I believe I am the first person to use this term with respect to start-up success. Googling “Learn Rate” yields results with respect to algorithms, math and artificial intelligence but, nothing with respect to start-up founder’s ability to learn. IMHO ”Learn Rate” is likely the single most important factor in start-up success … perhaps next to luck and timing. I am not alone in thinking that learning is important BlackBox Start-up Genome report lists:

Photo Attribution: IMA ClOWN 4 COLOR by The Glowing North Stars

“ 1. Founders that learn are more successful: Start-ups that have helpful mentors, track metrics effectively, and learn from start-up thought leaders raise 7x more money and have 3.5x better user growth.”

Definition
Learn Rate = Capacity x Speed x Attitude

There are likely attributes of each component that I’ll have to give some more thought to. However, at a macro level those three components are the vast majority of “Learn Rate”. More pondering required.
TheCodeFactory has recently stealthily started a couple of new initiatives to improve the “Learn Rate” of start-ups. The project is still in alpha, however, the initiative is open to the start-up community at large. We are currently recruiting for a couple of more participants in the second cohort of our alpha run. If you are interested please ping ian (@) thecodefactory (dot) ca and I could provide more details.

Ian Graham

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I attend a Canada 2020 presentation last night at National Gallery featuring Martin Wolf. In terms of economic theory … the more I learn the more I learn how little I know. There were some really intelligent people in attendance last night and the preambles to questions were filled with economic theory gems. Most of the meaning contained in the preambles was well beyond my humble economic theory comprehension. However, I believe that I did glean some keen insights from Mr. Wolf. In passing he said something to the effect of those industrial jobs are not coming back … and that insight forms the basis of this post.

There were lots of intellectual theorizing on fixed exchange rates, fiscal and/or monetary policy levers and a raft of other economic tools to influence and calm potentially volatile markets. However, IMHO when you boil economic recovery down to its most simplistic solution it is without a doubt creating long term sustainable jobs. Economic policy levers influence but do not drive the economy. Job growth will spur economic recovery and growth is a driver of the economy not a follower. The gem I gleaned from Mr. Wolf is that industrial era jobs are gone and will not come back.

The economic downturn is a function of two key drivers; unethical behaviour in capital markets and a tectonic shift in the base of employment from industrial to knowledge based jobs. The lack of regulation on financial markets lead the economy into the recession, however, it will be job creation that leads us out. Government policy levers need to recognize that regulating financial markets will help to prevent future unethical behaviour but these measures are in no way a cure for the current economic malaise.

The key to economic recovery is in dealing with the tectonic shift in employment base and not preventing future recessions. Industrial era policy will not work in the era of knowledge based jobs. Financing physical infrastructure such as roads and buildings may have paved the way for economic recovery in the Great Depression, however, the same policy and paradigm will not spur recovery today. What will facilitate economic recovery is a knowledge based policy paradigm. IMHO one of the greatest challenges and opportunities in North America today is re-skilling the industrial work force to become more entrepreneurial. If industrial jobs are not coming back and traditional industries are crumbling before our eyes then we need to spur innovative thinking and creativity to forge new industries. We need to find, facilitate and encourage the knowledge era equivalents of Henry Ford and Thomas Edison.

That transformation is cause for much reflection … more coming soon.

Ian Graham

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This post summarizes a great article I found this summer in the Kauffman Foundation Thought Book for 2011. Andrew Hargadon article “Policy Levers for Fostering Innovation and Entrepreneurship in Clean Technology” gives some wonderful insights into fostering innovation. I have simplified the article and made it somewhat more policy generic rather than sector specific.

Photo Attribution: The Spaceship of Tokyo by Stuck in Customs

Key levers for policy levers to foster innovation;
“First, innovation includes both the development and widespread adoption of new technologies and practices. R&D investment does not guarantee success.”

“Second, innovation depends as much on new business models as on new technologies.
Third, new business models tend to come from start-ups and the entrepreneurs who lead them. Incumbent firms drive incremental innovations that fit within their existing business models.”

“Fourth, innovations’ biggest productivity growth and impact come after new technologies are put into practice. The market validation of new business models, technology platforms, and market needs spur investment in complementary innovations up and down the new supply chain.”

In Canada there are plenty of government programs to help with the R&D side of technology adoption but far fewer incentives to support the market adoption of new technologies. A more balanced approach to innovation incentives and policy is important. The number of people a company has working on R&D is quite possibly far less important than the type of innovation the people are working on.

The second and third points provide excellent validation of the importance of start-ups in the innovation process. Start-ups can potentially create the greatest innovation value by introducing new dimensions to a market. Innovative emerging technologies have a greater probability to produce true economic growth.

Therefore a national innovation strategy should seek to;
- Take a holistic view of innovation
- Recognize the importance of start-ups to innovation
- Target specific emerging technologies

Ian Graham

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All start-ups face a multitude of challenges and obstacles on the long and bumpy journey to success. The key to start-up DNA success is not really all that mysterious and could quite possibly be boiled to: Passion, People and Persistence. However, understanding the bonds and genetic code that holds the strands of start-up DNA together … is more art than science.

Each year since 2005 I have been picking 3 start-ups to watch … alumni report to follow later. It seems to me that for the past 3 years there have been a steady upward and positive trajectory to the Start-up scene in Ottawa. This year’s cohort of start-ups to watch is IMHO tangible evidence of Ottawa’s grassroots potential. According to tradition the start-ups are presented in alphabetical order;

Arkalumen is based on a great idea and matched with an excellent plan of execution and great people. This start-up certainly has all of the right ingredients for success.

Avacano is a start-up with the ability to adapt and a founding team that definitely seem to have great Start-up DNA. As the youngest start-up with the furthest distance to go I still really like their chances.

PowerScout Sports is another really great idea with amazing people. In fact Brad Stewart is the first person to be named to the “start-ups to watch” list twice. Great idea and great people should equal great execution.

May all the start-ups have success and good fortune on the long road ahead. Wising that the fire of passion keeps burning brightly; you have the good fortune to meet great people along the way and finally the strength of conviction to above all else persist.

Ian Graham

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I have been thinking about this concept for quite a while now but the way to describe it came to me over coffee with an aspiring entrepreneur. Do you remember a problem from math class where a frog jumps half the distance to a point in the distance each time? How many jumps will it take the frog to reach the point? The answer is never.

The same principle can be applied to knowledge acquisition when starting a business. The first time you do something is probably the greatest increase in applied knowledge. From one to two, and two to three there is a significant increase knowledge acquisition. However, after roughly the third time there is something of a law of diminishing returns. You will learn more and quite possibly more profound knowledge, but the incremental increase in knowledge is much smaller.

Last point is no matter how many times you do it you will never reach that 100% there is always more to learn.

“The more I learn, the more I realize how little I know.” – Socrates

Ian Graham

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After yesterdays sarcastic post on inspired email I thought I would turn the tables with a more positive spin on emailing customers.

Earlier this summer Paul Jensen gave me a copy of Derek Sivers book “ANYTHING YOU WANT”. I took the train to start-up fest in Montreal the next day and read the book on the way there. Awesome read and I highly recommend the book. Please see below for a great example on how to write a customer support email that WILL inspire.

Customer name-

Sigh… We miss you already. We’ll be right here at http://cdbaby.com/, patiently awaiting your return.
–
CD Baby
The little store with the best new independent music.
http://cdbaby.com cdbaby@cdbaby.com (503)595-3000

Nuff Said.

Ian Graham

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I had not planned to write a blog post today, however, I received an email this morning titled “Clicky Status” from Clicky a web analytics start-up. The email has some great lessons on how not to talk to potential customers. This is the kind of stuff you just cannot make up. Please check out the email below:

Hi Ian,

– Your friends at Clicky
http://getclicky.com

Note: This is an automated message
I haven’t used Clicky in probably two years and had totally forgotten about it. Clicky has a decent offering but the value proposition isn’t compelling enough for me to switch to the premium paid version from Google Analytics which is free and continues to improve.

Here is my take; Clicky is making a feeble attempt to get me to switch to the paid version of their software but using a stick instead of a carrot. Sure negative selling works but it can also piss people off. Hey, I am taking the time to write about their poor customer service. I have neither the time nor inclination to uninstall their tracking code … surely than can just disable the information collection on their end.

“Please be courteous and remove the tracking code” … so they are implying that by not uninstalling the tracking code I am being discourteous … somewhat insulting. I tell you what is discourteous is getting an email like this telling me to remove code or switch to a premium paid version … #@$% off.

But wait it gets better … if I don’t remove the tracking code Clicky is threatening to keep spamming me with this message. EVEN BETTER thanking me in advance for my co-operation with an exclamation mark … hey not only is Clicky insulting me they are yelling at me too.

Kids don’t let this happen to you … so many lessons in how not to win and influence customers.

Ian Graham

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Your whole life can change.

I have had quite a few inquiries lately regarding our website being a little behind. Anyway thought it would be helpful to provide a bit of an explanation. I have been toggling back and forth on whether or not to post this to the blog. Gareth my son was going to be helping me out over the summer with running TheCodeFactory. Along the way we hit another bump in the road less traveled.

Imagine yourself walking across a cross walk at a four way stop on June 5th, on a bright sunny day in the middle of suburbia. As you get ¾ of the across the walkway a mini van blows through the stop sign hitting you so hard you fly over the van flipping thought the air and then landing on your side. Your shoulder is dislocated and broken in 3 places, your hip broken and you have a gash to your head.

You spend the day in emergency (the hospital staff at Queensway Carleton were amazing) and after numerous medical procedures the on duty doctor decides the injury to your shoulder is deemed too complicated to be performed at this hospital. You are transferred to the Civic for the expert surgeon. You spend the night waiting overnight for surgery first thing in the morning

Monday morning arrives and after many hours of surgery the prognosis for the hip is good but the shoulder less certain. A young man on the way to the gym and his family have had their life turned upside down by a driver not paying attention. Many lives change in the blink of an eye. You hear about incidents similar to this all the time but this is something that happens to other people not to you.

Lessons learned out of this;

Life is not fair
The person that hit my son may get a fine and have an increase in insurance rates and then get on with their lives. The driver’s life will probably not change in a substantial way as a result of the accident. Gareth has many months of rehabilitation ahead of him. His life has changed as a result of the accident and it has been huge disruption and source of stress to our entire family.

Life should be cherished
We are very grateful and fortunate that Gareth is still with us. I think about this all the time now. If he had landed the wrong way it could have been a very different story. Please let your kids (or anyone close to you) know regularly how important they are to you.

What is important to you?
It is easy to get wrapped up in all the stuff going on in your life. Sometimes a hard knock can cause you to reflect upon what is really important in your life. Don’t feel like you have to wait for the hard knocks in life to assess what is really important to you.

Ian Graham

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