Inside VT KnowledgeWorks

Origins of Entrepreneurship

From Sylvia Parsons, intern with Handshake Media, Incorporated, a VT KnowledgeWorks member company:

It's the age old question of nature v. nurture:  Are entrepreneurs born or raised? Although it seems the safest answer, I have to say both.

Initially, I was inclined to agree with Forbes.com and state that entrepreneurs are born. At least one might be born with the entrepreneurial spirit. I’ve had the itch since childhood - always creating and innovating new games and inventions. Now, as I complete Graduate School, I know I will not be satisfied until I lead my own enterprise. Even then, I will always be driven toward more. I speak to woman entrepreneurs, and many echo the same sentiment. Some people just can’t shake that self-starter attitude.

As I learned through a discussion with Better Agreements, Inc. Director, T’aiya Shiner, drive alone is not enough. To create the wealth and growth necessary for success, one must also possess (or leverage a team that possesses) business sense, administrative tact, and communication skills. Anyone born with all these skills is a destined powerhouse.

So does that mean everyone else with a good idea or desire to be self-employed should just throw in the towel?

Of course not. 

Some people can be born with the spirit and never actualize it into entrepreneurship. Others have what Thomas Harrison, author of Instinct, describes as “latent traits” of the spirit and don’t even know it.

I am writing a series of blog posts on women entrepreneurs because I am ready to take the first step. As my mentor, Handshake Media, Inc. founding President/CEO, Anne Giles Clelland, demonstrates, through self-reflection, one can address personal challenges and leverage strengths to become a powerhouse.  

The learning curve may be steep, but armed with determination and the right tools, it can be climbed.

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Sylvia Parsons will complete her Master's Degree from Virginia Tech in Human Development in the fall of 2009.  She is an intern with Handshake Media, Inc., and with Better Agreements, Inc. "There's Something About Her," the series by Sylvia Parsons, can be found on Handshake 2.0 under Women Entrepreneurs. Feel free to follow Sylvia Parsons on Twitter.

The First Sale

From Z. Kelly Queijo:

Recently, the founder of an information technology (IT) start-up asked if I thought his software was something a salesperson would want to sell. Knowing that, as reported in Entrepreneur.com, the reason most businesses fail within the first five years is due to lack of sales, I felt the weight of his question. "Will someone want to sell this?”

What had worked well for me as a salesperson was believing that the software I sold offered a solution to a problem. I had passion, knowledge, and even experience as a former client - and being a converted client creates a terrific background for selling. But, a start-up doesn't get that with something brand new. A new business starts from scratch - the right fit has to be found for the product and for the company.

Alec Siegel, Director of Blacksburg Operations at S.R. Clarke, Inc., a recruiting firm specializing in the technology space, says, “Selecting the right sales person can be the most crucial decision a business ever makes. You have to determine why would someone want to work for you. They have to have a good story to sell.”

The tables are turned. Usually a prospective hire has to “sell” him/herself to the company, but before that can happen, the company must convince the prospect that they have something worth selling. According to Siegel, other factors enter into the equation as well: the length of the sales cycle, base pay vs. commission, and direct selling vs. distribution channels.

“Start-ups don't have a lot of money to incite a sales professional, so it's more common to offer a higher commission with a lower base. You know the saying: 'you've got to spend money to make money?' This is true especially when your sales cycle is lengthy." Siegel says to keep in mind that if a company has a six-month sales cycle, the sales person will need to be covered during that time.

So what does this mean to the start-up? It means the first sale made will be the most important one - the one made to the person hired to represent the product or service.

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Z. Kelly Queijo writes about business and technology, people and their passions.  She is a frequent contributor to Handshake 2.0, an enterprise of Handshake Media, Incorporated, a VT KnowledgeWorks member company.

Jim Flowers Makes List of Top Entrepreneurial Bloggers

Adam Evers, creator of Startup Student, asked for submissions from followers of @startupstudent on Twitter and from his site's user base for a list of Top Entrepreneurial Blogs.

No surprise to his followers, both online and off:

The blog by Jim Flowers, director of VT KnowledgeWorks and @startwithmoxie on Twitter, "So you want to launch a business..." made the list.

Congratulations, Jim!

Studying How "Green" Nanotechnology Can Be

Matthew Hull, founder of NanoSafe, Inc., a VT KnowledgeWorksmember company, was featured in a Nanowerk Spotlight, Nanowerk's "nanotechnology feature [that] looks behind the buzz and the hype...[to] what's new and hot around the globe."

The Nanowerk Spotlight, Not so 'green' nanotechnology manufacturing, explores the implications of the paper by Hull et al., Release of Metal Impurities from Carbon Nanomaterials Influences Aquatic Toxicity, on environmental impacts of impurities and byproducts associated with nanomanufacturing processes.

In their study, Hull and colleagues studied whether feedstock metals associated with the production of these materials can become mobilized and reach toxic concentrations in simulated aquatic systems.

The photos, courtesy of Alan Kennedy, US Army Corps of Engineers Engineer and Research Development Center, show the two types of test organisms used in the study.  In the upper left is a larval fish (the fathead minnow) and to the right is a water flea (Ceriodaphnia dubia).

According to Matthew Hull, "As these results demonstrate, management of nanotechnology wastes will factor heavily into emerging nanomanufacturing activities.  Consequently, NanoSafe, Inc. has positioned itself to provide waste management solutions for generators of these wastes."

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NanoSafe, Inc. helps nanotechnology organizations navigate emerging environmental health and safety (EHS) issues.  NanoSafe, Inc. offers consulting, testing, and research and development services designed to accommodate a broad range of client needs.  Founded in 2007 by Matthew Hull, NanoSafe is headquartered in the Virginia Tech Corporate Research Center's VT KnowledgeWorks Business Accelerator (Blacksburg, VA). 

Don't-Dos for Entrepreneurs

An excerpt from A Dozen Don'ts for Entreprenurs by Guy Kawasaki, 6/30/09:

1. Don’t worry, be crappy.
2. Don’t give out lofty titles.
3. Don’t hire your family.
4. Don’t sweat valuation.
5. Don’t believe venture capitalists.
6. Don’t create lofty forecasts that you call “conservative.”
7. Don’t believe that the exception is the rule.
8. Don’t focus on partnerships.
9. Don’t build out your infrastructure.
10. Don’t assume you’ll ever raise another round.
11. Don’t compare your intentions to other employees’ results.
12. Don’t ask people to do something you wouldn’t do.

The Accelerated Entrepreneur - My Top Takeaway from One Year at VT KnowledgeWorks

Head to toe, mind and heart, Achilles was a powerful man.  Only a few inches below his calf, in just the tiniest square inch in contrast to the vast expanse of his body, he had an insurmountable weakness.  At his own heel, Achilles could be felled.

My top takeaway from one year as a company founder at VT KnowledgeWorks?

I have learned my Achilles heel.  Wounded there, I am felled.

My Achilles heel:  Straying from my vision.

If I do not follow  my vision, I lose heart.

When I lose heart, I can’t go on.

I feel courageous and clear when I have my vision in mind and make decisions, easy and hard, that correspond with or further the vision.

When I give others authority to define my vision, or follow the visions that others think would be better for me - or would be better for them - I lose heart.

Although I listed what I miss being a company founder rather than an employee, I don’t lose heart from it.

Without a salary, I make do.  Before fifty, having a self was of paramount importance to me.  Now that I’m fifty, I have a self and having a mission is self-sustaining.  I do work a lot and I am tired a lot, but if my genes hold out, I’ll have plenty of time to rest as does my 99-year-old grandmother dozing at Warm Hearth.  With regard to becoming a hard and hardened woman, really, I’ve looked into Medusa’s eyes enough to be turned to stone.  I expect triple digit growth in my company as The Crying CEO.

As long as I don’t lose heart.

As long as I follow my vision. 

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Photo:  In a triathlon, the age of the participant is marked on the calf - just above the Achilles heel. 

Jim Flowers Showcases VT KnowledgeWorks on an International Stage

On June 4, 2009, VT KnowledgeWorks’ Director, Jim Flowers, shared the stage in Paris with Mme. Christine Lagarde, French Minister for the Economy, Industry, and Employment, as they honored the winning student team at the Annual Entrepreneurial Project Challenge at TELECOM Sud-Paris. 

As part of their award, the winning students will enjoy a week of leisure and learning at VT KnowledgeWorks in Blacksburg, VA.  Activities for their September stay include a welcome dinner courtesy of the Virginia Tech Office of Outreach and International Affairs, a two-day Founders’ Readiness Retreat at Mountain Lake Resort, on-the-job shadowing of company presidents in the Virginia Tech Corporate Research Center, social time with Hokie Entrepreneurship Society student members, and, best of all, perhaps, tickets to the Virginia Tech-Marshall football game. 

The team plans to work in Blacksburg next summer as they continue to prepare their business concept for funding and launch.  VT KnowledgeWorks is already the summer work-home of two other student teams from TELECOM Sud-Paris, winners of earlier contests at the French high-tech institute.

Preliminary planning is underway to expand the international reach of VT KnowledgeWorks to include other countries in Europe and beyond.  A combined event, including both student teams and tech-business trade missions, is scheduled for September, 2010.

“The market for technology-based businesses is global,” says Flowers.  “By encouraging person-to-person overseas relationships for our local companies and entrepreneurial students we provide them with easier access to markets beyond our shores.  Of course, the reverse is true as well.  The dialogues also improve understanding of American markets for our foreign visitors.  Everybody wins.”

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Link to VT KnowledgeWorks Goes International videos

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VT KnowledgeWorks is a unique growth enhancement program open to entrepreneurs in the New River Valley and beyond.  Acceleration center and incubation facilities are located in the Virginia Tech Corporate Research Center in Blacksburg, Virginia.  Programs for Members are divided into two categories according to the evolutionary status of the member company.  Pre-Launch program components are carefully constructed to help market-worthy ventures organize, formulate strategy, obtain outside investment, and launch in an efficient manner.  Enterprise class members benefit from emphasis on strategic support for ongoing growth, continuing intra-preneurship, and professional development for the corporate leader.

VT KnowledgeWorks sponsors include Attaain, Inc., BB&T, Handshake 2.0, Harris Office Furniture, Hodges, Jones & Mabry, P.C., Latimer, Mayberry & Matthews IP Law, LeClairRyan, Science Applications International Corporation (SAIC) and The Becher Agency (TBA).

Entrepreneurship and Intuition

Inside VT KnowledgeWorks asked Barbara Schwarck, founder and president of Clear Intentions and author of From Intuition to Entrepreneurship: A Woman's Guide to Following Her Dream, for advice for entrepreneurs.

Barbara Schwarck replied:

I am going to share with you one golden nugget called emotional-intelligence or emotionally-aligned goal setting. It has made a huge difference for the entrepreneurs I have had the pleasure to coach over the past ten years.  Here is an abbreviated version:

Our brain is divided into three parts: the neo-cortex, limbic and reptilian. The oldest and most primitive part of the brain is the reptilian. It is most concerned with survival. Our motivation and feelings are located in the limbic part of the brain. The limbic area is also the central relay center, responsible for conveying neurotransmission messages from the reptilian brain to the neo-cortex. The neo-cortex is the seat of rational thought. However, just because it is rational and conscious, does not mean that it is always in control. It is tricky business getting all three parts of our brains pulling in the same direction.

For example, suppose your neo-cortex (conscious) wants you to start a high-tech business. It is rational and identifies a logical plan to build the business. Your limbic system, however, is tentative because you saw your father fail at a similar venture. Since you have a highly charged emotional memory associated with failure, your reptilian brain is terrified and not aligned with your business venture. What if you fail? How will you feed yourself and your family?

With these competing “thoughts” and “feelings,” it is very unlikely that you are going to be successful with your new endeavor.  Now what?

Research indicates that the key to improving one’s performance is getting all parts of the brain aligned. Success is not only a function of the neo-cortex, but many biochemical processes that are deeply embedded in our bodies and consciousness.

Some ways you can detect and correct your misalignment include journal writing, hiring a business coach and muscle testing. If you are not producing the desired result, but are doing all the “right” things, most likely you are not emotionally aligned with your goals.  That's what we cover in our book.

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Thanks to Catherine Fong, an intern with Handshake Media, Incorporated, a VT KnowledgeWorks member company, for her contribution to this post.

Entrepreneur as Case Study

Shane Hutcheson of Outside Media was kind enough to send information about Klymit and to ask Klymit CEO Nate Alder for three tips for entrepreneurs exclusively for Inside VT KnowledgeWorks.

About Klymit, Shane wrote:  "Here's a heads up on a new outdoor gear company in Utah called Klymit that is being featured in two textbooks this summer as a prime example of entrepreneurial success [by]...the young CEO, Nate Alder.  He turned his passion for the outdoors into a great idea that became a big deal in the outdoor industry."

From a press release on Klymit:  "Klymit, an innovator in outdoor technology, is being recognized again by the academic community for its revolutionary business model."  The two textbooks are the forthcoming sixth edition of Essentials of Entrepreneurship and Small Business Management by Thomas W. Zimmerer, et al., and Entrepreneurship: Successfully Launching New Ventures by Bruce Barringer.

Thank you Shane Hutcheson and  Nate Alder!

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Three Tips for Entrepreneurs from Nate Alder:

1. Knowledge Brokering

From The Harvard Business Review, “The best innovations aren’t lone geniuses. They’re people who can take an idea that’s obvious in one context and apply it in not-so-obvious ways to a different context. The best companies have learned to systematize that process.”

My best ideas are a conglomerate of different products or ideas, applied in new ways. My inspirations come from adventure, travel, nature and existing products.  We look at parts of random products from random industries. If we have a development problem, we ask ourselves, "How has this problem been solved already by another product in another industry?" We look at all kinds of toys, gear, products etc., to see if any component can be helpful. My favorite quotes are: “To Invent you need a good imagination and a pile of junk,” and “First, study the present construction. Second, ask for all past experiences,” by Thomas Edison.

2. Creating Blue Oceans

There is a lot of buzz about "red oceans," but there is just too much noise and competition. It is boring and no fun. I am an adventure junkie who is all about taking high risks and having fun. If I end up having an idea that risks the danger of entering into a red ocean, I stop and think, “How can I convert this to a blue ocean?” For example:

• Don’t debate, innovate!
• Tell how you're different, not better
• Be hybrid-capable to enhance competitors
• Use adaptable add-ons
• Redefine the need; choose features others cannot talk about.

3.  Getting Start-Up Experience

After everyone has given their advice, the most valuable education is experience. Rather than only reading about it or writing fancy business plans, you have to get out there. Find a start-up company that you can work with, preferably one that cannot afford to pay you a salary yet. Start at the ground level and learn every step, including what decisions lead to success and which cause problems.  If you don't know what to do long-term, the experience will serve you better than anything else.

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More from press release on Klymit:  "Klymit is a noble gas technology company based in Ogden, Utah.  Klymit develops and licenses its noble-gas-based, variable insulation technologies to companies in a variety of industries. Klymit Kontrollable Insulation is the only technology on the market that gives users the power to Kontrol the Elements and adjust their level of warmth with the turn of a dial. The noble gases used in Klymit’s technologies are non-toxic, non-flammable, and safe for the environment."

Founding a Company Is the Most Efficent Way to Create Wealth

As the founder of a start-up company, I had to laugh when I read this from The Start-up Guru: Y Combinator's Paul Graham, Inc., June 2009:

Of all the things that Paul Graham hates about running a start-up -- and there's not a whole lot about it that he likes -- the customers bug him the most. Everyone has a problem with your product, and people are constantly calling to complain about things you cannot possibly fix. Then there is the fact that you are doing everything for the first time, which creates a crippling sense of uncertainty, as well as a persistent fear that a single bad decision could doom the whole enterprise. There are squabbles with co-founders and combative negotiations with investors and that gut-wrenching period when you realize that success isn't going to come quickly or easily -- Graham calls it the Trough of Sorrow. Graham's start-up days are more than a full decade behind him, but he can't help recalling them with a shudder. "It's like talking to someone who went to war," Graham says. "It s---s to run a start-up."

The "Trough of Sorrow," indeed.  Yep, sometimes.

Then there's this, which, of course, explains everything:

It's odd to hear Graham speak this way, because he now oversees what is perhaps the most ambitious campaign of start-up creation ever attempted. His company, Y Combinator, is a hybrid venture capital fund and business school that invests in, advises, and, literally, feeds 40 or so early-stage businesses a year. Investments are small -- less than $25,000 per company...

Why is Graham, an avowed start-up hater, doing this? Because for all the pain, he believes that founding a company is the most efficient way to create wealth -- for investors, for founders, for society at large -- and because he thinks he can make starting a company a lot less painful. "There's this classic pattern that has happened over and over again throughout history in which something is made one at a time, very expensively and unreliably by hand, and then someone comes along and figures out how to make large numbers of them cheaply and reliably," Graham says. "We're pulling this kind of transformation with venture funding. We're mass-producing the start-up."

Very interesting, Paul Graham, I love hearing your idea that founding a company helps produce wealth for society at large.  And thanks for your generous advice for entrepreneurs.

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Note:  Since posting, the first page of the article has become unavailable, but a related video has been added here.