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Clinton and Friedman: Mike Faith
Networking In Savannah: Brian Styles
Golf at the Inc. 500: Gary Pudles
Getting to the Conference: Gary Pudles
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Archives › March 2006
March 31, 2006
Inc. 500 2006 in Savannah
Clinton and Friedman: Mike Faith
Posted by Inc. 500 CEO at 7:04 PM
I was really looking forward to the Thomas Friedman talk –- the controversy that surrounds him – the wolf in sheep’s clothing criticisms leveled at him –- a liberal with a conservative message? This was something I needed to hear first hand. But I have to say, it fell flat. The man can write, he can write brilliantly, but as an orator, especially one in such esteemed company, he’s seemed out of his depth. I’ll stick to his column and look out for the sequel to The World is Flat. Maybe it’s my personal style, I have the attention span of a gnat –- I spoke to plenty of people that loved what he had to say.
It’s not everyday you get to hear a President speak, live. But today was the day for me. Though I wouldn’t count myself among the ranks of the democratic party, I can’t fail to be moved by the pure charisma that exudes from this man when he talks. President Bill Clinton rose to the top of the pile. The biggest, best, most fiercely contested pile in the world. Heartfelt thanks to Inc for
lining up such a top notch speaker. I managed to get a seat close the the front. At the end President Clinton came through to shake hands. I was a row behind. He shook hands with the front row. He so easily could have blanked me. But as he passed he leaned over to the second row and shook my hand too. That was impressive. Thanks Inc.!
I’d write more, but I’m off to see if I can get a seat with Steve Lipscomb at the Inc Private Poker Tournament! Does a straight beat a flush Steve? Wish me and the headsets team luck…
Mike Faith is CEO of Headsets.com.
*Inc. 500 CEOs will be blogging throughout the conference. Check back here to read what they're saying.*
Inc. 500 2006 in Savannah
Opening Sessions: Mike Faith
Posted by Inc. 500 CEO at 2:27 PM
I listened to Carl Schramm from the Kauffman Foundation in Kansas City talk about how entrepreneurship is in many ways what actually defines us as Americans -– and that it should be our greatest export. I couldn’t help but wonder as I looked around the room and saw the incredibly diverse and multicultural audience, how differently I saw it.
America, through its ability to offer freedom and opportunity, is a net attractor of entrepreneurial genius, not an exporter… I couldn’t help think that Carl was just wishing it were the other way round… Maybe I’ll get a chance to talk face to face with him later and discuss it.
Scott Cook’s talk on the building a ‘Culture of Innovation’ struck a chord with me. The question "how will we respond when the growth slows?” is something that I’ve pondered long and hard over the years. So far, for us at Headsets.com, we haven’t really had to worry about it –- growth has been outstanding as it has for everyone here at the conference. But we all know that growth comes and goes -– you only have to look at how few inductees into the hall of fame there are for 5 years on the Inc500 list. What we do when the growth slows isn’t something we have to wait to find out. Note to self: Make plans now!
Continue reading "Opening Sessions: Mike Faith"
Inc. 500 2006 in Savannah
Networking In Savannah: Brian Styles
Posted by Inc. 500 CEO at 2:22 PM
Thursday night's Governor's Reception was a well prepared event, set in the courtyard behind the Westin Resort overlooking the Savannah River.
I met a couple of fellow entrepreneurs early, including Michael Wilmoth, COO of Advanced Patient Advocacy, and Frank Edens, CEO of USlegalforms.com.
With so many attendees at the reception, I was curious whether I'd run into anyone else in the software industry, especially a company in ScriptLogic's space of desktop, server and Active Directory management solutions. Sure enough, I met Ray Wright, VP of SMB Global Marketing at Computer Associates.
It's always refreshing to meet a representative of such a large public software company whose focus is the SMB space, which is also a focus for ScriptLogic's desktop management product.
After the reception, a number of us took the water ferry across the river to experience the Savannah nightlife. After dinner, we played billiards at The Warehouse. Later at the Bar Bar, it was evident that those of us in executive management can still teach anyone who dares to challenge us at foosball a lesson they won't soon forget.
Brian Styles is CTO and founder of ScriptLogic.
*Inc. 500 CEOs will be blogging throughout the conference. Check back here to read what they're saying.*
Inc. 500 2006 in Savannah
Golf at the Inc. 500: Gary Pudles
Posted by Inc. 500 CEO at 2:08 PM
Thursday was the golf tournament and opening reception. These are two of my favorite events of the Inc. 500 conference. The golf tournament is fun because you get to spend some quality time with new people and learn about them and their businesses in a very relaxed way. And of course the opening reception is when you get your first real opportunity for networking.
This year's golf tournament was excellent. We played on Savannah Harbor, the same course that will be used by the pros in three weeks. I was teamed up with Skip Whittaker, the Executive VP from Windmill International and serial entrepreneur, Don Schoen of MediNotes (a fellow Ernst & Young honoree). Although we had never met before, the three of us had an incredible time playing and getting to know each other. Don was the best player in our group, while Skip and I kept things close by hitting an occasion shot that kept us in the game and providing comic relief.
The defining moment for us happened on the last hole. After an incredible tee shot by Don, we took our approach to the green. Don hit a beautiful shot slightly off the green to within 10 feet of the hole. I hit one of my best shots of the game and landed 20 feet from the hole but on the green. By this point Skip and I let Don make the call on which balls to hit because he was the best golfer in our group.
After thinking about the shot alternatives, Don turned to us and said, "We can get closer to the hole if we shoot from off the green, but we might be able to make the put if we shoot from the spot on the green." "However", he continued, "if we miss the long putt we could be in real trouble." It didn't take me even a second to remind both of my partners that we didn't get to the Inc. 500 conference by not "going for it." So that is what we did.
Continue reading "Golf at the Inc. 500: Gary Pudles"
Inc. 500 2006 in Savannah
Opening Day: Mike Faith
Posted by Inc. 500 CEO at 2:01 PM
Thursday Night -
What an Incredible (Inc-redible? Geddit?) day. I’m shattered. I spent the morning touring Savannah – there were people I recognized from the conference everywhere I went -- from last year and from this. I think we’ve made an impact on the town!
The reception party was entertaining, Norm Brodsky –- one of my favorite columnists at Inc. was as enigmatic as ever. What’s nice about hearing Norm speak, is that you can tell –- he’s been there, he’s done it. He’s not some wet-behind-the-ears, straight-out-of-Wharton MBA telling
you what he just read in Good to Great. I don’t always agree with him Norm, but I cherish his ability to say what he thinks, and not to mince his words around it.
I’m here with one of my Headsets.com managers, Rick Mills, who was thrilled to bump into Bo Burlingham after reading his books. They talked up a storm –- you know, Inc. is delivers different things for everyone, of course there’s the celebratory aspect of it -– the fun, but for me it’s all about the people you bump into strolling round the halls, and the learning they offer. That’s what’s going to keep me coming back year after year.
Continue reading "Opening Day: Mike Faith"
Inc. 500 2006 in Savannah
First Impressions: Mike Faith
Posted by Inc. 500 CEO at 8:20 AM
Wow, I can hardly believe that it’s been a year since Headsets.com was last celebrating at the Inc. 500 conference.
We’ve just arrived at the conference center, the sounds of the noisy ferry across the river still ringing in our ears. It’s early, and it’s quiet –- and cooler than I thought Savannah would be this time of year. One of the first people we run into is an icon and a role model for us all, Ping Fu, of Geomagic in North Carolina. I have her session on ‘Realizing the American Dream’ highlighted in my conference guide as a must see. Her story is amazing, and anyone who hasn’t read it, should take the time. As an immigrant myself, (although it’s tough to compare growing up in England with the horrors she faced as a child living through the Chinese Cultural Revolution) I find her messages truly inspirational. It was great to get a few pictures of Ping wearing our latest Plantronics Headset, she’s incredibly gracious too it seems!
I took a few minutes to visit the EO stand, its good to see them here again -– I know that they are good supporters of Inc., and from my own experiences in YEO, I know that they deliver a lot to the business community. I count them among the few organizations that have been instrumental in Headsets.com being what it is today.
I’m looking forward to meeting the many friends we made last year in Tucson, hearing their stories, their challenges and their successes. And that’s what I’m off to do now.
Mike Faith is CEO of Headsets.com.
*Inc. 500 CEOs will be blogging throughout the conference. Check back here to read what they're saying.*
Inc. 500 2006 in Savannah
Getting to the Conference: Gary Pudles
Posted by Inc. 500 CEO at 8:16 AM
One of the great things about the Inc. 500 conference is the friendships you build with other Inc. 500 CEOs and executives. This week I was at a call center industry conference in Orlando Florida with John Ratliff, CEO of Inc. 500 member Appletree Answering Service (also one of my biggest competitors). Earlier this year when we realized that we had back to back conferences together John offered to fly me to Savannah for the Inc. 500 conference in his 4 seat Columbia private airplane. Then on Tuesday morning John and I realized that we had a whole day between conferences so John suggested we make the trip to this year's Inc. conference a bit of an adventure. Sometimes it's so much fun being an Inc. 500 CEO.
I had never been on a private airplane before and was quite nervous. The smallest plane I had been on was an 18 seater and then I flew in the back. So getting into a four seater and sitting next to the pilot was a totally new experience.
Our adventure started with a quick trip down to the Florida Keys for lunch (a place I had never visited before). The weather was perfect and the sky had very few clouds. We made the trip in less than 2 hours and their were almost no bumps along the way. As I sat at the restaurant overlooking the Gulf of Mexico, I was in awe that I could wake up in the morning in Orlando and then lunch in the "Keys".
Continue reading "Getting to the Conference: Gary Pudles"
Inc. 500 2006 in Savannah
Live from the 24th Annual Inc. 500 Conference
Posted by Laura Rich at 6:00 AM
Savannah is warm, historic, and genteel. It's the sort of place where the leaders of fast-growing businesses might like to go for a break from the break-neck pace of their companies. But don't let Savannah's slow-seeming charm fool you. Running along the edge of this town is a river whose depth offers the capacity for tanker ships carrying the world's cargo. The river's currents are constant and rough. Alongside all this activity, Inc. 500 companies have gathered this weekend for the 24th annual Inc. 500 conference to swap stories, hear from speakers like Bill Clinton, Thomas L. Friedman, and Inc. Entrepreneur of the Year Ping Fu--and have some fun, too. It's hardly a sleepy event.
But don't let me convince you. This year, Inc. 500 CEOs will be weighing in themselves throughout the course of the event with updates on what they've learned and how it's all going. Check back throughout the day on Friday and Saturday for their blogs. You just might learn something, too.
March 29, 2006
China
Lessons from China
Posted by Adam Hanft at 9:11 AM
I'm just back from China, a provocative place to watch the reports on the demonstrations up and down France. The streets were filled with young and old, equally possessed by the notion that a stultifying, dead-end job is as sacred as liberty, equality and fraternity and that the future can be limited to fromage. (I wonder if taking off a day to burn a Peugot counts against one's vacation? I wonder if this is the only way the French auto industry can actually grow?)
Meanwhile, while France curiously clings to what has become a global caricature, China is in a fury of entrepreneurship. It's seen what a guaranteed job can do to economic growth, personal motivation and yes, a feeling of reward and accomplishment. And the Chinese want no part of it.
I have my doubts about Tom Friedman's hypothesis-by-anecdote reporting style, but I've got to tell you about a meeting I had with a start-up Internet company that was planning a move to expanded quarters. It's not far from here, the young CEO told me. We'll move over a weekend. It's fast. Everyone takes their own desk.
Continue reading "Lessons from China"
March 28, 2006
The Return of Blank-Check Companies
Posted by Mike Hofman at 2:13 PM
The Times Dealbook blog notes today that shares of the entity that announced plans to buy Jamba Juice, the Inc. 500 smoothie chain, have risen dramatically. The Dealbook also says that there has been a little boomlet of deals involving blank-check companies. These are corporate shells that raise money through an initial public offering of stock on the premise that they will then acquire an operating business.
Blank-check companies were once seen as fly-by-night, according to the Denver Post, but abuses that occurred 15 or 20 years ago have been cleaned up by state and federal restrictions, the paper reports.
The Apprentice
The Apprentice - Week 5
Posted by Nadine Heintz at 10:03 AM
I must admit that I liked Lenny's castaway idea at first. I thought ads that told some sort of story were usually a hit, but maybe that was a fad. Or maybe the commercial was just badly executed. I was picturing a Tom Hanks-type castaway on a nice wooden raft in the middle of a big ocean. Instead, Gold Rush gave us a guy covered in seaweed on a raft right next to a dock. That made no sense! The commercial looked amateurish compared to Synergy's polished footage. And Tarek's refusal to use a voice over instead of text was the final blow. Lenny was right to put up a fight over that decision.
Danny was a terrible leader. I wanted to smack some sense into him in the beginning of the episode. There was no reason for his obnoxious, high-strung behavior. That set a bad tone for the rest of the task. Danny was a complete control freak who couldn't trust his teammates with anything. The only person he listened to was Tarek, and that wound up being a huge mistake. Tarek is just as much of a control freak as Danny. He seemed insulted when Lenny suggested doing away with the text on the commercial. Get over yourself! In a previous season, the same thing...too much text on an ad...led to another team's downfall. I guess Mr. Mensa didn't do his homework before coming on the show.
Andrea's behavior during last night's episode made me like her even less. She was clearly looking to make Roxanne a scapegoat to pay her back for her negative comments in the last boardroom. How manipulative and petty. I'm glad Andrea's evil plan didn't work. I'll admit that Roxanne did seem shaky at first, but she eventually came into her own, despite Andrea's domineering behavior. I'm glad Roxanne stood up to Andrea and stuck with the opening black and white scene, which really grabbed the attention of the cruise line executives. Maybe that will teach Andrea some humility, but I doubt it.
I was disappointed in Lee last night. I like him, but I'm starting to think Danny and Tarek have a point. I can't remember Lee making any great contributions in the past few weeks. He should probably volunteer to be project manager next week to prove that he's not merely a politician. That said, I don't think Lee deserved to be in the boardroom. Danny should have brought in Tarek and Lenny. He totally bungled that decision. Then he tried to cover his tracks when Caroline and the Donald called him on it, which only made him seem like a liar. Even though Lenny should have been in the boardroom since he came up with the castaway idea, I don't think he deserved to be fired. The idea could have worked if it was executed properly. A voice over, which Lenny suggested, would have helped out a lot. At least Lenny has big ideas. And he's also toned down his personality. I didn't hear him utter one curse word last night.
I was very interested to see how Synergy would perform without Brent. Although they won, the chemistry was still pretty terrible. I blame Andrea. She's a very negative person who always seems to have it out for somebody. She's just as disruptive as Brent. I'm curious to see how Synergy will do next week. Apparently the task involves creating a jingle for a chicken joint. That will require a lot of collaboration, which is not one of Andrea's strong points. Maybe the task will finally push her over the edge. I can only hope!
March 24, 2006
Apple Turns 30
Posted by Mike Hofman at 4:50 PM
This Associated Press article takes a nice look at where Apple is going, and where it's been.
Reporter May Wong writes: "Apple's journey began in 1976 when two college dropouts — [Steve] Jobs, a marketing whiz, and his friend Steve Wozniak, an engineering genius — filed partnership papers on April Fools' Day, their eyes set on building and selling personal computers. Another friend, Ron Wayne, opted out of the risky venture within two weeks.
"Their first product was a build-it-yourself computer kit. A year later, in 1977, the Apple II microcomputer was born. It was not the first personal computer but it was the most successful — a hit not just among engineers, but home users, too. Many credit the Apple II as the genesis of the personal computer revolution."
Inc. trivia buffs will know that an article on the company appeared in the very first issue of Inc. in 1979.
Are guest workers really necessary?
Posted by Mike Hofman at 4:43 PM
In an provocative and contrarian op-ed in today's Washington Post, Robert J. Samuelson challenges the idea that American industry really needs access to immigrant labor, including illegals, in order to thrive.
"What we have now -- and would with guest workers -- is a conscious policy of creating poverty in the United States while relieving it in Mexico," Samuelson writes. "By and large, this is a bad bargain for the United States. It stresses local schools, hospitals and housing; it feeds social tensions (witness the Minutemen). To be sure, some Americans get cheap housecleaning or landscaping services. But if more mowed their own lawns or did their own laundry, it wouldn't be a tragedy." (To read the article, click here.)
What do you think? Is a guest worker program a good idea? And does your industry employ a significant number of people who are in the country illegally?
American Inventor
Shattered Dreams
Posted by Athena Schindelheim at 4:37 PM
My elementary school participated in Invent America!, a program created to encourage kids to identify problems and develop solutions with the support of parents and teachers. Some pretty amazing ideas, for the inventions' compassion and insightfulness, were on display at the competition. I never won because my ideas were too complicated to execute by a 10-year-old's hand, although I surely fantasized about Nobel glory and merchandising riches. Last night, on "American Inventor," I relived the pain of rejection while watching a panel of shortsighted judges unanimously deny one man's 26-year pursuit of a dream.
Bulletball, a game that is essentially a cross between ping pong and handball, was demonstrated by a man who had left his job, sold his wife's wedding ring, and lived in a car. Peter Jones, the British judge, entreated the man to not lose his mind in addition to the rest of his possessions. The inventor did make a poignant remark when he said that 80% of people take their inventions to the grave with them, but his haunting comment that he would be looking down from heaven smiling because his game had become a reality was just tragic.
The highlight of the contestants was Eric Thompson, a factory worker with six kids, who barrelled into the audition with a polished and high-energy presentation of a wearable goal post to help kids train for football. He had only spent $30 on attaching the foam stick to a vest, but it was clearly tested for safety beyond effectiveness. I agree with the panel that the invention was marketable and useful. I also liked the southern woman with the clip for broken bathroom stalls. I would totally buy and carry one of those for all the random public facilities I have to use on any given day.
Mary Lou Quinlan still annoys the stuffing out of me -- her explosive behavior in reaction to the long ribbon lingerie incited much laughter in the audience at my home -- but I will still tune in next week to see what else America has come up with.
Today's news
Another day, another merger.
Posted by Darren Dahl at 4:28 PM
For months, Inc. has been reporting on the white-hot M&A market, which continues to burn bright even as the IPO market edges back to respectability with the help of chart-climbers like Under Armour. While the flurry of dealmaking features big names like AT&T/SBC and Duke Energy/Cinergy Energy, Inc.-friendly companies like Tom’s of Maine and multiple Inc. 500 winners Jamba Juice and Alienware (which Dell acquired yesterday) have recently been gobbled up.
While selling your company to a larger corporation is far less risky than taking your company public, is there a cost to giving up control? Is there more to being an entrepreneur than cashing out or even to running a subsidiary of a multinational?
Sales and Marketing
When to Walk Away
Posted by Keith Ferrazzi at 9:20 AM
Last month at TED2006 I had dinner with a leader of a major technology company, and we discussed the Big Task Summit my firm is hosting in April. On behalf of our clients Kaiser Permanente, Safeway, and Dupont, we’re inviting leaders from 30 other companies to share in some significant research focused on reducing corporate healthcare costs and increasing employee wellness funded by these companies. This executive suggested I invite one of her co-founders, saying, "He really does care about these issues."
Continue reading "When to Walk Away"
March 23, 2006
Culture
Ask James Goodnight, founder of CEO of SAS
Posted by Nadine Heintz at 4:19 PM
Do you need advice on creating a progressive company culture that fosters innovation? Ask James Goodnight, founder and CEO of software company SAS, by emailing Ask Inc. Then look for his answer in the June issue of Inc. Click here to read the profile on Goodnight that appeared in our 26 Most Fascinating Entrepreneurs feature.
March 22, 2006
Today's news
Inc. 500 company subject of "public shaming"
Posted by Mike Hofman at 5:31 PM
A controversial adware company that has twice appeared on the Inc. 500 is the subject of a "public shaming" campaign, the Seattle Post-Intelligencer reports. The company, 180Solutions based in Bellevue, Wash., denies that its softare is adware, an assertion that adware foes reject. Now, as the Seatlle newpaper reported, a watchdog group has released a list of 180solutions' customers in the hopes of rallying consumers to call on these companies to end their relationship with 180solutions. Familiar names on the list include NetZero, Netflix, and eHarmony.
In January, as Inc.com reported, the same group, the D.C.-based Center for Democracy and Technology, filed two complaints with the Federal Trade Commission, claiming that 180solutions "deliberately and repeatedly" misled people online into into installing its software.
Some readers have suggested that Inc. should ban 180solutions from the Inc. 500. An editor's note in January addressed the issue: "Inc. reserves the right to withhold a listing on the Inc. 500 if we have concerns about a company's business practices.... We took a hard look at 180solutions, and because at the time it seemed the company was taking steps to address the concerns we raised, we decided to give it the benefit of the doubt."
What interests me about this latest turn is that it's only the latest case of bloggers and watchdogs leveraging contacts made over the Internet to harass companies. These blog shame campaigns have replaced the old-fashioned boycott as a way consumers check the behavior of companies. Of course, blog campaigns are much easier to mount and have no obvious economic impact, so we'll see how effective they are going forward. The interesting shift, I think, is that companies are used to pressure exerted on them by their competition, and used to pressure exerted by the government, and used to pressure exerted by their customers, and used to pressure exerted by shareholders.... but now we are seeing instances in which companies are being pressured by the online peanut gallery—concerned citizens and Web-based bystanders. It'll be interesting to see what success rate and reaction blog-oriented watchdog campaigns generate.
March 21, 2006
The Apprentice
The Apprentice - Week 4
Posted by Nadine Heintz at 11:52 AM
I don't blame the Donald for firing Brent last night. But I do blame him for having Brent on the show at all. I'm convinced that Brent was chosen as a contestant for pure comic relief, and that's not fair. I feel bad for the guy. He never had a chance. He definitely blew it in the boardroom. If he had just kept his mouth shut, he wouldn't have been fired. That was his problem all along...he said too much, and people began to ignore even his good ideas.
I was secretly hoping that Andrea would get the boot last night. I can't stand her attitude. Sure, her sticker business is successful, but I think she's out of her league. And last night's lame graphic design job proves it. At least she wound up taking out the cutesy heart in the end. Hearts and curlicues may sell stickers, but come on.
Not that Andrea is entirely to blame for Synergy's loss. I liked the "next generation" concept, but it was way too complicated for a billboard. I blame Allie for that. And that guy they hired to play the dad was way too young. The Donald was right on when he said that the father/daughter duo looked more like booyfriend/girlfriend. What were they thinking? Tammy and Andrea were too busy high-fiving each other to take a critical look at the idea and the execution. The presentation was awful, too. I was really disappointed in Sean's bumbling presentation. But it was Andrea's dumb idea to use power point slides. Boring!
I didn't have high hopes for Gold Rush either. Their idea seemed overly simple at first, but I guess that's what billboard ads are all about. I thought the picture of the lady chugging the cereal was a little creepy, but it would definitely get my attention. I still can't figure out how they got the cereal to hang in the air. I also thought the baby carriage was pretty hokey. I could have done without it. That said, I do think Charmaine was a good leader. She kept the team on track, made decisions fast, and never second guessed the idea. She really turned it around after the crying jag in the beginning of the show. That was a tad dramatic.
Overall, things seemed to go pretty well with Gold Rush, except for Bryce's last-minute wimp-out. I'm glad Charmaine called him on that. Hopefully he learned a lesson about sticking to your guns. Also, I can't figure out why everyone was so shocked when Lenny added his own touch to the dish during his reward. Loosen up, people! With Brent gone, it should be very interesting to see how Synergy performs. Now, they won't have anyone to blame their failures on but themselves.
March 17, 2006
American Inventor
In Search of the 'American Inventor'
Posted by Athena Schindelheim at 1:24 PM
When I think invention, I think 1950s silver spacesuit futurism, I think time machines and teleporters, laser beams and diabolical laughter. Or at least toaster ovens and waterproof wristwatches. Those who answered ABC’s casting call and were featured on last night’s premiere of American Inventor, however, subscribe to a different definition. They think “slight variations on already existing products” or “necessities that haven’t been available due to complete absurdity.”
The first invention introduced to the panel of judges allows its owner to climb into a beautified garment bag and relieve himself should nature call at an inconvenient time. Then carry around a backpack full of my own refuse? Ew! There has been many a road trip where I have uncomfortably passed a “Next rest stop 25 miles” sign while simultaneously finishing a Big Gulp. But reduced to pondering the brilliance of a built-in car seat facility... no. Just no.
Later, we meet another toilet-o-phile who has attached a soap pump to a tissue roll holder, and whose pitch -- involving a brief discussion about sandpaper and moisture --almost convinced one of the judges! A recurring theme, I hope.
What I loved most was the inter-panel warfare. Whenever two or more of the judges felt strongly about a product but another expressed doubt, the fireworks flew. At one point, Mary Lou Quinlan (who strikingly resembles Catherine O'Hara at her manic best) and master inventor Doug Hall (an unironic Hawaiian shirt aficionado and two-time Inc. cover-boy) got into a tangible spat over an inflatable suit for tantrum-throwing toddlers. While Hall genuinely encouraged the Ph.D.-toting mom/inventor to pursue her dreams, Quinlan and Ed Evangelista (a boxing, ad veteran/family man) likened the floaties to torture chambers intent on smothering intolerable children. I side with Hall on this one. Throw the kids in a sack like so many fighting cats. Let them sort it out on their own!
Although most of the two-hour debut consisted of wackiness and mockery, brief moments of human drama made the time commitment worthwhile. The correction officer with the traveling fitness center tugged at my patriotic heartstrings. Full of American pluck and determination, he maintained a delicate balance between happy tears and crazy tears. The judges were touched. Even the stony Brit (co-creater/co-producer with Simon Cowell) Peter Jones, betrayed a hint of emotion.
Admittedly, none of the inventions elicited an “I might actually buy that one day,” but as far as entertainment goes, the concept is hard to beat. I will tune in next week to root my favorites on toward the million-dollar prize, and maybe be inspired to bring to life one of the kooky ideas knocking around my own brain.
March 15, 2006
Springtime for Whistleblowers
Posted by Mike Hofman at 4:11 PM
Sherron Watkins, the famous Enron whistleblower who tried to warn CEO Ken Lay that the energy company was headed for trouble, testified today in the Enron trial of Lay and former Enron exec Jeff Skilling. The Associated Press report on her testimony can be found here. Check out the March issue of Inc. to read Darren Dahl's article "Learning to Love Whistleblowers." Darren reports that companies are actually setting up systems that enable employees to report wrongdoing. The goal, they say, is to spot trouble before it becomes a federal case (see Lay, Ken).
March 14, 2006
Telephone Operators of the World, Rejoice
Posted by Max Chafkin at 6:03 PM
Thanks to Paul English, whose crusade against automated phone systems is still going strong, it's a great time to be in the call center business. Since I wrote about English's quest to help consumers connect with live operators in Inc.'s February issue, the Kayak.com founder has broadened his message and created, in his spare time, what could be the beginning of a full-fledged consumer rights movement. Last month, English launched a new advocacy site, Gethuman.com. The site includes English's growing list of 800-number shortcuts and will eventually publish rankings of the best and worst consumer companies based on the quality of their telephone customer service.
Meanwhile, Citigroup's new "Simplicity" ad campaign features a TV spot in which a competitor's automated phone system frustrates a caller and causes a grease fire. One of the campaign's taglines, "Press 0," seems at least partly inspired by English's efforts.
Perhaps an even greater indication that people are paying attention: tomorrow will mark English's second appearance on the Today show. Tune in around 8am for a live interview with Katie Couric.
The Apprentice
The Apprentice - Week 3
Posted by Nadine Heintz at 11:16 AM
Last night's episode was fabulous. It had everything viewers could ask for: Religious conflict, fighting, dumb models, and a foulmouthed comedian. Plus, of course, Donald Trump.
The Donald definitely made the right decision when he fired Theresa. For some reason, that woman really creeps me out. Maybe it's her beady eyes. I loved when Lenny suggested that Trump fire both Tarek and Theresa, but I'm glad Mr. Mensa didn't get canned. He seems to have toned down the whole brainiac thing in the past two weeks. And he kept emphasizing the importance of developing a theme to tie Gold Rush's event together. Theresa just kept yelling and talking over him. Her behavior in the planning session was really abrasive. It seemed like her whole strategy was to delegate all the important stuff, then blame everyone else when her team lost. That didn't work very well!
As Tarek pointed out, the problems started in the planning phase, when Theresa refused to develop a theme. I knew right away that the idea of hiring models, a comedian, and a horsedrawn carriage was going to be a total bust. Synergy, on the other hand, focused on their theme right away. Then everything else fell into place. Their event was perfect. I'm still not sure how I feel about Andrea, but I was impressed with her management style. She's no-nonsense, but she's not a control freak or a tyrant. I was particularly impressed with the way she handled Brent. Giving him busy work that he couldn't screw up was smart. I doubt that poor Brent will last much longer. That was really pathetic when he left the meeting to have lunch. I'm beginning to wonder why he was even picked to be on this show. Was it only for comic relief?
Gold Rush's event was laughable. I can't believe Theresa thought a horse and carriage would teach car dealers about horse power. How lame! And the putting green looked terrible. Sure, that was Tarek's task, but I did hear him tell Bill that Theresa wouldn't let him spend money on astro turf. Needless to say, the comedian was ridiculous. Where did Charmaine find that woman? Not only was the comedian inappropriate, but she wasn't funny at all. I can't believe Charmaine paid her the full $1,700! The models were embarrassing as well, but the deck was stacked against them. Basically, they had 20 minutes to learn everything about the Tahoe. I can't believe Theresa didn't take Charmaine into the boardroom instead of Lenny.
That said, I can understand why Theresa was annoyed with Lenny. I love his brash attitude, but I was really disappointed when he told Theresa that it wasn't his problem that the speakers were missing. Anyone who says "That's not my problem" or "That's not my job" is very questionable, in my book. Also, he should have stopped complaining about the fact that Lee and Dan took two days off to observe a religious holiday. I kind of see how he might feel justified, since he's also Jewish and didn't take the day off, but the Donald clearly thought it was okay. I really liked the way he diffused that whole discussion in the boardroom by simply telling Lenny, "That's life." Then he changed the subject. People may make fun of the Donald, but he does seem like a good manager.
By the end of the show, I had forgiven Lenny. As Bill pointed out, he was a workehorse during the task. He should probably tone down his yelling and cursing, though I did love it when he said that he wished Theresa's brain was as big as her other endowments. He just can't keep his thoughts to himself!
The shark "reward" was pretty scary. I'd much rather have dinner at some fancy restaurant than get into a tank with those 12-foot-long man-eaters. I give Brent a lot of credit for taking the plunge. According to the preview for next week, it looks like Brent's about to go "over the line" and act crazier than ever. That should be interesting! So far, I'm not sure who will win this season. Andrea's definitely a contender, and maybe good old Lee. I guess we'll find out.
March 13, 2006
Small is Big in D.C.
Posted by Angus Loten at 5:42 PM
Small employers are big news around the nation's capital these days.
According to the Small Business Administration, businesses with fewer than 500 employees make up nearly all employer firms in the District of Columbia -- a full 25,600, or 93.4%, of all 27,424 businesses with employees in 2004. Together, they employ about half the region's workforce, SBA figures show.
As the Washington Post points out today, these neighborhood stores, family shops, day spas, builders and bookstores are driving unprecedented economic growth in the region by doing the "heavy lifting of creating jobs and revenue," rather than big corporations.
How? Despite calls for smaller government and ongoing cuts to the SBA budget, these local firms have directly benefited from more bureaucracy, according to Chad Moutray of the SBA's Office of Advocacy: "As the government gets larger, certain areas of the economy flourish and continue to attract jobs here," Moutray tells the Post.
Recruiting and Hiring
Home Sweet Home
Posted by Carole Matthews at 3:29 PM
Forget outsourcing call centers to India. "Homesourcing" seems to be the new trend, as more and more businesses find that employing independent contractors stateside is a very cost-effective and productive strategy for manning their call centers. The trend, discussed in a USA Today article on Sunday, cites IDC researchers, who predict the number of home-based agents to triple over the next few years. Some of the reasons include a need to cut costs, improved access to technology and high-speed Internet access, and the ability to tap non-traditional labor pools such as students and retirees.
Though the story points to large employers as the driver of the trend, "homesourcing" isn't out of reach for smaller employers. Mary Naylor, CEO of VIPdesk, an Inc. 500 company, created a home-based agent call center as a way to build her business with high-caliber employees. As Naylor put it in her article, "There's No Place Like Home": 'We are no longer restricted to our local labor market. Imagine tapping the potential of national recruiting pool!' Besides this obvious advantage, VIPdesk enjoys very low turnover because of the work-life balance it provides and reduced operational costs.
Working with home-based employees doesn't come without its challenges. For instance, keeping everyone on the same page can be daunting, and you need to know whether a particular person can be disciplined enough in the situation to be sure he or she will be a productive fit. But, in a time where technology connects us with a touch of the button, rising fuel and other operational costs cut into bottom lines, and work-life balance is an attractive benefit, the advantages certainly seem to outweigh the negatives. What has your experience been working with remote employees or contractors?
Small Giants
The Small Giants Blog: Day Four
Posted by Bo Burlingham at 10:37 AM
Recently I've come to appreciate how important names and labels can be. It's much easier to ignore a phenomenon if it has no name. I suspect that's one reason why the Small Giants phenomenon -- that is, companies choosing to be great instead of big -- has been ignored up to now: It hasn't had a name.
These thoughts come to mind as a result of a meeting the staff of Inc. had last Friday with Timothy Faley and Mary Nickson of the Zell Institute for Entrepreneurial Studies, which is affiliated with the Ross School of Business at the University of Michigan in Ann Arbor. We naturally began discussing the different types entrepreneurial companies. Dr. Faley explained that the institute was formed to leverage the University's enormous research base and thus focused on the fast-growing, venture-backed companies. He and Ms. Nickson noted that there were programs at community colleges to support people who wanted to start restaurants, salons, clothing stores, and the like. What about other types of entrepreneurial businesses? we asked. They said that they also saw people who wanted to have lifestyle businesses.
Continue reading "The Small Giants Blog: Day Four"
March 10, 2006
Small Giants
The Small Giants Blog: Day Three
Posted by Bo Burlingham at 12:50 PM
You can't talk, or think, about Small Giants without considering the question of scale. How big is small? That is, how big can a company be and still be thought of as small? That question has come up in some of the responses I've gotten to Small Giants.
Continue reading "The Small Giants Blog: Day Three"
March 9, 2006
Small Giants
The Small Giants Blog: Day Two
Posted by Bo Burlingham at 11:24 AM
As I've gone around promoting Small Giants, I've gotten a lot of great questions. One of the most interesting came from Bill Taylor, the cofounder our sister publication, Fast Company, at my very first book signing event. My friend and former Inc. colleague Tom Ehrenfeld was there, picked up on the exchange, and subsequently persuaded Bill to write down his question and got me to write down my reply. Tom posted them recently on the excellent business blog at 800-CEO-READ. I thought you'd be interested in reading them.
Continue reading "The Small Giants Blog: Day Two"
March 8, 2006
Small Giants
The Small Giants Blog
Posted by Bo Burlingham at 10:52 AM
People have asked me how I chose the companies that appear in my book Small Giants: Companies That Choose To Be Great Instead of Big. I had five criteria.
(1) I looked for companies that had made a choice to forgo revenue growth or geographical expansion in order to achieve other remarkable ends. "Choice" is the key word there. For purposes of studying the phenomenon, I wanted companies that could have taken another path--that had the opportunity to grow much faster and get much bigger--but had decided not to because they had other ambitious goals.
(2) I looked for companies that were admired and respected in their industries. After all, who can better judge a company than the people who compete against it, or at least work in the same field, and know all the subtleties of the business? I figured that, if they think a company is great, very likely it really is great.
(3) I looked especially hard for companies whose achievements had been recognized by other independent observers. This, for me, was a comfort factor. I liked to know that people other than I had decided the company was worthy of special recognition.
(4) The size issue was tricky because perceptions of size are so subjective. To a someone with two employees and $500,000 in sales, a $10-million business is huge. Then again, in an industry dominated by multi-billion dollar companies with tens of thousands of employees, a firm with 3,000 employees would be small. I decided it was important to focus on companies that operated on what you might call "human-scale." By that, I mean companies in which it was still possible for the top leaders and owners to know everyone working in the organization.
(5) Last, but not least, I wanted companies that were both privately owned and closely held--that is, companies whose stock is owned by a small number of like-minded people, most of whom work in the business. The reason was simple enough: The companies I was interested in had made choices based on criteria other than maximizing the return on investment. You can't do that if you have legal and moral obligations to outside investors who have given you their money precisely because they want to maximize their return on investment.
The odd part was that, after 20 years at Inc., I had no idea how many companies fitting my criteria I would find or what industries and geographical locations they would be in. But more about that later. Meanwhile, I'm curious to know what you think of my criteria. If we were going to do another search for small giants--as we plan to--how should we modify the criteria. Are there other criteria we should add?
Bo Burlingham is the editor at large for Inc. magazine. Check back for more posts on Small Giants on Fresh Inc.
March 7, 2006
Technology
Don't Let Them Leave Empty Handed
Posted by Chris Consorte at 1:33 PM
It's a common problem for any small business owner with an e-commerce enabled website--clients and prospects abandoning their orders before check out.
Forget the wasted money in driving the prospect to the site. Forget the money lost on not receiving the order. The worst part is that you never got a chance to truly sell to an interested prospect that may have become your biggest customer over time.
In my own experience, I have clients that know their abandon-rate off the top of their heads. While it's great to be knowledgeable about these types of statistics, I'd prefer they focus on not accepting cart abandon as a "given" or part of the status-quo.
Continue reading "Don't Let Them Leave Empty Handed"
The Apprentice
The Apprentice - Week 2
Posted by Nadine Heintz at 11:21 AM
I was really shocked by Stacy's bad behavior last night. She was clearly manipulating the truth so Brent would be fired. She changed her "threat" story so many times that nobody seemed to believe her in the end. I guess she hasn't learned much as a criminal defense lawyer. If you're going to fabricate stories, at least get your facts straight. Anyone who watches Law and Order knows that.
Needless to say, I was happy with the outcome of the show. The Donald definitely made the right decision in the boardroom. Brent is pretty absurd, but he wasn't the reason for the loss. He's clearly the type of person who just wants to be heard. As long as he's not rambling on endlessly, I don't see the harm in listening to his ideas. After all, his contributions to last week's brainstorming session helped his team win the big box challenge. Stacy was rude and only escalated the problem. And Pepi failed to nip things in the bud. I guess he only knows how to manage cooperative people. As we've learned in past seasons, that's not going to cut it.
Speaking of bad managers, Lee really went off the rails for a while. I was disappointed. But I liked the fact that he gave in to Lenny's demands later on and admitted that he was wrong to spend so much time coming up with the right keyword. This task was all about pounding the pavement. The teasers for last night's show made it seem like Lenny was being crazy, but he saved Gold Rush from disaster. I kind of like his brash attitude. I can definitely see him running a Trump organization.
Other than Lenny, nobody else stood out in a good way this week. Allie and Tarek seemed to make minimal contributions. Admittedly, the task didn't involve much creativity or business know-how. It was all about location, which is why Stacy deserved to be fired. Michael's robe idea was also terrible, but the Donald was right to give him another shot.
There weren't many standouts, but Synergy did work well together as a team. I couldn't believe that they were already in Times Square while Gold Rush was still eating breakfast. As for Brent, I'll admit that his dance moves were ridiculous and embarrassing, but at least he tried. His teammates just seemed to flounder. Instead of switching to plan B when they realized the location was poor, they simply froze.
I liked the Donald's daughter. Unlike Alexis Stewart, Ivanka was sharp as a tack and had plenty to say in the boardroom. She's a welcome addition to the cast. I also liked this week's reward. It's nice to see reality TV contestants doing something selfless for a change. I was kind of disappointed that the Donald didn't give the three unemployed guys jobs, though. At least they received snazzy interview suits.
It looks like next week's challenge is going to be much more interesting, in a Fear Factor sort of way. I can't wait to see the wimpy wanna-bes swimming with sharks. And they think Brent is scary?
March 6, 2006
Using Financials to Get What You Want
Posted by Philip Campbell at 11:24 AM
Do you ever get the feeling you're only preparing financial statements because you're forced to? That you're preparing financials because the bank requires them, or your CPA said it's the right thing to do, or because you have to have them to file your tax returns?
If so, I have an interesting perspective to share with you. I want to show you the real reason for creating financial statements. And it has nothing to do with the bank or the IRS. It has everything to do with YOU.
Continue reading "Using Financials to Get What You Want"
March 3, 2006
Today's news
Opportunities for Small Businesses In India?
Posted by Ryan McCarthy at 4:46 PM
President Bush spoke to young entrepreneurs today in Hyderabad's Indian School of Business, emphasizing the potential business benefits of globalization, while warning of the dangers of protectionism. Many U.S. small businesses have already embraced the idea of outsourcing to India. A study last year by Santa Clara University found that in 2004, India lead the world in outsourced IT revenue, totaling some $12 billion.
While the shift of jobs overseas continues to divide the American public politically, Bush pointed out that India's continued development also represents new opportunity for U.S. companies. "There's a 300-million-person market of middle-class citizens here in India and that if we can make a product they want, then it becomes -- at a reasonable price -- and then all of a sudden, people will be able to have a market here," Bush said.
Is Bush's silver-lining stance toward globalization too optimistic? As the economies of international competitors are bolstered by outsourced high-tech jobs, traditional low-tech entrepreneurial markets could very well open up in countries like India. It remains to be seen, though, what benefits or services American entrepreneurs could offer an increasingly educated and wealthy Indian society. Just as importantly, traditional entrepreneurial efforts overseas would do little to counteract America's high-tech brain drain.
March 2, 2006
The Timelessness of Deming
Posted by Rebecca Morgan at 12:37 PM
If ever you start thinking you've got hurdles to overcome, remember Japan. At the end of WWII, companies there were facing badly damaged infrastructure, limited capabilities, and a government in turmoil. But desperation can breed openness to help, and that is fundamental to how, in a few short years, the reputation of Japan's product moved from "plastic, trinkets, junk" to "quality, state-of-the-art, reliable." By 1980, American businesses started paying attention, starting with NBC's 1980 documentary "If Japan Can, Why Can't We?" It made clear Japan's quality superiority.
Japan gives much of the credit for its postwar industrial turnaround to W. Edwards Deming, a U.S. government statistician. Deming showed them the importance of using statistics in quality control, providing great impetus to that nation's nascent quality movement. Meanwhile, on this side of the Pacfic, American businesses had turned away from the quality statistics that had been so valuable during the war. The quality of many American manufacturers was quickly surpassed by that of their Japanese competitors.
Continue reading "The Timelessness of Deming"
Culture
Maximing Sales Can Sometimes Hurt Your Business
Posted by Ted Hurlbut at 12:25 PM
If there's one thing I've said to clients that have stopped them dead in their tracks it's that trying to maximize their sales can be one of the worst things they can do.
Say what???
I have yet to meet a small retailer who is thinking about retaining my services who isn't focused on maximizing their sales. Of course, they're also struggling with profitability and cash flow. That's why they're talking to me. People generally don't talk to somebody like me unless they're feeling some pain, and there's nothing quite as painful to a small retailer as not having enough cash.
Continue reading "Maximing Sales Can Sometimes Hurt Your Business"
March 1, 2006
Today's news
Key Supreme Court Decision
Posted by Mike Hofman at 5:59 PM
The Supreme Court issued a unanimous ruling today in a case that will make it harder for companies to sue competitors over market power. (For the AP's breaking-news take on the ruling, click here.)
The case the Court decided involved a printer maker, Illinois Tool Works, who was sued by Independent Ink, a company that makes toner cartridges, for requiring customers to buy Illinois Tool Works cartridges. Independent Ink claimed that this was an illegal effort to reduce competition. In past cases, the Court had ruled that companies that hold a patent can exert undue market power, and therefore can be sued for abusing their power by limiting their customers' ability to weigh different options if the product they sell requires an add-on, as in the razor-razor blade model. But today, the Court ruled that companies that hold patents (as Illinois Tool Works does) may not, in fact, have that much market power after all, and therefore, the model of requiring customers to buy add-on products or replacement products for a system is not inherently anticompetitive.
In the writing the 8-0 decision, Justice John Paul Stevens noted that "Congress, the antitrust enforcement agencies, and most economists have all reached the conclusion that a patent does not necessarily confer market power upon the patentee."
You can read the opinion here.
Taxes
Deducting Your Home Office Expenses
Posted by Barbara Weltman at 11:31 AM
Home office deductions can offer excellent tax savings for entrepreneurs. However, there are very specific rules that home-based small business owners must follow in order to qualify.
Principal place of business
Your home office must be your principal place of business. In the tax law, this means you earn your money from home or use your home office for significant administrative or managerial activities and do not have another business location. Freelancers working from home usually can satisfy the test easily. But consultants who spend most of their time at clients' offices may have a tougher time. For example, if you're a plumber or an interior decorator and earn money in the field, you can claim a home office deduction only if you can show that you use a home office to schedule appointments and keep your books for work and have no other office.
Continue reading "Deducting Your Home Office Expenses"
Women in Business
Women Managing Women
Posted by Nan Mooney at 11:13 AM
The latest Census Bureau statistics reveal that women owned businesses are hotter than ever. Between 1997 and 2002 women started businesses at twice the national rate. Women-owned businesses with more than $1 million in revenue went up by 18% and those with more than 100 employees went up by 10%.
One upshot of all this growth is that now there are more women in leadership positions than ever. Whether they head their division or head the whole company, these women are in a position to do something they may have wanted to do for a long time. Hire other women.
Continue reading "Women Managing Women"
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