Tag: #entrepreneurs

Ed Alexander – Search Engine Results: Getting on Page One

Today on the Edge of Innovation, we are talking with Ed Alexander, founder of Fan Foundry, about Search Engine Results and getting on page one of search results.

Paul: Hello, and welcome to the Edge of Innovation. I’m Paul Parisi, your host, and today I have Ed Alexander, founder of Fan Foundry.

Ed: How are you doing? Nice to be here.

Paul: Great to have you.

Search Engine Results: Getting on Page One

Ed: Being on page two of the search engine results page is, is maybe not necessarily a bad thing.

Paul: Sure. But it’s not a good thing.

Ed: Sure. Think about it.

Paul: I mean, we’re lazy. Web consumers are lazy. So I dig a lot into the web and find things, and people are always surprised. “How did you find that?” Well, I go to page two and page three and page four and page five, and I tweak the query and I, I change the order of words and I…and all sorts of things. And they’ll say, “That’s how I should have asked the question,” because now I got the answer.

Ed: Bingo. Exactly right.

Paul: But a lot of people don’t do that. They don’t have the patience for that. So how do we, in a real world scenario, I’m, I’m an attorney. Uh, I do elder law, and I want to get more clients. And I’m coming to you for SEO and, and all the things that follow along. So if I get somebody there, you gotta worry about getting somebody there, is what do we do after that? We’ll talk about that in a minute. But really, I’m trying to understand SEO. So we do everything right, uh, and we get on page two.

Ed: Yeah. Are you talking about a real world example?

Paul: No, I’m not. I’m just making it up.

The Blessings and Curses of Page Two

Ed: So hypothetically. Alright. Dealing in hypotheticals is a tough one for me only because it’s entirely possible that if you were an elder law attorney in Beverly, Massachusetts, there may not be that many, and there may be so few that you’ll end up on page one of the search engine results. So this is hypothetical. However, even if it were page two, I would have to think if I was a visitor trying to find that elder lawyer, I’d be looking at a few red herrings, ads and mismatches on page one. So even if the SEO isn’t tweaked or isn’t tuned so that I’m looking at a result on page one, I’ll probably have to go to page two to search anyway. I may not be happy with that result, and maybe I’ll think that Google is failing me somehow because they’re not giving me a page one result, but it is incumbent on me, if I really need to find an elder lawyer in Beverly, Massachusetts, that page two isn’t so bad.

If I’m the elder law attorney, and I have a certain, uh, volume that I can entertain of business, being on page one could be a blessing and a curse.

Paul: Be careful what you wish for.

Ed: Exactly right. You just might get it. So I’m not saying you necessarily need to be satisfied but you have to think in the broader terms of what are you hoping to accomplish and what can you reasonably take on.

Paul: Certainly. That’s good business meeting to sit there and say, you know, I can, I can get 10 new clients or I can get a hundred. I don’t want to put up billboards everywhere and get too many clients and have to turn them away.

Ed: Sure. And you have to think about the type of business persona you’re portraying to the world. If you are a very loquacious lawyer, and you’re happy to speak to the public, and you have a public persona that’s more or less prominent compared to your competitors out there, then that’s an opportunity for you to do something like a podcast or to write articles or to even use something as — dare we say it? — Yelp, a review site, even though people think of that as for restaurants and hotels, nonetheless, Google respects Yelp positioning, and that can help your search engine results.

What is the weighted importance of SEO? Article Titles Matters.

Paul: If you had to draw a pie chart, how much is the SEO? Forget about content. Well, it has good content, we’ll assume. But the reason people are coming is because of SEO and the content that comes with SEO. That is one segment of the pie. And then the other stuff is all the other stuff. And we’ll… I’d like to dig into that a little bit of how you would direct that. But what? Is it 50/50? Is it 25% SEO and 75%?

Ed: To me, it’s increasingly become a concern, uh, to, once you be increasingly concerned with the value that you’re delivering, the value you’re conveying. I can use myself as an example. Let’s go back to the Fan Foundry blog. I’ll tell you a genesis story. It will take a minute.

When I begin writing my first few blog articles back in 2008, I had a, you know, more or less, successful career in marketing and sales leadership, and I thought to myself, “Well, there’s probably enough people out there who are on a different phase of the journey than I am who could stand to benefit from the thimble-full that I know. So let me turn this into a few articles and send it out there, and see how people consume it,” doing my experiments with my content.

One thing I learned early on — frankly, by accident — was using Google’s type-ahead search. You know how it fills the answer in as you’re typing? It’s kind of cool. It shows you other ways other people have asked the same question or similar questions and the results they’ve gotten. I used that. And I thought, “Ooh, you know, the best way to title this particular article on virtual trade shows is, ‘Are Virtual Trade Shows Worth It?'” Specifically that sentence, those words, in that order with a question mark on the end. I used that as the title for a blog article I had written the month earlier about trade, virtual trade shows. I didn’t title it that way. I changed the title, and boom. Suddenly the traffic just… It was an embarrassment of riches, frankly. For a one-month-old blog, I would say I was pleased and embarrassed, and I realized, “Ah-ha. The article title matters.”

Paul: So that’s an ah-ha moment. That’s a very important thing for our listeners. Google, what you’re going to be talking about, try and figure out what the questions are by what Google is going to suggest, and then use that in your titling.

Ed: Exactly right. Use Google’s own machine learning on how people ask similar questions and decide based on the results you’ll see in your type-ahead search which of those is the most effective title for you to use and write your title accordingly.

Paul: Is that search history queryable? I know you can type it in yourself, but I’m wondering is there somebody out there that says, “Here’s everything that’s being searched.” I know on Bing, you can get like the past 10 searches or there’s a catalog of the past searches for the past couple of hours or something like that. I’m wondering. That would be a really interesting vector to look into to see if that’s available.

Ed: Yeah. Well, I’m not a genius; if I’ve imagined it, someone else is out there either working on it or maybe it’s about to be delivered to us all anyway. What I’m speaking of is the notion that all those different variants on the question that you’re typing ahead then get presented to you in a graph that says the searches that got the best results are this particular one. I’m also a little concerned about that because if you, everyone stops us—, starts using the trodden path, it kind of levels the field, and now you’re in a watershed mark, and it’s table stakes and not a differentiator.

Paul: We’ll have to cut that part out. We’ll edit that part so nobody will know about it.

Ed: Okay. Yeah. I was never here.

Doula Search Ranking by Location Query

Paul: Were never here. I don’t even know who you are. So, okay. Let me give you a real world example. We have a client who is a doula. They help moms that are giving birth.

Ed: I get it. Yeah.

Paul: And she works all over the North Shore, southern New Hampshire, all that kind of stuff. And we want to do SEO for her. So we’ll use her as an example. How would you approach it? Because some people say, “I want a doula in Beverly.” Some people, “I want one in Danvers.” So what is the actual real work that we have to do? Do we make landing pages for Beverly, for Topsfield, for Danvers?

Ed: That would help matters, however I’m not sure you need a separate landing page for each one. But I think equally important work for that doula to be doing is to represent him or herself — likely herself, let’s just assume — to represent herself in such a way that anybody who is looking for a doula in the North Shore of Massachusetts lands on a landing page that says, “Oh, by the way, as a doula, I have working relationships and customer stories from people just like you who have used these facilities.”

Paul: Yeah. They’re doing that. They’re doing very good at that, actually.

Ed: Excellent. That’s great to hear.

Paul: But, if you go, “doula in Saugus,” she doesn’t come up. If you do, “a doula in Danvers,” she comes up. So there’s something in her content that is making her relevant to Danvers and not to Saugus.

Ed: Why do you suppose that is? I get that… Well, I’m going to draw an inference since I know the region. There are more robust healthcare facilities and delivery facilities in Danvers. There’s a hospital in Danvers. There isn’t a hospital in Saugus. So my thinking is if I were the tail wagging the dog, meaning the person doing the searching, I probably wouldn’t look for a doula in Saugus. I’d look for a doula near a healthcare facility. And so, just by dint of volume of searches…

Paul: So how would you test that? Because that’s what you’re saying, do experiments. How would that be an experiment? So Beverly, Linn, Danvers has a hospital… Lawrence…

The Difficulty with Words

Ed: Lawrence Memorial is in Bedford, in Medford, rather. There is a hospital in Lawrence, but it’s not called Lawrence Memorial.

Paul: Yes. Of course not. Yes, of course not. Just… It’s New England.

Ed: That’s why you drive in a parkway and park in a driveway, I guess. One of the tools that I’ve found is particularly helpful, and it may not work in granular case, but it has worked in the past, is to use Google Trends and look at the trends over time of people using search terms and phrases to find results.

I’ll draw a parallel example. I have a client who is in the luxury travel business. Specifically in luxury yachting, big boats, million-dollar boats that you could charter for a week or a month or a sabbatical.

Paul: Where do they launch out of? Anywhere?

Ed: Well, this particular client does not own a single boat. They are the go-between, the intermediary that helps. They’re worldwide.

Paul: Okay. So I can get a boat anywhere.

Ed: Right. So this is a client who, to use the phrase I used earlier in another podcast episode, was punching above your weight. She’s able to represent her business with a handful of staff all over the world because they make it a business to travel all over the world to actually, physically, personally, inspect the boats, the captains, the crew, the—

Paul: Okay. That’s part of their value.

Ed: It’s traveling all the time. So they delivered that value with the intimate acquaintance with not just the yachts and the crews and the charters and the marinas but the onshore excursion experiences and the amenities and everything there is to do about enjoying that yacht charter.

Punching above her weight in this case means she could be searched on and found anywhere in the world, even though her offices are in Marblehead, Massachusetts, Newport, Rhode Island, or other cities. It’s not as big a concern for the customer where they’re located as it is do they represent the type of business and the satisfaction because of all the great customer stories of Facebook, on Twitter, on LinkedIn, and on their website.

Paul: And is her SEO effective?

Ed: It’s okay. She’s not showing up always on page one of the search engine results for every single search query a person could do about luxury yachting. It’s just so rich and varied. For the New England region, however, she’s it. She’s all over it.

Paul: Why do you think that is? Because her address is in New England?

Ed: Entirely possible. If you look Boston yachting, there is a handful of Boston yachting, and she’s going to…been in the business for over 30 years. So there’s something to be said for being, just having longevity and having driven traffic over that many years.

Reputation: “How do we crack that nut?”

Paul: Sure. Do you think Google takes that into account?

Ed: I can’t imagine they would want to leave it out.

Paul: Yeah. I would agree. Okay. So for a newcomer, let’s say you had a client, you know, another company does exactly the same thing. How are they going to crack that nut? That’s really difficult.

Ed: That’s a great question. You really can’t make up history.

Paul: Right. I guess what I mean is how do they get good SEO or search engine rankings, I guess, is what we should call it.

Ed: Compelling content. Customer stories. It’s a gradual relationship-building process. Frankly, everything old is new again, when you think about it. How do people build a reputation? Over time. One grain at a time. There’s no shortcut to friends. There’s no shortcut to love, fame, fortune, reputation. When you’re naked in your grave, the only thing you have left is your reputation, what people think about you and what they tell about you, no matter how they want to tell it. The only way to build that is over time, one relationship at a time.

Paul: So let’s talk about that. So you’ve got either a new yachting company. We’ve got this doula. The doula has great stories, great testimonials. Is there anything to super-charge that? I mean, there has to be, I would imagine, a deliberateness of posting them, and posting new ones. Is that the bottom line is just keep it fresh?

Ed: Keep it fresh, but I think that prominent posting and judiciously but publicly promoting the customer stories is helpful too.

Paul: Give me an example of that.

More Help for the Doula – A Similar Success Story.

Ed: Alright. Let’s say that a North Shore healthcare facility has a good working relationship with this doula. Their blogs get, their articles get read. This doula could have a byline on one of their articles mentioned and with a link back to her website. So there’s somewhat…certain layer of the SEO. There’s the link from her byline. There’s the fact that she’s the representative on the content. One would hope there would be some photographs, right, group photos of herself with practitioners, enjoying each other’s reputation together, all the things that build credibility.

Paul: Okay. So cross-pollination, really working between organizations or websites and, uh, “I say something good about you,” and people see that and then go off and link it in your site.

Ed: Sure. Funny that you mentioned doula because I can bring to earth an experience for you. A few years back, through another business, a business colleague of mine, I was referred to a woman who lives in the Chicago area who herself had suffered from an amniotic fluid embolism, or AFE, which is until recently was, essentially, a death sentence. It happens that somehow or other, fecal material or material from the fetus travels across the placenta, causes poison reaction in the mom, and both the mom and the baby usually don’t make it, or one or the other doesn’t make it. So there’s a very, very high level mortality, very little understood. Her name is Stephanie Arnold. She had one in May of 2000 and, I want to say, 13. It turns out, both she and her son Jacob were born and are alive and fine only because she took certain precautionary steps in collaboration with the delivery facility. Her doctors made sure certain, unusual equipment was present during the case of the need for resuscitation, extra units of blood and on and on and on, extra precautionary steps that they took that they realize now, now ought to be pretty much what you should do in the case where there’s a high risk. It wasn’t an ordinary procedure at the time. Now it’s becoming pretty standard. So in Chicago land, all medical facilities are expected to do certain things differently than they did before, more than they did before in the case of a mother at risk.

But she started out by telling this story and also of her own survival and used that as a, if you will, an opportunity to help with the drive, the, the impetus to improve funding and research into amniotic fluid embolisms, how they occur and how to prevent them, how to warn, how to mitigate them. She also became a spokesperson for the Amniotic Fluid Embolism foundation, the AFE Foundation, headquartered on the west coast, became very close friends and good acquaintances with their leadership people. And so there, in your community, in the business and world in which your information is related or relevant, if you could forge relationships where you’re supporting one another’s business, that rising tide lifts all boats.

Paul: Yeah. Absolutely.

Ed: And if you can make that happen online, that helps people understand why you deserve the credibility and the reputation you have. And that builds confidence. Most people don’t buy unless they’re happy that they feel, feel confident that they’re making a purchase from a sound, reputable business.

Summary of Discussion on SEO

Paul: Yeah. That’s true. I think that’s absolutely true. So let me just rehash this a little bit. So we’re talking about SEO a little bit, and SEO is, I guess let’s define it. It’s the means by which we get a search engine to show us more quickly, sooner, at the top of the list, as opposed to at the bottom of the list.

Ed: That’s a good definition.

Paul: And that gives people, customers, users, visitors, whatever you want to call them, the opportunity to discover us, click on us. So we manipulate this ranking by optimizing our website so that the search engine will display us at a high level. Okay. So that’s fair. And you’re primarily saying you do that by writing good content, say something. Say something good and interesting. And in the area of local businesses, share that information with local businesses and have them say something or let them have you say something on their website. Build that relationship so that now the people that are out there — customers, potential customers — will see you sooner than later. “I never knew you existed.” You want to answer that thing, that question, so that people don’t have that excuse anymore. They can say, “Oh, yeah. I saw you on the web. I’m interested in talking.”

It’s been a fascinating discussion about SEO and understanding, really, marketing in the web world. And we’re going to be talking with him over several podcasts and I think you’ll find some very interesting things. So, Ed, I want to thank you for being here for this first podcast.

Ed: It’s been fun, Paul. I’m looking forward to what comes next. Thanks for having me.

Cognitive Overload?

On Episode 17 of The Edge of Innovation, we’re talking with Paul about cognitive overload and recent changes in crowdfunding.

Show Notes

Paul’s Twitter
“Reducing Cognitive Overload For A Better User Experience”
“$5 Million Raised Since Change in Equity Crowdfunding Rules”
“How to Harness Joseph Schumpeter’s Forgotten Path to Innovation: Organization”

Transcript

Sections

Cognitive Overload
Equity Crowdfunding
Schumpeter

Introduction

Cognitive Overload

Jacob: Welcome to the Edge of Innovation, it’s great to talk with you, Paul. Today we’re going to be going over your tweets.

First, “Reducing cognitive overload for a better user experience.”

Paul: Yeah. This, I think, you know, is sort of… I mean, it’s number six. I think it’s the sleeper, because this is what we’re all about as producers of content for the web.

Jacob: Sleeper, you mean, this is going to be a bit of a dull topic for most people?

Paul: No. I think it’s the one that is…should be more attention paid to. If people knew what they were reading, and it was…this is really important. This is something that you should really think about.

Jacob: Yeah. I mean, I read the title, and I immediately think of all the work we do at SaviorLabs. And there’s an incredible amount of things that this sort of topic affects.

Paul: Absolutely. And this is sort of the marrow of the discussion. This is really what it’s all about, is that user experience, when we talk about it, is frictionless, and it just works. And that’s why Apple devices are so cool, is they just work.

They’ve got cognitive overload very low, you know. There’s a great book, “Don’t Make me Think”. And those things, while, you might say, “Well, I’m intelligent. I can think. I can do all that.” Well, they create cognitive load. And so while the title says “Cognitive overload,” it’s really we want to reduce cognitive load in everything we do.
Jacob: I saw a guy doing a bit of a sketch recently about the difference between America and, English, or the United Kingdom food experience. And he was just making the funny comment that like, yeah, when you open a menu in America, it’s gigantic. But we celebrate choices. And we have all these choices. And in some ways, with the user experience on a website, you’re actually trying to do the opposite. You’re trying to reduce the amount of choices that you have.

Paul: Well, that’s great. As we talked about Microsoft earlier, they give you lots of choices. Apple says no. We’re going to reduce the cognitive load. You just do it this way. But we’ve got 30 years of Microsoft giving us these options. If we had never been taught that, we would have said, “Well, that’s the way you do it.”

So, you know, cognitive load is probably one of the most important things, because, you know, cognitive load isn’t bad, but we have to be selective about it, you know. So if it’s really complicated to, cook a meal, you’re not going to be engaging with your children or your wife or your spouse or significant other. You’re going to be concentrating on this, you know, and there’s a high cognitive load there. So, you know, if you’re a brain surgeon, and you’re in the middle of surgery, you’re not going to be talking about how the game was, because there’s a high cognitive load.

Those are important things. But, you know, it’s like well, I’m going to choose the simpler way to do things so I can engage with other people around me. So as we reduce cognitive load, we let people do what they want to do.

Jacob: Yeah. So, what are the… Are they any sort of particular recommendations from the article that stuck out to you, because…

Paul: Well, I think most of it is just disclosing the concept of cognitive load and really to be aware of it, you know, because, there’s another tweet. I don’t think it made it into the top 10, but minimal websites. And there’s this… There’s this tension that occurs with website design where you can get too simple, you know, and not give people enough information — not just design. But design and content. So you could just say, you know, we make websites. Okay. Well, that’s not enough information for somebody to choose you as a, as a services firm. So that’s not…

We were talking about with the ads around, things, the cognitive load on that is horrible. I mean, it’s just like… It’s overload.

Jacob: Well, and in some ways, the cognitive load is understanding your target audience. Because if your target audience, for example, if you’re a restaurant and you have a website, and it’s diffi— your target audience are clientele to come to your website. Right? I mean, that’s the people that you want to come to your website. And if the cognitive load is so difficult for them to find out just the simple address and operating hours of the restaurant, you’re going to lose business. So that’s why this is really important, because if it…

Like, there’s a cafe in my city. I love it. I love going there. Occasionally I have to remember, you know, what are the hours to go. And for whatever reason, the way they have their website designed, it’s not the first things at the top. It doesn’t say, “This cafe. These hours.” I have to scroll all the way to the bottom, and then it’s in a dark font on top of a brown background.

So, it’s like… It’s a slick website, guys, but you missed it on this one. The cognitive overload is almost enough to make me say, “Ah, just Dunkin’ Donuts.”

Paul: Right. I agree. I just had a similar experience with a restaurant I was invited to. I didn’t know anything about it. I wanted the address. It took me like four minutes to find the address on the website. I mean, what’s with that?

Jacob: If you are a restaurant that wants people to come to you, the most basic information that they need — where are you.

Paul: Yes. Where are you? And when are you there? More than anything.

Jacob: And we have food. Okay. Alright. Next article from the month, “20 free JavaScript libraries web developers can use.”

Paul: Sure. JavaScript is really the language of the internet. It is the way we manipulate and do things that look cool and offer eye candy and user interface components. And so, what’s nice about this is this is sort of an inventory of, you know, 20 of them, which gives you a nice summary of what it is and what you might want to plug it in on your website for.

Now the danger with this is that you might… You could implement them all and then your site becomes very heavy. So you need to be very selective about what you want to use and how you do that. But I thought it was a great article, because it sort of very, very quickly summarized, in a couple of sentences, why you should look at these. And, you know, it covers React, for example.

Jacob: Oh. That’s great.

Paul: You know, but it also comes and covers AngularJS, which is another, another way to do things. And so all of these different things that you might have heard of but don’t really know the depth on, this is a great jumping off point.

Equity Crowdfunding

Jacob: Oh, that’s excellent. So next article that was up was “50 million raised since change in equity crowdfunding rules.” So this was on Entrepreneur, and—
Paul: 5 million.

Jacob: Oh. What did I say?

Paul: 50.

Jacob: Oh. Well, that would have been great too.

Paul: Yeah. That would have been great, but…

Jacob: 10% of 50 million. 5 million raised. So what’s the… What’s going on with this article, and what’s the payoff that you felt like that people needed to hear?

Paul: There’s a fundamental shift going on in the way that entrepreneurs can get money for their company. You could have always had people give you money, or, you know, loan you money — friends and family. That kind of thing. And there, there weren’t a lot of rules in that. But it actually, it was illegal for you to advertise for… Like, say, you, you know, 10 years ago, 15, 20 years ago, you took a want ad out in the newspaper. Those are those things that are printed on paper and—

Jacob: Yeah. Yeah. I’ve heard of those.

Paul: They fold them up and they throw them at your house. Or you go and pick them up at the corner. You took an ad out that says, “I’m starting a new company, and it does X, Y, and Z, and we want you to invest.” That was actually illegal.

Jacob: Really?

Paul: Yeah. You could not do that. That’s from the SEC’s—

Jacob: I didn’t know that.

Paul: Yeah. You’d get into trouble, you know. They’d come and say, “Yeah, you can’t do that.” And the reason is, is because your… Well, you know, I don’t know what the long-term historical reason is, whether it’s a way to protect Wall Street. You know, it might be.

But I think it’s the, the investing. You know, there’s this thing called an accredited investor, which you have to be in order to invest in certain things. That means that you have to have a certain level of liquid net worth. And it protects you.

Now, it’s interesting. You know, so I just said it. 20, 30 years ago. Actually, the rules that prevent that may not have been in place then, but I’m pretty sure the SEC would have had problems… But there are rules now, and have been — and I’m sure we could get a lawyer on that could talk about all this — that prevented you from advertising and saying, “Hey, I want to raise money for my, my company.”

And because of those claims that you say, you know, “We’re going to make a billion dollars,” or we’re going to do this, or we’re going to do this. Those, you go and you walk down the street, and you see a grandma who likes you. You don’t know them at all, but they say, “Oh, it seems like a nice person, and what they’re doing and all that.” That border is a borderline problem, because you are, you are taking somebody who’s not an accredited investor, maybe taking money that they don’t have that’s liquid that is riskable, and going to be taking it and giving it to you in speculation. So they’re not a professional investor.

And so that, that’s not a good thing, you know. So now, with the internet, you know, we’ve come up with Kickstarter and Indiegogo and all the other ones where you can sort of have these micro investments. You can invest $200 or $100 and all these things. And surprisingly, the SEC has been okay with that.

Jacob: Really?

Paul: And, that’s sort of the initial crowdfunding, those rules. The SEC came out with a, an announcement to say it’s okay to do that. And so, you know, you can go out and put that crowdfunding rule out there and, do it and raise money for your company that you could have never done legally before. You could only have done through friends and family. So, if you have an idea, that’s really all you need. And now you can put that up on a website, and if the idea, you know, has synergy with people’s minds, they give you the money, you go off and do it.

Now, you are representing that you’re going to do it. And you’re going to do faithfully, and all that different stuff. And you can get into trouble for not doing what you say you’re going to do.

Jacob: Well, I think with, organizations like Kickstarter — I can’t speak for other ones. I know for Kickstarter, if a crowdfunding does not follow through or the timeline gets perpetually delayed… There is a book project I saw happen where, you know, we’re going to produce this set of books in 2014, and it’s still delayed to September 16, 2016. I’ve seen loads of people start pulling out their investment because they haven’t followed through. So there are those protections, at least, built into those things.
Paul: So it’s just this fundamental change. And what’s interesting about this is Wall Street doesn’t have a lot of control over it. You know, I don’t think people generally know… If you want to talk about conspiracy theories, I don’t know that it’s that, but the depth to which the roots of Wall Street’s control is in our economy is huge. And you just don’t understand it. This is a disruptive event.

Jacob: Yeah. Well, this seems not only a disruptive event, which is, I hope, good for Wall Street, but it’s also good for entrepreneurs.

Paul: Absolutely. And I think it’s good for individuals because what you see is “I like that.” That’s the ultimate way to invest, is invest in companies, you know. The investor guidance out there is invest in company that you think do a good job.

Jacob: And it’s been great. I’ve seen several companies, that have started with miniature projects on Kickstarter that have kick-started entire careers so there’s Misc. Co. Goods in Louisville, that he started out with like just a simple card deck, I think it was like three or four years ago, and it launched an entire design career for him, because it had synergy with people. And it was a sort of Kickstarter thing where, you know, “Hey, I need $20,000,” and “Oh, my gosh, I have $150,000 invested in this project.” You know, so…which is exactly what you want as an entrepreneur.

Paul: Right. Well, and it’s interesting, because, there’s a lot of people in the web world who say if you have an idea for a website, don’t build it, build a landing page for it to say, “We have a new idea for this, this, and this. Sign up if you’re interested for free.” You know, “Sign up for more information.” If you don’t get traction on that, you’re probably not going to get traction on the product.

But yet, you’ve spend six months and thousands of dollars if not hundreds of thousands of dollars, trying to build that product, you know. So it’s very wise to do that. And Kickstarter is another way to validate it. It’s a great idea and all the other systems that are out there.

Joseph Schumpeter and Organization

Jacob: Okay. So, for our last article, I threw this one in there because it looked interesting, probably because I’m always interested in biographies of leaders and how they can help us be better businessmen and entrepreneurs for the future or businesswomen for the future. “How to harness Joseph Schumpeter’s forgotten path  to innovation organization.” Talk us through that article.

Paul: Yeah. I mean, it’s really simple. It’s organization, you know. Now, he was an economist, passed away in 1950 from the late 1800s. What’s interesting about these old dead people is they dealt with the same problems we’re dealing with. They had different tools. People fundamentally were the same.

Jacob: They lived in black and white.

Paul: They lived in black and white. Yes. And, you know, they didn’t have some of the cognitive overload that we had. So in some ways, they had much clearer visions for what had to happen. And he really summarized… His view was basically organize things so that you can utilize new…I don’t want to say technologies, but new, new ways of doing things. So new version of a product. Introducing new methods of production, open new markets, and acquire new sources of supply.

So it’s not about necessarily external innovation, but from an entrepreneurial point of view, it’s optimization. And we talk about it very naturally now. You know, reducing cognitive overload. Make your site simpler.

Well, that’s, that’s something where we might, you know, go… Well, now we’re going to move to ReactJS. That’s a new method of production. Why? Because it offers us this and this ability. So really, you know, these things are somewhat obvious when you say them. But if you don’t think about them, they’re not obvious. And this was a really good article to help sort of crystallize that in the reader’s mind, is…

One of the things that we see in business and in talking with different — especially nonprofits — they get so caught up in what they’re doing — run, run, run, run — that they forget why they’re doing it. And they’re doing the wrong things now. And I think we need that stepping back and say, “Wait a minimum. Are we doing the right thing? What are we trying to accomplish here?” That is so critical.

And I think that this, focuses people on that, so it was a good read.
Jacob: So, talking through, how do you organize things so that you can step back.
Paul: Absolutely. Yeah.

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