A New Era for Mobile Phone Apps
Published by Bob Foster· Comment
With Friday’s launch of the new Apple iPhone 3GS, we now have a hand-held device that really gives app developers a platform to work with.
If any of you developers need investment money to further your app development efforts, check out this post I made back in February. The venture capital firm, Kleiner, Perkins, Caulfield and Byers is looking to invest in iPhone app developers.
On the other hand, CNN had an interesting poll on their news site today, where they asked the question, “Does your cell phone have the features you want?”
- 30% said, “Yes, it’s perfect.”
- 21% said, “No, I wish it had more stuff.”
- 49% said, “I just want it to ring.”
Has anyone tried to buy a mobile phone lately that just makes phone calls? I have, and there is practically nothing to chose from. With about half of all mobile phone users wanting a device that only makes phone calls, this is a very large—unserved—market. The folks who came up with the Jitterbug mobile phone apparently have this niche market all to themselves. It is too bad they do not yet have broad enough distribution.
Innovation does not demand making things more complicated—it takes real innovation to make things more simple.
Then again, maybe the innovators should check with customers first.
Foreign Lending to the United States
Published by Bob Foster· Comment
Have you ever wondered which countries have loaned money to the U.S.? We hear a lot about China loaning us money, and before that it was Japan. But, that is not where the foreign lending ends—take a look:
- China - $767.9 Billion.
- Japan - $686.7 Billion.
- Caribbean banking centers - $213.6 Billion. (Bahamas, Bermuda, British Virgin Islands, Cayman Islands, Netherlands Antilles, Panama.)
- France, India, Korea, Turkey - $204 Billion.
- Oil exporters - $192 Billion. (Algeria, Bahrain, Ecuador, Gabon, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Oman, Qatar, Saudi Arabia, U.A.E., Venuzuala.)
- Russia - $138.4 Billion.
- Channel Islands, Isle of Man (U.K.) - $128.2 Billion.
- Brazil - $126.6 Billion.
- Egypt, Israel, Italy, Netherlands, Norway, Thailand - $124.3 Billion.
- Luxembourg - $106.1 Billion.
- Belgium, Canada, Chile, Colombia, Malaysia, Philippines, Sweden - $89.5 Billion.
- Hong Kong - $78.9 Billion.
- Taiwan - $74.8 Billion.
- Switzerland - $67.7 Billion.
- Germany - $55 Billion.
- Ireland - $54.7 Billion.
- All other countries combined - $156.7 Billion.
This adds up to almost $3.3 Trillion, or almost a third of the U.S. debt. With the U.S. economy on the rocks, and more money needed to pay for Congressional spending, about the only place the U.S. can get that money is from foreign investors—thus raising the stakes in foreign ownership of America.
Just one more thing for business owners and individuals alike to think about.
The New Normal
Published by Bob Foster· Comment
“The New Normal—GET USED TO IT. The legacy of the financial crisis will be overregulation and slow growth.” These are the words of Mohamed A. El-Erian, CEO and award winning author of When Markets Collide, in a recent article in BusinessWeek. El-Erian went on to say; “…some may want to deny the new reality. That’s a mistake. But being caught in a regime shift with backward-looking beliefs and operating models, is much worse.”
Without a doubt, things are going to change dramatically over the coming years and we will be doing business within major new concepts. It can be exciting, or devastating, depending on how well we adapt to change.
So, because it is the weekend, I thought I would include something from one of my favorite entrepreneurs, Mark Johnson. This is one of the first performances Mark and his crew put together after he brought some of the “Playing for Change” musicians to the U.S. for a tour.
(email subscribers can view on my blog)
Change is a stimulus, and it can create tremendous opportunities for creative thinking and new innovations. The time has never been better for entrepreneurs than it is right now.
Consider This!
Published by Bob Foster· 2 Comments
According to House Minority Whip, Eric Cantor, proposed programs and policies rushed through Congress “…create more debt in the first six months of this year than in the previous 220 years combined.”
I wonder if anyone besides me believes this is a lot of money.
I wonder when the spending will stop—or if.
I wonder who will pay for all this spending.
I wonder…I wonder…I wonder.
Super Angels
Published by Bob Foster· Comment
With IPO’s nearly shut down, and large Venture Capital firms wringing their hands over “Venture Capital’s Coming Collapse” (a January Forbes cover story), it is encouraging to see a new breed of “Super Angel” courting today’s startups. The June 1 issue of BusinessWeek carried an article (online version here) featuring this new funding phenomenon. Any entrepreneur looking for startup capital should read this article to see if there might be a fit.
Venture capital peaked in 2000 and total VC investment today is below 1998 levels. It has been 11 years since the industry has paid out more cash to investors than it has invested. Many VCs annual rate of return to their investors over this period was lower than the S&P 500 Index.
On the other hand, the Super Angel is smaller, quicker, and more interested in more things than their bigger, older VC brethren. They manage smaller funds and cater to the startup, with smaller investments. They have returned to the grass roots of the VC industry, with informal gatherings at the local pubs and eateries where new entrepreneurs gather to make short pitches to a Super Angel.
However, don’t forget: An entrepreneur needs to do their homework—and well! A short pitch (sans Power Point) requires a person to really know what they are talking about. They must be able to present an entirely new business idea succinctly and completely—in a matter of a few minutes.
Most of the Super Angels are also supplying more than money. One of these is Paul Graham and his new-concept VC firm, “Y Combinator.” Graham launched his firm in 2005 and has funded 145 startups to date.
Y Combinator is a hybrid venture capital firm and business training camp. Although Graham makes small investments (usually less than $25,000), he also provides advice, mentoring, technical help, and introductions to later-stage investors. He also periodically feeds his band of fledgling startup entrepreneurs.
So, the time for you to start a new business could be now…if you are properly prepared. Check out Super Angels on Google—then get yourself ready to pitch your new business. Today might be the day you have been waiting for.
Putting Tax Cuts in Terms Everyone Can Understand
Published by Bob Foster· Comment
Some time ago I ran across the following post from Mark Gwilliam (see below), and I just had to post it here in its entirety. This might be a little tongue-in-cheek?
“Suppose that every day, ten men go out for beer and the bill for all ten comes to $100.
If they paid their bill the way we pay our taxes, it would go something like this:
The first four men (the poorest) would pay nothing.
The fifth would pay $1.
The sixth would pay $3.
The seventh would pay $7.
The eighth would pay $12.
The ninth would pay $18.
The tenth man (the richest) would pay $59.
So, that’s what they decided to do.
The ten men drank in the bar every day and seemed quite happy with the
arrangement, until one day, the owner threw them a curve. “Since you
are all such good customers,” he said, “I’m going to reduce the cost
of your daily beer by $20.”Drinks for the ten now cost just $80.
The group still wanted to pay their bill the way we pay our taxes so
the first four men were unaffected. They would still drink for free.
But what about the other six men - the paying customers? How could
they divide the $20 windfall so that everyone would get his ‘fair
share?’
They realized that $20 divided by six is $3.33. But if they subtracted
that from everybody’s share, then the fifth man and the sixth man
would each end up being paid to drink his beer.
So, the bar owner suggested that it would be fair to reduce each man’s
bill by roughly the same [ratio] amount, and he proceeded to work out the
amounts each should pay.
And so:
The fifth man, like the first four, now paid nothing (100% savings)
The sixth now paid $2 instead of $3 (33%savings).
The seventh now pay $5 instead of $7 (28%savings).
The eighth now paid $9 instead of $12 (25% savings).
The ninth now paid $14 instead of $18 (22% savings).
The tenth now paid $49 instead of $59 (16% savings).
Each of the six was better off than before. And the first four
continued to drink for free. But once outside the restaurant, the men
began to compare their savings.
“I only got a dollar out of the $20,”declared the sixth man. He
pointed to the tenth man,” but he got $10!”
“Yeah, that’s right,” exclaimed the fifth man. “I only saved a dollar, too. It’s unfair that he got ten times more than I!”
“That’s true!!” shouted the seventh man. “Why should he get $10 back
when I got only two? The wealthy get all the breaks!”
“Wait a minute,” yelled the first four men in unison. “We didn’t get
anything at all. The system exploits the poor!”
The nine men surrounded the tenth and beat him up.
The next night the tenth man didn’t show up for drinks, so the nine
sat down and had beers without him. But when it came time to pay the
bill, they discovered something important. They didn’t have enough
money between all of them for even half of the bill!
And that, boys and girls, journalists and college professors, is how
our tax system works. The people who pay the highest taxes get the
most benefit from a tax reduction. Tax them too much, attack them for
being wealthy, and they just may not show up anymore. In fact, they
might start drinking overseas where the atmosphere is somewhat
friendlier.
FOR THOSE WHO UNDERSTAND, NO EXPLANATION IS NEEDED.
FOR THOSE WHO DO NOT UNDERSTAND, NO EXPLANATION IS POSSIBLE.
An excerpt from: David R. Kamerschen, Ph.D. Professor of Economics University of Georgia”
Mark Gwilliam is the founder and Managing Director of the Business Advisory Services Group a professional services organisation that provides accounting; tax; corporate governance & risk management; business consulting and secretarial services throughout New Zealand and Australia. Mark’s blog is very informative for all small businesses, and can be found here.
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