Category Archives: venture capital

HOW HYPERLOCAL ECONOMIES EVOLVE

By: William Arrington

The original intent for this follow up to Hyperlocal Social Economies (HSEs) was to focus on how businesses can participate in these targeted consumption markets. I think this is an appropriate time to discuss how HSEs may evolve. Before diving in let’s quickly recap what comprises an HSE market:

  • A group of consumers with similar lifestyle and consumption patterns (i.e. friends)
  • Common set of goods/services consumed by the group
  • Competitive market for said goods and services
  • Goods and services are geographically unbound

Continue reading

Advertisements

1 Comment

Filed under angel, angel capital, angel investor, big money, Economics, Entrepreneur, Entrepreneurship, Entrepreneurship and Politics, Financial Markets, Free Trade, Innovation, Innovation and Culture, Internet Marketing, Marketing, Relationships, Startup, startup company, vc, Venture, venture capital

WILDERNESS

by John Jonelis

.In Chicago, we enjoy something few high-tech centers can boast—easy access to a primal wilderness—a vast paradise, ancient and unspoiled—unique in the world and very special.

Whenever I’m in this place, I love the world just as I find it.

A short commuter flight from O’Hare Field whisks me to Winnipeg International Airport. Then a short local flight delivers me to an isolated airstrip carved out of an untouched forest—hundreds of miles from roads and crowds. And I experience absolutely no jet lag. My destination is located within my own time zone! This amazing opportunity is accessible due to technology, and I intend to enjoy it as often as I can!

Canadian Shield shown in red

My favorite location is Manitoba at the 55th parallel—as far north as Alaska’s Aleutian Islands and the Bering Sea—as far north as Omsk. North of that grow stunted trees in permafrost, but here tall Pine and Aspen surround the lakes. Uncounted and untouched waters flow through this region—a massive system of rivers and lakes, draining into Hudson Bay. Here it is not uncommon for the ice to measure four feet thick as late as May. I come in June.

Boreal Forest—the crown of the Northern Hemisphere

Mark T Wayne kindly explained to me the geology of this place that I love so intensely. This is the unique and magnificent intersection of the Canadian Shield, and the Boreal Forest. The Shield is a vast area, surrounding Hudson Bay, where, during the last ice age, severe glaciation removed everything down to bedrock. The Boreal (also known as the Snow Forest) is a predominantly conifer range that rings the northern hemisphere like a crown. (In Russia, it runs through Siberia.) Canada’s intersection of Boreal and Shield makes up the largest unspoiled wild area in the world.

Overstressed Chicago entrepreneurs need a place to burn off the tension of a high-risk high-reward lifestyle. Some find solace at the golf course. Others in spectator sports, television, or booze. I prefer the stunning spectacle of God’s creation in the raw. And I bring my fishing rod!

The great Northern Pike reigns in these waters and grows to enormous proportions! Nobody stocks these lakes, but the waters teem with these ferocious predators. Conditions are just as they’ve been for thousands and thousands of years, and unlike other regions of the globe, Manitoba means to keep it that way. No live bait. Barbless hooks. All fish returned to the water unharmed. That transforms an idle pursuit into a challenging alternate activity for budding business tycoons.

Vladimir Up Yours Putin finds time to enjoy the Boreal in his native Russia—that is, when he’s not busy overrunning free countries or thumbing his nose at our great nation. If he can get away for such activities, I think Chicago entrepreneurs can do the same.

I’ve experienced many good fishing lakes in Canada’s provinces. This is my favorite. Knee Lake is a 50-mile-long body of icy water punctuated by rocky reefs and 150 islands. Only one small lodge operates here. They call it North Star Outpost and to me, it’s as close to heaven-on-earth as you can get.

Loop Lonagan, Mark T Wayne, and Donatis Ludditis from my magazine surprised me with tickets for this excursion. And I am immensely grateful.

Here, a man indulges in the elemental fight against nature and—for a precious time— entirely escapes the Chicago rat race!

Here, a man lives off the fat of the land, and—in a delightful exception to the catch-and-release rules—harvests fat walleye for that exquisite tradition known as Shore Lunch.

Nothing tastes better than fresh walleye cooked over pine logs. This is beer batter—my favorite.

In this ecosystem, nothing goes to waste. After that wonderful meal, I’m back hunting big pike.

Without warning, a strong strike sends a shiver up my elbow and shoulder. I feel vital life at the end of my line. The weight of it leaves no doubt that this is a trophy fish. Then a sharp pull almost yanks the rod and reel from my hands and the water boils!

I catch my breath and strain against the fish. This monster goes through all the escape behaviors learned over a life of perhaps 50 years. It jumps clear of the water. It runs deep. It rolls in my line. It thrashes, tugs, and splashes the surface of the water. Every time I catch sight of this fish, it strikes me with awe. This one is strong and thick. As they say up here, it has shoulders!

It charges the boat and I reel fast to keep my line taught. A moment of slack and the prize will be gone. It swims underneath me and I plunge my rod deep into the icy water and then work it around the bow. When I finally bring this fish to the side of the boat, it turns away and peels line off my big round reel at will.

This battle repeats three times. A fish this big does not succumb easily and expends all its energy before surrender to the net.

Quickly, I lift him into the boat. The barbless hook falls from its mouth. A hurried measurement—46 inches! One snap of the shutter and my prize is back in the water.

A fish this size is delicate and often will not survive the fight without help. Holding it by the tail, I move its body back and forth, flowing water through the gills. A minute or two, and the great northern pike strokes its tail free of my hand and swims away with power. I hope to catch that one again next year.

But for now, I must catch my own breath. This primal battle in God’s wilderness leaves me stunned and in awe and immensely satisfied.

Read – BEST GIFT

 

This is North Star Executive Outpost on Knee Lake, Manitoba, a protected pike sanctuary.

Website – northstarresort.ca

Phone – Talk to Hope Levenhagen at 800-563-7151

Email – hopelevenhagen@northhavenresort.ca

 

Charts and Maps—Wikipedia.

Photography—John Jonelis.

Chicago Venture Magazine is a publication of Nathaniel Press www.ChicagoVentureMagazine.com Comments and re-posts in full or in part are welcomed and encouraged if accompanied by attribution and a web link. This is not investment advice. We do not guarantee accuracy. Please perform your own due diligence. It’s not our fault if you lose money.
.Copyright © 2017 John Jonelis – All Rights Reserved
.
.

Leave a comment

Filed under angel investor, Canada, Chicago Startup, Chicago Ventures, Entrepreneur, Entrepreneurship, fly fishing, Startup, startup company, vc, Venture, venture capital

INVESTORS LOSING PATIENCE WITH PIVOTS

by Howard Tullman

There’s no polite or easy way to say this, but winter is on its way in the venture world. It’s getting tougher and tougher for startups caught in the lukewarm limbo between ideas and invoices to get their early backers to up their bets especially when it’s not clear that they’ve found a viable business model and/or a way to stop the bleeding sooner rather than later. Too many pivots with too little to show for the dollars down the drain and pretty soon no one wants to hear your, “someday soon,” story or your next grand plan.

dice

And if you’re not breaking even, no bank will look twice at your business or your balance sheet. This change isn’t restricted to the unicorpses in the Valley; it’s going on in every village where waves of wishful thinkers are starting to wonder what hit them.

My sense is that the smart investor conversations taking place today aren’t very often about the company going big for the gold or about the current investors doubling down so some startup can shoot for the stars. These increasingly cranky chats are less about excitement and enthusiasm and much more about ennui and possible exits. Because the two things that some early investors and every VC understands are sunk costs and opportunity costs.

While the entrepreneur is sweating survival, the investors are trying to decide whether their incremental dollars would be better spent on a new deal elsewhere. These are the days when easy money gets hard.

Those great gluten free sugar cookies (from the hip new bakery down the block that just shut its doors) are tasting more like ashes in their mouths and they’re asking themselves how they ended up sitting in a room with no doors feeling like some sucker after the circus left town.

The unhappy folks who are still sitting at the table (more likely associates now than the partners who got the ball rolling) aren’t talking about how much more money they can put to work; they’re trying to figure out how little additional cash they can put up to preserve what’s left of their position.

cash

Everyone is telling you that they’re really not inclined to do much of anything at all if you can’t drag some new money from outside players to the table to help set the price and get the next round started. Flat valuations in times like this are the new “up” rounds and there are down rounds galore.

This is a Plan B world at best and the down and dirty talk on the limo ride to LaGuardia almost always includes whether to also shoot the CEO while they’re in the process of trying to clean things up and save a little face. So if you’re the one on the bubble, forget Plan B, and get started on what I call Plan C. You need to get a head start on talking about the tough choices and critical changes that need to be made.

It’s about figuring out what immediate actions you can take that will make a difference before they turn the lights out. You can have results or excuses, not both. Focus on facts rather than futures if you want to be there when things turn around.

And forget about playing the blame game – no one cares.

Plan C is all about choices: contraction, consolidation, combination, conversion, and concessions. The last C is closing the doors and that’s not a sight that anyone wants to see. So find out which of the C’s makes the most sense for your startup.

contraction

Contraction

Just suck it up and admit it. You can’t be all things to all people and no one ever has been. Focus on what sets you apart and what represents the best prospect of a long term sustainable competitive advantage for your business and forget everything else. Don’t apologize, don’t try to explain, just buckle down and get the job done. The recent launch of UberEats in Chicago (as an “instant” meal delivery service) and its almost immediate abandonment of that commitment is a good example of knowing when to hold ’em and when to fold ’em. It doesn’t take a genius to figure out that it’s pretty stupid to open the umpteenth home meal delivery service in Grub Hub’s hometown.

Businesses that scale too soon and which are a mile wide and an inch deep are doomed for many reasons, but the clearest and most telling is that they can’t cost-effectively engage with, support, or connect to their customers because the customers are simply too few and too far between. It’s critical to nail it before you scale it and, if you’re grossly overextended, your business is going nowhere.

consolidation

Consolidation

Shut down the stupid San Francisco office sooner rather than later. You had no business being there in the first place and the fact that you doing no business there ought to speak for itself. San Francisco may be the most overheated and least representative market in America. Everyone there drinks the KoolAid for about 10 minutes and then moves on. Building a new business there is as slippery and unstable as trying to nail Jell-O to a tree.

New York should be next on the list. NYC isn’t a city – it’s 5 or 6 different marketplaces all mashed together – with a million people just waiting to eat your lunch. Your business expansion needs to be driven by actual demand, feasibility and real opportunities – not by some investor’s fantasies and/or fables about life in the Big Apple foisted on the public by the media and by people barely making it in Brooklyn.

combination

Combination

Take a careful look around and see who else in your space (or adjacent to it) is doing things right and see what the prospects of some kind of combination may be especially if your market itself continues to be more cluttered and competitive. We hear constantly that the shared/surplus economy or the “Now” economy continues to grow fueled by millions of millennials holding multiple jobs. But tracking the gig economy isn’t quite that easy. While the number of multiple job holders has in fact grown dramatically, the percentage of the number of people so employed as compared to the total number employed has been flat or down over the last decade.

We had a great example of a timely and smart combination recently in Chicago where Shiftgig and BookedOut got together and decided that there were all kinds of economies and opportunities in a merger as well as the sheer relief in knowing that they could stop trying to beat each other’s brains out in the market. They are both players in the increasingly crowded space which the Commerce Department is trying to define as “digital matching firms.

Shiftgig was bigger and better established, but BookedOut had a lot of momentum and was gaining important traction in the experiential marketing sector. Now instead of spending time building duplicative back ends and other redundant systems and offerings, they can bring a single story to the market in a cleaner, more efficient and less costly way. This is exactly the kind of story that all of their investors wanted to hear.

It’s not easy in any market to attract the technical talent, the motivated sales people, and the operations folks that you need to grow quickly and a well-planned and thoughtfully executed combination can demonstrably accelerate the process. You need to be careful to make sure that the companies’ visions are aligned and that the problems they’re addressing are similar and that the cultures of the businesses (and the leaders in particular) aren’t in conflict.

These things aren’t made or broken in the board room when the papers are signed, they rise or fail in the implementation and the execution. But in today’s world, it’s often a lot better and smarter han trying to go it alone.

conversion

Conversion

Sell some of your stuff to someone else. You may be great at lead generation and lousy at closing the sale once those prospects show up at your door. Or you may be a great sales organization that sucks at fulfillment and customer service. When you look at your skill sets and your customers, users, clients, etc. through a different lens—looking at them as potential assets to be converted or sold to some other enterprise, it helps you see more clearly exactly what kind of business you’re building. It may make the most sense to look at your company as a conduit or an intermediary and not as a one-stop shop trying to meet all the needs of the marketplace. You’ve got to play to your strengths and build on those if you’re planning to stick around.

concessions

Concessions

Maybe your pricing made sense in some early fever dream where you were the best and only player in the space, but now there are fast followers and clones everywhere you look and their offerings (at least on the surface) look a lot like yours. Once your customers start talking about price, you’re on a very slippery slope.

 

Conclusion

Here’s the bottom line. In the long run, you can’t save your way to success and it’s no fun to fire your friends or postpone your pet projects. But if you don’t survive during the difficult times, you and your business won’t be around to savor any success down the road. Do what needs to get done and do it now.

 

Big Gulp from Howard Tullman

About the Author

Howard Tullman is the father of 1871 and Matter—the huge Chicago incubators.

This article appeared previously in News From Heartland

.

References

Shiftgig

BookedOut .

.

Chicago Venture Magazine is a publication of Nathaniel Press www.ChicagoVentureMagazine.com Comments and re-posts in full or in part are welcomed and encouraged if accompanied by attribution and a web link. This is not investment advice. We do not guarantee accuracy. Please perform your own due diligence. It’s not our fault if you lose money.
.Copyright © 2017 John Jonelis – All Rights Reserved
.
.

Leave a comment

Filed under 1871, angel, angel capital, angel investor, big money, Chicago Startup, Chicago Ventures, Economics, Entrepreneur, Entrepreneurship, Heartland Angels, Innovation, Invention, investor, Startup, startup company, vc, Venture, venture capital

MILLENNIALS ARE BECOMING OBSOLETE—ALREADY!

by Tom McBride

The first time I heard the word “obsolete” was when I overheard my father talking to a stranger on a bus. They were speaking about a new expressway that the city had built, and the stranger said, “That thing was obsolete before they ever opened it.”social media MS OFFICE

I was impressed. I went home and looked up the word. And in time I realized the stranger was right. The builders of the new road had put in four lanes but should have put in six. Soon enough, traffic was snarled, and eventually cars started avoiding the route altogether. Then the side streets became overcrowded with autos. The whole thing was a mess.

“Obsolete” was a terrible word. It still is. If something or someone is obsolete, then he, she, or it no longer works. He, she, or it languishes in irrelevance. And then he, she, or it comes to be avoided altogether. Everyone would rather take the side streets. Obsolete things are just in the way. They are like old professors on college campuses. The young sneak behind buildings in order to avoid them.

Today’s Millennials are not obsolete—yet. Born between 1980 and 2000 they came to this planet during a fairly prosperous time, so they represent a population glut. There are already more Millennials alive than Baby Boomers, who constituted the mother of all population explosions.

percent of workforce MS OFFICE

Corporations are working overtime to figure out how to market to this bunch of fickle young consumers, who have an embarrassment of choices. Human resources directors are wondering how to motivate them in the workplace. They are praised for wanting a more healthy balance between work and life (some of them think overtime is evil), and they are feared, almost, for being digital natives. Unlike the rest of us, they grew up high-tech, so what do they know about cyberspace that we don’t?

phones and tablets MS OFFICE

Others can’t stand them—why won’t they look us in the eye at Starbuck’s instead of staring at their phones all the time? And a few of us older people see them as symbols of a world we don’t want to have much to do with. The whole idea of “looking something up on your phone” (which has more data than your local public library) seems repugnant somehow.

infographic MS OFFICE

But there’s one thing these non-obsolete Millennials can’t avoid: In time, they will become obsolete, like the city expressway of my childhood. They will seem irrelevant. They will be in the way. Young people will hide from them. The new generation will have to work around them.

The question, though, is how can Millennials tell when they’re becoming outmoded?

startup venture MS Office

Like, invest in my startup, huh?

The answer is simple. It’s when they start beginning sentences with “These kids nowadays…” I’ve heard early rumblings of this sentence, as when an older Millennial said of younger Millennials, “These people just take wireless computing for granted.” He was too young to say “these kids,” but give him another ten years.

loft MS Office

The truth is that older Millennials are already far enough along to have teen-aged children. A Millennial born in 1980 is now thirty-six and may well have a fourteen-year-old around. In just ten years that will be true for Millennials born in 1990. They will enter that most dreaded source of becoming old-fashioned and resented: parenthood. And then you will hear such sentences as these:

“You kids have it so lucky. We actually had to flip switches to get lights on in a room—none of this decadent voice-activation stuff.”

“You’re lucky, you kids: When I was your age we couldn’t get our genes edited at birth to make us better-looking.”

robot MS Office“When I was your age, we didn’t have to pay extra to get an actual human being to teach us calculus—unless you kids can learn on a machine, you’re going to bankrupt me.”

“Yes, that’s right, kids. Only when a political party isn’t in power does it object to big government deficits. That’s the way it’s always been. Don’t think that you kids can change it!”

“You kids just trust technology too much. I don’t want to have a robot remove my appendix even if it is cheaper.”

Do you hear the notes of weary impatience in these sentences? Do you detect the tone of resentment in the voice of older people when they encounter the youth and idealism of their kids? Do you sense the envy of the young? Do you pick up on the fatigue of bearing parental burdens?

time magazine MS OFFICE

Yet every one of these sentences will be spoken by…a Millennial. They will be speaking to their offspring, which will be called something like Generation Alpha.

And what about the rest of us—old Boomers and Gen X types? Most of us will be even better than obsolete. We’ll be dead.

But don’t you feel better knowing that these young whippersnappers today will also go the way of all flesh? That’ll be true even if, as predicted, people will be immortal by having their brains downloaded into a computer.

Eventually, even the computer will become…obsolete! Ha!

Cell Phone Girl MS Office

Tom McBride is co-author of The Mindset Lists of American History

and The Mindset List of the Obscure,

and the author The Great American Lay: An All Too Brief History of Sex.

He lives in southern Wisconsin.

Graphics from MS Office.

This article appeared in News From Heartland

.

.

Leave a comment

Filed under angel, angel capital, angel investor, App, Conflict, Economics, Entrepreneur, Entrepreneurship, Entrepreneurship and Politics, Information, Innovation, Innovation and Culture, investor, Marketing, Mobile App, Mobile Marketing, new companies, Social Entrepreneur, Social Media, Startup, startup company, vc, Venture, venture capital

CHICAGO TECH’S NEXT CHAPTER

At Tempus, Ocient and Catalytic, Chicago’s most prominent entrepreneurs are moving on to their next big thing.

by Jim Dallky

Chicago tech is growing up.

One sign of a maturing tech ecosystem is the success of a city’s serial entrepreneurs, and recently we’ve seen some of Chicago’s most high profile founders and technologists move on to their next companies, and tackle big industries like the Internet of Things, cancer research, and artificial intelligence.

Uptake - ChicagoInno

Look no further than Groupon founders Brad Keywell and Eric Lefkofsky. Keywell brought Uptake1 out of stealth in 2015, and the fastgrowing IoT startup has already raised $45 million at a $1.1 billion valuation. Lefkofsky left his CEO role at Groupon last November and, as we first reported in July2, has since been working on Tempus3, a healthtech startup that’s “building the infrastructure to modernize cancer treatment.”

 

Ocient - homepage

Also in July, Cleversafe founder Chris Gladwin, who sold his data storage company to IBM in 2015 for $1.3 billion, unveiled4 his next startup Ocient5. Gladwin has yet to make Ocient’s product plans public, but the software company expects to “ultimately hire hundreds of local employees.”

 

pushbot - website

Sean Chou, the former CTO and employee No. 2 at Fieldglass—which sold to SAP for more than $1 billion—recently, launched Catalytic6, a startup building chatbots for businesses. The company’s platform, Pushbot, helps enterprises “build, run, and improve your processes.”

 

bright - website

You can also look at Jeff Judge, the founder of Signal (acquired by BrightTag in 2014) who’s now building business metrics platform, Bright.7

Kickstarter cofounder Charles Adler is giving entrepreneurs, creatives and makers a better place to work with the Center for Lost Arts8; Motorola veterans are spinning out to create new hardware startups like John Renaldi’s “invisible wearable” company Jio9; along with many, many other founders who are on to their next project and have committed to building in Chicago.

“Certainly, as a community, I think we are maturing,” said Illinois Technology Association CEO Fred Hoch. “It’s being driven a lot by those serial entrepreneurs that are coming back and doing their next thing.”

Hoch described how the city experienced an “excitement period” 3-4 years ago where a lot of startup activity was taking place but, “a lot of bullshit was being developed…things that don’t have a long-term revenue stream.” Chicago’s strength as a tech city is in B2B, Hoch said, and Chicago tech has started to get back who it is as a community. “What’s happened over the last 18 months is that we’ve come back to realize who we are,” he said. “[Entrepreneurs] are not thinking about dog-walking apps. They’re thinking about big things that affect businesses nationally and globally.”

1871 CEO Howard Tullman added that Chicago also has a handful of who he calls “benchers,” successful entrepreneurs who are taking some time off but will likely “be back in the action in a reasonably short time.” This list includes Fieldglass founder Jai Shekhawat, AKTA founder John Roa, and Roger Liew, the former CTO of Orbitz. Tullman also said that 1871 isn’t just full of first-time founders. There are dozens of serial entrepreneurs working out of the Chicago tech hub.

“People don’t understand that the 1871 members aren’t remotely all first timers,” Tullman said. “We have several dozen serial entrepreneurs working here and building their next businesses who are smart enough to avoid making sizeable infrastructure and other capital commitments until they determine whether the dogs will be eating their new dog food…we are definitely seeing a wave of more seasoned, more talented and more aggressive serial entrepreneurs—all working in Chicagoand, largely using their own resources to start the next group of great tech businesses right here.”

Of course, as Chicago’s tech community matures, it doesn’t come without growing pains. Some of the city’s most prominent startups have gone through layoffs in recent months, with Avant firing 60 employees and Raise trimming 15% by cutting 45 people. And the city is still well behind other markets like New York and Boston when it comes to total venture funding.

tempus - website

Tempus

 

But Chicago is proving to be a city where entrepreneurs are willing to double down after successful exits, and that’s good news for the future of Chicago tech.

“We’ve come a long way in the last 10 years,” Hoch said. “[Entrepreneurs] are choosing to stay and be a part of this community because it’s a strong community now.”

 

About the Author

Jim Dallke is the Associate Editor of ChicagoInno of Streetwise Media, where this article previously appeared.

This article appeared in News From Heartland

 

 

Links cited:

Graphics and logos from company websites and ChicagoInno

Chicago Venture Magazine is a publication of Nathaniel Press www.ChicagoVentureMagazine.com Comments and re-posts in full or in part are welcomed and encouraged if accompanied by attribution and a web link. This is not investment advice. We do not guarantee accuracy. Please perform your own due diligence. It’s not our fault if you lose money.
.Copyright © 2017 John Jonelis – All Rights Reserved
.
.

Leave a comment

Filed under 1871, angel, angel capital, angel investor, Big Corporations, big money, chicago, Chicago Startup, Chicago Ventures, Entrepreneur, Entrepreneurship, Howard Tullman, Innovation, Innovation and Culture, Invention, investor, new companies, Startup, startup company, vc, Venture, venture capital

WHY MILLENNIALS KEEP DUMPING YOU

An Open Letter to Management

by Lisa Earle McLeod

Attracting and keeping top millennial talent is a burning issue for leaders. Millennials are 35% of the workforce. By 2020 they’ll be 46% of the working population.

Some of our most successful clients — organizations like G Adventures, Google, and Hootsuite — are filled with millennials who are on fire for their jobs. Yet many organizations struggle to attract, and retain, top millennial talent.

One of us, Elizabeth, wrote this letter, to share insights about what top-performing millennials want and how leaders can ignite the “energy of a thousand suns.”

~ ~ ~

An Open Letter to Management:

You hired us thinking this one might be different; this one might be in it for the long haul. We’re six months in, giving everything we have, then suddenly, we drop a bomb on you. We’re quitting.

We know the stereotypes. Millennials never settle down. We’re drowning in debt for useless degrees. We refuse to put our phone away. We are addicted to lattes even at the expense of our water bill. Our bosses are not wrong about these perceptions. But, pointing to our sometimes irresponsible spending and fear of interpersonal commitment isn’t going to solve your problem. You still need us. We’re the ones who’ve mastered social media, who have the energy of a thousand suns, and who will knock back 5-dollar macchiatos until the job is done perfectly.

I’ve worked in corporate America, administrative offices, advertising agencies, and restaurants. I’ve had bosses ranging from 24 to 64. I’ve had bosses I loved, and bosses I didn’t. I’ve seen my peers quit, and I’ve quit a few times myself. Here’s what’s really behind your millennials’ resignation letter:

.

-1- You tolerate low-performance

It’s downright debilitating to a high achiever. I’m working my heart out and every time I look up Donna-Do-Nothing is contemplating how long is too long to take for lunch. I start wondering why leadership tolerates this.

Is that the standard here? No thanks.

Fact: Poor performers have a chilling effect on everyone.

.

-2- ROI is not enough for me

I spent Sunday thinking about how I can make a difference to our customers. Now it’s Monday morning, what do I hear? Stock price. Billing. ROI. Suddenly, my Monday power playlist seems useless. I’m sitting in a conference room listening to you drag on about cash flow.

I was making more money bartending in college than I am at this entry-level job. You say I’ll get a raise in a year if the company hits a certain number? So what? I need something to care about today. Talk to me about how we make a difference, not your ROI report.

Fact: Organizations with a purpose bigger than money have a growth rate triple that of their competitors.

.

-3- Culture is more than free Panera

Don’t confuse culture with collateral. Yes, I am a cash-strapped millennial who really appreciates free lunch. But I don’t wake up at 6AM every day to play foosball in the break room. I’m not inspired to be more innovative over a Bacon Turkey Bravo.

I need to be surrounded by people who are on fire for what we’re doing. I need a manager who is motivated to push boundaries and think differently. Working in a cool office is really awesome. So is free lunch. But a purposeful culture is more important.

Fact: A culture of purpose drives exponential sales growth

.

-4- It’s ok to get personal

Treat me like a number? I’ll return the favor. This job will quickly become nothing more than my rent payment. I’ll start living for Friday and counting down the minutes until 5. After a few months of that, I’ll probably have a drunken epiphany and realize I want more out of my life than this.

Then I’ll prove your assumptions right. 8 months in, I’ll quit and leave. Or worse, I’ll quit and stay, just like Donna-Do-Nothing.

That’s not good for either of us. Here’s what you need to know:

I was raised to believe I could change the world. I’m desperate for you to show me that the work we do here matters, even just a little bit. I’ll make copies, I’ll fetch coffee, I’ll do the grunt work. But I’m not doing it to help you get a new Mercedes.

I’ll give you everything I’ve got, but I need to know it makes a difference to something bigger than your bottom line.

.

Signed,

A Millennial

~ ~ ~

.

The millennials are telling us what we already know in our hearts to be true. People want to make money; they also want to make a difference. Successful leaders put purpose before profit, and they wind up with teams who drive revenue through the roof.

.

This article was co-written with Elizabeth McLeod, a millennial and cum laude graduate of Boston University, and daughter of Lisa Earle McLeod.

Lisa Earle McLeod is the creator of the popular business concept Noble Purpose and author of the bestselling books, SELLING WITH NOBLE PURPOSE and LEADING WITH NOBLE PURPOSE. Lisa is a sales leadership consultant and keynote speaker who helps organizations improve competitive differentiation and emotional engagement. www.mcleodandmore.com

This article previously appeared in Forbes

Image credit: Lisa Earle McLeod

.

Also by Lisa Earle McLeod:

Chicago Venture Magazine is a publication of Nathaniel Press www.ChicagoVentureMagazine.com Comments and re-posts in full or in part are welcomed and encouraged if accompanied by attribution and a web link. This is not investment advice. We do not guarantee accuracy. Please perform your own due diligence. It’s not our fault if you lose money.
.Copyright © 2017 John Jonelis – All Rights Reserved
.
.

Leave a comment

Filed under angel, angel capital, angel investor, Big Corporations, big money, Chicago Startup, Chicago Ventures, Conflict, Consulting, Entrepreneur, Entrepreneurship, Entrepreneurship and Politics, Impact Investing, Innovation and Culture, jobs, new companies, Social Entrepreneur, Startup, startup company, vc, Venture, venture capital

TO BE OR NOT TO BE HACKED?

by William Shakespeare,

alias Moises J. Goldman and John Jonelis

.

Hamlet—To be or not to be hacked? That is the question. Whether ‘tis nobler to suffer the slings and arrows of outrageous fortune, or to take arms against a sea of phishes, gouged by creatures who boast no scruple, nor affect any purpose higher than foul destruction—and by opposing, end them?

[Editor’s translation—Hackers are a bummer. This is war.]

 

William “Moises” Shakespeare

.

Or may say ‘tis wiser to remain in dungeons rank and old—to sleep, perchance to dream—ay, there’s the rub. For in that sleep, what dreams may come? The internet makes cowards of us all.

[Editor’s translation—Should I upgrade the robustness of my internal infrastructure and firewalls?]

.

Horatio—But soft, me lord, to think upon the many turns a kindom make.

Betwixt two means shall we choose to take.

[Editor’s translation—There are two good options.]

 

Hamlet—Ay, the dilemma. To guard an angry pack of dogs that tear and rent and hack away till strength and blood be spent—or flee? How wouldst thou fight, Horatio? I would not hear your enemy say you could do it. Nor shall you do my ear that violence.

[Translation—Don’t feed me a pack of lies. If we encrypt all sensitive data and cyber-secure our network we still can’t achieve fail-safe.]

.

.

Horatio—Hear me lord; I make my case:

Should bits and bytes habitate high Cloud

A kingdom’s gold to free?

No arms, no knights, no castle wall to tug a purse’s string so proud!

‘Stead exult in markets, foul of hogs and sheep and goat?

Entice the sorcerer to play in darker art, in unknown moat?

To raise a legion—conquer lands anew beyond the sea?

And so extend a kingdom’s reach?

[Option #1: The Cloud is cheap.  Save your money for marketing, R&D, and expansion.]

.

Hamlet —Methinks this boy hath soundly grounded thought. He makes PaaS-ing SaaS at learning dearly bought. It takes no brain to buy his train of thought.

[Seems like a no brainer. The Cloud.  Platform as a Service—Software as a Service. Let’s do it!]

.

Horatio —But soft, me lord, I fear foul play!

This Cloud by wild winds be cast astray.

It boasts no force to hole such gauze with tumult and in fray,

And by doing so, steal treasury of intellect away.

‘Tis best, to build yon castle walls of stouter stuff, some say.

Keep bytes and treasure close and spend on fodder and on hay.

[Option #2: The Cloud is way too vulnerable to attack. Update your in-house network.]

.

.

Hamlet —Wouldst thou squeeze gold from a lark? Something is rotten in the state of Denmark. But harken thee—where may best advantage be? What odds see ye?

[That equipment’s really expensive! What’s the probability of getting hacked either way?]

Horatio —Sorcerers be that wouldst draw

Straight crook from snarled oaken saw.

[Mathematicians use probability trees.].

.

Hamlet —O cursed spite that ever I was born to set it right! 

[I hate math!]

.

Horatio —Of haste take not. Outcomes be but three.

Take heed of which I shew to thee.

[No big deal. There are only three probable outcomes.]

Hamlet—Hold, varlet! A fourth ye lacked—that one repent and not be hacked.

[Hamlet has noticed a missing variable: An enterprise upgrades internal systems and yet escapes hacking.]

.

Horatio—‘Tis true M’lord, yet is it moot?

Foes be met; nought ground ‘neath heel o’ boot.

Complication wears poorly on thee.

There be no guarantee.

This outcome we call 1-P3…….(1)

.

Hamlet—Ha! There are more things in heaven and earth, Horatio, Than are dreamt of in your philosophy.

[Maybe I’m not as dumb as I look.]

.

Horatio —‘Tis sooth, my liege—I seek not to deceive.

Perchance I draft a map—deeper knowledge ye may tap.

Yon magic shall appease;

Thy grace’s ire set at ease.

[I’ll make it simple, so even you can see. Take a look at this probability tree.]

 

M’lord do you see?

If systems new and hacking lacking,

Probability is simply 1-P3.

[The probability of an internal network not getting hacked.]

.

Hamlet—What make I of this wonder? To ask a fool is to blunder.

.

Horatio—Magic formula ye seek, to make right your decision?

Fortunately, Shakespeare knows it with precision.

[Be cool. I got this.]

Look here, dear Ham, and spy yon enterprise,

Floating on the Cloud ’tis wise.

Not to hack or nick sharp blade.

We dig our likelihood with spade.

‘Tis thus: P1+(1-P1)(1-P2)=1-P2(1-(1-P1)………(2)

[The probability of not getting hacked on the Cloud.]

.

Hamlet [Aside] Madness in great ones must not unwatch’d go. A screw is loose. He rhymes like Dr. Seuss.

[Horatio’s gone bonkers.]

.

.

Horatio —But hark—magicians work dark secrets in a day

That mortal man can plumb no other way.

I spell it in a cypher so you see

The final answer to this mystery.

[Here dummy, I’ll spell it out for you.]

.

Hamlet—Indeed, this must I see.

.

Horatio—Floating on a Cloud,

Yon enterprise two chances escape plunder,

To hide from doom, not hacked asunder.

The Cloud foul Russian must attack rapaciously

Before cursed knife shall reach its mark with certainty.

[If your enterprise is on the Cloud, hacking is a two-stage process. The Cloud may get hacked. But even then, your enterprise may escape damage.]

.

To ride the Cloud in skies of blue, equation (1) must be less than (2).

Hence:  1-P3<1-P2(1-P1)…….(3)

We boil down that poison thus, and there we gain the clue.

If fates would their due, we sing this song,

Our enterprise will float along.

And thus:  P3>P2(1-P1)

 [This is the absolute condition for an enterprise to go to the Cloud.]

 

.

Hamlet—Dost thou think me easier play’d on than a pipe? For ‘tis sport to have the enginer hoist with his own petard, an’t shall go hard.

.

Horatio—M’lord salves the ego with a threat.

Is this the way your friends are met?

But hear me, sire, ‘tis plain to do.

I will write it out for you.

Be ye not a foe to the way the numbers go.

Ye shall recall the probability of hacking free be 1-P3.

If wise man, on gauzy Cloud his merit bent,

To the tune of 80%,

The numbers shew:  1-P2(0.2)

[Here ya go, Mr. Bigshot CIO—if the probability of not getting hacked on the Cloud—P1—is 80%, then 1-P2(1-0.8) hence 1-P2(0.2)]

.

Hamlet—Still it be Greek to me.

.

Horatio —Here, my lord, I will unravel

The way that ye must travel,

To the ending of thy quest.

Be in knowledge, not in jest.

[Gotcha!]

.

Hamlet—Get it over before I die.

.

.

Horatio —Here’s an end so ye may rest

Like bones inside a chest.

If P3>(0.2)P2 be true,

To the Cloud get ye hence,

Else makest equipment new

And play yon cards close to thy vest.

[This is how the CIO makes the decision.]

Hamlet[Aside] This be a fellow of infinite jest, of most excellent fancy. He rhymes obtuse like Mother Goose. Yet I shall the effect of this good lesson keep as watchman to my heart.

[Translation—Good! Let’s get some pizza.]

[Curtain]

[DOWNLOAD ARTICLE IN PDF FORMAT]

.Read the sequel – [THE JOB INTERVIEW WITH WILLIAM SHAKES]

NOTE – This example follows similar logic and Decision by Professor J. Sussman used in his lecture to the Engineering Systems Division entitled, DID BELICHICK MAKE THE RIGHT CALL?

[READ BELICHICK PART 1 – PDF]

[READ BELICHICK PART 2 – PDF]

.

About the Authors

Dr. Moises Goldman is uniquely involved with STEM (Science, Technology, Engineering, and Mathematics). He is a member of several advisory boards at MIT and is a founding member of the TALENT program at IMSA.

John Jonelis is a writer, publisher of CHICAGO VENTURE MAGAZINE and NEWS FROM HEARTLAND, author of the novel, THE GAMEMAKER’S FATHER. BFA, MBA from Kellogg.

.

Photography and Graphics – John Jonelis, MS Office

Chicago Venture Magazine is a publication of Nathaniel Press www.ChicagoVentureMagazine.com Comments and re-posts in full or in part are welcomed and encouraged if accompanied by attribution and a web link. This is not investment advice. We do not guarantee accuracy. Please perform your own due diligence. It’s not our fault if you lose money.
.Copyright © 2017 John Jonelis – All Rights Reserved
.
.

1 Comment

Filed under App, Big Corporations, big money, Characters, Data, Economics, Education, Entrepreneur, Entrepreneurship, image of risk, IMSA, Information, Innovation, Internet, Internet Marketing, MIT, MIT Enterprise Forum, MIT Enterprise Forum Chicago, MITEF, MITEF Chicago, Mobile App, picture of risk, picture risk, Risk, Software, Startup, startup company, vc, Venture, venture capital