As we start a new year, let me quickly wrap up the highlights of the Bootstrapped story so next week we can start blogging sections of the book, as promised.  I’m still a bit dazed from a turkey hangover and too much holiday candy, but I’ll do my best J

During their first year, Rich and Ron developed CastleWave in a zig zag fashion – switching their focus and channeling the business momentum towards new ideas as appropriate.   Right now, one path we are pursuing is asset building (the focus in on digital assets such as websites).  The approach to asset building was backwards at first, though.  We started building assets around hot topics (riding a ‘wave’) such as horoscopes or cat personalities, but created the assets before figuring out how to monetize them.  Note for any budding entrepreneurs: monetization is key!  Great ideas are important, but until you figure out how to generate revenue, the idea isn’t going to get you very far.  For CastleWave, monetization of some key assets is an ongoing process. 

With all the hard work that’s gone into building the company, goals and rewards have always had a central role.  In June 2008, for example, the whole office had a Day of Play.  We are talking bowling, a nice pizza lunch, and laser tag (everyone got creamed by one of the high school linkers).  Don’t get me wrong though – the office isn’t just about having fun – we’re serious about setting goals too.  Rich literally wrote ‘$300/day’ on the linkers’ foreheads once to drive home the goal that had been set.  Needless to say, that goal was reached!  Out of the sheer will of the employees, one asset alone generated $600 in one day.  That’s the kind of dedication and drive that’s needed if you want to survive in a small business…

I suppose the capstone on all of the work that Rich and Ron have put into CastleWave and the book happened earlier this fall when they attended a seminar at the Wizard Academy.  They returned from that experience completely determined to succeed and to share their success story.  As is the case with great leadership, their passion and energy have infected our office to the point that we all feel the same desire and determination for success.  The past two years have been an incredible journey for our little office and the future seems all the brighter! 

Please feel free to invite any of your friends or family who are interested to join the blog so they can start receiving sections of the book next week.  They can sign up by going to this link: http://www.bootstrapbusiness.org/subscribes.php.  Happy New Year!   

Happy holidays! Thanks to everyone who’s voted on a title for the book. We’ve had an overwhelming response and are excited to post the results and official title soon! In the meantime, please feel free to continue to vote. As we finish out 2008, I’ll wrap up Rich and Ron’s story to-date then start blogging sections from the book the first week in January.

Looking back over even the past few months, I can’t believe how far we’ve come – in the business and with the book. We already have five New York Times best-selling authors endorsing the book and word of what we are doing is spreading. CastleWave is continuing to grow and increase momentum as well.

After the merger with the New York office that officially changed the company name to CastleWave, everybody kept working hard to keep the customers happy. One fun example of this - once, one large client challenged Rich: “I bet you one bagel you can’t get these words for $.35” (referring to search engine optimization keywords). Rich proceeded to not only get the words, but earn first $100 then all the way up to $15,000 revenue/day for that client. Let’s hope that was one tasty bagel!

Such attention to clients is part of the principle of acting big and behaving small. You want to show that you are established, secure, and stable so that your customers trust you, but at the same time maintain a personal connection with customers and awareness of their needs that earns their repeated business. The rewards for doing business like that will be a lot greater than just one bagel!

Starting next week we’ll kick of blogging the sections of the book , so stay tuned for that!

We recently finished our presidential election, now we are asking all of our friends and associates to vote on our most challenging pending dilemma.  What do we name the book?  We’re strongly leaning towards Bootstrapped! A No Bull Solution for Small Business Success, (not to sway your vote ) but want to get feedback from everyone before the final decision is made.  Your vote would be greatly appreciated - just take the poll on the right side of the screen.  If you’re reading this blog in email form, you’ll have to actually visit the Bootstrap Blog to vote.  Thanks for your help!   

It’s been almost exactly two years since Rich decided to take a year’s sabbatical – that lasted for about a month.  After he sold or closed his businesses, he decided he wanted to clear his head and spend more time with his family.  He quickly realized, though, that his kids were in school and a man could only go golfing so many times a week. 

On one particular golf trip, a moment of inspiration came.  Rich’s brother asked why Rich didn’t write a book about his process for starting businesses – something that ‘scares the tar out of the rest of us’ but that Rich has done scores of times.  The idea stuck and when Rich mentioned it to Ron, Ron said, “I want to write it with you.” 

And so Bootstrapped! A No Bull Solution for Small Business Success was conceived.  A few months into the writing process, Ron remained unconvinced.  He didn’t buy all the principles Rich was espousing and insisted that Rich prove it to him.  Rich was reluctant at first (the memory of bad experiences with previous partners still lingered), but Ron persisted – he wanted to see the principles in action. 

Rich relented and they each brought $2,500 to the table.  Huddled around a large white board, Rich and Ron threw 25 – 30 business ideas up and analyzed each according to Porter’s Five Forces Model.  They settled on the SEO idea, even though it didn’t score the highest, because it was quick to cash and Rich had experience in the area.

They followed the book, chapter by chapter, as they developed Everest Web SEO and were soon landing large customers and starting to see some growth.  Six months after the launch, they merged with a New York-based company to form CastleWave.  The business was doing so well that it became difficult to find time to work on the book! 

By the one year mark, CastleWave had reached the original goal of $1 million in top line revenue and has continued to grow since then. 

So what’s the point?  I can sum it up in three words: location, location, location.  Where and how do you receive your best inspiration?  When do ideas come most clearly to you?  For Rich and Ron, it happened in the back room of an office, overlooking the golf course.  If you haven’t discovered your place yet, “Do it!  Do it now!” (thanks to Dwight Schrute for that pearl of wisdom).  Great business ideas don’t miraculously materialize out of thin air, but if you spend time in places where you tend to think clearly, the ideas will come!

It’s safe to say that until now, Rich has never had a project that took two years to complete.  We have learned, though, that the process of publishing a book moves like cold tar. 

Early in the publishing process, Rich and Ron engaged with a large publisher, who shall remain nameless.  The publisher was excited to work with us but wasn’t sold on the concept.  They latched on to one specific principle of the book and wanted Rich and Ron to write a book focused solely on that principal.  For nine months, the publisher came back to Rich and Ron with action items, each of which they nailed.  After all the publisher feedback, the final outline was very different from the book they had intended to write, however.  It focused exclusively on the Zig Zag principal – just a small part of the current book.  At this point, all the signals from the publisher were positive and all that remained was to endure the formality of the Review Board (capital letters added to inspire awe and reverence). 

In the end, the Review Board decided to give Rich and Ron a ‘soft turn-down’ because although they loved the concept, there was one problem: Rich and Ron were not famous enough.  Despite their admitted admiration for the proposed book, the publisher was only accepting famous authors at that point.  Result: nine months of wasted time, energy, and momentum on the outline of a book that had zig zagged from its original purpose. 

Seth Godin recently argued that disseminating ideas is more difficult than actually coming up with those ideas.  We’ve experienced that firsthand during this publishing nightmare.   You’ll experience this same nightmare as you start your own business if you have the ability to come up with great ideas, but don’t have the skills – or partner with someone who has the skills – to market those ideas. 

All this is behind us now, though.  We’ve chosen a publisher and the manuscript is off.  Look for the Bootstrapped baby to be born in 3 – 4 months!

Ok, let’s admit it; we’ve all done it - fake work.  Rich and Ron call it ‘motion v. momentum’ but the principle is the same – being busy does not necessarily result in meaningful accomplishments, especially in the workplace.   I’m sure you know what I’m talking about and that you’ve had days running from dawn to dusk, one meeting after another, blackberry constantly buzzing.  How many times, at the end of one of those days, have you thought to yourself, “Am I making a difference for this company?”

One of Rich and Ron’s good friends, Brent Peterson, recently completed a book with Gaylan Nielson about this very subject – Fake Work.  The basic idea is that even though people may be working harder than ever, they are actually accomplishing less because their time and energy are not focused on the right actions – actions that are tied to the strategies of the organization.

Let’s take this to a personal level.  I’ve always assumed that being constantly connected and consistently in motion made me more productive, but is the work I’m doing fake work?  What does fake work even look like?  How can I recognize it so I know what to avoid?  According to the book, fake work can include meetings that waste time, meaningless paperwork, empty training initiatives, etc.  Sound familiar?

I took the test on the Fake Work website to determine just how little I am accomplishing.  I must admit I was a little apprehensive – it’s hard to take a test like that and not be nervous, especially when you know your bosses will see the results!  I don’t think I fill my time with fake work, but isn’t that the point Peterson and Nielson and Rich and Ron are getting at – you think you’re busy so you must be accomplishing something significant?  I am happy to report, however, that according to the results, I work in an environment that does very little fake work – that’s good to know!

In these crazy economic times, the companies that are going to survive will be those that are highly efficient and focus employees’ energy on strategic tasks.  There is no time for fake work in today’s economy!

Who uses phrases like The Currency of Toil?

Well I will tell you who….. High altitude climbers!

Ed Viesturs

In preparation for submitting the book to our publisher, I have been having conversations with all of the individuals that I have quoted or told stories about. As part of this effort, I was able to have a great discussion with Ed Viesturs. One of the chapters in the book is titled Climb High Sleep Low. In this chapter I contrast parallels between mountain climbing and what it takes to succeed in the ups - downs and around’s of small business start up. (See excerpt below from the actual chapter of what I said about Ed in this chapter.)

As we were comparing notes, Ed made a statement relating to mountain climbing that I had to write down and share. He used the term The Currency of Toil. Ed said this is what what he and his climbing friends had started terming the exquisite pain and sacrifice that occurs high on the mountain. If that phrase does not describe the GRIT and tenacity to succeed in a start up business I do not know what does.

These words almost allow you to visualize the pain and intensity of each step as climbers and entrepreneurs push forward into the death zone.

Maybe a little to much time without oxygen also occurs when you consume the label entrepreneur. I now also embrace the mantra The Currency of Toil

……….. Excerpt from Chapter 11 Climb High Sleep Low …………..

Ed Viesturs, one of my personal heroes, was the first American to climb all 14 of the world’s 8,000-meter summits. He accomplished this remarkable success without the use of supplemental oxygen. Only those who have confronted high altitudes understand the super-human ability required to accomplish this task.

Ed said: “For me and the people I care about, my style of climbing is the right style. Getting to the top is optional, but getting back down is mandatory.” In mountain climbing, it is not enough just to get to the top of the mountain. The goal must be to get to the top and return home safely. In business you must plan for the difficult times. As you reap the rewards of your hard work, build a financial buffer for your future.

Be kind to your team members on the way up because you will see them again on the way back down.

I interrupt Sharon’s regularly scheduled blog to inject a quote from my mentor Dr. Peter Horne. I guess I get the right to do that every once in a while.

In preparation for sending the book manuscript to the publisher, the past several weeks I have been contacting the individuals that I have quoted in the book. I wanted to make sure I got it right. This has generated a number of really fun conversations and trips down memory lane.

One of these conversations was with my mentor Dr. Peter Horne. Dr. Horne has a refined British accent, lives in Dartmouth England, and his IQ is so high it does not register on the richter scale. As a side note, Dr. Horne is the only non Japanese person to ever sit on the board of Mitsubishi Electric. However, the thing that most draws me to Peter is his ability to hit the nail on the head with simple, spot on practical advice.

As we discussed a few of his life philosophies (several of which made it into the book), I was reminded of the following statement that Dr. Horne would frequently make.

Be nice to your team members on the way up because you will see them again on the way down.

Ugggggggg …. I failed to put that one in the book, so this post will have to be a second best for now.

What brilliant advice from a very wise man. I know one thing for sure if you spend any time in the entrepreneurship world, you are going to go up and you will certainly go down as well.

We could all do with a bit more of being kind and thoughtful to those around us. Indeed odds are we will see them in a different setting next time around the merry go round.

Our office made it back safely from New York City and we had an incredible experience and learned a lot.  The fast-paced atmosphere and around-the-clock action of the City initially seem overwhelmingly complex.  This is particularly true when you attempt to ride the subways.  Crowds of hurried people rushing and pushing past you, speeding trains in every direction, and subway operators that seem determined to crush as many individuals in the doors as possible, can intimidate even the most determined newcomer.  But when you step back and take a few deep breaths, you see that there is a logic and order to the system.  All that is needed to successfully arrive at your destination is a map, the ability to follow directions, and a little bit of common sense. 

We experienced this first hand this weekend.  Our high school seniors went from looks of horror as we approached our first ride to airs of confidence by the end of the weekend as they navigated the trains.  Lo and behold, the public transportation system really isn’t that intimidating and isn’t out to get anyone (I’m almost convinced of this….).  This concept is directly applicable to starting your own business.  It can be scary, intimidating, and completely overwhelming with all the moving parts.  However, if you breathe deeply and find a good guide, the process can be not only doable, but even enjoyable!   Rich and Ron are really looking forward to helping individuals navigate through the complex system and it will be fun to watch the bootstrap seminars unfold.

Looking ahead, we’re all excited about the direction we’re heading as a company.  We took the time while in New York to create our new list of goals for Q1 2009.  After experiencing how fun and rewarding it is to meet goals, we are all energized to work towards our new targets.  Even in the midst of all our New York excitement, we established goals that were specific and reasonable yet challenging.  Our CastleWave company goals for the 1st quarter include  

• Launch Search Engine Express
• Run 60 new clients through that program
• Engage 3 large clients
• $350K revenue
• $250 revenue/day from website assets
• Book released with online platform established

These goals may not all make sense to you, but it’s the principle that’s important.  We set goals that will require us to be dedicated and focused in our work.  These goals are a critical component of our ’subway map’ - they are the end points we are trying to reach as we navigate through the confusion.  While these goals are achievable, success is by no means a given; we’ll all be working very hard over the next few months.  We haven’t settled on an equivalent reward yet, but you can bet that we’re all brainstorming!  It’s going to take a lot to beat our racing around the subways of New York!

We’ve had a jam-packed weekend in New York City so far and have seen and done tons of fun things.  As a reminder, our whole CastleWave office is spending the weekend in NYC as a reward for meeting our company goals this summer.  Our group has had the opportunity to sample a variety of New York specialties, including Lombardi’s pizza (known as America’s first pizzeria), New York bagels, and even canolis from Little Italy.  I’ll confess that I love New York-style pizza; I think it’s safe to say that everyone in our office does.  And you can’t get it in the West!  Or at least it never tastes as good as it does in the City. 

We also saw a Broadway show, went to the top of Rockefeller Center, and walked through Battery Park – to name just a few things.  And all of this on Day 1!  The weather has been frigid and very windy this weekend in the City, but we braved the elements to see the sights. 

One of the more memorable parts of the trip so far has been our time in the Financial District.  We went to Ground Zero as a group, which was a special experience.  I have been there several times and each time I feel the same sense of reverence and awe for the courage and heroism displayed on September 11th.  We walked past the FDNY Ladder and Engine Co. 10, located directly across from the World Trade Center site.  Company 10 lost a large portion of their crew in the attack on the Twin Towers; the memorial outside of the firehouse reads, “Dedicated to those who fell and those who carry on.  May we never forget.”

And of course, since we came to New York City as an office, we had to stop by the Wall Street bull for a group shot.  The Charging Bull is the symbol of an aggressive financial optimism, so naturally we were eager to pose with it.      

Since I’m majoring in finance, I always love spending time in that area of New York City.  The atmosphere is definitely different than when I was there last, however – a lot has changed on Wall Street in the past few months.  In fact, after some contemplation, we thought this shot might be more appropriate considering the current market….

As you can tell, we’re having a great time in New York.  Only one day left now, and we still have plenty to see!  This has been a fantastic trip so far and a great reward for everyone’s hard work.  As Rich Christiansen and Ron Porter point out in the book, team rewards, when they are special and meaningful, create a community of collaboration and mutual appreciation.  Our little office has definitely experienced that this weekend.

Let me start by introducing myself.  My name is Sharon Larsen and I first became associated with Rich Christiansen and Ron Porter a little over three years ago when I started working for Rich.  I had just finished my bachelor’s degree in International Politics and was looking for a meaningful job opportunity where I could get my feet wet.  Without really knowing what I was getting into, I accepted the job as an account manager with Rich and completely changed my life’s trajectory.  The next several months were a whirlwind of highs, lows, and everything in between that is associated with working in a small business.  After about 15 months, Rich decided to sell/close the 3-4 businesses we were running and take a break (more on this story later) and I had the opportunity to try something new.  My experiences with the businesses and Rich’s encouragement led me to pursue an MBA in finance.  I’m now in my second year of school and will be graduating in April.  I recently joined Rich and Ron’s team again; it’s a new business with new faces in the office, but the same passion and drive for success that drew me in three years ago. 

During the time that I was in school and away from the office, Rich and Ron began writing a book documenting the precise process they follow to create a new business, something Rich has done about 27 times.  As they wrote, Ron challenged the principles in the book and insisted they start a business to prove it.  The resulting company, CastleWave, made over $1 million in its first year of business and is continuing to grow.  The book is recently completed and will soon be going to press.  Over the next few weeks until the book comes out, I’ll be blogging the story behind the book because it’s so fascinating and I think you’ll enjoy it.  If you’ve had a chance to watch the video that’s posted on the website, you know a little about the book and the basic story behind it.  If you haven’t, I would encourage you to watch it – it’s a captivating story!

 While my involvement in this story started three years ago, the roots of the venture go back much further than that.  Rich had strong entrepreneurial tendencies even in college but, as he puts it, didn’t think that he had the nerve, background, or funding to start his own company.  After getting an executive MBA, Rich discovered that he had an aptitude for business even though his background was in engineering.  Rich and Ron first became acquainted while they were both working for Novell and then solidified their relationship when they served together in ecclesiastical positions for their church.  They become such an effective team that they could basically read each other’s minds and finish each other’s thoughts.  Even while I was first working for Rich, he and Ron had a side-business going that they later sold for a modest profit.  Little did they imagine, I assume, the partnership that would evolve in the future…