“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.

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.

Web startups are anything but rare nowadays.  Technological advances continue to drive down startup costs to the point where nearly anyone can participate in the internet ecosystem.  As a result, online businesses are in a constant battle with one another, competing not necessarily for customers, but simply for eyeballs.  We are witnessing the battle for attention, and it has been met with massive criticism.

Many skeptics criticize a website that has millions of users and lacks a definitive business model.  What most of these skeptics fail to grasp is that web businesses, for the most part, are not the “conventional” business and should not be treated as so.  The web has simply created a different playing field where web services have to first prove themselves valuable and credible in order to retain a significant user base.  The revenue model comes second.

The Battle for Eyeballs

Startup web firms today face a TON of competition.  For the end user/customer, this is a great thing.  As users, we are able to utilize the most effective web tools at the lowest (most often free) cost possible.  For the companies themselves, this is really the start of the battle…the battle for eyeballs.

How do you separate yourself in a sea of competition?  How do you compete with the field for attention?  What do you offer that others don’t?  Why should anyone choose you?

Ultimately, it’s the web firms who effectively answer these critical questions that stand a good chance at winning the initial battle.  But again, this is just the beginning.  You have only gotten their attention.  The firms must now convert these eyeballs into regular users.

The Value of a User

With today’s maturing web, the business landscape has been altered in a big way.  A firm’s market is now global while the number of their competitors will continue to rise.  Effective marketing techniques have changed dramatically while customer satisfaction has become the fundamental ingredient for success.  To a large degree, this brand new internet ecosystem has democratized businesses, giving the consumer one powerful and influential voice.

Due to the shifting landscape, web firms are now forced to adopt a totally new set of values (as compared to traditional business at least).  Most importantly, firms must now understand and appreciate the power of a dedicated userbase.  Instead of focusing solely on monetization options, the internet ecosystem has taught businesses to focus first on maximizing user value.  Even if this results in operating at an initial loss!  We have seen this strategy employed by Facebook, Twitter, Google, and many others.

It’s very simple, the businesses who create the most value ultimately wins.  This has been true and will remain true in any business; past, present, or future.  What has changed, however, are the rules for achieving this result.

Businesses must never forget the value of a user.  Not only are they a statistic, they are your biggest asset and most powerful marketing tool.  It’s easy to get caught up in monetization, but without a proven community of users, why even bother?  Unless your an invested VC, web firms should be worrying about one thing, and one thing only: How can we maximize user value?

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!

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.