I always enjoy attending business plan events such as NWEN’s First Look Forum, the UW Biz Plan Competition, Startup Riot, etc… I tend not to call them competitions, and lean towards words like “showcases.” Sure the teams may be competing for a prize, but what they are really doing is showing the public the amount of work they’ve done on taking an idea from imagination to execution.

The real inspiring part of days like this is to see people striving to reach or exceed what is generally concluded as their “potential.” For every 100 people sitting in Westlake Park complaining that the world is unfair and out to get them, there was 1 person in the NWEN First Look Forum pitching an idea that they believed would create jobs and money. If I had my way, that would be the 1% / 99% ratio we should be trying to change.

This was the first year I was involved with a team (Relaborate) that made it through the process, even succeeding down to the final 5 companies. And now I’l use the term “competitor” because from the team’s viewpoint, making it from 37 to 20 to 12 to 5 really is a gauntlet, and you do feel a measure of success each time your name is called to advance.

But when you look at the other 11 companies, you can’t call it a competition, because I don’t know how any consumer would ever be making a choice between any of our products.

• BAM Testing, What’s your athletic potential.
• FanZappy, “Social-to-Store” service attracts social fans to local businesses and further converts fans to repeat in-store customer via our mobile app.
• Glacier Peak, Nature does nothing uselessly.
• Green Simian, Renewable Mobile Power.
• Grid Mobility, Connecting Power to People.
• Lacuna Systems, Expert Web Performance Management.
• MotoVolta, Inc., High Performance Electric Motorcycles.
• Mountain Logic, Halves heating and cooling costs for 100 million homeowners with central forced air by only conditioning occupied rooms.
• Phytelligence, Smarter plants.
• ProtoSec, Creating the next wave of Internet and Web vulnerability detection giving enterprise customers novel and low-cost vulnerability information about their applications, helping them meet compliance and security requirements.
• Radiate, The Future of Internet Radio.
• Relaborate, Blogging Made Easy.

I’ve said it every May since 2007 – judging the Investment Round of the UW Business Plan Competition is one of my favorite days of the year.  It’s exciting to absorb the energy and inspiration from all of these young entrepreneurs and idea generators.  Sure, most of the 38 “companies” on display won’t ever go past this day, but everyone who takes part surely takes something they learned, something they discovered, or an idea they came up with into future companies.

Enough hyperbole – Let’s talk about what I saw.

Now, the problem for me every year is that there are always these awesome engineering and medical companies that I just don’t get.  A UW med student will tell me something like, “When you combine this UW technology with this UW technology, you get a compound that completely eliminates both cancer and male pattern baldness, AND adds 4 inches to your vertical leap. We would just need 4 years and $50 million to make it work.” And since I don’t understand anything about biology, I would invest in them.  Or, they’ll show me a prototype of a jet pack or invisibility cloak.  The idea sounds cool and reasonable, and I say, “I want one of those.”  Only later do I learn why the technology is impossible.

So this year – and I apologize to the science guys – but I really only visited the companies that I thought I would really understand well enough to ask hard questions of.  And without commenting on who I through my investment “dollars” at, here are some of the ideas I liked and people I liked talking to.

1) Seattleite Magazine – I’ll mention them first, only because I met founder Jane Yuan a few months back and saw an early version of their business plan.  There could be a market for this kind of online pub in Seattle.  It’s a fun read, with lots of good pics of Seattle people and places.

2) Breadcrumb – The reverse of FourSquare, Breadcrumb notifies a person’s emergency contacts in the event that they DON’T check in when expected, dramatically improving search and rescue efforts for missing or injured people.  Perfect for hikers, campers, mountain climbers, fisherman, etc… whose parents worry about them.

3) Online Pay Station – I really root for these guys.  Think old school market meets unlimited product options. This is a company for African residents – enabling people without bank accounts or credit cards make online orders via companies like Amazon.com.  They pay Online Pay Station (OPS) cash at an OPS Internet Cafe, OPS makes a bulk buy to save on shipping, receives the order, then warehouses the merchandise until the buyer picks it up.  

4) PotaVida – Did you know that you can put dirty water in a plastic bottle, stick it in the sun, and then the sun will kill all the really nasty, dangerous organisms in the water in 6 hours or so?  I didn’t.  The problem is, you don’t *really* know when the water is clean.  PotaVida makes a little LED based contraption that tells you when the water is safe.  Go to a disaster relief location, put 100 bottles on a roof at once, but a PotaVida device on one of them, and suddenly you know when the water is safe to hand out.

5) Punchkeeper – Take all of the loyalty cards that you have to carry around, and put them in one app on your mobile phone.  Snap a pic of a QR code to get credit.  That simple.

6) Sky Fu – They call it “Self Defense for the Social Web.”  I summarize it as Radian6 for small businesses who need to monitor Yelp, Trip Advisor and the like.  

7) Pterofin – Designs and manufactures innovative wind energy devices for residential and commercial use.  I don’t get why it works better than regular turbine, but they say it does, so why not beleive them.

8) TripBox – Makes travel planning easier.  Cool demo.  Hard to describe. Maybe Widget based travel planning.

9) Digital Menu – Almost makes too much sense to work.  Rather than spending money printing out paper based menus every day, restaurants just go to this site, pick from the templates, update the menu, and Digital Menu turns it into a mobile or tablet based menu that can be shared online, across social channels, and that you can even view at the restaurant.

10) Soothie Suckers –  Kids don’t want to take herbal medicine.  So the solution – put it in a popsicle.  That’s the theory here.  For what it is worth, the popsicle tastes good.

There were a lot more great companies on display – 28 more in fact.  But that would make the blog 100 pages long.  Here’s the list of the companies that made the next round.  But congrats to everyone who made it from the initial 100+ down to this final 38.

The Northwest Entrepreneur Network hosted one of its signature events last Wednesday, the spring version of First Look Forum.  (For those who want to know the whole format, check the appendix at the bottom of this post.)  In a nutshell, it’s a several month process that brings 12 entrepreneurs who have never pitched their business before, together with 60-70 VC’s and Angels.  Very cool format. 

This year’s group of 12 finalists spanned the gamut from fusion to chocolate.  My colleague Shelley Whelan already posted a nice follow-up on the NWEN blog.  But Alissa Johnson from the Alliance of Angels had a clever idea for a blog post, and allowed me to steal it from her, since she is too busy at VCIC to put it together.  Her idea – explain how if all of these companies became successful, how might one use all of them in a single day.  So here goes, using me as the example.

As soon as I woke up, I’d log into the dashboard of FLF winner Guide Analytics.  The company helps patients manage heart failure and avoid hospitalization through the continuous monitoring of edema.  Patients wear a bracelet around their ankle, measuring ankle size and relaying that info via bluetooth and wireless devices to the main computer.  Now I don’t have heart problems, but I’d be able to check on my aunt’s status, and make sure everything was ok.  The system will tell us when she is in danger of a heart attack, and lets us get her to the doctor before it happens.

I’d get in my car and head to work.  I’d stop for coffee first at a certain store, because I could get some valuable points to help me in the BodSix game I was currently engaged in.  (This is still in development, so I can’t share too much here.)  But soon I’d get into the office and say hi to the staff.  One of my team members, a woman getting married soon, would be choosing bridesmaid dresses from Little Borrowed Dress. Her bridesmaids would be able to rent these silk dresses for $75, rather than spend $230 for some taffeta number they’d never wear again anyway.  Our happy bride-to-be is also showing pictures of the bridesmaid dresses to her fiance, who lives in New York, on their private page at SnuggleCloud, a personal online space for couples.

We’d probably have a client coming in that day, and undoubtedly, there’d be some furniture issue in some hard to reach angle of the room.  Thankfully, we’d have our new Flipout Screwdriver, which would enable us to fix it.  Before the client got to our office, we would have downloaded the reports from ReadyPulse, a company that provides insight on what works best to grow your audience on Facebook and Twitter.  Our client – a software company – is probably using AgileEVM, a product that helps with agile software developments.

We’ll want to take the client to lunch afterwards, so we’ll check UrbanQ a way for us to discover places and experiences we’ll like, from our mobile device.  UrbanQ might recommend a nice waterfront restaurant, where we notice all the ships using Fusion Engines developed by Woodruff Scientific.  These ships are actually sing sea water and the elements inside of it, to generate fuel through fusion.  The restaurant is great.  So I log into Meevine and ping my friends about it.  Hopefully we’ll all be able to pick a date soon.  

It was a long day.  So when I get home, I open up a high-end chocolate bar I got from Chocolopolis, something that goes nicely with my Spanish Rioja, and that I’ll probably pick up more of for the dinner party I’m throwing later this week.  I end the day reading a book about baseball history that had been turned into an iPad application by Appitude.  I use this app because I get to do more than just read the book – I’m part of a virtual book club, chatting on my iPad while scrolling through the text and pictures.  Some of my real life friends happen to be reading, and I’m connecting with other baseball history fans. 

That’s how I’d be able to utilize all the businesses who made it to the finals of this First Look Forum.  I encourage you to go check out the companies who already have products live, and signup to get ont he beta list for the others.

———

Appendix: About First Look Forum

1. Over the course of several months, about 70 entrepreneurs, who have never pitched their business plan to an investor group, apply to FLF.  Everyone who applies gets some business plan coaching from NWEN’s Exec Director, or someone from the investment community.  
2. A screening committee then whittles those 70 plans down to 20.  More coaching.
3. Those 20 get parsed to 12.  Still more coaching.
4. Then the even itself.  Each of the 12 gets 5 minutes in front of the most influential group of VC’s, Angels and investors in the Puget Sound.  5 finalists are chosen for 2 more minutes of pitching, and then a judging panel selects a winner.

There are a lot of semi-useless social media tools out there.  One that I am liking more and more is Paper.li.  

In a nutshell, it takes your Twitter feed, and distills it into a front page of a newspaper, so you can scan all the important topics you care about in one shot.  It even splits them into categories like Sports, Media, Politics, Technolgy, etc….

Now, it only grabs feeds from the people you follow, so if you are one of those “uber important” types that only gets followed themselves, then it’s not going to be much good.  And if you follow a bunch of people that tell you about their sandwich, then you’ll have a boring paper.li as well. 

Here’s part of the Monday morning grab from http://paper.li/aboyer

Check out these images from the Huffington Post. I have no idea if developing a bus to drive OVER cars is technologically possible, but it’s an interesting notion to think about.

You’d be hard-pressed to find someone with a tougher executive position than Carol Bartz.  As the CEO of Yahoo, she had to step into the shoes of the Founder, fix the mess he caused with the board, figure out what her company actually “does” these days, and then decide how to compete in ecosystems dominated by Google, Microsoft and the sports and entertainment giants.  So when I heard the UW Foster School of Business was bringing her into town for their “Redefining Leadership” series, it was a can’t miss opportunity.

First impression – I was shocked and pleased by how personable and affable she is.  It was a fairly conservative environment – a large auditorium and a moderator doing Q+A – but she was candid and downright funny.  The moderator did not take us through much of a story arc in his line of questions, so rather than recap the event in paragraph form, here are a few bullets that stood out.

On teamwork:

(paraphrase) Business schools put too much emphasis on “teamwork.”  Individuals have different goals, even within a team.  It’s unnatural to think that in a team setting, you can all be motivated by the same thing.  Learn teamwork on a sports field instead.

On Corporate Strategy vs Executing on Tactics:

It’s tempting to go into a firestorm and put your head down, and ignore what the road looks like outside the fire.  3,4, or 5 year plans never work.  In fact, any plan that you had in December is now wrong.  But there are always people in a company who love thinking long term about what the company should be doing down the road.

You need to build your business so that 70-80% is stable and going to be consistent, but that 20-30% can change and be changed to adapt quickly to what is happening around you.

Thinking is a skill.  Understand when you have someone who is good at it.

On Joining Yahoo:

Yahoo had been working with tons of data, but hadn’t actually made any real decisions for a while.  She needed to make a couple of decisions quickly to shake people up.  She also found that people were hungry for interaction, or even communication, from the executive level.

In her first 5 weeks, Bartz held 45 minute conversations with staff members, and always ended the conversation with, “Who else should I be talking to?”  From this, a clear pattern of thought leaders and key influencers developed, which didn’t necessarily map to an org chart.  The standout members at Yahoo were recognized by multiple people she talked to.

The Yahoo Ad campaign was meant as much for the staff as more the consumers.  She needed to show the staff that Yahoo was relevant, and being on national TV helped that.

On Change:

If you look at life, the biggest mistakes are always the things you didn’t do.

Change is a muscle.  If you don’t exercise it, you lose the ability to do it, or do it well.

You need to have a good understanding about what in your business needs to stay stable, and what parts can change.  Know that your people need to be able to handle that.  

You need people who can be interrupted without negative effects.

On Culture:

You have to pick your battles and understand what is really important.  Your culture is secondary to having a company that a) Makes Decisions, b) Moves Forward and c) Gets Things Done. You can’t sacrifice any of these things for “company culture.” 

On Identying Strong Performers, and Career Development:

Think of a bell curve.  It’s really easy to spot the folks on either extreme.  Your top performers easily stand out.  They volunteer for projects, they are the ones you think of first to solve a problem for you, and they tend to self-select and join in a pack together.  So, they are pretty recognizable.  

But the harder thing is to find the people with that same potential, and stretch them to turn them into top performers.  They may be quieter, or not on the projects that get as much recognition.  So it’s important to find these folks and put them in positions where they can become stars.  They aren’t the average employees making the most noise – so you need to look hard for the hidden talents and figure out ways to cultivate these quiet ones with potential.

On the other end, you need to be direct and clear with the ones who slow you down.  They’ll perform well somewhere, it’s just not necessarily in your company.  The worst thing is that the rest of the team knows when an employee is a bad fit.  and it makes management look bad when they don’t help them move on to a place where they can be more successful.  You do everyone a favor when you cut them loose and help them find a better fit.

Every employee should be involved with sales.  Sales is not a dirty world.  You simply can never really understand what your company does until you actually try to sell it to someone.  Understanding why someone says “no” to you will help you figure out what your company can do better.

On Personal Life vs A Business Life

Yahoo delivers 100 Billion emails a day, and filters out another 600 Billion spam messages.  When their servers go down, it’s a big deal.  But, Yahoo doesn’t cure cancer.  It’s a web site.  Your job is probably not curing cancer either.  Enjoy yourself, experiment, laugh – don’t pretend you are more important than you are just because you have a boss or client who wants something.  Chances are pretty good the world will go on without you completing that one task you are stressing out about.  

Don’t add pressure to yourself by thinking about the “would haves, should have or could haves.”

On Developing Employees:

Annual reviews are a waste of time.  Yahoo quit doing them.  Instead employees and managers are tasked with making sure they have a substantive conversation at least once a quarter.

An annual review is useless because you have an opportunity for feedback, and have to sit on it for 6 months.  You wouldn’t wait 6 months to reprimand your puppy for going to the bathroom in the house, why treat a human that way?

Difference Between Succeeding in Technology vs Other Industries:

At the end of the day, business fundamentals are the same no matter what.  a) Understand what your customer wants, and deliver it.  b) Measure your success and failures.  c) Recruit and cultivate talented employees. 

I’m not writing a review of the iPad.  Since I’m not a tech blogger, I’ll leave that to JetCityDigital, Mashable, Jeff Jarvis, and AllThingsD.  (And yes, I did put Ron Schott in the same sentence as Walt Mossberg, so remember this post in 10 years people.)

I don’t want to debate if the iPad is a laptop killer, or simply the media companies’ attempt to put us all back in a walled garden.  I have a much simpler question.

In every publication I read, articles focus on 10% unemployment, a looming deficit, and the fact that we’re all doomed.  So why on earth do we need a laptop that’s not a laptop, or a phone that’s too big to be a phone, or a $500 way to read magazines that still cost $5 per issue to download?  The iPad seems like something we should have gotten in 1998, when we all used $100 bills as post-it notes.  But in a recession?  Who needs to drop that kind of coin on a device that serves a secondary function for all the functions we already have solutions for?

I got the iPod.  I got the iPhone.  I get Android.  I get the iPad in Tokyo or Shanghai.  I may even get the iPad in the U.S. in 2 years, or if the content was all free.  But I have to admit, I’m not sure how far “shiny” and “new” takes you in 2010 middle America…  I’m looking forward to being wrong on this…  

I was going to resist sharing any public thoughts on the end of Rob Glaser’s 16 year reign at the head of RealNetworks.  But as I read through some of the comment boards, trolls and scrubs who have never started anything in their life have taken some cheap shots, so I’m going to give my take.

In 1994, we had 14.4 modems and something called Mozilla to surf the web.  Microsoft was finally rethinking their now infamous decision that the Internet wasn’t a place where they should concentrate. And Glaser looked into his crystal ball and said, “You know what, I bet some day we’re going to use our computers to watch programming more than we use our TV’s.” You have to remember, that back in 1994 that idea was akin to someone today saying, “I’m going to be able to take this IP signal from my watch and make it a holographic projector that plays HD signals against blank walls at 1080i.” 

Now, not every decision was right.  And plenty of smart people were under-utilized.  I was just a young Marketing Manager, and never in the inner circle of decision making, so I have little insight, and sometimes fell victim, to some head scratching decisions.

But at the end of the day, Rob built an industry from scratch, weathered recessions of 2001 and 2009, had to battle the full force of Microsoft’s vengeance when they realized it was a space they needed to be in, distributed more than a billion RealPlayers without much of a marketing budget, took his company public, changed his business model on the fly from software to subscription, and had to balance the public’s desire for free media vs the music industry’s desire to extort money from all of us.  That’s a pretty complex game of Lemonade Stand he had going.  Go through and name all the companies that you’ve seen in your lifetime that started before (or around) Real and have been more successful while staying independent.  Microsoft, Apple, Google, ebay, Amazon, Yahoo.  You can’t say AOL – they sold out.  Skype – sell out.  YouTube – sell out.  Netscape – gone.  Napster – gone.  Maybe Adobe and Oracle? Sidewalk – gone.  Expedia came out of Microsoft and sold out to IAB, so they don’t count.  I’m sure there are a few more, but the list is pretty small.

It would have been easy for Rob to sell to Microsoft in the late 90′s for a few billion.  We all probably would have made a few more short-term bucks.  And Microsoft would have had to spend way less money than they did over the next decade systematically trying to destroy Real.  But he didn’t sell, so we all took our sticks and bows to fight against the machine guns – and we did pretty well.

I have a lot of anecdotes about Rob that don’t need to be shared here, but I’ll sum it all up with this.  If you have the pleasure to run into him at an event, introduce yourself and say hi.  He’ll grill you on your business and ask 100 questions abut what you’re working on.  The conversation will move so fast that it will be hard to keep up.  But you’ll understand how smart the guy really is, and you’ll see that he simply wanted to win.  

My guess is that around the halls of RealNetworks this week, people are looking forward to change.  They see a happier, more corporate, less politically incorrect place where they won’t get yelled at for mistakes.  But the problem is that most of those people weren’t there in the 90′s.  To them, there’s always been audio and video on the Internet, and they simply don’t get why Real was such a big deal.  They don’t understand that they worked for the Web’s very own Marconi, they just want to complain about his flaws.  But around the city, you see Real Alumni collectively tipping our caps.  And I know a lot of people say this, but I still have more friends than I can count from my days at Real.  The people were there (with some notable exceptions) were fantastic.  Smart, gifted, ridiculously focused and cool.  There was something about that company, especially back in the 1990′s, that drew great people who were glutton for punishment.  I remember telling my dad when I first started there, “It’s pretty scary.  Every meeting I feel like I’m the dumbest guy in the room.” 

No one is perfect, and like everyone Rob has his flaws, but it was a real professional privilege to work down the food chain from someone who built an entire industry.  

I’ve been meaning to endorse / promote / plug this company for awhile.  I’m a big fan of The Sustainable Group, an organization run by Brant Williams.  In a nutshell, imagine if all the binders, notebooks and other office items you buy, lose and throw away could be made of bio-degrabable materials instead of plastic.  Now imagine that there are even more benefits.  

Rather than try to convince you, I’ll just provide a link over to their web site.  Check it out, and email Brant if you have ideas for how to get the word out.

Well, I finally succumbed to the pressure.

Since it launched, I’ve seen proud and cheerful owners of the iPhone gleefully show off thier little toy.  In bars, in meetings, in lines at Starbucks, they tauntingly stick it into your face, showing you all the magical things it can do.

I resisted.  

I stayed true to my core Blackberry.  I like the Blackberry.  It’s easy to use.  I don’t need real time stock ticket updates or the best way to walk from the Space Needle to Palace Kitchen.  I need a phone and text, and maybe some Internet.

Saturday, something snapped.  

Suddenly I realized that the phone had changed.  I knew it before, but I finally admitted to the analogy that we’re in the mobile version of the shift from VCR to DVD, and I still owned a VCR.  And there is no reason to buy another souped up VCR.  It is no longer an issue of iPhone vs Blackberry.  It’s become an issue of mobile devices in 2009 and beyond, vs mobile devices in 2008 and prior.  I knew all of this already, but some light piece of straw finally made that camel’s back break.  And the camel asked for an iPhone.

Now I’m simply a junior member of the cult.  I look for and will listen to the teachings of those original iPhone disciples.  And I have to admit to myself that I’m more than a little excited to play with all the toys and gimmicks.  

Now, I haven’t yet stood in line and condescendingly scoffed at those simple “iNots” walking around with their pedestrian devices.  But I’m sure one day, as I breeze through Google Maps or order a video before boarding a plane, I’ll have that smug look of a full fledged cult member.  

If you are an iPhone Davidian and have a favorite “must-have” application, please let me know.