The Journey of Entrepreneurship
a blog by Keith Cowing

Bloomberg changes the future of NYC with Cornell / Technion Tech Campus

December 19, 2011

Today was the official announcement that Cornell and Technion have won the bid to build an engineering campus in NYC that could literally change the future of New York's economy. While it will generate jobs today, start coursework in 2012 for masters and PhD students, and boost the technology ecosystem immediately, the program also looks out as far as 2040 to support a future of innovation and job creation as the industries in New York (and everywhere) continue to be disrupted.

As a technology entrepreneur in NYC (Founder and CEO of Seamless Receipts) and a proud holder of two Cornell degrees (Engineering and MBA), I'm clearly biased. But I'm more excited about this partnership than anything I've heard about in awhile. Good technology and startup ecosystems need four key components to be successful: a superb pipeline of talent, a culture that promotes idea generation and risk-taking, an ecosystem of partners and mentors, and access to capital. Stanford and Silicon Valley have mastered this model and Cornell is going to launch a giant spark into an already thriving startup ecosystem in New York. Cornell will bring to New York a $150M venture fund to support early stage companies, 20K jobs to build the infrastructure, 8K sustainable jobs for faculty and staff, and top talent from around the world who will be encouraged to start and grow companies in New York City. The future of our economy clearly relies on innovation and the proliferation of new ideas. Nothing will support New York City's future and optimism more than building the next Facebook or Google in Manhattan.

Looking at New York City, all of the components of a startup ecosystem exist today (talent, culture, ecosystem, and capital) but talent is clearly the piece that holds NYC back from being as transformative as Silicon Valley has been for the past 50 years. Cornell will inject a pipeline of talent that will generate new businesses and drive the growth of current companies (who are all desperately trying to hire engineers). Bloomberg expects the program to increase the number of engineers finding jobs in NYC by 85%.

In return, Cornell has all the components of an entrepreneurial education except the ecosystem. There is an honest disadvantage to starting a company in Ithaca (ice hockey games are great, but the number of successful alumni who have built and sold companies in the Finger Lakes region is definitely limited vs. New York or Silicon Valley). Trust me, I've done it. So putting a permanent program in New York City will bring to Cornell the one missing piece in its entrepreneurial endeavors - a subway to New York so students can visit Google, Facebook, tech entrepreneurs, and venture capitalists on a random Tuesday afternoon. The 50K Cornell alumni in New York City will serve as a perfect launching ground for the program's ties to the New York economy.

I see the partnership between Cornell/Technion and New York City as a perfect marriage. I couldn't be more optimistic about the future and I look forward to taking part in the initatives that will come.

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How will your data from mobile payments and eReceipts really be used?

October 10, 2011

The world of retail is changing faster than it ever has before. Nobody had heard of flash sales, group buying, or NFC three years ago. One of the most exciting changes will be the adoption of mobile payments and eReceipts, which will combine to provide a paperless way to checkout and manage your expenses. But when mobile payments and eReceipts become widespread, who will own your purchase data and how will they use it? Here are some key points to consider.

We are in uncharted territory
Online advertising, email marketing, and eCommerce have become mature technologies with standard privacy practices (see the CAN-SPAM Act of 2003). Retargeting has recently thrown a small wrench in the system, but most people have accepted targeted ads on the web as routine and non-invasive. If I view Sneakers on Nike's website and later get a Nike ad on espn.com, that's not a big intrusion. However, digitally tracking purchases that are made in the physical world has a very different feel to it. Nobody wants to read the morning news and get targeted ads based on their recent pharmacy purchase. So how do consumers know what mobile payments and eReceipts actually mean to their privacy? The experience of getting an eReceipt instead of a paper receipt is new to everybody. Retailers, tech companies, and consumers are collectively learning how to implement a solution that works well for all parties. It is important to realize that these processes and technologies have not existed before and there will be road bumps (like Facebook's beacon disaster), but ultimately it comes down to trust. People trust Apple so everybody loves when the Apple store provides eReceipts at checkout. Likewise, other top retailers are focusing on privacy and consumer trust when rolling out their digital solutions. Earning that trust first is what will ultimately make the technologies successful.

Technology moves faster than regulation
Government regulation will always be a step behind. The CAN-SPAM act came in 2003 even though spam and email marketing started long before that. Technology constantly creates dynamics that never existed before and governments have to play catch up. California's recent law that prohibits brick-and-mortar retailers from collecting zip codes is a great example. Retailers are quickly adjusting and preparing for what comes next. When it comes to privacy and trust, you want to do the right thing for your customer and not push legal boundaries. Ethics and consumer privacy should be the driving force, not antiquated laws that didn't predict a future where consumers pay with their phones while checking into Foursquare, claiming loyalty points, posting on Facebook, and Tweeting about their purchase. Who owns that data?

There is a fierce battle for the consumer
Retailers want to own the consumer. Mobile wallet providers (Google, PayPal, etc.) want to own the consumer. Wireless providers want to own the consumer. Everybody wants to own the consumer. The companies that maintain direct interaction with customers and get their explicit consent to a privacy policy will be in a strong position. Somebody will ultimately break down the business and cultural barriers required to digitally manage ALL of your purchases. We are still years from that happening, but the value is incredible and a mobile payments war has begun. The investment required to play on this turf is significant, so the ultimate winner will be a big player with a large consumer presence. En route to that outcome, consumers should read the privacy policies that come with new products. Consumers will ultimately decide which payments and eReceipt platforms are successful and therefore will choose their own destiny regarding security and privacy.

Transparency is the key to trust
The Internet and social media have brought an unparalleled level of transparency to the business world. People will find the truth whether you like it or not, so the best companies are embracing transparency and being open about their business practices, their values, and even their mistakes. If you tell people exactly what you are doing and why, you may not always be right, but nobody will doubt that your statements are true. This provides room for honest errors because you can own up to them, improve and move on. The days of old boys clubs that dominate business based on their exclusive access to people and information are waning. Information is open and you can either run from it or embrace it. Businesses that embrace it and provide transparency to their customers will be the ones who are ultimately successful. If you want to know what somebody is doing with your data from mobile payments or eReceipts, then simply ask. If you get a clear, consistent, human answer, that's a good sign. If you get a fuzzy answer or messages are mixed behind cryptic legalese, maybe you should think twice. Transparency leads to trust and trust leads to long-term loyal customers.

Customer experience trumps all
At Seamless Receipts, we work with a variety of high-end retailers and brands. The most successful ones think about customer experience first and view it in an all-encompassing way. When a customer visits your website, walks into your store, makes a purchase, gets an eReceipt, or talks about your brand on Facebook, these are all touch points in an ongoing customer experience. Your brand is represented by every step along the way and doing the right thing for your customer is doing the right thing for your business. When it comes to mobile payments and eReceipts, providing a convenient and simple solution is part of the customer experience. Retailers should create an operational flow that makes sense for the sales associate and the customer. Retailers should also send a clear message about privacy and data usage. Every sales associate should give the same, simple answer when asked.

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7 Rules for Getting Hired at a Startup

October 3, 2011

Working at a startup is a drastically different experience from working at a large company. Your office space is different, your job is different, your pressures are different, and even your boss is different. So why would you approach getting a job at a startup the same way you approach getting a job at a big company? Many people do and it's a big mistake. After spending a lot of time reviewing candidates and hiring team members, here are seven of my rules for getting hired at a startup.

1. Engage with the company on social media Every startup is on Facebook and Twitter and they're fighting for exposure. Use that to your advantage. List your target companies, start conversations with them on Twitter, post insightful thoughts on their Facebook walls, and listen to what they're saying. Startups are run by small, tight-knit teams, and there are real people behind those accounts. Engage with the company early and learn about them before you ask for a job.

2. Do NOT mail a word doc resume and cover letter I get lots of emails for people seeking jobs at Seamless Receipts. By necessity, I apply a quick set of filters and either flag the person as interesting (to be researched), respond to set up a meeting, or simply delete the message. If you send a Word doc it shows that you didn't even take the time to PDF it. If you send a resume, send a PDF. What I much prefer is a link to a well-written LinkedIn profile and any relevant websites (such as your blog). LinkedIn should clearly describe your education, your work experience, your successes, and your specific interests as a professional. If there is a powerful message on your resume that doesn't come across on LinkedIn, then either update your profile or highlight those points in the body of your email. Additionally, Never send a cover letter as an attachment. If you apply to a job at a big company, fine, send a cover letter - they might expect it. But if you're sending a busy entrepreneur an email, the email is your cover letter! Do not make them open a separate document because they probably won't. Make the communication short, succinct, and easy to respond to. Making a specific request is better than simply saying you're interested (ask for a meeting, a brief phone call, etc.).

3. Do your diligence (this is for your sake too) Get to know a startup well. Read about the team, their background, their successes and failures, their investors, their competitors, and get to know their market. When you talk to them in-person it should be an interesting conversation about the battles they're fighting. You shouldn't learn anything in an interview that you could have learned with an hour on Google ahead of time. Entrepreneurs want to hire people who are proactive and know what they're getting into. If you don't learn the details about the company you want to join before considering a career move (a major, life-changing decision) then why should the entrepreneur think that you will do your homework before pitching a prospective client or making a technology decision? Behavioral patterns are important, so don't go into an interview and tell someone that you don't know much about their company except what you read on their website.

4. Start doing your job during the interview process A lot of hires happen through personal networks because referrals provide the best filter for people you can trust. If you are not getting hired through a referral, expect the interview process to be thorough, especially for senior roles. In a small company you will have a tremendous impact on whether or not the business is successful. Just as important, you will have a large impact on the atmosphere in the office. One bad apple truly can ruin the bunch. Taking on an employee is as risky for a startup as it is for you. Entrepreneurs need to know that you excel at a level above your peers and can be immediately productive. The best way to prove this is to take on a project. There is usually a creative way to propose a project that has a small level of commitment, but lets you demonstrate your abilities. Additionally, this gives you a much better sense of how well you work together, which is critical for both sides to know. If it doesn't make sense for the situation, at least find a way to spend time white boarding technology ideas, sales strategies, or relevant issues for the role. Going through the process of analyzing and solving a problem with the team is a great way to preview your working relationship. Resumes and small talk are nice, but they do not simulate what it will be like to tackle a difficult problem together, in a small office, for hours on end.

5. Make it personal When you join a small business, it's not just a job. You are joining a team and probably a team full of personalities. A huge part of whether or not you mesh with the company will be based on your personality and how you interact with the team. That is not superficial, that is real. Culture matters, personality matters, and how much you enjoy spending time with your team matters. Joining a startup is like going to battle every day. If you like the people you are in the trenches with, then the battle is fun and exciting. You will enjoy the challenges, the late evenings, and the pressure of working in a high-risk, high-reward role.

6. Show, don't tell Talk is cheap. When demonstrating your abilities, don't talk generically about how you're a diligent, hard-working go-getter (could describe anybody). Show the last site you built. Describe the revenue boost you generated over the last quarter. Showcase a product you delivered and describe the go-to-market strategy you used to get traction. Whatever type of role you are looking for (engineering, sales, marketing, finance, etc.), the company wants to know that their investment in you will immediately start paying off. So prove to them that it will. If you can't yet - then take on a project that will prove it. Propose an extra project at work, build something on the side, help a friend launch their company. Excuses abound everywhere and ideas are cheap. The true definition of an entrepreneur is somebody who takes the initiative to take those baby steps and move forward. Little by little, every day. Rome wasn't built in a day and neither was Amazon, Google, or Apple. So start now and build something.

7. Hit the ground sprinting Speed and timing are crucial when launching a new venture. Hastily making progress, building a team, delivering a product, securing partnerships, landing clients (or users), bringing in funding, and iterating before your cash runs out is not easy. It requires hard work and constant execution. If you meander, you may find yourself terribly lost. If you sprint out of the gate you will learn in a short amount of time whether or not your plan holds up. Most products and business models need to be iterated on and fine-tuned over time. Learn quickly, fail fast, adjust and move forward. Startups can't support this model unless the whole team is in-sync. So be quick to respond, show that you can think on your feet, and make it obvious that you'll hit the ground sprinting.

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Forget About the Competition and Delight Your Customers

August 1, 2011

People are trained to think about competition all the time. You need to understand your competitors and your differentiating factors. Strategically, it's important to look at the market and stake your particular ground. But strategy is only 5% of the game, the rest is execution. When it comes to executing on your strategy day in and day out, sometimes you need to forget about competition and focus on your customers. Adding features because your competitors have them, obsessing about new market entrants, and constantly refreshing industry news can lead to a very muddied approach to your business.

When you look at the cultures and personalities of companies, the ones who are obsessed with competition tend to be neurotic and uncomfortable in their own skin. Steady, yet humble confidence leads to true industry leaders. Apple has fierce competition, but thinking about competitors would have led them to a bigger MP3 player or a laptop with more features, not the iPhone or the iPad. Apple has a very simple strategy: build beautiful and simple products. That's it. It is Apple's relentless execution that has built one of the most valuable companies in the world. Anybody could replicate Apple's strategy. Nobody has been able to replicate its execution.

There are some markets that are commoditized and hyper-competitive. As an entrepreneur, I would prefer to avoid these all together. But some people thrive in that environment. At the end of the day, everybody has their own approach, both companies and individuals. I believe that entrepreneurs should think deeply and carefully about their market, their competition, and changes that are happening in the world. But when you're in the thick of a battle, forget about competition and focus on delighting your customers. That will lead to long-term success much more often than a neurotic focus on your competitors.

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