Written by Jay Turo on Wednesday, April 25, 2012
At the end of the day, we all want to close more deals and do more business. To do so, we have to be very convincing.
But often at that crucial moment, when it's most important to be convincing, 9 out of 10 times we're not.
Our most important messages have a surprisingly low chance of getting through.
I recently connected with #1 New York Times bestselling author, Oren Klaff, who knows the answer.
Oren’s book – the amazing Pitch Anything – is hands-down the best book on modern selling and deal-making I have ever read.
And I have read a LOT of them.
And it is driving a quiet “turn the tables” revolution on the relationship between buyer and seller.
But don’t just take my word for it. Here are what some of Oren and his method’s thousands of devoted followers say about his revolutionary approach:
“If you've ever come out of a meeting, conversation, or sales appointment with a "no", or "unfavorable" response from your audience or prospect AND didn't know why, then you may want to check out this book.”
“Oren cuts through old patterns of boring conversation that we all despise and breathes new life into the art of business meetings, presentations and pitches.”
“Oren Klaff has a dazzling ability to clearly describe totally new methods for presenting ideas.”
“Now THIS is the “Art” of the Deal – Trump’s got nothing on Oren Klaff!”
Oren put thousands of hours of dedicated research as what needs to go in every pitch, every presentation.
And he’s put it all in this new video.
When it comes to delivering a pitch, Oren Klaff has unparalleled credentials. Over the past 13 years, he has used his one-of-a-kind method to close deals, raise money and sell companies.
For the first time, he's sharing this method in detailed and eye-opening videos.
Whether you're selling ideas to investors, presenting to JV partners or pitching clients for new business, Oren's methods will work for you.
• How to give the "Perfect Presentation" - for an client, JV partner or investor - based on Oren's battle-tested and path-breaking formula
• 3 reasons why your emails, requests and pitches are being ignored right now
• The right way to get past the "gatekeeper of the mind" and grab attention when you need it most
• How to completely control a room - even if it's filled with strangers you just met (This part of the method is called "Frame Control" and it works).
Imagine you're sitting across from the one person who can help you secure the biggest deal of the year. Instead of listening to you, he's texting on his phone and then tells you he has to take another call in few minutes.
Your next move means the difference between big bucks or going back to the drawing board.
Have you been there? Oren shows you how to fix this problem here.
To your Success,
PS - I should also mention: Two years ago, Oren was pitching a Russian billionaire.
The billionaire asks, "Oren, give me vun last reason vhy I vould do this deal."
Oren looks at him. And says, "You know, this reminds me of the blue whale&hellip"
Find out what happened next here.
As a final thought: What would you do if you could get whatever you want from whoever you want in 20 minutes?
That's the power of Oren's STRONG pitch. His method is broken down into basic steps that are learnable and repeatable. This exclusive STRONG method can be put to use immediately:
1. Set the Frame
2. Tell the Story
3. Reveal the Intrigue
4. Offer the Prize
5. Nail the Hookpoint, and
6. Get a Decision
Each of these tactics can get you where you want to go. Used together, they make a potent cocktail for closing the deal.
Find out how to use Oren’s STRONG method here.
Written by Jay Turo on Monday, April 23, 2012
The very high profile sale of Instagram to Facebook for $1 billion after just 13 short months in business (and no revenue) of course has entrepreneurs and investors scrambling to divine lessons and wisdoms for where and how to be and find the next “big thing.”
While Instagram’s meteoric rise and quick exit has great excitement and story-telling value, I would posit that we need to use a wider lens to find the real “actionable” intelligence and where Instagram fits into the larger ecosystem of companies with high growth and exit potential.
The catch-all term I like best for these kinds of companies is emerging.
It does not suffer from "commentary fatigue" nor opaqueness as terms like “middle market” or “venture-backed” or “SaaS” or “startup” or “small and medium-sized” do.
And it effectively carves out the large mass of startups and small businesses destined forever to stay small.
Webster defines "emerging" as follows:
1. To rise from an obscure or inferior position or condition
2. To rise from or to come out into view
3. To become manifest
4. To come into being through evolution
1. To Rise From an Obscure or Inferior Position or Condition. Emerging companies, in their most common and interesting form, are small and obscure.
Instagram was - at least for a very little while - just a couple of programmers with a dream.
2. To Rise From or To Come Into View. Far more common than Instagram’s straight up success, emerging companies are often ones that have fallen on hard times and are seeking to "rise from" their current distress via turning around and restructuring their businesses.
The real estate sector remains a treasure trove of these kinds of opportunities, as are industries like publishing and music. As adversity intensifies, so does emerging opportunity.
3. To Become Manifest: Here we need Webster's help again - to become manifest, or to be "readily perceived," or to be "easily understood or recognized."
Emerging companies are usually SIMPLE businesses.
They make things or provide services, and sell them for more than they cost to make or deliver.
And every quarter and every year, they just "chop more wood" and "carry more water."
It often isn't fancy nor often even terribly interesting.
Just reading the above it should be obvious that emerging companies are usually NOT venture capital - backed. They are able to pay for their growth through operating cash flow and thus do not need outside capital to finance their businesses.
4. To Come Into Being Through Evolution. This is perhaps my favorite because it references the essence of any business - the talent of its people and the quality of its corporate culture.
The best emerging companies are always run by a group of hard-working, thoughtful, creative, persistent, and fantastically committed owner-operators who devote their lives to their businesses for multiple, non-contradictory motives.
They want to offer true value to the marketplace with their product and service offerings.
They want to leave a legacy via building an enterprise of lasting value and character.
And they want to make a lot of money.
While popular business culture is fascinated with "golden boy entrepreneur" stories like Instagram, these are way more the exceptions than the rule.
Far more common are stories like Amazon, Kinkos, The Body Shop, Outback Steakhouse, or even Wal-Mart and Hewlett-Packard - companies that had long gestation periods, and many slow or no growth periods, before evolving to successful forms.
Look for the above qualities in companies worth backing.
Look for them quantitatively with the key metric of operating cash flow growth.
And look for them qualitatively in the mindset of management and in the tenor of the corporate culture.
It will take longer than 13 months, but if both the numbers and the business tone align and you can get in before the whole world knows about it, then you have yourself a winner.
Or, another way of saying it, an emerging company.
Written by Jay Turo on Monday, April 16, 2012
A lot of folks are frightened by the word luck.
Especially for those of the capitalistic persuasion, luck can be a very uncomfortable word.
It can offend our puritan sensibilities.
Our sense of us as masters of our fate.
It can fly at the heart of that sacred concept of our American way of life, of the American dream, that if we work hard, we get ahead.
And if we don't, we won't.
Yes, shouldn’t our fate really rest not in our stars but in ourselves?
And then there is our entrepreneur.
Please let me add that I take an expanded view of who an entrepreneur is.
For me, they are not only those who start a new company - the classic man (or woman) with a plan entrepreneur, but they are anyone - in big companies and small, government and non-profits - that channel the famous words of George Bernard Shaw and do not just look at things as they are and say why but rather see things and ways of doing and being that have never been and say why not?
Yes, really all of us - at least every now and again - embrace this expanded “why not” definition of entrepreneurship.
And it is in these moments of idealism, of childlike innocence, that yes there is the kind of luck that every entrepreneur deserves to have.
It is the kind of luck Dave Lavinsky talks about in his upcoming new book “Start at the End,” that in the modern world, the old SWOT - strengths, weaknesses, opportunities, and threats analysis - really no longer applies.
No, Dave posits that our brave new world is a “SO” world.
One of only Strengths and Opportunities.
And in this world, every entrepreneur deserves the kind of luck that their hearts and minds are focused only on the bounties of opportunities that are everywhere around them and that they have the confidence and conviction in their strengths to go out and win them.
And it is in this space of "why not” that every entrepreneur deserves the kind of luck that is expressed in my most favorite of Growthink’s client promises - that we all honor each others hero’s journeys.
Journeys of business, of professional development, of philanthropy, of parenting.
Really of any project of importance and ambition.
And it is in this luxurious space of self-actualization that such a tiny percentage of our fellow human beings are ever afforded even a moment's time to be in…
…that every entrepreneur deserves the kind of luck that they stop and catch themselves and are filled with that even more luxurious space of gratitude to live in a world like ours where so much is possible and for so many.
And from this space of gratitude that we finally reach that so fundamental kind of luck that every entrepreneur deserves to have.
It is that so exalted place where it is not about what luck can do for you - how it can make you rich and famous and powerful - but rather what you can do with the luck.
With it, how we can build and do great things.
And touch and connect and inspire those around us.
And maybe leave this world just a little - or a lot – better place than we found it.
May we all be so lucky.
Written by Jay Turo on Monday, April 9, 2012
"An entrepreneur is a person who has possession of a new enterprise, venture or idea, and assumes significant accountability for the inherent risks and the outcome. He or she is an ambitious leader who combines land, labor, and capital to often create and market new goods or services."
- Professor Arthur O'Sullivan, from "Economics: Principles in Action"
So who is and who isn’t an entrepreneur. First, the “obvious” entrepreneurs:
Individuals STARTING New Companies. New companies, startups of all shapes and forms, across all industries, all around the world.
Yes, the classic men and women with big dreams in their hearts and ambitious business plans firmly in their hands.
In the U.S. alone, this represents the more than 6 million new businesses started every year, and the many, many millions more contemplated.
Thank heavens for all of them - according to a famous M.I.T study new business starts account for more than 2/3 of all net new job creation.
And this power of entrepreneurial job creation, thank heavens has spread worldwide.
Take Peru, where over the past 25 years more than 1.5 million jobs have been created from microfinance loans (think Kiva.org).
Largely as a result of these thousands of points of small entrepreneurial flowering, the unemployment rate in that still very much developing country is now less than that of the United States!
Individuals LEADING Small Companies. Per that M.I.T study, the other 1/3 of net new U.S. job creation comes from "gazelles," - the 641,000 U.S. firms with between 20 to 1,000 employees. They, along with startups, account for more than 62% of all private sector employment.
Anyone that has spent even a day at a growing, middle market company can literally breathe the entrepreneurship in the air.
The best of them are led by deeply ambitious men and women walking the talk of American business.
Now very importantly, not all small business people are entrepreneurs. The key phrase in Professor O'Sullivan's definition when evaluating whether one is, or is not, is ambitious leader.
All of us know small business men and women - that while certainly possessing many wonderful attributes – for whom it would be a big stretch to describe them as ambitious leaders.
Now how about those that we don’t normally think of as entrepreneurs, but who certainly demonstrate daily the attributes and attitudes described in Professor O’Sullivan’s definition.
In some ways, those that do so in the contexts of bigger business, philanthropy, and government are even more impressive than our obvious entrepreneurs. Such as:
Individuals that are Accountable for Change and Growth at BIG companies. Into this category falls executives like Wal-Mart’s CEO Mike Duke.
Mr. Duke is certainly an ambitious leader with very significant accountability for risks and outcomes, $420 billion in revenues, 2.1 million employees.
Heck, growing Wal-Mart even 5% annually requires creating a company every year that would rank in the top 100 largest companies in the country.
Individuals with Leadership and Change Responsibility in Organizations of All Types. The challenges of leadership and accountability exist in ANY organization taking on meaningful and challenging objectives.
Bono, arguably the world's best known philanthropic celebrity, is an entrepreneur on two fronts.
First, via his commitment to world-class creative output as the leader of the mega-rock band U2.
And he is an entrepreneur, via his unique effectiveness as an activist and spokesperson for big projects - third world debt relief, and AIDS and African development issues, among others.
Other examples of “philanthropic” entrepreneurs include Gary McDougal – a former Partner at McKinsey - who later in his life re-engineered the broken Illinois welfare system and made it a model nation-wide.
Or how about Gail McGovern - President of the American Red Cross - who thinks and works entrepreneurially everyday to expand the brand and effect of the organization beyond disaster relief.
Global Entrepreneurs. Now more than ever ambitious individuals worldwide strive to not just be entrepreneurs per the American way, but to take the best of what we do and how we think and add to it and candidly, then to crush us. And I say more power to them.
Because entrepreneurship at its essence is about creation, and from Peru to Peoria the success of one accountable and ambitious entrepreneur anywhere results in a better life for all of us everywhere.
Yes, entrepreneurs really are the men and women the world over with plans, ambition, and accountabilities that make our world a wealthier, healthier, and all around more interesting and dynamic place.
Written by Jay Turo on Monday, April 2, 2012
This week, the President is expected to pass H.R. 3606 - the Jumpstart Our Business Startups (JOBS) bill, which includes provisions that for the first time legalize investment-based crowdfunding.
While the crowdfunding portion of the bill still needs to go through SEC rule-making, the die is clearly cast that a whole new social networking – based world of start-up and small business investing and financing is coming fast upon us.
So who will the winners be and who will lose ground once the new rules are fully live?
Well, the first group of winners will undoubtedly be the tens of millions of American entrepreneurs - and eventually hundreds of millions of worldwide - that for the first time in human history will have access to on-demand capital for their creative and future-focused projects and initiatives.
To envision this, visit (or revisit) Kickstarter.com, and browse through the incredible diversity of cause and passion - based projects, from charitable to design to artistic to technological, crowd funded on a donations basis on the site.
Then, layer in elements of the kinds of companies funded by angel investment groups and early stage venture capital firms – i.e. focused on hot technology spaces like mobile commerce, healthcare information technology and possessing fast-scaling revenue and thoughtful “Porter Five Forces-Friendly” business models.
Doing so will give you a good feel for what the first turn of investment-based crowdfunding will be.
But quickly following these early adopters will be the best of the best of U.S. small and medium-sized companies.
These businesses - think of the Inc. 500 list of America's fastest growing companies - are home to the most talented, hardworking, and just nose to the grindstone, money making and job creating entrepreneurs and executives in the world.
And, sadly and embarrassingly, these best and the brightest among us have been mostly abandoned by the U.S. banking system when it comes to funding their growth initiatives.
Well, for starters the very unfortunate “derivatives-focus” of the U.S. financial markets this past decade has resulted in an entire banking industry generation to simply not even know how to do the hard diligence work of equity and fundamentals-based investing in growth businesses.
Add to this mix banking industry consolidation causing smaller capital investments to just “not be worth the trouble” for way too big a swath of the industry and the sad reality is that banks are really no longer meaningful funding players in the small business communities in which they allegedly live.
Liberatingly, crowdfunding will allow smaller companies to simply bypass and disintermediate these broken financial sources altogether.
And to do so for such simple and each to grasp purposes as inventory and receivables financing, capital expenditures with shorter payback periods, and my favorite, for the kind of high ROI, Internet-based marketing and customer acquisition campaigns about which traditional bank underwriters wouldn’t even know the right questions to ask.
The result will be that American small business will innovate and grow faster, and oh yes have the wherewithal to create the jobs and pay the taxes that fuel our whole way of life.
And smaller investors will be winners too.
No longer will the best entrepreneurs with the best ideas and growth prospects only be available to be backed by the "1%" - the cadre of institutional and super high net worth individual investors that under current rules have a veritable monopoly on entrepreneurial investing.
With fully functioning crowdfunding markets, this high return world will be open to anyone with a few hundred dollars, an appetite for intelligent risk-taking, and an abiding belief in the power of entrepreneurship and innovation to improve our world for the better.
And as a bonus, won’t it be nice for the media to cover just a little more about entrepreneurial and fundamental investment successes and a lot less of the tawdry, “give them bread and circus” spectacle of our state-sponsored lottery cabals?
And points to who the losers will be in this soon to come crowd funding world.
Let’s start with the aforementioned banks and other questionably value-adding financial intermediaries (think travel agents in the late 1990s).
But really, all those trapped in cynical, pessimistic and legacy – based financial thinking and being will find these democratized and re-vitalized markets quite threatening.
Yes, financial market change for the far better is coming.
Not as fast as any of us hope, but coming inevitably nevertheless.
So let's thank those few brave souls that have made it happen.
They are the new drum majors for justice and progress on whose shoulders we will all stand.
And oh, yes, profit from too.
Written by Jay Turo on Monday, March 26, 2012
Thursday’s incredibly exciting news that the Senate approved H.R. 3606 - the Jumpstart Our Business Startups (JOBS) bill - should hearten all that grasp the negative impact of the tangling knot of regulation on the flow of capital and the success of entrepreneurship in America today.
Included in the bill is H.R. 2930 - the Entrepreneur’s Access to Capital Act - which for the first time legalizes investment-based crowdfunding.
This is game-changing as startups and small businesses and investors can now directly (and socially) connect and transact investments in amounts as little as $500.
Correspondingly, these Internet-marketed, transacted, and settled offerings will be exempt from the Byzantine state-by-state rules that effectively prevent a regulatory compliant securities offering for anyone with less than a $100,000 legal budget.
The combined effect of these law and rules changes - once they wind themselves through the economy - will be powerfully transformative.
How much so?
Well, at a crowd-funding and private capital conference I attended last week, David Weild, former Vice Chairman of NASDAQ, and one of the most informed and respected observers of the US IPO market, made the startling observation that if the regulatory environment for IPOs and for venture capital and private equity financings was as it was in the late 1990s that the nation's joblessness rate - as opposed to being its current 8+%, would be less than 3%, or above the level of full employment.
As exciting, the amazing, networked power of crowdfunding will usher in a true golden age for U.S. startups.
What would this look like?
Well, try on for size quick and efficient financing for any project, any product, any company that a thoughtful and passionate entrepreneur, artist and/or cause-oriented activist can dream up.
And correspondingly, how about freedom for all those with the gumption to go for it to not to have to stay in a job they don't like just to pay the bills?
How about everyone - for the first time in the history of any society – living and working at the top of the hierarchy of needs and be about - and only about - self-actualization and causes larger than themselves?
In the words of the famed social scientist, Daniel Pink, how about all of us leading professional lives of full autonomy, mastery, and purpose?
Am I overstating the impact of one bill?
Am I not speaking to and about its drawbacks, especially to the dangers of fraud and to investor protection of the regulatory loosening?
No, I don't think so.
Smart people like David Weild, Vince Molinari, Michael Moe, Phil Reicherz, Dara Albright, and many, many others agree that fixing and updating for the Internet age the broken regulatory framework for our private and public equity markets is in the top 3 to 4 of all government levers to transform our economy for the better.
It is not as much a question of whether or not these law and rules changes will have this kind of impact, only of how long it will take.
So for those of you that despair for the fate of our world and of the inefficacy of our government and political systems, hold on just a little longer.
The arc of human progress is about to take a major upswing.
I can't wait.
Next week: Winners and losers in this new and coming frictionless financing and crowdfunding world.
Written by Jay Turo on Monday, March 19, 2012
Funding is the lifeblood of any small business. And it's getting tougher to find these days. Banks have become more vigilant about lending, and the vast majority of venture and angel funds are reserved for tech companies with big growth potential. The result is that far too many entrepreneurs can't start or grow their ventures—and can't provide jobs and new products and services to spur our economy.
Letting small companies sell equity stakes online would be a huge boost to those firms—like angel investing on steroids. The businesses would get access to tens of millions more potential investors, and could reach out to them at little or no cost through online outlets like Facebook. Then, if the companies won funding, they'd get a built-in base of customers who were strongly motivated to help the brand succeed.
Broadening the Base
Currently, equity-based crowd funding falls under strict Securities and Exchange Commission rules governing angel investing. That hinders broad-based online fund raising in a couple of ways.
First, the SEC largely limits private-equity investments to accredited investors—those with $1 million or more in net worth, among other tight standards. Only 35 nonaccredited investors are allowed to buy private equity in a company's offering. Second, the SEC prohibits general solicitation or advertising of the equity being sold. Unless the entrepreneurs or small-business owners have a pre-existing relationship with the angel investors, they can't try to sell them equity.
If equity-based crowd funding were legalized under the current proposal, those two limits would go away. So, entrepreneurs and small-business owners could target a much wider range of investors—say, for the sake of argument, the 51.7 million U.S. households with household income of $50,000 or above. And they could reach out to potential investors through venues like social networks that cost basically nothing and provide a global reach.
Raising money from a crowd provides other powerful advantages to companies. If a company raises crowd-funding money, it implies that there's real demand for its offerings. If not, most likely there's no demand, and an entrepreneur is spared the opportunity cost of starting the business (and then seeing it fail).
Likewise, equity-based crowd-funders are more likely to become loyal customers, as they have a vested interest in seeing the company succeed.
Crowd funding holds a big advantage for the funders, as well: It lets them participate in angel investing, whose returns have outpaced every other significant asset class over the past decade.
A Guiding Hand
Critics raise lots of objections to the idea. For one, they say companies need the help that seasoned investors can bring. But if companies need guidance, they can take on experienced managers or a board of directors. And raising money from a crowd initially doesn't preclude getting angel investments down the road. Lots of companies launch with credit cards, for instance, then make a name for themselves and catch the attention of angels and venture investors.
Further, critics argue that if companies must raise funds from a crowd, there are better ways to go about it, such as soliciting donations or raising debt capital instead of equity. But there isn't a strong enough inducement for people to donate; even if you offer them some reward, it won't be as enticing as equity. As for debt capital, there's a potential problem: It doesn't allow businesses the grace period they need to start building the company. Instead, they'd have to start paying it back right away.
Critics also see red flags for the investors. Among other things, they argue that crowdfunded companies won't be as carefully vetted or transparently documented as traditional ones. So, they say, lots of companies looking for money will be particularly risky bets for investors—if not unscrupulous operators that solicit funds and then vanish.
What's more, critics say, equity in privately held companies is nearly impossible to sell, except when the company itself is acquired. This may take many years, or never happen at all.
These concerns have merit. The answer, as with any investment, is common sense: People need to be aware that they may very well lose their money. They should do as much research as possible and protect themselves by holding a portfolio of investments, not staking everything on one company.
That approach will become more viable as more crowd-funding platforms are built and it gets simpler to track down investment targets. Those platforms will, hopefully, also introduce safeguards against fly-by-night fraudsters, such as background checks for entrepreneurs and business owners who solicit funds.
None of those concerns are a reason to block equity-based crowd funding. Whatever the risks of the approach, the economic effect it can have on America is much more profound.
This article was written by David Lavinsky, President of Growthink, and appears in today’s Wall Street Journal.
Written by Jay Turo on Monday, March 12, 2012
Jim Stengel’s powerful new book, "Grow: How Ideals Power Growth and Profit at the World’s Greatest Companies", is a clarion call for all those that ask and seek a lot from the companies they work for and the companies they buy from.
Stengel’s great credibility comes from both his remarkable career - where he rose through the ranks to become Proctor and Gamble's global marketing officer, arguably the biggest marketing job in the world with a $9 billion marketing budget responsibility for famed P&G brands like Crest, Duracell, Gillette, Pampers, and Tide.
And it comes from a study that he commissioned with the brand research firm Millward Brown where they sought to correlate a business’ financial performance with "the kind of bonds that people form with its brand."
Stengel and Millward Brown surveyed brand equity data on over 50,000 brands around the world and identified those with the highest "loyalty, or consumer bonding score."
They ended up identifying fifty brands, from Accenture, Amazon, and Apple, to Visa, Wegman's and Zappo's that scored highest on attributes like "eliciting joy,” “enabling connection,” “inspiring exploration,” “evoking pride,” and “impacting society."
With the caveat of letting skeptics dig into the numbers and methodology before getting overly excited, Stengel’s study found that between 2001 and 2011 these 50 high “human attribute brands” financially out performed the S&P 500 by 395%!
Whether these findings can be replicated or not, what certainly remains is Stengel’s inspirational message that great businesses - in their highest form – are about far more than the bottom line.
They are, for their finest and best practitioners, nothing less than noble causes that are better described in poetry than prose.
Google “immediately satisfies every curiosity,” IBM "builds a smarter planet,” Redbull "uplifts mind and body,” Moet “transforms occasions into celebrations” and Zappos' purpose is to “deliver happiness.”
Stengel’s overriding point is not that idealistically languaging and approaching your business will make you more money, but far more viscerally that doing so is the high value in and of itself toward which all organizations should strive.
And, of course, it can't be just words and platitudes.
Every day the leaders of a business are challenged to choose between their various dancing devils and their better angels.
But, to those that consistently stay on the high plane, or at the least, that catch themselves quick when they fall off...
…well they are the ones that deserve both our admiration and thanks for the inspiration they bring to our workday world.
And, if the results of Jim Stengel’s study hold up, our investment backing too.
Written by Jay Turo on Monday, March 5, 2012
This past week, I had the great fortune to attend the TED conference.
TED, for those that don't know it, is a great annual gathering of thought, business, and political leaders, of techno-optimists, and of passionate and decidedly idealist change agents from around the globe.
Past speakers at the conference have included Bill Gates, Bill Clinton, Jane Goodall, Malcolm Gladwell, Sergey Brin, educator Salman Khan, and many Nobel Prize winners.
The slogan of TED is “ideas worth spreading,” and they are probably doing a better job of it than any other organization in the world.
Over 1,000 “TED Talks” are available for free downloading on the organization's website. Amazingly given their often highly intellectual content, the talks have been translated into more than 81 languages and viewed in aggregate more than 700,000,000 times.
At this year's conference, the presenters included Peter Diamandis, Founder of the X Prize, Jim Stengel, former Head of Global Marketing for Procter & Gamble, T. Boone Pickens, and Reid Hoffman, founder of LinkedIn.
For my TED week, the story that resonated most was shared by David Kelley, founder of the legendary Palo Alto design firm IDEO, whose many design feats include the first mouse, the first PDA, and Steelcase’s Leap Chairs.
My favorite fun fact about IDEO – not only is it consistently ranked by BusinessWeek as one of the world’s 25 most innovative firms but most years it does consulting work for the other 24 companies in the top 25!
David’s talk was about creative confidence - how within all of us lies breakthrough, innovative thinking and doing that just sometimes needs a little push and inspiration to become real.
He shared the story of Doug Dietz, a General Electric engineer whose life work had been the design and manufacture of magnetic resonance imaging (MRI) machines.
David told of how Doug had been visiting a hospital when he saw a little girl crying, waiting to have her MRI done.
He asked the attending nurse if this was typical, and was shocked to hear that more than 80% of all children getting MRI scans needed to be sedated.
He went back to GE dismayed - thinking of all of the children that were having such harrowing experiences, and how the machines he had helped design and build had had a hand in causing.
Doug, under David’s guidance, reframed the problem as a creative challenge, and re-imagined the MRI experience for children - believe it or not - as a pirate adventure.
Well, how about painting the entire exam room in tropical collages, and giving the children adventurer costumes instead of pale hospital gowns?
And, in the tour de grace, the formerly foreboding MRI machine itself reimagined as a pirate ship - with the children guided to stay quiet and still as they “went aboard,” so as not to wake the pirates!
The result - sedation rates dropped from 80 to less than 10 percent, along with massive time and money savings of removing the need for anesthesia.
This is TED - entrepreneurial, creative thinking and acting to make the world a healthier, wealthier…
…and more thoughtfully designed and kindfully entertained place - one child at a time.
Written by Jay Turo on Monday, February 27, 2012
Over the last three weeks, we have shared the lessons of liquidity, of outliers, and of leadership and luck we've learned from the stories of the extraordinary returns earned by Facebook's early investors.
But what about when things don’t work out?
When our early-stage private equity investments are stuck in illiquidity?
When growth is not progressing on that hoped for outlier path?
When the invested-in company - in spite of its leaders’ best efforts - just keep getting hit over the head with big, gooping dollops of bad luck?
What - in these oh so frustrating circumstances - is an investor to do?
Well, the first place to start is to recognize - for better or for worse - that this is the typical scenario.
The vast majority of companies are not Facebook, and the vast majority of investments of course do not have multi-thousand percent returns in just a few short years.
While most investors recognize this point intellectually, emotionally it is often a far different story.
This dichotomy flows from the basic nature of most entrepreneurs and of the fundraising process.
For starters, entrepreneurs are optimists of the highest order. It is what makes them special and why we love them so.
Then, the process of raising money for a company is fundamentally a sales undertaking.
One where the entrepreneur's fundamental optimism is combined with the necessity of promoting - with great persistence and passion - the brilliant investment prospects for his or her business.
From this highly positive charged state, money is invested and expectations are set high.
And then, real life and business return.
Characterized of course more often than not by long slogs. By unforeseen obstacles. And by just plain old - fashioned bad luck.
And investors naturally become disappointed, impatient, and often angry, too.
And then, for better or for worse, they often lash out at their once so-favored entrepreneur.
These of course are not pleasant emotions, but a key purpose they can serve is to test the entrepreneurs mettle.
As investors make their frustrated voices heard, how does the entrepreneur react?
Is he or she defensive? Defiant? Pollyanna? Inaccessible?
Is he or she able to channel the frustration into positive, moving forward energy?
Into - as is often found in the highest character entrepreneurs - a deeper, abiding, and more sober commitment to make investors whole?
Quite simply, is he or she able to stand in the center of the storm and keep both feet firmly planted on the ground and eyes firmly fixed on the prize?
When the heat is turned up high, the entrepreneurs that behave like this…
…well they are the straws that truly stir the drink of our capitalistic economy.
Very rarely because of simple probabilities will they build a Facebook.
And they won't be successful with every company they lead.
But with them, the odds are well in investors' favor of doing far better than average.
So when investing times get tough - as they often do - discovering that you have backed an entrepreneur like this is the kind of luck that every investor hopes and deserves to have.
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