Posts Tagged ‘blog’

More on starting a company in an economic downturn

Friday, March 21st, 2008

Yesterday, The Industry Standard published an article that I wrote about why it’s a good idea to start a company in a recession. The article is here. (You should probably read it if you want to follow the rest of this post.)

Hacker News logoThis article generated quite a bit of buzz on Y Combinator’s Hacker News, so I wanted to take a minute to respond to some of the comments. Here’s the link to that chatter.

– The most common disagreement with the article seemed to be that many of the points that I was making about why it would be good to start a company in a recession also apply to starting a company in a boom. I agree completely. However, we unfortunately are not in a boom at the moment – we’re in (or entering into) a recession. The viewpoint of the article is “since we’re in a recession…” not “if you could pick between recession or boom…” I wholeheartedly agree that if you could set your ideal conditions in which to start a company, a boom would be the time.

– One commentor wrote: “start a company at a time and a place where there are no constraints and even the biggest idiot can be successful.” I disagree with the notion that there is ever a time that there are no constraints on a start-up. If there aren’t constraints, there should be. And this is the point I was trying to make. In a boom, start-ups don’t always SEE the constraints as readily or operate with restraint – but they should if they want to be using best business practices and give themselves the best chance of success. A recession forces those contraints on a start-up – but those constraints aren’t BAD. They help set good patterns and behaviors for running a business.

– In my opinion, it is not true that there is ever a time or place that “even the biggest idiot can be successful.” Successful idiots – especially in the world of start-ups – are rare.

Finally, various commentors suggested three other reasons that it’s a good idea to start a company during a recession and I wanted to include them here because I thought that they were worth mentioning:

1) “Your competitors will go bust.” -m0nty

Another commentor put it this way:

“Because the well-funded riff-raff drops out sooner.” -edw519

2) “Businesses that increase market efficiency in novel ways seem, to me, more likely to succeed during a recession. This is so obvious that I’m surprised the article didn’t mention it.” -mkn

3) “Also could get one more attention — maybe — because the media won’t necessarily expect anyone to be doing anything positive. Recessions are one big moan, and the ‘yipee!’ of a startup will stand in stark contrast.” -sabat

Thanks for all your commentary – keep it coming.

(Update: The discussion is continuing here: http://news.ycombinator.com/item?id=142792)

FriendFeed: Feeds, feeds everywhere

Friday, March 14th, 2008

I don’t yet have an opinion about whether FriendFeed is good, bad or indifferent (although I know there are a lot of other people who do). I joined yesterday and very few people who I “know” are using it, so I didn’t take a long time looking it over just yet. But what I did see is this potential issue of many feeds feeding the same thing (via my Facebook mini-feed):

FriendFeed on Facebook

It appears that the way I set things up, my blog is updating my Tumblr is updating my Twitter. And all are updating FriendFeed, which is updating Facebook…this could get ugly. Couldn’t it? And I am not even using all of the social networks. But I imagine that the same thing would happen if I update Flickr – or any other service that I use that feeds to multiple sites.

How do I manage all the feeds that are feeding and cross-feeding everywhere? I don’t think that this is really a FriendFeed problem, per se, it just brought the issue to light for me.

New music models worth checking out

Wednesday, January 16th, 2008

In a recent article, I made a series of predictions about the future of the music industry – one of those predictions was that “many new online and digital services will rise and fall.” Now that I think about it a bit more, that prediction seems kind of cheap because in the course of researching that story, I came across lots of the new online and digital services that have already risen. So half of the prediction was more just reporting than prophesying.

Even so, I thought it might be helpful to include a list of the new music models that I found while doing the research. If my prediction holds, many of these will eventually fail, and most of the others will be acquired or consolidate. Staying on top of this quickly changing industry will be tough for awhile, but knowing what’s out there now is a good place to start.

This list is obviously not exhaustive, so if you know of others, or have feedback on any of those listed below, please leave a comment. Also, some of these companies have revenue models that are clear, but others were a bit less so. If you have any input, let me know.

GoombahGoombah logoMusic recommendations based on your iTunes playlist and a comparison of what other people who share similar music interests are listening to. Goombah scans your iTunes library, finds other people who share your musical tastes, and then recommends songs to you based on the songs that they listen to. Revenue model: Affiliate income with potential to get into paid placement, with labels paying for their artists music to be part of the recommendations.

finetune- This site lets you type in an artist and they will createa custom playlist of songs based on that artist and others “like” them. Alternately, you can build your own playlist of up to 45 songs from 15 artists. You can then take your custom playlist and embed it on your blog or MySpace page. Revenue model: advertiser-supported

Groove Mobile – The leading music-for-your-cellphone provider,Groove Mobile logo they have mobile downloads, P2P sharing, music recommendations, streaming radio and music subscriptions. Groove Mobile also powers Orange’s Music Player (U.K.) and the Sprint Music Store. Revenue model: Subscriptions

Livewire Musician – This Web application lets bands, labels or managers book gigs and tours, Livewire Musician Logocommunicate with fans, manage radio promotions, manage the press, and track radio play. A basic account is free, and there are a la carte premium services available. Revenue model: Licensing fees

matchmine – Suggests other songs (and movies and blogs) that youmatchmine logo‘ll be interested in based on your preferences. The company is a product of The Kraft Group/New England Patriot’s interactive media and innovation team. Revenue model: Sells general user data to partners

Nextcat – Social networking for the entertainment industry, Nextcat logowhich in the entertainment industry looks more like traditional networking. Revenue model: Advertising and sponsored listings and placements

nimbit – Business management tools for the indie musician. The nimbit logocompany’s mission is “to put musical artists in complete control of their own music business and brand, enabling them to reach their full potential as quickly as possible.” They do this by providing solutions that allow artists to sell CDs and digital downloads, merchandise, and provides assistance with online ticket sales, e-mail list management, Website design and content hosting and a variety of other services. Revenue model: Paid services

OurStage – This site works kind of like a traditional “battle of the bands.” Bands upload their music, users OurStage logoof the site vote on what they like the best. Every month there are winners of cash prizes. Revenue model: The site sells the music that is uploaded to the site.

Sonicbids – Connecting bands and music promoters. The site allows musicians to put together Sonicbids logoone digital press kit (DPK) that is then distributed to promoters and helps the artists book gigs without having to send out physical press kits. Revenue model: Promoters pay a one-time fee and artists pay for submissions.

Amie Street  – This site allows indie artists to upload their Amie Street logomusic – the more popular the song, the more expensive it is to download. All songs are free to start and then move up in cost the more popular that they get. When users recommend songs to their friends, they get credit to buy more music. Revenue model: Earn 30% of every song sold

Strayform – Artists put proposals online and they are (or aren’t) funded by the fans who see Strayform logothem. According to Strayform, “Fan funded proposals let artist get paid without giving up a big cut, without blowing money on ads, and without long term restrictive contracts.” All the media is Creative Commons licenced, so fans can use everything freely on any device and share on P2P networks. Revenue model: ?

SellaBand – With this site, musicians need to find 5,000 people who “believe in them” (people prove this SellaBand logoby giving $10 to the artist) and then SellaBand takes the artist to the “best producers and studios in town.” Then the three (artist, believer and SellaBand) split the profits from sales of $.50 downloads. According to this article from TechCrunch, some artists have hit the $50,000 mark and have already headed to the studios. Revenue model: Splits revenue with the artist and users

CDBaby – Online record store that sells albums by independent musicians. They oCDBaby logonly sell music that comes direct from musicians, and pay the musicians directly, weekly. They also help to facilitate the digital distribution of music. Revenue model: They take $4 per CD sold, plus an initial $35 fee.

iTunes – This is a site that probably needs very little introduction. MP3 library, iTunes logofrom which users can download songs for $.99 per track, $9.99 per digital album. Revenue model: iTunes takes 30% of each sale.

Amazon MP3 Downloads- Works just about the same way that iTunes does, except that users don’t have to download a special player to get songs, and digital albums cost $8.99 each. Revenue model: Amazon takes a percentage of each sale

Rhapsody- Another MP3 download site, thRhapsodyis one features unlimited downloads based on various subscription deals. Revenue model: Memberships plans starting at $12.99 per month

TuneCore- This site allows artists to upload their digital tracks, and then TuneCore manages TuneCoretheir relationships with digital distributors, including iTunes, Amazon.com and Rhapsody. I wrote a more in-depth assessment of the site here. Revenue model: Charge artists a yearly fee

In compiling this list, I relied heavily on TechCrunch and Xconomy. Thanks!

Inspiration from books

Friday, December 7th, 2007

I have posted before about how I like to read books for encouragement. But my favorite thing is when I can read a book and be inspired.

Founders At WorkStarting a company is hard. There are lots of things about it that are challenging at one point or another, but the past few weeks have been particularly difficult for me. Mostly, it’s the isolation of working from home and waiting waiting waiting for some technology to be developed so I can move forward with the business. Plus, it’s cold. And dark by 4:15, which seems ridiculously early. Also, I have had a number of conversations with people about the businesses that I am starting in which the people just did not get it. At all.

Thankfully, they aren’t the people who are supposed to get it, they aren’t in my industry, they are not even my target audience. But it’s still not fun when someone doesn’t understand what you’re doing. Especially when you are isolated. And waiting. And it’s dark outside.

So I was psyched when I picked up the book that I’m reading now, Founders at Work: Stories of Startups’ Early Days, and read this in the introduction:

Founders live day to day with a sense of uncertainty, isolation, and sometimes lack of progress. Plus, startups, by their nature, are doing new things – and when you do new things, people often reject you.

This I can relate to. (Apparently, so can other entrepreneurs. I just came across this review of the book on Guy Kawasaki’s blog. He included a picture of the book with his post-it notes and comments in the pages – check it out, it’s worth the visual.)

And here’s where the inspiration comes in:

I’d say determination is the single most important quality in a startup founder. If the founders I spoke with were superhuman in any way, it was in their perseverance.