from the world's big
Case Study: 37signals
Jason Fried is the co-founder and President of 37signals, the Chicago-based web-application company. He has co-authored all of 37signals' books, including the upcoming, "Rework," as well as the 'minimalist manifesto,' "Getting Real: The Smarter, Faster, Easier Way to Build a Successful Web Application" He also helps to maintain the company's popular blog, Signal vs. Noise, and is regularly invited to speak around the world on entrepreneurship, design, management, and software.
Big Think: What are the common mistakes new businesses make?
Jason Fried: When you borrow money from somebody else, you’re on their schedule, you’re renting time. When you have your own money, or when you’re generating money through customers, you own your own time, you own your own schedule, and so you can take your time. We can take 10 years to do something because we have revenue coming in and there’s not someone saying your loan's due in three years, you know. So I think a lot of people struggle because they start of by borrowing money and then they’re sort of on someone else's schedule and they don’t have time to sort of get in the groove. So there’s some of that. I think people just typically just try too hard, actually. That’s weird because you have to try hard to succeed, but I mean try hard on the wrong things. You focus on the wrong things too early. And those can range, depending on the business you’re in.
I guess my point is, I don’t think it’s competition that puts these businesses out of business, I think it’s the business themselves putting themselves out of business by hiring the wrong people, being afraid of making money, spending too much money early on, maybe getting a storefront that's too big if you’re a physical store. You know. Doing all that stuff when you really got to focus on the product first and keep it as small as you can and if you’re going to open a bakery, open it out of your house first. Just make – I mean, that’s probably technically illegal in some place, but make some... if you want to open a cupcake bakery, make some cupcakes and sell them at the Farmer’s market for six months, for a year first, on the weekends. See if it works. If it works, okay, now you have some people who like your cupcakes, you’re selling out every weekend. Now maybe you can move into something else. Instead of saying, "I’m going to open a bakery" and go buy a storefront and some expensive machinery and stuff like that. So I think people kind of start a little bit too quickly sometimes too and they should just make their time and starts something on the side and see where it goes.
Big Think: How did 37signals transition between business models?
Jason Fried: The big thing for us was that, we started out as a web design firm. And we were doing client work for hire—web design work for hire. And it was great. We were doing really well and things were going all right. And then we hit on this idea to make project management software. Right? But we didn't stop our client work business to build software. We started building software on the side. So we treated the new product like Base Camp, which was our first product, as a client. So we still were doing client work. So there was an overlap. So we kind of treated Base Camp as a side project, as a side business and let’s see what happens. And it turned out in a year or a year and a half later, it was making more money for us than our consulting business. So then we could stop doing consulting—which was a great day—and sell software instead.
But we didn’t say, like we’re going to stop doing consulting and start doing software the next day because that’s very risky. And I’m not a big fan of risk. I know like the whole entrepreneurial myth is like you know, the risk, take on risk and the entrepreneur with the risk. I just don’t buy that. So I think side businesses, trying something on the side, spending a few hours a week, seeing where things go first is the right way to do it. And especially if you have a day job. People dream of starting their own business, I don’t recommend people quit their day job and start their business. I think you should start your business on the side a couple of hours a night, a couple of hours a week, see what happens. You know, use your day job salary to pay the bills, to fund your new idea, and then maybe a year later you’ll be all right and you can do that. So, the business model shift for us was a slow and gradual shift making sure we were able to sustain ourselves on the new model before we give up the old model
The co-founder of the web application firm discusses common pitfalls of starting a new business and the need to be flexible with your business model.
Researchers are using technology to make visual the complex concepts of racism, as well as its political and social consequences.
- Often thought of first as gaming tech, virtual reality has been increasingly used in research as a tool for mimicking real-life scenarios and experiences in a safe and controlled environment.
- Focusing on issues of oppression and the ripple affect it has throughout America's political, educational, and social systems, Dr. Courtney D. Cogburn of Columbia University School of Social Work and her team developed a VR experience that gives users the opportunity to "walk a mile" in the shoes of a black man as he faces racism at three stages in his life: as a child, during adolescence, and as an adult.
- Cogburn says that the goal is to show how these "interwoven oppressions" continue to shape the world beyond our individual experiences. "I think the most important and powerful human superpower is critical consciousness," she says. "And that is the ability to think, be aware and think critically about the world and people around you...it's not so much about the interpersonal 'Do I feel bad, do I like you?'—it's more 'Do I see the world as it is? Am I thinking critically about it and engaging it?'"
President Vladimir Putin announces approval of Russia's coronavirus vaccine but scientists warn it may be unsafe.
A new coronavirus vaccine on display at the Nikolai Gamaleya National Center of Epidemiology and Microbiology in Moscow, Russia.
Credit: Alexander Zemlianichenko Jr/ Russian Direct Investment Fund via AP
Medical workers draw blood from volunteers participating in a trial of a coronavirus vaccine at the Budenko Main Military Hospital outside Moscow, Russia.
Credit: Russian Defense Ministry Press Service via AP
A scientist in Sweden makes a controversial presentation at a future of food conference.
- A behavioral scientist from Sweden thinks cannibalism of corpses will become necessary due to effects of climate change.
- He made the controversial presentation to Swedish TV during a "Future of Food" conference in Stockholm.
- The scientist acknowledges the many taboos this idea would have to overcome.
Depiction of cannibalism in the Medieval ages.
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A report from the New York Times raises questions over how the teletherapy startup Talkspace handles user data.
- In the report, several former employees said that "individual users' anonymized conversations were routinely reviewed and mined for insights."
- Talkspace denied using user data for marketing purposes, though it acknowledged that it looks at client transcripts to improve its services.
- It's still unclear whether teletherapy is as effective as traditional therapy.
Talkspace.com<p>Former employees also questioned the legitimacy of certain interventions by the company into client-therapist interactions. For example, after one therapist sent a client a link to an online anxiety worksheet, a company representative instructed her to try to keep clients inside the app.</p><p style="margin-left: 20px;">"I was like, 'How do you know I did that?'" Karissa Brennan, a therapist who worked with Talkspace from 2015 to 2017, told the Times. "They said it was private, but it wasn't."</p><p>Other former employees said the company would pay special attention to its "enterprise partner" clients, who worked at companies like Google. One therapist said Talkspace contacted her for taking too long to respond to Google clients.</p><p>Talkspace responded to the Times with a Medium <a href="https://medium.com/@founders_22883/talkspace-founders-respond-to-a-new-york-times-article-78d6f5c45c59" target="_blank">post</a>, which claimed the Times report contained false and "uninformed assertions."</p><p style="margin-left: 20px;">"Talkspace is a HIPAA/HITECH and SOC2 approved platform, audited annually by external vendors, and has deployed additional technologies to keep its data safe, exceeding all existing regulatory requirements," the post states.</p>