This week I caught up with Robert Castaneda, founder of CustomWare Asia Pacific, for an interview. Robert started CustomWare in July 2001, just before he left university. Eight years later the company has over 70 staff, offices in Sydney, Melbourne, Singapore, Kuala Lumpur and Wellington and revenue of around $8 million. He lives in Menlo Park, CA, USA.

Adam: It’s not unusual for technology professionals to move into the consultancy business but what inspired your move?

Robert: After working in the USA during the dot com period, I moved back to Australia and began CustomWare. I was inspired by my mentor at the time, whom I worked for in the USA who also ran a consultancy firm. My first job in IT was on the developer support helpdesk at Borland and I always had great enjoyment solving other peoples’ problems.

Adam: Starting your own business is challenging yet deeply gratifying what have you enjoyed the most about the process?

Robert: The most rewarding part for me is being able to hire young team members and watch them grow and contribute to the company and community. Some of them go one to get married or work in other places, some stay with us, and a few have left the company, travelled around Europe and then returned. It is always good to keep in touch with them, as the industry is very small.

Adam: You lectured at the University of Technology casually for a while, did you find this a rewarding experience?

Robert: It was and still is a great experience. When you have to teach something, you actually have to know it, so being a teacher meant that I had to learn quickly and be able to research, summarize and be able to apply what I had learnt very quickly. I think combined with my support skills that I had learnt early on, it provided a great background in being able to quickly adapt to change.

Adam: You travel extensively covering some considerable distances what technology enables you to keep in touch?

Robert: Right now I am doing this interview on a train in California! The internet is so accessible these days, when I started we had dialup modems! I currently use a Palm Treo and a Dell Tablet PC. I do make use of many cloud technologies – such as Amazon based offerings such as Jungle Disk and SmugMug. I recently scanned my entire filing cabinets at home and now store them in the cloud so I can get to my information at any time.
It is easy for people to get caught up in technology and forget about methodology – meaning that learning efficiency and time management skills, like Dave Allens’ Getting Things Done (GTD) are a really important first step, and then you can apply technology from there.
Internally at CustomWare, we have a really cool wiki that we use to keep in touch, it is based on Atlassian Confluence.

Adam: Many technology and consultancies have been heavily impacted by the recent economic downturn, what are your top tips for weathering the current storm?

Robert: The formula is the same:
- Listen to your customers
- Provide Value

Adam: How would you describe your management style?

Robert: I like to ensure that my managers are in control of what they are responsible for and I try my best to keep out of their way and still be supportive. I am very big on data and keeping measurements and KPIs. I view our organization structure as an upside down team, with our leadership team supporting the each other.

Adam: Has this style evolved as your business has grown?

Robert: Certainly, when you run a small business, you can communicate directly with everyone face to face and keep aligned in the one direction. As you grow, you just can scale to do that in the same way, so you definitely need to change your style. It can be frustrating and for some, it can be too difficult a transition to make. In a larger business with more people, the idea behind the business is less relevant and the alignment of the team to achieve the companies goals are more important

Adam: Your offices are separated by vast distances yet there seems to be a cohesive culture throughout, how do you ensure that this is the case?

Robert: We have strong company values that we really believe in, top down – those are:
- Delight the Customer
- Share the Knowledge
- Think Team
- Focus on the Outcome
- Talk Straight

These apply to all offices, we also have a lot of travel between our offices that helps with improving working relationships. Another thing that we decided early on is that our org chat isn’t the same as our geographic location – meaning that our teams are spread internationally.

Every week 4, 8 and 13 of each quarter, we have an all hands meeting that lasts for 1 hour – every team presents for 4-5 minutes. Our rhythm is especially important to our culture and as mentioned above, our internal wiki helps with blogs etc. and general keeping in touch.

Adam: Can you tell us a little about your involvement with The Global Student Entrepreneur Awards?

Robert: Each year, as part of the Entrepreneurs’ Organization, we run a global competition to find the best student entrepreneurs around the world. The regional winners fly to the US for the global final and a winner is selected. I am the chair for the GSEA in Australia and run the competition in Australia. The core idea of the competition is to encourage students who run businesses to celebrate them and stick to them after they graduate, not just to use them to fund their way through college/university and then get a corporate job – we’d love them to create jobs, not just take jobs!

Adam: What more do you think can be done to help foster entrepreneurial spirit in the next generation?

Robert: I think that there are vast resources out there these days that did not exist even 10 years ago, the biggest barrier I see is that many businesses fail, and for some people the risk is too high. The best resource is meeting other people – no amount of reading or studying can replace that!

Adam Toren

Gary Vaynerchuk is the Director of Operations of Wine Library, a wine retail shop in New Jersey. He gained fame as the host of Wine Library TV, an internet webcast on the subject of wine.

This year, Gary signed a 10-book deal with HarperStudio. His first book, Crush It!: Why NOW Is the Time to Cash In on Your Passionwas published this month.

“We’re fond of constraints that inspire creativity. Constraints inspire us in how we approach the press, how we approach business relationships, how we do everything.” Jack Dorsey.

It’s quite sobering to think that someone at the ripe old age of 29 could come up with a such a simple idea, that has the ability to change the very way that we communicate socially. The emergence of Twitter, which is still enjoying meteoric growth, came about somewhat by accident and still represents a phenomenon that is to a certain extent, without direction.

Jack Dorsey, born November 19, 1976, had an idea that eventually morphed into what we now know as Twitter, when he was only 24 years old. Born in St. Louis, Missouri, he had already exhibited an interest in software development by the age of 14 and was to invent open source software applications related to taxicab and messenger route dispatching. His initial efforts were picked up by several organizations in his home city and are still in existence to this day.

Following college at the University of Missouri and in New York, he moved to California. At the time, instant messaging was really starting to take off, with AOL’s Instant Messenger service being particularly popular. Dorsey took a look at this and wondered whether he could combine his earlier ideas to provide a service sending status messages. “What if you could share your status with all your friends really easily, so they know what you’re doing, but you don’t want to have to write a whole blog entry or Live Journal entry?”

As time went by and Jack was busy working on a web based dispatch solution, he considered whether SMS text messaging could be incorporated into his interactive status messaging concept. Podcasting service Odeo became aware of his interest and collectively they decided that they should go ahead and build a prototype that was to become Twitter. Dorsey and fellow geek Biz Stone honed the concept in just two weeks.

Evan Williams, a former Google executive, provided investment funding and together with Dorsey and Stone co-founded an operation to host Twitter, Inc. By early 2006 they were ready with the first incarnation, but did not really have an active launch strategy. By August of 2006, however, the word was starting to spread that the service existed and even though they didn’t have a marketing presence of any kind set up as such, Twitter was born.

Since that time, the organization has been focused merely on keeping up. Expansion has been off the charts and it has taken every bit of effort from Dorsey (who was until recently the CEO) and the others merely to keep up with the demand. Every couple of weeks the user base was doubling as people really took the concept to heart.

The very idea of Twitter appeals to the human need to socialize and to keep in touch. As we all lead such busy lives, the idea of being able to send a very brief, 140 character or less, simple status message back and forth has a certain attraction.

To this day, Twitter is still self-funded by Evan Williams and there seems little pressure for them to create a business model, which is completely non-existent at this point. Other investors have offered to buy out the organization and it has been estimated that it might be worth a market capitalization of somewhere in the region of $1 billion. Nevertheless, Dorsey and Stone remained grounded. They want to keep in control of what they are doing. “We’re looking for a very simple investment and a very clear financial base and hopefully enough to get us a way out so we can focus on building a great product.”

While they have admitted that they are looking at several different models to help them achieve revenues, their main focus is just growing the service and staying true to the original philosophy. Meanwhile Dorsey has stepped down as CEO to become chairman of Twitter as he considers the implementation of his next brainwave idea.

Adam Toren

This week I have been lucky enough to interview Andrew Warner.

Andrew is the creator of Mixergy.com which helps ambitious people, who love business learn from a mix of experienced mentors.

Adam: You’ve described yourself as a “passionate salesman my whole life”. Business is clearly in your blood; when did you first recognise this, and what factors do you think contributed to this?

Andrew: When I was young I noticed that bleeding-hearts talk about peace and how the world would be better if we all loved each other. Meanwhile, entrepreneurs work like mad and actually help make the world a better place. Every week, I communicate with people all over the world using technologies built by companies that didn’t exist a decade ago. These interactions go a long way to creating a peaceful world. That’s the kind of contribution that entrepreneurs make.

Adam: The Mixergy mission is all about empowering and inspiring individual entrepreneurs. Is helping other people achieve their full business potential something you feel very strongly about?

Andrew: At a regular job, when you don’t know your way, you have a boss and coworkers to help you figure things out. But what happens when you’re an entrepreneur? You can lose money, confidence or worse. My goal is to give entrepreneurs mentors that they can learn from. Mixergy brings together some of the most successful online entrepreneurs so they can teach what they learned as they built their businesses.

Adam: You’ve been very open about some of the setbacks you’ve faced. It’s inevitable that every entrepreneur will meet hard times; what do you feel are the lessons you’ve learned from things not going the way you had hoped?

Andrew: I saw my biggest failures long before they happened. I just didn’t have the guts to admit it to myself.

Adam: How important is the social networking revolution to Mixergy.com? Does your brand “stand alone”, or do you think that no internet venture can survive without Tweets and Facebook fans?

Andrew: If your readers don’t know the answer to this question, they don’t belong on your site.

Adam: It’s arguable that an economic downturn could actually increase the number of people looking to start their own business. Have you found there to be greater interest in your seminars in recent times?

Andrew: I don’t do seminars. I do think that everyone should be an entrepreneur. It’s easy and cheap to setup a business online. I don’t understand why someone would miss out the eduction and revenue that comes from a business of their own.

Adam: The idea of leaving a legacy is obviously very important to you. Is this a personal ambition, a business strategy, or both?

Andrew: You tell me. What do you think is a more energizing approach to entrepreneurship? A goal of just making a few bucks? Or an aspiration to change the world?

Adam: After phenomenal success with Bradford – Reed, you described yourself as “burned out”, which led to you taking a period of time out. Did this experience alter your approach to achieving a work / life balance, and do you feel it’s helped you to manage your time more effectively?

Andrew: I’ll give you one example of how I changed and how having a life outside of work can help an entrepreneur. When I ran Bradford & Reed, I didn’t think ambitious people should waste their time being social. Not only wouldn’t I go out to dinner with anyone, but I avoided small talk. Now I have people over for dinner, drinks, brunch, etc. While it’s not directly related to work and I often relax and just enjoy myself, it’s led to valuable business relationships that I couldn’t have had otherwise.

Adam: What personal qualities do you consider essential to anyone wishing to forge their own path in business?

Andrew: If you have the ability to maintain your confidence when the world around you seems to be falling apart, you’ll think more clearly and act more decisively.

Adam: Mixergy.com events encourage successful people to share their ideas and experience, and inspire other entrepreneurs too. Which business leaders do you consider to be role models, and why?

Andrew: I still love Andrew Carnegie. The man raised himself by his own bootstraps and became the richest man in the country. Then he turned around and hired a researcher to study him and his successful friends so others could follow in their footsteps. Before he died, Carnegie left his money to charity and inspired other entrepreneurs, like Bill Gates, to give their money to worthy causes instead of leaving it all to their kids.

Adam: Where do you see yourself, and Mixergy.com, in 5 years time?

Andrew: I’m going to spend the next few years interviewing the most successful online entrepreneurs and passing on what I learn from them.

Adam Toren

“Don’t judge yourself by others’ standards … have your own. And don’t get caught up into the trap of changing yourself to fit the world. The world has to change to fit you. And if you stick to your principles, values and morals long enough, it will” – Berry Gordy Jr.

The auto industry has had a significant effect upon American popular musical culture in a way that many people may not have entirely realized. If it had not been for the booming automotive business in the ‘twenties, Berry Gordy Jr’s family might not have moved to Detroit. After a stint with Lincoln – Mercury, as the young Berry envisaged a way that he could associate the “production line” activity with a method of producing future artists, he created a spark. This vision would help him to develop a business that was to have a permanent effect on the black entertainment industry and the music world in general.

During times when racial tensions were still prevalent in America and the country was still somewhat divided and often inhospitable, Gordy was responsible for steering a musical path through the troubles and helping to unite a somewhat torn country. His contribution to the music industry cannot be overestimated and he will be viewed in the annals of history as an iconic figure.

Gordy’s story is one of a classic “rags to riches.” He was born into a middle-class working family, who would move from Georgia to Detroit as the automotive business established a strong growth pattern. Following an initial stint with the Army, time served in Korea and an early position as a record store manager, Gordy began writing songs in the mid-’fifties and producing fledgling artists. As a songwriter, his big break was the famous “Reet Petite,” picked up by Brunswick Records in 1957 for the singer Jackie Wilson. This track went on to achieve significant international exposure. A few more hit singles were to follow before, in 1960, Tammie Records, (to go on to become Tamla, Motown and ultimately Tamla Motown) was formed. Several labels were incorporated within this company and managed out of a now famous suburban house in Detroit – “Hitsville USA.”

Motown was soon to become a label with national reach, following the hit “Way Over There,” by the Miracles and other releases. A veritable “who’s who” of emerging artists were to flow through the doors of the unassuming house, including the Supremes, Marvin Gaye, the Temptations, The Four Tops, Martha and the Vandelles, Gladys Knight, Stevie Wonder and the iconic Jackson Five.

Throughout this period of growth, Gordy remembered his time at the auto plants. “Every day I watched how a bare metal frame rolling down the line would come out the other end a spanking brand new car. Maybe I could do the same thing with my music … create a place where a kid off the street could walk in one door an unknown and come out another door a star.”

Berry Gordy ensured a strict “production line” of his own would apply within Motown. Each track had to be simple, yet catchy, have a recognizable hook and a certain element of intensity. By all accounts he was a strict taskmaster and insisted that all his artists were schooled in the arts of presentation, composition and professionalism. Within this somewhat regimented approach however, Gordy did not lose sight of creativity. “It still had an atmosphere that allowed people to experiment creatively and give them the courage not to be afraid to make mistakes.”

During the late ’sixties and early ’seventies, Gordy decided to relocate to Los Angeles and closed Hitsville. From then on, his company grew further into an entertainment conglomerate. The company moved into movie production, with a string of hits to its credit.

While Motown did not continue to live up to the heady heights of the ’sixties and ’seventies, it nevertheless was responsible for establishing Smokey Robinson, Stevie Wonder, Lionel Richie and the Jacksons as household names. Ultimately, Motown was sold to MCA in 1988.

At its height, it is estimated that Motown’s “production-line-track-machine” was responsible for creating hits from three out of every four releases, a figure that has not been repeated. Gordy described this phenomenon as “the sound of Young America” and his movement was certainly responsible for revolutionizing American popular music. “We stuck to who we were at Motown, and the world came around.”

Matthew Toren

I recently had the pleasure to interview David Nilssen – who is without a doubt, a very impressive Young Entrepreneur!

David Nilssen is co-founder and CEO of Guidant Financial Group, Inc. Guidant helps aspiring entrepreneurs to invest their retirement funds into a business or franchise without taking a taxable distribution or incurring penalties. A strong believer in broad diversification and hands-on investing, Nilssen is regularly invited to speak at top venues throughout the country as a leading expert in alternative small business financing. Along with his 100+ employees, Nilssen has helped nearly 6,000 individuals use their retirement funds to invest in alternative assets.

Under his leadership, Guidant was named the 6th fastest growing company in WA, and is currently known as the largest provider in the franchise financing industry. Its success has earned the company top national and regional recognition, including: U.S. Chamber of Commerce Blue Ribbon Small Business (2007 & 2008); Bellevue Chamber of Commerce Eastside Small Business of the Year (2007); Washington CEO Magazine Best Companies to Work For (2007 & 2008); and U.S. Chamber of Commerce NW Small Business of the Year (2007). In 2008, his firm was included on the Inc. 500 list (#384).

In 2007, the Small Business Administration (SBA) named Nilssen the national Young Entrepreneur of the Year award, and the Puget Sound Business Journal named him one of the top 40 entrepreneurs under 40 years of age. In 2008, Ernst and Young named him a finalist for their coveted Entrepreneur of the Year award.

An avid investor himself, Nilssen has purchased millions of dollars in real estate and helped to initiate many businesses within the service industry, including a real estate agency/property management firm and real estate development company. Nilssen, and his company, have been highlighted in media sources such as CNBC, Fortune Magazine, The Los Angeles Times and The Wall Street Journal.

Adam: What is the start-up story behind your business venture?

David: I was developing real estate in Bremerton, Wash., in 2002. The market was prime! That year, a friend introduced me to a real estate broker from Bellevue, Wash., who had built a business around helping investors find both speculative and income producing properties. Soon after meeting, we decided to work together on a major real estate project – one that required more capital than we had. When we asked our attorney for her advice on raising additional funds, she suggested we look at self-directed IRAs as a potential source of investment capital. Although it was still a fairly new concept to her, she explained that one could actually invest their retirement assets in real estate without taking a taxable distribution or incurring penalties. I specifically remember looking across the table at my business partner and thinking “What?!” If that was true, I could see it being huge for my real estate development business.

That meeting with our attorney launched a frustrating research and development project. It was frustrating because there were only a handful of companies that provided “real estate IRAs” and they all had different interpretations of the laws, their fees were expensive, and their processes were slow and complicated. After some heavy duty research and paperwork, we finally got a handle on the process and helped one person invest their IRA funds in one of our projects. We were amazed – and so were they, when they got a fantastic return in less than 12 months! Word got out, and the phone started to ring…. This business was started by an accident of fate, but we ran with it. We hired the right team and built a customer-centric organization around investing with self-directed IRAs. Six years later, we made the Inc. 500 list!

Adam: What is your definition of success, and has your company achieved it?

David: Have we achieved success? Sure – a level of it. Our clients have been very successful because we’ve given them access to alternative investments and to a level of personal financial control many never knew was possible. To me, their success is also ours. I have an insatiable appetite for both personal and professional development, and I’ve been privileged to watch Guidant play a role in this development in clients and employees. Despite inevitable ups and downs, my belief in our mission and the viability of our products remains as high as ever. While we have definitely achieved a high level of success, I believe we will enjoy even more success in the future.

Adam: To what do you attribute your company’s recent achievements?

David: I believe our achievements are due to the fact that we hired a great team, focused on our customers as unique individuals with unique needs, and we continue to invest in scalable technology. Each year we realize productivity gains because we continue to improve our customer experience without having to scale overhead.

Adam: What 4 pieces of advice would you give to aspiring entrepreneurs?

David:

A. “Don’t take yourself so goddamn seriously.”

Although it can apply to all aspects of life, when it comes to business, this quote by Ben Zander is one of my very favorites. I often find that too many new entrepreneurs are afraid to be wrong, or they’re not open to outside feedback or employee perspectives. You don’t have to do it all, you don’t have to pretend you’re invincible, and it’s okay to be wrong!

B. Invest in technology so your business can scale!

It seems expensive at first, but if it’s done right, it will pay significant dividends as your business grows.

C. Hire potential first, experience second.

Some of the greatest hiring investments we ever made were in people who had infectious energy, tremendous ambition and a passion for teamwork and excellence.

D. Have fun.

I have to include this! You spend more time at the office than you do with your family. So believe in what you do, love those you work with and enjoy the time you’re there. If you don’t, then it becomes just a job — one with 100 times the stress!

Adam: Describe/outline your typical day?

David:

5:30 a.m. Wake up and have breakfast

6:15 – 7:30 a.m. Work out at the gym

8:00 a.m. Head to work after grabbing a Starbucks and a newspaper

8:00 – 9:00 a.m. Work on projects for the Seattle Entrepreneur Organization (I’m a Board member)

9:00 – 11:30 a.m. Attend various meetings, participate in conference calls and respond to email

11:30 – 1:00 p.m. Lunch (Generally a meeting)

1:00 – 2:00 p.m. Catch up on email (It’s never-ending!)

2:00 – 3:00 p.m. Have one-on-one’s with staff

3:00 – 4:00 p.m. Research and write for blogs or articles

4:00 – 5:00 p.m. Re-cap with senior executives

5:00 – 6:00 p.m. Plan for tomorrow’s meetings

6:00 – 8:00 p.m. Dinner

8:00 – 10:00 p.m. Catch up on TIVO or read a book

10:00 p.m. Head to bed and think about where the next phase of growth will come from, how we stay ahead of our competition, what training to give staff… Eventually I get back up about 11:30 p.m. and start responding to email again. An iPhone is dangerous for insomniacs!

Adam: Where did your organization’s funding/capital come from, and how did you go about getting it?

David: We started Guidant with less than $10,000 and a couple of laptops. The company was cash-flow positive from the get-go. Recently, a few of our executives asked to invest in the company. We felt like this was a great example of a team truly believing in the company’s potential, so there are a couple of convertible notes outstanding.

Adam: What stops you from throwing in the towel and giving up during those frustrating days of running your business?

David: You get frustrated because you are not seeing the results you want and that you know are possible. If you sincerely care about the business, then you generally don’t want to throw in the towel. There is a greater responsibility that an entrepreneur feels. If you are a great entrepreneur, you recognize it’s not all about you. It’s about your staff, your clients, your partners – and then you. If you are a servant leader, giving up is never an option.

Adam: Do you believe there is some sort of pattern or formula to becoming a successful entrepreneur?

David:

* Be manically focused on your vision
* Hire great people
* Love what you do
* Do the right thing no matter what

Adam: Who has influenced you most and been your greatest inspiration?

David: There have been so many!

My grandfather was an amazing man. As an Oakland, Calif. police officer he saw the worst side of people and yet he always seemed to see the good in others. He was a dedicated husband, an amazing father, a charitable person and a good friend.

When I need a personal pick-me-up, I turn to Anthony Robbins. His message is phenomenal – it’s not what happens to you but how you respond to it. It’s your choice. You have the ability to determine your “state,” and I try to remember that every day.

Ben Elowitz at Wetpaint.com has been a tremendous mentor to me. Ben started FatBrain.com, an online bookstore that eventually sold to Barnes & Noble. Then he co-founded BlueNile.com, which he sold via an IPO. Ben has taught me that only I get to determine how much I can accomplish.

Adam: What book has inspired you the most?

David: I read Rich Dad, Poor Dad by Robert Kiyosaki when I was 20. I quit my job three months later and have never had (as my grandfather would say) a “real job” since. Although it is definitely not my favorite business book, it does provide a simple explanation as to why owning a business is the greatest investment on the planet.

A great book I’ve recently read is The Breakthrough Imperative. It’s a phenomenal book about how great managers get tremendous results. It was written by Mark Gottfredson and Steve Schaubert who are both directors for Bain and Co.

Adam: How do you go about marketing your business? What has been your most successful form of marketing?

David: Our marketing budget is heavily weighted toward channel marketing. Our business helps people buy alternative assets inside their retirement plan. The two most common investments made by our clients are real estate and small businesses. Because of that, we spend a tremendous amount of time building relationships with professionals who are involved in those types of transactions. (i.e., real estate agents, business brokers, etc.). Search engine marketing is also a major part of our promotional efforts. Lastly, we have a comprehensive content strategy that has allowed our web site to increase its value for natural searches.

Adam: In one word, characterize your life as an entrepreneur.

David: Unpredictable.

Adam: Excluding yours, what company or business do you admire the most?

David: Earlier I mentioned Ben Elowitz and his company WetPaint.com. I am enamored with Wetpaint because of its ability to allow anyone – especially those without technical skill, to create and contribute to web sites written for – and by, those who share a passion or interest. To do this, Wetpaint combines the best aspects of blogs, wikis, forums and social networks so anyone can click and type on the Web. They have created well over a billion websites in just two years off their platform.

Adam: How do you achieve balance in your life?

David: Ha! That’s funny.

Adam: Where do you see yourself and your business in 5 years? 10 years?

David: Guidant Financial Group will continue to be a thought leader in small business and self-directed IRAs. Five years from now, Guidant will have many sister companies, all of which are focused on helping individuals and entrepreneurs take a more active role in their investments.

As for me – I will continue to be a board member for Guidant, but I do not see myself as the “Chief” much longer. Over the next few quarters, I will look to take on an evangelical role for the company which will allow me to do what I do best (and love to do!).

Guidant wasn’t my first business, and it certainly will not be my last. There are many more to come!

Adam: If we could introduce you to anyone, who would it be and why? (You never know who we know!)

David: That’s easy: Magic Johnson. I was a HUGE Lakers fan growing up, and Magic was/is my all-time favorite basketball player. He’s had phenomenal success, faced tremendous adversity and is a very successful businessman.

A very close second would be Anthony Robbins – mainly for the same reasons, but he also inspires and motivates me.

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Adam Toren