There’s a whole lot of tools we have at our disposal which didn’t even exist a few years ago. From a business perspective many of them present a counter intuitive option to the ‘Harvard Industrial Complex’. Yes, those established principals of what we thought we already knew about what worked in the market.
Trust the crowd to co-design our product? Are you crazy?
Get funding from future customers with out giving equity? How we going to do that?
Share revenue with content creating customers? Don’t be silly let’s keep it all for ourselves.
Co-opt with our competitors to grow the entire ecosystem? No way, let’s grow our market share instead.
Launch products with lower margin than those they’ll cannibalise? It’s uneconomic and stupid.
When the world changes, what once seemed ridiculous quickly becomes rational. Startups are now redefining what can work in a world driven by cheap and even disposable technology. It turns out having access to the new tools is not enough, we also need access to a new mindset.
While it is around 6 months old now, and still in beta, there has been a lot of noise about Social Networking Startup Ello. And rightly so. A decade or more deep into this social connection thing people are starting to realise, that corporations like Facebook and Twitter, are well, just corporations. They just have incredibly compelling and usable products, from which they’re motivated to deliver what all public corporations aim to do – increase shareholder wealth. Nothing new there. And while some of the founders may have had, and possibly even still have rather altruistic visions…
A more open and connected world
Change the world 140 characters at a time
… once any company becomes public, its DNA changes somewhat, it mutates and we end up with what we’ve always had. Profit centricity. This isn’t necessarily bad, profits are good, and only companies with great (or addictive) products ever turn one. It’s more about understanding things for what they actually are, or in this case, have become.
Ello, on the other hand believes there is a better way. And I agree. You can read their manifesto here. In short they promise never to sell ‘you’. What they don’t mention is that they’ve already accepted venture capital funding as part of their growth plan. Call me a cynic, but in general people who provide funds usually want some kind of monetary return at a later date.
If any social network wants to arrive and actually be, what Ello is positioning itself as, then it can never be a for profit corporation. It also probably should never be controlled by a limited number of people, or even an organisation. It needs instead to be a gift to humanity, a bit like the World Wide Web. It needs to be open source, and uncontrolled. A bit like a language really. One thing is for sure, it can never be about a financial return on investment.
There are lots of ways entrepreneurs can make money. Some even have a valid legal status, but with questionable ethics. But all businesses which survive have some kind of value transfer. The real question worth asking is this:
Was there more value in total after we got involved?
If the answer to that is ‘yes’, then we’ve done much more than just make money.
The journey we are on is often associated with some goal at the end point. But what if the end point was now? What if we took a thought experiment and pretended the journey was unnecessary? Let’s do that and ask ourselves these two seemingly unrelated questions:
- How would you spend your time if you had 6 months to live?
- How would you spend your time if you were a billionaire?
I won’t try and answer these for you, but I’m reasonably certain you’ll find two things. Many of the answers overlap, and that many of the things cost very little money. In the end we remind ourselves that the ultimate asset is time.
Ok, I couldn’t resist to give personal answer here: I know I’d want to invest more time with my family, immediate and wider, and do those projects were the business model is fun and not financial. Oh, and all those billionaires we hear about…. they’re probably off on treks riding motorcycles across China. Something which requires very few zeros in a bank account.
What we actually get paid for is all the work we did yesterday, and the day before that, and the year before that. In fact, what we get paid for is the work we did when no one was watching and no one was paying.
While success is in the eye of the beholder, I heard an interesting fact recently about intelligence and financial independence. And that fact was that the vast majority of financially independent people have average or below average intelligence. We are talking here about raw intellectual capability. This would seem counter intuitive to everything we are taught to believe in school, the corporate world and life. That we have to be ‘smart’ to accumulate financial advantage. Turns out the opposite is true and social researchers put it down to one simple thing:
“People of average intelligence are not overly impressed with how clever they are.”
Sounds like a silly thing to say, but it gives average people like you and me a big advantage. It means that we know we have to work hard, and maybe even a bit harder. And it also means that we don’t think we know everything already and so we have on open mind to learn new things and methods.
Turns out that some of the key factors in the success equation are about being average.
I recently did I podcast with a friend Murray Galbraith who runs Dads.co – a place for dads to share and celebrate being a rad dad. I was particularly happy with the chat we had as it covered many of the important parts of being a dad, and being independent economically. I really think it’s some good ear candy. You can listen to it here.
Also, this Wednesday night I’ll giving a talk at the Entrepreneurs Club in Melbourne, about how to transition from employee to entrepreneur. I’m really excited about this one as I’ll be sharing my top 10 “Hacks of Independence” to help you escape the drudgery of corporate cubicle life. It’s free and you should totally come and share some ideas with other like minded individuals. Details are here.
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