There's something interesting happening right now. Startups are undergoing the same transformation that technology does when it becomes cheaper.

It's so cheap to start web startups that orders of magnitudes more will be started. And if the pattern holds true, that should cause dramatic changes.

...

Instead of going to venture capitalists with a business plan and trying to convince them to fund it, you can get a product launched on a few tens of thousands of dollars of seed money from us or your uncle, and approach them with a working company instead of a plan for one. Then instead of having to seem smooth and confident, you can just point them to MemeStreams.

This way of convincing investors is better suited to hackers, who often went into technology precisely because they felt uncomfortable with the amount of fakeness required in other fields.

... if you hear someone saying "we don't need to be in Silicon Valley," that use of the word "need" is a sign they're not even thinking about the question right.

If startups are mobile, the best local talent will go to the real Silicon Valley, and all they'll get at the local one will be the people who didn't have the energy to move.

This is not a nationalistic idea, incidentally. It's cities that compete, not countries. Atlanta is just as hosed as Munich.

There's something about big companies that just sucks the energy out of you.

The Future of Web Startups

when you make any decision involving equity,
run it through 1/(1 - n) to see if it makes sense. You should
always feel richer after trading equity. If the trade didn't
increase the value of your remaining shares enough to put you net
ahead, you wouldn't have (or shouldn't have) done it.

The Equity Equation

This is an oldie but a goodie. I happened onto it today and figured I'd re-recommend it.

Separate the facts from the fads: A groundbreaking, five-year study reveals the must-have management practices that truly produce superior results.

Excel at Four Primary Practices:

Strategy: Devise and maintain a clearly stated, focused strategy.
Execution: Develop and maintain flawless operational execution.
Culture: Develop and maintain a performance-oriented culture.
Structure: Build and maintain a fast, flexible, flat organization.

Embrace Two of Four Secondary Practices:

Hold on to talented employees and find more.
Make industry-transforming innovations.
Find leaders who are committed to the business and its people.
Seek growth through mergers and partnerships.

What Really Works

Contracts are being canceled, deals are drying up, prices are starting to drop. The psychology is shifting even as thousands of new homes and condos join the for-sale listings each day - so the downward pressure will only get worse.

Speculators who bought overpriced condos in hope of a quick killing are going to get hosed.

Hold on to your hats.

Welcome to the dead zone

Do you remember the recent thread about treating waiters well, and how it relates to character?

Well, when USA Today ran the article, they provided Bill Swanson's list of management truisms.

Turns out they're not his, after all.

William H. Swanson has become something of a management guru thanks to "Swanson's Unwritten Rules of Management." It is a compilation of folksy business advice from Mr. Swanson, the chief executive of Raytheon, that the company distributes as a free booklet. No. 3 in his list of 33 rules begins: "Look for what is missing."

What is missing from Mr. Swanson's 76-page booklet, as an engineer discovered last week, is any reference to what appears to be the source of many of his rules: the 1944 book "The Unwritten Laws of Engineering" by W. J. King, an engineering professor at the University of California, Los Angeles.

"Swanson's Rules" are provided below. You'll notice several also appear in Rumsfeld's Rules.

1: Learn to say, "I don't know." If used when appropriate, it will be used often.
2: It is easier to get into something than to get out of it.
3: If you are not criticized, you may not be doing much
4: Look for what is missing. Many know how to improve what's there; few can see what isn't there.
5: Presentation rule: When something appears on a slide presentation, assume the world knows about it and deal with it accordingly.
6. Work for a boss to whom you can tell it like it is. Remember, you can't pick your family, but you can pick your boss.
7: Constantly review developments to make sure that the actual benefits are what they were supposed to be. Avoid Newton's Law.
8: However menial and trivial your early assignments may appear, give them your best effort.
9: Persistence or tenacity is the disposition to persevere in spite of difficulties, discouragement or indifference. Don't be known as a good starter but a poor finisher!
10: In doing your project, don't wait for others; go after them and make sure it gets done.
11: Confirm the instructions you give others, and their commitments, in writing. Don't assume it will get done.
12: Don't be timid: Speak up, express yourself and promote your ideas.
13: Practice shows that those who speak the most knowingly and confidently often end up with the assignment to get the job done.
14: Strive for brevity and clarity in oral and written reports.
15: Be extremely careful in the accuracy of your statements.
16: Don't overlook the fact that you are working for a boss. Keep him or her informed. Whatever the boss wants, within the bounds of integrity, takes top priority.
17: Promises, schedules and estimates are ... [ Read More (0.2k in body) ]

Raytheon Chief's Management Rules Have a Familiar Ring

The News Corp.'s purchase of MySpace is looking like that rarest of rarities in the media world -- a much-ballyhooed acquisition where it turns out that the buyer underpaid.

Interesting perspective.

News Corp. (hearts) MySpace | FORTUNE