Delaware: A Startup Ecosystem?

Yesterday, a trending topic that encouraged a lot of good discussion from the people I follow from Philadelphia, was sparked by a blog posted by @bjennelle in regards to Fast Company searching for the five best cities in the country to launch a startup. In Blake's post he posed some really good points as to why Philly is a good place for a startup: (1) because they have "one of the tightest startup communities of significant size in the country"; (2) Philly's entrepreneurial and creative scene have been built grassroots by entrepreneurs for entrepreneurs; (3) Philly has had success in grassroot help-groups for entrepreneurs like Philly Startup Leaders , Indy Hall, Barcamp, Ignite, Technically Philly, MakePhilly, The Hacktory, Hive76, Refresh Philly, etc. Even though it seems with all these resources Philly has a great startup ecosystem already in place, the people that commented on the post, as well as Blake all still feel that the city needs to make a good amount of changes to catch up to elite cities like New York, San Francisco, Boulder, Seattle, and Austin. The unanimous feeling was that Philly has made some good strides, but as far as being a great city for startups, it is just in the infancy stages.

Naturally as I read through the comments, I started to think about where Delaware (Wilmington) would be on the food chain for great startup cities. As many of you all from Delaware know, our state is not the most receptive to new ideas or businesses. I can say this since Wes and I are in the process of launching an untraditional business (The coIN Loft) in Delaware, and have found it more of an uphill battle, even though it can do so much good for the entrepreneurial ecosystem. It seems that things that are adopted in the elite cities, take forever to make a splash in this state, don't believe me, just take a gander at the small number of people really using social media to their advantage. I find it kind of embarrassing that this is the way things work here, however I also find it encouraging, mostly because this means that this state is leaving it open for new leaders to step up and pull this state to where I know it can be. Like Governor Markell said in something I read yesterday about the future of business in Delaware, "Delaware needs to be and can be the best place in the country to start and grow a business." 

My first reaction to this quote by Markell is: Wow, this is awesome; it looks like Delaware is finally going to be placed where it should be, but then reality sets in and I realize that this is something that is not going to happen very soon if some action doesn't take place NOW. One of my biggest pet peeves is the type of people that just complain and point out all the negatives, so instead of me being one of "those people", I'm going to suggest my opinions on what Delaware needs to do ( Wes and I included) to make Governor Markell's statement ring true.

(1) We need new ideas. This was very evident in Wes and I's talks with Mayor Baker, who said that Delaware is in dire need of new ideas because the traditional businesses are becoming obsolete. Unfortunately, the inability to remain relevant has led to many of these places closing or downsizing,  thus creating a rise in unemployment.

(2) We need to be open-minded. Needing new ideas is one thing, but when these NEW ideas are generated, we need to be open-minded and embrace the ones with potential (not just potential we're comfortable with either). A perfect example of this was an innovative tech company Wes and I were working with last year, that could not and did not get the proper help/funding from the state. This company was forced to leave the state in order to be successful, and sadly once they reach success, I can pretty much guarantee they will not return.

(3) We need to build a close-knit entrepreneurial community. Selfishness is a thing of the past, that does not exist in a world that embraces collaboration and community, due to the mass transparency social media brings us today. Just take a look at the people trying to sell you something on Twitter, they do not retain many followers since they have nothing real to say, and often times make an ass of themselves, thus diminishing their reputation. When everyone bands together and realizes the power a "crowd" can breed, that is when we (Delawareans) will create the type of ecosystem that is conducive to startups. New entrepreneurs need to see that there is a community that will welcome them and help them grow. When ego is dropped at the door, it is miraculous what the mind of many can conceive.

(4) We need to embrace and harness the young talent.  This is something that goes beyond words, the young talent is going to be the future of the city, so it should be paramount that it is embraced and encouraged now. One of the biggest problems Delaware has it that it does a poor job of retaining the graduates of its schools. We are losing very smart and talented people to these other cities because they do not see the same opportunity in this state compared to the others. I can speak from experience on this because Wes and I would often travel to New York, Boston, and Philly when we launched Verge because we related to the entrepreneurial community in the other states much more than the experiences we had in Delaware. We had thoughts of just doing business in other states because we felt Delaware just wasn't moving at the speed we wanted. It was not until we began launching The coIN Loft, that we truly felt Delaware had a lot of potential. What I am trying to say is that by embracing the younger generations and letting them give their input, it would make this state a lot more attractive. For that reason alone, we've opened the doors of coIN to high school and college students exploring the idea of entrepreneurship while they're still in school. 

(5) We need experience in today's economy/hot industries. Experience is something that is very much needed in our state, and I am not talking about just any experience, I am talking about the people who have their hands on the pulse of the hot industries and the ones who have launched successful scaling startups in this decade. This may seem like a dig, but I think everyone can agree that the business world today is a thousand times different than what it was years and years ago. Experience like this is invaluable, take a look at the dream team Foursquare, a New York startup put together.  

(6) We need true startup/early-stage capital. It doesn't matter how great of a startup ecosystem you have, if there is no access to early-stage capital. Ultimately, a startup is going to go where the money is, since it is money that will be the spark that will allow them to scale. Delaware has a few resources for capital, however these resources need to look at alternative investments and new ideas. Now, it is easy to say that they shouldn't be so risk averse, because it isn't my money, however the angel groups and VCs that took risks on early-stage investments such as Twitter, Facebook, Foursquare, etc. will be receiving large returns, thus placing more money in the trough for the next homerun idea. It sounds like this wish may actually be underway, as I saw last night that Ernie from First State Innovation will be launching a fund for startups. One idea we've been kicking around internally is a local stock exchange. This isn't the time to talk about this, but I think it brings balance back towards the people, rather than a select few. A crowdfunding model specifically for startups would also be a great idea (this is apart of the vision of The coIN Loft). 

(7) We need leadership and most importantly ACTION. Like Andrew Carnegie said, "As I grow older, I pay less attention to what men say. I just watch what they do." I felt this quote was important because in order to make Delaware into a great environment for startups, people are going to need to stand up and lead this change, not just by words, but by action. Philly has done a great job of this thus far with entrepreneurs launching the groups I spoke of before. 

My point in writing this post is to hopefully envoke response to what others feel is needed to put Delaware on the map as a great place for startups, or to tell me I am completely wrong. Some discussion is better than no discussion, so I encourage the people that read this to PLEASE leave a comment. Let this be the beginning of an avenue to voice your opinion on doing business in Delaware. 

Posted via web from Wes & Steve are The Dumb Kidz?

Marketing Isn't About Solutions

If you've ever read Seth Godin's work, you'll know he is a huge evangelist of doing remarkable things people like enough to tell their friends about. Launching The coIN Loft has taught me a valuable lesson-although coIN will solve a lot of problems for people, it doesn't mean people will like what we're doing. People need to find their own value in your doing.

Marketing is the perception of value people identify with your "stuff", not the solutions you tell them it will provide. In other words, your "stuff" doesn't even have to work, nor does it have to be used for the purposes it was designed to be a valuable part of people's lives. 

Who remembers Power Wheels? When I was growing up, every kid on my block wanted one. Even though most of us could run to whatever destination the person was driving to three or four times before they got there, we felt just like Michael Knight we were sitting behind the wheel of our very own Trans-Am. The marketing made us think we could drive like our parents did-as fast as they did. In reality, the product actually wasted time. The battery charge would die thirty blocks from our house, which left us to use every muscle in our 80lb bodies to push the 150lb clump of plastic home...alone. 

Marketing is frustrating. Marketing rarely ever makes much sense. Marketing is people. People don't want solutions, they want perceptions. 

 

Posted via web from Wes & Steve are The Dumb Kidz?

From Grief to Greatness

The crowd stared in frightened anticipation as the the 6 foot guard took the most gloriously painful shot of his life. As the ball bounced off the backboard and fell through the net, the player, exhausted and drenched in sweat, fell to the floor of his high school gym. The crowd erupted as they watched players from the visiting team and their home team rally around the almost lifeless body of the player. The joy of accomplishing his goal was overwhelming. Scoring 61 points in a single game was no small feat; especially during a tumultuous time like this. Every ounce of energy  the played possessed in heart, mind, and body was left on the floor. The brutal murder of his 61 year old Grandfather had been avenged. The player honored the death of his best friend the way his Aunt had requested. He scored 1 point for every day his Grandfather lived. 

The player was Chris Paul (CP3) of the New Orleans Hornets. 

The day after his Grandfather was robbed and brutally murdered  by gang of teenagers, Christ Paul's senior year basketball season began. Fueled with pain and anger he refused to sit out of the game. On the way to the game he asked his Aunt what he should do to honor his Grandfather's death; surprisingly, his aunt replied, in a very matter of fact way, "score 61 points". Astonished by answer, he asked her to repeat herself. Again, in the same tone she repeated, "score 61 points, 1 for every day your Granddad lived on this Earth". Chris repeated her exact words under his breath as if to say yeah, OK, I'll try. 

Between the car ride to the gym and the last few minutes of the fourth quarter, Chris found the courage to turn his doubt in to audacious belief. During the interview I was watching on espn's "Homecoming", Chris recanted his feelings during the game. He said he became fixated on his goal..."nothing was going to stop me". In the context of the story his words really resonated with me. During the toughest time of his life, Chris dug deep to turn his grief into greatness. He used his fears to carve out a success story for the history books. 

Most of us will never come face-to-face with a situation like Chris Paul; however, we've all had our share of "61st point" moments. For Steve and I, The coIN Loft is our moment. It is the second one we've had to endure as partners. The first was our decision to take a leap of faith to start Verge. The difference now is that we can rely on the support of an entire community to see us through the tough times. The difference for you is that now, through our coworking community, you too have a soft place to land when tough times arise. You no longer have to pace the hallways of your house or nervously sip coffee after coffee when things don't go your way and need to be fixed. You can simply reach out to your neighbor to discuss and collaborate on solutions. Times like these will arise often during your days as an entrepreneur. Let's get through them together. 

Posted via email from Wes & Steve are The Dumb Kidz?

Don't Panic! (your brain might get stuck that way!)

We've all heard the fabled warnings of our mothers about not making faces because they might just get stuck that way. Until today I never thought those words, now pearls of wisdom, had any validity.
Over the weekend I watched "Bad Company", a spy/thriller film staring Anthony Hopkins and Chris Rock. The basic premise of the film is Chris Rock, unbeknown to him, had twin brother that was killed in the line of duty as a government agent on a high profile case. Anthony Hopkins works for the same department the twin did. The department tracks Rock down, sequesters him, then trains him to pick up where his brother left off.
During one of the scenes, Rock is suddenly abducted in his sleep by agents and brought to an interrogation room as a part of his training. After a short bit of dialogue about the ordeal, Hopkins explains to Rock how the brain shuts down during times of fear/panic. As a young entrepreneur, those words stuck with me. I asked myself "if fear impairs my brain function during times of anxiety, how is it effecting my ability to think clearly about my business?" I would challenge you to consider the same.
Fear is one of our most basic and vital survival tactics. What we consider as our "fears" is made possible by the amygdala, a small almond shaped organ near the base of the brain. It's primary role is to process and store our emotional reactions. In other words, when we are faced with situations that increase our anxiety the amygdala produces an involuntarily compulsory reaction which tells us to run, fight, or freeze. Consequently these reactions may not be beneficial to dilemma at hand, but it's what we've unknowing conditioned our brains to do. Over time, the reactions become hard-wired into our psyche. This process is referred to as fear conditioning.
What am I getting at?
Our business ventures present us with stressful situations on a daily basis. One day it's the need for process innovations or increased efficiency of operations, the next day it's the need to diversify our product line, while the next day we could be faced with the decision to use twitter to reduce the cost and time of our marketing strategy. During these times of excessive anxiety, we need to take a second to consider our options, rather then allowing ourselves to simply react. Consider prototyping your way through the problem with quick sketches, mind maps, analogies, and metaphors. Another sure fire way to hedge off detrimental compulsory reactions is to frequently discuss your business with a trusted colleague or friend. Their perspectives can help you approach things in a more rational way. Remember, how you think is what will be!

Posted via email from Wes & Steve are The Dumb Kidz?