideas by focusing on being lean.  Might as well build something important, and that sometimes requires being bigger.

Fred Wilson makes his counter, from the perspective of an entrepreneur:

Consider two important factors:

a) The probability of successful exit [which consists of i) quality idea, ii) quality product, iii) quality team, iv) capital, v) market, vi) luck], and
b) Ownership at exit.

Fred states that if you double the amount of cash, this doesn’t increase the probability of successful exit but it does dilute the overall ownership at exit.

Fred makes his point from the perspective of an investor

It’s much better to invest a small amount of capital when risk is high, then increase amount of capital investment as risk decreases.  Staying lean in the beginning until the valuation reaches a point where the risk is mitigated makes most sense.

Ben’s rebuttal

Sometimes you need a lot of capital, otherwise, the product may never come to fruition.

Fred’s response

Start small, then ramp up.  In the tech sector, this makes most sense.  Other industries may differ (planes, trains, automobiles).

Moderator asks:

“Can big problems be solved when the entrepreneurs are starving?”

Fred – I think you can.

*Fred Wins the Debate*