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Community: The Secret Sauce of a Successful Internet Startup

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This was originally posted at the Silicon Florist, but since community seems to continue to pop up as a key challenge for a lot of the startup entrepreneurs I meet… and having recently taken on helping to grow the website and community for Photosynth.com, it felt like this post was worth sharing up again.

So many internet startups are trying to launch with “community” as the core of their business, but they seem to be flying blind as to how you go about growing a solid community. I’ve been asked to consult for a number of these startups. And while this could be a bad financial decision for my consulting business, I’d rather see more successful communities than fewer. So here are the basics of what you need to know and the rest you’ll just have to learn—albeit painfully—as you do it.

I’ve had the opportunity to be a part of building two great communities, one in the real world and one in the digital. The lessons learned in each worlds has meaning in the other and each can serve as a useful example to those who are working on nurturing their own communities.

My Community Director Resume

After packing up my bags and traveling without a specific destination to Thailand in the wake of the biggest natural disaster in modern times… I found myself in the middle of a micro-community of travelers who showed up to help with the Tsunami recovery work. Like any web community, people were from everywhere in the world and came from all sorts of backgrounds.

For five months I lived with this community. First as a volunteer, then as a project leader and eventually co-leading the group. From that experience we grew a non-profit that has since created volunteer centers to aid in disaster relief in six countries around world with the help of a community of 3,000+ volunteers.

Visit www.HODR.org to learn more and perhaps you’ll join us in a disaster zone sometime soon.

Before I packed up my bags and prepared for a place I’d never been to, in a disaster zone I couldn’t begin to guess what it would be like… I created a simple web service that allowed people to name colors and helped other people to rate and review those colors. Responding to early feedback I grew the concept into allowing people to put together combinations of up to 5 colors to also share.

I was the first member, but more than 100,000 have since joined. We’ve been nominated for Best Community Site in the Webby Awards two years in a row and have also received recognition for the quality of our community from several other periodicals and awards organizations.

Visit www.COLOURlovers.com to learn more or share your thoughts on whether silver satin is better than New Medicines.

Now that you have some insight into my experience, let me share some of the things I’ve learned.

Lessons for Building Quality, Thriving Communities

It could be the community in your five-person workplace, your blog readership or even a massive web community… but the lessons still apply. Here they are:

It Is and Has Always Been

One of the most important lessons that came from my time in Thailand was how in order to grow a solid community, you needed to be in the middle of it. The man who originally set-up the volunteer center to which we all arrived was a local who lived on the other side of the island. Since he was a family man, he made the trip to and from the volunteer center back to his house every night and morning. I can understand why he would, considering he had a nice comfortable home only 30 min away… but what happened in his absence almost tore the whole thing apart.

In the early days of a community’s growth, things change very rapidly. Because the group itself has only existed a short time and the early participants often cycle through in short spurts of time… there is no institutional memory. To the person who arrived this morning, we’ve always had a rule about eating lunch at 11:30… nevermind that we only made that rule up the night before. But to that new volunteer, who will in one week be an old timer to many more new people… it has always been so.

Within a week of showing up and seeing first hand the constant transition of ideas, cultures and people in our volunteer community… there was growing dissent about the so-called leader of our group who was never around and nobody knew what exactly he did. To them, he did nothing. Since they woke up in the middle of it all, went to work all day in it and laid down to sleep in the middle of it… this guy had no idea about anything.

Having since been the leader of a volunteer group, there are many things that go on above the ground that are not glamorous or all that fun… but are needed in order for the community to continue growing. For a leader, it is a constant balance of getting his head above the crowd to deal with long-term growth things while at the same time spending time shoulder-to-shoulder with the community.

LessonLesson: You must grow within your community, especially in the early days. Later, leaders will arise who can handle some of the day-to-day things and welcome new members. But in those first few days, weeks and months… you are the welcoming committee, janitor, house mom, judge, jury and banninator. Leading from the outside will only breed dissent and resentment among the early adopters… and without their early support your community will die before it really has the chance to grow.

Set an Open Border Policy with Your Neighbors

Immigration is a complicated and touchy subject in the real world, but online you need an open door policy from the beginning… even recruiting your first members from your related blogs, forums and communities.

When I launched COLOURlovers I was part of a thriving Flash development community at the time (www.Kirupa.com) and I shared my site with some members. These initial Kirupians served as the first dual-citizenship immigrants to my new community. Not all fully converted to COLOURlovers and few gave up Kirupa for COLOURlovers, but since the sites were related—but not mutually exclusive—we were able to get things rolling with their support without negatively affecting the Kirupa community.

These early members were providing ideas to enhance the site and voicing their critical feedback about what worked and what didn’t. I took all of their words to heart and worked feverishly to create and launch enhancements that would grow the community.

LessonLesson: Leverage your involvement in related communities to first seed your community with participants. You can’t force these people to join… just extend an invitation to people who might have an interest in what you’re building and be ready to respond to their feedback.

Cities Grow from Towns and Towns from Villages

Don’t worry so much about jumping right into being a massive community. You need to take the time to be a village and figure out how everything works before you get into issues like mass transit, pollution and housing shortages. You also need to foster leaders within your village who will eventually become your city leaders.

When I went to Thailand, I handed COLOURlovers to my early members and pretty much left them unattended for the five months. Sometimes, blessings come in strange packages. For when I returned, I found a lot of interest had been built while I was gone…

But unfortunately, the community wasn’t able to rapidly grow unattended. In fact, I made a pretty huge mistake when I was building the database for the site: I set the primary key for the users table to be a small int… meaning the database broke once 255 people had registered and no more could sign up. (We were probably one of the first web 2.0 sites to launch a limited user-base private beta site… although fully unintentionally.)

LessonLesson: Hey kids! Don’t focus so much on being rich, respected doctors someday… enjoy being a kid and take to heart the lessons you learn from the bumps and scratches you get exploring your surroundings and figuring out just what your body is capable of doing.

And as your community continues to grow. Problems will arise. And, at times, even your most vocal proponent may think that…

Your Community… Honestly Sucks

This is very key feedback that you need to be willing to hear. I consistently hear bad ideas for sites where people are continually talking about how people will love the service and flock to it… but who have no early adopters. “No worries, we know the idea is great and as soon as we get it out to the masses we’ll be flooded with visitors.” More likely flooded in the sense of your first floor being under water and no ability to use your kitchen to prepare food.

LessonLesson: You need early adopters and they may not like what you’re doing. Be willing to hear this feedback and be flexible in developing your community in ways you might not have imagined.

How do you get the feedback you need? The community is waiting to give it to you. And that’s why…

Engaging the Community in Decision Making is a Must

Ebay = Ebooo!!!! When eBay made a major change to their feedback system recently, some of their sellers revolted in protest. This decision had a major impact on sellers and a lot felt it unfairly hurt them. I honestly believe there are hundreds of ways to skin a cat (not sure why anyone would) and if you bring your members into the decision making process you could end up with a better solution then you could have come up with on your own.

LessonLesson: You need to at least let them feel like their feedback is being heard. Not every idea must be put into affect and you can’t let your members totally direct what happens with your community, but you’ll have a much stronger adoption rate for new changes if the members feel like they were a part of the decision making process.

But for all the brilliant feedback of your most vocal users, don’t let the many suffer at the hands of the few. Always bear in mind that…

No One Member is More Important than the Whole

This is something I’ve experienced with COLOURlovers, but it is a lesson I learned with my non-profit community. As they grow, communities need leaders to step-up and take on extra responsibilities. In almost all situations, this will naturally happen. You begin to rely on these leaders so much, that sometimes you think the community wouldn’t survive without them.

In one of my volunteer communities, we had a small group of leaders who were growing exhausted from the hard work and irritable with new arrivals. They felt since they had been around longer that they were entitled to more than others. I struggled for a while to try and keep this group happy and spent considerable energy dealing with issues that were being created by these leaders. It was stressful because I thought that if I asked the leaders to leave I would have no ability to send my work crews out the next day. Without my leaders everything would crumble and I was sacrificing the happiness of many for the comfort of a few.

It got to a non-pass point with this small group of leaders and they left. What immediately happened in the chaos of this change? People who had been around a little while and some fairly new people stepped up and assumed the leadership roles. I could have asked those troublesome leaders to leave ages before, and the organism that is the community would have replaced the roles on their own.

LessonLesson: There is always a number 2 or number 3 who is willing and eager to take on a bigger role. Your most active and valuable members will leave and a new batch will replace them.

The system, however, is not perfect. And it’s out of control. So sometimes, despite your best efforts, the whole thing will go sideways. Know that, as with most successful communities, someday you will be facing…

Pitchforks, Lanterns and an Angry Mob

If you let problems continue to grow a few disgruntled members will become an growing mob. If you don’t respond to this mob and address their issues personally you risk the mob becoming the masses… and if the masses revolt, you’ll end up with your head on a stick in the front lawn and a burning village.

If you’ve seen the animated film A Bug’s Life, you’ll have watched this lesson unfold in the form of grasshoppers and ants. The ants spend all year doing the work for the grasshoppers to gather a feast of food.

[Spoiler Alert] What the ants learn in the end is that they outnumber the grasshoppers 50 to 1 and if they unite they can run the grasshoppers out of town and no longer need to gather food for them.

09-f9-11-02-9d-74-e3-5b-d8-41-56-c5-63-56-88-c0

A web world example of this was when HD-DVD stories started getting removed from the social media site Digg.com. Members felt their words were being moderated by Kevin Rose and the Digg staff and they didn’t take to kindly to the moderation. What erupted were hundreds if not thousands of new submissions, comments and digs for the DVD key posts.

Having been through some similar experiences as a community director I felt simultaneously sorry for Kevin and highly amused watching the shenanigans unfold. I imagined how chaotic things must have been at Digg… The image that comes to mind is the scene at the end of The Matrix series where the millions of sentinels come flowing into the bay where the humans can’t shoot them down fast enough…

digg revolutions

Kevin eventually bowed to his community and submitted a blog post on the Digg blog with the title being the hacked key string.

LessonLesson: Stay in tune with your community and be transparent with them. If Kevin would have personally responded to why they were removing the HD-DVD keys posts sooner, he might have avoided the giant headache that was a major member revolt.

But for all of the consensus-building and listening to user input, it is important to remember that there must be balance. For, despite our best efforts…

True Democracy Doesn’t Work on the Web

At least not yet. Perhaps it is that with the enhanced ability to communicate more we haven’t enhanced the way people communicate. We have the same miscommunication problems we have in real life online… but they’re hyper sped up and 10x bigger. We also have way to much negative crap flying around the web and it is hard to stay in a constructive place when trolls, spammers and others pains in the ass keep dropping by to stir things up.

Your community needs to know there is a leader and they need to know you’re reachable and engaged. You don’t have to be the most active member but you need to be around. In the early days of your community you have to be everywhere as your community culture is totally you… but as more leaders emerge and the numbers grow, the culture will become partially directed by the community.

You need to be accessible to every member of your community. They need to know where to find you and to know that if they really need you… that you’ll be there. Maybe you only respond to emails or through in site messages… but I’d go so far as to put up your IM names and phone number. For three years any member of my site could have picked up the phone and called me on my cell if they had something to tell me. (The number on the site now goes to voicemail… but I’ll still call you back if you leave me a message.)

LessonLesson: Especially in the early days members of your community need to feel like they know you and that you are reachable. They also need to know that somebody at the end of the day will make a decision in a tough situation.

Sounds difficult doesn’t it? Well, it is. It takes a great deal of effort. And that immediately leads a number of folks to consider buying their way out of a difficult situation. This, too, is a mistake, because…

Buying a Community is Expensive and Will FAIL

You can pay to grow your community, but if you substitute the organic nature of feedback and enhancement that comes from the early adopter phase… you risk not learning the early lessons that will keep your community alive later on. Also, don’t confuse the passion and genuine interest of early adopters—who tend to join organically—for the participation of people who were externally motivated to join in.

Communities, like other organisms, are constantly rebuilding themselves. New cells are built and old cells die off… your early members will leave and new ones will join up. If your community does not organically grow at all and your numbers are growing only because of your paid efforts… you have no ability to continue the growth without spending more money. This is a dangerous position to be in.

LessonLesson: Exhaust your ability to share your community with possible early adopters for free before you start paying for traffic. You could pay to get 10x more visitors to your community early on, but feedback from people who organically joined and are contributing ideas and suggestions are 100x more valuable.

Hire No Consultants. Pay No Community Directors.

It is extremely important that you are in the trenches with your community when it is first getting started. I see startups all the time spending valuable resources to hire consultants to build their community and early buzz… but what they end up with is only a shot in the arm with no long term abilities to grow without paying for more help.

The pay to grow initially is a lot like the drug user who uses to be happy. As they use drugs they need more and more to continue to feel good. If you pay to generate growth, you’ll end up needing to spend more and more to create greater and greater results. Learn to be happy without drugs and you remain in total control of your happiness.

LessonLesson: If you spend the late and long hours in the early days of your community, pounding the keys, networking, promoting and sharing your community you’ll learn very valuable skills that will help your community grow in the future without needing to pay for outside services. Those outside services can be useful down the road when you use them to fill gaps in your growth strategies… and having learned the lessons early on you’ll better know how to direct an outside consultant to help you.

Final Lesson

You can’t buy lessons. Part of what makes you remember the important lessons is how much it hurts to learn them. Don’t be afraid to get a few bumps and bruises. Good luck and grow well.

Starting Up in an Economic Downturn

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Startup in Downturn
I’m no economist, but even I can tell that the world’s finances aren’t in their best shape. Tech blogs are writing about layoffs in startups everywhere, investment advisors are urging their clients to knuckle down for a long, economic winter and news analysts are calling doom and gloom at every turn. So it’s probably a bad time to start your web startup right? Wrong. This may very well be the best time.

You remember that line in the old Frank Sinatra song New York New York? “If I can make it there, I’ll make it anywhere” - well it’s kind of the same in business. If you can get a business going now in the midst of the crappiest economic forecast in possibly decades, then you know you have what it takes to keep it going.

Of course if your plan is to get a load of funding, have a lazy business plan or to shoot for a very expensive and distant point of profitability - then this may not be the time for your startup. You see, tough times are the province of the bootstrapper - the guy or gal who builds a business on a shoe string, using only what is available and counts pennies like they’re going out of fashion.

Constraints Breed Innovation

One of my favourite startups of recent years is 37Signals. In their Getting Real book, the team declares that it’s good to embrace constraints, that they drive innovation and force focus. Well having no money is pretty much the ultimate constraint a startup can be under, and for most bootstrappers that’s not far from how they have to operate.

Having nothing forces you to figure out a way to bring in some income - any income - and to do so fast. It forces you to work out how to do things in the cheapest way possible. It forces you to really, truly evaluate what is necessary in your business and what is simply deadweight.

My Own Experience

Envato
When my wife and I cofounded Envato, we did so while working a freelance business where invoices always got paid late and cash flow was erratic. We started out with some modest savings in the bank but by the time our first site was up, we were thirty thousand in debt, I had worked for four months without a day off, lived for two of those months with my in-laws to save money and still there was no sign of a reprieve.

Because we spent everything we had, and then some, on building our website we were forced into a series of practices that made our business ultimately viable. We had no revenue, so none of the three founders could quit our jobs - we just started working one in the day, and one in the evening. We had no money so we couldn’t hire anyone beyond our one valiantly underpaid freelance developer, so every job had to be done by one of us - regardless of whether we knew how to do it. We had no advertising budget so we had to embark on a series of guerilla marketing strategies trading time and ingenuity for money. We had no content on the site and no users, so we made a whole heap ourselves and invited, cajoled, persuaded and begged people to test it out.

In short we saved and scrimped, worked in odd hours and off hours, used our lack of income as a motivator to find revenue quickly and basically did it tough. Nobody saw a pay cheque for the first year, and even today after two and a half years when we have a staff of twenty something, I’m proud to say that all the management team and founders still get paid far less than the top authors on our sites.

The Lessons You Learn From Bootstrapping

New Startup Venture
I remember my father often saying that he’d been too soft on us when we were growing up, that hardship was actually a kindness. Happily his idea of an easy childhood involved living in one of the most dangerous countries in the world, persuading me to read an encyclopedia when I complained of boredom and waking me up at 5:30 every morning to practice playing the piano. So I flatter myself to think that we all turned out pretty OK.

What hardship will do for your child, it will also do for your business. You’ll learn that you need ingenuity to survive, that you need to be careful with how you spend and knowledgeable about where it’s going. You’ll learn that slow growth builds firmer foundations, that resilience and patience are powerful traits in business and that perseverance gets results.

And when the big downturn takes a u-turn - which it inevitably will, the lessons you learned in bootstrapping will stand you in good stead while others get cozy.

So should you attempt to make a go of it now, during a possible recession? Yes, but be prepared to work hard, have a fallback income source, and most importantly, don’t spend what you haven’t got. When you make it out the other side, you’ll be better for the experience.
 

Collis Ta’eed is an internet astronaut and co-founder of Envato, a startup in the business of building sites and services that benefit creatives.
Follow Collis on twitter: @collis.

Editor’s Notes

I’m doubly glad Collis was able to share this article with us. First, the topic of startups in the current economic environment has come up quite a bit lately and I’ve wanted to weigh in. Secondly, Collis is a truly inspiring internet astronaut. He and his wife have successfully built an awesome network of sites. I’m honored to have him share some thoughts on this blog.

My thoughts: Great companies find solutions to problems or create new and better ways of doing things. We’re currently living in a world filled with major problems and we’ve obviously been doing things in less than great ways if we ended up in this mess… In difficult times filled with problems, there are even more opportunities to create something better or that solves any one of the many problems that are out there. Be creative. Do good. Bootstrap.

The Perfect Office Space: Your Neighborhood Coffee Shop

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Neighboorhood Office - Coffee Shop

I guest posted this over at Neighborhood Notes, but thought with the current financial climate it was worth cross posting over here. (Use your local coffee shops.  Do not spend money on an office for your startup.)

With the economy where it’s at… saving some money is a good idea. While financial advisers often tell you to avoid expensive coffee shops when on a budget, if you can save on the major expense of paying for office space by leveraging your local coffee shop… Grab your laptop, order a drip coffee and move your office into your neighborhood coffee shop… just try and stay away from the pastries.

I’ve been what they call down south in the valley a “New Bedouin,” working primarily from a home office and a number of coffee shops around town for a couple years now. I can’t do my writing at home with all my normal distractions so I leave the nest to find comfort in a cafe with a cup of coffee. I know the shops that have food, quite space for meetings and the ones that are open late. While Starbucks are useful because of their mass number of locations and consistently decent coffee, they still charge for wireless access and I’d prefer to support my local independent shops. Overtime I’ve narrowed down my favorite places to work by rating them on the following criteria:  Hours, Food, Space, Table Size, Coffee Quality, Parking, Internet, Bathrooms.

Hours

I’m a late owl.  I can’t tell you how early a shop opens, but I’ve been there when they all close.  As I like to work late into the evening, I give extra points to the place that stay open late.  While around 7-9 is the average, there are some places around town that are open super late.

Food

Very few coffee shops also serve good food and needing to eat is probably one of the main reasons I leave a place.  Only one from my list of favorites below actually serves any sort of substantial meals… I can only eat so many muffins and scones before I fall into a diabetic coma.

Space

A bad environment can ruin my working mood or it can motivate it.  I like open and bright space, but still enjoy my own table space that provides me with a little island to work on.  Although I recognize that making coffee isn’t the quietest process and people will be having engaged conversations, but I prefer to work from spaces that also provide some quite space or are quite in general.

Table Size

I tend to need my space.  I have my laptop, my moleskin notebook and usually a book.  I like being able to spread out and work freely without worrying about knocking stuff off my table or encroaching on somebody elses space.

Coffee Quality

I drink my coffee black so I especially notice when it isn’t very good.  Lucky for me, I live in a city with tons of great quality coffee all around.  I wouldn’t call myself a coffee afficianado, but if I wanted burnt tasting coffee I’d stop at a 7-11.

Parking

Having to remember to plug the meter is no fun at all… especially since I know I’m going to get focused on work and forget.  Finding a great coffee shop with a large open parking lot is pretty hard to find, but any place with free street parking gets high marks.  Sometimes free street parking can be found just a few blocks from your favorite places, so do a little block cruising to find out.

Internet

I want it free and I want it fast.  Having to pay for internet at a coffee shop is a huge turn-off for me.  I have a mobile access card anyway, but I’d prefer to know a place has reliable high-speed access.  Sometimes speeds can get a little crippled when other patrons are catching up on their torrent downloads…

Bathrooms

I tend to drink a lot of coffee while I work and I often get so focused on work that I push the limits of what my bladder can hold before I need to visit the bathroom. Coffee shops with only one bathroom and high traffic can develop a queue for the loo, so any place with more than one gets extra marks in my book. Also, important is the cleanliness of the bathrooms.

Power

Running out of battery juice can ruin a great work session… having only a few outlets can ruin a coffee shop for me.  I don’t care if they’re hidden under benches or in the ceiling, I just want to be able to plug in without running an extension cord across the whole shop.

My Favorite Portland Neighborhood Coffee Shops

NE - Albina Press

Albina Press
Photo by Coffeed

So, I rarely make it into N & NE Portland for coffee, but I was recently up north meeting with Ken and some other community focused creatives and was quite happy with the space and environment at Albina Press.  Several of us were gathered on the couches in the back room as others worked and relaxed on tables near the big bright windows up front.

Hours: Open til 8pm M-F.
Food: Standard cafe snacks and pastries.
Space: Good sized space with a great couch & lounge space in back.
Table Size: Several good sized tables to spread your work out on.
Coffee Quality: Serving the quality Stumptown coffee.
Parking: A good sized lot with street parking on surrounding streets.
Internet: Free and fast.
Bathrooms: Only one, but was clean and stocked.
Power: Several outlets.

SE - Stumptown

Stumptown Coffee
Photo by Stumptown Coffee Roasters

I’m probably a little biased as I met my fiance at this Stumptown Coffee, but this place has great quality coffee and a small but good energy filled sitting and working area.  The tables are big enough to spread out on, but the narrow room can feel a bit cramped when full of people.

Hours: Open til 7pm M-F.
Food: Standard cafe snacks and pastries.
Space: Narrow room can get packed.
Table Size: Big enough to spread your work out on. work space for two people.
Coffee Quality: Stumptown is well known for their great coffee.
Parking: Small parking lot and street parking on the neighboring streets.
Internet: Free and fast.
Bathrooms: Only one, decent shape.
Power: Several outlets.

SW - Blue Joe Coffee “Lake Oswego”

Blue Joe Coffee
Photo by Coffee Shop Journal
While I know Blue Joe Coffee this is technically outside of Portland proper, this coffee shop is just down the hill from the SW Portland neighborhood that I call home and I spend quite a bit of time here. The space is large with plenty of table space as well as couch space to lounge and read. The jimmy-buffet-all-the-time radio station they play can be a bit much sometimes, but the coffee is quality and parking is always easy to find on the 4 hour or 1 hour free streets of L.O.

Hours: Open til 9pm M-F.
Food: Croissants, quiches, muffins and scones.
Space: Huge open space. Several tables and one long table seating 8+.
Table Size: Big enough to spread your work out on. Not big enough for two.
Coffee Quality: Great. One of the better Americanos I’ve had.
Parking: Lots of easy to find 1 hour and 4 hour free street parking spots.
Internet: Free and fast.
Bathrooms: Only one, but it is always very clean and stocked.
Power: Several outlets.

NW - Urban Grind

Urban Grind
Photo by sandpuppeteer

Urban Grind seems to be the place from the twitterati crowds.  Almost every time I’m there I see somebody from the Portland tech / web scene tapping away on their laptop.  This place is one of my regular mobile offices around town and one of my favorites because of the fact that they also serve good food.  Parking downtown sucks on the meter, but if you park just a couple blocks west of 405 there is free street parking.

Hours: Open til 10:30pm M-F.
Food: Standard pastry type food as well as a menu of sandwiches and soups.
Space: Big open space. Several tables and one long table seating 8+.
Table Size: Big enough to spread your work out on. Working space for two people.
Coffee Quality: Always great quality.
Parking: Metered street parking outside, but free street parking within 3 blocks walking.
Internet: Free and fast.
Bathrooms: Two bathrooms, always stocked and clean.
Power: Several outlets.

What are your favorites?

Mobile Coffeeshop Office Fun from Improv Everywhere

For our latest mission, three agents entered a Starbucks one by one with their own giant desktop computer and CRT monitor. They bought coffee and worked at their computers as if they were laptops. One computer even had a Wi-Fi card installed, enabling our agent to surf the web.


Read more about this mission at Improv Everywhere

Co-Working: Between an Office and a Coffee Shop

For those of you that enjoy the ability to leave the house and find some nice quite place to work, but who want a bit more structure and privacy then your neighborhood cafe… there are some co-working spaces that might be a good solution for you. Check out Souk on the west side and CubeSpace on the east side.

Web, Startup and Technology News: Weekend Rebroadcast | September 6th

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IA News Rebroadcast

The most interesting startup, web, technology and generally relevant new stuff I read this week. Some of the stories are older than the past week but have resurfaced because of their quality. Most links were discovered via Ycombinator’ Hacker News. If you want to keep an eye on the startup tech world news during the week, drop by the IA feeds to see a aggregation of some of the best web, startup and technology blogs.

How To Demo Your Startup (Part Two)

Last week, I camped out at Sequoia Capital on Sand Hill Road and did rehearsals with most of the 50 companies that are presenting–in fact, launching–new products at the TechCrunch50 event next week. These 50 represent the top 5% of the companies that applied to our demo-style event. Truth be told, the top 150 companies were all qualified to be on stage–if only we could have a five day event with two tracks.

- Read the whole story at TechCrunch

Drop IE6 Support — Give People a Reason to Upgrade

Why do people still use IE6? This is a browser that’s been released in August 2001 — that’s over 7 years ago. It’s old, it’s got hundreds of compatibility issues, it’s not particularly secure and neither does it have many features we come to rely on today in modern browsers. It doesn’t even have tabs. But statistics show, that a sizable chunk of the internet is still surfing on IE6. There are a few reasons why…

- Read the whole story at The Usability Post

VC Part 2: F***-off Money

Which startup odds do you prefer? 50% odds of making $1 million or 20% odds of making $20 million. Assume the work involved is the same, and that in both cases that the alternative is a complete loss. If you’re economically rational, you’ll compute the “expected value” of each investment.

- Read the whole story at Some French Guy

The Importance of the Side Project

…this irrational love of development can be worn down by all of the institutional BS that we have to deal with, and it can be rather, how you say, “soul-crushing.” So, how to rekindle the love of coding and avoid the burnout that is the otherwise inevitable consequence of the software engineering process? Start a side project!

- Read the whole story at Ekinoderm

Maximizing Profits Doesn’t Mean Screwing Your Customers

A few years back, we wrote a post debunking the ridiculous notion spread by some that Craigslist was somehow “anti-capitalist” or not “maximizing profits” because it actually offered most of its services for free. As we noted, much of Craigslist’s long-term success was because of these decisions — which in all likelihood did increase overall profits for the company in the long run by building up further trust in the company. It may not have maximized profits for this quarter, but it most likely was doing a pretty good job in generating profits for the long haul by keeping customers happy, rather than trying to squeeze them for every immediate dime (and who was just saying that Silicon Valley doesn’t have a long term view?)

- Read the whole story at TechDirt

Usability Tip: Use Verbs as Labels on Buttons

We’re all familiar with the “OK” and “Cancel” buttons you get on dialog boxes. Simple labels that ask us whether we agree or disagree to the next action the application wants to take. The interesting thing is that using exclamations like “OK” and “No” isn’t all that usable. Instead, you should use verbs. Let me illustrate this with an example.

- Read the whole story at The Usability Post

DreamIt Incubator Holds Funding Day To Commemorate First Graduating Class

Today marks DreamIt Ventures’ first Funding Day, during which the new startup incubator will introduce a dozen new companies to a collection of founders and venture capitalists. DreamIt is a program in the same vein as Y Combinator and TechStars, offering startups seed funding, guidance, and connections in exchange for equity. We’ve written brief introductions to each of the startups…

- Read the whole story at TechCrunch

The meek shall inherit the web

Computing: In the future, most new internet users will be in developing countries and will use mobile phones. Expect a wave of innovation…

- Read the whole story at the Economist

Google: 10 years from now

In the next day or so you’ll probably find yourself hearing a lot about how Google started 10 years ago, and, well, isn’t it remarkable that a company that started in a garage has survived that long and become a household name? I’m not going to do that. Hell, that’s what Wikipedia and the official Google history are for… I’m more interested in Google’s next 10 years – because that could define what life is like in 2018 and beyond.

- Read the whole story at the Guardian

The First Bill Gates + Jerry Seinfeld Microsoft Ad Makes No Sense

Besides the slick and probably expensive editing designed to make Jerry Seinfeld look like the more awkward of the pair, there’s not a whole lot of special effects in this clip. In fact, there’s not really a whole lot of anything, including laughs, information or pimping of Vista. It’s kinda like Seinfeld’s really long, really rambling Superman ad for Amex he did a few years back. We hope the rest of the campaign is better.

- Read the whole story at Gizmodo

How to recognise a good programmer

How do you recognise good programmers if you’re a business guy?… It’s not as easy as it sounds. CV experience is only of limited use here, because great programmers don’t always have the “official” experience to demonstrate that they’re great. In fact, a lot of that CV experience can be misleading. Yet there are a number of subtle cues that you can get, even from the CV, to figure out whether someone’s a great programmer.

- Read the whole story at inter-sections

10 inspiring admin interfaces

Clients pay big bucks for sexy frontend designs but don’t want to be lost in ugly and unusable backends. Historically, many an administration interface had awful table-based layouts with complicated menus and unreadable data. It is time to reverse the trend: UX goes beyond frontend, and if we can code beautiful frontends, we should build beautiful backends too, all the more as backend designs are reusable. After Wordpress, Basecamp and the likes, here is an inspiring list of 10 sexy, though probably less-known, backend designs.

- Read the whole story at Nemetral

The myth of launch PR

New startups can spend hundreds of thousands of dollars racing after a dream: a giant splash on launch. Just imagine… a big spread in Time Magazine, a feature on all the relevant blogs, a glowing review in the Book Review. Get this part right and everything else takes care of itself. And yet…

- Read the whole story at Seth Godin’s Blog

sustaining a hacker lifestyle

So how does one sustain a balanced hacker lifestyle yielding successful (by your own metrics) side projects that don’t devastatingly detract from your work and your life (if you have / want one :))? Well, I haven’t quite figured that out, but I do havhttp://blog.logicalrand.com/2008/9/5/sustaining-a-hacker-lifestylee some lessons learned / takeaways from failed attempts.

- Read the whole story at logical.rand

The Art of Raising Venture Capital

These videos are my recent attempt to explain the art of raising venture capital. They are part of the Montgomery & Hansen online learning site and conference. For example, to learn about financing agreements and the term-sheet process…

- Read the whole story at How to Change the World

3 Ways to Prevent Startup Death

My most memorable Oklahoma wedding was eight years ago:
Just seconds before the celebration of love, passion, hard work, and hope, a gentleman stepped up and confessed his relationship with the groom. I was just as surprised as the lady in white was at this revelation. So, what happened? And more importantly, how can you prevent this from happening to your startup?

- Read the whole story at Under the Radar Blog

Letter From A Vc: Seeking Feedback

Two things: first, I am a “vulture” capitalist. Second, I’m writing using one of my portfolio company’s accounts. I’d like to reach out to you because you are the reason we thrive. You’ve already got the odds stacked against you, and the last thing you need is a bully VC with confusing, illogical screening processes…

- Read the whole story at The Funded

How Chrome Changed the Web Overnight

Nobody at Webmonkey expected to wake up and experience an internet game change today, but with Google’s semi-accidental launch of the Chrome browser Sunday, that’s exactly what we got. We barely had enough time to clean up the coffee spittle on our monitors….

- Read the whole story at webmonkey

The 4 1/2 Day Workweek

When we were just 3 people trying to get Wufoo launched on a limited budget and timeframe, we felt that it was necessary for us to work 7 days a week and expect 80+ hours out of each member on the team. Obviously, a grueling schedule like that can’t last forever and now that we’re a 6 man operation that’s expanded outside of the passion of the founders, it’s been necessary for us to find a balance between productivity and happiness. The following is what we’ve learned after spending some time experimenting with your typical 5 day workweeks and the much hyped 4 day workweeks.

- Read the whole story at Particletree

Is Y Combinator the University of Internet Startups?

There was interesting talk about venture capitalists and their role in Internet startups last week. It started with a post by John Casasanta of Taptaptap simply entitled “Fuck the VCs.” Responses from Hacker News and John Furrier, among others, led to a lot of heated debate over the role and significance of venture capital… Although I clearly cannot provide justice to the topic of venture capital in one or even a thousand articles, I did want to talk about the changing face of venture capital for Internet startups.

- Read the whole story at Mashable

Ten leading platforms for creating online communities

Creating online communities of customers and workers has been one of the hotter topics in business and technology this year. Whether you’re on the business side, in IT, or are just trying to build virtual teams around shared goals, online communities are rapidly becoming a popular way to organize people and accomplish work in a highly collaborative manner.

- Read the whole story at ZDnet

7 Things I Did Right with My Start-up That Still Make Me Smile

Last week I wrote about the 7 things I did wrong with my start-up. This week, I hash out what I think I got right.

- Read the whole story at LendingClub

Google reigns as world’s most powerful 10-year-old

When Larry Page and Sergey Brin founded Google Inc. on Sept. 7, 1998, they had little more than their ingenuity, four computers and an investor’s $100,000 bet on their belief that an Internet search engine could change the world. It sounded preposterous 10 years ago, but look now: Google draws upon a gargantuan computer network, nearly 20,000 employees and a $150 billion market value to redefine media, marketing and technology.

- Read the whole story at The Industry Standard

Is releasing early ever a bad idea?

The current advice for a web start up seems to be: Get something up and running ASAP, listen to your customers, iterate, profit. However, if you are making games an early release it usually death as a game that is 90% complete is often on 10% fun. So, if your startup is games based should you still release early?

- Read the whole story at Hacker News

 
 
Enjoy your weekend reading and I’ll see you next week for another smattering of useful or entertaining links.
Launch Well.
-D

Portland Start-up Index | August 2008

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While I don’t think their metrics are super accurate (COLOURlovers is losing traction according to them, but showing growth on all of our internal stats)… it is fun to see what sites are growing in the silicon forest.

The index ranks Portland area tech start-ups based on an average of Alexa and Compete traffic rankings. Criteria and other details are available on the Start-up Index page.

Top 25 Sites from the Portland Startup Index

1. AboutUs

2. MetaFilter

3. Kongregate

4. Discogs

5. Digital Trends

6. COLOURlovers

7. Frappr

8. Jive Software

9. Clicky

10. Splashcast

11. MyOpenID

12. Platial

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