Showing posts with label entrepreneur. Show all posts
Showing posts with label entrepreneur. Show all posts

Sunday, February 4, 2018

The future of work

Most people today identify themselves by their work.  We say, “I am a teacher”, or “I am an engineer”.  It is part of our identity in western culture.  In most of my conversations with individuals about a future without the need for work, past their concerns to have their basic needs met, they question the wisdom of eliminating their obligation to work in society.  Most of us believe that work is the only way we can fully contribute to society.

I usually answer: “Do you think raising a child is a significant social contribution?  How about volunteering time for a good cause?”  The point I’m trying to make is that there are many ways to participate and bring value to society.  When we contribute through actions we really care about and enjoy, we don’t care if we get paid or not.  Other examples of free social contributions are programmers working on open source software or people that donate or pledge on systems like Patreon, Kickstarter or donate money to causes.  These contributions lead to further social, service or product development without which some projects, artists and actions could not be pursued.
Thus, being paid for a job is not a reason to live.  We can still be paid for work we do… that doesn’t need to change.  But there should be no obligation to do so.

According to a study made by PricewaterhouseCoopers (PwC) in 2017, 38% of today’s American jobs will be automated by 2030[1].  In 2013, Oxford University has calculated that about 47 percent[2] of total US employment was at risk due to artificial intelligence and robotics.  That was almost 5 years ago.  According to American census data (2017),70% of all American jobs today are in transportation, manufacturing and services.  Most of those could be partially or fully automated within the next 10 years of we put our minds to it.  We could accelerate the deployment of AI and automation technologies to free human beings from the absolute need to be involved in essential work.  With a smaller percentage of people needed to work to provide basic needs to all members of a nation, those of us who are not required to keep automated systems running, could use our passion and skill to work in non-essential capacities and fill in the gaps that automation cannot until automation catches up.

Human beings have a need to feel part of society[3].  It is embedded into our biology, hence why we feel the urge to contribute in the first place.  In our ideal future we need to change how we define our purpose to better align it with the basic truth:  we want to contribute positively to society by doing what we like to do.

This contribution would be different for every individual, but all contributions add value.  Worried that we don’t cover all the bases to keep our society operate smoothly?  That’s what robotics and AI are for.  We should use them to cover the bases and ensure society runs smoothly as much as possible.   
Innovators and entrepreneurs like myself are trained and enjoy the challenge of finding solutions to problems.  As a society, we can choose to engineer a world where every individual can do what they want.   We still need to monitor and regulate population’s actions to ensure we act according to some accepted social rules of conduct.  Not something unusual or different than what we’re currently doing now with our legislative and judiciary systems.

Social contributors can still be organized in companies to achieve specific goals, just like we’re organized today, with some changes described in the next sections.  Corporations, cooperatives, creative commons and other collaborative systems, for profit or not, are still valid.

We wouldn’t need to reinvent the wheel.  All we really need to do here is give people the basics and many adults will choose of their own free will to find a job or another occupation. The difference is, as seen in UBI pilots of the past[4], the population will spend more time in education, will wait a longer time for the job they will be really interested in or they will start their own innovative exciting businesses.

Some will be passionate parents and strictly focus on that for a while because that’s where their minds and hearts are.  Those parents will produce very well adjusted and socially adept children which will be much better equipped at contributing to society themselves later.

Others will go back to school in fields of interest and then go back to society better educated, happier and more capable.

Live long and prosper
Here is something else to consider:  our next generations could live long, long lives.  It is even foreseeable that we will have the opportunity to live forever.  Several research teams in the US and elsewhere have developed clinically proven treatments to make human lives healthier and longer[5].  We’ve effectively started working on ways to fix with our body’s natural tendencies to deteriorate with age using multiple strategies such as gene editing, stem cells and medicine.  There are no one-treatment-does-all solutions.  Aging is in fact caused by seven very specific biological processes[6].  Modern researchers have already figured out ways to stop and reverse the damages time and use has done to some of those systems. 

The first treatments which should be going to market in the next five years or so should extend the recipient’s lives by a few healthy years, which is good but not enough to really celebrate[7],[8].  However, if this gives human beings a few more years of life, on average, this is additional time used to improve on the treatment and find other treatments that deal with one of the seven aging-problematic categories, thus extending our lives further.  This duel between aging and treatments against aging can occur for a while and depending on research success, deployment of treatments to the public and individual health, some people in our youngest generations and the generations following could live healthy for hundreds of years.  Aubrey de Grey, Chief Science Officer at the SENS Research Foundation calls this tug-of-war Longevity Escape Velocity (LEV).  He also told me in an interview the estimated timeline to successfully achieve LEV:

“If you’re asking how soon we will get to longevity escape velocity, I think it’s probably 20 years.  I think the most difficult treatments that we’re talking about are probably a good 10 years away from clinical trial, which means conservatively we should be talking in terms of about 20 years before they actually arrive.”
We really need to consider this as part of our plans.  Not only will AI and other technologies make human work to produce humanity’s basic needs illogical, but humans will be living much longer very soon.  Our economy has difficulty with the average age of death being 80 years old.  People are living much longer than before, and that average will only increase in the next few years.  We are having trouble with the fact that people need to work more than 40 years to sustain our economy.  Are we expected to be forced to work for… say 300 years, just to support a work-free end of life?

That’s just ridiculous. All the more reason to create a new social paradigm and a new economy that supports a healthy population that will live extremely long healthy lives.

Ensuring everyone can support themselves and their families with the basics for the full duration of their lives is an important foundation to our ideal future.

Decentralization and entrepreneurship
I’ve mentioned several times already the importance of innovators such as entrepreneurs in this plan.  Honestly, all the entrepreneurs I know, don’t start new businesses to get rich.  They do it because they frankly can’t do otherwise.  It is a burning passion that allows us to go through incredibly uncomfortable and insecure social positions to complete projects dear to us.  We do it because we want to see our project succeed.  We want to fix problems in we see in the world and we want to make improvements in the world.  Some of us want to be the first to do something that has never been done. 

With the massive amounts of information on the Internet and very advanced software allowing people, AI and information to collide and work together these days, it’s even easier to be an entrepreneur or inventor.  We can develop ideas on our own with limited financial resources.  It is often enough to create a minimal viable product and to test it out to see if it works in the market and if people like it.

It is a glorious time.  Innovators are creating solutions to problems that traditionally required government control or large amounts of funds from companies or controlling benefactors.  Families today can generate their own power (solar panels), make their own drinking water (wells, MOF water extraction technology, etc.) and eliminate their own waste/recycling (this needs a bit more development, but we have solutions for apartment buildings and bathroom blocks already available[9]).

I believe we’ll see a transition from government-controlled energy grids, water purification systems and waste disposal/recycling systems to privately owned systems. This transition is already happening today, and it is a good thing.  Government can take care of regulations to ensure new products sold by businesses won’t be a danger to health or the environment, and just let the private sector create better and better options for the population to choose from.  Offer and demand will balance there rest out.

Decentralization of these services means the same as consumers buying into just any other traditional product today.   That’s great because the bigger the government, the less efficient it is.  Letting us create new products through entrepreneurship and choose the products and services we desire keeps the economy flowing nicely and efficiently.

We can also anticipate more and more families will be using 3D printing technologies or the like to make their own goods at home from raw materials found around the house.  Some of the raw materials could even be what we consider waste or recyclables today.  When you use something up, you need to dispose of, soon, it will eventually become possible to decompose this item at home and then “print” a new one from the components afresh using power pulled from your own personal solar power grid.  Families will be able to control their own needs this way.  Current 3D printers are not efficient enough to be interesting for end users just yet, unless you are producing low quality prototypes, but the technology is rapidly becoming more interesting.  We’re also developing some very neat nanotechnologies that could be used to produce goods.  Not to mention smaller home robots powered by AI. 

The Internet, an essential basic and essential tool for the future of humanity, needs to be updated somewhat as well.  Currently, only a handful of companies control Internet infrastructures.  I believe this needs to change to ensure the Internet is controlled by the whole of humanity and not by central entities that may choose to deprive some of information while others are starved of it.  Some companies, like Substratum.net are trying out a peer-to-peer distributed approach to give individuals Internet access, which is very cool.  Other companies like Elon Musk’s SpaceX have plans to deploy a satellite constellation with ground receivers that will cover the whole planet and thus provide Internet to every individual with access.  The current Internet is old and uses very inefficient communication pathways that could be eliminated through entrepreneur innovation.  Again, offer and demand means people will choose what type of Internet they really want to use and which company they prefer.  It is fair and allows for further iterative innovation down the road.

Finally, we must consider the decentralisation of money.  I’m dedicating a whole section on this subject later in this book since it deserves a lot more attention to fully explain.  However, for the discussion right now the important thing to understand is that we would no longer need fiat currencies controlled by government.  We would still need money to trade for products and services and to participate in the offer and demand market.  Money should be used to acquire goods beyond those required to satisfy basic needs (UBI money is provided for free to ensure that’s covered).  In our global economy, the appearance of blockchain and other cryptographic algorithms like hashgraphs, means we no longer need central authorities that control the value of money and security.  Money systems can be collectively owned by all and thus by none.  It needs to be a way to securely trade for against value in a fair way with no single entity able to dictate fees, changes of values without the consensus of the whole network. 

Ultimately, what we want is full control of our own freedoms, choices, creativity, time and families and create or adapt towards a governance system that takes care of us all without limiting our freedoms and choices.



[1] Will robots steal our jobs? The potential impact of automation on the UK and other major economies.  PricewaterhouseCoopers (March 2017) - https://www.pwc.co.uk/economic-services/ukeo/pwcukeo-section-4-automation-march-2017-v2.pdf
[2] Frey, C. B and Osborne, M. A.  (September 2013).  The future of employment:  how susceptible are jobs to computerization? - https://www.oxfordmartin.ox.ac.uk/downloads/academic/The_Future_of_Employment.pdf
[3] Gregg Henriques Ph.D. (2012). Relational Value.  - https://www.psychologytoday.com/blog/theory-knowledge/201206/relational-value
[4] Ben Chapman (June 2017).  Finnish citizens given universal basic income report lower stress levels and greater incentive to work.  - http://www.independent.co.uk/news/business/news/finland-universal-basic-income-lower-stress-better-motivation-work-wages-salary-a7800741.html
[5] Fergus Walsh (December 2017).  How long could we live? - http://www.bbc.com/news/health-42404083
[6] A reimagined research strategy for aging.  SENS Research Foundation. - http://www.sens.org/research/introduction-to-sens-research
[7] Michael Irving (March 2017).  DNA-repairing drug could fight aging and radiation damage.  - https://newatlas.com/dna-repairing-drug-nmn/48584/?utm_source=Gizmag+Subscribers&utm_campaign=99a1f64d61-UA-2235360-4&utm_medium=email&utm_term=0_65b67362bd-99a1f64d61-92296889
[8] Houston Methodist (July 2017).  Researchers develop technology to make aged cells younger.  - https://m.medicalxpress.com/news/2017-07-technology-aged-cells-younger.html
[9] NYC high-rise reuse proves decentralized system works. Michael Zavoda of Water & Wastewater International   - http://www.waterworld.com/articles/wwi/print/volume-21/issue-1/features/nyc-high-rise-reuse-proves-decentralized-system-works.html

Monday, October 19, 2015

How to succeed in business without financing

Most people that start their first business think:  I need money to pay for all this stuff.

The reason being, they think about what a business looks like 3-5 years into operations.

As entrepreneurs, we have to understand that things start at a much smaller scale with what we call a Minimum Viable Product (MVP) that you can create using the means and people you have on hand, and perhaps some funds you can gather from your own house, properties, friends and family.

In fact investors will very unlikely invest in a business that hasn't gone through this phase, where you can demonstrate you are motivated enough to go through these first thin and lean steps, and succeed at generating revenues that can scale.

Besides, 90% of business that succeed were never funded initially.  They may and likely were funded later on for growth, far beyond the first revenues have been generated. 

And these funds are raised at a time when its not needed for the survival of the business... which makes investors super comfortable providing funds to your business at a low % of equity or % of interest (depending if its equity financing (Angel or Venture Capital etc....) or debt financing (banks etc...)).

We are lucky today that nowadays, if we want to build an IT business, the costs are quite small
 
We can see here that for the same company that would cost $5M to get fully underway now costs less than $5k to get the same distance.

This is mostly because of the Open Source movement and concept as well as cloud connectivity and due to a bunch of software resources, engines that really make it easy for just about anyone to get things going without hiring programmers or building complex custom software really early on.

The key is to go intelligently, step by step, getting revenues as soon as possible, and scaling from there.

One important aspect even if you do have a step by step plan, is to find an advisor that has gone through the steps to success in your business type before so he or she can guide you in which steps to go through first, second, third and give you the right timing so your energies, efforts and money is expended in a smart way.  This is also super key.

I'm of course often available as a consultant to help people out in any way I can (just contact me, and ask)!

There is a lot more to it, but in a nutshell, this is the principle to get things done without early funding.  I talk a lot more about it and give direct business examples from my own experience  and a couple other examples in the video below:



Be well, and enjoy getting things started small, and the right way!

Thursday, September 27, 2012

Are there specific cases for startups where they may need funds to get going?

As you all may know, my posts are always put on multiple channels for the readership to explore.  I've had an interesting comment show up for my blog post The Need for Funding for a startup right at the start so I decided to make another blog post to answer.

"You pose a very broad, general theme (Start-ups) and you try to prove it by one very specific, off-line shop. But would it work with - let's say - an online enterprise who needs some technology to interact with their target group. Curious to your answer. Thanks."  by Robert L. Eikelboom 

Yes, it is only an example that demonstrates clever thinking to reduce funding need (or eliminate it) to get ahead with your business.

However, every business is different.

In your example of the online enterprise that needs technology, let's say a community platform to communicate or do customer support to their target group, core to their business and revenues, I figure.

This is a little different since you can't grab stuff from your garage, stuff it in a van, and start doing it to build up momentum.  It requires coding, which means a capable dev on the team that is willing to do it for equity or future rev-share etc... not an easy thing to find.  Sometimes if you can't find such a person to partner with, you will need to raise funds to dev what you need.  At least that's what it seems at first.

Alternatives:
- Start your business in a way that you don't need that online tool at all, even if it means another business in a related field online to generate a bit of cashflow first with what you have (other partners and yourself expert in certain things that can be "sold").
- Partner with a development company that is interested in entering the same market you are and make a deal and share profits with them for a certain time.
There are likely more but those are things I've done with my own projects in the past.

In the first case it was because we had no budget to develop a rather complicated game, so we made web sites on contract since one of my main partner was a web designer by profession in the first place to generate cashflow, while I created other useful partnerships to line up the money for development.  Took a bit of time, but we got the game done on a significant game engine to boot.  Now its easy as pie to develop games on top of that tech and we also have a strong service wing to build or gamify web sites or sell games and game concepts to people.

On the second point we did that to expand into another type of development we had no expertise in and to avoid finding, hiring and managing the staff to do it properly, something we felt we didn't have the proper cashflow to do safely ourselves yet we had the distribution connections to pitch the sales.  So we found a company that was looking to enter the game space but that were experts at the type of software we wanted to make.  So they brought the skillset, we brought the concept and the sales channel and network, and we started doing that.

These were early days.

When you raise funds, ideally, it is to accelerate growth in your business, or for instances where you absolutely need a bit to get going (it happens sometimes there are no other alternatives).  In my experience it is rare.

Raising funds for a startup is a fast and no brainer proposition to get going, but unfortunately, you'll likely give away control of your company, and if there is lack of experience with the founders, likely the money won't be spent properly unless the funders are really involved and really knowledgable about the space your in to babysit you along in the right direction.  Sometimes the owner is experienced enough and strong enough with experience so that it just makes sense since with his "story" he can raise the funds easily and not waste anything.  Those stories are usually from people who have had businesses before and want to repeat.  Those guys, funders like and will risk more on them for more money anyway.

Hope this helps more people.

Friday, September 21, 2012

The Need for funding for a startup right at the start

Typically you want to NOT need funding at the beginning.  Sometimes it is required but its usually best to start with manageable bites for your business through an intelligent strategic plan.

For example, one of my mentored students wants to open up a niche coffee shop but she has no money for an extra rent, staff, furnishings, equipment.  Its a reasonable expense but over her budget or her current ability to raise.

Well, after talking to me and fellow Master Entrepreneur Chris Castillo we elaborated a plan where she leverages things she loves to do such as writing and marketing to draw people to the ideology of her niche cafe idea first, writing a little handbook on the subject and producing podcast-like videos on the subject in the meantime. 

These are things she loves to do and can do for free.

Through this initial process she has a blog and youtube video channel, gathering feedback and followers through her marketing talents while getting the properly tuned materials for the handbook she will write (another thing she loves to do, writing).  After the booklet is finished, she can self publish and share the book at very low cost to her followers, people she meets as well as publishers and media to draw attention to her idea and gather people's attention on her.

At that point, with some reasonable amount of work, she can likely draw funds from multiple sources having gathered a following of interested buyers she can demonstrate, publicity and other forms of leverage that makes it easier to acquire the necessary funds to buy what she needs to make the idea come true in reality.  All the better, she also has regional clients that like the idea and that are waiting for her to open her doors, making it easy for an opening launch.

So you see, there is always a way to even start businesses that require significant funds by strategically preparing through good planning.

Bottom line is you gotta think strategically, creatively and many times sideways to create success with your idea.  Most importantly if you don't have a network of helpful high class advisors, get a mentor to help you out with this.  It will be the best time (and sometimes a bit of $$$) investment you'll ever do.  Be different, be awesome!

If any of you want to have our help from Master Entrepreneur, please feel free to contact me directly and I'll let you know what we can do for you.