Adam McFarland

The other day I went to the pump and filled up my 2008 VW Rabbit.  With gas in my neck of the woods well over $4/gallon, it cost me nearly $60 to fill up my 14.5 gallon tank.  $60!  Dude, I drive a freaking Rabbit!  It’s like the smallest car ever.

It might not happen tomorrow.  It might not happen next week.  But if things keep going the way they are going gas prices are going to drastically change our lives.  Food and shipping prices will continue to rise.  Air fare will continue to rise.  It’ll probably get worse before it gets better.  We’re all going to be forced to make sacrifices.

I’m not trying to be bleak - just a realist.  With great problems come great opportunity.  I have no doubt that we will respond successfully, it’s just now a matter of how, when, and how bad it will get before alternative energies will be scalable. After reading an interview with Texas oil tycoon T.Boone Pickens in Fast Company the other day, I’m all of a sudden feeling a little bit better about things:

You recently announced plans to build the world’s largest wind farm, in the panhandle. Is that about money or the environment?
Money! First thing, it’s about money. Of course, I’m also a good environmentalist. I can pass the saliva test. But I’m not going to go do a 4,000-megawatt wind farm for the environment first and money second. I’d rather go give money someplace else. You’re talking about $10 billion.

What kind of return do you expect?
A minimum of 15%. It’ll probably be closer to 25%.

Tell me about the project.
It’s huge, the size of two nuclear plants in output, enough to power a million homes. More than 2,000 turbines, each between 2 and 3 megawatts. The first 1,000 megawatts will be ready by 2011, and 1,000 each year or two after that.

Transmission is a major challenge for most wind projects — getting the electricity to where the people are.
That’s right. The hardest part is having rights-of-way and buyers someplace.You’ve been planning a $3 billion water pipeline from the Texas panhandle to Dallas. Would the wind and water be transported along the same corridor?
Yes, if it goes to Dallas. We bought $45 million worth of water rights in Roberts County. We’ll transport 200,000 acre-feet of water a year. And we set up a water district that gives us the power of eminent domain for the transmission corridor. We can issue tax-free bonds. It has all the favorable characteristics of a city government.

How important is wind to America’s future energy needs?
The United States today runs on 987,000 megawatts, and the demand is going to increase 150,000 megawatts in the next 10 years — 15%. We could supply most of that with wind from the Great Plains, from Texas to North Dakota, but we’ve got to set up corridors to the West Coast and to the East Coast.

So you’re an oil man who’s turning his back on oil?
Foreign oil is costing us $500 billion a year. In 10 years, $5 trillion goes out of the country. It’s nuts. It’s the greatest transfer of wealth from one area to another in the history of the world.

You argue in your new book, The First Billion Is the Hardest (out in September from Crown), that global oil supply is slowing.
If I’m right, world oil supply has peaked. Existing fields are going to start declining at 5% to 8% per year, and it’s like a treadmill: As your production declines, it gets harder to keep up. Look at the biggest oil field in the world, Ghawar in Saudi Arabia; for every barrel of oil, they’re lifting six of water. That means the field has matured. It peaked at 5.7 million barrels a day; now it’s 4 million.

What will happen in the next five years?
Demand will go up, and price will go up.

Take a stab at what we’ll be paying at the pump in five years.
Oh hell, that’s so far out. Maybe $6 to $8 a gallon.

Is ethanol part of the solution?
Ethanol is political. That’s what Bob Dole told me in 1989. He called me up and said, “Quit talking down ethanol. You need to understand something: There are 21 farm states, and that’s 42 senators. Those senators want ethanol.” He said, “Are you getting the picture?” And I said, “Yeah, it’s coming through pretty clear.” [Dole confirms that Pickens’s account is “probably accurate.”]

Not exactly an inspiring vision of Congress.
The leadership is absolutely, totally pissy in Congress — a real conglomeration of fruitcakes. I mean pitiful people.

So would you cut the ethanol subsidy?
No. Hell, I’d rather subsidize ethanol or cream soda than have the money going out of the country buying oil. If you subsidize ethanol, the technology will ultimately get better. Corn will not be the primary ethanol fuel. They’ll go to something cellulosic. People who are against it say, “It costs so much to buy ethanol.” It costs more to buy oil from the Middle East. You’re better off circulating money in the United States. Create jobs here.

Money and politics aside, you’ve long said — like Al Gore — that climate change is happening, and it’s man-made.
It could be that it’s happening naturally, and we’ve pushed it over the edge. Regardless, I’m going to take action. Opponents say it’s going to cost so much money to address. And I say, well, hell, go ahead and spend it. I’d rather take a chance that I’m right than that I’m wrong. I don’t want to wait around until the house burns down ’til I decide whether it’s a serious fire or not.

F*ck yes! You have no idea how happy it makes me to read this.  Don’t get me wrong - me and T.Boone don’t exactly have a lot in common - but this guy is exactly what we need.  He admits that we have a problem and that the solution is about money first and philanthropy second.  That’s OK - like he said, it’s freaking $10 billion!   He’s a rich oil tycoon who sees financial opportunity in alternative energy.  The largest problems in the world will be solved when they become the most lucrative to be solved.  People with the money and resources to truly make a global impact tend to focus on the things that will make them the most money.  This guy is so rich he could potentially save our country on his own.

Imagine if every oil bigwig got their head out of their ass and instead embraced the potential opportunity like T.Boone? Kudos to an 80 year oil tycoon for recognizing change and taking this on.  It would be easy for him to just sit on his money and relax for the rest of his life.  I’m glad he’s not.

A few months back I wrote a post entitled Micro-Innovating Every Day:

Ideas are a very, very small part of the majority of great innovations. Most great innovations come from a recognition of a recurring problem that a company encounters repeatedly and has the foresight to come up with a creative solution. It’s less about ideas and more about discovering opportunities that other people have failed to see or exploit. Most of the time, you only find those opportunities if you are working passionately at your craft each and every day for years.

I’ve talked a lot about how I feel like our shopping cart software for Detailed Image is one of our competitive advantages. As I was working on subtle features and additions for Tastefully Driven that will result in it blowing DI out of the water, I thought about how all of these daily micro-innovations will result in one big innovation. By 2010 maybe we’ll be featured in some magazine for our unique shopping cart community. Some kid will be reading it and think “man, I wish I could have an idea like that.” Not realizing that DI was in existence for 2+ years running osCommerce before we even attempted to build our own cart. And that DI was running the new cart for 6 months before developing the Tastefully Driven cart/community. And that the majority of features that make it great in 2010 hadn’t even entered our minds in 2008.

Want to be an innovator? Work hard. Pay attention to your customers. Analyze data. Learn like there’s no tomorrow. Open yourself to opportunities. Execute - every single day.

Today was the perfect example of this.  Ask any one of us what we accomplished today and we’d probably have to think for a second, look at our to-do list, and rattle off a few things that we did in addition to our day-to-day.  All relatively minor, but all subtle things that make us just a little more efficient, just a little more effective, and just a little bit better as a company.

All of these things probably added up to 3 hours of work total, but all will make an impact:

• Previously we each got one day a week off from the warehouse, with all of us going on Monday.  We agreed to all still go on Mondays, but now everyone will get a second day off.  Tuesday - Friday will only have two people in the warehouse, but those two people will obviously be doing a lot of warehouse work on those days.  This gives each of us a little more freedom and will save everyone on gas.
• To trim the time down that we all have to spend at the warehouse, Greg called and had our FedEx pickup time shifted from ~4 PM to now ~2 PM.  We get a lot of early deliveries, so the two people at the warehouse will now have to work approx 7:30 AM - 2:30 PM.  We can stay later if we want, but we won’t have to.  Again, more freedom for everyone involved.
• When using our custom built back-end shipping platform the only required input is box size (you look at the order and enter a box size for each order).  We had a drop down of our available boxes, but it was poorly organized and defaulted to 10 x 8 x 8″.  This worked OK when we only had a few orders a day, but causes a few issues when you’re shipping 20+ orders a day.  Greg uses the system the most and requested that I re-order the boxes by dimension and that we default the drop down to say “Choose a box size” so you can quickly scan the list and see the ones that still need to be inputted as opposed to wondering if they really are a 10 x 8 x 8 or if they just haven’t been entered.  Minor stuff that I never really noticed, but if it trims an 8 minute/day job to a 5 minute/day job it’s worth it in the long run.
• Greg also negotiated a 3.5% reduction in shipping rates with our FedEx rep.  With gas prices these days, a reduction in shipping costs is huge.

We’ve also recently reduced common Detailed Image inquiries with a new FAQ system, reduced my SportsLizard work down to almost nothing by automating customs submissions, reduced accounting work when George automated our accounting so that PayPal transactions can be imported to our QuickBooks, and probably a lot more that I didn’t mention..

Nothing major here, but the fact that every day we do a few of these things adds up to our company growing A LOT every week, month, and especially every year.   It seems obvious, but it’s easier than you’d think to get caught up in the day to day operations of a company and neglect anything that won’t pay immediate benefit.

As any college student will tell you, scheduling classes is an art form. My first semester I didn’t have much choice and had to take whatever was available. My second semester I loaded up on Monday and Thursday and had the rest of the week off. It sucked - Mondays and Thursdays wore me out and the rest of the week I had to spend 10 hours doing homework. My third semester I put large gaps between my classes so I’d have time to get work done during the day, but all I did was bone around on ESPN.com and AIM.

My fourth semester I finally got it right: 1 - 3 hour breaks between classes, equally spread out throughout the week. I got the same amount of work done in a 2 hour break that I’d get done in a 5 hour break the previous semester. I didn’t mess around and waste time because I was under a time crunch. A 2 hour break really means like 70 minutes of work when you factor travel time and setup time into the equation. You don’t have any time to mess around with 70 minutes: you’re always under a bit of pressure and that’s why you get so much done. You’re focused. This one lesson has stuck with me ever since.

Read the following excerpts and stop and think for a few minutes before continuing the post.

If you’re an employee, spending time on nonsense is, to some extent, not your fault. There is often no incentive to use time well unless you are paid on commission. The world has agreed to shuffle papers between 9 and 5, and since you’re trapped in the office for that period of servitude, you are compelled to create activities to fill the time. Time is wasted because there is so much time available. It’s understandable.

Most entrepreneurs were once employees and come from the 9-5 culture. Thus they adopt the same schedule, whether or not they function at 9 AM or need 8 hours to generate their target income. This schedule is a collective social agreement and a dinosaur legacy of the results-by-volume approach. How is it possible that all the people in the world need exactly 8 hours to accomplish their work? It isn’t. 9-5 is arbitrary.

Since we have 8 hours, we fill 8 hours. If we had 15, we would fill 15. If we have an emergency and suddenly need to leave work in 2 hours, we miraculously complete those assignments in 2 hours.

Tim Ferriss - The Four Hour Workweek, pages 73-74

ROWE stands for Results-Only Work Environment. In a ROWE, each person is free to do whatever they want, whenever they want, as long as the work gets done. Currently, there are two authentic ROWEs—Fortune 100 retailer Best Buy Co, Inc. and J. A. Counter & Associates, a small brokerage firm in New Richmond, WI. At both organizations, the old rules that govern a traditional work environment—core hours, “face time,” pointless meetings, etc.—have been replaced by one rule: focus only on results.

In the 4-Hour Workweek, you helped people understand that because of technology, people don’t have to defer living until retirement. They can design their own lifestyle. Now imagine what would happen if the entire culture of a workplace went through the same transformation. That’s what a ROWE is. A ROWE is a work culture that gives people the power to take control of their lives. As long as they get their job done, they’re free.

One of the misconceptions about ROWE is that it’s a work-from-home program. It’s not. If you want to work in a cube, that’s great. If you want to work from a coffee shop, then that’s great, too. The question in a ROWE is not “where is everybody?” but “is the work getting done?”

Cali Ressler and Jody Thompson in an interview with Tim Ferriss

The United States leads the world in two categories: work and waste. American employees put in more hours and take fewer vacations than just about anyone else in the industrialized world, and our individual ecological “footprints” are much larger.

Coincidence? I think not. The way we work drives our habits of consumption and waste. The more we work, the more we drive, the more energy we burn, the more styrofoam to-go containers we use. At the end of the day, we’re so tired, we devour more takeout and TV, often falling asleep in front of the latter. If we want to accelerate the recent trend of reducing waste, it may be time to consider the radical step of, well, relaxing more, consuming less, and living fuller lives. May the Wall Street Journal editorial board strike me down.

Naturally, most businesses blanch at the notion of giving up any competitive edge in a globalized economy. But it’s not as if moving to a four-day (or 32-hour) workweek would simply lop 20% off the economy. Cutting hours may actually raise per-hour productivity. France, home of the 35-hour week, creates more GDP per work hour than the United States ($37 versus $34, as of 2003). Norway spanks us too ($39), and Norwegians work 26% fewer hours a year than Americans. It’s a myth of modern hypercapitalism that an overworked, sleep-deprived, stressed-out workforce is a necessity. Studies have consistently shown that longer workweeks increase productivity only in the very short term. In a recent survey by Salary.com, workers copped to wasting about 20% of the average day Web surfing and gossiping. Sound familiar?

Companies can take the first step by reinventing the workweek. Then it’s up to us to devote our increased leisure hours to activities with low environmental impact — and not to driving around gas-guzzling cars or booting up power-hungry electronics. Then we could enjoy both continued wealth and improved planetary health.

David Roberts - Reinventing the Workweek, Green Business Practices - Fast Company: May 2008

OK, soak those in for a second…got it? Here’s what I think when I read excerpts like that:

The Logical Thought

So if I’m not an employee, and we’re in long term growth mode (past the start-up phase), and 9-5 is completely arbitrary, and it’s shown that less time working will make me more productive per hour spent, and if I’ll be healthier/happier by spending more time on things outside of work, and it’s better for the environment, why the f*ck am I working so many hours?

In the startup phase there’s a “cavalier” attitude that you have to have. Life = work and work = life, and that’s OK. But I’ve been doing that for two years and I don’t want to become that guy who works 24×7 for their entire life and misses out on everything else. I enjoy new experiences and new people. I enjoy experiencing life. A large part of that is being an entrepreneur, but there’s also a lot that has nothing to do with running a business.

I spent a lot of my engineering days in college, on internships, and in the work force working on Six Sigma and Lean Manufacturing projects and always thought to myself “why can’t these principles be applied to areas in business outside of manufacturing?” What 4HWW did for me was validate that increasing effectiveness and efficiency not only can be applied to all areas of a business, but in all areas of life too. Like everyone else I have become conditioned to 9 -5 and needed a little push to realize that I didn’t have to stay a part of it.

What I Want us to Become

I badly want us to become a model of efficiency and effectiveness. I want it because it makes us a more valuable company. I want it because removing the mundane and repetitive improves the quality of our lives.

In my head, all of this starts with our business processes. Unless you’ve got a ton of money (we don’t) you need to do the equivalent of hiring people by automating anything that is repetitive and can be done without human input. It started with our shopping cart software that automates inventory and shipping (side note: we had the owners of a large e-commerce store that’s been running for twelve years come visit us recently. The founder turned to George and said “I could fire two employees if I had that technology”. That made me feel all warm and fuzzy inside). It continued by moving all of our data to the web and automating backups and with George automating his accounting. In the future we’ll automate more of our marketing - while things like Google Base submission are automatic, niche newsletters based on customer behavior aren’t quite there yet…but they will be.

Once the business processes are set we can move on to us. We all want to work less hours. Some tasks - like packing and shipping - cannot reasonably be automated with technology so the way you “automate” them is to hire employees. I feel that by the end of ‘09 we’ll have the 2-3 people in place that we need to allow us to work 20 hour workweeks. That’s my personal goal for each of us - the other guys might be thinking less or more, but that’s what I’m pushing for.

How did I come up with 20 hours? In 4HWW Tim Ferriss asks the question “If you had a heart attack and had to work 2 hours per day, what would you do?” He asks the question to challenge you to think about what you really need to do to successfully complete your job. However, he bases this on the premise that you don’t like your job and want to work as little as possible. That’s not me/us. I love this stuff. One of the things I really want to do a lot this summer is white water rafting - I’ve been twice and it was fun as hell so I want to officially make it one of my hobbies. I’m pumped. But I equally want to expand upon an email marketing system that we recently launched (right now we send follow-up emails to everyone who makes a purchase asking them to review their products on the DI blog or TD forum, but there’s a ton of growth potential there). I also equally want to hike every state park in the Albany area. Of course I also equally want to bulk up my AJAX skills and improve the user experience on our cart.

Clearly I love our company as much as I love non-work related things. It’s a good place to be in life. 20 hours limits you just enough so that you get excited to work. If I can only work 20 hours the intensity in which I work will be multiplied many times over. I’ll also really look forward to those few hours a day instead of letting my mind drift to things that I might rather be doing.

What I’m Doing About it

I realize that this all starts with me. I’m the one usually “proposing” these wacky things to my partners so I have to prove the concept before I can expect them to get on board. 20 hours isn’t realistic right now because we don’t have an employee and won’t for a while. However, I’m always looking to make progress and prove my point so I’ve decided to limit myself to 35 hours of work each week. After a few months, I’m going to make it 30. Then I’ll stay at 30 until we have our 2-3 employees in place and trained.

What counts as “work” you ask? Good question. I’m counting everything that is related to running Pure Adapt with the exception of:

• Commuting time
• Blog posts on this blog
• Time spent reading business books or business magazines
• Time spent learning (for example, I have a few AJAX books that will take a lot of time to work through…those don’t count)

Everything else is fair game. I purposely waited until the end of Thursday to do this post because I wanted to test my limitation this week. This week is the perfect test week - if I can do it this week I can do it 95%+ of the time. Being that I got NOTHING done last week with our server mess, my to-do list was backed up a ton. On Sunday night I took all 20 action items and split them up equally among the days of the week. In my head I said to myself “you’re only going to have 6 or 7 hours to do all of this, so you better be focused”. It has worked. Every day I knocked each item off. I am getting at least as much work done in far less time. Some days I worked right up to the last second and others - like today - I was done early. Thus far here are the hours I’ve worked:

• Monday - 7 AM - 2:30 PM (7.5 hrs)
• Tuesday - 7:30 AM - 4 PM (8.5 hrs)
• Wednesday - 7:30 AM - 1:30 PM (6 hrs)
• Thursday - 7:30 AM - 1 PM (5.5 hrs)

That puts me at 27.5 hrs through Thursday. We each have four days at the warehouse and one “off”. My off day is Friday, so I generally do the most work Monday - Thursday. 7.5 hours for Friday - Sunday sounds just about right. I’ll probably work about 4 hours tomorrow, 3 hours on Saturday, and just check email on Sunday (Indy 500 baby….anyone else pumped!?!?!).

This past four days has been the best of my life in terms of work-life balance. There’s nothing outside of work that I wanted to do that I didn’t. That’s huge for me. I’ve also stopped doing work at home - I do most of my work at the warehouse and the rest at Starbucks/other local coffee shops, which helps me mentally unwind when I walk through the door of my apartment. Continuing this schedule will go a long way to ensuring I get the fulfillment I’m looking for out of both work AND life.

I’ll definitely continue to post updates as this unfolds…should be interesting.

Lately I’ve been realizing just how fast technology changes. In December I wrote an article about our company embracing the open source software alternatives:

So we came up with a plan. We would have a set of desktop workstations (one to start) that have the full Adobe Creative Suite Master Collection (the $2,500 one) and Microsoft Office Professional 2007. Our laptops would then use the OSALT (open source alternative). Aside from that warm and fuzzy feeling you get from using great open source software, this move will save us thousands of dollars each year. We figure that 95%+ of tasks can be complete with the OSALT, but when we need to use the standard software for better performance or file compatibility we’ll have desktops at our disposal. The only way this really breaks down is if the 95% doesn’t hold up (in which case we’d probably buy a copy of the software needed for that individual) or if too many people *need* the desktops at one time.

In the comments Anthony from Xonatek and I had a great back-and-forth about taking our mentality a step further utilizing Google Apps and free web based software.  Ultimately, we didn’t change our plan at the time but the conversation left the thought in the back of my mind.

Just before we moved into the warehouse George’s computer died and we lost all of his data.  I personally was doing an OK job of backing up my files, but we didn’t yet have a company backup plan (something I planned on doing once we settled in).  The more I thought of it, the harder the idea of a backup plan became because we’re always on the move.  You can’t set your laptop to auto-backup at midnight if it’s in a different location each night at midnight.  What happens if it’s suspended or shut down?  If it backs up as soon as you boot up that could bother you and prevent you from performing a time-critical task.  If it skips the backup that defeats the purpose.

More and more I decided the route to go was not to back anything up, but to have everything stored on the web.  Aside from not needing to schedule and perform backups, you can also work from any internet-ready device at close to full capacity.  The downside of course is that if you have a slow internet connection many of the apps straight up suck.  We combat this by having the open source alternative installed on the hard drives on all of our computers.  We also still purchase software when necessary:  for example, Mike has a copy of Adobe Photoshop CS3 that isn’t really replaceable  with an open source alternative for the graphics work he does.  We also sort of killed the idea of a super duper master $5,000 PC - what’s the point when almost everything is online anyway?

Here’s how we have it set up:

• We use Google Apps for:
  • Email hosting through Gmail.  This is for our @pureadapt.com emails.  For the rest of the emails (sportslizard, iprioritize, tastefullydriven, etc) I use the mail fetcher to take a copy of each incoming email off of the server and put it in an appropriate folder.  It leaves the message on the server for me to download in Thunderbird (still my email client of choice), acting as a great auto-backup.  I also set it up so I can reply from any of those email accounts via Gmail if I’m on the road and don’t have access to my Thunderbird on my laptop.
  • Docs, Spreadsheets, and Presentations for our office suite.  We’ve already had quite a bit of great collaboration on some docs and spreadsheets that otherwise would have been emailed back and forth a bunch of times.  Far more useful than I anticipated.
  • Google Sites to replace our Wiki’s.  We have one wiki for just the owners that has critical info in it and a second wiki that employees will have access to that has all of the important processes (like how to pack and ship an order).
  • Google Calendar to manage our schedules.  We don’t use it much, but it’s an easy way to set up a meeting with everyone without having a big chain of emails back and forth.
  • The company start page where you can access all of these things.  I can’t over-emphasize how nice it is to have one login for everything.
  • The Remember the Milk plugin for the company start page as a shared task manager (ironically, I had someone email me the other day ripping Remember the Milk and saying iPrioritize was far better…maybe so, but iP doesn’t have a plugin like this…suppose that’s my fault…)
• Xdrive for storing other files like our Quickbooks backup, database backups, PDF files, PSD files, etc.

So far it’s going great.  The coolest part for me has been that it has opened up a whole new world of devices away from my laptop where I can work.  I went from working solely on my one powerhouse laptop (dual core processor, 2 gb ram, etc) to now sometimes using my desktop for its 22″ monitor when I need more space.  I even pulled the trigger on an ultra portable Eee PC for when I’m on the go.  For $399 I figured I could reduce the wear and tear on my current laptop (especially the hard drive - the Eee has a solid-state hard drive which is much better for traveling) and reduce the amount of stuff I need to carry on a regular basis while still remaining almost as productive as I would be on my lapper.  Linux took some time getting used to, but with the help of EeeUser.com I’ve become addicted to hacking up this little device.  I’d say at this point I could work solely from the Eee PC for a few weeks with very little productivity loss.  I wrote a full review over on the Tastefully Driven blog, but take a look at how much smaller it is compared to my current lapper:

Random happenings not worthy of a full post…

• This weekend I’ll be moving to a new apartment so the posts might be slow for the next few weeks.
• Check out this little analysis I did over on TD:  Gas Prices Got You Down?  Buy Online…Really
• Thanks to the NBA and NHL playoffs my sleep schedule is all f*cked up again. I’m still getting up at 6, but going to bed really late means I need to take a nap in the afternoon….which kind of sucks.

Since the launch of Tastefully Driven I’ve been intending to do a post similar to the DI Features and Lessons Learned. But since this project had less “unknowns” there weren’t a lot of “lessons learned” from the programming side. We knew what we needed to do, and it was more about execution than figuring out a way to get stuff to work.

Nonetheless, there’s still a lot of cool stuff on TD that isn’t completely obvious if you just scan the site for a few minutes. So below are my Top 10 favorite things about the site:

10. One Account
When you have a forum on an e-commerce site, I think it’s utterly important to tie the two accounts together. Instead of just throwing up a copy of vBulletin and making the colors match, we took a bare bones copy of bbPress and hacked it apart until we were able to mesh it seamlessly with the shopping cart. Right now the only benefits of this are that you log in once (at the top of any page…another cool feature) and that you have the same username/password across the board. In the future - assuming the forum becomes somewhat popular - this opens itself up to all sorts of interesting social-networking-type opportunities: for example, imagine getting product suggestions (via PM, email, or displayed inline on the site) based upon your previous purchases and the threads you participate on the forum. In 2-3 years this could be how we make that jump from large e-commerce site to “social shopping” platform. It’s a ways away, but we laid the foundation now.

9. Integrated Affiliate Program
A lot of affiliate programs make it ridiculously difficult to sign up and create links. Using a 3rd party affiliate software is something we didn’t want to do for Detailed Image and we brought the same system over to TD. Our payout rates are posted for everyone to see, and signing up is really easy: in your My Account page there is a message enticing people to sign up:

If you click ‘Apply Now’ you only have to choose a payment type, click ‘Apply’ and you’re good to go. We also make it super-simple to create links. In addition to a tutorial page, we now display an affiliate link on every single product page for that specific product when you’re logged in:

8. Forum Product Recommendations
When you are viewing a forum topic we display a banner ad of up to five related products at the top of the page. So if you’re in a discussion about caffeine it will “recommend” the caffeine capsules for sale in our nutritional supplements section. Again, this has large potential to be highly customized in the future based upon more than just the forum topic.

7. Personalized RSS Feeds
This is one of the few features that came with bbPress that we kept in tact. Every user can mark their favorite forum threads and then subscribe to a custom RSS feed to track the progress of the conversations they’re interested in.

6. Blog-Forum Sync
One of the other things I saw as absolutely necessary was merging the blog comments with the forum. Each time we post in WordPress, a corresponding thread is opened in the forum. If you click to comment on the post, you are redirected to the forum. Blog posts also pull the conversation from the forum and display under the post just like normal comments.

5. Upsells
Inline upsells offering a 5% discount was one of the most fruitful moves we made with Detailed Image. Average order value went through the roof. With TD we changed the page structure around and moved the upsells up “above the fold”. This may or may not be better - we’ll see.

4. Image Upload System
One of the most time consuming aspects of Detailed Image was uploading pictures. Each picture needed to be re-sized several times, watermarked, and then linked to in the database. For TD, I built an image upload system to automate all of this. After we’ve entered the product info in the database, we can log in to our admin section and upload a 500 x 500 png file and the script automatically re-sizes it, saves it, watermarks the images, and creates the appropriate database relationship. Big, big time saver.

3. Shipping System
Sure, this is basically the same as DI, but it’s the backbone of our company. This system is the single most efficient process we’ve put into place. If we didn’t have it we would have a full time employee processing and shipping orders right now. Each morning we click “Process Orders” in our admin section: the PDF receipts pop up to print and save, along with a text file to import to FedEx Ship Manager, which prints the shipping labels and gives us a text file back with tracking numbers, which we upload to auto-email each customer their tracking info. It’s a 2 minute process whether there are 5 orders or 25 orders (or 250 orders down the road).

2. Design
The design of the logo and the site was all Mike. I think he did an A+ job aesthetically conveying exactly the image that we want our customers to see….especially by differentiating each store with it’s own unique color scheme. The Games store, for example, has an orange color scheme but you still know that you are part of TD:

1. Commerce with Conscience
The icing on the cake for me: we’re donating 5% of our pre-tax profit from the site to local charities with our Commerce with Conscience program. Sure, 5% isn’t much now, but it will be as we grow. We’re choosing new charities quarterly, and the first charity - The Regional Food Bank of Northeastern NY - has been very supportive (I got an email back from the Executive Director, which is pretty cool). Along with participating in events like the Climbing UAlbany Event, we hope this program is how we funnel some of the money we pull in online from all over the country/world back to our community. I anticipate that as we grow we will spend more time personally working with each of our charities so that we give back more than our money - our time and expertise can do equal amounts of good. My favorite part about this program is that it ensures that no matter how big we grow we are giving a corresponding amount back to the community. Target does the exact same program and you see the immense social impact they are able to have because of it. If we can even have a fraction of the impact locally that they do nationally, it will be a huge success.

We’re also all rocking Commerce with Conscience wrist bands:

The bands are included with any order over $100 for free, or can be ordered for $4.99 on the site (with all of the profit from the wrist band being donated).

———

What’s next? I’m a firm believer in letting things settle for a bit before diving back into more development. Aside from a necessary focus on marketing, I’ve learned (the hard way) that you need to provide ample time for data/feedback to accrue before jumping to any conclusions about what you do and don’t need. By the end of 2009 I hope to have expanded the forum functionality with the aforementioned social-shopping stuff and to also integrate some AJAX into the cart in places it can really help (coupon codes and add/update cart come to mind), but other than that changes will be dictated by our users and the data.

All in all, we couldn’t be happier with the site we put out. We’re a small team and we did it on an extremely tight time schedule. I’m ridiculously excited to see where this cart takes us over the coming years.

I’m going to take a step back from our pre-launch marketing for Tastefully Driven to go over our overall launch plan - from conception to where we are now to what we have left to do. I’m not saying that there aren’t different or even better ways to deploy a site, just that this process is how we do things, in large part based upon prior failures, successes, and other professional experiences (I’d be lying if I said my engineering background didn’t play a large role in the way I structure a project).

None the less, I’ve never in my life missed a due date on a project and a large part of that is my meticulous planning so hopefully this post will help other young entrepreneurs better formulate their business plan.

Conceptualization

You have that “ah ha” moment where your entire perspective on the world changes and you think to yourself  “I’ve got to do that“. This is the start of what I call the conceptualization stage. For us, after the Detailed Image shopping cart far exceeded our expectations, we naturally asked ourselves how we could repeat the DI model in another industry. That led to us considering several similar high-end niches, and eventually the light bulb moment where we could combine those stores and a community into one large site - hence Tastefully Driven.

When I’m at this stage with a project, I’m so excited that I put a self-imposed waiting period on myself before acting (similar to my 24 hour rule). During this stage you’re likely to be so certain that you have just come up with the next big thing that you’ll ignore reality and down play very real road blocks. There’s no set time period, but I’d say wait at least a week before taking any action beyond registering a domain name.

In the case of Tastefully Driven, we conceived of the idea sometime around Thanksgiving of ‘07. For the next month we discussed the pros and cons - the features we’d want and those we wouldn’t, how we would market it, how it would impact the rest of the company, and how much of our resources could be devoted to it.

Aside from preventing you from doing anything stupid, it allows you (and your team, if you have one) to refine your vision. By the end of this period for us, everyone usually shares the same vision and knows what’s going through everyone else’s head. When you finally do start the project, you start it on the same page with the same vision for success.

Making it an Official Project

By late December we had decided Tastefully Driven would be our future. At that point I consider the project an official project. During this phase we started to get more serious: would we keep client work (ultimately, no)? how would this impact Detailed Image (we would finish all DI development work for 2008 before starting TD)? when could we realistically launch with several product lines (initially, we said 8/1/2008 at the earliest).

This is where I really shine. We have a MONSTER project and we need to figure out how to start tackling it. This is also where I think a lot of people get paralysis by simply being overwhelmed with what to do next. As Theodore Roosevelt once said: “In a moment of decision the best thing you can do is the right thing. The worst thing you can do is nothing.” In this case, the right thing to do is come up with a plan.

Up to this point, we had literally written nothing down and neither should you. Don’t get caught up in the minutia when you’re conceptualizing. However, once it’s an official project there has to be extreme attention to every single detail.

We tend to convene around our company wiki, so I like to write my project plans on the wiki. Since we had agreed to finish Detailed Image development before touching TD, I focused on that first. There were around 10 additions to the cart that needed to be completed (mostly stuff for me to do). I gave each an approximate completion time and I figured it would take until the end of February or early March to complete. Somehow I caught fire and wrapped it up on 1/12, which gave us an early indication that our 8/1 launch date for TD might have been too much of a time cushion.

Once complete with that I started an in depth plan for Tastefully Driven. The site will launch with 5 or 6 e-commerce stores, a community, a blog, and full integration of accounts between the three - by far the largest project we have tackled, and therefore the most daunting to plan. I started by breaking it up in to several key categories:

• Design (mostly Mike)
• Development, which essentially involved improving and scaling the DI cart (mostly me)
• Quality testing, which could fall under Development, but I like a whole section of tests to run prior to launch
• Product selection (mostly George)
• Content creation, including writing product descriptions
• Marketing ideas

Each category had a simple bulleted list, and each task that needed to be done to launch got an approximate completion time. The latter stuff - like marketing ideas - was more of a brain dump than anything else. Even though we create a marketing plan later on, it’s important that we have a place on the wiki to jot down an idea as we come across it in the development of the site.

Setting a Launch Date

Some people like to use Microsoft Project (or similar project manager tool) to plan out due dates and choose a launch date. I was forced into using these tools in college, and to be honest I just see them as complicating the matter. I like the freeness of one large blank wiki page. I am smart enough to know that keyword research needs to be done before launching a pay-per-click campaign, so I won’t assign a due date to the PPC campaign that doesn’t allot for that. With the entire project in front of me it became pretty obvious that we could finish it by 3/1 (a far cry from 8/1). We figured with the warehouse move and a little cushion time, that 4/1 would be perfect. Any later in the year is prime Detailed Image season so if we didn’t do April we’d probably have to wait until Fall…or launch with limited contribution from George and Greg.

As I touched on a bit in previous posts, the one key thing I grossly miscalculated was how long it takes to contact vendors. I figured a month would be sufficient time to contact a vendor, get samples, place our first order, and receive it. More realistically, that stuff takes several months and I’d like at least a 3 month cushion for that alone next time. Our final order just shipped, so miraculously we will have all of our products in the warehouse for weighing and photoing by 3/14, but we cut it waaaay too close in my book.

Developing the Site

The development portion is different for everyone. Some people use open source software like WordPress or osCommerce with very little customization and this portion isn’t much more than design work to get the aesthetics right. Others hire an outside developer….which I’ve never really done so I have no clue how to integrate that into a project plan. We develop everything ourselves, so we were able to relatively accurately estimate our ~2 months of development work.

*side note - if you or your developer don’t develop with SEO in mind, this is the time to start building and structuring things properly. Do your homework - it will pay off.

When I do development work I do it with the understanding that we’re spending a few weeks solely on quality control testing at the end of the project. That means that while I’m developing I test every scenario and interaction I can think of, and once it works I move on.  I usually miss some stuff, but that’s OK. In most cases there will be other interactions created later on, some of which we won’t appropriately test - which is why having a QC testing phase is so important. I also encouraged Mike to think the same way with his design. Essentially - lay it all out and get it working most of the way and fix the nitty gritty shit at the end.

I always map out the entire site - every feature and function I can think of - before touching anything. Once that’s done, I create the database that should encapsulate every single possible scenario. This is pretty obvious: you need to be able to enter test data to see if what you’re trying is working.

All of this resulted in a more detailed list of features to develop, how long they’re going to take, and what order to do them in. By far the most challenging part of Tastefully Driven was to get our login and user information to work seamlessly between our forum (built upon bbPress), our blog (WordPress), and our custom built cart. Every project I’ve ever been a part of has those “if we can just get this to work, we’ll be fine” features and this was the one thing we were really uncertain of the difficulty going in. It’s important to identify these types of issues at the start and try to tackle them as soon as possible so you know where you stand. These are the things that will throw off a time line and screw a launch date.

Announcing the Launch Date

For the reason in the last sentence, we have an unwritten policy of not announcing a launch date until the development work is nearing completion. While internally we set 4.1.08 as the date, we always knew it could be delayed if need be. Once I announced the launch on my blog, I considered it set in stone and - short of an extreme emergency - will make sure it happens.

Every company has different pressures and a lot of times those pressures dictate premature launch dates, but if you can help it I encourage you to set a date and stick to it. A launch date really forces you to buckle down and focus on the task at hand. It forces the BS stuff out of your project plan and dictates that you work on only what is necessary. We’re in this phase now, and I’ve been knocking things off of our wiki list like crazy. Some get moved to “post launch” and others get canned because they just don’t matter.

I normally work a lot more hours prior to a launch. The past few days George and I have been doing a double shift (8 AM to 8 PM type of stuff) to ensure that we get everything done on time.

Creating a Marketing Plan

Up until this morning we just had our marketing list on the wiki. We created the splash page, the pre-launch blog, and the teaser business cards, but the plan wasn’t really formulated. Today I finally created our marketing plan. Some people like to do this sooner than now (a month before launch), but I encourage you to wait to create a marketing plan because so much changes in development that much of an earlier marketing plan would be rendered useless.

I’m not going to rehash all of my favorite web marketing tactics - my free e-book does that - but I will say that for an e-commerce site we’ve pretty much got a formula down pat that we are sticking to. The majority of our marketing will consist of:

• Content creation. Articles, forum posts, podcasts, and videos where we do product comparison, tests, and case studies. Since our site is perfectly SEO friendly and we will produce quality content, over time this will suck in a ton of targeted traffic. It will also become viral and hopefully spread through social bookmarking and social networking sites (we have a “share this” button on every product page, blog post, and forum post).
• Pay per click marketing. PPC is such a simple formula if executed properly: pay $x per click, y% of clicks turn in to purchases. As long as the number of clicks/sale is greater than your margin, you win. Split testing and refining ads can push your cost per click down and conversion rate up.
• Google product search. So many sellers don’t take advantage of this. It’s free, and in about 2 hours I automated the process so that we automatically create and submit an updated product feed daily to Google via FTP. DI gets a lot of sales this way.
• Email and RSS marketing. This is really just maximizing the sales we can get out of our existing members. I’d also include great customer service in this category - every customer service email is an opportunity to positively influence someone who could become an evangelist of your site. When you’re starting with zero members, email marketing can take a while to have an influence. We see it now with DI though: every newsletter results in a wave of sales. This is one of the reasons why the pre-launch splash page is important: the faster we can build an email list, the better.

There’s other stuff too, but these are what will drive sales. Obviously PPC and Google product search will help immediately, while the other two will take time to develop. We’ve launched so many sites that we understand that you don’t truly see the impact of great content for months and even years. With this project, we know that what we’re doing works and we’ll be as patient as we need to be to make it work correctly.

Quality Testing

Maybe it’s because I spent my engineering days as a QC engineer, but quality testing is a big deal to me.  Test every single page and every single possible function of your site.  Do it in every browser, every operating system, and under every condition you can think of.  Test your emails in every email program available.  Do REAL transactions and make sure they work.  Recruit a handful of BETA testers (i.e. friends and family) to try everything out.

You’ll never catch 100% of the errors, but the difference between 80% and 97% is huge.  I allot a minimum of one week for QC testing and it’s usually the week prior to launch.  That means that everything else should be done at least a week before launch day.

Launching

I always create a launch day checklist.  While you should pause to celebrate (for like five seconds), once you pull the trigger there’s a lot to do:  announce it on your blog (if you have one), submit your product feed to Google, submit a sitemap to Google/Yahoo/MSN,  activate your PPC campaign, email friends and family, etc.

You’ll likely start discovering some of those errors you missed in the QC testing phase as real people do stupid things to inadvertently challenge your software like it never was before.   The better job you did in QC, the more you can focus on your first order coming through and the less you have to worry about your first users getting pissed off and leaving.  When it comes to Tastefully Driven the platform is built upon Detailed Image, which we know is stable, so I’m more worried about minor integration issues than I am about all-out systems failure (which was definitely a concern of mine when we went live with DI….even if I never let my partners see it).

Bottom line:  it’s a fun day when you launch, but in reality it’s just the beginning.  Take a day to catch up on sleep and then get to the “real work” - getting people to actually pay you money.

Ongoing Development

I have a rule: other than fixing errors, don’t make any major development changes or additions for at least a month…three to be safe.  Why?  Because on the second day you’ll get an email from Aunt Betty telling you that she thinks the site would be better if it had feature xyz and you’ll think “if she thinks that, other people must be too” and then you’ll begin to hack up your code and try to rush xyz to market.  Not only could this make your site worse, it’s also a poor use of your time.  You’ll get emails like this all the time, and if you concede to all of them you won’t make much money and your site will suck.

If you have confidence in your project (and you should if you got this far), there’s a good chance that you launched with a pretty solid site.  That’s good enough for now.  Take in your customer feedback, study your analytics, and focus on sales right now:  in the grand scheme of things you’ll look back at the launch version of your site as a piece of shit but you need to let those things play out so that you’ll know what you should and shouldn’t do to improve upon it.

For Detailed Image, we waited from September to January before I started on the laundry list of features for 2008.  The result, however, was a million times better than if I kept programming in September.  Some features were deemed unimportant and scratched from the list, some were re-affirmed by our data….justifying our time expenditure, and some became simpler to program because of everyones more intricate knowledge of the cart.

One thing I think most developers look past:  just because you made the software, doesn’t mean you know it.  Often times, customers will use things vastly differently than you intended.  By letting those things play out naturally you save yourself a ton of headaches and ensure that the changes you do make are worthwhile.

Conclusion

Phew.  Can you say longest post ever?  I think I’ll get back to work now….after all, I’ve got a lot to get done to launch this site

This months issue of Fast Company Magazine profiled The World’s 50 Most Innovative Companies. As I flipped through the pages soaking up hundreds of brilliant innovations, I thought about what innovation means to me now compared to what it meant to me back when I began my entrepreneurial adventure.

Had I read this issue back in 2003, I would have sat around for hours trying to brainstorm my “big idea”.  After all, if I was ever going to innovate I would need to have an idea as great as the ones that Google or Nike had.

Now, in 2008, I’m able to look deeper into the stories and understand the true causes behind the innovation.  Ideas are a very, very small part of the majority of great innovations.  Most great innovations come from a recognition of a recurring problem that a company encounters repeatedly and has the foresight to come up with a creative solution.  It’s less about ideas and more about discovering opportunities that other people have failed to see or exploit.  Most of the time, you only find those opportunities if you are working passionately at your craft each and every day for years.

“Innovation” is largely synonymous with “great new idea”, but I’m telling you that most of these companies spent years recognizing and developing products and processes that led to their innovations.  It’s (relatively) easy for Apple to come out with an iPhone with the last 20 years of market research, consumer research, product design experience, supply chain experience, etc.    If you or I had the “idea” for the iPhone in 2002, we’d probably still be looking for enough capital to try to get it to market.  The idea itself is essentially worthless.

Tying this all back to me:  my entrepreneurial goal has always been to innovate.  Innovation is how we improve the world around us, and I see great personal satisfaction in providing things that make the world even the tiniest bit better.  It doesn’t matter to me whether it’s offline or online, for profit or not for profit.  Even if I had a billion dollars I’d still try to innovate.

I’ve talked a lot about how I feel like our shopping cart software for Detailed Image is one of our competitive advantages.  As I was working on subtle features and additions for Tastefully Driven that will result in it blowing DI out of the water, I thought about how all of these daily micro-innovations will result in one big innovation.  By 2010 maybe we’ll be featured in some magazine for our unique shopping cart community.  Some kid will be reading it and think “man, I wish I could have an idea like that.”   Not realizing that DI was in existence for 2+ years running osCommerce before we even attempted to build our own cart.  And that DI was running the new cart for 6 months before developing the Tastefully Driven cart/community.  And that the majority of features that make it great in 2010 hadn’t even entered our minds in 2008.

Want to be an innovator?  Work hard.  Pay attention to your customers.  Analyze data.  Learn like there’s no tomorrow.  Open yourself to opportunities.  Execute - every single day.

———–

PS - I’ve been wanting to write this post for about a week, but my cold combined with all of our stupid roadblocks have been pissing me off so much that I digressed the last few posts.  Today we finally got our heat back on - turns out the oil company thought our 1,000 gallon tank was full when they filled it a few weeks ago.  It was empty and they put in only 27 gallons.  Wow.

I recently went back and visited with one of my old engineering professors.  He seemed happy that I had started my own business, but the whole time we were talking I could sense a bit of skepticism.  Then I said “I went into industry for a while after college but didn’t like it”.  He looked at me with sort of a puzzled look and bluntly said “why?”

Here’s the thing - product development and web development are very similar.  At their core, each is just a challenge in problem solving and that’s why I love both.  Hell, gun to my head I’d probably say that product development is more interesting than web development:  there is more freedom and the problems you can solve are more diverse.

But - and this is a big but - the barrier to entry is far more difficult in product development.  The project I was working on developing in late 2005 as an engineer still hasn’t hit the market yet…and it’s not a complex product (it’s the equivalent complexity of a web mashup that you’d build in a week).  A simple product, but we needed to do several rounds of prototypes, scout out manufacturing facilities, do consumer safety tests and other QC testing that takes months, negotiate deals with our customers like Walmart and Target to stock the product, etc.

In the entrepreneurial world, it can take five or ten years to get a product to market compared to five to ten weeks to get a website to market.  The barrier to entry costs less and takes less time, and that is why I prefer web development.  I’ve been able to get every single “great” idea I’ve ever had to market in the web world - I was able to get Music Alerts online in a weekend.   Some of the stuff has been a success, some of it hasn’t been - but I’ve been able to find out in a matter of a few years what would’ve taken fifteen years in the product development world.

Imagine spending years patenting a device, finding a capable vendor, getting a contract to sell it in Target…and then finding out consumers like your competitors brand better.  It happens all the time, and it would suck to waste $500k and 5 years to find that out.  Now, spending $2k and 2 months isn’t so bad.  I crave the ability to throw a lot of shit against the wall and see what sticks, and the web world makes that possible.

In my post earlier this morning I mentioned that this was probably the most productive week of my life. It’s partly because I’ve become an early riser, but mostly because we’ve had such success with the Detailed Image shopping cart that it’s eliminated a lot of the questions we had about our company direction. The back-end automation, SEO friendliness, and built-in upsell system have more than doubled sales and we’ve recognized that continued efforts in e-commerce are probably our best chance at using our skills to thrive as a company.

Before doing much with the cart though, we needed to clean it up a lot and add several common features that it previously lacked. Since it’s 100% custom programmed, the end result is a seamless e-commerce experience for both us and our customers that - in our opinion - isn’t rivaled by any shopping cart.

For example, with our soon-to-launch affiliate program you can apply simply by clicking a button in your ‘My Account’ section. There’s not a second registration like most sites require, and you can manage everything DI related by visiting that single ‘My Account’ page.

Anyway, in addition to Mike’s redesign and his blog redesign, I was able to complete the programming (with the aid and advice of our entire team of course) for the following features in this past week:

• Improved upsell system javascript to be more efficient and more visually appealing (example product page)
• Created the aforementioned affiliate program
• Integrated wholesale pricing tiers
• Created phone order system
• Added the ability for us to offer packages of items (and still have our inventory system updated correctly)
• Added gift certificates
• Product review system for every one of our products
• Fixed a pesky SSL problem that was causing a warning in IE7

Far and away my most accomplished week ever. Hell, if we can do all that in a week, what can we do in a few more months?

My college bill came to well over $120k for my four years of education. I personally think it was well worth every penny because:

1. I learned how to work in an environment with a lot of very intelligent individuals from across the world.
2. I was able to work with cutting edge technology.
3. I got a degree from a top 50 school in the US that was top 20 for my major.
4. I made invaluable personal and business connections that will last forever.
5. I was challenged above and beyond what I ever was prior to that, and it forced me to learn work ethic and focus and balance.
6. I probably made close to $120k back in work study jobs, research projects, internships, co-op’s, and my full time job (13 months) - all of which I got interviews through our career center…and most of which were only open to RPI students.

That said, there are a lot of people throughout the world who could cut it intellectually at some of the top colleges in the world but don’t have the resources to enroll and receive the education. MIT is now offering 1,800 classes from all disciplines online for free, many with audio/video or foreign language translations. These are valuable tools to those who don’t have access to a premium MIT education, and are even more valuable to professors in developing countries that cannot afford the teaching materials to put together proper lesson plans.

I took a look at the courses available for the Engineering Systems degree (the closest equivalent to my Industrial Engineering degree) and it looks like you could essentially piece together the entire curriculum - from entry level Calculus right through advanced logistics classes. Pretty freaking cool huh?

This could be the start of the way we look at education in the years to come (and consequently could be the beginning of the end of super high priced universities). Is anyone going to hire you if you take a full course load with these free courses? Probably not…yet.