Archive for April, 2010

What Entrepreneurs Can Learn from the Jacksonville Jaguars’ NFL Draft

Posted on April 28th, 2010 in Small Business | No Comments »

Much to the vexation of our college roommates, we've always enjoyed watching the NFL Draft from wire to wire.  The whole ordeal fascinates us because, as far as we know, football is the only industry where the hiring of entry-level workers attracts that level of scrutiny, drama, and knee-jerk reactions (can you imagine if it was that way in other industries?  We'd love to see Mel Kiper wig out on some struggling airline for reaching on a Business Analyst).  One of the big stories of this year's draft is the alleged blunder that the Jacksonville Jaguars made of their first round selection. So what can an entrepreneur learn from the Jaguars' mistake? Put simply it's this:  when there's free information available, use it (but don't be afraid to buck conventional wisdom).

Due to the insane amount of media coverage surrounding the NFL draft, "Mock Drafts" (in which a person attempts to predict where players will be drafted) have become something of a cottage industry.  While the wisdom of any particular mock draft is questionable (only a small handful of these draft "experts" have any actual expertise when it comes to scouting football players) a savvy team could leverage the wisdom of the crowd to gain some rough idea of how long they could wait before drafting a particular player (for example, if 95% of mock drafts have a player falling to the late 1st or early second round, that player will, more often than not, fall that far).  Enter the Jacksonville Jaguars.

The Jacksonville Jaguars are, from a fiscal standpoint, one of the worst teams in the National Football League.  Attendance at home games has been so dreadfully low that the team is on the verge of moving.  After a poor season that saw the team drafting 10th, the Jaguars were in desperate need of a strong draft that would both (1) win games for the team and (2) put butts in the stands.  When it came time to make their first pick the Jaguars, however, ignored the wealth of free information available to them and drafted defensive tackle Tyson Alualu, a player virtually every draft "expert" had graded out as, at best, a very late first round pick.  The results of this pick are disastrous for the Jaguars.  By picking Alualu with such a high pick, the Jaguars alienated fans (who were told by every expert on TV that the pick was a terrible pick) and, in all likelihood, almost certainly harmed their ticket sales and their bottom line.
 
Don't get us wrong–there's a chance that Tyson Alualu was by far and away the best player available for the Jaguars to draft. But, given the team needs of the next three teams drafting, it was a virtual certainty that Alualu would have still been available 3 picks later the 13th pick.  Why, then, did the Jaguars not offer to swap picks with San Fransisco (who traded the 13th pick and a 4th rounder to Denver for the 11th overall pick)?  Had they done so, the Jaguars could have generated the opposite reaction from picking the same player.  Instead of being perceived as foolish, the team would be viewed as savvy for getting as much as they could out of the value that their pick represented.

At the same time, it's important to understand that the Jaguars did something that everyone would do well to emulate: they didn't let conventional wisdom dictate the direction of their organization. It was foolish of the Jaguars to ignore free information that could have given them insight into what other teams were likely to do (insight that they could have used to draft the same player at a later pick).  But it would be equally foolish for the Jaguars to let that wisdom dictate their ultimate decision.  In any industry, businesses thrive not by being the same, but by being different.  A business that trusts conventional wisdom over its own vision is never going to be a leader.

 

OrangeSlyce @ MIT Enterprise Forum – Cloud Computing

Posted on April 23rd, 2010 in Small Business | No Comments »

Tonight was the Phoenix MIT Enterprise Forum at the Hilton in Scottsdale with a focus on Cloud Computing. OrangeSlyce was selected as a showcase technology startup – it was a great opportunity to spread the word about OrangeSlyce with technologists and other entrepreneurs in Phoenix. Individuals from IBM, SalesForce.com and Microsoft provided excellent presentations on how cloud computing has evolved over the last few years and where its headed.
My take? Cloud computing is here to stay. Within a few years, buying servers will be like trying to run your own electric generator to run your microwave… crazy! So the big question is, how is OrangeSlyce taking advantage of cloud computing technologies? For those of you who don’t know, OrangeSlyce.com is hosted with a service called Heroku – a true cloud computing platform which completely abstracts away the concept of servers into a “power slider”. When our website gets busy and traffic becomes overwhelming, we login and nudge that bar to the right. Instantaneously, the lights stop flickering and we are back in business (of course with a higher price tag). It’s part of our strategy for 100% uptime; a goal we’ve been able to maintain for the past several months.
If your business isn’t managing servers, why the heck are you managing servers?

The Case for Turning Down Fishing Lessons

Posted on April 7th, 2010 in Small Business | No Comments »

“Give a man a fish, and feed him for a day.  Teach a man to fish, and feed him for a lifetime.” 

This simple proverb has been used by people from all walks of life to justify everything from the need to do your chores to the need for more education spending to welfare reform. We’re not here to discuss the applicability of the proverb in those instances; our ambitions are far more modest.  Our argument is merely that the smart small business owner is the one who eschews “fishing lessons” in most cases.

In the old days, when economies were less specialized and people were more self-sufficient, the whole “teach a man to fish” thing made sense.  If you were, say, a frontiersman with a hankerin’ for some fish, your best bet would be to take a pole out to the closest stream and get to fishing.

Laura Ingalls

Then this lady wrote a book attacking you for not sharing your fish

Things work a bit differently these days, though. We’re willing to bet most of you reading know little to nothing about fishing (outside of “put worm on hook, throw hook into water”) and yet, shockingly, most of you have probably eaten quite a bit of fish in your lifetime.  How’d you manage that?  Because we live in a wonderfully specialized economy: someone else gets really good at fishing and catches way more fish than he’d ever be able to eat (maybe he even catches too many fish, although that’s an issue for another day).  Meanwhile, you go out and get really good at something specific—like accounting, or baking, or gambling—and you make money that you can use to buy fish.  Now, if you want fish for dinner, what do you do?  Assuming that your only objective is to get a fish for the lowest price possible (in other words, you’re not going fishing for the love of fishing) then you’re dragging your butt down to grocery store to buy a fish.  Why?  Because those other guys have gotten so good at catching fish (and you’ve gotten so good at whatever the heck you do) that the work that you didn’t get done while you were out trying to catch a fish would cost you more than it would cost you to buy a fish at LeeLee’s.

When you’re running a small business, it’s easy to feel like a frontiersman.  You have to wear so many hats (manager, salesman, accountant, HR rep, etc) and your budget is so tight that it seems like the cheapest (and maybe the only) way to get things done is to do them yourself.  That’s why those commercials offering software that helps you do things like design your own website can be so tempting.  In truth, though, there’s a vast, skilled, and largely untapped workforce out there just waiting to be leveraged by a wise small business owner (we would, of course, be remiss if we didn’t point out the pool of capable workers registered on our own site).  Considering the time it takes to, for example, learn how to put together a serviceable website from scratch (even with the aid of software) a savvy business owner would do well to ask herself if she can afford not to hire somebody to do it for her. 

If you give a man a fish, you may feed him for a lifetime.  But if you show a man where to buy fish for cheap, he’ll get a helluva lot more done.