Startup-Blog, by Eli Portnoy

Sep 09

TechCrunch50

TC50 I am in SF at the TechCrunch conference listening to 50 startups present to a room packed with VC’s and Business Development guys. It’s proving out to be a great place to meet the movers and shakers of the industry.

Popularity: 47% [?]

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Jul 28

Cuil.com - A disruptive force

Innovation No Comments »

Cuil.com launched last night to tremendous fanfare. Most people are focused on the relevancy of search results, but to me the big story here is the cost effective indexing.

Google is so entrenched because it has virtually no competition aside from Yahoo and Microsoft (with Ask, Snap and a few Sequoia backed startups sprinkled in). This is mostly because the cost of indexing produces a very high barrier to entry and only a handful of players can even think about playing in the space. Just think of what happened to Powerset, they built some cool stuff but couldn’t do anything aside from M&A because of the high cost of indexing enough of the web.

So if Cuil really did find a way to bring the cost of indexing way down, I hope they become the index provider/backbone to other search startups. If they do this, then all of a sudden one big barrier to entry crumbles and tons of competition in the search space becomes a possibility. Competition = innovation.

Popularity: 55% [?]

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Jul 23

My Two Cents on the iPhone

Uncategorized No Comments »

I waited out the first iPhone mostly because I was happy with my Blackberry, but with the launch of the App store I decided to take the plunge. Below is my take on the sold-out phone.

General Thoughts:

The hardware is beautiful and has a solid feel unlike any other consumer electronic device I have played with. The user interface is incredibly intuitive, powerful and easy to use. There are countless features that I thought were
missing, only to find even better ways of doing them as I got more comfortable (i.e. better ways of navigating contacts, no scrolling mechanism…).

Web: Amazing experience. I browse entire sites and even enjoy it. The experience is 100x what it was on my blackberry, almost like comparing horseback riding to airplanes.

Phone: Very good quality. The controls (speaker, conference call…) are easy and intuitive. The sensor is incredibly responsive, so my face never accidently touches any buttons. I wish it had speed dial keys on the main page or voice dialing, instead of having to click on the phone button then the favorite button and then finally select my contact. That’s my only complaint and otherwise a great, great phone.

App store: Unbelievable!!! I have about 15 applications and they are all amazing. I think the app store is the single best thing about the phone. Pandora, Facebook, YelloPages, Yelp, Voice Recorder, Bloomberg…the list goes on, I get my news, entertainment, everything on it. Very cool and will keep getting better.

GPS: A cool feature, but no reason to get the iPhone 3G over the last version. It’s great when searching with the Yellowpages or Yelp apps, because you just search for “restaurant” and it shows you the closest ones. There are a few apps that make use of the GPS, and it is cool and convenient - but not critical.

Keyboard: Much better than I expected. The correction software is quiet amazing. I would say its somewhere between typing with a Pearl and a full-fledged BlackBerry.

MobileMe: I had this, but cancelled mostly because I have exchange and I am on a PC. It worked well, but I like using Google Calendar and mobile me only syncs with outlook on the PC. (CompanionLink just released an app that I think works better than MobileMe, but without push email). The contacts can be synced with Google but not the calendar. Otherwise worked very well. Push email was equally as good as on my blackberry.

Ipod: Amazing. Brilliant. Love watching movies on it.

Battery: By far the biggest knock and almost a deal breaker. It barely makes it a whole day of heavy use. I solved this by getting a battery pack from RichardSolo which I keep with me as backup. On the positive note the charger is tiny, so it’s easy enough to have that handy in the office.

My Recommendation: Overall I love the iPhone and I can’t remember what I did without it. If you have a first version of the iPhone I wouldn’t upgrade just for the 3G and GPS, but if you don’t then absolutely go for it!

Popularity: 53% [?]

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Jun 12

Interesting new VC Blog

Uncategorized No Comments »

I apologize for the long delay in posting, but things have been pretty busy. In the meantime, I strongly suggest that you check out a new blog about VC, Startups, and other good stuff. Its written by some great entrepreneurs turned VC’s over at Momentum Venture Management.

Check out the blog here.

Popularity: 61% [?]

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Jul 30

It’s the Customer, Stupid

Entrepreneurship, Start-up No Comments »

Early Stage VC has an incredible post about the number 1 mistake almost every entrepreneur makes. We come up with an idea – and too often we build, build, build without thinking of the customer and their pain points…and how we are actually easing it.

I must have made this same mistake over and over and over. Amazing how simple it is, but how almost every entrepreneur I have spoken to has missed the point too - technology isn’t about the wow-factor, but about the easiest way of simplifying pain points.

So if you are building something, stop and talk to your users and potential users. Really talk to them, set up a focus group, survey them, interview them, and make sure you ask the right questions…this will make life a hell lot of easier for you

Popularity: 100% [?]

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Jul 18

The Age of Business - Making the Most of What We Got

Uncategorized No Comments »

One of my favorite parts of business is the subjective nature of it. There are no absolute rights and wrongs; rather there are perspectives and opinions. But unlike social sciences, business does play out over time and a track record can be observed.

What this means is that best practices can be derived over time, and therefore experience and the study of business are exceptionally important for those that participate in the industry of making money. It also means that as an inexperienced business person I am at a disadvantage.

Understanding this concept is difficult for us young people because by nature we haven’t been kicked around by life yet. We believe in our invincibility and our general greatness. Some of us will succeed, even without the self-awareness necessary to overcome these challenges, through incredible abilities or sheer luck. For the rest of us, we must learn to mitigate our own inexperience and supplement it with the many advantages that youth brings.

Ways to Mitigate Inexperience:

1 – Surround ourselves with those of experience: The easiest way to mitigate the pitfalls of inexperience is by surrounding ourselves with people who do have experience. There really is no substitute for this; the more we are able to learn from those with a deeper understanding of business, the easier of a time we will have.

2- Read the truth of the book. I am almost religious about is reading. The written word is by far the easiest and least expensive way to tap into the collective business intelligence of those with greater experience. I am a ferocious reader and the book is my first line of defense when I want to understand subjects in more depth. When I needed to brush up on accounting I turned to Amazon and their collection of accounting books. When I needed to learn about branding, marketing, and financial modeling…I turned to books, books, and books.

3- Don’t talk, just listen: The third and final trick that I have learned to use to overcome my inexperience and lack of business knowledge is to listen and ask questions. I don’t pretend to know what I don’t, and whenever possible I ask questions.

Ways to Take Advantage of Youth:

1 – Run, run, run: Youth provides us with energy, so we must run circles around the competition, outwork them and generally do whatever it takes to make sure we work twice as long and twice as hard.

2 – Be in touch with the times: Everyone knows that the startup environment is drastically changing. Most people have a very tough time understanding the rapidly evolving landscape in which they operate, unless they are the target demographic.

3- Bootstrap and take a salary hit: With age comes huge responsibility, as recent grads we most likely don’t have a family to support or a mortgage to service. This gives us the unique ability to bootstrap companies and show what we are made of.

In the end, I am reminded of the old saying that G-d wastes youth on the young, and wisdom on the old. That might be true, but with a little work we can at least give ourselves a fighting chance.

Popularity: 93% [?]

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Jun 13

The Early Days – a play by play of how the business began to take shape

Entrepreneurship, Start-up No Comments »

Continued from previous post…

In July of 2005 I was 24, I knew nothing about the startup space or building a business, and I had already left my job. I would wake up in the morning and take long walks trying to develop an idea around which to build a company. At that point I had already decided that my next venture would revolve around the Hispanic community. I was also fascinated by the emergence of Craigslist, not so much by its meteoric rise, but by the democratization of information that it was allowing. I also loved the network effect that essentially allows Craigslist to operate in a monopolistic bubble. And so it is not shocking that the first idea that I began to contemplate was to shape a craigslist style marketplace for the Hispanic community.

The idea had merit, primarily because the Hispanic demographic in the US is organized around pre-existing social networks; the family and the Church. Providing a fluid platform by which these institutions could leverage their existing social connections would be very powerful. Secondly, these communities tend to be very insular and as such are perfect for a local classified type system. Finally, as most marketers are figuring out now, the only way to truly engage this community is through grass roots marketing campaigns – thus the platform I envisioned would be significantly valuable real estate and could allow for some interesting monetization strategies as well as serve as a springboard for other businesses.

There were significant hurdles that would need to be overcome, primarily the lack of internet penetration in the communities I was hoping to serve and the English fluency issue. Even though internet penetration was gaining quickly, it was still much more significant of an issue than what the data suggested. Many people in these communities that are being counted as internet enabled, had and still have very limited internet access, usually checking their email 1-2 times a week via public libraries, friends, or internet cafes. As for the English fluency issue, a bi-lingual site could have solved the problem, though as I would later find out it just wasn’t going to be that easy.

The idea that I conceived was to create a hybrid online-offline system that would allow posters to submit classifieds via the internet, which could then be searched online or in a weekly newspaper I would publish. I also wanted to add a simple translation engine to the site that would allow employers to post online in English, and for the posting to be printed in Spanish. Not a very elegant business model, but a quick and easy way to overcome some of the obstacles challenging my end goal of becoming the craigslist of the Hispanic community.

My first order of business was to begin the development of the website. I spoke to about 50 web development companies and got quotes that ranged from one thousand dollars to fifty thousand dollars. I contacted local printers and found a company that could print our newspaper. I interviewed over 30 freelance print designers to come up with a standard format for our newspaper. I ran around the city forging connections, learning more about the community and generating some interest in what I was doing.

I then ran into a really big problem, how was I going to distribute the newspaper. For some reason I had totally overlooked this seemingly obvious and indispensible part of the business. I racked my brain trying to figure out a quick and dirty way of getting the newspaper in front of as many people as possible. I tried a couple of different ideas, including hiring a professional company, until I realized that I was going to have to create my own distribution network. I forged agreements with close to 1,000 retail distribution points and hired 4 drivers to each deliver papers to 250 locations over a 2 day window.

The business was getting ready for launch, and I had spent under 10k at that point. I was excited, I was ready and I was going to take over the world.

Next week, how the idea performed…reality hits.

Popularity: 99% [?]

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Jun 11

Recounting the Experience; a tale of how it all started

Entrepreneurship, Start-up No Comments »

I was working on another mundane consulting project, doing nothing more productive than rearranging a power point document for the eleventh hundred times, when I decided I had enough. This was not work that was challenging me, these were not the type of people I could learn from, and this is not how I wanted to spend my time. I know this doesn’t sound PC, but as I recount the story of how I became an entrepreneur and built an internet recruitment site for non-internet users, I am going to be as real as possible.

So anyway, back to the story. I was working on a strategy project for a pretty large firm. I can’t get into too many details on what we were doing, but you can trust me in that it pretty boring stuff. We were staying in the office until 11-12 at night for no good reason other than the senior manager had some sort of complex, whereby he thought that the longer he could keep us in the office the more likely he was to be promoted. So there we were reworking the same exact slide. Changing the colors, adjusting the font, spending hour upon hour on the details, and only spending a couple of minutes and a few guesses on the actual numbers and recommendations. I wanted to challenge myself, learn, be exposed to new concepts, isn’t that why I decided to do consulting?

That night I had an epiphany: I was going to leave my job and start a business. I was going to abandon the consulting world and venture out on my own. I always had the entrepreneurial bug, and I was going to live the dream. Problem was, although I had an idea of the space I wanted to be in, I really didn’t have a clear cut vision of what I was going to build.

Being originally from Mexico, speaking a fluent Spanish, and having a pretty good understanding of the US Hispanic culture I decided my business would revolve around the fastest growing demographic in the United States. That was my starting point and from there I decided on the name Emerging Demographics Inc. and our company mission: “to level the cultural, technological and linguistic barriers that impeded Hispanic progress through innovative and profitable ventures.” That was the entire idea and from there I took the giant leap of faith that I could take a concept and a direction and develop a business around it.

Next week, how the idea became a business…the first few months.

Popularity: 99% [?]

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Jun 05

How to Build a PRODUCT (not business) for 12K

Entrepreneurship, Start-up 2 Comments »

This is why I don’t like reading Guy Kawasaki. Here is a guy who was great for Apple, but has no experience building a company, yet loves to distill terrible startup advice. His book is a compilation of startup clichés and his blog is a rehash of the same.

Truemors, is his latest project, and Guy is running around hyping how amazing it is that he built it for 12k. I am happy for him that he is getting some hands on experience, and on the whole he is a pretty smart guy. My problem with him shouting and screaming about how little it costs to start a business is that he is giving false hope to thousands of people out there who think they can build a Google with that kind of money.

Forget about whether Truemors is a good site or not, the point is those 12 thousand dollars were entirely spent on developing the software and legal fees. That’s not a business. Heck, there are countless high school kids who could build the same thing for 2k. How do they then get distribution? How do they generate revenue? How do they put together a sales team?

A little website is nothing but a little website. Guy is maybe one of a handful of people who can get the kind of exposure he did. Almost no one else can, and so they will need to spend tens of thousands of dollars on PR, Marketing, Business Development deals to get the traction he did.

I have made a lot of these points before, as have some other people. It’s just irresponsible of Guy to misinform and misdirect aspiring entrepreneurs this way. If someone has 15k saved up, they shouldn’t start a business thinking that will be enough…don’t encourage that kind of very dangerous behavior, because this is why the startup failure rate is so high.

Stop evangelizing yourself and let us use the power of blogs to disseminate real, from the trenches, information that is actually helpful.

Popularity: 100% [?]

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Jun 05

The Highs and Lows of an Entrepreneur

Entrepreneurship No Comments »

I remember vividly the day I left my job as a management consultant and began the entrepreneurial journey that ultimately resulted in Emerging Demographics. One of the most satisfying feelings was a sense of ownership – I would live and die by my own work.

Entrepreneurs often talk about the extreme highs and lows of starting a business; we feel it so much more than any other profession in the world because our companies are just an extension of us. They are our vision, our labor, our hopes and our dreams.

The first few days of the business were incredible, I was running around getting incorporated, interviewing developers, researching the market, writing a preliminary business plan…and just basically running around like a wild chicken without a head. There was so much to do – and I was on such a high. I was the king of a company and finally all of my ideas would be implemented. No more fighting bureaucracies, hierarchies, and Sr. managers. I was finally going to prove that I had it in me to build a company. Like I said, there are some really extreme highs in starting a business.

But there are also incredible lows. A few days later I ran into my first problem. I spoke to seasoned business professional and he asked me how I was going to distribute my product. I told him some of my thoughts, but he ripped them apart. He told me to go back and find a job. I felt crushed, maybe I didn’t know everything, and maybe I was taking on a stupid, crazy risk before I was ready. Maybe my brilliant idea wasn’t so incredible.

These highs and lows happen just about every day in business, but the way to level them out and build a business while maintaining emotional sanity is to surround yourself with loved ones who will help you and guide you no matter what. One of these key people in my life taught me a very valuable lesson during those early days. He said that there is a common denominator that all successful entrepreneurs share – a willingness to accept criticism and failure, learn from it, and overcome it. He told me I had a choice, I could get knocked down by every failure that I was going to encounter or I could analyze it and figure out a way to knock it back and be stronger because of it.

So I did just that, I thought about distribution, I put together a plan and I continued forward. I fought my inexperience, I challenged myself by my future failures and I continued forward.

Being an entrepreneur is a great feeling, but be weary of those highs and lows. Don’t get too caught up in the highs to think that you or your business are brilliant or a sure thing, and don’t let the lows make you doubt your ability to overcome or circumvent the challenges that will present themselves.

Popularity: 93% [?]

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