A lot has happened since 2003 when I first joined a small online advertising startup in Irvine CA!  Fast forward 10 years and we have seen a great maturity from online ad brokering to true innovation in technology in Orange County from the likes of Oculus VR to soon to come Payoff.com .

We've had a growth in the interest of creating entrepreneurs in Orange County CA for quite some time through the university systems and we're hoping to loop in full circle with the Founder Institute Orange County Chapter .

Irvine seems to still be taking the lead in having the best harvest of technologists and entrepreneurs.  We'll have a select group of mentors and entrepreneurs gathered to kickoff Winter 2014 for the Founder Institute in OC - share the news and join us!

Bootstrapping 101

Over the last five years approximately 600,000 entrepreneurs pitched first tier venture capital firms in North America and about 15,000 received funding. Your chances of getting funded are 2.5%. This is a fact. Many of those that were funded became quite wealthy and many more failed. Venture capital firms are looking for home runs not base hits.

To begin, let's say you're having difficulties raising capital for one of a multitude of reasons. You lack an experienced management team with a track record of prior success, your product is still in development, the service you've created hasn't been market tested and you still haven't refined the sales process. Or, your company may simply not be a "VC deal" or a "home run", that is, something that will go public or be acquired for a bazillion dollars. Finally, your organization may be a non-profit with a cause like the environment or autism. Does this mean you should give up? Not at all.

I could build a case that too much money is worse than too little for most organizations, not that I wouldn't want to buy a NBA franchise one day to emulate Mark Cuban. Until that day comes, the key to success is bootstrapping. Bootstrapping refers to a group of metaphors that share a common meaning, a self-sustaining process that proceeds without external help.

The term is often attributed to Rudolf Erich Raspe's story The Surprising Adventures of Baron Munchausen, where the main character pulls himself out of a swamp, though it's disputed whether it was done by his hair or by his bootstraps. Regardless bootstrapping sounds a lot more businesslike and appealing than hairstrapping. What follows is some practical advice for bootstrapping a start-up or small business.

First, focus on cash flow, not profitability. Generating revenue and profíts is the key to survival. If you could pay the bills with theories, this would be fine. The reality is that you pay bills with cash, so focus on cash flow. If you know you are going to bootstrap, you should start a business with a small up-front capital requirement, short sales cycles, short payment terms, and recurring revenue. Service oriented businesses or new products in hot market segments come to mind immediately.

Next, forecast from the bottom-up. Most entrepreneurs do a top-down forecast: "There are 150 million cars in America. It sure seems reasonable that we can get a mere 1% of car owners to install our satellite radio systems. That's 1.5 million systems in the first year." The bottom-up forecast goes like this: "We can open up ten installation facilities in the first year. On an average day, they can install ten systems. So our first year sales will be 10 facilities x 10 systems x 240 days = 24,000 satellite radio systems." 24,000 is a long way from the conservative 1.5 million systems in the top-down approach. Guess which number is more likely to happen. This is one of the most common mistakes I see entrepreneurs make. Stop dreaming and let's get real.

Hire an affordable mentor or small business coach to provide guidance based upon relevant experience. Most likely they've bootstrapped their own businesses in the past. They can provide you with valuable objective advice steering you around potential pitfalls and hopefully save you dollars, along with time, by keeping you from making the same mistakes as they did in the past. They also aren't going to want equity in your business just by having their name attached to it or request a seat on your board of directors.  

Most start-up small business entrepreneurs don't have a "proven team" and you can't create experience out of thin air. Proven teams are often over-rated anyways. Especially when most people define proven teams as people who worked for a multibillion dollar company for the past ten years. These folks are accustomed to a certain lifestyle, and it's not the bootstrapping lifestyle. Hire young, cheap, and hungry people. Employees with passion and desire along with low overheads are going to be much more likely to stick beside you during the inevitable ups and downs your business will face. Once you achieve significant cash flow, you can hire experienced supervision. Until then, hire what you can afford and make them into great employees.

What type of business is best for bootstrapping you ask? One path to take is to start as a service business. Let's say that you ultimately want to be a software company: people download your software or you send them CDs, and they pay you. That's a nice, clean business with a proven business model. However, until you finish the software, you could provide consulting and services based on your work-in-process software. This has two advantages: immediate revenue and true customer testing of your software. Once the software is field-tested and battle-hardened, flip the switch and become a product company. You'll also have obtained a líst of satisfied clients and developed important industry connections which can be priceless.

During the start-up stage be prudent and focus on value. You don't need the fanciest office furniture, phone system or computers. Look for the best value, haggle and shop around for the best deals. There is no shame is negotiating pricing and terms on almost anything related to your business. Sometimes the best isn't always the best either; it's just the most expensive.

When it comes to employees make sure new hires have multiple skill sets and can handle stress because if they can't they're going to crack or go crazy lowering overall morale in the process. You are the visionary and leader of the company. Your employees need to believe and put their faith in you. Take your time; hire carefully. At times you'll be asking your employees to do three jobs at once, while learning a fourth, and eating lunch that day at their desk because there's so much work to be done. Your employees look to you for leadership so make sure to lead by example. YOU are the first one there and the last one to leave. Every day.

Go direct and sell, sell, sell. The optimal number of mouths (or hands) between a bootstrapper and customer should be zero. Sure, stores provide great customer reach, and wholesalers provide distribution. But ecommerce was invented so that you could sell direct and reap greater margins. By taking this route you'll also learn more about your customer's needs. Stores and wholesalers fill demand, they don't create it. If you create enough demand, you can always get other organizations to fill it later. Why would a store or a wholesaler put time, money and effort into selling your product or service if you can't? If you don't create demand, all the distribution in the world will get you nowhere fast. Sell, sell, sell and if you're not good at selling one of your first hires better be a superstar in that department.

In summary, focus on creating revenue, retain a qualified affordable mentor/business coach, forecast from the bottom up, pick the right business model for bootstrapping, focus on value when purchasing goods and services for your business, take your time to hire the right people and sell, sell, sell. For a small business or a start-up nothing happens until someone sells something to someone. Period.

About The Author
The author, Ellisa Brenneman, is the owner of Ethos Mentor. Ethos Mentor provides entrepreneurs with affordable one on one mentoring, business coaching and capital raising services so they can launch and grow their businesses. Visit www.ethosmentor.com for additional information or email info@ethosmentor.com to schedule a free consultatíon with a Mentor. 

Buffett Warns Of Bubble In Social-Networking IPOs

Buffett Warns Of Bubble In Social-Networking IPOs

By Daya Baran at March 28, 2011 on Webguild

Warren Buffett, one of the world’s greatest investors, said investors should be wary of valuations in social networking websites as they prepare to sell shares to the public.
“Most of them will be overpriced… It’s extremely difficult to value social- networking-site companies… Some will be huge winners, which will make up for the rest”, said Buffett, speaking at a conference in New Delhi, India.
In January 2011, Facebook, was valued at $50 billion based on private stock purchase by Goldman Sachs. Since then the company is being valued at $80 billion based on shares trades on private-share sales site Sharepost. Twitter, is another such company with an astronomical valuation. Groupon, the daily deal site, has held talks about an initial public offering (IPO) that would value it at as much as $25 billion, two people familiar with the matter said earlier this month.
Bubbles happen when investors pay more for an asset than it is fundamentally worth. Eventually, the over paying becomes unsustainable and the bubble pops. It is a greater fool’s theory. This is what happened in the last dot com bubble and this is what’s happening with housing. Now it is starting to happen in social networking. Twitter founders Evan Williams and Jack Dorsey have already sold hundreds of millions worth of shares in the company to investors. They no longer work at the company either – they know at some point the piped piper will knocking on the door and they are getting out while the party is still hot.
Buffet is warning about just that – eventually the investors in these adventures (I prefer adventures) will want to see a return. In Twitter’s case it can only do this by going public and selling its shares to public – reinforcing the greater fools theory. When it does so, public investors will be on the hook while Twitter founders and venture capitalist investors will be long gone.
Here is a comparison of valuations of some adventures between the last dot com bubble and the current social networking bubble that Buffet is alluding to. In 1999, 24 adventures had a valuation of $71 billion by comparison in 2011, 5 adventures have a valuation exceeding $71 billion. The NYTimes also has a piece on the bubble in social networking that is worth reading.

ModelURL will get your attention with style

Top Notch Model Networking Site Launches With Style

Los Angeles, CA – FOR IMMEDIATE RELEASE

The modeling industry just became more exciting with the official launch of ModelURL, an online network specially designed to connect aspiring & professional models, photographers and other creative artists. Presenting this high-paced industry what it needs, ModelURL introduces a fresh, interactive and innovative Web 2.0 site that focuses on the best user experience for its members, connecting them to resources that will benefit them.

The unveiling of ModelURL gives its competitors something to look out for. Shifting beyond the traditional Web 1.0 social media sites, ModelURL combines a sleek and professional design with a superb easy-to-navigate system for members. They can now efficiently manage their identity online and build relationships with people in the modeling world.

“Older model sites may help you make friends like in the Myspace/Web 1.0 era, but our site is positioned in a way to help you get what you really need in this tough industry: reputation, brand awareness, and strong connections,” says Son Le, ModelURL founder and CEO.

ModelURL recognizes the unique needs of both aspiring and professional models and the often-overlooked talents of their photographers, stylists, make-up artists and more. By allowing members to attribute the work of others on their portfolio with a “credit” and vice versa, ModelURL creates and reinforces an inherent reputation system of trust and portfolio quality. Anyone can then search this system.

Similar to Facebook and LinkedIn, members can efficiently manage their online identity by synching their social accounts into one place by importing existing model profiles and even linking their Twitter account.

“Being a professional model and now stylist, I have been a member of many other primitive modeling sites but have found them to be inefficient and ineffective. Our goal is to create a site that's not only comparable to other major successful networking sites such as Twitter and Facebook, but also make it more resourceful and navigable for a community of people that helps each other,” says Lyndzi Trang, ModelURL’s Co-founder and Community Manager.

Only a small fraction of many exclusive features have been implemented on ModelURL. One notable feature is ModelURL’s directory of modeling agencies around the world. Members can now search for agencies and get in contact with them. Other highlighted features that set the modeling networking site apart from the competition include designating yourself with multiple creative trades under one account and import existing profiles from other sites. Reminiscent of Google’s limited release plans, only pillars of the modeling industry have been invited to join the site who are then given only 10 invitations to invite friends.

For additional information on ModelURL or to request an invitation to join, contact Hong Vo or visit http://www.ModelURL.com.

About ModelURL LLC:

ModelURL is the creation of Son Le, a former Yahoo engineer and serial entrepreneur who sold three of his companies, one that was acquired by Brad Greenspan, founder of MySpace. Other partners of ModelURL include Lyndzi Trang, former model and forensic accountant, Los Angeles celebrity and fashion stylist. Kennard Lilly, Los Angeles based creative interaction designer and co-founder of Dope Creative. Hong Vo, online search engine marketing guru from Inc. 500’s award-winning company, Wpromote.

Collaborating on all of their strengths, they make up the ultimate team for the emerging, model networking site.

Media Contact:

Hong Vo

ModelURL

720.341.4160

hong@modelurl.com

http://modelurl.com

###

Big News In WebGuild World!

Skype Legend Bankrupt Trying To Save Newspaper

Posted: January 14, 2009

Morten Lund, the legendary investor behind Skype which was acquired by eBay for $2.6B has declared bankruptcy. Lund filed for bankruptcy in Denmark after losing $100 million in a Danish newspaper venture. The newspaper was distributed free daily and it was supported by advertising. Read more

 

Oprah Biggest User Of Skype Webcasts

Posted: January 14, 2009

Talk show host Oprah Winfrey is the world’s biggest user of Skype. The Oprah Winfrey Show uses Skype for webcasts, conference calls and interviews with big time celebrities and dignitaries. The show Read more

 

Steve Jobs Steps Down

Posted: January 14, 2009

Apple CEO Steve Jobs today sent the following email to all Apple employees: Team, I am sure all of you saw my letter last week sharing something very personal with Read more

 

Google Cuts Engineers & Recruiters

Posted: January 15, 2009

Google has cut 100 full-time recruiters and has closed an engineering office in Austin, five months after it opened with a lavishly catered party, as well as others in Norway and Sweden. Google had hoped Read more

 

More Adults Joining Social Networks

Posted: January 14, 2009

BusinessWeek has a great write up on the growing number of adults using social networks. It is based on the information from the latest PEW Internet Research. The number of adults with at least one profile Read more

 

When Facebook Policy Goes Wrong

Posted: January 14, 2009

Earlier today Facebook shut down the highly successful Burger King Whopper Sacrifice application. The application that we previously wrote about, encourages users to remove ten of their friends in exchange Read more

 

New Yahoo CEO Wants Some ‘Friggin’ Breathing Room’

Posted: January 9, 2009

With Jerry stepping down some months ago after he turned down a $47.5 billion takeover offer from Microsoft and now relegated back to a more obscure Chief Yahoo!, the company has hired a new CEO. Gone Read more

 

Link re-working: this years SEO magic bullet?

Posted: January 14, 2009

Link re-working is something that keeps popping up on my radar and few recent events have prompted me to blog about it. Basically link re-working is the process of contacting people who already link to ... Read more

 

Eli Lilly On What's Next In Cloud Computing

Posted: January 14, 2009

Eli Lilly's Dave Powers talks compellingly about how the pharmaceuticals company is using cloud computing services to support its scientists with on-demand processing power and storage. What's even more Read more

Secret To Wooing Investors

The Secret To Wooing Investors
Steven Berglas, Ph.D., 01.07.09, 01:30 PM EST Source: Forbes

A healthy dose of ingratiation can be as important as a great business plan.

Institutions may be tip-toeing back into the equity markets, but as far as entrepreneurs are concerned, lenders are hunkered down and investors have fled the scene. Only the safest, no-brainer ideas--if those--are attracting new money.

What does this Head Coach know about raising money? Only this one critical, if somewhat unsettling, fact: Financiers (venture capitalists, angel investors, commercial bankers and the like) are more likely to get behind a young company headed by an entrepreneur whose personality appeals to them than one run by someone with whom they don't connect.

While a spiffy M.B.A. can still carry the day in corporate America, entrepreneurs must rely on a host of intangibles to get their dreams funded--and that means doing something that goes against their grain: They must be learn how to be ingratiating.

Now, you might assume that because entrepreneurs have a penchant for breaking rules and thinking about the world in unconventional ways they should have little trouble fudging some of the more superficial aspects of their characters. Wrong.

Comment On This Story
Ingratiation is no cakewalk for entrepreneurs because they are so solidly wedded to their convictions. Indeed, the desire to prove them out runs as deep as the need for air and water.

Moreover, entrepreneurs' drive to prove they are smarter than everyone (particularly the critics they cannot forgive or forget) makes compromising their values and convictions seem not only wholly disingenuous but also threatening to their senses of self. Sometimes, that "I can do the job" confidence is so intense that investors run the other way.

I'm here to help entrepreneurs smooth those edges a bit while not feeling like they've compromised their values. What's worse, after all: a little harmless schmoozing, or not getting what you came for?

Ingratiation--the deliberate effort to create a good impression with others--gets a bad rap; far too many people confuse it with pandering, sucking-up, even conning. There is nothing deceitful about ingratiation--it is merely strategic self-presentation designed to veil (not deny) personality traits that might chafe or offend. In short: Don't sweat it.

How, exactly, to ingratiate yourself with investors (or anyone else in business, for that matter)? Having a winning demeanor is nice, but there's more to it than that. Here are four basic principles to keep in mind.

1. Enthusiasm over narcissism. Express yourself through your passion for your business. Talk about your dreams for changing the world and making money, not about how smart you think you are. (This isn't easy for ego-suffused entrepreneurs.) If a venture capitalist wanted to buy a brain, he'd go shopping at the appropriate university. Also, not all brainiacs make good leaders--and that's what professional investors are looking for.

2. Demonstrate that you are coachable. Nobody likes a pushover, but being able to take direction, or at least a suggestion or two, goes a long way. Don't be afraid to tell investors that you need their help and are hungry to learn. Remember: Investors have egos, too. They don't want to be mere moneybags--they want to be heard. They are also smart enough to know that entrepreneurs abhor structure and bureaucracy, so assuring them that you are open to a bit of direction will set you apart.

3. Project equanimity. Spouting state-of-the-art management techniques isn't nearly as impressive as demonstrating a high "emotional IQ"--specifically, the ability to think calmly and temper your emotions during crunchtime. Young, growing companies deal with plenty of turmoil--investors want to know that you won't cave under the pressure.

4. Let them know you will put the business first. Running your own business may well be your way of filling some psychological void, even cleansing yourself of failures past. Whatever you do, don't let investors in on all that. Make sure they know that you will always put what's right for the business ahead of your own emotional needs. The moment you come off as high-maintenance is the moment investors stow away their checkbooks.

Dr. Steven Berglas spent 25 years on the faculty of Harvard Medical School's Department of Psychiatry. Today, he coaches entrepreneurs, executives and other high-achievers. Direct questions or comments to: drb@berglas.com.

BuddyPress For All

Playing around with Buddypress and helping a friend of mine host a blog platform check out the demo here http://urbantech.bluemonitor.com/demo/

Helping a web startup in downtown San Jose called Blue Monitor and truly believe in the vision it brings to an employee owned web consultancy business model.

The founder Toby Morning and I broke bread last night and had a wonderful dish of spaghetti marinated with a fresh pot of tomatoes, peppered bacon, and whatever else he threw in there that just made it wonderful. We both forgot the wine bottle opener so we got screwed there...but had lit up some very fresh kush before the meal and brainstormed on the services he was offering and a non-profit idea that i hope to revolutionize seed funding for startups.