Thursday, January 6, 2011

Making Money Now


Values, Value and Valuation — The money is all relative


Oh how timing sometimes works out to be funny. I was driving home tonight and started thinking about the value of products, the valuation of companies and how the values that a company portrays can change the rest. No sooner had I sat down to write this piece than the news of Goldman Sachs investing $500 million into Facebook broke and refreshed the entire thing in my mind. So let’s look at these three things, and try to see if one manages to sway the rest.


Values


Do you, like me, find yourself more inclined to use or purchase something that comes from a company that you can believe in? The ethos of a company can — for me at least — completely break me away from the product. That very fact, because I feel that I’m likely not alone in my actions (or lack thereof) can have a serious impact on the bottom line of a company.


Look at Facebook, for instance. When the Social Graph was announced and the new privacy changes went into effect, many people threw up their hands in disgust. But many others continued with life as usual, even if a bit annoyed. Why? Because Facebook has this outward appearance of a company that’s simply trying to do cool things, and it needs information in order to do them. The company’s values seem, for the most part, to be in line with the things that we Internet users want. As such, there was a lot more wagging and a lot less barking from the angry dogs crowd.


You’re starting a company? There’s likely something to be said for developing an ethos ahead of time, making it known and then sticking to it. Would Google be where it is today if not for the “don’t be evil” tag line? Even if you don’t fully believe that the company runs that way, you still remember it. Point made.


Value


When value exceeds cost, even by a single cent, the purchase will be made – Grant Cardone


That quote is one that has stuck with me for some time now. A few years ago I was making my living selling cars and it is sometimes exceedingly difficult to overcome the objection of price. In the technology world, we’re constantly being offered products for “free”. The only cost? A bit of information, a slice of our privacy or somethings similar. But then, after using those “free” products, we start to build our own value for them.


Don’t believe me? Just look at some of the things that you likely use every day. Gmail? You’d pay for that. Twitter? You don’t want to admit it, but it’s likely become a valuable asset to your daily Internet life. The same can be said for so many things and yet we get them for “free”. But there’s a down side to this issue as well — it becomes very difficult for a maker to charge for a product when there are free alternatives. Don’t believe that? When was the last time that a box office movie didn’t get a torrent version?


And yet, even as companies try to build value in their products, still others think that the economy allows for them to set their own values and tell us what something is worth. TV networks are probably the most well-known perpetrators of this heresy. Apple TV launched, ABC and Fox decided to jump on board and see what would happen. Some of the rest? They decided that $.99 was devaluing the product and yet as the provider of the product, there is no one entity that is more unqualified to name the value.


Consider it a lesson in business, I suppose. The potential buyer will determine the value of your product. Always.


Valuation


Now here’s a sticky one. Valuation is one of those strange things because it means so many different things to different people. To the potential investors, it’s a measure of how much money can be made. To the business owner it’s a gauge of how well the business has done. To the end user? It’s…honestly not much.


As a case in point, around TNW we love Twitter. We want to see it succeed and we are sure that it will. The valuation continues to climb prior to any IPO and yet, as users of the service, it really doesn’t matter much to us. Sure, it would matter if the site closed its doors, but beyond that there simply isn’t anything about the valuation number that matters.


And so, as an entrepreneur you have to ask yourself where the balance lies. Do your company values allow you to build value in your product? If so, then the chances are that your valuation will end up right where it needs to be. There’s a fair amount of truth in the thought that, if you handle the small stuff, the big stuff will fall into place.


So with that, I offer you a thought going into the new year — start with your values. The rest will fall into place.




Making maple syrup in a hotter world






It's hard to take big-picture global temperature increases and bring them down to a personal level—partly because of that confusion between weather and climate, and partly because scientists simply have a better understanding what is very likely to happen in an averaged-out global system, than they have of how changes in that global system are likely to affect your backyard.



I like the way Climate Wisconsin is trying to bridge that gap. First, they use interactive visuals to show the local symptoms of climate change, like rising average temperatures and fewer days of ice cover of Wisconsin lakes. Then, they connect those symptoms to Wisconsin life. If these trends continue, what impact will they have on things like fishing, forestry, farming and, yes, the making of maple syrup.



It's a hard line to walk. The family featured in this video has recently experienced some of the worst years for making maple syrup in four generations. But, because weather isn't climate, next year could be better for them, even as the climate, overall, continues to warm. At the same time, though, climate change is likely to have long-term impacts on where and how well sugar maples can grow—and when, and for how long, their sap runs in spring.



I think this video and the related essay do a better-than-average job of making that distinction. This family won't be out of business next year. But, over time, climate change is very likely to make this work harder for them. The harder it gets, Wisconsin traditions associated with maple syrup making will become less common—and the 5-million-dollar syrup industry will bring less money to the state.



Also, I just finished re-reading Little House in the Big Woods, and it's fun to see how the process of maple syrup production has, and hasn't, changed since Grandpa Ingalls threw a sugaring-off party at his Wisconsin cabin in the late 1860s. Check out the taps they hammer into the maples. They look just like the Little House illustrations, but instead of draining into wooden buckets, the sap now flows into plastic bags.



Thanks to agroman for Submitterating!



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This increase represents the smallest one in at least a half a century. At the same time, however, medical costs ate up a record share of the overall economy.


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This increase represents the smallest one in at least a half a century. At the same time, however, medical costs ate up a record share of the overall economy.


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Read our Xbox 360 news of Microsoft sells 8 million Kinects.

Small Business <b>News</b>: Recommitting To Social Media in 2011

How important will social media be to small business in 2011? Likely even more important than it was in 2010. Let's face it. Social media gives small business.

U.S. Health Expenditures Increased 4% In 2009 - Kaiser Health <b>News</b>

This increase represents the smallest one in at least a half a century. At the same time, however, medical costs ate up a record share of the overall economy.


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Microsoft sells 8 million Kinects Xbox 360 <b>News</b> - Page 1 <b>...</b>

Read our Xbox 360 news of Microsoft sells 8 million Kinects.

Small Business <b>News</b>: Recommitting To Social Media in 2011

How important will social media be to small business in 2011? Likely even more important than it was in 2010. Let's face it. Social media gives small business.

U.S. Health Expenditures Increased 4% In 2009 - Kaiser Health <b>News</b>

This increase represents the smallest one in at least a half a century. At the same time, however, medical costs ate up a record share of the overall economy.


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Microsoft sells 8 million Kinects Xbox 360 <b>News</b> - Page 1 <b>...</b>

Read our Xbox 360 news of Microsoft sells 8 million Kinects.

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How important will social media be to small business in 2011? Likely even more important than it was in 2010. Let's face it. Social media gives small business.

U.S. Health Expenditures Increased 4% In 2009 - Kaiser Health <b>News</b>

This increase represents the smallest one in at least a half a century. At the same time, however, medical costs ate up a record share of the overall economy.


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Microsoft sells 8 million Kinects Xbox 360 <b>News</b> - Page 1 <b>...</b>

Read our Xbox 360 news of Microsoft sells 8 million Kinects.

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How important will social media be to small business in 2011? Likely even more important than it was in 2010. Let's face it. Social media gives small business.

U.S. Health Expenditures Increased 4% In 2009 - Kaiser Health <b>News</b>

This increase represents the smallest one in at least a half a century. At the same time, however, medical costs ate up a record share of the overall economy.


surface encounters noblesville
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Read our Xbox 360 news of Microsoft sells 8 million Kinects.

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How important will social media be to small business in 2011? Likely even more important than it was in 2010. Let's face it. Social media gives small business.

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This increase represents the smallest one in at least a half a century. At the same time, however, medical costs ate up a record share of the overall economy.


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Microsoft sells 8 million Kinects Xbox 360 <b>News</b> - Page 1 <b>...</b>

Read our Xbox 360 news of Microsoft sells 8 million Kinects.

Small Business <b>News</b>: Recommitting To Social Media in 2011

How important will social media be to small business in 2011? Likely even more important than it was in 2010. Let's face it. Social media gives small business.

U.S. Health Expenditures Increased 4% In 2009 - Kaiser Health <b>News</b>

This increase represents the smallest one in at least a half a century. At the same time, however, medical costs ate up a record share of the overall economy.


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surface encounters macomb mi

Microsoft sells 8 million Kinects Xbox 360 <b>News</b> - Page 1 <b>...</b>

Read our Xbox 360 news of Microsoft sells 8 million Kinects.

Small Business <b>News</b>: Recommitting To Social Media in 2011

How important will social media be to small business in 2011? Likely even more important than it was in 2010. Let's face it. Social media gives small business.

U.S. Health Expenditures Increased 4% In 2009 - Kaiser Health <b>News</b>

This increase represents the smallest one in at least a half a century. At the same time, however, medical costs ate up a record share of the overall economy.


surface encounters
surface encounters macomb mi

Microsoft sells 8 million Kinects Xbox 360 <b>News</b> - Page 1 <b>...</b>

Read our Xbox 360 news of Microsoft sells 8 million Kinects.

Small Business <b>News</b>: Recommitting To Social Media in 2011

How important will social media be to small business in 2011? Likely even more important than it was in 2010. Let's face it. Social media gives small business.

U.S. Health Expenditures Increased 4% In 2009 - Kaiser Health <b>News</b>

This increase represents the smallest one in at least a half a century. At the same time, however, medical costs ate up a record share of the overall economy.


surface encounters michigan
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Microsoft sells 8 million Kinects Xbox 360 <b>News</b> - Page 1 <b>...</b>

Read our Xbox 360 news of Microsoft sells 8 million Kinects.

Small Business <b>News</b>: Recommitting To Social Media in 2011

How important will social media be to small business in 2011? Likely even more important than it was in 2010. Let's face it. Social media gives small business.

U.S. Health Expenditures Increased 4% In 2009 - Kaiser Health <b>News</b>

This increase represents the smallest one in at least a half a century. At the same time, however, medical costs ate up a record share of the overall economy.


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