Friday, December 29, 2006

What's In A Name?

Currently working on a businessplan for our venture and at the point where we need to come up with a name. The venture is focused on Africa. I look at some of the big names out of China. Many have indigenous names. There's Xunlei("Thunder), Baidu(Poetic Chinese Name), Sogou(search dog), and countless others. I can't say that approach was helpful to Chinese networking giant, Huawei in the US market. Perhaps that had to do more with the maturity of the market. The company has been very successful in frontier markets like Africa(especially selling equipment on credit and at much lower costs). I definitely have a preference for an indigenous name. One that has meaning.

The question is do you gain more loyalty from the target market with a local name? What happens when you are dealing with a discontiguos market like Africa with different languages in different markets. Do you lose customers when you use a name from one part of the continent?

Of course a name is only a small part of the equation. It's a nice touch. Once we get this out of the way need to get back to the numbers. The numbers for the business don't look so great. Not going to get me to my first billion(a million is no longer what it used to be) anytime soon.

Wednesday, December 13, 2006

Nothing to lose - Outsiders more likely to start businesses

Knowledge at Wharton writes:

According to Sam Hamadeh, founder and chief executive of Vault.com, a New York publisher of job information, being an outsider increases the likelihood that someone will want to start his own venture. "The more you are part of the establishment, the more you are giving up to start a business," he said. "Minorities, immigrants, gays and lesbians are all more likely to start businesses than other people."........

Tell me about it. In many cases outsiders are left with no choice!

It's definitely exciting starting a business. Some will say its in the blood. I think everyone has a yearning for a life of entrepreneurship. Some just want it more. What keeps us all from going around starting businesses will nilly are all those golden handcuffs. In some places like Europe its actually society that discourages entrepreneurship. You'd better succeed first time around.

The funny thing is that insiders with the most to lose probably have the best chance at success. They have the money, the connections, and the credibility. Equally important they can always get a job. The reality however is that this group has more trepidation about starting a business. The fear of failure is so great. In many cases for outsiders who have embarked on this entrepreneurial journey there is no going back.

Tuesday, December 12, 2006

What is your core business?

I came across this interesting Microsoft interview in Businessweek. In case you have forgotten Microsoft's core business is software. Knowing your core business gives you clarity and a sense of purpose. It definitely simplifies your decision making when you're trying to start a new business or enter a new industry.

I applied this thinking in a meeting I had with my potential startup partners. It became very clear that the technology we had been discussing was not essentially what we were about. Technology is constantly changing but our vision will remain the same. Once we crystallized our vision, we all became completely focused on how we went about actualizing that vision.

Friday, December 08, 2006

Blood Diamond - An African's Perspective

This was a very, very good movie. It was brilliant. I thoroughly enjoyed it. The film makers showed a deep understanding of Africa and its history.
You also got to see the situation from everyone's point of view. The good and bad guys are all human. The acting was great. Di Caprio was convincing as a Zimbabwean mercenary. Djimon Hounsou put in an Oscar worthy performance. He exuded strength and dignity in every scene.

I salute Di Caprio. He didn't have to do this movie but you can tell he committed to it with all his heart. Many who complained about his accent in the movie trailers probably have never heard a South African accent before. It definitely worked in the movie.

I assure you a diamond will never look the same to you again. I have said enough. Time to get back to doing some company building.

Thursday, November 30, 2006

Web 2.0 Ideas for Africa - What's Working

Africa focused entrepreneurs out there equally struggling like me to find the next big idea might want to check Alexa.com's regional stats on Africa. Alexa.com is a site that tracks websites globally. The popular websites highlighted across Africa can give you some insight on what internet websites are widely accessed and gaining traction in Africa. Information, entertainment, jobs, finance, and dating sites appear to be quite popular now. You may have to apply some creativity to figure out what's ahead of the curve.

Note: Africa is not one country. It's definitely interesting to dig deeper on the Alexa site to explore trends across North, South, West and East Africa. You can observe how what's popular in North Africa completely differs from the rest of Africa. The most visited sites in North Africa appear to be similar to heavily trafficked sites across the Middle East. South Africa has the majority of the top websites across Africa.

Upside of Investing In Africa

Knowledge At Wharton reviews a presentation made by one of Africa's most influential leaders, Mamphela Ramphele at the recent 14th Wharton Africa Business Forum. Ramphele is Chairperson of South African Private Equity Firm, Circle Capital Ventures.

Interesting stats and perspective on growth in the region. Conditions are not yet ideal for entrepreneurs but things are definitely looking better.

Wednesday, November 29, 2006

Original Signal - Single Page Aggregator

Check out Original Signal it's made life easier for me by helping to manage information overload. It's not the only site out there doing this but its the one I use. Well so what's this got to do with entrepreneurship and Africa. For one it can save you time as you research your next business idea. Africa? It's got nothing to do with Africa. Much like everything else out there. Will try and get back on point next post.


Technorati Profile

Saturday, November 25, 2006

Burn The Boats!

Burn the boats - the often quoted words of Spanish conquistador Hernán Cortéz. Some say he never said the words. Anyway I’m no historian but you get the point. Hedged bets are the bane of any entrepreneur.

You have to commit 110%. No parachute, No back up plan. The MBA in me says do not take foolish risks. Take calculated risks. Any business journal or “beer parlor” analyst will tell you that. The problem is that conditions are never perfect. You can end up overanalyzing any business idea.

I’m not advocating staying on a narrow unyielding course. You have to be flexible. What you cannot do, is not take any action.

I am at that point right now where I am willing to get on a boat to find Aztec gold. When I get there I am more than willing to burn the boat. The problem I’m having today is that I don’t for the love of God know where to direct my boat. Where is Aztec country? Would I even know if and when I stumble on the big idea? Does it have to be a big idea? Should I just get off my soccer watching ass and go do something.

I’ve been thinking about all sorts of cockamamie ideas. Nothing I’m passionate about. Most of the ideas have been overdone. I also wonder if my partners are willing to burn their boats. There's a lot of talk about seeing how the potential venture pans out over the next 6-9 months before we commit fully. I don’t know about that approach. That sounds very much liking hedging to me. Many would say just common sense….

Friday, November 24, 2006

Freedom for all ...Entrepreneurs

The New York Times has an interesting article on the efforts of entrepreneurs to regain control of their companies from VC's:

EVAN WILLIAMS recently bought his freedom. It cost him a bit more than $2 million, and he says it was worth every penny.
I’m not talking about paying off a big debt to one of Tony Soprano’s loan-shark underlings. Mr. Williams is a serial entrepreneur, one of those Silicon Valley characters who start company after company. And he purchased his freedom from the venture capitalists and others who financed his company, Odeo. Mr. Williams dug into his pockets and gave them back their money. He got to keep his struggling podcast company and renamed it the Obvious Corporation...

Tuesday, November 21, 2006

Africa threatens Asia's lead in WAP usage

Gammalife provides interesting insight on the growth of WAP usage across Africa. This trend could open up a multitude of opportunities for Africa inclined Web 2.0 entrepreneurs.

Monday, November 20, 2006

It's a niche Business

The last couple of weeks have been quite eventful. I've been working on a business idea with a couple of friends. So far it is becoming quite apparent that there is a lot of competition in the space we are looking at. We knew the technology was not unique but thought our target market was not currently being addressed. That's not the case. It's not only a niche opportunity but a competitive one at that.

I'll definitely like to continue working with this current team to come up with the next big thing. It's a team ready and able to execute. However, we have to do more to expand our thinking. Our current approach has been incremental at best. We'll continue researching the target market there may still be a unique service to provide.

Thursday, November 09, 2006

Entrepreneurs To Watch - Fuelture

Fuelture was founded in 2004 by Gbenga Kogbe, an alternative fuel expert and LPG enthusiast who has worked in engineering, finance and strategy roles for Shell (UK) and Amerada Hess Corporation (US).

Fuelture is registered as a Scottish Limited Company with its head office in Glasgow. We work closely with Nicholson McLaren Engines to provide the best technical know-how and highest quality of LPG conversions in the UK. Nicholson McLaren Engines provide the LPG vehicle technology that is installed in new and used vehicles converted through Fuelture. This is the same technology used by major manufacturers around the world.

Awards

Fuelture was awarded one of the top prizes at the 2005 Global Social Venture Competition held in Berkeley, California...

Great idea. Timing couldn't be better!

On the road to Timbuktu, El Dorado, and Anywhere but Here.

I have had a number of conversations with a few friends to discuss entrepreneurial ideas. Suffice to say the Ideas I began with are totally different from the business idea currently under consideration. MBA types are definitely more interested in discussing startup opportunities. A couple of years ago most of the focus was on getting the best paying gig. We are currently working on technical details. The business model is still up in the air. We either get to market quickly with a simple commodity play or build a possibly complex robust service on top of the low cost commodity service.

I like the energy level of my potential partners. Definitely very smart. However, still a lot of loose ends with the relationship. As they say we have to define the rules of engagement. From my prior experiences, it is very important that roles and contributions are clarified early on. No one wants to broach that topic right now, given that the business is still being defined. At some point soon we will have to discuss the responsibilities and level of commitment of each partner.

Either way glad to find like minded folks willing to build a global business.

Tuesday, November 07, 2006

Entrepreneurs To Watch - Nervana

Nervana is dedicated to the innovation of leading knowledge discovery technologies that enable knowledge based workers to more efficiently find, correlate and retrieve the information from vast repositories both inside and outside their enterprise. The industry leading Nervana Discovery Solution is an intelligent knowledge discovery technology that understands and efficiently translates the true semantic meaning of the inquiry, enabling direct access to meaningful data....

Saturday, November 04, 2006

Selfless Entrepreneurs - The Positive Connection

The Economist writes: HIV sufferers find love online


DATING in South Africa has taken a more positive slant. For the past few years, people have been able to hook up through the Positive Connection, a website offering dating services for HIV sufferers. The service is the brainchild of Ben Sassman, a salesman living in Johannesburg. A few years ago, two of his friends told him they were HIV positive and that they had trouble dating. When they revealed their status, women invariably fled. Mr Sassman suggested online dating, but realised that existing services do not help those with HIV. So he launched www.thepositiveconnection.co.za in 2003....

I stumbled upon this article while researching the cross border mobile dating opportunity. The Postive Connection dating service deserves to be celebrated. It is a commmendable effort. I hope Mr Sassman is able to get additional funding to support and expand the service.

Friday, November 03, 2006

Entrepreneurs To Watch - Centrro

I will be profiling different entrepreneurs in the course of my journey. Many I encountered somewhere along the way, most will have a connection to Africa.

Centrro is a vertical search engine designed to help consumers find personal financial products that best fit their unique needs. Our transparent marketplace allows consumers to anonymously shop for products that fit their specific credit profile, before ever applying. This means consumers get exactly what they want and lenders get higher approval rates from their applicants...

Here is a product I wish I had access to when I first came to the US with no credit history!

Monday, October 30, 2006

The Not So New Idea

So what's the idea I am currently working on? It's a mobile dating service focused on connecting Africans locally and abroad. Nothing unique in the service in fact there are currently sms based services in Kenya and South Africa. However, there is an opportunity to take it to the next level.

I also believe there is a need being addressed here. I have a close African family friend in the US who is well educated and can't find a US mate. She is willing to date one of the many well educated African brothers back home. There just hasn't been an easy to use service that provides the filtering and recommendation features required. She is only looking to connect with someone with a similar social background who comes recommended. She is basically looking for a husband and would be willing to pay to connect to one. Anecdotal evidence in India suggests that people are willing to pay more to find love than for any other mobile service. There are questions however, about the size of the opportunity. Even if we amass an extensive user base in Africa, the spending power doesn't compare to that of US consumers.

I have a meeting later on this week with someone who has shown an interest in the idea. The only issue maybe that we have similar business backgrounds. We need that tech guru. So I am also looking for someone in the US/India with mobile application development experience to join the team as the subject matter expert. Since the idea is not unique, execution is everything. I am willing to make the commitment and take on the responsibility as well as risk. I believe very much in open collaboration so welcome tips on how to make this a reality.

Sunday, October 29, 2006

Thorn Birds Exist

The Thorn Bird: There is a legend about a bird which sings just once in its life, more sweetly than any other creature on the face of the earth. From the moment it leaves the nest it searches for a thorn tree, and does not rest until it has found one. Then, singing among the savage branches, it impales itself upon the longest, sharpest spine. And, dying, it rises above its own agony to out-carol the lark and the nightingale. One superlative song, existence the price. But the whole world stills to listen, and God in His heaven smiles. For the best is only bought at the cost of great pain.... Or so says the legend.

Source: THE THORN BIRDS. Colleen McCullough. Great Britain. 1980.

I was driving today and thinking to myself why do I want to start another business again? Am I a Thorn Bird? Do I just enjoy pain? I know there is joy and fulfilment in starting a business but there's also a whole lot of pain. Moreso for those around you. I still regret the personal cost of my first venture. My mom is no longer here and during that time I could have spent so much more time with her. Today it's time away from my wife and kids that I have to be worried about. I also have a fairly stable gig. Some would say isn't that enough. Why risk it all.

Only time will tell if I'm a Thorn Bird but I'm drawn inexplicably to the thorn tree in the name of building a global business and making a difference.

Saturday, October 28, 2006

The What, The Where, and The How

I ask my self, What exactly is the business I want to go into? The ideas I have to date can be found easily on a Google search. I know in many cases it's who gets to market first with a solution, that is then adopted, that wins. So that takes me to the Where question. If It's the African market then the odds are better that I can be one of the few in the market. I generalize though as Africa is a large discontiguos market. In that case I'm left with the How question. In an early conversation with a software guru friend, it is obvious that any of the solutions I am considering can be easily built with a "little money". I figure this is a cheaper option than offering founders equity to bring on board a tech guru. I don't mind having partners but no one is really jumping at the idea of a business focused on Africa at this point.

Back to the Where question. Even if the business is focused on Africa it has to be based in the US. It will be easier from a legal and contract enforcement perspective. I don't think it makes a difference from a fundraising perspective. If i'm going to get any funding it'll be from African investors. No matter the experience of the team, robustness of the idea, or validation of customer demand, US VCs are not interested. I once spoke with a Partner at a VC firm in California who said "VCs in California are not keen on taking flights to the East Coast to monitor investments talk less of investing in Emerging Markets". Of course this was 3 years ago before the major emerging markets became cool again. I have to say Africa is considered more of a frontier market. I digress.

I've got to get back to figuring out what it'll take to execute on the idea. Whichever one it is.

Catching Big Fish

HBS Working Knowledge writes on China's New Entrepreneurs: There is a saying in Chinese: "You can catch big fish in murky water." That means that the big fish are hiding when the water is clear, or they have already been eaten. Translation: There are big opportunities in times of change, chaos, ambiguity, adversity, and unclarity...

Thursday, October 26, 2006

Africa's Band of Angels

At some point for early stage technology firms to blossom in Africa, Angel investors have to get into the game. By Angel investors I don't mean your uncle the "Government Contractor". The one who wants an immediate return on his investment. I assure you uncle will not understand that you had a bad quarter. The Angel investors I am talking about are sophisticated investors that have an interest in building entrepreneurial companies that can take on the world.

Today these potential african entrepreneurs/investors are to be found in the US and Europe. India has made the transition. There is an interesting article in GigaOm on the emergence of India's Band of Angels.

GigaOM writes:

After the dot-com bust and IT slowdown nearly crushed the startup he co-founded, entrepreneur Alok Mittal realized India’s business environment had a major shortcoming. There was no money for early stage companies. He survived–selling the startup he co-founded, jobsahead.com2, to Monster.com3 for $9 million in 2004—but his five-year roller coaster ride gave him another idea.

With even venture capitalists looking to invest as much as $1 million-$3 million, Indian entrepreneurs badly needed angel investors willing to commit smaller amounts in, and more importantly, provide guidance to, very early stage, pre-revenue companies...

Wednesday, October 25, 2006

Dating Reinvented

I saw this article on TechCrunch about YesNoMayB.com, a South African based dating site. Great to see this kind of innovation coming out of Africa. The business model is also interesting. I've been "thinking" a lot about developing a mobile content business targeting Africa. The question has been how do you monetize the business or get a decent valuation. Africa is not China or India. So the VCs are not falling over themselves to invest in African businesses. That may change someday but I'm not holding my breath.

Kudos to YesNoMayB.com.

Saturday, October 21, 2006

Juicy Toads

There's an old African Proverb that says if you must eat a toad, eat a fat and juicy toad. My take on this is that there is no point in doing things in small measures. I for one have always wanted to make a difference. My thoughts, focus, passion are all geared towards developing and building a global business. However, my reality couldn't be more different. I am currently deep in the quagmire that is middle management. I don't want to be on the bench. I want to play in the game. I see so many talented managers here forced to wait in line for a turn that may never come.

Time to go back to Africa. I'm definitely passionate about taking the entrepreneurial path. What I am lacking is the super talented programmer to build a niche technology solution. I can do the product mgmt, sales/marketing, and strategy. I worked on 2 entrepreneurial ventures in the past. 1 in Africa and 1 in the US. The US venture was easy to setup but very hard to get funding. The African venture was more difficult to setup but was ultimately successful. Of course not on the scale of a US startup. What i found was that in Africa I had the support of friends and family. This allowed the business to stay afloat while my partner and I figured out the model. In the US I didn't have that luxury.

I'm not going to spend much time dwelling on my last 2 ventures. Right now i'm looking to build a team that can execute on my next venture. My interest is in emerging market opportunities particularly in Africa. A lot of folks in the diaspora talk a lot about doing something back home but most times talk is all it is. So i'm giving myself the next 9mths to get a venture off the ground. The clock is ticking!