Costco Connection - January 2008

FRESHviews
RICH SLOAN: STARTING UP
In praise
of clutter

“IF A CLUTTERED desk is a sign of a cluttered mind, of what, then, is an empty desk?” Albert Einstein reportedly observed.

Rich Sloan is chief startupologist and co-founder of www. StartupNation.com, a leading site for entrepreneurs.

The question provides the thesis behind Costco members Eric Abrahamson and David H. Freedman’s

New year,
new business

A Perfect Mess: The Hidden Benefits of Disorder ( available on costco.com). True stories and case studies prove their point that people with a modicum of messiness and disorder can indeed be more efficient, more creative and, in general, more effective than their highly organized counterparts.

There may be tongue-in-cheek comments in the book, but the authors’ intent is completely serious. “An unproductive and frustrating obsession with neatness and order is a real problem in our society,” says Freedman.

IT HAPPENS EVERY JANUARY. A huge surge of traffic inundates our Web site: would-be entrepreneurs seeking advice on how to start a business. By March, though, traffic drops back to normal as the New Year’s resolutions lose their shine. One by one, millions of start-up dreams give way to life as usual.

With the right tactics and tenacity, though, you can go beyond life as usual and enjoy the passionate, creative and fulfilling life of an entrepreneur. To make sure you succeed in starting up in the year ahead, follow these recommendations.

Know what you’re after. For a dream to be realized, it has to be built on reality—your reality. Define what you love doing, what you’re good at doing and where you have experience. Also, get clear on what resources are available, what you’re willing to risk and what you ultimately want to gain. Put your answers in writing to use as a compass

The authors suggest embracing not chaos but flexibility, and warn against over-organization. Freedman offers some tips from the book.

Introducing the new 5 spot

■ Think in terms of disrupting the status quo in your company rather than maintaining it.

■ Most plans end up going out the window; instead, focus on being a fast reactor and improviser.

■ Don’t hold employees to your standards for being organized. People tend to naturally organize themselves in the way that works best for them.

For more information, visit the authors’ Web sites, www.ericabrahamson.com and www.freedman.com. C

A NEW $5 BILL is hitting the streets soon. New security and design features make counterfeit bills easier to spot and tougher for counterfeiters to fake.

The U.S. Bureau of Engraving and Printing offers these tips to help you recognize the new bills. Hold a bill up to the light to see these new features:

■ A large number 5 watermark is located in a blank window to the right of the portrait. It replaces the previous watermark portrait of President Lincoln found on older $5 bills.

■ A second watermark—a column of three smaller 5’s—has been added to the new design and is positioned to the left of the portrait.

for all decision making. This should help you avoid a situation where you end up working for your business instead of your business working for you.

Research extensively but quickly. Search the Internet, conduct a brief survey, read industry studies, attend trade shows—do everything you can to become smart about your business niche. Apply that learning to your specific concept to make sure all of your operational, financial and customer assumptions are on target.

Test-drive your assumptions. As quickly as possible, test your idea on customers. Your first handful of customers will teach you more about your business opportunity than anything else will. Just be prepared to go back to the drawing board—initial feedback may require you to change key assumptions.

Monitor progress with milestones. Create a chart that shows dates by which you plan to achieve major milestones. Include things like “launch Web site,” “win 10th customer,” “break even,” etc. Hitting the milestones is important, but even more critical is adjusting your course when you don’t.

Use the buddy system. I’ve always been more focused and effective when I’ve had someone to talk to about my business. For some people this can be a mentor; for others, a paid coach. For me, simply having a buddy who is smart and supportive and who holds me accountable for my wide-eyed entrepreneurial ambitions has done the trick. Knowing you have to report adds a level of discipline to your work and may be just what you need to help you realize your start-up dreams. C

■An embedded security thread runs vertically to the right of the portrait. The letters USA followed by the number 5 in an alternating pattern are visible along the thread from both sides of the bill. The thread glows blue when held under ultraviolet light. In older bills, the security thread was located to the left of the portrait.

■ A background color of light purple in the center blends into gray near the edges, with small yellow 05’s printed on the front and back of the bill.

The new colors differ from the redesigned $20 bills (green, peach and blue), $50 bills (red and blue) and $10 bills (yellow, orange and red). New $100 bills will follow soon. Officials say $1 and $2 bills

will not be redesigned.

While much of the design change is to thwart counterfeiters, various elements—such as the distinctive color schemes and images—are intended to help people with visual impairments.