There are 7 billion people in the world…how many have thought of your start-up idea?

 Mindset  No Responses »
Aug 242012
 

How many times has this happened to you?  You have a great idea that you think no one else has thought of only to run across someone who is already doing it.  What do you do?  I met a founder who explained with passion how he was moving along on his start-up only to run into a company at a conference that was doing the exact same thing.  In fact, they were a bit further along than he was.  He decided to quit his own project and is now helping another founder with a non-related start-up.  When he explained the new start-up, it was obvious his heart wasn’t in it.

Did he make the right choice?

Unfortunately, in his case I don’t think so.  He had a real strong connection with his original start-up idea and was making good progress toward it.  It’s no secret that the start-up journey is difficult, but what sustains most is the belief in what they are doing.  He had that belief and a means to see it through.  In fact, many great ideas can support multiple competing start-ups all of whom can secure marketshare and be successful.  Ideas are great, but as any experienced angel, VC or founder will tell you, it’s really about the execution.  Your mantra must be that you will implement your idea better than anyone else.  It’s competitive out there and you need  to be ready to take on all comers.  This way when you here of a start-up that is very similar to yours, you’ll shrug it off and focus on fine tuning your implementation strategy.

After all, with 7 billion people in the world…..most likely someone is having the same thought you are having, so focus on execution and see it through.

Should your start-up be a B-corp or L3C? If your addressing social and environmental issues, the answer maybe YES

 Social Enterprises  No Responses »
Jun 252012
 

Fill in the blank in the following sentence: The goal of a corporation is to maximize _____________ value.  If you said “shareholder”, then you understand the long established explanation of the 20th century definition of a corporation.  But does this definition work today?  Can a public or private organization simply focus on the bottom line profit without any regard for resource or people impact?  From a legal point, not only should they, but they are required to or face potential shareholder lawsuits.

As organizations become more conscious of their social responsibility, they are starting to focus on a triple bottom line (TBL).  For those unfamiliar with the term, it stands for people, planet and profit and captures an expanded definition of what organizational success means.  It entails a commitment by the organization to measure success by reporting on economic, ecological and social measures (rather than economic alone).  Unfortunately, the “C” corporation isn’t really structured for this type of organization.  Luckily, there are two structures that help.

B-Corps

The b-corp (or Benefit Corp) is a type of corporation which uses the power of business to solve social and environmental problems.  B Lab, a nonprofit organization, certifies B Corporation based on criteria that meets comprehensive and transparent social and environmental performance measures, as well as other accountability and sustainability standards.  The most significant component of the b-corp is that there is a legal requirement to follow the criteria and corporate documents are changed to reflect that.

L3C

The L3C (or Low-profit Limited Liability Company) is a legal form of business entity created to bridge the gap between non-profit and for profit investing by providing a structure that allows for investments in philanthropic ventures designed to provide a social benefit.  Unlike a standard LLC, the L3C has an explicit primary charitable mission and only a secondary profit concern.  But unlike a charity, the L3C is free to distribute the profits, after taxes, to owners and investors.  A primary benefit of the L3C is the qualification of the company as a program related investment (PRI), thus allowing for investments by foundations who otherwise may not have been allowed (as a for-profit).  The L3C as an official legal structure is not available in all states.

As the definition of corporate success evolves to include social and environmental responsibilities so must the supporting legal and organizational structures.  Hopefully, these two entities are the beginning of a long overdue update.

SOPA / PIPA Protest Draws Hundreds to Midtown Manhattan

 News  No Responses »
May 182012
 
PIPA protest

SOPA / PIPA Protest in Midtown Manhattan

Hundreds from the internet community protested outside the offices of U.S. Democratic Senators Chuck Schumer and Kirsten Gillibrand who are co-sponsors of the Senate bill PIPA (Protect Intellectual Property Act).  For a better understanding of the legislation, review the Standford Law Review explanation here and Roger Yu’s story here.

The legislation threatens the dynamics and freedom of the internet and is primarily supported by special interests such as publishers, large media companies and business trade groups.  Many legislators are clueless to the ramifications.

It’s no longer OKAY to NOT KNOW how the INTERNET WORKS!

Stop PIPA / SOPA.