Growthink Blog

How Reverse Logic Doubled Profits


I find it amazing how many entrepreneurs and business owners get burned by thinking about things incorrectly.
Here’s an example from a recent conversation I had with an entrepreneur who sells professional services. His sales were strong, but his profits were weak. In trying to figure out a solution, he started by suggesting he layoff part of his staff. If he cut his staff, costs would go down and profits would go up.
However, he then realized that if he had less staff members, he couldn’t close as many sales nor complete as many projects. So, sales would go down about the same as costs, and profits would remain flat.
The solution I gave him was to cut costs by reducing his staff (either through layoffs or natural attrition) and to boost employee productivity. Because if he were able to serve the same number of clients with a smaller staff, then profits would rise. In fact, if the staff were pared down enough, he could even afford to pay each staff member more than they currently make.

There are several great example of this “reverse logic” of paying employees more to increase profits.
One example is The Container Store. The Container Store has just one employee for every three their competitors have. But, they pay their employees double the industry average and spend 160 hours training them.
What is the result of this strategy? The Container Store employees are better trained and happier, and thus provide superior service. All this at a 33% lower cost than competitors.

Interestingly, when The Container Store opened in New York City, it had 100 times more applications than available positions. With numbers like that, they can hire the best of the best each time.

Similarly, Harry Seifert, CEO of Winter Garden Salads gives employees bonuses just before Memorial Day, when demand for its products peak. The bonuses boost morale and cause the company's productivity to jump 50% during the busy period.

Paying employees more to improve performance and boost company-wide profits is a historically proven tactic. In fact, back in 1913, Henry Ford doubled employee wages from $2.50 to $5.00 per day. The move boosted employee morale and productivity and caused thousands of potential new workers to move to Detroit.

Your employees can and should be a source of your competitive advantage. Recruit them slowly and wisely. Train them well. Give them a voice in your company and respect them. And pay them well. When you do this, you’ll have employees that perform at three times the level of your competition. And even if you pay them double the industry average, you’ll still have huge profits and outperform your competitors.

Getting to the Right Strategy in 15 Minutes or Less


I regularly engage with entrepreneurs and executives to help them determine the right long-term strategic plans and goals to pursue, toward the end of maximizing their businesses’ valuations and their likelihoods of selling their companies down the road.

This, as I have discussed before, is the highest ROI work that a business manager can do, yet most of us invest way too little time in it, and even more vexingly the results we get from the time we do spend are middling at best.

Now, in addition to just not knowing how to strategic plan (and for those interested in a quick primer, I recommend Dave Lavinsky’s excellent book Start at the End), an under-rated reason why otherwise talented businesspeople are poor strategists is because of what I would describe as Business Dissonance -  the sad feeling that even if we do manage to arrive at the right plan, it won't make any difference.

Why not? Well, at least partly because for too many of us and the organizations we lead feel incapable of implementing and maintaining the big changes that are almost always required to attain the long-term plan.

Yes, to paraphrase a famous scene from The Godfather, it can often feel like every time we think we have freed ourselves from Business as Usual, we are pulled back in and nothing changes.

As a result, we sabotage our grand plans by frittering away our precious time and energy on the mundane, the petty, and on the "urgent" but not really important stuff that can so easily consume our day.

Like round and piles and endless streams of email.

Meetings with weak agendas and even weaker follow-up.

The daily "just getting through” client and customer “crises” (versus finding and fixing their root causes).

On chatter, and on frenetic activity that feels like hard work, but doesn’t progress us toward important goals.

Paradoxically, this state of affairs does point us to the strategic breakthrough: by gaining control of our day to day schedules and to dos, we will free up time and space to focus on the important projects as dictated by our strategic plan.

And how can we empower ourselves in such a glorious way?

Well, for those that can describe themselves as Knowledge Workers (almost all of us these days), here’s an extremely simple daily “hack”: For the first hour of our day, shut off the technology.

No email. No text. No tweets. No posts.

And if an hour feels too much, then start with 15 minutes.

Sound simple? Well, it is, but not easy. (Try it, and if you can keep it up for just a month write me back, and I'll send you a card for a free cup of coffee on me).

When we clear our minds and spirits like this to start our day, almost magically will our capacity grow to make steady progress toward our most important (and almost always extremely proactive) projects and goals.

And the deep peace of mind of knowing that today’s work is in sync feels really, really good, too.

Tech is Booming: Time to Invest in a VC Fund?


This is clearly one of the great boom times in the history of Venture Capital, with more than $29 billion in fresh capital being raised by more than 250 funds over the past year. This represents a 70% jump from the comparable, previous year’s period, and more than a 225% jump from the “nadir” numbers of 2009-2010 (all stats here from the NVCA).

And VCs have seen a lot of successful exits, too (hooray!), with in 2014 more than 115 venture backed companies going public and more than 455 exits via M&A.

Probably most importantly, long term (3, 5, 10, and 20 year) VC returns continue to significantly out-perform the major public equity indices (DJIA, NASDAQ, S&P 500).

All very, very good and exciting stuff, but for the individual investor, is investing in a VC fund a good idea?

It can be, as the return examples above attest, but because of regulatory and technology changes, there are now far better ways to deploy capital into high potential, privately held companies (i.e. the VC investment sweet spot). Here’s why and how:

Market Efficiency. With now over twelve hundred active U.S. venture funds - and in general with them pursuing mostly the same deal sourcing strategies and approaches - it has become extremely difficult for VCs to consistently find and secure high potential, well priced deals.

The result has been a “regression to the mean” - with alpha performance by fund managers being driven as much by randomness and luck (as it has been with public market mutual funds for decades) as by coherent design.

Fees. The world of low and no load management fees that so transformed mutual fund investing for in the 80's and 90's is far from being on the VC radar.

In fact, as opposed going down, venture fund fees have been going in the other direction, with a number of higher profile funds upping their annual fees to 3% (along with asking for a greater share of the returns) versus the standard 2-2.5%.

These high fees obviously eat away at return, and more profoundly are in contrast to the “disintermediation spirit” so at the heart of modern investing.

Friction. Little discussed in most venture fund models are the high costs of deal sourcing, diligence, and oversight.

It is not unusual for a venture fund to sort through thousands of possible investments, deeply diligence a few hundred, prepare and submit term sheets on a few dozen, and then do zero deals.

This all costs money.

And all this doesn’t even begin to measure the management and oversight costs on the deals that are done – which at their barest minimum range from quarterly board meeting attendance to monthly, weekly, and sometimes daily calls and meetings with portfolio companies.

All this work is necessary to do VC investing right, but is also expense and friction filled.

Now, funds do work to charge some of these costs back to their portfolio companies, but usually these offsets flow to the fund’s General and not its Limited Partners.

So what to do?

Well, for those that want access to the unique returns of the asset class, but are reluctant to either a) put all of their eggs in one basket via investing in one particular startup directly and / or b) get the problems with the current VC model per the above, here are two ideas:

    1.    Explore peer-to-peer lending sites like and LendingClub, all of which offer various forms of fractionalized and securitized investing into the asset class.

And, with the SEC greenlighting equity-based crowdfunding last week, keep a careful eye on crowdfunding sites like that will now be able to directly process smaller-denomination private company investments over the Net.

      2.   Do Like Warren Does. The Berkshire Hathaway Model of an “operating company owning other operating companies” can be a great gateway to the asset class, combining both diversification along with the the “pop” and fast liquidity potential that a single company investments allows. Well-run companies like this that focus on the startup space are hard to find, but when one does they are definitely worth a closer look.

In short, when it comes to this asset class, the advice here is to avoid the VCs and explore investment models – some new and some old – that provide access to it in a lower cost, higher expected return, and all-around more modern way.

To Your Success,

Perfectly Executed Crowdfunding Campaign


In my Crowdfunding Formula program, I teach the 14 steps you must follow to successfully raise money from Crowdfunding.

It turns out that Jeremy Smith from Provo, Utah, not only followed these 14 steps to a "t", but really perfected them.

The result: while he set out to only raise $12,000 for his new night light product (the SnapRays Guidelight), he ended up raising over $430,000 (he raised the $12,000 he needed in just 2 hours).

You can see the Crowdfunding raise for yourself at Kickstarter here.

Here are the key reasons Jeremy and the SnapRays Guidelight were successful in their Crowdfunding raise. Make sure you keep these points in mind if/when you use this great new funding source.

Great Video

The video explaining the product and the Crowdfunding raise was excellent. It starts by explaining the problem (i.e., existing nightlights have lots of issues such as bulkiness, etc.). It goes on to explain the benefits of his solution (e.g., ease of install, energy efficient, etc.). It even does a side-by-side comparison versus an existing solution showing how much better it is.

Then, about 2 minutes into the 2:45 minute video, co-founder Sean appears and says “thanks for watching” and explains how he and his team has “poured their lives” into the project or years. This personalizes the video, makes you like him, and thus makes you want to fund the project more.

Finally, the video has inspiring music in the background. While it’s just “stock” music footage, it gets the viewer excited.

Solid Description

Beneath the video, there are tons of pictures of the product, a great description, and answers to all the frequently asked questions people have about it. Where did they uncover what frequently asked questions to answer? Well, from previously presenting to potential investors and partners they developed a list of all the key questions people have.

Variety of Reward Options

When doing a Crowdfunding raise, you offer rewards to those who back you. This company wisely created 11 different types of rewards based on contributions of just $12 to $120. By having this variety, they were essentially able to price discriminate. People who were only able to offer $12, spent that amount, while those with deeper pockets provided more support.

Quality Social Media Marketing

Everything I’ve mentioned so far about this Crowdfunding raise would have been a waste had the founders been unable to drive people to their page. And that’s just what they did. Via a very effective and concerted effort, they took to Facebook and Twitter and generated a big buzz for their raise. As a result, they drove a lot of people to their Crowdfunding page, and those people often funded the company and/or told even more people about it.

Like everything else, it’s all about execution. Having a great idea is one thing. But the magic is when you perfectly execute on it, and raise over $430,000 in under 30 days!

The Story That Launched A Billion Dollar Business


The right story can grow your business into an amazing success. That being said, consider this great story:

    On a beautiful late spring afternoon, twenty-five years ago, two young men graduated from the same college. They were very much alike, these two young men. Both had been better than average students, both were personable and both - as young college graduates are - were filled with ambitious dreams for the future.

    Recently, these men returned to their college for their 25th reunion.

    They were still very much alike. Both were happily married. Both had three children. And both, it turned out, had gone to work for the same Midwestern manufacturing company after graduation, and were still there.

    But there was a difference. One of the men was manager of a small department of that company. The other was its president.

    Have you ever wondered, as I have, what makes this kind of difference in people’s lives? It isn’t a native intelligence or talent or dedication. It isn’t that one person wants success and the other doesn’t.

    The difference lies in what each person knows and how he or she makes use of that knowledge.

    And that is why I am writing to you and to people like you about The Wall Street Journal. For that is the whole purpose of The Journal: to give its readers knowledge - knowledge that they can use in business.

The above story/sales letter, written by Martin Conroy, was used by the Wall Street Journal for 25 years starting in 1974. Doing the math regarding how many people this letter was sent to, the percentage of orders that came from it, and the subscription prices, it is estimated that this story resulted in $1 billion in sales for the paper.

So, what’s the point?

The point is that stories are an extremely effective, but often overlooked, sales tool that can allow emerging ventures to compete with large established companies. Stories allow companies to get their prospects involved in their message. It gets them excited. And then they want to learn more.

Here's an example of another startup who crafted a great story...

    I’m about to tell you a true story. If you believe me, you will be well rewarded. If you don’t believe me, I will make it worth your while to change your mind. Let me explain.

    Lynn is a friend of mine who knows good products. One day he called excited about a pair of sunglasses he owns. “It’s so incredible!” he said. “When you first look through a pair you won’t believe it.” What will I see? I asked. What could be so incredible?

    Lynn continued. “When you put on these glasses your vision improves, objects appear sharper, more defined. Everything takes on an enhanced 3D effect and it’s not my imagination. I just want you to see for yourself.”

The story goes on to discuss all the benefits of Joe Sugarman’s BluBocker sunglasses… over 20 million pairs of which have now been sold!

Does your company have a great story? If you do, great. If not, create one.

And once you have a story, where should it go? To start, it should go in your business plan. Use your story to excite investors, and others like potential partners and employees. And use your story in your marketing like the Wall Street Journal and BluBocker sunglasses did.

Success can be a simple as crafting a great story (and then delivering on the story’s promise of course). So start crafting today!

The One Thing Every Venture Capitalist Wants


A venture capital firm is a financial institution that focuses on providing capital, in the form of equity, to companies who offer them the prospects of significant growth. 

The partners and associates at venture capital firms are known as venture capitalists. The term "VC" or "VCs" applies to both venture capital firms and venture capitalists. 

Unlike angel investors, who invest their own money, VCs are professional institutions that invest other people's money. VC firms raise capital for their own funds from sources which primarily include pension funds, financial and insurance companies, endowments and foundations, individuals and families, and corporations.

The VCs are then charged with providing a solid return on investment on this money. This is the one thing that every VC wants. By providing a solid ROI to their investors, VCs earn bonuses and raise more funds so they can stay in business.

VCs earn returns for their investors by finding high growth companies, making investments in them at favorable terms, guiding and nurturing them, and enacting a liquidity event (e.g., selling the company or having it complete an initial public offering).

Because they are utilizing other people's money, and are judged and compensated by the performance of their investments, venture capitalists are extremely rigorous in their investment decision-making process.

Importantly, VCs tend to only invest in companies with significant market potential of $50 million, $100 million or more. This is because even with all their relevant experience, the average venture capital firm will lose money on half the companies they invest in and only break even on a third.

Where VCs make their money is on the approximately 20% of companies they invest in that see explosive growth and provide remarkable returns of 10 times to 100 times or more on their investment.

Industry insiders sometimes refer to the 2:6:2 rule. This rule is that an average portfolio of ten VC investments will include two losses (e.g., companies go bankrupt), six moderately performing companies (may break-even on the investment or lose a little) and two very successful returns.

In fact, an analysis by Bygrave and Timmons of VC funding found that just 6.8% of investments returned ten times or more on the invested capital (these "home runs" are what give VCs high overall returns). Conversely over 60% of investments lost money or failed to exceed the amount of money earned if the capital had been put in an interest-bearing bank account.

The result of this analysis is that typically a venture capitalist will want to see the ability to get 10X their money back or more from investing in your company (they are seeking "home run" investments which compensate for the 60% of their investments that don't pan out) . As such, for every $1 million you are seeking from VCs, you must show them a realistic scenario where you can turn it into $10 million.

So, importantly, when approaching venture capitalists, remember 1) their primary goal is to make significant money from investing in you; and 2) you need to show them how they can earn a 10X return.

Now, if your company can potentially give VCs a 10X return, then seeking venture capital might be right for you. However, raising it is virtually impossible if you don't know what you're doing and haven't done it before. So follow this plan:

1. Develop a list of VC firms.

Start by creating a list of venture capital firms.

2. Narrow your list.

Each venture capital firm invests based on particular characteristics (e.g., some only invest in software firms), so you need to make sure your list only includes VCs that are interested in your type of venture.

3. Make sure the VC is active.

Many VC firms that have websites aren't active. That is, they aren't making new investments. You don't want to waste your time contacting and talking with these firms.

4. Find the appropriate person to contact.

This is critical. Venture capital firms are comprised of individual partners and associates. If you contact the wrong one, you'll be dead in the water.

5. Send the VC partner or associate a "teaser" email.

You don't want to send the VC a full business plan or executive summary initially. Rather, you need to send them a "teaser" email to see if they are interested. You don't want to "over shop" your deal.

Once the VC "bites" on your teaser email, the next step is generally to send them your business plan. Following that you'll do an in-person presentation(s), receive and negotiate a term sheet, and then sign a formal agreement and receive your funding check.

The process is a lot of work, but once you receive their multi-million check with which you can dramatically grow your company, you'll agree it's worth the effort.

Suggested Resource: In Venture Capital Pitch Formula, you'll learn exactly how to find and contact venture capitalists, exactly what information to include in your presentations, and how to secure your financing. This video explains more.

Kickstarter Surpasses $1 Billion in Funding


On March 3rd, Crowdfunding platform Kickstarter announced that is surpassed $1 BILLION in funding pledges. That’s $1,000,000,000 in funding for entrepreneurs.

Very interestingly, Kickstarter included lots of interesting statistics on these crowdfundings as follows:

  • 5.7 million people funded these projects (versus less than 1,000 active venture capital firms worldwide)
  • More than half of the $1 billion was pledged in the last 12 months alone
  • The 5,708,578 people who have backed a Kickstarter project represent 224 countries and territories, and all seven continents
  • These are the top Countries & Territories by dollars raised: 
    •  United States: $663,316,496
    • United Kingdom: $54,427,475
    • Canada: $44,913,678
    • Australia: $31,776,566
    • Germany: $21,607,047
    • France: $10,131,159
    • Sweden: $7,150,257
    • Japan: $7,139,419
    • Netherlands: $7,033,026
    • Singapore: $6,710,981
  • 1,689,979 people have backed/funded MORE than one project
  • 15,932 people have backed/funded more than 50 projects
  • $619 million has been pledged by returning backers

Those are some very impressive numbers. And they ONLY represent one Crowdfunding platform. If we start adding other platforms, like IndieGogo, RocketHub, etc., the amount of Crowdfunding dollars raised and the number of backers skyrockets further.

And, perhaps most importantly, the trend for entrepreneurs is extremely positive as Crowdfunding is growing rapidly. Recall what I wrote above -- “more than half of the $1 billion was pledged in the last 12 months alone.” Now consider that Kickstarter launched on April 28, 2009.

That means that from April 28, 2009 to March 2, 2013, a nearly 4 year period, a half-billion dollars was raised on Kickstarter. They then raised the same amount in just the last year.

The fact remains that Crowdfunding is here, is here to stay, and is only growing. This is truly a blessing for entrepreneurs and is probably making right now the best time in history to raise money for any company. So, if you need funding, what are you waiting for?

Big Data, Dashboards, and Exits


The confluence of Big Data and high quality, low cost software-as- service (SaaS) programs and applications for virtually every business purpose has made the path clearer than ever as to what entrepreneurs and executives must do to build real equity value in their companies.

It looks like this:

First, utilizing great tools like John Warrilow’s Sellability Score or Dave Lavinsky's Start at the End we define exactly what we seek for our key stakeholders: Customers, Employees, Partners, Vendors, and Shareholders.

For customers, it might be the efficacy / benefits of our products and services.

For Employees, it might be their opportunities for contribution, professional growth, enjoyment and income.

For Partners and Vendors, it might be what we wish our reputation to be, our brand to represent.

And for our Shareholders, it is the equity value we seek to attain, through our stock price, our sale price (to a strategic or financial acquirer), and / or the future value of our cash flows.

With these end points clearly defined, we then score ourselves - i.e. measure the size and nature of the “gaps” between where we are and where we want to be.

Now, for almost all businesses, completing this scorecard requires accessing various SaaS programs, both paid and free, to “get the data.”

For Customers, tools like Survey Monkey, Cint, or Zoomerang to measure their satisfaction.

For Employees, tools like LinkedIn, Glassdoor,, and Great Places to Work to compare how happy and energized our people are versus Best-of-Class.

For Shareholders, data and intelligence providers like CapIQ,, IBIS, and Axial to rate ourselves against competitive and comparable companies.

We then turn to “the Micro SaaS” – the various “Cloud” programs and applications on which our business partially, mostly, or completely runs.

Programs and applications like Google Analytics, PIWIK, Clicky, and KISSmetrics for our web marketing performance, Salesforce, SugarCRM, Infusionsoft, and Marketo for lead conversion and sales teams, ECI, Sage, Intacct, and Basecamp for operations and project management, and QuickBooks, NetSuite, and Xero for accounting and finance.

Now, here is where, in the last 18 months, the game has really changed.

For the first time ever, we can now automate both the measurement of where we stand against our goals and the Gap Analysis of what we need to do improve results.

This is because the long hoped for promise of business intelligence dashboards, tools and services has reached a tipping point, as best evidenced by the massive financing attained by companies like Cloudera and Domo, and by the incredible traction that smaller company-focused business intelligence dashboard tools like Geckoboard, Leftronic, and my company's product Guiding Metrics have gained.

Combining Exit Planning, SaaS, and Dashboards allows us to automate our strategy, defining what we want to achieve and understanding the industry, market, and competitive landscape we must prevail in…

…and our tactics, the day-to-day marketing, sales, operations, and financial nitty-gritty needing to be done to get there.
And as we attain this seamless integration and automation, we in turn get closer to realizing the ultimate business dream...

…sitting back and watching the dollars and the victories roll in while enjoying and not killing ourselves in the process!

Pretty cool, eh?

How To Raise Money Like a Billionaire


Even billionaires need to raise money. Take Donald Trump. Each time he launches a new real estate project, he raises outside money for it. Why? Because why should he only invest his own money? Rather, Trump and other billionaires understand the importance of leveraging other people’s money.

So, what do billionaires like Donald Trump do to raise money? Below are five key tactics billionaires use, and perhaps more importantly, that you can too.

1. Leverage Relationships

Billionaires have lots of relationships that they leverage when seeking capital. They access their networks by telling them about their latest project and their funding needs.

You too have relationships. You have current and/or former bosses, co-workers, counsel (e.g., accountants, lawyers, etc.), family friends and so on. Leverage these relationships when seeking funding. Even if none of your current relationships can invest directly, some certainly know and can introduce you to others who can.

2. Get Creative on Deal Terms

A great investment makes sense for both the investor/lender and the entrepreneur. Oftentimes, in ensuring the investment works, you need to get creative on the deal terms.

For example, maybe you give the investor a small equity percentage in your business, monthly repayment of some of their investment, AND a small percentage of your venture’s future sales. While most investments only include one of these funding options (e.g., debt/loan, equity, or royalty payments), there’s no rule that you can’t get creative and combine deal terms. And when you do, you often make your deal/company more appealing to investors.

3. Sell Investors on the Opportunity

Regardless of how good your company or investment opportunity is, you need to “sell” it to investors and lenders. Billionaires like Donald Trump must also do this. For instance, Trump constantly convinces investors why his newest venture will be a huge success.

Marketing yourself and your company to investors is a crucial part of raising capital. You must prove to investors why your company will be successful and that they will get a solid return on their investment. Importantly, when “selling” investors, get specific. For example, don’t just say you will succeed because you have the best management team. Rather, explain the precise credentials of your team that make you the best.

4. Don’t Take Rejection Personally

Billionaires like Donald Trump have been rejected hundreds of times in their money-raising careers. The fact is that your investment is never right for everyone.

You must accept that you will get more “no’s” than “yes's” when raising money. Importantly, don’t let the “no’s” get to you. Remember that you only need one “yes.” So, even after 10 “no’s” or 25 “no’s” or even 50 or 100 “no’s” you need to keep going and persevere.

If you truly believe you have a great company or opportunity, and that it can provide a solid return to your investors/lenders, then never back down.

5. Strategically Incorporate Investor Feedback

When investors say “no,” use the opportunity to gain feedback. Specifically, ask them why they didn’t want to invest. Sometimes it has to do with your deal terms. Other times it has to do with concerns about your business or business model.

It is important for you to strategically assess this feedback. Don’t blindly follow the feedback or advice, as it may or may not be correct. But particularly if you hear the same feedback from multiple investors, you must strongly consider what they are saying. If multiple investors, for example, say your management team isn’t strong enough, then it’s generally time to agree with them and immediately start to bolster your team.

Similarly, when billionaires like Donald Trump have trouble raising funding, they modify their project and/or deal terms to better adhere to the needs of investors and/or lenders.


In summary, raising capital is essentially a partnership between you the entrepreneur and the sources of funding you seek.

The larger your network, the more potential funders or referrals to funders you have. After that, it’s about creating and selling an opportunity that funders can’t resist. Never give up, but also, don’t be stubborn -- realize that feedback from those who say “no” can often be invaluable to your ultimate success!

Uber, SpaceX, Cloudera: Simplicity, Power, Promise


Yesterday, TechCrunch posted a neat slideshow on the nine largest venture capital and private equity financing rounds of the past 24 months.

It is an extremely cool piece - profiling seven (two companies on the list had multiple rounds) of the highest flying technology companies in the world.

And the emphasis is clearly on the World - as four of the seven companies profiled (Didi Dache, Flipkart, Meituan, and Xiaomi) have businesses focused outside of the United States.

The stories of the three US companies on the list, Cloudera, SpaceX, and Uber, are treasure troves of wisdom on how disruptive companies are born and grown.

Let's start with Uber, both because it tops the list, with over $4.6 billion in capital raised, and because most of us can easily understand and relate to the Simplicity, Power, and Promise of its business model.

First, the Simplicity. At its core, Uber utilizes pretty basic technology to better deliver a basic service - a hired ride from point A to point B - that has been in existence since the beginning of time.

It is simple in such an eye opening way that for many folks the first time they download the app, press “Request Uber X,” and magically then a few minutes later a ride appears they are taken with a giddy excitement.

This simplicity masks the Power unleashed by Uber's technology: the initiative of the now over 162,000 and growing Uber Drivers.

There are various reasons (many controversial) why these drivers see Uber as a good and worthwhile use of their time and work energy, and whether or not it is good for our economy and society as a whole.

However, what is clearly not in doubt, is how Uber is massively profiting by harnessing and channeling the entrepreneurial, Sharing Economy Power of these tens of thousands.

That Power in turn leads to the Promise of Uber: To transform our notion of what transportation is, including whether or not it even makes economic and quality of life sense to own an automobile anymore...

…and in an even grander vision how Uber could up-end the shipping industry (and even the mail, too!).

Simplicity, Power, Promise - better and more cinematically embodied in Uber than perhaps in the other six companies profiled, but as you dig into those you will find similar themes.

Didi Dache, which just raised $700 million, is the Uber of China. The core business of SpaceX, which just raised $1 billion from Google, is as Simple and Powerful as they get: shooting rockets into space.

Xiaomi, to bring the promise of high-end “Apple-like” smartphones, to China’s 1.2 billion mobile customers.

The vision of Cloudera, which has raised over $1 billion from investors (and is contemplating an IPO in the near future) is nothing less than to give “all businesses a…360-degree view of their customers, their products, and their business.”

The obvious suggestion is to work to bake these qualities into our business models and entrepreneurial endeavors.

Perhaps less obviously, in my experience these qualities do exist in most businesses, but to find them requires a boiling away of the Complex Excess to get to the essential core.

When you do, while you might not raise $4.6 billion at a $40 billion+ valuation like Uber, my gut is that you will find the path to meaningful growth and a High Value Exit more clearly and easily defined.

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