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Tim Soulo

Tim Soulo

3 years ago

Here is why 90.63% of Pages Get No Traffic From Google. 

More on Technology

Thomas Smith

2 years ago

ChatGPT Is Experiencing a Lightbulb Moment

Why breakthrough technologies must be accessible

ChatGPT has exploded. Over 1 million people have used the app, and coding sites like Stack Overflow have banned its answers. It's huge.

I wouldn't have called that as an AI researcher. ChatGPT uses the same GPT-3 technology that's been around for over two years.

More than impressive technology, ChatGPT 3 shows how access makes breakthroughs usable. OpenAI has finally made people realize the power of AI by packaging GPT-3 for normal users.

We think of Thomas Edison as the inventor of the lightbulb, not because he invented it, but because he popularized it.

Going forward, AI companies that make using AI easy will thrive.

Use-case importance

Most modern AI systems use massive language models. These language models are trained on 6,000+ years of human text.

GPT-3 ate 8 billion pages, almost every book, and Wikipedia. It created an AI that can write sea shanties and solve coding problems.

Nothing new. I began beta testing GPT-3 in 2020, but the system's basics date back further.

Tools like GPT-3 are hidden in many apps. Many of the AI writing assistants on this platform are just wrappers around GPT-3.

Lots of online utilitarian text, like restaurant menu summaries or city guides, is written by AI systems like GPT-3. You've probably read GPT-3 without knowing it.

Accessibility

Why is ChatGPT so popular if the technology is old?

ChatGPT makes the technology accessible. Free to use, people can sign up and text with the chatbot daily. ChatGPT isn't revolutionary. It does it in a way normal people can access and be amazed by.

Accessibility isn't easy. OpenAI's Sam Altman tweeted that opening ChatGPT to the public increased computing costs.

Each chat costs "low-digit cents" to process. OpenAI probably spends several hundred thousand dollars a day to keep ChatGPT running, with no immediate business case.

Academic researchers and others who developed GPT-3 couldn't afford it. Without resources to make technology accessible, it can't be used.

Retrospective

This dynamic is old. In the history of science, a researcher with a breakthrough idea was often overshadowed by an entrepreneur or visionary who made it accessible to the public.

We think of Thomas Edison as the inventor of the lightbulb. But really, Vasilij Petrov, Thomas Wright, and Joseph Swan invented the lightbulb. Edison made technology visible and accessible by electrifying public buildings, building power plants, and wiring.

Edison probably lost a ton of money on stunts like building a power plant to light JP Morgan's home, the NYSE, and several newspaper headquarters.

People wanted electric lights once they saw their benefits. By making the technology accessible and visible, Edison unlocked a hugely profitable market.

Similar things are happening in AI. ChatGPT shows that developing breakthrough technology in the lab or on B2B servers won't change the culture.

AI must engage people's imaginations to become mainstream. Before the tech impacts the world, people must play with it and see its revolutionary power.

As the field evolves, companies that make the technology widely available, even at great cost, will succeed.

OpenAI's compute fees are eye-watering. Revolutions are costly.

caroline sinders

caroline sinders

3 years ago

Holographic concerts are the AI of the Future.

the Uncanny Valley of ABBA Voyage

A few days ago, I was discussing dall-e with two art and tech pals. One artist acquaintance said she knew a frightened illustrator. Would the ability to create anything with a click derail her career? The artist feared this. My curator friend smiled and said this has always been a dread among artists. When the camera was invented, didn't painters say this? Even in the Instagram era, painting exists.

When art and technology collide, there's room for innovation, experimentation, and fear — especially if the technology replicates or replaces art making. What is art's future with dall-e? How does technology affect music, beyond visual art? Recently, I saw "ABBA Voyage," a holographic ABBA concert in London.

"Abba voyage?" my phone asked in early March. A Gen X friend I met through a fashion blogging ring texted me.

"What's abba Voyage?" I asked while opening my front door with keys and coffee.

We're going! Marti, visiting London, took me to a show.

"Absolutely no ABBA songs here." I responded.

My parents didn't play ABBA much, so I don't know much about them. Dad liked Jimi Hendrix, Cream, Deep Purple, and New Orleans jazz. Marti told me ABBA Voyage was a holographic ABBA show with a live band.

The show was fun, extraordinary fun. Nearly everyone on the dance floor wore wigs, ankle-breaking platforms, sequins, and bellbottoms. I saw some millennials and Zoomers among the boomers.

I was intoxicated by the experience.

Automatons date back to the 18th-century mechanical turk. The mechanical turk was a chess automaton operated by a person. The mechanical turk seemed to perform like a human without human intervention, but it required a human in the loop to work properly.

Humans have used non-humans in entertainment for centuries, such as puppets, shadow play, and smoke and mirrors. A show can have animatronic, technological, and non-technological elements, and a live show can blur real and illusion. From medieval puppet shows to mechanical turks to AI filters, bots, and holograms, entertainment has evolved over time.

I'm not a hologram skeptic, but I'm skeptical of technology, especially since I work with it. I love live performances, I love hearing singers breathe, forget lines, and make jokes. Live shows are my favorite because I love watching performers make mistakes or interact with the audience. ABBA Voyage was different.

Marti and I traveled to Manchester after ABBA Voyage to see Liam Gallagher. Similar but different vibe. Similar in that thousands dressed up for the show. ABBA's energy was dizzying. 90s chic replaced sequins in the crowd. Doc Martens, nylon jackets, bucket hats, shaggy hair. The Charlatans and Liam Gallagher opened and closed, respectively. Fireworks. Incredible. People went crazy. Yelling exhausted my voice.

This week in music featured AI-enabled holograms and a decades-old rocker. Both are warm and gooey in our memories.

After seeing both, I'm wondering if we need AI hologram shows. Why? Is it good?

Like everything tech-related, my answer is "maybe." Because context and performance matter. Liam Gallagher and ABBA both had great, different shows.

For a hologram to work, it must be impossible and big. It must be big, showy, and improbable to justify a hologram. It must feel...expensive, like a stadium pop show. According to a quick search, ABBA broke up on bad terms. Reuniting is unlikely. This is also why Prince or Tupac hologram shows work. We can only engage with their legacy through covers or...holograms.

I drove around listening to the radio a few weeks ago. "Dreaming of You" by Selena played. Selena's music defined my childhood. I sang along and turned up the volume (or as loud as my husband would allow me while driving on the highway).

I discovered Selena's music six months after her death, so I never saw her perform live. My babysitter Melissa played me her album after I moved to Houston. Melissa took me to see the Selena movie five times when it came out. I quickly wore out my VHS copy. I constantly sang "Bibi Bibi Bom Bom" and "Como la Flor." I love Selena. A Selena hologram? Yes, probably.

Instagram advertised a cellist's Arthur Russell tribute show. Russell is another deceased artist I love. I almost walked down the aisle to "This is How We Walk on the Moon," but our cellist couldn't find it. Instead, I walked to Magnetic Fields' "The Book of Love." I "discovered" Russell after a friend introduced me to his music a few years ago.

I use these as analogies for the Liam Gallagher and ABBA concerts.

You have no idea how much I'd pay to see a hologram of Selena's 1995 Houston Livestock Show and Rodeo concert. Arthur Russell's hologram is unnecessary. Russell's work was intimate and performance-based. We can't separate his life from his legacy; popular audiences overlooked his genius. He died of AIDS broke. Like Selena, he died prematurely. Given his music and history, another performer would be a better choice than a hologram. He's no Selena. Selena could have rivaled Beyonce.

Pop shows' size works for holograms. Along with ABBA holograms, there was an anime movie and a light show that would put Tron to shame. ABBA created a tourable stadium show. The event was lavish, expensive, and well-planned. Pop, unlike rock, isn't gritty. Liam Gallagher hologram? No longer impossible, it wouldn't work. He's touring. I'm not sure if a rockstar alone should be rendered as a hologram; it was the show that made ABBA a hologram.

Holograms, like AI, are part of the future of entertainment, but not all of it. Because only modern interpretations of Arthur Russell's work reveal his legacy. That's his legacy.

the ABBA holograms onstage, performing

Large-scale arena performers may use holograms in the future, but the experience must be impossible. A teacher once said that the only way to convey emotion in opera is through song, and I feel the same way about holograms, AR, VR, and mixed reality. A story's impossibility must make sense, like in opera. Impossibility and bombastic performance must be present for an immersive element to "work." ABBA was an impossible and improbable experience, which made it magical. It helped the holographic show work.

Marti told me about ABBA Voyage. She said it was a great concert. Marti has worked in music since the 1990s. She's a music expert; she's seen many shows.

Ai isn't a god or sentient, and the ABBA holograms aren't real. The renderings were glassy-eyed, flat, and robotic, like the Polar Express or the Jaws shark. Even today, the uncanny valley is insurmountable. We know it's not real because it's not about reality. It was about a suspended moment and performance feelings.

I knew this was impossible, an 'unreal' experience, but the emotions I felt were real, like watching a movie or tv show. Perhaps this is one of the better uses of AI, like CGI and special effects, like the beauty of entertainment- we were enraptured and entertained for hours. I've been playing ABBA since then.

VIP Graphics

VIP Graphics

3 years ago

Leaked pitch deck for Metas' new influencer-focused live-streaming service

As part of Meta's endeavor to establish an interactive live-streaming platform, the company is testing with influencers.

The NPE (new product experimentation team) has been testing Super since late 2020.

Super by Meta leaked pitch deck: Facebook’s new livestreaming platform for influencers & sponsors

Bloomberg defined Super as a Cameo-inspired FaceTime-like gadget in 2020. The tool has evolved into a Twitch-like live streaming application.

Less than 100 creators have utilized Super: Creators can request access on Meta's website. Super isn't an Instagram, Facebook, or Meta extension.

“It’s a standalone project,” the spokesperson said about Super. “Right now, it’s web only. They have been testing it very quietly for about two years. The end goal [of NPE projects] is ultimately creating the next standalone project that could be part of the Meta family of products.” The spokesperson said the outreach this week was part of a drive to get more creators to test Super.

A 2021 pitch deck from Super reveals the inner workings of Meta.

The deck gathered feedback on possible sponsorship models, with mockups of brand deals & features. Meta reportedly paid creators $200 to $3,000 to test Super for 30 minutes.

Meta's pitch deck for Super live streaming was leaked.

What were the slides in the pitch deck for Metas Super?

Embed not supported: see full deck & article here →

View examples of Meta's pitch deck for Super:

Product Slides, first

Super by Meta leaked pitch deck — Product Slide: Facebook’s new livestreaming platform for influencers & sponsors

The pitch deck begins with Super's mission:

Super is a Facebook-incubated platform which helps content creators connect with their fans digitally, and for super fans to meet and support their favorite creators. In the spirit of Late Night talk shows, we feature creators (“Superstars”), who are guests at a live, hosted conversation moderated by a Host.

This slide (and most of the deck) is text-heavy, with few icons, bullets, and illustrations to break up the content. Super's online app status (which requires no download or installation) might be used as a callout (rather than paragraph-form).

Super by Meta leaked pitch deck — Product Slide: Facebook’s new livestreaming platform for influencers & sponsors

Meta's Super platform focuses on brand sponsorships and native placements, as shown in the slide above.

One of our theses is the idea that creators should benefit monetarily from their Super experiences, and we believe that offering a menu of different monetization strategies will enable the right experience for each creator. Our current focus is exploring sponsorship opportunities for creators, to better understand what types of sponsor placements will facilitate the best experience for all Super customers (viewers, creators, and advertisers).

Colorful mockups help bring Metas vision for Super to life.

2. Slide Features

Super's pitch deck focuses on the platform's features. The deck covers pre-show, pre-roll, and post-event for a Sponsored Experience.

  • Pre-show: active 30 minutes before the show's start

  • Pre-roll: Play a 15-minute commercial for the sponsor before the event (auto-plays once)

  • Meet and Greet: This event can have a branding, such as Meet & Greet presented by [Snickers]

  • Super Selfies: Makers and followers get a digital souvenir to post on social media.

  • Post-Event: Possibility to draw viewers' attention to sponsored content/links during the after-show

Almost every screen displays the Sponsor logo, link, and/or branded background. Viewers can watch sponsor video while waiting for the event to start.

Slide 3: Business Model

Meta's presentation for Super is incomplete without numbers. Super's first slide outlines the creator, sponsor, and Super's obligations. Super does not charge creators any fees or commissions on sponsorship earnings.

Super by Meta leaked pitch deck — Pricing Slide: Facebook’s new livestreaming platform for influencers & sponsors

How to make a great pitch deck

We hope you can use the Super pitch deck to improve your business. Bestpitchdeck.com/super-meta is a bookmarkable link.

You can also use one of our expert-designed templates to generate a pitch deck.

Our team has helped close $100M+ in agreements and funding for premier companies and VC firms. Use our presentation templates, one-pagers, or financial models to launch your pitch.

Every pitch must be audience-specific. Our team has prepared pitch decks for various sectors and fundraising phases.

Software Pitch Deck & SaaS Investor Presentation Template by VIP.graphics

Pitch Deck Software VIP.graphics produced a popular SaaS & Software Pitch Deck based on decks that closed millions in transactions & investments for orgs of all sizes, from high-growth startups to Fortune 100 enterprises. This easy-to-customize PowerPoint template includes ready-made features and key slides for your software firm.

Accelerator Pitch Deck The Accelerator Pitch Deck template is for early-stage founders seeking funding from pitch contests, accelerators, incubators, angels, or VC companies. Winning a pitch contest or getting into a top accelerator demands a strategic investor pitch.

Pitch Deck Template Series Startup and founder pitch deck template: Workable, smart slides. This pitch deck template is for companies, entrepreneurs, and founders raising seed or Series A finance.

M&A Pitch Deck Perfect Pitch Deck is a template for later-stage enterprises engaging more sophisticated conversations like M&A, late-stage investment (Series C+), or partnerships & funding. Our team prepared this presentation to help creators confidently pitch to investment banks, PE firms, and hedge funds (and vice versa).

Browse our growing variety of industry-specific pitch decks.

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Dr. Linda Dahl

Dr. Linda Dahl

3 years ago

We eat corn in almost everything. Is It Important?

Photo by Mockup Graphics on Unsplash

Corn Kid got viral on TikTok after being interviewed by Recess Therapy. Tariq, called the Corn Kid, ate a buttery ear of corn in the video. He's corn crazy. He thinks everyone just has to try it. It turns out, whether we know it or not, we already have.

Corn is a fruit, veggie, and grain. It's the second-most-grown crop. Corn makes up 36% of U.S. exports. In the U.S., it's easy to grow and provides high yields, as proven by the vast corn belt spanning the Midwest, Great Plains, and Texas panhandle. Since 1950, the corn crop has doubled to 10 billion bushels.

You say, "Fine." We shouldn't just grow because we can. Why so much corn? What's this corn for?

Why is practical and political. Michael Pollan's The Omnivore's Dilemma has the full narrative. Early 1970s food costs increased. Nixon subsidized maize to feed the public. Monsanto genetically engineered corn seeds to make them hardier, and soon there was plenty of corn. Everyone ate. Woot! Too much corn followed. The powers-that-be had to decide what to do with leftover corn-on-the-cob.

They are fortunate that corn has a wide range of uses.

First, the edible variants. I divide corn into obvious and stealth.

Obvious corn includes popcorn, canned corn, and corn on the cob. This form isn't always digested and often comes out as entire, polka-dotting poop. Cornmeal can be ground to make cornbread, polenta, and corn tortillas. Corn provides antioxidants, minerals, and vitamins in moderation. Most synthetic Vitamin C comes from GMO maize.

Corn oil, corn starch, dextrose (a sugar), and high-fructose corn syrup are often overlooked. They're stealth corn because they sneak into practically everything. Corn oil is used for frying, baking, and in potato chips, mayonnaise, margarine, and salad dressing. Baby food, bread, cakes, antibiotics, canned vegetables, beverages, and even dairy and animal products include corn starch. Dextrose appears in almost all prepared foods, excluding those with high-fructose corn syrup. HFCS isn't as easily digested as sucrose (from cane sugar). It can also cause other ailments, which we'll discuss later.

Most foods contain corn. It's fed to almost all food animals. 96% of U.S. animal feed is corn. 39% of U.S. corn is fed to livestock. But animals prefer other foods. Omnivore chickens prefer insects, worms, grains, and grasses. Captive cows are fed a total mixed ration, which contains corn. These animals' products, like eggs and milk, are also corn-fed.

There are numerous non-edible by-products of corn that are employed in the production of items like:

  1. fuel-grade ethanol

  2. plastics

  3. batteries

  4. cosmetics

  5. meds/vitamins binder

  6. carpets, fabrics

  7. glutathione

  8. crayons

  9. Paint/glue

How does corn influence you? Consider quick food for dinner. You order a cheeseburger, fries, and big Coke at the counter (or drive-through in the suburbs). You tell yourself, "No corn." All that contains corn. Deconstruct:

Cows fed corn produce meat and cheese. Meat and cheese were bonded with corn syrup and starch (same). The bun (corn flour and dextrose) and fries were fried in maize oil. High fructose corn syrup sweetens the drink and helps make the cup and straw.

Just about everything contains corn. Then what? A cornspiracy, perhaps? Is eating too much maize an issue, or should we strive to stay away from it whenever possible?

As I've said, eating some maize can be healthy. 92% of U.S. corn is genetically modified, according to the Center for Food Safety. The adjustments are expected to boost corn yields. Some sweet corn is genetically modified to produce its own insecticide, a protein deadly to insects made by Bacillus thuringiensis. It's safe to eat in sweet corn. Concerns exist about feeding agricultural animals so much maize, modified or not.

High fructose corn syrup should be consumed in moderation. Fructose, a sugar, isn't easily metabolized. Fructose causes diabetes, fatty liver, obesity, and heart disease. It causes inflammation, which might aggravate gout. Candy, packaged sweets, soda, fast food, juice drinks, ice cream, ice cream topping syrups, sauces & condiments, jams, bread, crackers, and pancake syrup contain the most high fructose corn syrup. Everyday foods with little nutrients. Check labels and choose cane sugar or sucrose-sweetened goods. Or, eat corn like the Corn Kid.

Joseph Mavericks

Joseph Mavericks

3 years ago

5 books my CEO read to make $30M

Offices without books are like bodies without souls.

After 10 years, my CEO sold his company for $30 million. I've shared many of his lessons on medium. You could ask him anything at his always-open office. He also said we could use his office for meetings while he was away. When I used his office for work, I was always struck by how many books he had.

Books are useful in almost every aspect of learning. Building a business, improving family relationships, learning a new language, a new skill... Books teach, guide, and structure. Whether fiction or nonfiction, books inspire, give ideas, and develop critical thinking skills.

My CEO prefers non-fiction and attends a Friday book club. This article discusses 5 books I found in his office that impacted my life/business. My CEO sold his company for $30 million, but I've built a steady business through blogging and video making.

I recall events and lessons I learned from my CEO and how they relate to each book, and I explain how I applied the book's lessons to my business and life.

Note: This post has no affiliate links.

1. The One Thing — Gary Keller

Gary Keller, a real estate agent, wanted more customers. So he and his team brainstormed ways to get more customers. They decided to write a bestseller about work and productivity. The more people who saw the book, the more customers they'd get.

Gary Keller focused on writing the best book on productivity, work, and efficiency for months. His business experience. Keller's business grew after the book's release.

The author summarizes the book in one question.

"What's the one thing that will make everything else easier or unnecessary?"

When I started my blog and business alongside my 9–5, I quickly identified my one thing: writing. My business relied on it, so it had to be great. Without writing, there was no content, traffic, or business.

My CEO focused on funding when he started his business. Even in his final years, he spent a lot of time on the phone with investors, either to get more money or to explain what he was doing with it. My CEO's top concern was money, and the other super important factors were handled by separate teams.

  • Product tech and design

  • Incredible customer support team

  • Excellent promotion team

  • Profitable sales team

My CEO didn't always focus on one thing and ignore the rest. He was on all of those teams when I started my job. He'd start his day in tech, have lunch with marketing, and then work in sales. He was in his office on the phone at night.

He eventually realized his errors. Investors told him he couldn't do everything for the company. If needed, he had to change internally. He learned to let go, mind his own business, and focus for the next four years. Then he sold for $30 million.

The bigger your project/company/idea, the more you'll need to delegate to stay laser-focused. I started something new every few months for 10 years before realizing this. So much to do makes it easy to avoid progress. Once you identify the most important aspect of your project and enlist others' help, you'll be successful.

2. Eat That Frog — Brian Tracy

The author quote sums up book's essence:

Mark Twain said that if you eat a live frog in the morning, it's probably the worst thing that will happen to you all day. Your "frog" is the biggest, most important task you're most likely to procrastinate on.

"Frog" and "One Thing" are both about focusing on what's most important. Eat That Frog recommends doing the most important task first thing in the morning.

I shared my CEO's calendar in an article 10 months ago. Like this:

CEO's average week (some information crossed out for confidentiality)

Notice anything about 8am-8:45am? Almost every day is the same (except Friday). My CEO started his day with a management check-in for 2 reasons:

  • Checking in with all managers is cognitively demanding, and my CEO is a morning person.

  • In a young startup where everyone is busy, the morning management check-in was crucial. After 10 am, you couldn't gather all managers.

When I started my blog, writing was my passion. I'm a morning person, so I woke up at 6 am and started writing by 6:30 am every day for a year. This allowed me to publish 3 articles a week for 52 weeks to build my blog and audience. After 2 years, I'm not stopping.

3. Deep Work — Cal Newport

Deep work is focusing on a cognitively demanding task without distractions (like a morning management meeting). It helps you master complex information quickly and produce better results faster. In a competitive world 10 or 20 years ago, focus wasn't a huge advantage. Smartphones, emails, and social media made focus a rare, valuable skill.

Most people can't focus anymore. Screens light up, notifications buzz, emails arrive, Instagram feeds... Many people don't realize they're interrupted because it's become part of their normal workflow.

Cal Newport mentions Bill Gates' "Think Weeks" in Deep Work.

Microsoft CEO Bill Gates would isolate himself (often in a lakeside cottage) twice a year to read and think big thoughts.

Inside Bill's Brain on Netflix shows Newport's lakeside cottage. I've always wanted a lakeside cabin to work in. My CEO bought a lakehouse after selling his company, but now he's retired.

As a company grows, you can focus less on it. In a previous section, I said investors told my CEO to get back to basics and stop micromanaging. My CEO's commitment and ability to get work done helped save the company. His deep work and new frameworks helped us survive the corona crisis (more on this later).

The ability to deep work will be a huge competitive advantage in the next century. Those who learn to work deeply will likely be successful while everyone else is glued to their screens, Bluetooth-synced to their watches, and playing Candy Crush on their tablets.

4. The 7 Habits of Highly Effective People — Stephen R. Covey

It took me a while to start reading this book because it seemed like another shallow self-help bible. I kept finding this book when researching self-improvement. I tried it because it was everywhere.

Stephen Covey taught me 2 years ago to have a personal mission statement.

A 7 Habits mission statement describes the life you want to lead, the character traits you want to embody, and the impact you want to have on others. shortform.com

I've had many lunches with my CEO and talked about Vipassana meditation and Sunday forest runs, but I've never seen his mission statement. I'm sure his family is important, though. In the above calendar screenshot, you can see he always included family events (in green) so we could all see those time slots. We couldn't book him then. Although he never spent as much time with his family as he wanted, he always made sure to be on time for his kid's birthday rather than a conference call.

My CEO emphasized his company's mission. Your mission statement should answer 3 questions.

  • What does your company do?

  • How does it do it?

  • Why does your company do it?

As a graphic designer, I had to create mission-statement posters. My CEO hung posters in each office.

5. Measure What Matters — John Doerr

This book is about Andrew Grove's OKR strategy, developed in 1968. When he joined Google's early investors board, he introduced it to Larry Page and Sergey Brin. Google still uses OKR.

Objective Key Results

  • Objective: It explains your goals and desired outcome. When one goal is reached, another replaces it. OKR objectives aren't technical, measured, or numerical. They must be clear.

  • Key Result should be precise, technical, and measurable, unlike the Objective. It shows if the Goal is being worked on. Time-bound results are quarterly or yearly.

Our company almost sank several times. Sales goals were missed, management failed, and bad decisions were made. On a Monday, our CEO announced we'd implement OKR to revamp our processes.

This was a year before the pandemic, and I'm certain we wouldn't have sold millions or survived without this change. This book impacted the company the most, not just management but all levels. Organization and transparency improved. We reached realistic goals. Happy investors. We used the online tool Gtmhub to implement OKR across the organization.

My CEO's company went from near bankruptcy to being acquired for $30 million in 2 years after implementing OKR.


I hope you enjoyed this booklist. Here's a recap of the 5 books and the lessons I learned from each.

  1. The 7 Habits of Highly Effective People — Stephen R. Covey

Have a mission statement that outlines your goals, character traits, and impact on others.

  1. Deep Work — Cal Newport

Focus is a rare skill; master it. Deep workers will succeed in our hyper-connected, distracted world.

  1. The One Thing — Gary Keller

What can you do that will make everything else easier or unnecessary? Once you've identified it, focus on it.

  1. Eat That Frog — Brian Tracy

Identify your most important task the night before and do it first thing in the morning. You'll have a lighter day.

  1. Measure What Matters — John Doerr

On a timeline, divide each long-term goal into chunks. Divide those slices into daily tasks (your goals). Time-bound results are quarterly or yearly. Objectives aren't measured or numbered.

Thanks for reading. Enjoy the ride!

DC Palter

DC Palter

2 years ago

How Will You Generate $100 Million in Revenue? The Startup Business Plan

A top-down company plan facilitates decision-making and impresses investors.

Photo by Andy Hermawan on Unsplash

A startup business plan starts with the product, the target customers, how to reach them, and how to grow the business.

Bottom-up is terrific unless venture investors fund it.

If it can prove how it can exceed $100M in sales, investors will invest. If not, the business may be wonderful, but it's not venture capital-investable.

As a rule, venture investors only fund firms that expect to reach $100M within 5 years.

Investors get nothing until an acquisition or IPO. To make up for 90% of failed investments and still generate 20% annual returns, portfolio successes must exit with a 25x return. A $20M-valued company must be acquired for $500M or more.

This requires $100M in sales (or being on a nearly vertical trajectory to get there). The company has 5 years to attain that milestone and create the requisite ROI.

This motivates venture investors (venture funds and angel investors) to hunt for $100M firms within 5 years. When you pitch investors, you outline how you'll achieve that aim.

I'm wary of pitches after seeing a million hockey sticks predicting $5M to $100M in year 5 that never materialized. Doubtful.

Startups fail because they don't have enough clients, not because they don't produce a great product. That jump from $5M to $100M never happens. The company reaches $5M or $10M, growing at 10% or 20% per year.  That's great, but not enough for a $500 million deal.

Once it becomes clear the company won’t reach orbit, investors write it off as a loss. When a corporation runs out of money, it's shut down or sold in a fire sale. The company can survive if expenses are trimmed to match revenues, but investors lose everything.

When I hear a pitch, I'm not looking for bright income projections but a viable plan to achieve them. Answer these questions in your pitch.

  • Is the market size sufficient to generate $100 million in revenue?

  • Will the initial beachhead market serve as a springboard to the larger market or as quicksand that hinders progress?

  • What marketing plan will bring in $100 million in revenue? Is the market diffuse and will cost millions of dollars in advertising, or is it one, focused market that can be tackled with a team of salespeople?

  • Will the business be able to bridge the gap from a small but fervent set of early adopters to a larger user base and avoid lock-in with their current solution?

  • Will the team be able to manage a $100 million company with hundreds of people, or will hypergrowth force the organization to collapse into chaos?

  • Once the company starts stealing market share from the industry giants, how will it deter copycats?

The requirement to reach $100M may be onerous, but it provides a context for difficult decisions: What should the product be? Where should we concentrate? who should we hire? Every strategic choice must consider how to reach $100M in 5 years.

Focusing on $100M streamlines investor pitches. Instead of explaining everything, focus on how you'll attain $100M.

As an investor, I know I'll lose my money if the startup doesn't reach this milestone, so the revenue prediction is the first thing I look at in a pitch deck.

Reaching the $100M goal needs to be the first thing the entrepreneur thinks about when putting together the business plan, the central story of the pitch, and the criteria for every important decision the company makes.