Archive for the 'business' Category

Bursty

Anne Zelenka has been writing some really interesting things about the nature of work lately, as an extension of her work at Web Worker Daily. She proposes that there are two models for knowledge workers, one older and one emerging now.

Busy: Show your face during all standard working hours.
Burst: If you produce what you need to, we don’t care when you do it or how long it takes.

Busy: Manage the hierarchy inside your company.
Burst: Connect laterally outside your department and company.

Busy: Always available during working hours.
Burst: Declarative availability.

Seeing the response to this has been very interesting. The replies on WWD seemed mostly positive. Several people said, “This is how I want to work, but it goes against how our work environment is set up.” Elsewhere, including her own blog, followers of Peter Drucker’s management philosophies are complaining. “You misunderstand. What you’re talking about isn’t meaningful. That’s just frosting on the ideas we’re promoting.”

I disagree. When Matthew Hodgson says the Drucker credo is, “Worker, manage thyself. Organisation, get out of the way”, I know he’s not getting the burst work concept. Because what I hear from Anne is “Workers, organize yourselves.”

For those of us that glommed onto the burst concept automatically, I think the issue is this. We procrastinate. We work hard, and then we take breaks. Our day looks like a mishmash, but we’re productive. And traditional management and organization structures, even in ‘knowledge work’, are not very accommodating of these patterns. When I’ve done project management, I actually prefer situations where people aren’t all in the same office (and especially the same room) together, because it helps me remember that I don’t need to care what people are doing at any given moment as long as the work is getting done. The very nature of being able to see everyone in person all day is that it’s really hard to support anything but a ‘busy’ work pattern.

I’m in kind of an odd situation right now, employment-wise. I’m not working full-time for anyone, but I’m running a (very small) business, doing contract work, and generally enjoying the chance to write and network and claim my own time. At the moment, that just barely pays the bills. I’d like to be earning more, but it’s really hard to trade away this kind of freedom. I get work done. On time, and to spec. What else matters?

Making the sale is the hardest part

I’m still adding craft fair leftovers to Etsy. I also whipped up a couple of crochet cuffs last night because I wanted to play with the bright green yarn I bought a few months ago.

I’ve been thinking about how easy it is to make things, relative to how hard it can be to sell them (even when people seem interested–”I like this” has a much lower threshold than “I want to spend $5 on this”). We still haven’t reached the break-even point with the first issue of Yog’s Notebook, for example. So now I’m in the tough position of deciding whether to print fewer copies for issue 2, because that’s how many we can sell, even if it means that we won’t be able to sell enough to recoup costs. There are probably things I could do to help sales (like actually update the blog every week, or be more aggressive about getting reviews) but I think there’s only so much to do in the short term. Building a market takes time, and there are more people who want to have their stories published than people who want to buy the publications.

With crafts it’s even worse, because each individual item, even if it’s created in batches, requires more time and effort. That’s what makes it a craft. And the process of making things is, on the whole, more enjoyable than the process of attempting to sell them.

I’m not really complaining. I know this is how things work. I’m just pondering whether Tara is right about the boutique economy, and what that means for creators and standing out from the competition, when everyone has something unique, one of a kind, and personal to offer.

More on roles

After I talked about the importance of writing roles while you’re still a 1-2 person shop, I made a list based on the work we’ve done on Yog’s Notebook so far. It looked something like this:

  • Editor
    • acquisitions editor
    • copy editor
    • proofreader
    • developmental editor
    • layout designer
    • web designer
  • Publisher
    • bookkeeper
    • business manager (HR, financial planning?)
    • sales
    • customer service
    • marketing
  • Content
    • writer
    • graphical designer/illustrator
    • contributing editor

When I came back to it a week or so later, I felt like it still didn’t really do enough to describe the work, in a way that would be helpful in assigning portions to someone else. So then I listed every activity I could think of that we’ve done so far. Combined with the labels above, I have this:

  • Editor
    • lead editor: send publication to printer
    • acquisitions editor: read submissions, select submissions for each issue, sign contract for writer’s copy (and ours), respond to submission queries, send rejections for work not selected
    • copy editor: check content for spelling, grammar, and conformance to style guidelines
    • proofreader: verify that all content is represented on the page as intended
    • developmental editor: discuss story changes with writers
    • layout designer: lay out the publication, create cover design
    • web designer: create website, set up domain name and web hosting
  • Publisher
    • bookkeeper: record expenses, record sales
    • business manager: write/create a contract, send contracts for selected work, pay writers, file contracts somewhere retrievable, file receipts, buy office supplies (envelopes, labels, etc), get quotes from printers, create financial analyses
    • sales: send announcements of new issue, set up PayPal for purchasing copies, contact stores about stocking our publication
    • fulfillment: package purchased copies for mailing, mail copies of zine to purchasers, email PDFs to purchasers
    • customer service
    • marketing: print promotional materials (stickers), plan release party
  • Content
    • writer
    • graphical designer/illustrator: create graphics for web, publication, merchandise
    • contributing editor: write editorial content

I’m sure this is incomplete, and that there are other (better?) ways to organize the tasks and roles, but it’s a start, and it was interesting for me to see how many different kinds of things were involved in getting that first issue out. If anyone who has submitted work to us (or any other small publication) is reading this, I hope it helps explain why it can take a little while to hear back; we have so many other jobs to do at the same time.

I think the next step would be to look at what roles could be handed off to other people (or outsourced to another company) but right now we don’t have the resources. Still, I’m glad to have some idea of where I would start.

Write the roles before you need them

I was reading through the hundred dollar business yesterday, and I spotted an interesting bit of advice on starting a business and organizational roles.

It caught my attention because employee roles were one of the big issues we struggled with during my ~5 months at PA, and I am always eager to avoid hitting the same problem a second time. So: Rob Merrill said

At the earliest stages, while you’re still fresh in the “entrepreneurial seizure“, you need to determine what the mandatory roles in the business are. In a startup, of course, there is no room for bureaucracy or drag of any kind. 100% of the resources need to be maxed to 100% or more. Vanity is death, though entrepreneurs by nature are often susceptible to vanity of some-kind or another. Beware! However, you need to reach out into the future to predict how the different “legs” of the organization are going to grow.

Take each group or functional area of the company and work on each “leg” planning out the infrastructure. Physically DRAW these out on an organizational chart.

For now, you (yourself) may occupy all or many of the roles in the org-chart. No problem. What’s important is that you know what’s next in line and, while you’re doing the shipping clerk’s job, you’ll be working hard to be sure that, when you do hire a clerk, you will have a system in place to ensure that you don’t spend all your time training them–and that the level of service you expect will still be achieved.

I’m going to try this as a planning exercise for Yog’s Notebook. It’s still a (very) open question if and how much the zine will grow, but as I’ve been looking at the possibilities, I’ve become more concerned with making sure I don’t write myself into a corner. I want to make sure it can succeed at whatever size turns out to fit best.

Gray + Rainy = Fall

Yesterday was overcast, misty, and the sort of day when I miss Seattle. In Seattle, the weather remains exactly like that from November-March, never too cold, rarely sunny or dry. I love it. But I’m also missing Seattle because that’s where I went to college, and right now I’d love to return to that kind of atmosphere. I don’t think anyone realizes until afterward just how lucky they are to get 4+ years of reading and learning with few responsibilities and the ability to follow odd ideas for hours on end without having to earn money at the same time. It’s worth every cent of the debt that results, but that’s also why you don’t get to go back. Too expensive to do twice, unless it’s grad school and you’ve come to terms with the idea of paying off student loans until you’re 80.

Paul Graham is a well known writer and speaker on the subject of tech startups, and he frequently encourages college students and recent grads to consider starting their own instead of going to work for someone else. I like a lot of what he has to say about the general topic, but the “students of America, you don’t need a corporate job” parts get under my skin after a while, because I feel like he’s only talking to privileged MIT or Stanford kids who can ask their parents to bail them out if it turns out they’re about to be evicted because they’ve been writing code for their own business idea without a paycheck.

I didn’t have steady work for a year after I graduated from college, and it was a miserable experience. I did freelance work during that time, but always with the expectation that I was looking for a full time job, because I didn’t have enough money in the bank to handle any kind of emergency or unexpected situation. So I don’t see how anyone can possibly go straight from college to their own startup without a nice little graduation present of enough cash to not worry about food or rent for 6-12 months. It’s difficult to focus on anything when you’re trying to decide if you’re desperate enough to apply for food stamps.

Thus, we come back to the job market. I think most companies do a lousy job of seeking out qualified people [1], but we’ve been over that topic. So I’ll just point out a change to the 37Signals job board: they’re raising the cost of listing a job so they’ll have fewer listings. The comments on this announcement are mostly a big lovefest, with only a few of us wondering how this is good for the job seeker.

Clearly price does not ensure quality in this setting. And because this is a national job board, limiting the number of postings really hurts anyone who isn’t in NYC, SF, or maybe Boston. There’s no reason other cities can’t have interesting tech businesses, except for the difficulty of connecting people with companies that want them. But this was supposed to get easier, thanks to the wonders of modern communications technology, and I think limiting the number of job posts on this board is a step in the wrong direction.

I know there’s a certain crowd that says “traditional hiring is dead!” and “word of mouth/personal contact is everything!”. This is great in a lot of ways, because the best way to find out someone’s true skills and ability is to work with them or talk to people who have. But I think it can also reinforce certain biases and kinds of discrimination. Open source projects are often suggested as a great way to demonstrate coding skill and ability to work with a group, but far fewer women than men participate in these, for reasons that have been actively discussed elsewhere (this might be a good place to start if you’re new to the discussion). And other kinds of groups that one might use for networking face similar problems.

At Lucky Lab after the last Portland Ruby meeting, I was sitting across the table from a guy who had recently moved from elsewhere. He mentioned that there was a Rails development group in his previous town, but no women attended regularly. One showed up for a single meeting and didn’t return.

Everyone has heard jokes about how the guy who plays golf with the boss gets promoted over a more qualified worker who isn’t in on those outings. Kissing up to the boss aside, there’s some truth in the joke–of course you’re going to receive more consideration from people who have spent time with you. Personal connections are really important.

When groups that might provide opportunities to meet other people in your field are very homogeneous, that can shut a lot of people out of the benefits of those interactions. I know from experience that it can be very intimidating and awkward to be the only woman in a room full of men, especially if they already know each other. This is a problem even in a friendly, welcoming group. There is a lot of cultural baggage that affects how women and men talk to each other, and settings that are somewhere between professional and social can make that even more difficult.

My point here is that you can’t assume that social networks will bring you a wide pool of qualified people. They might, they might not. But an employer (or really any kind of organization) that wants a diverse representation of talent in their field may have to dig a little more. This is getting a lot of attention right now with respect to how conference attendees are selected. I’ll refer you to other people for more on that one.

[1] Not that this is an easy thing to get right. I did the hiring for my group at my last job, and the number of people who apply with terrible resumes and no relevant skills is amazing. But the way most job ads are written, it’s no wonder a lot of people give up and apply at random. My current job was a complete mystery based on their ad on Craigslist. I only applied because it sounded vaguely like something I could do, and I already knew someone who worked there.

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I want to tell you a secret

Here it is: your spiffy new business idea, no matter how cool or interesting, is not so super-special that you need to keep it secret. Unless you’ve already signed some military contract that requires you to keep your mouth shut or you’ll be shot, the odds that you don’t sound completely silly when you say “we’re in stealth mode” or “I’m not allowed to disclose our business model” are pretty much zilch.

Why? It’s like the writers (especially screenwriters) who won’t give anyone a plot synopsis until the work has already been sold (and people who talk like this never seem to sell anything, in my experience). The chance that your idea is so amazingly unique that your whole project can be stolen away by a competitor who hears about it is very low. Look at Antz vs. A Bug’s Life, or Armageddon and Deep Impact. Two sets of competing projects by different movie studios, and I have no idea which one in each set was started first, because they’re all good or bad for different reasons. It’s the implementation that matters, not just the concept.

I’m bringing this up because I keep running into this sort of thinking in the course of talking to people about tech companies and when browsing job listings.

A sample:
For consideration, contact me and I’ll send you a non-disclosure agreement for you to sign and bring with you to discuss the project in detail.
CTO at Stealth Mode Travel Start up–To apply tell us about things you have seen and could hypothetically reverse engineer. Conf agreement required before details are given.

This is really silly. Most people who express interest in your project are not going to have the time or money to copy it, no matter how cool it is, and even if they did, their version will probably look completely different. A good idea is the smallest part of a good project or company. Look at Google, the last search engine to enter the market. How many stories or movies do you know of with essentially the same plot? How many songs about heartbreak? Travel booking companies? The details are more important.

There’s a difference between not giving away technical details (the “secret sauce”) and not being willing to share what kind of business you’re starting and how it plans to make money. Especially once you’re ready to hire on employees or get funding. Once you reach a certain point, obscurity is the bigger enemy.

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