Monthly Archives: December 2012

Rework – Book Review

Book Review of Rework

It only took about 10 pages for me to realise I was going to love REWORK! It really describes the kind of business I dream about building. The guys from 37signals have built something truly special. A great tech business with a kick ass team based all over the world. They are working on solving significant problems, and creating a sustainable business.

==> Click here to buy: Rework<==

Like with most success stories one is quick to assume that they have the secrets to success. But like all the Jim Collins books (Good to Great, Build to Last Ect) you have to be careful what conclusions you come too. Only looking at the successes or “survivors” leads to something called survivor bias. It really means that although somebody has been successful with an approach, it does not equal that everybody with the same approach were successful.

But hey these guys make a really sound argument and they bring it across in a fresh and unique manner. They break every chapter into small chuck that takes aim at a specific point they are trying to make. Each point is preceded by a graphic depicting the punch line.

They see Rework as one of the by-products of building there business, and encourage other people building similar business to also look for by-products they can develop and sell to further enhance the sustainability of their businesses. Their thoughts seems to be very much in line with the Lean Startup approach, of launch early and get feedback. Execution is everything, make a decision and get into action.

They argue that business plans, budget and planning is general is a waste of time since we humans are fundamentally bad at making predictions. I agree and wish I learned that lesson much earlier in life. They also have a very refreshing look at raising money in a startup. First they caution – don’t start a startup – start a business! Getting external funding should be the last resort. Instead of looking to build something to flip, focus on building a sustainable business. You will make better decision and if the offer to sell comes, you can handle it.

Another whole chapter that would have been really valuable to me 5 years ago was on hiring. Hiring new people should be the last resort, don’t ever just through people at a problem. They explain a great concept of hiring managers of one! These are people who can manage their own productivity and get things done with the minimum input from their boss. They offer some insight into how to find people like this.

Another constant theme in Rework is around some of the advantages of being small. Like the ability to move quickly, to be free from the bureaucracy that consumes so much energy in large companies. You can own your mistakes, and apologise like a real person without having legal breathing down your neck. You are also able to, through consistent behaviour over a long time, create the culture where great people can do their best work.

==> Click here to buy: Rework<==

Man, I loved this book. I really look forward to create a company based on many of these principles. I don’t think it is possible to read this book and not want to start something to help change the world. You can do it 2!

Start reading Rework today, it is a short, entertaining an easy read.

You can follow the authors of Rework at @jasonfried (Jason Fried) and @dhh (David Heinemeier Hansson) and the company at @37signals

Buying a car in Fernie

One of Fernie’s challenges is that there is no Public transport system. The ski hill and our house is a few kilometers from town in different directions. So we decided the best solution would be to buy a car. It ended being much easier than I thought.

When we were in Fernie in September we stopped at the Fernie dealership in town to have a look at what second hand (pre-owned, as they call it here) cars would cost. While looking around one of the sales guys came walking out. He started to enquire about our needs and I reluctantly started to tell him our story. I have never enjoyed a hard sell approach, and Hal (the sales guy) handled it really well.

I took his card and started to do some research when we got back to the hotel. It looked like it was possible to get a rental for 5 month but that would be more expensive than buying, using and then selling a car. It was very noticeable that the favourite type of car in town was pickup trucks. I am not sure if that is because it is really a mining town or more as a result of the hectic winter conditions. It seemed like a good idea for us to get a 4 x 4 for the worst of the winter storms.

We ended up buying this Ford Truck in Fernie

We ended up buying this Ford Truck in Fernie

I also asked a few question around getting the car insured. They suggested I talk to the local broker, but also mentioned that I needed to get my claims history for the last 8 years to minimize my insurance.

Back in South Africa I tried to get information out of the broker in Fernie, but never got any response out of them. After a few attempts Hal referred me to another broker in Cranbrook named Ari Kupritz (Brothers Insurance Agency). Ari was actually born in South Africa, their family moved to Canada when he was 3. He had helped other foreigners before and was very helpful and answered all my questions.

Hal had also offered to fetch us from the airport in Calgary when we arrived. I am not sure if he realized what he was letting himself in for, because between the 5 of us we had 9 huge pieces of check-in luggage and another 7 carry-on. But somehow we fitted it all into the minivan.

After dropping everybody off at the house, Hal and I headed to the dealership to make the final pick of the truck we would take, do the paperwork and process the payment. The choice was simple and we decided on a 2006 Ford truck with about 90 000 km on. Paperwork was quickly done, although I forgot that all prices here exclude sales tax (ouch).

When we finally tried to process the payment we needed to call the green bank back in SA, they just said their system is offline and we needed to try again in an hour (this after I prepared them for the transaction twice). It was already too late, so we decided to try again in the morning when it was daytime in SA, since the registration could also only happen the next day. The guys at Ford gave me a loan minivan for the night and I headed back home.

The next morning the payment went through straight away and the Hal agreed to go with me to Cranbrook to do the insurance and registration. I did not realize that both those would be done with the insurance company, and in about 5 min the car was registered, licenced and insured. All done with Brothers Insurance, it was really easy and efficient. I even had brand new licences plate to go with it. It was very interesting that it could all happen without dealing with any government department. The insurance is also tied to the license plate, and is done mostly on an annual basis not monthly like in SA. I did manage to get my claims history and it saved me about 40% on the insurance.

Our Canadian number plates

Our Canadian number plates

Buying a car in Fernie turned out to be much easier than I thought, and so far it is driving like a dream. Hopefully everything else will go as smoothly over here. Thanks to Hal and the other guys at Fernie Ford for the help, and Ari for helping with the insurance. I hope everybody we deal with is as helpful.

Getting to Fernie – “Keep calm and carry on!”

Here we are in Fernie! It has been a really busy week and we are still settling in. The kids are still waking up at odd hours of the night, like 0215 this morning, but that could be the time zone change or just being a 2 year old.

Getting to Fernie was surprisingly easy. The kids were really well behaved and everything worked out great. Our first flight from OR Tambo to Frankfurt was completely full. The kids were very excited and intrigued by everything in the plane. After the meal and a bit of encouragement Sarika fell asleep in Ankie’s arms. Christopher followed a little later, and they both slept about 5 hours. The worst part of the travel was the decent into Frankfurt, Sarika cried all the way down; we practised the motto: “keep calm and carry on”.

There was some perks to flying with the kids: Frankfurt had a special line for families, with no queue and about 5 people helping us get through. What a breeze! The 5 hour stopover felt much shorter and before we knew it we were on the plane to Calgary (after boarding first, another perk of flying with kids). The second flight was less than 30% full, so we had a row of 4 seats for each of us. Sarika also slept about 8 out of the 10 hours, with a little prescribed Valegran.  We all got some sleep, stretched out over the seats!  It helped a lot having a third pair of hands, ears and eyes on our trip, and I know having Eunice with us (our holiday au pair) is going to be the best idea ever!

Slept 8 out of the 10 hours

Getting to Fernie: Sarika on Air Canada Flight, she slept 8 out of the 10 hours

Getting through immigration in Calgary took a little more time than we had planned and the officer wanted to see all kinds of documents. A family staying for 5 months must look a bit suspicious to them. But after all that we were through and into the rental car on our way to the hotel. Justinus forgot to book a GPS with the car we had to navigate the old fashion way, with a map, luckily that is one of his strong characteristics and I wasn’t worried at all!

Once at the hotel the first stop was to get local SIM cards so we could be connected to the world once more! We then went on to Mountain Equipment Co-op to buy some clothes for the kids, by this time they were hit really hard by the Jet lag, they fell asleep in the car. They did not think it was funny when we woke them to fit the clothes.  The shoes were fitted in their sleep!  So we rather left and went back to the hotel. We got some take-out (as they called it) on the way there, and everybody but Justinus fell asleep in the car.

At 10:00 Christopher woke up, wanting to go to the loo, Sarika woke shortly thereafter, wanting to know if she may have a sweetie!!?  I was praying that the kids will go back to sleep, as I was very tired myself; at 11:30 the battle was won.  At 3:30 I woke up with a thankful heart, with a kid on each side, upside down, their legs all over me, smelly feet in my face, holding their hands while they were still in dreamland.  Thankful that the travelling has gone much easier than anticipated,  that the kids, especially Christopher was so well behaved on the plane (Sarika was just busy J), that we’ve all made it safe on the other side, that we all kept calm and that everything worked out well.

Our Favourite Takeout in South Africa

We even found a Nando’s in Calgary! That is our favourite take out back home!

Well, with everybody up so early, there was enough time to sort out Justinus’ cell phone issues, exchange clothes at MEC and get something to eat!  We actually saw a Nando’s (our favourite) but it wasn’t open yet.  We opted for KFC that was close by our pickup to Fernie.  Sarika spilled a full glass of apple juice over Eunice, but she handled it quite well!  Hal from Fernie Ford picked us up, and we crammed everything in the minivan.  I slept for the better part of the drive to Fernie.  On our arrival we’ve collected the house keys at Fernie Rentals and were on our way to our new home for the next 5 months.  What a relief when we arrived, finally here!!

Getting to Fernie was the first part of our epic journey! That box is ticked, now the fun starts!

Startup Communities – Review

Building an Entrepreneurial Ecosystem in Your City

Since I really enjoyed Venture Deals, I was curious to read more books by Brad Feld. So I started ‘Startup Communities: Building an Entrepreneurial Ecosystem in Your City’ hoping for more insight on the startup ecosystem. I was not disappointed; the book also further inspired me to part of this world in the future.

The book uses the history of Boulder, Colorado in the United States as the premise to describe a startup community. Feld refers to it as “The Boulder Thesis”. My perception from afar has long been that the tech startup world starts and ends almost exclusively with Silicon Valley. Well, that assumption has been properly crushed! In fact, this book paints such a great picture of Boulder that I feel the need to go see what it is like for myself.

==> Click to buy: Startup Communities <==

Feld makes a very strong case that a startup community needs to function as a bottom up inspired community that is led by entrepreneurs. If any other players in the ecosystem, like governments, lawyers, universities or venture capital firms (whom Feld refers to as followers) take a leadership role, the growth of the startup community will be throttled.

When Marisa Mayer recently took over as CEO of Yahoo, I was intrigued that Google did not have some form of non-compete or restraint agreement as part of her employment contract that would prevent her from going to a competitor. This book provided me an answer to this question: Non-Compete agreements are unenforceable in California. This seems to be one factor that helps to drive the health of the entrepreneurial ecosystem in Silicon Valley.

The book also addresses one of the commonly perceived problems in many startup communities: the lack of Venture Capital. Since there will always be some imbalance in the supply and demand for startup capital, it is very important not to see venture capital and startup communities as the same thing. In today’s connected world capital increasingly will find worthy ideas to invest in no matter where they are located.

==> Click to buy: Startup Communities <==

I really enjoyed ‘Startup Communities’ and I really think it can add huge value to anybody looking to help create a vibrant Startup Community in their own city. I hope the leaders in Silicon Cape reads ‘Startup Communities’.