Start Up Blog

Counter intuition, deal cutting and commissions

Posted in entrepreneurship by Steve Sammartino on April 22, 2014

I really like sharing my ideas with groups of people – so much so that I often get up on stage in front of large groups of people to to do this. After doing it for the best part of 10 years (usually in local startup events & for friend who work at large corporates) I started to get offered money to speak at events. Which is quite exciting. It’s a classic example of the wood chips generating a significant revenue stream on their own.  I’ve recently starting working with an agency to help me manage my speaking engagements. Again, these guys came to me through others who recommended me as a potential source of revenue to them – apparently I give good voice.

When we talked about how the agency thing works for their speakers the issue of commission came up. Surprisingly I was advised that I could pick my preferred commission to give to them. I could chose to give the agency a lower percentage commission if I wanted. I could give a commission of 10, 20 or 30 percent. I chose 30 percent. My dad once told me the easiest way to make money is to help other people do the same. To create a deal where there is enough in it for the other guy that they go to work for you. So I took his advice.

The principal of the agency then told me it was a good decision and that most people take more and but end up with less.

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Web startup principals apply to every kind of new business

Posted in entrepreneurship by Steve Sammartino on April 19, 2014

Recently I’ve been exploring the hardware space, especially now I’m deeply involvement in Tomcar Australia – a startup which builds cars.

I’ve become more focused on what we can learn in the web / software / mobile space, and apply it to the hardware space – startups which build actual physical things or any non digital kinda startup. Turns out much of it applies, especially given the open access technology and connected society has provided. I’ve recently written a couple of posts for the good people of Pollenizer on this subject.

This post – Beyond the screen – How non software companies can out learn the competition.

and this post – Hero 1 killer feature – How GoPro came from behind the technology curve. The stuff you don’t know about how GoPro got to where it is.

I think they’re both great posts for anyone involved in non screen stuff.

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Forging ahead

Posted in entrepreneurship by Steve Sammartino on April 11, 2014

When we are forging our own path in life and in business, doubt is the key enemy. It’s even bigger than fear. The reason it is a serious enemy is because doubt always happens before fear does. So when we sense self doubt, we need to fight it and forge ahead, or fear might just take hold. We must ensure we don’t stop what we are doing. We need to keep writing, keep coding, keep building, keep creating and just keep doing whatever it is we ought be doing.

Even when we are not sure of the next steps. Even when we can’t see where we are going – we must continue to move ahead. It’s a bit like walking in the fog – the path only reveals itself if we continue walking. If we instead stand still, nothing is revealed

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Clues in childhood

Posted in entrepreneurship by Steve Sammartino on April 4, 2014

I was recently thinking about the various activities I’ve been interested in as I grew up. Not just the passing fads, but the stuff that really inspired me to levels of near obsession for a solid period of time. Things which entered my life and created large chunks of pure happiness and exploration. And now that I look back on them they all have elements which are related. Both from what makes me tick and even my career trajectory.

Kids stuff - When I look at the 3 things I was obsessed with while growing up, in hindsight they are all very similar.

BMX, Break Dancing and Surfing: All sliding across the surface of things, fluid movements which involve an elements of acrobatics. All have their own subculture, community, and even a specific style of dress. All individual sports – but yet often done along side groups of friends who also enjoy it. All of them arrived as a new-ish thing, rather than being activities with long histories.

I feel like this is very telling about me as a person. If consider the work I do today, it is much like this. I like new projects, startups, technology, writing. I work both independently, but along side others. I like exploring new territory and being at the edge of emerging culture – I’ve mostly worked in marketing and advertising.

I think if we look back at our own ‘history of interests’ we’ll be able to find a pattern about what makes us tick. Our kids stuff is probably also what our adult stuff ought be. What we like to do metaphorically might even provide some clues as to whether our next startup project is suited to our true selves.

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Startup Honesty

Posted in entrepreneurship by Steve Sammartino on April 1, 2014

Old school, and still cool, business coach Brain Tracy has an important question we should ask ourselves:

“What type of company, would my company be, if everyone in it, were just like me?”

Now, on the face of it it seems like a simple prose. How hard do we work, what kind of effort do we put in, how do we treat people and would we like others to behave the way we do. Honest answers to this question can be revealing. And it’s a damn good question to ask ourselves frequently.

But it goes one layer deeper. When we bring in new people to our startup, do we really need more people like ourselves? Do we really want another person who thinks like we do, acts like we do, has the same skills that we do and approaches things in the same manner? Or do we really need someone who is juxtaposed to ourselves?

The real challenge here is knowing where the similarities and differences are needed. And while that is a decision that only the startup founder can decide here’s a nice starting point: Alignment of philosophy and attitude is far more important than that of capability and aptitude.

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Every success is strategic

Posted in entrepreneurship by Steve Sammartino on March 29, 2014

Or is it?

Whenever a person or a company succeeds there is no shortage of post analysis on why the strategy was so clever. Why what they did worked, and how clever the people behind it were. And I’d say most time the people behind it are clever. But what I’m wondering is how much of it was planned, on strategy and predictable before any of it happened.

If we look at the history of science, very few of our discoveries started on paper, or in the lab. What was far more common was something actually happened which surprised and delighted. The people behind the discovery, or even those around it, then re-tested what happened to build a theory to describe it – or in business terms, a story that described what happened in the form of a strategy.

I’m pretty sure this is most often the case in business. For every new company, or game changing innovation there are probably a thousand or more failures of others trying to do the same thing. But these failures rarely get written about, only the success stories. And these success stories are always told post success – who wants to hear about failures anyway?

This tells us much about startup strategy. And what it tells us is that strategy is often an illusion. It’s a post rationalisation of what happened – the reverse engineering of business enlightenment. Where the real value is unlocked in business, is entering a realm where value needs to be created, and implementing a set of behaviours that lead to momentum and serendipity. This is a more accurate description of how a “pre success” strategy is landed upon.

In a world of rapid change we are better off letting events shape the opportunity, rather than trying to shoe horn our idea into a perceived market trajectory.

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Does the world need changed?

Posted in entrepreneurship by Steve Sammartino on March 26, 2014

It’s not uncommon to hear about an ambition startup or entrepreneur wanting to change the world. But does the world really need changing? Is everything we live in so bad that some of it isn’t worth keeping? Are we that limited in our thinking that change is all we can come up with?

Maybe what we really need to do is improve the world.

And sometimes improving the world might just mean keeping some things exactly as they are. Some traditions, physical locations, products, services, events and attitudes are just perfect the way they are. What might be needed is the fortitude and vision to maintain the things of great beauty we are already blessed with. Maybe that’s where the next important opportunity lies. Human endeavour, and startups for that matter aren’t all about change, and certainly not change for changes sake. They’re about problem solving and creating value for others.

Yes, I like the rain forests just the way they are.

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Random Soundbites

Posted in entrepreneurship by Steve Sammartino on March 25, 2014

In the past few weeks I’ve been in the audience a few times when some smart people have taken to the stage. The presentations were largely retail focused. As usual I took notes and thought I’d share some random soundbites from what they had to share. I haven’t got the sources for each quote, because I couldn’t write those down quick enough without losing the information. But the thing that really matters isn’t the exact figures, but the patterns they are part of:

  • 10 years ago car buyers used to visit the dealership an average of 6 times before buying a new car. Now the average 1.5 times. When surveyed about the cars they bought more than 90% of buyers knew the specs in more detail than the car salesman.
  • Retail Delivery Gap: Australian retailers believe their customer shopping satisfaction rates are 80%. When surveyed the actual satisfaction rates from shopper was 8%.
  • There are a significant amount of retailers who are now treating the customers as employees: Airline check in – Supermarket check out. This is all fine so long as it reduces friction and increases joy. It shouldn’t be the default approach, but a considered one.
  • Retailer measurement used to be all about foot traffic and transactions, now they can measure everything in between, before and after. But smart retailers will need to ensure they have permission and share the prize with those providing the data.
  • Big data is a bit like teenage sex: “Everyone talks about it. No one knows how to do it, and everyone thinks everyone else is doing it, but not many actually are.”  Not my quote – but made me laugh.
  • Advertisers need to get ready for revised TV. A television that knows who is watching it, what they’ve bought, where they’ve been and what they car about.  One that can serve up specific, permission based  and relevant content for a single person. 1 to 1 television creative executions – the TV’s can already do it – but it seems no marketers can?
  • The delineation between physical and digital is over – pointless and and us versus them zero sum game. The intersection is now mandatory, or even tables stages – it’s now phygital.
  • People like buying stuff, but not so much paying – but the money isn’t the pain point, it is the process and the friction they hate. Sellers need to get out of the way.
  • Network Survival: A network stays alive so long as it provides trust and reduces friction. What’s interesting is that friction is often reduced by routing the long way round.
  • The top 12 Australian retailers have $700 billion worth of currency convertible loyalty points on hand – a giant liability, or is it an asset?
  • The phone is now becoming the personal life controller. It is the new location for commerce – literally where the phone is: simple example is Uber.
  • We are entering the wallet wars era. The digital wallet as spruced about by Bill Gates way back in 1995 – every tech player, bank, payment system and hardware developer is in the battle.
  • Mobile payments growing at an astounding rate in e-commerce. In the past 2 years payments via mobile phone grew 57 fold in Australia alone.
  • Mobile provides a leap frog opportunity. Many players who missed the first web iteration, can now disrupt the disrupters by doing an amazing job on mobile - this game is still open.

What does this tell us. Just that there is so much happening, and no matter what business we think we are in, we are all in the startup business now.

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Better questions

Posted in entrepreneurship by Steve Sammartino on February 26, 2014

I recently met someone at a conference I was speaking at. Afterwards we exchanged some emails on a new project he was working on. He needed a developer, but was nervous about sharing his idea with anyone. After I assured him that there is rarely currency in ideas, and having them stolen was a low risk, I offered to connect him with my development team. Which from my talk, he would’ve known they were overseas. He sent back an email which said:

Where are they based?

This was my response:

Based overseas…. Moldova to be precise. I’m sensing that might by why you asked…. 

Here’s a some better questions:

  • How good are there?
  • Are they trust worthy?
  • What do they cost?
  • How do I connect with them?

Often our perception makes us ask questions which are for the large part irrelevant.

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A bit is gold

Posted in entrepreneurship by Steve Sammartino on February 24, 2014

In the super terrific web series Comedians in cars getting coffee, Jerry Seinfeld (the host) was asked what he thinks has more value in comedy:

A funny story which is suitable for talk show

or

A small bit more suited to a stand up session

Jerry had an unequivocal answer. He said; ‘A bit is gold’. He went on to say it was superior in every way to a longer piece that requires more explanation, and that’s why you leave long stories for the talk show. The gold bits need to be left for the stage – where it really matters. It’s in this episode we can hear Jerry tell the tale.

It’s the same when it comes to marketing copy or web copy or pitching for a startup. There’s a temptation to not want to leave anything important out. To give all the details so the person can work out the important bit about the project. In some ways it is a form of justification of what we’re doing. A basic fear of the simple. Almost as if we are short changing the audience if we give them less. The ironic thing is that we almost always want less. When it comes to branding and marketing, just like comedy – sound bites are gold. They are customer winning, they are pitch winning and they are life winning. The longer story is inferior.

The added beauty of the soundbite is that the receiver creates the longer version. So soundbites work harder with more people. They tell themselves whatever story they want to from there. They add the layers they want according to their perception.  The sound bite is the seed, and the recipient is the soil.

Organise the worlds information

Change the world 140 characters at a time

A computer on every desk in every home

Yes we can

If people can remember our soundbites, that’s all they need to know.

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