“Keep it simple” is an overused, yet under-executed mantra for most. With the abundance of distractions in today’s society, it’s not hard to realize why this is the case.

When it comes to maximizing your personal, professional, or financial life, eliminating complexity can do wonders. I urge you to think as minimalist as possible when confronted with daily tasks and decisions. “Throw out” all of the unnecessary anchors that do not add benefit to your life. Clear out unused furniture in your office, consolidate multiple bank accounts, completely end a relationship…whatever it may be, always keep the following in mind:

• cut the fat wherever and whenever possible
• if it’s not important, forget about it, move on to something that is
• get used to eliminating instead of accumulating
• strive to have less of something (money may be the only caveat)

It appears that that the majority of society associate having “more stuff” with having more overall value. This “bigger is better” mentality is not only wrong, it’s unproductive.   If we relate this to startups, you begin to see how a minimalist approach creates the most effective results.

The minimalist-approach to launching a company

All too familiar scenario:  You’re an entrepreneur.  You have no money.  You’re time and resources are very limited.  And you want to launch a startup?  Are you crazy!?

Crazy or not, one thing is certain: you cannot afford to waste anything.  Very simply, you must operate as efficiently as is humanly possible.  And herein lies the core of the minimalist-approach to business.

I just picked up a book by the team at 37signals entitled Get Real: The smarter, faster, easier way to build a successful web application.  The book serves as an effective reminder to all the upstart businesses, entrepreneurs, and aspiring world-changers to strip down their approach to its simplest, most fundamental components.  The book focuses on the internet sector, but can really be applied to any number of business fields as well as to most any type of business owner.

The core of the book focuses on getting things done fast and efficiently.  They strongly endorse simplicity in an overly-complex world, which is refreshing, and most importantly, effective.

Focus on the fundamentals

Fundamentals mean everything.  Unfortunately, we seem to be accustomed to burying them whenever the option presents itself.  Why write a 5 paragraph email that can be expressed in 3 lines?  Why waste your coworker’s time with a 2 hour presentation?  It’s probably because your email is garbage and your presentation sucks.

Ironically enough, when things are broken down to their most basic component, that particular thing becomes instantly more powerful.  In business, and in life, focus on the foundation and strip away the rest — you’ll be surprised at how simplicity will conquer complexity.

The number of resources available today is simply unbelievable.  A constantly-shifting and evolving technological landscape has produced an environment that is tailor-made for any ambitious entrepreneur.  Tasks that once required the assistance of several individuals and cost hundreds of dollars, are now performed individually, and in most cases, free of charge.

We stand at the forefront of a D-I-Y (Do-It-Yourself) revolution.  We are seeing how innovative web services and powerful computing software are providing us with opportunities once thought impossible.  Music, entertainment, publishing — all turned upside down due to this shift.  This post isn’t really about how traditional media is dead, it’s more about you, and what you should be doing because of it.

I have talked about the jack of all trades vs. specialist debate before, and this may overlap with that discussion a bit.  I’m a firm believer in the benefits of wearing multiple hats and constantly looking to augment and add to one’s skill set.

No group of individuals have picked up on this behavior more so than the “Millennials” (a.k.a. Generation Y, or as I like to call them, “first-gen techsoomers“).  It is because of them that we now see:

• You don’t need to hire a record label
• You don’t need to hire a publishing company
• You don’t need to hire a PR firm
• You don’t need to hire an advertising agency

And why is this?  Because we have officially entered the D-I-Y era.  And what can we take away from this?…

If you can’t Do It Yourself, you’re Shit Out of Luck

Along with the rest of the world, the current economic downturn has gripped my full attention.  Despite many grim outlooks and predictions, I remain completely optimistic.  In many ways, I view the severe dip as the beginning of a completely new era.  Quite frankly, I find comfort in this notion…and so should you!

It is all too easy to get caught up in the familiar negative tones uttered by the masses.  We all know the type.  They instinctively regurgitate that all too common “recession speech” muttered by most of the TV news anchors.  Whether it be the astronomical rise in the unemployment rate, the ridiculous bailout figures, or even those human-Dow Jones ticker-types, who insist on griping over their recent losses in the market.

“Woe is Me” (in other words, “I’m Lame and My Thoughts Are Stale”)

As tempting as it is to add fuel to the “pessimism fire”, I advise you to resist at all costs.  My most common “extinguishing” technique comes from referencing the unmistakable Warren Buffett.  In an interview with CNBC, Mr. Buffett is asked about our current President and our economic future.  His response:

He is the right President. And incidentally, this is the right country. I mean, we’ve got the right President; we’ve got the right country. We’re gummed up at the moment, but this is the place to be. And this is the right time.
I wish I was 21 now instead of 78. The best days of America really do lie ahead. And President Obama is very, very smart. He’s got, I think, exactly the right goals. He’s articulate and he will be the right person to be the commander in chief in this economic crisis.
-Warren Buffett

Mr. Buffett’s words serve as an inspirational rallying cry…especially to those in the younger generation.  Obviously, the “Buffett Effect” is very powerful, and I would not expect anything but optimism from the brilliant billionaire.  But no matter if his speech is 100% genuine or slightly influenced by external factors (which I don’t believe is the case), it really doesn’t matter.  There is one, and only one way to look at our future…wide open.

The Four Stage Business Cycle

The traditional business cycle has always been explained in four self explanatory stages:

1. Infancy/Startup  << Guess what lies ahead
   
2. Growth
3. Maturity
4. Decline < Guess where we are

(Rinse and repeat)

If we were to pinpoint our current economy within this cycle…it’s no surprise where we would stand.  Repeating the cycle means that we are gearing up for a massive period of restructuring from the ground level.  As I alluded to in the beginning of the post, I believe this period of restructuring will undoubtedly usher in a new economic era.  An era led in large part by the younger generation (Gen Y).  Just as the industrial revolution bred tremendous innovation with interchangeable parts, automation, and manufacturing, we finally have the opportunity to incorporate our most recent revolution – the digital revolution — into our core business blueprint.

Take a quick glimpse at the current business landscape.  Many businesses established prior to the 90’s are simply at a technological disadvantage when compared to businesses created after this time period.  Obviously, this decade marks the commercialization of the internet, and what most would consider the beginning of the digital revolution.

And we are seeing the effects of being behind the times in nearly every economic sector.  Take the automobile and newspaper businesses, for example.  Both industries established in a time period well before the current digital revolution.  And just recently, we have all played witness to their massive blunders and inability to effectively utilize technological advances as well as embrace shifting consumer perspectives.

This Isn’t Your Father’s Business

Michael Malone, author of The Future Arrived Yesterday: The Rise of the Protean Corporation and What It Means for You, explains how the traditional business landscape has and will continue to change.  He stresses the fact that companies must become extremely fast moving, shape-shifting entities that  must embrace innovation and change.  He also explores the notion of “intrapreneurs,” that is, entrepreneurs who operate inside of a company’s infrastructure, and their positive impact on corporate innovation.  This is a philosophy made popular by many high-tech companies like Google.

Businesses are a living, breathing organism.  It’s time we started treating them as such.  So what other types of things can you expect?  Well, don’t be surprised to find a completely new business arena:

• where the phrase “too big to fail” no longer applies
• where businesses embrace transparency
• that is flatter, interconnected, and instantly globalized
• where smaller teams = greater agility = greater innovation
• where competition is as fierce as ever
• in which customers, clients, and users have a much louder voice
• where consistent reinvention is a must

So Who Will Lead This Charge?

The answer is very simple: it’s the entrepreneurs, it’s the startup junkies, it’s the innovators, it’s the non-conformists, it’s the contrarians…it’s YOU, the TECHSOOMERS.

Do yourself a favor and view the recession as one giant opportunity.  Instead of getting discouraged by the naysayers, thank them for creating one less competitor.  When things are good, it’s easy to stay optimistic.  It’s when the times are tough, capital is scarce, and the future uncertain when it becomes easy to give up.  Subsequently, it’s also in these particular times when you stand the best chance to shape the future.

Out with the old, in the with the new.

The web has shown the unique ability to progress, advance, and grow at an infinite rate, and at a ridiculous pace.  As this maturity takes place, we are sometimes forced to play catch up in order to stay current and utilize all of the web’s offerings.  This familiar scenario is exemplified when looking at businesses that operate on the web.  Since the popularization of e-commerce, businesses have found the internet (and rightfully so) to be a terrific platform for conducting their trade.   Nowadays, nearly all businesses have some sort of presence on the web.  You would be hard-pressed to find  a company without a website or at least some sort of online contact information.

Unfortunately for businesses, the quickly advancing web has now made this sort of online existence, “old school”, if you will.

The web has gone through a pretty large transformation since the first dot-com bubble in the late 90s to early 00s.    What was once a static and structured architecture is now a dynamic, user-driven platform.  The internet is now centralizing around users and their activity instead of solely spotlighting the businesses that provide the content.  The web has and continues to evolve into a huge social arena, connecting users across the vast landscape of the web.

So, how has this ’social web’ changed companies and their online presence?

It is not acceptable for companies to remain hidden behind their “corporate veils” anymore.  The web has given everyone a voice, and it is imperative for these businesses to start participating in the “conversation”.  We are seeing more and more companies utilizing social tools like blogs, Twitter, and various social networks in order to engage their current and potential customers.

Recently, Facebook found themselves in a sticky situation as they updated their terms of service (ToS).  A massive uproar soon followed.  Articles and blog posts filled the internet about the company and its unfair terms.  In response to the uproar, Facebook temporarily went back to its older ToS, and is now asking for user feedback while it drafts its replacement ToS, now known as its “Statement of Rights and Responsibilities.”

These are the types of actions that truly define a democratized business.  It stems from listening and interacting with customers.  Businesses who do not participate are at a huge disadvantage.  The evolution of the web has brought consumers together and has put businesses in a unique position.  In order to succeed, it is critical for businesses to start tapping into this network, giving their customers a voice, or else they stand a real chance of losing out to companies that do.

What is interesting about the Facebook ToS debacle is that the story broke immediately and spread to major news sources almost instantly.  Of course, Facebook, being the largest and most popular social network, will tend to receive lots of attention.  But you would assume from the number of stories written that this was an earth-shattering situation for all Facebook users.  Well, in fact, it turns out that only about 0.006% of Facebook users cared about this story!  I can only imagine what would happen if a majority of users were interested.

Point is, businesses must offer customers a voice.  Businesses who democratize and knock down their corporate barriers stand to gain a lot of attention and respect from the general audience.

There has been a poem on my refrigerator for as long as I can remember.  It’s a simple, yet powerful little ballad that has meant different things to me, during different times in my life.  After reading it one more time, I cannot help but relate it to the entrepreneurial hustle; that mysterious, foggy world where most startups live during the beginning of their venture.  It has helped to reinforce the value in pursuing your passion, forgetting the naysayers, and rising above every single obstacle that you face.  And it goes, my friends, something like this:

The Winner is always part of the answer;
The Loser is always part of the problem.

The Winner always has a program;
The Loser always has an excuse.

The Winner says “Let me do it for you”;
The Loser says “That is not my job”.

The Winner sees an answer to every problem;
The Loser sees a problem to every answer.

The Winner says “It may be difficult, but it’s possible”;
The Loser says “It may be possible, but it’s too difficult”.

The Winner never loses;
The Loser never wins!

Business plans have long been synonymous with business ventures, more specifically, startup ventures.  There has been much discussion as to whether companies that construct business plans are more likely to succeed compared to those companies who overlook this “holy grail” of documents.  In fact, Guy Kawasaki had posted an interesting study conducted by Babson College on his blog, where they evaluated this exact scenario.  The college analyzed over 100 businesses run by alumni and found no statistical difference in success between those businesses started with formal written plans and those without them.

…no statistical difference in success between those businesses started with formal written plans and those without them.

Could business plans be a thing of the past?  Are business plans an obsolete form of business development?  I would argue that the answer is YES to both of these questions.

Business plans are simply an “old school” method of communicating business ideas, goals, and predictions.  I am a huge proponent of blogging and recommend all entrepreneurs, or individuals for that matter to actively participate in the blogosphere.  If you have something to say, ideas that you would like to publish, opinions/reactions, whatever it may be, start blogging.

Dharmesh Shah, a successful software engineer, entrepreneur, and author of the OnStartups blog speaks about the impact that blogs can make.  In a brilliant video, Dharmesh explains how a “rinky-dink little blog” can attract just as many if not more visitors than a business spending tens of thousands per month on PR and advertising.  Shah makes it very clear that you don’t have to spend a lot of money broadcasting your message for people to take notice of your ideas.  So why not leverage this impact and apply it to building your business this way?  Instead of writing a business plan, why not start a blog?

…you don’t have to spend a lot of money broadcasting your message for people to take notice of your ideas.

Honestly, how many people will read this business plan?
Your blog may not be read by the masses, but I assure you, a passionate, heartfelt post will be read more times than your business plan will.
Business plans are painfully “static” and lack any sort of dynamic dialogue/feedback.
Blogs are delightfully interactive and instantly engage in dialogue through comments and replies.
Business plans are usually long and very boring.
You don’t have to write 20 pages to create an impact.  Some of the greatest and most popular blog posts are short, simple and straight to the point.
After having spent (x) amount of months/days writing this long plan, you will still have exactly zero customers.
Unlike a business plan, blogs give a way for creators to interact with their potential clients before they even buy a product or service.  The effect is felt immediately and constantly builds personal/company brand equity long after your posts are published.

When you’re done writing this long document, there’s a strong likelihood that your business strategy/concept/focus may have changed: [Time to revise and edit]
Blog posts are meant to be written on top of, again and again.  Despite the fact that blog posts have no shelf life and can be referenced for years and years, the most effective bloggers are expected to update their content on a regular basis.
How many people are even going to receive your business plan in the first place?  How many email addresses and mail boxes do you know?
Blog posts are limited by the size of the web.  In other words, your blog has the potential (though unlikely) to reach millions of people around the globe…no address necessary.

Needless to say, I am a huge advocate of utilizing the social web.  It is just too damn powerful not to.  That said, business plans may still serve a purpose, internally at least.  If your company needs a formal document to delegate responsibilities and communicate throughout the organization, I would suggest that you sit down and compile one.  These sorts of documents are still a fundamental aspect in obtaining outside capital as well.  You may not want to approach VCs without a business plan and financial forecasts.

Just remember, it is most important to get yourself and your company into the mainstream (as quick and at any level possible).  Until recently, that required a lot more time and planning, where the company’s business plan acted as the foundation for their work as well as its physical manifestation.  With the introduction and explosion of the social web, a whole new platform has been created.  Startup costs are way down, and there’s a lot of competition.  It is critical for brands to set themselves apart by remaining transparent, genuine, and innovative.  Enter the blog: your company’s new business plan.

I enjoy reading, watching, and listening to various entrepreneurs talk about their experiences as well as the trials and tribulations that they encountered throughout their journeys.  It is particularly interesting when you have the opportunity to briefly step inside the minds of these entrepreneurs, taking away bits of their wisdom and unique views of the world.  In a previous post, I talked briefly about the innate personality traits that all entrepreneurs, no matter what industry, seem to possess.  I want to dive a little deeper and talk about a particular topic that every single individual faces, but is magnified in the entrepreneurial arena.  It’s a simple question, that can be difficult to answer at times :

• “Would you rather be great at just one particular thing…OR…just good at many things?”

Let me try and explain what I mean by this hypothetical question.  I have always wondered which of the above scenarios fared best for a particular entrepreneur.  Is it the “field expert” that is more likely to succeed over the “jack-of-all-trades”, or is it the other way around?  Think about it for a moment.  What do you consider yourself?  I purposely emitted the option to be great at many things because it is extremely rare.  On the other hand, individuals, especially entrepreneurs, are often classified by their multiple skills or their expert knowledge in a particular field.

So which entrepreneur has a better chance of succeeding?  I would love to say that the entrepreneur with the many skills and talents wins out.  These are the individuals I can relate to, enjoy reading about, and would like to grab a beer with.  Despite the dexterity and flexibility that they can bring to their business venture, it may not be enough technical or expert talent needed to propel their product or service.

In a way, it’s similar to the debate over boxing vs. MMA (Mixed Martial Arts).  I am a huge proponent of MMA and admire the athletes that compete in the cage.  There are so many dimensions to MMA, that is not uncommon for a fighter to train 1) Stand Up [boxing] 2) Muay Thai [kickboxing] 3) Jiu-Jitsu 4) Judo.  The point is…these guys are truly good at many things.  Boxers on the other hand, excel at one thing and only one…boxing.  When it comes to boxing, they are unparalleled and can beat any man in a ring, including mixed martial artists.  If the fight goes beyond the boxing ring and is brought to the cage, however, the boxer would simply be outmatched.

Some parallels can be translated over into the business world, with entrepreneurs.  It is the expert technicians who excel and can dominate a particular arena.  With that said, these same experts will likely fail outside of their defined area of expertise.  Conversely, the multi-skilled entrepreneur has the ability to take their business in new directions, if the business happens to “go to the ground” or take an unexpected path.  I think it’s fair to assume a successful partnership will likely occur if you team up both of these individuals.  If you haven’t found your “other half”, do so immediately so you can prepare for a battle in the ring or the cage.

There are numerous commonalities that unite entrepreneurs across the globe; the ability to take on risk, the thick skin needed to persevere, the passion associated with your product/service…the balls to start your own business. All of these traits seem to define entrepreneurs not only professionally, but as individuals. It seems like no matter what industry, experience, background, gender, or ethnicity that a given entrepreneur may have, they tend to posses these innate personality traits.

When it comes to entrepreneurial ventures, however, I believe that there is one particular “fork in the road” that distinguishes one entrepreneur from another. It is the decision or strategy each entrepreneur consciously or sub-consciously makes when beginning their business venture. I like to call it the “World Changer vs. Profit Maker” debate. This debate essentially forces the entrepreneur to define their business venture. In other words: Is your business a “world changer” or a “profit maker”?

The “world changer” path forces the entrepreneur to think about (you guessed it!) how they are going to change the world with there unique business model, strategy, and execution. Entrepreneurs in this category think big HUGE and are committed to challenging the status quo. These business ventures are not as concerned with money, atleast initially, as they are with creating a novel, innovative, and meaningful business platform.

On the flipside, the “profit maker” venture operates on a proven business platform where there is opportunity. The entrepreneurs and their businesses must be extremely efficient, in order to operate at a profit. These ventures learn from the mistakes of their predecessors, and utlize a different, more effective revenue model.

You can say that the “world changer” method is rooted in innovation and creativity, while the “profit maker” method relies more on efficiency and opportunity. After reading Guy Kawasaki’s “Art of the Start” and Tim Ferriss’s “4-Hour Workweek” almost in succession, I was left with two opposing thoughts on entrepreneurship. Kawasaki stresses innovation, change, and meaningful business ventures. He urges his readers to “change the world”. Ferriss stresses efficiency, time management, production and execution, cost vs. benefit. Two completely different thought patterns, two completely successful entrepreneurs.

I tend to mirror Guy Kawasaki’s way of thinking in terms of entrepreneurial ventures. I believe that constantly pushing the envelope, creating new platforms and ideas is the way to go. This could be a result of the rapid changing, always innovating technology world that I am so accustomed to. I feel that many entrepreneurs and businesses excel when they create their own path and conquer new territory. I find it so important for entrepreneurs to look beyond the norm and to push their businesses where no one once thought possible. It is through these actions by which businesses will see unprecedented results.

That is not to say that their isn’t room for the “profit maker” structure. Ryan Graves makes a great point in his blog when he writes,

“In a time of leaning business practices and tight funding opportunities it is even more important to focus on businesses that will generate revenue!”

I guess the natural conclusion from this would be to adopt a business model that incorporates some part “world changer” and some part “profit maker”. Without solid profit and an efficient business model, one may not be able to “change the world” for very long. Similarly, without innovation and creativity, the most efficient businessman may not be able to distinguish himself from his competition.