A few months ago I wrote a post on the advantages of finding a business partners. Recently I’ve had some people ask me how to find a co-founder for their new companies. It’s apparent that they didn’t know the first place to look. Finding a business partner who has a complementary skill set is only half the battle. More importantly you must find someone you can work with. Building a company is not easy and you need to know that your partner is going to be there for you when things get tough. These are my opinions on what makes successful business partnerships. They’re based on a combination of experience, second hand stories, and first hand observations.

Warren Buffett and Charlie Munger

Liking your business partner is not enough for a successful partnership. I’ve got friends I love, but would probably couldn’t make 10 cents building a business together. The second most essential components to a successful partnership are communication and trust. These are cornerstones for any successful relationship, business is no exception. Poor communication leads to mistrust and that strains the relationship. Your business relationship will get uncomfortable quickly if you don’t communicate properly. You must lay out ground rules and constantly discuss what’s working and what’s not working. If you don’t trust your partner and feel comfortable speaking freely in front of your business partner, that is not promising for the future.

Trust (and faith) are what will get you two through the most difficult times of a business. Don’t think you’ll have those tough times? You obviously haven’t started a business, because they happens to everyone. It can be very stressful and equally tempting to jump ship when the money isn’t coming in but a job offer awaits. If you can’t trust your partner to be there for the long haul, it’s not going to be a successful partnership. (Startups are like marriages, they’re long term. Most exits don’t occur until years 5-7+ so you make sure you can go to sleep knowing this person will be in your life for the better part of the next decade.)

Larry Page and Sergey Brin

Genuine fondness, communication and trust, and personality types…these are a few more key components to a successful business partnership. There will be varying levels of each fondness, trust, and communication among founders, but as long as you are aware and comfortable with it, that’s all that matters. I truly believe that if you don’t address these four factors, you will have a difficult time as your company progresses. My advice to anyone else looking for a business parter is to be aware of these factors and answer these hard questions with a potential partner now. That way, when things get really hard, you can focus on the business, not each other.

I have been living in Los Angeles since February of 2008. My four years in LA mark the longest tenure I’ve had in one area since I lived with my parents (granted I’ve lived in 5 areas of LA). In these four years, I’ve had a love/hate relationship with the city. I love the weather, and I largely hate the people. But all of LA is not bad and there is a reason why I’m still here and not in San Francisco or New York.  The reason is, I’m excited to be a part of the burgeoning technology scene in Los Angeles.

I am a firm believer that everyone wants to be a part of something larger than themselves. That’s why people volunteer, why people work at startups, and why they join revolutions…people want to see something grow larger because of their contribution. That’s how I feel about the tech scene in Los Angeles. While it is still in its infancy, it has grown exponentially in the past five years (more or less).  LA is still a far cry from the major tech hubs like Silicon Valley and New York City (Boston might even be considered above LA) but there is a great deal of potential here. This is exactly why I’m excited to stay in Los Angeles…I want to be a part of the economic paradigm shift in LA.

Entertainment drives this city. It’s what has fueled our economy for decades. That is slowly starting to change. As more states compete for filming locations and the cost to produce movies decreases, there is less money in the entertainment to be made (albeit still a very large chunk). That is why I see a great opportunity in Los Angeles emerging. I want to see more investment dollars brought into the city and more companies and jobs created because of it. I’d like to see Los Angeles create our own flagship tech company (i.e. a Google or Facebook) and thus create a smaller dependency on the entertainment industry for Los Angeles’ overall economic health. I am going to do my part to make sure that this happens.

By staying in Los Angeles and continuing my entrepreneurial endeavors, I will be helping this goal two-fold. First, I’ll help contribute to the tech community and further LA tech’s positive word of mouth. Secondly I will be building companies and creating jobs, which in turn will give investors more reason to invest their dollars in LA. The money goes where the opportunities are and LA doesn’t present as many opportunities as Silicon Valley or New York right now. More viable companies will force investors’ hands.

I am in Los Angeles for the long haul. I’ve wavered on my allegiance to the city in the past, but I’ve grown accustomed to the weather, I’ve learned to tolerate many of the idiots here and have fallen in love with the different parts of LA. I love the city’s intersection between tech, entertainment, and advertising. Overall, this city isn’t too bad and that’s why I’m dead set on seeing this city thrive.

The Department of Motar Vehicles. The bane of anyone’s existence. It’s awful. Long lines, disenchanted state workers, depressing interior decor, nothing about the DMV makes me happy. Every year I get my vehicle registration and every year I’d rather clasp shocks to my nipples. Up until this year, I’ve never had a DMV experience that made me remotely satisfied. That all changed when I sent a tweet out of frustration:

To my surprise, my tweet received a response…from the CA DMV Twitter account!

Wow. I was a bit stunned that the California DMV was savvy enough to start a Twitter account and use it for customer service. Still, they gave me an 800 number to call. Good, but not great service. I followed up that tweet with a more informational tweet:

That tweet was responded with a request for a direct message so they could contact me directly via phone.

Are. You. Kidding. Me? The DMV was going to give me a call?!?! I’ve spent hours being bounced from automated system to automated system trying to get a hold of someone, and the DMV was going to call me? I was shocked…and a little skeptical. Low and behold, later that afternoon I got a message regarding my tweet. I was told to call a specific person and given a DIRECT LINE! I was blown away.

The next day I made the call and instantly connected with the referred employee. She was sweet and extremely helpful. She looked up my case and gave me the information I needed. She even stayed on the line and walked me through changing my address (which I had to do before renewing my vehicle). I am still shocked by the service I received from the California Department of Motor Vehicles. I still have a few steps to go before I officially update my vehicle registration, but I have a much different taste in my mouth about the DMV after this experience.

This is a great example of the power of social media. By simply responding to a tweet and following up with me, the DMV changed a poor situation into a positive one. But their social response was only part of the experience, by actually following through, they helped me out greatly and provided value.  It’s a positive experience I won’t forget, and it’s a lesson companies should consider. If the DMV can properly use social media, than there is no excuse for any other brand not to be able to utilize social media to communicate with their customers and users.

Follow the California Department of Motor Vehicles on Twitter today!

I’ve said it a thousand times, being an entrepreneur is not an easy task. There are a lot of unknowns and it can be very overwhelming. Many entrepreneurs bring on advisors to give them outside perspective. It can be a very beneficial relationship that helps your company take the next step. There are a few considerations I would take when bringing on a business advisor.

*Disclosure: My marketing company doesn’t have any official advisors. I have several personal advisors and I’m considering bringing on an advisor for my new venture. My opinions on the matter derive mostly from second hand observations and self-education. 

Typical Business Advisor Relationship

This is my take on the entrepreneur/advisor relationship. The entrepreneur brings on an advisor for their advice and expertise. The advisor’s participation can validate you and your startup in the eyes of some people. The advisor can open his/her rolodex to you and open doors that might not otherwise have been available to you. Sometimes an advisor is more of a ceremonial role. It all depends on the advisor and what the entrepreneur is looking for. Typically an advisor will get about 50 points of equity but that varies as well. The Founder Institute has attempted to standardize the advisor equity formula, which is really helpful. Bottom line, an advisor is only a part-time fixture at your company. They’re helpful, but they probably won’t make or break your startup…you will. So don’t think bringing on Person X to advise will mean you’re going to get $5 million in funding and a $50 million exit.

What To Look For in an Advisor?

This is highly subjective, so let me be clear, this is what I look for. First and foremost, how successful have they been? I respect founders/CEOs with an exit the most (obviously). The pressures of being the CEO, the number one guy (or gal) is something only a few people know first hand. Taking an idea to market, building traction, and creating a valuable company that someone else actually wants to acquire is rare. There are so many experiences and lessons within that journey, knowledge only someone who has done this first hand can really know. An undervalued advantage of having a founder/CEO as an advisor is the emotional familiarity. The emotional toll between #1 and #2 is larger than it may appear and you can’t learn that from a book.

The second type of person I would look to have as an advisor is someone from a founding team (or very early employee) that had a successful exit. A former CTO or VP of Product can also have a great deal of knowledge to share with you. And their knowledge may be a bit more focused (like technical or design knowledge) than a former CEO who guided the entire company. Plus, there is the possibility that a founding team member might have a different exit experience than a founding CEO.

A CEO that builds a product/company and sells it for $10 million is a success, but would have a completely different experience than employee #4 who saw the company go from $0 in yearly revenues to $100 million in yearly revenues.  Just because you exit for millions, doesn’t mean you know how to scale, which is why you should know why you’re bringing on the advisor.

Who Not to Hire as an Advisor?

Everyone else. I’m not interested in anyone else’s opinion. If you don’t have success under your belt or taken the risk, your opinion is lost in a sea of other unaccomplished, wannabes (sounds a little harsh, but if it makes you feel better, I currently put myself in that category). Everyone’s got an opinion and it’s easy to give advice when you’re on the sideline. I don’t care if you’ve been around the scene for years, if you don’t have first hand experience as a founding team member with an exit, I don’t want you as an official advisor. Success breeds success and I’d rather learn from someone who has learned from doing it right as opposed to someone who learned by seeing it done wrong.

Aside from credentials, be aware of why the advisor wants to advise your company. We all want to trust everyone and believe they have the best intentions, but that’s not the case. Don’t bring on an advisor that sees you more as a feather in the cap than some they really want to help. It sounds bad, but it happens. I’ve seen people get burned by advisors who like talking about their affiliation with the startup, more than actually providing valuable insight. This doesn’t turn out well for anyone, so be aware of this when considering an advisor.

At the end of the day, you have to trust your business advisor. You must have a relationship that both of you are comfortable with. These are the guidelines that I believe in with a business advisor, but there is no right or wrong answer. What works for one business and entrepreneur won’t work for another. Trust your instincts, make sure you know why you’re choosing this individual, understand their motives, and go be extraordinary.

*I must note that I do respect the opinions of many entrepreneurs who don’t have exits and been around the scene for years. I go to these people for advice because they have seen more than I have. However, if I’m going to give you equity and an official advisor role, you need to bring something to the table that I cannot. I don’t have a successful exit, which is why I put such a great deal of emphasis on it right now. 

I had dinner the other night with a friend, a fellow entrepreneur from the midwest, living in California, around my age. Our conversation soon turned towards the realities of being an entrepreneur. It wasn’t the conversation you have with your parents or your friends from back home, where you put a positive spin on everything. No, this is the stuff only other entrepreneurs, who have voluntarily dragged themselves through 10o miles of runny shit, would understand. It was really refreshing and it reminded me of a blog post I wrote back in September called, “Dear Fellow Twentysomethings: You Are Not Alone”.

Social comparison theory describes how individuals base their opinions and desires according to their peers. It’s only natural to fall victim to do this. We all do. But, remember, what you perceive is only half the story.

As we grow older, we start to see our peers hit life milestones like marriage, home ownership, and children. We also see our friends who took the safe, corporate route start to make high salaries and it makes us think, “Did I make the right choice?”

The answer is always “Yes.” You made the right choice by following your heart and your dreams. When your friends look at you and what you’re doing with your life, that’s what they’re admiring. You may envy their wife and home, but they envy the fact that you took a chance, a chance they didn’t or probably will ever take.

Over time, things will begin to even out. Your friends’ career trajectories will plateau with corporate bureaucracy as your career continues to rise (because your fate is in your hands). You’ll fill another major gap in your life by finding the love of your life. Soon the home and kids will follow.  In a few years, you’ll look back and realize how crazy you were.  But I guarantee you’ll never regret a moment of it.

When you’re presented with a problem you have no idea how to solve, what do you do?

A) Do you highlight the major obstacles in a dejected tone and quit? (i.e. “I don’t know how to code” or “I don’t know anyone in the entertainment business”)

or

B) Do you immediately identify how to overcome the obstacles and get to work? (i.e. “I know Jeff who knows how to code” or “Liz is friends with Jill, who works in entertainment”)

If your first thought is “A”, then you’re not an entrepreneur…yet. “B” is the mentality of an entrepreneur. It seems pretty straightforward, but in my mind, this is the true litmus test to whether or not you’re ready to be an entrepreneur.

Admittedly, I was option “A” a few years ago. I wanted to be an entrepreneur, but I wasn’t ready yet. I’d have an idea, think about starting a business around the idea, and find one or two obstacles in my way. Instead of trying to figure out a way to solve them, I pushed the ideas aside with an “Oh well” attitude. It’s obvious that I was neither ready to be an entrepreneur or passionate enough about my ideas. If that’s how you currently think, have no fear. There is still hope for you.

Today, I’m 100% option “B”.  I got to this point because I was tired of thinking, “I can’t do this” or “I don’t have that.” Instead, I worked backwards and figured out how I could get this and that. I took baby steps and set small goals that would lead me to the next, which would put me on the path to my ultimate goal. This freed my mind from the paralyzing fear and just to focus on finding solutions to problems.

I’m currently working on a project that requires intense statistics and data engineering. Two things I am NOT proficient in let alone an expert. Three years ago I would have given up, but today I’m studying hard and reaching out for introductions via my professional network. I’m not deterred that I’m way out of my league with this math because I know I can connect with the right people to find a solution. It’s a great feeling and one that I hope other BoumanBlog readers have the opportunity to feel.

My advice to aspiring entrepreneurs is to reflect on how you approach problems/situations that you are unfamiliar with. Your answer will indicate if you’re ready to be an entrepreneur. It’s possible to mature into an entrepreneur, some may disagree, but I believe this 100%. If you’re afraid and need a pep talk, feel free to shoot me an email.

Happy new year everyone. It’s 2012. Can you believe it? Another year has passed and the optimism of a new year is once again upon us.

I’ve got four blog posts queued up right now. But before I make any of these go live, I wanted outline my thoughts on this blog moving forward.

I currently write content here that I would like to read. I find the blogs that I like to read on a daily basis are the personal experiences of seasoned and successful professionals. And while I”m not a millionaire yet, or have enjoyed the same level of success as many of the bloggers I read, I do have value to offer readers. I’m a young entrepreneur, who has experienced a great deal in a short amount of time. I still have a lot to learn, but I’ve learned a great deal as well. I’d like to pass this knowledge down to other young professionals through this blog. Therefore I will continue to voice my opinion on various topics, share my experiences, and give advice where I think I’m capable. I know that some have found my posts to be helpful, and I hope to impact others in the future.

I’m attaching a photo of my current traffic statistics to publicly share where my 2012 traffic starting point is. This blog used to have nearly 1,000 unique visitors in its heyday (2007). My traffic died when I went off and blogged elsewhere. I’ve been trying to find my new, targeted voice to increase my traffic again. I feel like I’m pretty close right now and am going to look to boost my traffic this year. I’d like to get over 2,000 unique visitors a month by the end of the year.

If you’re reading this, please feel free to comment and ask questions. I love online conversations and would like to foster a community here that is beneficial for everyone. I don’t know everything, and I’m guessing you don’t either. So, let’s please be active and learn together.

As Bob Dylan so famously put it, “The times, they are a changing.”  There are no truer words when it comes to high technology.  Companies, technologies, and trends often die before many even know they existed.  Very few people actually know what the next “big thing” will be. I am no different than any other layman prognosticator, but that isn’t stopping me from looking into my own crystal ball. Here are my four technology trends to watch in 2012.

 Hyper-Local Mobile

We’re just scratching the surface with hyper-local mobile advertising. No one has cracked this complex nut, so there is still a great deal of opportunity out there in this market. Continued market penetration of smartphones means a broader pool of user demographics to target. Entrepreneurs, marketers and advertisers will focus more time on finding the right solution to leverage these users for better advertising and small business leads. Simply creating an app and throwing targeted ads is not enough. Nor is daily deals, there is too much merchant fatigue. Finding a compelling value proposition for users, developers, small businesses, and brands in unison is not an easy feat and will continue to be a problem many entrepreneurs are going to attack in 2012.

 Tablet Commerce

An all out war is going on in the emerging tablet industry. Thus far, Apple is dominating the game, but just like smartphones, companies are slowly catching up. With more lower cost options, tablets continue to gain momentum. Now marketers, advertisers, and brands have to figure out how to maximize the effectiveness of tablets. We saw this past Thanksgiving that “Couch Commerce” is taking off and the increased use and trust in tablets is a major reason for that Thanksgiving day spike in sales. How will tablets affect mobile budget allocation and creative campaigns for brands and advertisers? My guess is that we’re going to see more dollars and more creative campaigns engaging users and compelling them to make spontaneous purchases directly from their couch.

Social TV

How we watch TV and online video content is going to drastically change in the near future. Humans are social creatures, but most television is an isolating event for individuals. We just sit in front of the TV, flip channels, and find a show in the silence of our individual living rooms. In the past year, I noticed on my Twitter feed that many followers would actively tweet about television in real time. Men commented on sports, while women tweeted about their favorite dramas and comedies. It was apparent that people wanted to be more social with television, all in the comfort of their own home. As new startups emerge in this field and strike more partnerships with content providers, we’re going to see an influx in social television. Once major networks find an amenable economic agreement, we’re going to see a great deal more programming available for social consumption.

Sound

Sound might be my most underestimated technology trend for 2012. Sound and audio has been around on the internet for years, which may cause some to pause at its 2012 potential. But there are a few factors that make sound a compelling case. SoundCloud CEO Alexander Ljung recently spoke at LeWeb and made several strong points for sound’s future. First, the ability to record and upload sound is easier than ever. Everyone with a smartphone has an audio recorder in their pocket at all times and companies like SoundCloud make it easy to upload to the web. It’s reminiscent of what YouTube did for video. Secondly, sound can be consumed simultaneously with other tasks.  Unlike with video and driving, you can listen to music or a podcast while driving your car. This allows for a greater opportunity to consume sound. The third, and possibly most important point is that sound elicits emotion. Emotion is sticky and more entrepreneurs are always looking to create an emotional connection with their product. Keep an eye out for SoundCloud and their work in sound.

*I should note that I’m super excited for wearable computing, but I don’t think 2012 is the year where it makes a significant leap.

These are my four technology trends to look out for in 2012. I could be right, or we could have another “Ning is going to be the next big social network” prediction on our hands again

I download a lot of apps on my iPhone. I download them for various reasons. Some because they’re the hot app, others on the recommendation of friends, and others I just like to study the UX/UI. I have hundreds of apps on my phone but I only use a handful of them on a daily basis. So what apps do I open on a daily basis and why?

[All links are to iTunes because I'm a die hard Apple fan boy. Sorry Android fans]

Multiple Opens “Just Because”

These apps are the social apps that I’ll open just because.

Facebook – It’s the stable social media site. Whenever I get an email notification, I have to check the app. I probably open it 3 times a day.

Twitter- My primary mobile use of Twitter is like an RSS feed. I use it to find content on the run and kill a quick 10 minutes. Sometimes I’ll tweet out an “OH” (overheard) but that’s about it (I’m more engaging on the web version). I’d estimate I open the app 2-3 times a day.

Instagram – I have fallen in love with Instagram. Uploading photos to the app is fun, but I’ve only uploaded 68 photos. I really just like to look at other people’s photos. It’s that simple. I open the app probably 3-4 times a day to see what’s new.

Foursquare - I’ve fallen into the “check-in” trap. I check in when I go to various places. While I only check in every few days, I open this app up 2-3 times a day to see what places my friends are going to.

Quora – Ever since this startup developed their mobile app my Quora usage has increased 100 fold. I rarely used their site unless I had a specific question. Now, I’ll open their app twice a day while laying in bed just to read what questions are popping up in my feed. I get lost in the web of random questions, sometimes related to my field, others that are just fascinating.

Pinterest – This network is primarily geared toward women. It’s one of the hottest startups around right now. I checked it out for a client, but it’s rather addicting. I prefer it to Tumblr because the discovery of content from people not in your network is much easier. That’s why I can get lost in the photos of fancy kitchens, dream homes, suave outfits, and funny memes. I open the app daily, but for longer periods than other social networks.

Path –  Ever since Path relaunched with a new UX/UI, I started using it again. I was dubious, but I’m actually enjoying it very much. The new UX brought me in, but the desire to share and be social with a very small, select group of friends has hooked me. Even with my new found enthusiasm for Path, I still only use it 1-2 times a day. I still need more connections to make me really want to use it.

High Utility Apps

I open these apps on a near daily basis because they serve a specific function in my life.

Yelp – Whenever I need to find where a local business is, get directions, or get the phone number, I open Yelp. I probably use Yelp 4-6 times a week.

Shazam – Ok, I don’t use Shazam daily, but I love it. I’m terrible at identifying songs so this is perfect. Often times I’ll buy the song after I identify it, good thing I only use this 2-3 times a month.

Bloomberg – I try to stay on top of the financial markets. Not a better app out there for this task. I’m still new to checking stocks, so I only open it about 2-3 times a week.

Stupid Fun (These often change)

I love to waste time on these apps. They’re easy, entertaining, and challenging. These are my current favorites.

6 Towers – The goal is to stack six towers in numerical order. Easier said than done. I’m down to 2-3 opens a week, due to my increased use of Heads Up w/ Cristiano Ronaldo.

Heads Up w/ Cristiano Ronaldo – A simple game that requires you to toss colored soccer balls in the air. Your balls clear when you connect three. I open this 2-4 times a day.

We’re nearing the end of 2011, which means there are going to be a plethora of resolutions for next year. Aside from the old standby, losing weight, I only have one resolution for 2012. I resolve not to waste my time on the opinions of alleged expert pundits, in any field.

I flew home to Wisconsin on Virgin America. Due to Virgin America’s fine amenities, I had access to cable for the first time in months (I don’t own a TV). As I was watching ESPN’s Monday coverage of the NFL, it dawned on how ridiculous all of the pundits were. They were not persuasive. Their arguments were not backed by the faintest of fact and wasted time arguing over minor semantics. It wasn’t just one “expert” but every single segment (I think I watched four). Tired of this, I flipped the channel to a news station (I think it was MSNBC). Different stories, same stupid shit. Talking heads with great teeth and half a brain. But it doesn’t just happen on TV.

I sat there on the plane, disenchanted with myself for wasting an hour on low level journalism. But as I further contemplated the runaround I just watched, I realized, my beloved Internet proliferates the same type of behavior. With the advent of 24/7 news, everyone is looking to “fill the air” and monetize their “quality content”. The result is a million different people commenting on the same three things on the same story. In the end, it turns into a huge time suck for anyone paying attention.

Recently, I’ve begun to stop reading the major, staple blogs in technology and social media. I’ve found that their posts are filled with unsubstantiated opinion pieces and  fluffy, linked baited articles. The actual content in the articles is like light beer…it’s shit. I used to read these blogs because I felt that I needed to be “in the know” and these were my best sources. Nope. They’re a waste of my time and more often than not, I finish the piece feeling unsatisfied and cheated. That is why I’m minimizing as much as possible, my consumption of expert pundits’ content.

I’ve found that the best information that I read is on personal blogs. Sometimes they’re written by actual experts (i.e. Fred Wilson of Union Square Ventures) and other times they’re a random blog that got a spike in traffic from Hacker News (my main source for tech related news). The bottom line is, I need to cut out the superficial news that bogs down my days. The most successful people I know read only a handful of blogs daily (if that many) and are not focused on the PR/gossip of others. They’re more focused on the pursuit of building a great company. Therefore, as I take another giant step forward professionally in 2012, I will not slow down progress with the consumption of bad content.