Why Branson Really Succeeded

One of the most enjoyable biographies I've read is Richard Branson's 'Losing my Virginity: How I've Survived, Had Fun, and Made a Fortune Doing Business My Way'.

I greatly admire Richard Branson, not just for what he has achieved, but more so for how he has gone about it. His style is very different from most entrepreneurs' and it's a style that cannot easily be replicated.

When I first started reading his biography, I was somewhat disgusted to learn how he often opportunistically started businesses. He described in detail how the system of 'resale price maintenance' imposed unfair taxes on music records, and how he discovered that he could bypass this law by declaring records as export stock and doing a few spins in his van around the Dover harbour!

"It was a criminal plan, and I was breaking the law. But I had always got away with breaking rules before."

I wondered how someone could have become so succesful if this was his attitude to doing business!

Branson then went on to describe how he was eventually arrested and spent a night in a police cell.

"Incentives come in all shapes and sizes, ranging from a pat on the back to share options, but avoiding prison was the most persuasive incentive I've ever had."

A settlement was agreed the day after, and his mother had to re-mortgage the family home to help pay the settlement.

He vowed that he would never again do anything that could land him in jail or harm his integrity.

Throughout the rest of his life, Branson consistently keeps the moral high-ground, never accepts or offers bribes and refuses to stoop to BA's level by countering their 'dirty tricks' campaign.

And look how that worked out for him...

Tertia meets PayPal

Tertia has just raised $2000 on her blog for an impoverished family in less than 6 hours!

The only way she could possibly do this was to use PayPal. But she couldn't simply receive the money directly:

"The reason why I can't do it myself, is that PayPal wont allow South African account holders to receive payments, grrrrrr! Poor Boulder has to do it for me, then pay the money across to my brother in the UK, who then has to pay the money across to me in South Africa and I will draw the cash for Harrison. He doesn't have a bank account, he can't afford the bank charges. Bank charges are horrific in this country, making formalised banking inaccessible to the poor. Don't worry, I wont put him at risk by making him walk around with all the cash at once. I'll give it to him in amounts he feels safe carrying around."

So I decided to put another challenge to Tertia:

Is there any chance you could use your influence and large following to pressure PayPal into allowing South African account holders to RECEIVE money as well as sending it. If this happened, we will very quickly have TONS of township entrepreneurs selling beadwork etc etc etc to a GLOBAL marketplace!

This is one of those things that could be so phenomenally viral as well... As soon as a few township entrepreneurs start selling their goods online SIMPLY and EASILY, many many more will become computer literate and learn how to sell their goods on eBay etc.

Sheesh, imagine the interesting blogs that could be written by such entrepreneurs:

"Today I went to ask for a bank loan. I told them how I was going to sell my unique wire-art online on eBay. The woman just laughed at me. Probably because she saw that my Adidas shoes only had 2 stripes left"

Combine township entrepreneurship + township bloggers + Scandinavian buyers and voila! You suddenly have millions of Rands flowing into this country and going directly to the mini-entrepreneurs.

Before you know it there'll be no need to ask people for donations. Though even if you did, you wouldn't have to hop 3 bank accounts to get the money into the country.

See Also: It's Tips for Trevor Time Again

Simple Change, Big Result

We recently added Username/Password fields to the Skyrove homepage, so that users could log in without first having to click the 'My Account' link.

It's too early to be statistically significant, but in the few days that the change has been there, Hotspot Provider 'Sign Ups' have increased 150%! *



I've wanted to do this for a while, simply to save time and save some people from that one click that might just cause them RSI.

I discussed this change with Axel, our intern, and he mentioned something interesting: Apparently, a website that allows users to sign in on the homepage is more 'sticky'. People who aren't members of the site, will feel part of the 'outcrowd' and will be more interested to find out more in order to become part of the 'in' crowd.

Furthermore, if you have a username/password login section on your site, it looks like there actually MUST be other people using your service!

Is this general knowledge? Has everyone always known this but I've only figured it out now? Does anyone actually find it annoying that some websites make it clear that you won't be 'cool' until you register and they would rather be part of the 'outcrowd'?

*(Admittedly, there were some changes made to our explainer page a few days earlier, and maybe the effects were only being felt now. My best guess is that the combination of the two changes might have had an exponential effect)

iBurst Petition

I got some emails last week regarding my 'negative' post about iBurst Idiocy. I think the main reason why I was so upset with iBurst (I'd never bother writing a similar post about Telkom), was that I thought they were doing everything right. They were building a phenomenal brand and getting a strong following, and then they go and piss it all away by printing a 140,000 pamphlets spreading false information.

I just don't get it when otherwise intelligent and highly paid business executives seem to lose all control over their morals and decide for some reason that instead of competing fairly, they'd rather try underhanded methods to damage their competitors.

Anyways, I'm ranting again. What I did want to say is that Johann Botha has gone a step further than just 'whining' about it, and has helped set up a petition of sorts.

Please check it out and follow the steps to lay a formal complaint with the ISPA.

Clever CopyCats

In some ways I regret not having taken out a patent on some of the unique features of Skyrove, now that we've seen a handful of copycats popping up. In other ways, I realise that a patent is very hard to protect and that building your brand is really the best protection one could have against copycats.

There will always be people who are clever enough to recognize and copy good systems, yet unfortunately not smart enough to come up with something original.

This is not always a bad thing. It's a good thing when the copycats are doing it with noble purpose and if their vision is truly one of making the world better. When this is the case, I can do nothing more but smile and acknowledge that greatest form of flattery: imitation.

For an example of what I would consider noble imitation, have a look at the Skyrove Movie and compare it with the Tomizone movie which was made about a year later. I spoke to Steve Simms from Tomizone who was big enough to tell me that their video was largely inspired by Skyrove's. I have no problem with this and Steve has been a pioneer in getting Wi-Fi to more people. In this way I see him as a fellow visionary, not as a competitive threat.

To some extent, the Open Source movement is based on this noble purpose. It's about putting something out there for people to replicate and improve. But it's made clear that you cannot do this without recognition of the original author.

It's when copycats undermine the original work and deliberately try to undo the good work of the innovator that they should be put in their place.

Like the 'clever' little gopher in the video below:




Just because you were 'clever' enough to steal something in a new and high-tech way, does not mean you'll get away with it. Be truly original, and you won't have to fight off the crows.

Implied Contracts

Last week I busted the myth that Verbal contracts don't hold as much water as written contracts.

What many people don't know is that there's another type of contract that has the same legal force as an express (written) contract: The Implied Contract

From Wikipedia:

"An implied-in-fact contract (also, "contract implied-in-fact" or simply, "implied contract") refers to a contract agreed by non-verbal conduct, rather than by explicit words. Such contracts are formed when one party accepts something of value knowing that the other party expects compensation."

"Many businesses are based on implied-in-fact contracts not covered by law, but by mutual interest of the parties."

Of course, it's often easier (and cheaper!) to defend a written contract, but I think our many businesses would never get off the ground if they had to pay a lawyer to draw up an overwrought contract everytime they did business with another company, especially if doing business clearly holds mutual benefit.

At the end of the day, if you are lacking a full-on written contract, do not despair. A verbal agreement PLUS an implied contract PLUS written evidence in the form of emails (also between 3rd parties) PLUS 3rd parties who are willing to testify will put you in pretty good stead.

Although lawyers are known to nitpick on the finer details, especially pre-trial (it's worth it when you're paid by the hour), a judge will very quickly figure out whose rights are being infringed upon.

The only way to achieve long-term business success, is by running an honest and ethical business.

Entrepreneur Porn 2: Juice

I had a fabulous dinner with Greg Durst and Helio Machado from Endeavor this evening. Greg is the person who coined the term 'Entrepreneur Porn', and he's done his bit to hook up some of the voyeurs (Venture Capitalists) with the pornstars (i.e. Entrepreneurs).

Tonight Greg spoke about some Cheese & Wine evenings Endeavor has organised, where he brings together some great entrepreneurs, private equity investors, some wise folks and some rich folks with no particular agenda.

Greg: "The most amazing thing that happens if you combine smart and passionate people with cheese and wine, is the 'juice'."

I think he was referring to the ideas and the synergies being formed. I hope so in any case...

Loose Verbal Agreements

I love how the movies sometimes influence our thinking about everyday life. Here are some myths that you may or may not believe:

1. Cardoors can stop bullets (myth busted)
2. Cars explode when you shoot at them (myth busted)
3. When shot in the chest your body will go flying backwards through the air (Newton's 3rd Law would have the shooter flying backwards as well)
4. Verbal agreements aren't legally binding (Remember the guy in Jerry Maguire who said "My word's as strong as oak" and then signed with someone else, leaving poor Jerry no recourse?)

I'll address movie myth 4.

Gilham's Solicitors has a very clear article on verbal contracts:

"It is immaterial whether the contract is verbal, in writing, or partially verbal and partially written, although common sense says that recording the agreement in writing creates a document that may be referred to for its terms in the event of a dispute between the parties."

Furthermore,

"Draft contract documents, emails, letters and order forms may lend assistance to deciding the terms of a verbal agreement, and courts have used similar agreements with third parties to apply a standard of reasonableness in determining the terms of the contract in the absence of writing."

Keeping your word is the right thing to do and will build a better society, and it's for this reason that the law recognizes verbal contracts. You may not subscribe to this belief, but realise that a lifetime's reparations might not regain you your integrity once you've sacrificed it.

Also don't try myths 1 to 3 at home...

iBurst Idiocy

I see iBurst has been getting loads of flack from consumers for their deliberate smear campaign against 'unlicensed' wireless broadband operators.

Here's an extract:

"Anyone who is upset over iBurst’s calls for the public to be wary of doing business with unlicensed operators, need to answer a simple ‘yes’ or a ‘no’ to each of the following questions:

- Is it true that only certain operators such as iBurst are licensed to build their own public communications networks?
- Is it true that ICASA has warned illegal wireless ISPs that they are potentially committing criminal offences?
- Is it true that customers of illegal wireless ISPs face disconnection as ICASA cracks down on illegal operators?” iBurst said.

"iBurst now considers this matter closed," the company concluded.

Okay iBurst, I answered 'yes' to all of the above questions.

Now Alan Junior, if you could please answer the following simple question with 'yes' or 'no':

Are you smart enough to realise that as a result of your shortsighted and libelous smear campaign that I, nor anyone reading this blog, will likely ever use iBurst in the future?

I now consider this matter closed.

UPDATE: Since writing this post, I've been using (and recommending) iBurst more and more. First simply as an interim solution while waiting for a Telkom line, but then continuing to use it in areas where connectivity is robust. I think iBurst could make significant inroads providing last mile connectivity. Let's hope they focus on doing that and don't commit another blunder as in PE.

Web 2.0 Flowcharts

I recently discovered Gliffy, a Web 2.0 Visio-like graphics tool. You can do floorplans, UML diagrams, technical drawings etc.

We're busy doing some flowcharts for Skyrove's processes. Below is a flowchart I created for some basic Wi-Fi hotspot troubleshooting on the Skyrove Wiki.

Are You a Geek?

Last week saw the Cape Town launch of 27Dinner which managed to set off a bit of a geeks vs. marketers war on the SA blogosphere.

Some of it is related to a misunderstanding of the meaning of words such as 'geek', swearwords such as 'marketer' and funky new words such as 'jeek'.

Let's have a look at some of these words.

First off, 'jeek' is the stupidest word of 2010. Remove 2.7182, throw in an 'r' and you get 'jerk'. Furthermore, the definition that's been touted on some blogs for 'jeek' is just plain wrong. A 'jeek' is NOT "someone who succeeds at the nexus of media, technology and business"

In fact, 'jeek' is a cross between 'jock' and 'geek'. According to the Urban Dictionary: "Might be socially inept, but usually muscular and takes various sports. Often has some close friends and gets good grades. Spends life on computer when not working out or playing sports."

So that's sorted... Now, let's move on to 'geek'.

A geek is NOT a computer nerd... A geek is not someone who wears inch-thick glasses and makes toilet bombs with Sodium Iodide and Hydrogen Peroxide. (okay, sometimes we do)

A geek is someone who is curious, information hungry and on a constant quest for more knowledge. According to Wikipedia, a "geek is an individual who is fascinated by knowledge and imagination"

Geeks use information, logic and their imagination to make decisions or come up with new ideas. You get different kinds of geeks. Of course you have computer geeks but you also have botany geeks, philosophy geeks, music geeks, design geeks and (gasp!) marketing geeks!

So why the popular association of 'geek' with 'computer nerd'? Because almost all geeks use computers. Why? Because a computer is the greatest information tool around and all geeks are information addicts. Many geeks will become extremely adept at using this tool and take some extra time learning how to get the most out of it.

So why the perceived threat from marketers? This is because many marketers up till now have not bothered with the information, but rather relied on soft-skills. Some marketers are catching up and are spending a bit more time in front of their computers, slowly evolving (being upgraded?) into geeks.

Marketers need to KNOW what is going on and they have to be constantly increasing their knowledge base. Another definition of a 'geek' offered by Wikipedia (as the one most common among geeks themselves) is "one who is primarily motivated by passion". The stereotypical marketer is seldom motivated by passion, and therefore is seldom 'geek'. However, lately this is starting to change. Seth Godin is someone who is clearly motivated by passion and so are quite a few marketers I've met lately.

So why am I bothering with this post?

Because I strongly believe we should keep the 27 Geek Dinner concept going, rather than pitting 'geeks' vs. 'marketers' or bringing silly terms such as 'jeek'. Mike and Dave are two deep geeks, and they've done a lot to bring together geeks of different disciplines: programming, media, marketing, podcasting, mobile technologists and you name it.

The computer geeks build the products, but need to understand the marketing better. Vice versa, the marketing geeks need to get a thorough understanding of the product and the market.

Marketing geeks should not just be involved in selling products dreamt up by programming geeks, but should be more involved in the design process from day 1.

All these people are geeks, but they do different things and can learn a lot from each other. Bringing them together will lead to better products reaching more people! A win-win situation.

Digg It

Googlethu

The picture below is of Alan Levin. Alan is one of the early internet pioneers in South Africa. He is also 43.9% geek. Now, that doesn't sound like much, but that's the highest score I've heard of so far. You just need to have a look at the Geek Test to know that that's no idle feat! Alan beats my 43% test score and in the geek underworld this means I'll henceforth have to call him Master.

Of course, much more interesting than Alan is the T-shirt he's wearing. A play on the name of a Cape Town township, Gugulethu. For more Gugulethu fun read my post about Township Entrepreneurship and Naked Kings