Blog Archive

Thursday, June 25, 2009

Steve Jobs' 2005 Stanford Commencement Address

'You've got to find what you love,' Jobs says

This is the text of the Commencement address by Steve Jobs, CEO of Apple Computer and of Pixar Animation Studios, delivered on June 12, 2005.

I am honored to be with you today at your commencement from one of the finest universities in the world. I never graduated from college. Truth be told, this is the closest I've ever gotten to a college graduation. Today I want to tell you three stories from my life. That's it. No big deal. Just three stories.

The first story is about connecting the dots.

I dropped out of Reed College after the first 6 months, but then stayed around as a drop-in for another 18 months or so before I really quit. So why did I drop out?

It started before I was born. My biological mother was a young, unwed college graduate student, and she decided to put me up for adoption. She felt very strongly that I should be adopted by college graduates, so everything was all set for me to be adopted at birth by a lawyer and his wife. Except that when I popped out they decided at the last minute that they really wanted a girl. So my parents, who were on a waiting list, got a call in the middle of the night asking: "We have an unexpected baby boy; do you want him?" They said: "Of course." My biological mother later found out that my mother had never graduated from college and that my father had never graduated from high school. She refused to sign the final adoption papers. She only relented a few months later when my parents promised that I would someday go to college.

And 17 years later I did go to college. But I naively chose a college that was almost as expensive as Stanford, and all of my working-class parents' savings were being spent on my college tuition. After six months, I couldn't see the value in it. I had no idea what I wanted to do with my life and no idea how college was going to help me figure it out. And here I was spending all of the money my parents had saved their entire life. So I decided to drop out and trust that it would all work out OK. It was pretty scary at the time, but looking back it was one of the best decisions I ever made. The minute I dropped out I could stop taking the required classes that didn't interest me, and begin dropping in on the ones that looked interesting.

It wasn't all romantic. I didn't have a dorm room, so I slept on the floor in friends' rooms, I returned coke bottles for the 5¢ deposits to buy food with, and I would walk the 7 miles across town every Sunday night to get one good meal a week at the Hare Krishna temple. I loved it. And much of what I stumbled into by following my curiosity and intuition turned out to be priceless later on. Let me give you one example:

Reed College at that time offered perhaps the best calligraphy instruction in the country. Throughout the campus every poster, every label on every drawer, was beautifully hand calligraphed. Because I had dropped out and didn't have to take the normal classes, I decided to take a calligraphy class to learn how to do this. I learned about serif and san serif typefaces, about varying the amount of space between different letter combinations, about what makes great typography great. It was beautiful, historical, artistically subtle in a way that science can't capture, and I found it fascinating.

None of this had even a hope of any practical application in my life. But ten years later, when we were designing the first Macintosh computer, it all came back to me. And we designed it all into the Mac. It was the first computer with beautiful typography. If I had never dropped in on that single course in college, the Mac would have never had multiple typefaces or proportionally spaced fonts. And since Windows just copied the Mac, its likely that no personal computer would have them. If I had never dropped out, I would have never dropped in on this calligraphy class, and personal computers might not have the wonderful typography that they do. Of course it was impossible to connect the dots looking forward when I was in college. But it was very, very clear looking backwards ten years later.

Again, you can't connect the dots looking forward; you can only connect them looking backwards. So you have to trust that the dots will somehow connect in your future. You have to trust in something — your gut, destiny, life, karma, whatever. This approach has never let me down, and it has made all the difference in my life.

My second story is about love and loss.

I was lucky — I found what I loved to do early in life. Woz and I started Apple in my parents garage when I was 20. We worked hard, and in 10 years Apple had grown from just the two of us in a garage into a $2 billion company with over 4000 employees. We had just released our finest creation — the Macintosh — a year earlier, and I had just turned 30. And then I got fired. How can you get fired from a company you started? Well, as Apple grew we hired someone who I thought was very talented to run the company with me, and for the first year or so things went well. But then our visions of the future began to diverge and eventually we had a falling out. When we did, our Board of Directors sided with him. So at 30 I was out. And very publicly out. What had been the focus of my entire adult life was gone, and it was devastating.

I really didn't know what to do for a few months. I felt that I had let the previous generation of entrepreneurs down - that I had dropped the baton as it was being passed to me. I met with David Packard and Bob Noyce and tried to apologize for screwing up so badly. I was a very public failure, and I even thought about running away from the valley. But something slowly began to dawn on me — I still loved what I did. The turn of events at Apple had not changed that one bit. I had been rejected, but I was still in love. And so I decided to start over.

I didn't see it then, but it turned out that getting fired from Apple was the best thing that could have ever happened to me. The heaviness of being successful was replaced by the lightness of being a beginner again, less sure about everything. It freed me to enter one of the most creative periods of my life.

During the next five years, I started a company named NeXT, another company named Pixar, and fell in love with an amazing woman who would become my wife. Pixar went on to create the worlds first computer animated feature film, Toy Story, and is now the most successful animation studio in the world. In a remarkable turn of events, Apple bought NeXT, I returned to Apple, and the technology we developed at NeXT is at the heart of Apple's current renaissance. And Laurene and I have a wonderful family together.

I'm pretty sure none of this would have happened if I hadn't been fired from Apple. It was awful tasting medicine, but I guess the patient needed it. Sometimes life hits you in the head with a brick. Don't lose faith. I'm convinced that the only thing that kept me going was that I loved what I did. You've got to find what you love. And that is as true for your work as it is for your lovers. Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do. If you haven't found it yet, keep looking. Don't settle. As with all matters of the heart, you'll know when you find it. And, like any great relationship, it just gets better and better as the years roll on. So keep looking until you find it. Don't settle.

My third story is about death.

When I was 17, I read a quote that went something like: "If you live each day as if it was your last, someday you'll most certainly be right." It made an impression on me, and since then, for the past 33 years, I have looked in the mirror every morning and asked myself: "If today were the last day of my life, would I want to do what I am about to do today?" And whenever the answer has been "No" for too many days in a row, I know I need to change something.

Remembering that I'll be dead soon is the most important tool I've ever encountered to help me make the big choices in life. Because almost everything — all external expectations, all pride, all fear of embarrassment or failure - these things just fall away in the face of death, leaving only what is truly important. Remembering that you are going to die is the best way I know to avoid the trap of thinking you have something to lose. You are already naked. There is no reason not to follow your heart.

About a year ago I was diagnosed with cancer. I had a scan at 7:30 in the morning, and it clearly showed a tumor on my pancreas. I didn't even know what a pancreas was. The doctors told me this was almost certainly a type of cancer that is incurable, and that I should expect to live no longer than three to six months. My doctor advised me to go home and get my affairs in order, which is doctor's code for prepare to die. It means to try to tell your kids everything you thought you'd have the next 10 years to tell them in just a few months. It means to make sure everything is buttoned up so that it will be as easy as possible for your family. It means to say your goodbyes.

I lived with that diagnosis all day. Later that evening I had a biopsy, where they stuck an endoscope down my throat, through my stomach and into my intestines, put a needle into my pancreas and got a few cells from the tumor. I was sedated, but my wife, who was there, told me that when they viewed the cells under a microscope the doctors started crying because it turned out to be a very rare form of pancreatic cancer that is curable with surgery. I had the surgery and I'm fine now.

This was the closest I've been to facing death, and I hope its the closest I get for a few more decades. Having lived through it, I can now say this to you with a bit more certainty than when death was a useful but purely intellectual concept:

No one wants to die. Even people who want to go to heaven don't want to die to get there. And yet death is the destination we all share. No one has ever escaped it. And that is as it should be, because Death is very likely the single best invention of Life. It is Life's change agent. It clears out the old to make way for the new. Right now the new is you, but someday not too long from now, you will gradually become the old and be cleared away. Sorry to be so dramatic, but it is quite true.

Your time is limited, so don't waste it living someone else's life. Don't be trapped by dogma — which is living with the results of other people's thinking. Don't let the noise of others' opinions drown out your own inner voice. And most important, have the courage to follow your heart and intuition. They somehow already know what you truly want to become. Everything else is secondary.

When I was young, there was an amazing publication called The Whole Earth Catalog, which was one of the bibles of my generation. It was created by a fellow named Stewart Brand not far from here in Menlo Park, and he brought it to life with his poetic touch. This was in the late 1960's, before personal computers and desktop publishing, so it was all made with typewriters, scissors, and polaroid cameras. It was sort of like Google in paperback form, 35 years before Google came along: it was idealistic, and overflowing with neat tools and great notions.

Stewart and his team put out several issues of The Whole Earth Catalog, and then when it had run its course, they put out a final issue. It was the mid-1970s, and I was your age. On the back cover of their final issue was a photograph of an early morning country road, the kind you might find yourself hitchhiking on if you were so adventurous. Beneath it were the words: "Stay Hungry. Stay Foolish." It was their farewell message as they signed off. Stay Hungry. Stay Foolish. And I have always wished that for myself. And now, as you graduate to begin anew, I wish that for you.

Stay Hungry. Stay Foolish.

Thank you all very much.

SR

Monday, May 11, 2009

Assignments for Class #14

Review the class using the UMBC Student Class Evaluation Form to be handed out at the beginning of the class.

Read the final assigned reading assignments: the advice from Teddy Roosevelt and the insights of Robert Frost. Be prepared to discuss these readings in class.

Reward the winners of the final presentation competition.

For Extra Credit:
Write 25 to 50 word essay in your blog with the first sentence beginning: "I believe I deserve a grade of [insert grade here] in INDS430 because..." Link the essay from your blog to the comments area below and remember to include at the end of the essay a list in link form of all the completed assignments that supports your grade justification.

Monday, May 4, 2009

Before you give today's final presentation, read this.

This is an excerpt from the University of Michigan commencement speech given by Larry Page, one of the founders of
Google. For the whole speech, click on the title of the post.

"I think it is often easier to make progress on mega-ambitious dreams.
I know that sounds completely nuts. But, since no one else is crazy
enough to do it, you have little competition. There are so few people
this crazy that I feel like I know them all by first name. They all
travel as if they are pack dogs and stick to each other like glue.
The best people want to work the big challenges. That is what
happened with Google. Our mission is to organize the world's
information and make it universally accessible and useful. How can
that not get you excited? But we almost didn't start Google because
my co-founder Sergey and I were too worried about dropping out of our
Ph.D. program. You are probably on the right track if you feel like a
sidewalk worm during a rainstorm! That is about how we felt after we
maxed out three credit cards buying hard disks off the back of a
truck. That was the first hardware for Google. Parents and friends:
more credit cards always help. What is the one sentence summary of
how you change the world? Always work hard on something uncomfortably
exciting!"


Saturday, May 2, 2009

Team Presentations: Final

Please review these videos from the dress rehearsal. Revise the slides and financials and create the rest of your final presentation. CEOs received instruction from the Professor after last week's class and this input should also be incorporated into the final presentation.

Shore Water Taxi Part 1
Shore Water Taxi Part 2

Random Racing Part 1
Random Racing Part 2

Drinian's Armory Part 1
Drinian's Armory Part 2

Wednesday, April 22, 2009

Assignments for Class #12

Team Presentations:  Dress Rehearsal

Business description: 

a 3 to 5 page written description of the business, including an executive summary and bios of the key management executives. Risk factors and a description in written form of key elements of the financial projections are also recommended. The style and formatting should be similar to the IPO document assigned reading.  This should be printed out as well as posted on the web with a link in the comments area below.

Financial projections:

spreadsheets detailing the start up budget for the first 12 months and continuing with annual projections for the two years after that. The style and formatting should be similar to the class assignments from previous weeks. Detailed budgets for marketing plan and the capital budget are recommended.  This should be printed out and included as "exhibit" slides in your presentation.

Slides presentation:

no more than 10 slides describing the business, the target market, the marketing plan, organizational chart, and other key elements for the business start up. The content should be similar to the class assignments from previous weeks, however, the formatting should be as professional looking as possible. This presentation will be given in class as practice, then comments on this performance will result in revisions. The presentation will be videotaped in class so that comments can be made on presentation style and the slide presentation itself should be posted on the web with a link in the comments area below.

Wednesday, April 15, 2009

Class #11: Team Assignments & Business Plan Prep

Results from the voting by the 3 team CEO’s:



Brian Bell: CEO

Team members:

Alex Broadwater

Lance Ophof

Patrick Halter

Alex Witkin

Shane Yap



Natalie Cullers: CEO

Team members:

Amanda Fefel

Caitlyn Merwin

Marquita Taylor

Emily Thompson

Natalie Wilson



Ryan Montgomery: CEO

Team members:

Todd Carter

Matt Diehl

Ksenia Gouliaeva

Jimmy Spamer

Jonathan Teklu



The elements of the final business presentation should include:

Business description: 

a 3 to 5 page written description of the business, including an executive summary and bios of the key management executives. Risk factors and a description in written form of key elements of the financial projections are also recommended. The style and formatting should be similar to the IPO document assigned reading.

Financial projections:

spreadsheets detailing the start up budget for the first 12 months and continuing with annual projections for the two years after that. The style and formatting should be similar to the class assignments from previous weeks. Detailed budgets for marketing plan and the capital budget are recommended.

Slides presentation:

no more than 10 slides describing the business, the target market, the marketing plan, organizational chart, and other key elements for the business start up. The content should be similar to the class assignments from previous weeks, however, the formatting should be as professional looking as possible. This presentation will be given in class as practice, then comments on this performance will result in revisions.  The following week it will be recorded on video for the final decision on the winning team.

Additional recommended elements:

Public relations:  get a story in the press or in any media.

Website: using either your own resources or Google Sites, create a draft website for your business.

“Leave behind”: a promotional item or brochure that you give to potential investors at the end of your presentation that demonstrates your business idea.

Financial sources: a detailed list of potential financial sources similar to the class
assignment or some written “indication of interest".

Advisory board:  an impressive group of experienced business professionals that will assist with your start up.

Information on developing these business plan elements will be discussed at the next class.  The CEOs should begin developing the plan immediately and giving assignments to their team.  The Professor will be available via email for questions.

Please be patient on the grading of revised assignments.

Special Guest for Next Class:  Steven Masur will give a guest lecture on business start ups at the beginning of Class.  More information about Steve can be found at his website.


Thursday, April 9, 2009

Business Pitch Presentations

Below you will find the videos of the business pitches presented in class last week. 

Send me a simple email with your 3 top choices. The 3 presenters who get the most votes will become CEOs:   able to choose the business they wish to pursue for the last assignment, choose the classmates they wish to assist them in completing the assignment, and confer with the Professor on the grades that these classmates receive for this assignment.   Choose wisely and carefully.

Also, remember to revise all your ungraded assignments and your graded assignments that you wish to improve.  Place the links to these revised assignments in the comments area below this post by 12 noon on Monday April 13.

Tuesday, March 31, 2009

Assignments for Class #9

Elevator Pitch Presentation Preparation
You will be giving your pitch in class although not in the elevator this time. Please practice as we will be video recording the pitch. If possible, dress as if for a formal business meeting. Remember to slow down, enunciate, smile and use the Crossing the Chasm reading as a guide and be sure to include any HTWFAIP principles that you feel apply. After class, the videos will be posted and the class will vote on the 3 best. The 3 best pitchers will then form teams and create the complete business presentations that are the final assignment for the class.

You will each have 30 seconds to make your pitch so be sure to practice with a clock.

Revise all assignments as requested by the Professor in your blogs. PLEASE NOTE: this is the second to last time you will be allowed to submit a revised assignment. You will only have one more opportunity after this week to complete the assignments to the Professor's specifications and requirements. This is your only warning. Please be aware. Place links to these revised assignments in the comments area below this post.

Part 4 of HTWFAIP is the section titled: Be a Leader. Write 2 blog entries about one or more of the lessons included in this section of the book that you have employed personally recently. You must cite the specific chapter of Part 4 of HTWFAIP in which the principle you are employing appears. You cannot write about experiences with family members or significant others for this assignment. Place a link to this assignment in your blog in the comments area below.

These assignments are due for 12 noon on Monday, April 6.

Friday, March 27, 2009

Assignments for Class #8

Find two (2) financing sources for your start up idea, write them up in your blog, including a description of where you found the information. You must also include the name and address of the organizations that you believe would be interested in providing funding. These sources should include the specific name and contact information of a particular person, both email and phone number, and job title. Link this back to the comments area below.

Read Google IPO document excerpt "Letter from the Founders".

If you weren't in class last week, watch the Simpson's episode "The Old Man and the Lisa".

Read "Crossing the Chasm" pp. 152-156 on how to create the Elevator Pitch.

Revise all your previous assignments using the comments from the Professor. Place links to these revised assignments in the comments area below this post.

Part 4 of HTWFAIP is the section titled: Be a Leader. Write about one or more of the lessons included in this section of the book that you have employed personally recently. Place a link to this assignment in your blog in the comments area below.

Extra Credit available by attending and taking notes on the Jeannie Howe appearance.

This assignment is due March 30, 2009 at 12 noon.

Friday, March 13, 2009

Assignments for Class #7

Read the chapter from Mark Twain's "Roughing It". Link is on the Important Links list at left. Read the University of Chicago "scholarly article". Link is on the Important Links list at left. Be prepared to discuss both these readings in class.

Revise and expand the Enterprise Value spreadsheet. Revise by correcting per share amounts and using a spreadsheet to calculate values. Expand by adding values for Google, Starbucks, and Under Armour and by adding the age of the founding entrepreneur at time of IPO and at the initial founding of the company. Links to the IPO documents of these companies are at left under the Important Links list. You can get the Enterprise Valuation Comparison spreadsheet format by clicking here. Link your spreadsheet to your blog so I can comment, then place a link back to your blog below.

Create a first year budget for your company idea. The budget should be for the first 12 months of your start up and include a sales projection based on your target market and all the other expense items from your previous slides. Try to keep to the template we discussed in class and remember, format is important since we're sharing information. Link this spreadsheet to your blog so I can comment, then place a link back to your blog below.

Apply "the Secret of Socrates" from HTWFAIP in an attempt to persuade at least one person to your way of thinking and write about this in your blog and link this back to this course blog. Continue to make friends with your journalist using HTWFAIP and Mark Twain's Advice. Write about your progress and link this back to this course blog. Apply all the principles of HTWFAIP in your social interactions. Pick the social interaction that had the best results, write about this in your blog then place a link back to your blog below.

Review the Angel Investing, Venture Capital Investing, and US Government Small Business assistance websites. These links are on the Important Links list at left. Be prepared to discuss both this in class.

There is no class on Monday, March 16th due to UMBC Sping Break. These assignments are due Monday, March 23rd at 12 Noon. Please link all assignments for Class #7 in the comments area below. If you have revised a previous assignment to improve a grade, please place all prior and current assignment links together in the comments area below. Please link to your specific assignment in each link, NOT to your entire blog.

Monday, March 2, 2009

UMBC is closed due to weather.

Today's class is cancelled. Use this week to revise your past assignments, incorporate the new assignments, and watch this space for additional assignments based on the readings we have completed so far.

Have some fun in the snow today!

And if you do be sure to report your findings for extra credit at this important link.

Sunday, March 1, 2009

Extra Credit Opportunity: CANCELLED

Be Your Own Boss – Alumni Entrepreneurs Panel Discussion
Monday, March 2, 2009
12 – 1:00p.m. • Commons 331
Contact Vivian Armor at armor@umbc.edu for more information
Co-Sponsored by The Alumni AssociationFunding provided by theEwing Marion Kauffman Foundation

Starting and growing a new business is both exhilarating and challenging. UMBC alumni entrepreneurs from different industries will discuss the ups and downs of entrepreneurship and share their stories.

Featured alumni panelists:
Greg Cangialosi, ’96, President and CEO, Blue Sky Factory, Inc.
Education: B.A. English, University of Maryland, Baltimore County
A serial entrepreneur, Cangialosi started a concert promotion business after graduation and ran a food vending company. He found success in the fast growth world of technology after taking a position at a web development company called 0 to 80. In March 2001, he co-founded Blue SkyFactory, Inc. (an e-mail marketing service provider) in Baltimore.

Janine Cormier Fleming, ’80, Owner, Massage at University One
Education: B.S. Biochemisty, University of Maryland, Baltimore County
Janine Fleming has been practicing massage since 1988. In 1992, she decided to leave her job as an environmental chemist to pursue massage full-time. She now maintains a private practice in Baltimore, while serving as the Program Director for the Holistic Massage Training Institute.

Dr. Duke Thompson, ’78, Director, Maryland Conservatory of Music
Education: B.A. Music (piano) University of Maryland, Baltimore County
M.S. (performance), University of Maryland, College Park
Doctor of Musical Arts (performance), Arizona State University
Dr. Duke Thompson is a recognized teacher, performer and music administrator. His work as an artist and educator has earned him numerous awards and accolades among national and international audiences. Currently, he combines a performance career with being a member (on sabbatical) of the music faculty at Red Deer College in Alberta, Canada and Director of the MarylandConservatory of Music in Harford County, Maryland.

Wednesday, February 25, 2009

Assignments for Class #6

Note on grades: As discussed in class, this week's class we will begin grading all assignments. Look for comments on last week's assignments in your blog over the next 36 hours.

Read Part Four of HTWFAIP "How to be a Leader" if you haven't already. Review Crossing the Chasm and make sure to complete all the reading assignments in that book to date.

Apply all the principles of HTWFAIP in ten (10) social interactions this week. Ask at least one (1) of these ten (10) people about their cel phone make, model, service and usage and identify this person along the Technology Adoption Life Cycle. Write a brief summary of each interaction and the TALC identification sequence in your blog and link this back to this course blog. Also, using the principles of HTWFAIP and the Mark Twain press relations advice quote, find a journalist from the Weekly Retreiver and create a positive relationship with this person. Write about this in your blog and link this back to this course blog.

Create one additional online link for your personal blog or use some other technique that enhances SEO or creates an additional traffic source for your blog. Write about this in your blog and link this back to this course blog.

Create a slide using a spreadsheet that provides a real or estimated Marketing Budget for your Whole Product. The Marketing Budget should be monthly for the first 12 months of your start up business. Separate components of your budget in spreadsheet. For example, separate lines in your spreadsheet could be for promotional items used in guerrilla marketing, SEM, and press relations. Place the spreadsheet in your slide and link this back to this course blog.

Review your Enterprise Value calculation of the last two weeks and, if needed, re-calculate. Calculate the current Enterprise Value for Microsoft and Apple using recent prices, detailing the inputs used for outstanding shares, value of each share and indicate the time, date and source of that share price, and include the current comparative percentage. Calculate the increase in value of both Microsoft and Apple from their IPO date. The increase in value is the difference between the current market value and the IPO date market value, expressed as a percentage. Enter all calculations and information in a post on your blog and link this entry to this blog.

Wednesday, February 18, 2009

Assignments for Class #5

Congratulations to Alex Broadwater, Emily, Patrick, and Todd Carter on winning last week's My Favorite Entrepreneur Essay Writing Contest. Prizes for winning will be announced at the next class.

Note on Linking: All assignments this week are due 5PM Monday, February 23rd. They MUST be linked to this blog in the comments area below using the Shane Style of links as discussed in class last Monday.


1) Read Part Three of HTWFAIP: "How to Win People to Your Way of Thinking " if you haven't already.

2) Read Crossing the Chasm Part II pp. 103-161

3) Create a Product Description slide using 20 words or less or a chart or picture to describe your Whole Product or service.

4) Create a Product Component List slide that numbers and describes the components necessary to fulfill your product or service. Use the concept of the Whole Product as defined in Crossing the Chasm on pp. 108 to 110.

5) Create a slide using a spreadsheet that provides real or estimated Product Component Costs for each of the components of your Whole Product.

6) Create an Organizational Chart of not more than 10 people necessary for the delivery of your Whole Product. Place the chart in a slide along with estimated annual salaries and/or hourly costs per each headcount per year.

Link all four (4) slides to the comments area below.

7) Apply all SIX (6) principles of Part Two of HTWFAIP in five (5) social interactions this week. At least two (2) of the five (5) should be people who are NOT friends, retail employees or service agents. For example, at least two (2) of your five (5) social interactions could be a Professor (not including myself), an assistant coach, an assistant manager or manager at your job, or a relative NOT including your parents. Ask at least one (1) of these two (2) about their cel phone make, model, service and usage and identify this person along the Technology Adoption Life Cycle. Write a brief summary of each interaction and the TALC identification sequence in your blog and link this back to this course blog.

8) Review your Enterprise Value calculation of last week and, if needed, re-calculate. Calculate the current Enterprise Value for Microsoft and Apple as of this week, detailing the inputs used for outstanding shares, value of each share and indicate the time, date and source of that share price, and include the current comparative percentage. Enter all calculations and information in a post on your blog and link this entry to this blog.

9) Review this website on Search Engine Optimization

Tuesday, February 17, 2009

Stimulus Bill Provisions

The Wall Street Journal did a good job of listing the elements of the Economic Stimulus package just passed by the United States Congress and it can be found here:

Stimulus Bill Laundry List

It's a good idea to look this list over and see if it applies to any ideas or industries that interest you.

Tuesday, February 10, 2009

Assignments for Class #4

1) Read Crossing the Chasm up to page 103 if you haven’t already

2) Apply the first 3 principles of HTWFAIP in three (3) social interactions this week with a retail employee or public service agent. Note the time, date, place and type of interaction as an entry on your personal blog by 7PM Monday. If you can, try to do this with one of the people upon whom you applied the principles last week. USE common sense—do NOT pursue any social interactions with anyone who begins to make you nervous. Be prepared to discuss in class.

3) Revise your slide using the specific comments of the Professor, if any, and the class discussion. Create a link to the revised slide in the comments area below by 7PM Monday.

4) Revise your favorite entrepreneur essay again by midnight Friday. Please note in the comments area below whether you have done this since this will be the essay that will be used in the Revised Essay Poll.

5) Read your classmates' Revised Favorite Entrepreneur’s Essay.

6) Vote for your favorite four (4) Essays using the online Revised Essay Poll that will be posted by the Professor by midnight Friday. Voting will be permitted through 7PM Monday.

7) Read the important sections of the Apple Computer IPO and the Microsoft IPO. Links to these documents are to be found in the Important Links area on the home page of this blog.

Calculate
the enterprise value of Apple Computer on its IPO date and the enterprise value of Microsoft on its IPO date. Which was the greater value? By what percentage?

Post your answers on your blog and create a link to these answers in the comment area below by 7PM Monday.


8) Approach one (1) friend and ask them about the type of cellular phone they have. This friend can NOT be a member of this class. Note the brand name of the manufacturer of the phone and model number, the cell phone carrier, and their level of usage (voice, text, web browsing, emails, IM, other). For example, I have a Nokia N95 with T-Mobile service which I use for voice calls, text messages, web browsing, gmails, calendar and schedule reminders, photo and video capture, mp3 playback, radio reception, and as an alarm clock.

Using their cell phone as a guide, identify this individual as a consumer type along the Technology Adoption Life Cycle. Use only the first name and last name initial. Note these results in your personal blog and create a link to these notes in the comment area below by 7PM Monday. Then, ask the same person what cell phone they would buy if money was not an issue. "I don't know" is an acceptable response, but only after you ask them to think about it. Note this result as well. Does that change your opinion of their consumer type?


Sunday, February 8, 2009

Assignment #2 Here

If you haven't posted your assignments yet place them as hyperlinks below in the comments area to this post please. If you are having trouble figuring out how to do that, I suggest contacting your fellow classmates that have already figured it out. Looking forward to seeing your good work.

Tuesday, February 3, 2009

Assignments for Class #3

1) Watch Tucker and the Alexander Graham Bell Story if you haven't already. Be prepared to discuss at the beginning of next class. The AGB Story is currently with Brian Bell (any relation?). Brian can you put your email address in a comment and let folks know how they can view the film and for how much?

2) Read Crossing the Chasm pp. 63 to 103. You should have already read the preface and up to page 63. Remember to use a highliter on important ideas and to make notes in the margins if there are questions or concepts you would like to discuss in class.

3) Read the Starbucks IPO which will be posted as a link to this blog within 48 hours. Be prepared to discuss the initial target market for Starbucks.

4) Read the Under Armour IPO if you haven't already and be prepared to discuss the "Enterprise Value" of Under Armour at the time of its IPO. For Extra Credit be prepared to discuss the current "Enterprise Value" of Under Armour.

5) Apply the first 3 Principles from Part 2 of "How to Win Friends and Influence People" in a social interaction with a retail employee or public agent. A retail employee, you may recall from class discussion, can be any food services worker or an employee at a bookstore or clothing shop. A public agent may be a bus driver, postal clerk, or security guard. Be prepared to discuss the results of the application of the Principles. Please note the time, date, place, and type of interaction--an entry on your personal blog is a good way of archiving this information.

6) Write a new version of your essay from Assignment #1
This new version should be a revision of the first submission, incorporating comments, if any, from the Professor and your fellow students. An additional paragraph will now be added discussing an element from either "Chasm" or "How to Win" that can be identified within the life of the person profiled in your essay. A further paragraph will identify the initial target market of the person profiled in your essay from their successful business. The description of this initial target market will use concepts from Chasm and identify the aspects of the target market that relate to terminology used in Chasm. Post this new version of your essay as a hotlink back to your blog in a comment area on this blog by 12 midnight on the Saturday preceding the class--watch for the Professor's post that indicates where to post, and remember to make your post a "hotlink". Make sure that the new paragraphs are incorporated into the essay--do NOT simply tack on words. Rewrite, refine and remember to cite sources.

7) Create a Powerpoint slide that identifies an initial target market for a product or service you would like to launch. Remember the Rules of Powerpoint discussed in class. Post the slide (as a hotlink back to your blog if possible) by 12 midnight on Sunday prior to class. Use specific information from sources such as the US Census. Remember to cite the sources.

8) Read the selected sections from the Apple IPO. This should be posted as a link by the Friday of this week.

Friday, January 30, 2009

Assignments for Class #2

For next class we have the following assignments:

Watch: Tucker and the Alexander Graham Bell Story.

Read
: Moore: Crossing the Chasm: Author's note, preface and pp. 3 -59
Twain: Tom Sawyer excerpt, Under Armour IPO excerpt
I haven't gotten the Starbucks IPO so we can defer that reading until later.

Write: 2 pager on "My Favorite Entrepreneur". Get it posted!

Tuesday, January 27, 2009

First Comment from the Professor

Class:

Good first class today all, I'm very encouraged that we'll all be learning alot. Along those lines, I realized when I received an email from one of you that I had not enabled the ability to comment or "author" permission according to Google blogger to you all--I had selected the "members only comment" category when I set up the site which required that I email you all an invite, which I just did using your UMBC.edu email addresses that I have from your class roster. I have to say, Google makes it a bit confusing since "author", "member", "registered user" and "follower" are all kind of the same thing but require different actions and are permitted different comment posting rights.

Hopefully, the use of the UMBC email address will not cause more difficulties in registration if you are already a Blogger registered user but used a different email address to create your blogger registration. All part of the learning process.

If it becomes difficult to navigate through this even after receiving the email invite let me know and I'll change the comment permissions to make it easier for all to post comments. Use my dfriedensohn@gmail.com address for that as I can get those emails on my cel phone.

Cheers,

The Professor

Sunday, January 25, 2009

The American Entrepreneur in the 21st Century

First Class: Monday, January 26
Final Class: Monday, May 11

Class #14: Winners and Winners

Monday, May 4

Class votes on best business plan. Discussion of Next Steps in business and professional development for that plan. Discussion of class merits and items for improvement.

Class #13: Presenting a New Business

Monday, April 27

Presentation of NEW DRAFT of 3 powerpoint business presentations incorporating the feedback from previous class discussion.

Class #12: New Entrepreneurs Speak

Monday, April 20

Presentation of 3 powerpoint business presentations by the 3 teams: 20 minutes each with 10 minutes Q&A for each.

Detailed notes, corrections, suggestions and comments will be given.

Assignment #10: Students will incorporate these into a NEW DRAFT of their presentation.

Class #11: The Entrepreneur Speaks (continued)

Monday, April 13

Presentation by an actual successful entrepreneur.

An actual start up entrepreneur comes to class to give presentation on their start up origins and present situation. Question and answer period including questions and answers on ongoing business presentation development.

Assignment #9 (on going): Teams develop presentation.

Class #10: The Entrepreneur Speaks

Monday, April 6

Presentation by an actual successful entrepreneur.

An actual start up entrepreneur comes to class to give presentation on their start up origins and present situation. Question and answer period including questions and answers on ongoing business presentation development.

Assignment #9: Teams develop presentation.

Class #9: Practising the Elevator Pitch

Monday, March 30

Readings: Crossing the Chasm Part II, pp.162--211

Practicing the Elevator Pitch.

Each student gives their 30 second elevator pitch. Class then votes on the 3 best. Class is then split up into 3 teams that will create a powerpoint presentation for the 3 businesses to be developed for the final classes.

Class #8: See One, Do One, Teach One

Monday, March 23

The Surgeon's Credo: See One, Do One, Teach One
Readings: Selected excerpts from Carnegie. Selected excerpts from IPO filing of Google
Viewings: The Simpsons: The Old Man and the Lisa

Class discussion: ethics in business planning and development: Google vs. Mr. Burns: Show Me the Evil

Putting together a business plan: Components for a successful business plan: Remember the Rules of Powerpoint!

  1. The elevator pitch
  2. The executive summary
  3. The powerpoint presentation
  4. The business plan
  5. The offering memorandum
  6. The exit

Assignment #8: each student to create his or her own 30 second elevator pitch for their dream business. This pitch will be presented at the beginning of Class #9.

Sunday March 15 thru Sunday March 22: UMBC Spring Break


Class #7: The Art of Raising Capital

Monday, March 9

Finance Sources: The Art of Raising Capital

Reading: Mark Twain's "Roughing It", Chapter XLIV

Reading: Determining Success Factors of New Firms: “What are Firms? Evolution from Birth to Public Companies,” by University of Chicago Graduate School of Business professor Steven N. Kaplan, Per Strömberg of the Sweden Institute for Financial Research, and Berk A. Sensoy of the University of Chicago. http://www.chicagogsb.edu/capideas/dec05/1.aspx

Types of financing sources for start ups:

1. Angel investors: friends, family and professional angel investment networks:
review website: http://angelsoft.net/

2. Venture capital: professional investment for early stage business
review website: http://thefunded.com

3. Private equity

4. Small business loans: government sources, foundations and local banks
review website: http://www.sba.gov/

Assignment #7: Identify 3 sources of capital for your business plan. The sources should have a definite focus on the type of business you are envisioning. The name of your initial contact person should be included. Create powerpoint slide to document.

Class #6: Financial Projections

Monday, March 2

Financial Projections:
How to create a financial projection using information gathered in first 3 lessons on market size, costs, and the overhead necessary to create and sustain the business.

Classwork will focus on the line by line dissection of a business plan financial projection.

Assignment #6:
Development a 5 year summary financial projection using spreadsheet software WITH first 12 months detail. Base revenues on assumptions from the target market size data from Assignment #2. Base Product costs on Assignment #3. Base General & Administrative costs on Assignment #4. Base Marketing costs on Assignment #6. P&L derived from these projections will lead to necessary capital requirements and forecasting of return on investment.

Class #5: Marketing Costs in the 21st Century

Monday, February 23

Marketing Costs

Readings: Crossing the Chasm Part II, pp.103--161, Review "how to" areas of Yahoo! Search Engine Marketing, Google Adsense, and Adbrite. Review website: http://www.seomoz.org/

Discussion of how to market products and develop a marketing budget, using ONLY online and low cost "guerilla" marketing. Search Engine Marketing and Search Engine Optimization solutions will be defined, analyzed and discussed with regards to both online and "real world" products.

"That kid in the playground": There's always that one kid in the playground that knows the best new videogame, the best cell phone, the best new rap artist, the best new snack: How do we reach them and make them our partner? Who is "that kid" in your target market beachhead?

Online : Google Adsense, Adbrite, Yahoo Marketing, Facebook, Craigslist

Offline: Wild posting, celebrity endorsement, product placement, and PR: Make Friends with the Journalist:
"There are three infallible ways of pleasing an author, and the three form a rising scale of compliment: 1--to tell him you have read one of his books; 2--to tell him you have read all of his books; 3--to ask him to let you read the manuscript of his forthcoming book. No. 1 admits you to his respect; No. 2 admits you to his admiration; No. 3 carries you clear into his heart."

Assignment #5
Create Marketing budget for your product using electronic spreadsheet software, summarize in powerpoint slide, or the equivalent.

Class #4: Creating the Dream Team

Monday, February 16

Overhead and the Division of Labor: Creating the Dream Team
Readings: Selected excerpts from the IPO filings of Apple Computer and Microsoft

"From each according to their abilities, to each according to their needs": Karl Marx

Classwork will focus how do you know what you don't know, and when and where to ask for help and how much to pay for it. Modern tools for sourcing of labor will be discussed and demonstrated: craig's list, the ladders, monster.com, rentacoder.com, guru.com, getfriday.com

Organizational Structure and Behavior: Crafting the Dream Team

Sales and Business Development: Making More Money
Real Estate: the Office or the Garage?
Legal: the Counselors:
Finance, Payroll & HR: Not a Profit Center

Discussion of consultants, employees, contract labor, user generated content and other 21st century labor definitions. Discussion of the formation of IMDB.com and Celestial Seasonings.

Assignment #4

Create a organizational chart of not more than 10 people for your company and place it in a powerpoint slide. Place these into a powerpoint slide in bullet point form, along with estimated annual salaries and/or hourly costs per each headcount per year. Deliver in powerpoint slide format or the equivalent.

Class #3: Product Development and Sourcing

Monday, February 9

Product Development and Sourcing

Readings: selected readings from IPO filings of Apple Computer. Crossing the Chasm, Part II pp. 63--103

1) Discussion of Products and Target Markets assignment.
2) Products and their cost basis

What do you want to build or produce? What service do you want to provide? Break down the product or service into its constituent components and begin development of a component sourcing plan. Where are the materials or services necessary to build the product located? How does the entrepreneur source these components? Once sources are found, students will be encouraged to think of lower cost substitution and replication. The cost of the product versus the potential quality and acceptance by the target market will be discussed.

Classwork centers on these topics:
Raw materials and services sourcing
Assembly lines
Outsourcing solutions in the 21st Century: case studies: skiphop.com, guru.com, napster.com

Class #2: Markets and Marketing

Lesson 2: Monday, February 2

"Cherchez le creneau!"

Niche: "a habitat supplying the factors necessary for the existence of an organism or species"

In the study of any specific ecology, a successful species is one that grows and thrives in direct harmony with its surroundings. When the ecology changes, species must adapt or die. Using our interdisciplinary reasoning skills, we will apply the role of a changing environment on speciation and draw conclusions on how to create a successful business in our changing economy.

Readings: Crossing the Chasm, Author's note and preface to the revised edition pp. i -- xix; Part 1: Discovering the Chasm pp. 3 - 59, selected readings from IPO filings of Under Armour and Starbucks

"If you build a better mousetrap the world will beat a path to your door." If you learn nothing else in this course you will learn that this statement is wrong.

Class Discussion: Technology Adoption Life Cycle: terms and implications. Psychographic descriptions and behavior of the iconic customers. Finding the target market.

Markets are everything: what is your target market? How big is this market? What is the growth rate of your market? How does your market behave?

These are essential first questions to ask for any potential new business. Fortunately, finding the answers is easier than ever with specific internet data sources at your fingertips. Classwork will go over how to determine and size target markets, internet web sites will be provided to complete the homework. Sources discussed in the class will be US Government online sources (e.g. http://www.census.gov/), "Mash Up Sites" http://www.policymap.com/, http://www.trulia.com, Securities and Exchange Commission (http://www.sec.gov), Macro economic indicators http://www.conference-board.org/

Other resources include: http://www.surveymonkey.com/, http://www.work.com/, http://www.entrepreneurship.org/, http://www.censusscope.org/, http://www.fedstats.gov/, http://www.bplans.com/, http://entrepreneurs.about.com/

Discuss online marketing costs and theory using Google Adwords and similar online marketing tools. Discuss the "Rules of Powerpoint".

Assignment #2: Choose a market you believe is the target for a product you are interested in launching. Research this market and come up with 5 important characteristics based on facts sourced through online data sources. Place these into a powerpoint slide in bullet point form, email this slide to the professor at least 48 hours prior to next class and be prepared to discuss and defend in class. Just as we use the "scientific method" in developing a hypothesis and then test it empirically, we will test each proposed target market through fact based observations and deduction.

Class #1: Who is the American Entrepreneur?

Lesson 1: Monday, January 26

Viewings for the class: Tucker, Alexander Graham Bell
Readings: selected excerpts from Twain, The Adventures of Tom Sawyer

1) Be ready to discuss the mindset of the American entrepreneur and their place in American history, literature and film.

2) What is an entrepreneur? How has the history of the United States come to foster this American icon? Who is "today's Tom Sawyer"?

3) The Profit Motive

4) Trading and Producing

5) Hunting and Farming

6) The Gold Rush and After the Gold Rush

Writing Assignment #1:

Which American entrepreneur do you admire most and why? How does their life story relate to yours? 2 pages

Further Course Readings

Readings from IPO [Initial Public Offering] Documents, sourced from SEC.gov and elsewhere:

Apple Computer S-1/A: December 12, 1980


Microsoft S-1/A: March 10, 1986


Starbucks S-1/A: June 25, 1992


Google S-1/A: August 19, 2004



Under Armour S-1/A: November 18, 2005