On the important issue of copycat companies

February 3, 2010 – 3:34 pm
Looking through my twitter stream, I came across this from Bryce: It's not just him.  It's reality. And as the founder of one of the world's most successful knockoff companies, I really can't think of anything wrong with it. In fact, there are a lot of things RIGHT with knockoffs on the startup scene: Ideas aren't worth much on their own.  In fact, I'll prove it to you right now.  I have an idea!  It's amazing.  Instead of shipping goods or people across the country in airplanes, my idea is a product that would get them there in 3-4 seconds using advanced optic teleportation technology.  3-4 seconds to be ANYWHERE!   Now....how much will you pay me for this IDEA? Weed out the weak hands in both entrepreneurship and startup-investing. You have a unique idea.  You determine the timing of taking it to market.  You determine the marketing, PR and other promotional aspects of the business. ...

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Should I wait for _________?

January 25, 2010 – 1:10 pm
Got this question on my formspring "ask me anything" page: "Should I wait to have a profitable web application before getting married/have kids?" My answer:   No. Entrepreneurship, in my opinion, is a life-long thing if you do it right.  Doesn't mean you'll always be involved in a startup, but it does mean that you will always want that option. And so it's important to be with someone that supports that.  Someone that accepts risk and believes in YOUR ability to create wealth. Your spouse should be drawn to you not for what you have, but for the qualities that get you there. Remember, struggle is often the biggest motivator of success. Plus...you only get one life, and it could end today via the wrong end of a government-employed texting bus-driver. So why wait for ANYTHING you really want? p.s.  There are plenty of good reasons to wait to get married and have kids....this entire post it written for ...

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The danger of “healthcare is a RIGHT”

January 21, 2010 – 3:43 pm
When you say "healthcare is a right"....be careful and think about exactly what you're saying. You are charting new territory.  You see, unlike other "rights", healthcare isn't something that can merely be "protected"....healthcare is something that must be provided. So what you're saying is that everyone has the right to be provided with health care. And who provides health care?   Other people ('the providers")...doctors, nurses, drug makers, etc.   This is their labor. So now we can expand your original statement to "Everyone has the right to be provided health care by the providers." Of course, that means that the providers have no right to deny their labor.  Providers no longer own their labor, for it MUST be given. Which, by any reasonable definition, is enslavement. If you are willing to declare healthcare a right, you are willing to enslave the provider to the needs/wants of the recipient. Careful.

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Ask me anything

January 20, 2010 – 10:42 am
Formspring has a nice simple concept.   You set up an account and people can "ask you anything", and then if you choose to answer, it gets published on your page. Here's my page....go on, "ask me anything". There are basically two sides to this. First, it can be a bit self-delusional and narcissistic.  "Wow isn't it cool that you can ask ME anything?".  Yawn for me, thrill for you. But more importantly, it's a platform for "on-demand blogging". You see....I have a rather sizable cross to bear.  I know you're out there, pining for my next masterpiece.....and yet, I rarely come up with topics worthy of my pen while sober. So here's the deal: "Ask me anything" on the formspring page.  It's anonymous if you want it to be. If it's really stupid, I'll delete it and give it nary another thought. If it's just kind of stupid, I'll answer it on the formspring page. If it's intelligent, thought-provoking ...

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Competition? We HAVE NO COMPETITION.

January 19, 2010 – 11:53 am
The book Blue Ocean Strategy should be on the desk and in the mind of every entrepreneur and startup investor. The concept is not new... You're better off as a "small fish" in a wide, blue ocean than in a pool of water bloodied by the fighting of competitors. Attacking a strong enemy with a frontal assault is typically a recipe for disaster.  Instead, find his weaknesses (flank) and stay in position to exploit them ferociously. Offer unique value to customers. Execution is critical.... Learn how to "map" the competencies of your competition and YOURSELF.  This is critical.  You simply have to commit to being excellent in new and different ways. When we started mytrade, we started with this concept in mind. What are 10 things people love in a finance site? Map Yahoo finance (the dominator) in each category. Identify the categories that Yahoo Finance was excellent at (data, quotes, news, screener, etc) Completely IGNORE those categories (mytrade has NEVER ...

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Wealth and redistribution thought-experiment #1

January 11, 2010 – 1:22 pm
Wealth can be created and destroyed. For proof of this, imagine that you, Dave and I are stuck on a deserted island in the middle of the ocean, with nothing but the clothes on our back.   We are as poor as three people can be. Now suppose you invent a system whereby the fallen branches of a dead tree can be fashioned into a 2 bedroom home with a central heating fireplace. After a brilliant idea and a lot of labor on your part, you have built a meager home.  Wealth has been created. Now, you "control" 100% of the wealth of the region. Is this unfair? In exchange for Dave and I sharing the 2nd room, you suggest we pay "rent" to you in the form of gathering food and firewood for you while you watch the sunset each evening for an hour.  This sounds good, so we agree.  After a few months ...

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A great OLD idea for a business!

January 8, 2010 – 10:10 am
We already know that your idea is worth very little. But I'll go one step further:  It often sucks to base your business on a completely new idea. Why? You're probably not the first to think of it or try it.  A lot of times it is true that the reason something doesn't exist is because no one really wants it. It's crushing to get going on a fully original idea and then see a competitor pop up quickly and aggressively.  "New" idea businesses tend to think they'll be the only ones in the game for much longer than reality will allow (if it actually is a good idea). Don't get me wrong, if you have a great idea....GO FOR IT.   Just don't think you need to have a one-of-a-kind idea to go for it.  You don't.  You can start a used car lot tomorrow and make a lot of money if you do it ...

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The importance of momentum

January 6, 2010 – 11:36 am
Momentum is one of the most underrated pieces of success.  The reason is simple: With momentum, it is difficult to stop.  Without momentum, it is difficult to start. Think about it.  You know people that run every day, mostly because they run every day.  It's just the way it is...they have momentum.  It wouldn't feel right to suddenly stop that behavior. So, how do you build momentum? By keeping things small to start.  Ensure victories early.  Increase difficulty slowly and steadily....and always be aware of your momentum. The most common thing people do is set lofty goals from a resting start.  That's a big problem, because even if you are in fact on track to reach the goal after an initial push, it still feels just as far away as it did in the beginning.   You have no momentum, and you're likely to quit. Instead, break your grand vision into small battles.  Start easy, but on ...

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Seeking greatness….a personal odyssey resumes

December 28, 2009 – 1:47 pm
2009 whipsawed me in more ways than one.  Despite this, I remain upbeat...much to the chagrin of my enemies, who are numerous. See, I understand that my wealth lies not in my bank statements, brokerage account or salary level...... but in my mind. Its capacity to produce income and wins is beyond reproach.  Therefore, it is an extremely valuable asset.  In fact, it is capable of creating so much wealth and paper money that it makes paper money virtually worthless to me....which may seem like a contradiction, but I can assure you is not. "But Andy," you say, "isn't the fact that you lost money in 2009 evidence that your mind is NOT the asset you think it is, you blowhard?" And with that, you've nailed the great caveat. The mind, as an asset, must be asked....no, DEMANDED!....to produce. For most people, this occurs very rarely....typically in times of great peril.  Indeed, you will recall ...

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What matters now (as it always has and always will)

December 15, 2009 – 2:24 pm
Winning. Now figure out what you want to do, and go win.

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