What I'm up to...

I was asked by the Kauffman Foundation for an update about what I'm currently up to which I'll re-post here:

Fluid Pixel is coming to the end of its second year, which has been great for us. Our turnover has increased by 400% on last year and we now have three full time employees on the development team. We're working on a few larger projects across mobile platforms and the web and have worked with Oxford University, Adobe, Nokia, IGT and NFP Technologies. Our latest iPhone game Cleopatra that came about from the trip to Tahoe last year has just been released onto the App Store.

ImobiGo, the mobile marketing company in conjunction with Tony Solon has also now received funding from NStar to enable it to get through the proof of concept stage and we're looking to secure some additional funding to take it to market. Development on this will start in earnest this month and we expect to have the system up and running for Christmas.

I was also asked about what my top three business needs are currently:

> Bringing on executive board members for both ImobiGo and Fluid Pixel
> Readying Fluid Pixel for growth through developing processes and
> business management policies Securing additional funding

Interesting times, I'm looking forward to the year ahead.

It's grim up north (or is it??)

There's been a lot of aggro recently about an article written about the North East in the Telegraph by Milo Yiannopoulos. He's now writing a series of follow up articles and I finally felt obliged to chip in, especially as I've had some really good support during my time up here.

This is the comment in full from this request.

Here’s my initial take on all this...

Quick intro, I moved up to the North East to study and stayed up here to start a company, Fluid Pixel almost exactly 2 years ago. It’s been a great successfully and during that time I have experienced most of what the NE has to offer support wise.
I've used, not relied on, the various bodies at different points during the business development.

Early stage: IDI (Institute of Digital Innovation then Digital City) for business training, Teesside University for Incubation and training, UKTI & Digital City Business for Trade Missions.
More recently: Business Link for training, Codeworks for placements and events, NFM for networking, NStar for funding to name a few.

IDI are doing some great stuff and have some really exciting projects coming out of their support system. Having come out of their mentoring during its infancy, I’m now on the mentoring team seeing some great prospects that they’re giving opportunities to.

Codeworks have provided a great help, have a great placement scheme and hold the best networking events (parties) that are always worth attending. They’re also trying to raise the bar through their conferences, which have both been great this year.

Teesside Uni are helping to support new companies through incubation space and free workshops in all areas of business. They’ve got a great team and helped me out a lot along the way.

I’ve had a mixed experience with Business Link as initially they didn’t seem to provide much assistance, but it ultimately comes down to the advisor so now that I've found someone who understands the business and can guide me through the red tape I’m getting a great service from them; I’ll be clinging onto her!

Another body, Northern Film and Media are also emerging as a useful asset with project funding, events and networking opportunities, so one to look out for.

Thanks to assistance from NStar I have just started a 2nd company, ImobiGo. It took a while to get their support and they pushed us hard (I’m glad they did) to improve our offering and delve further into the technology and our implementation of it before agreeing the investment. Are they funding the right businesses, who knows – let’s hope so!

Would I be where I am, further ahead or even given up by now if I were somewhere else? Who knows? All I know is I’m here, I’m glad I started a company here and I’m making the most of the opportunities and support available and trying to give back to the community along the way. Will I be here indefinitely? I don’t know. I’ll do whatever is best for the company at the time, and right now that’s certainly here.

I’d be happy to chat with you further; this is only scratching the surface of my experience of funding and support in the area.

I hope I can add more to the story as it continues to play out.

Business Plan Template

Following on from a post a while back about Bill Aulet's business plan template, I thought I would share the 8 slide PowerPoint template that I have been using for a few plans that I have been putting together forImobigo.

I found the template really useful in answering the basic questions that are required for a business. In addition to the presentation and the full business plan, I also prepare an overview of the plan in brochure format that can easily be understood by investors or others with interest in the business, without having to wade through a whole plan.

The business plan presentation template can be found here:

Busines plan template

Please feel free to utilise it how you wish, and let me know what you think, what you feel is missing, or what you feel is unnecessary.

US vs UK Entrepreneurial Culture

There seems to be a number of reasons why the culture in the US is better established to harbor entrepreneurs than the UK. The three key points that keep coming up is the access to money, the reaction to failure and the established communities.

I have discussed the failure aspect previously, so won’t go into detail here, but the general perception of failure is dealt with in much more positive way in the US than in the UK. That isn’t to say that if you fail with a business venture in the UK, it’s the end of it, but it is a lot harder to win the confidence of future partners and investors in new ventures than it is in the US.

Funding is another big issue, where there is a lot more capital available and it’s generally easier to access in the states. Financing institutions such as venture capitalists and angel investors are also more established which helps more new businesses get off the ground quickly and with a greater starting capital than in the UK. This is changing however, and there are more angel groups created all the time in the UK, but they aren’t mature, and without the experience of similar groups in the US. The willingness to take chances in potentially riskier ventures is also more prevalent in the US, which broadens the opportunities for entrepreneurs to get their foot in the door.

Another aspect which I feel is different is the large scale and scope that people think about in the US. Where it’s rare to find new entrepreneurs in the UK with international ambitions, and large scale plans for the business, this is almost thought as a given with ventures, especially in areas such as Silicon Valley. Clearly there are plans in effect to try and change this situation with schemes such as the Kauffman Fellowship, and the prevalence of international trade advisors around the world. I just feel that more has to be done at the earlier stages in business, rather than the tendency to focus on larger established businesses.

Of course the UK isn’t by any means the worst place to start a business, with lots of support and guidance available both nationally through government initiatives through to local councils and universities starting to realize the importance of encouraging entrepreneurship. A lot is being done in various hubs around the country to foster some the same buzz that surround Silicon Valley, but it will take many years to reach a similar culture that can be found there, and in the US in general. The mix of thriving businesses, access to talented and willing workers and the business support network that are all key for such an area to succeed don’t happen overnight, and it will take a lot of effort, and patience to try and re-create the elements that are all so important elsewhere.

There are definitely opportunities to succeed, especially in the North East region in the UK where they are willing to put the necessary effort and investment in the area to make it a thriving place for companies to be. With institutions like the University of Teesside investing heavily in entrepreneurship, and trying to educate students and the local community about the value of new business to the area and the economy it is an exciting time to be an entrepreneur. I just feel it will take time and a lot of mistakes before they crack the right mix of elements necessary to create the right environment that will foster willing and successful entrepreneurs. I hope by putting to good use the lessons learnt over the last 5 months from some of the top thinkers and entrepreneurs in the US I will be able to take advantage of the situation emerging in the UK and even impart some of this knowledge to help making it the best place in the world to run a business.

Company Culture

A lot of what has made IDEO a success can also be applied to Google. They have a similar work environment, very flat organizational structures and a similar thirst for only the highest quality staff. They have introduced a few new concepts to the mix such as 20% time, that lets the staff work on personal projects, using the company’s resources. Although this sounds counterproductive, it has interestingly led to 50% of the companies released projects including grand releases such as Google News. Marissa Mayer introduced nine lessons about creativity at Google, a lot of which can equally be applied to other successful enterprises:

• Ideas come from everywhere
• Share everything you can + (not) taking credit
• Working with smart people
• License to pursue dreams
• Innovation, not instant perfection (Macs and Madonna)
• Data is apolitical
• Creativity loves constraint
• Users, not money
• Don’t kill products, morph them

Most of the lessons can be taken straight into any business, some more easily than others, but all very appropriate. The two, working with smart people, and sharing everything you can come from creating a culture of trust and respect at the company, along with only employing people that fit with the culture you are trying to create. Others are more policy based, such as the 20% to pursue dreams, and concentrating on creating great products, rather than focusing on the business model, which Mellissa argues will come as a natural progression, once the user need has been satisfied. Others go back to failure, and the way to deal with it, such as consistently iterating product releases, and refocusing projects that aren’t as successful as they should be to find the area in which they will work.

Some don’t quite transfer over to a small business quite as easily, such as using data to justify decisions, taking out any politics involved, which is a great concept, but for a small company can be expensive and time consuming.

Risk and Failure

The ability for a company or an entrepreneur to try out new ideas quickly can be key to their success. Even more of a factor is their ability to see at the earliest possible stage when their ideas are not going to succeed and abandon them with the minimal loss of time and money. This could be through analysis of the situation, or simply because the venture failed dramatically.

One of the advantages young companies have is the speed in which they can act, and bring new ideas to market, without the need for lengthy corporate analysis and countless review boards. Ideas can be generated in a morning, and testing by the afternoon to see whether they should move forward with a plan of action. It’s this quick turnaround that can be the difference between success and failure in today’s fast moving markets.

However the challenge comes when deciding which ideas to pursue, and how far to take them before either more resources are allocated, or the project is sidelined before it eats up too much money, or just looks like it’s not going to be as successful as necessary to make it worthwhile. The techniques that can be implemented in doing this, include bootstrapping the venture, outsourcing development work, small scale – holistic testing and keeping flexible in the face of changes; so generally everything that successful entrepreneurial companies do anyway.

What these policies encourage within a company is to try many new things, and test how well they work, or in many cases don’t work. By learning from failures the company is in a better position to go forward, learning from these lessons. If the company is able to do this using minimal time, money and other resources then even if the venture is a failure then they have been successful. This can give them huge advantage over large companies that don’t have the ability to do this, and must produce piles of extensive and expensive market validation, and consumer feedback before even contemplating going to market with a new product.

As Randy Komisar puts it, “Innovation is about taking risks to do things that haven’t been done before” and goes on to rightly describe that if you could understand which ventures were going to succeed before you did them, then there would be no need for innovative companies, as the giants of the world would simply be able to pick them first. As long as the business models (and share holders) of large companies aren’t able to put up with the amount of failure required for innovation then there is space for entrepreneurs to take the risks necessary for success.

How entrepreneurs deal with failure can go as deep as the cultural level, with areas such as US and China having a much more positive outlook on failure than other areas such as Western Europe and India. The ability to fail in business, even go as far as to plan to fail, is a key discerning factor for success in the fast moving business world of today. You only need to look at companies such as Google, Facebook to see how many times they stumbled to get to where they are today, whilst searching for the killer business models that has got them to where they are and it shows how important failure can be, but more importantly is the ability to adapt and learn from failure.

Why Don't Entrepreneurs Scale?

I think the question on whether the entrepreneur is the one to take the company forward to an IPO or large scale venture is a complex one. It firstly has to start with what the individual’s aspirations are and whether they will feel comfortable taking on this role. This is not so much how capable they are, but how dedicated they are, and how much their values and long term goals fit with this role. This is separate to the needs of the business, as it might be in the best interest for the business if the inventor is the public face of the company, if these two sides are opposing, this could cause a conflict with the business.

A lot of the time the choice as to whether the entrepreneur runs the business isn’t up to the entrepreneur at all. If the venture succeeds in getting investment, or has the possibility to go to an IPO then the choice will be out of the entrepreneurs hands and be up to the board of directors, and usually ultimately the investors.

John Hamm has some interesting views on entrepreneurs and how they have difficulty transitioning from a start-up to a large organization. His main point is that the qualities entrepreneurs have to enable their ventures to succeed initially are the exact qualities that cause them to fail during the later stages of a business. These four tendencies are:
• Loyalty to comrades
• Task Orientation
• Single Mindedness
• Working in Isolation

Each has its benefits when working on a startup and can allow the startup to thrive
in its early stage. However as the business grows and the pressure from all areas increases, the entrepreneur will fail unless they are will to learn and adapt to their new situation and change their behavior. This is probably difficult to do from within, as the entrepreneur has to give up doing something that has been successful, but if they are willing to listen to their advisors and strive to understand the best way to behave there is no reason why they shouldn’t succeed.

Facebook has had to go through many of these issues, but has overcome everything that have currently been thrown at it, and Mark Zuckerberg has successfully navigated the company into new markets and successfully created a very lucrative revenue model for the site. I think it’s been successful by staying true to its core market and focusing efforts on rapid development and the user experience on the website. Areas such as photo sharing have proved far more popular than they could imagine, but the experience has been tweaked to make this the best they could make it. The user created applications have also been a huge help with its success, although it’s teetering on the edge of going too far with these applications.

There doesn’t appear to be a magic formula that will predict whether an entrepreneur will succeed into the future, it doesn’t matter what education, or even experience they have. The important factors, as echoed by John Hamm are they have to be open to learning and rise to the challenge.

Games Developers Conference - San Francisco

A little late, but here are my thoughts on the GDC conference I attended back in February.

One of the first things I noticed was the lack of Flash Lite content at the event. Adobe had a small stand during the mobile conference, which gained some attention from delegates, but I was disappointed that none of the speakers were from Adobe, nor that there was any key figures from the Flash Lite world speaking at the event. There were plenty of people talking about Flash Lite, and whenever it was mentioned; at least people had heard of it, which is contrary to events I’d been to over the last few years. However although it was on people’s radars, no-one talked about using it on current projects, or had any immediate plans to do so either.

There weren’t any really exciting revelations, or new thinking that I heard. There is certainly lots of scope for improvements in the mobile industry, but progress appears to be slow and difficult for all those involved. The industry in Korea is a lot more mature that the US and Europe, and this was made even more apparent with a speaker from ... who joyfully spoke about a number of projects they have worked on. I realised how far we have yet to go, when models that are only pipe dreams in the US are already second nature to the industry in Korea such as complex social multiplayer gaming and micro transactions.

Distribution and porting were the two most discussed topics over the course of the event, unfortunately with little being said on what the solutions might be for developers. Porting is an ever increasing issue, with more and more devices available, and the insistence of carriers to support all devices. The estimated costs of porting pretty much double the initial development costs for a game, and it doesn’t look like improving any time soon. Everyone is fed up with this situation, and yet as an industry we continue to follow this route blindly where there is clearly an opportunity for a disruptive change in this field. Obviously Flash has an advantage here, and as we reach a milestone of ½ billion Flash Lite devices shipped, and with Microsoft signing to ship Flash Lite on Windows Mobile devices, this advantage is always increasing.

Advertising was probably the third topic of choice, with the general consensus not being very positive to the money making potential for a sustainable business model. The large cost of development for current games has a negative impact on the ability to offset this with advertising alone. However this may be different in the casual space, it will have to been seen.

One thing that concerned me was that the mobile industry appears to be heading for a very hard core gaming audience, looking at advanced graphics, and complex 3D game play. Coming from the console industry I have seen what this means for an industry, and it isn’t necessarily a good thing. It worries me a little that we haven’t learnt anything from the success of the Wii, and the casual games, especially as the mobile platform has the potential to reach a much wider audience than consoles due to its penetration. However with download statistics at measly figures like 6% of mobile owners downloading a game it is worrying that as an industry we are targeting even a small percentage of this market with future technologies.

I believe that there is still a strong case for disruptive technologies in the mobile space, that either revolutionise the gaming experience or the distribution and from what I’ve seen Flash Lite has this potential. In the mean time, there is definitely the opportunity for companies to do conversions from current Java based games into Flash, whilst the Java development studios haven’t got the capabilities to do this in house.

Another point of mention is the undeveloped area of position aware and social games that are being developed. This seems like a very under tapped market and has huge opportunities for developers. This area has been talked about for years, and yet the most interesting games I have come across are Geotracking, with a bit of storytelling behind them, not exactly revolutionary.

Overall the Conference didn’t have much of a buzz about it, which was probably due to there not being many major announcements and the consoles being mid cycle. The two major areas of the main conference that were receiving a lot of interest were input devices and motion capture. Input was a hot topic on a number of fronts, including the Wii Fit, numerous different controller systems and even a mind reading controller. Mobile had its revelation, the Zeemote. This is a Bluetooth analogue controller for mobiles, which has great potential, but again it’s positioned to the hard core games, not the casual market. Other interesting mobile development lie in the areas of using the camera, accelerometers and touch screens for better input solutions, and as long as they are used in the right kind of applications, they offer plenty of opportunities. There were plenty of stands promoting motion capture all competing on ease of setup and cost, with some very cost effective solutions now available.

It was a really interesting conference, and I got to meet some great people. There is a lot of hope for the mobile industry, and I hope over the coming years we will see some fantastic developments and advances that really open the space up for more universal and disruptive mobile games and applications.