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The Start-Up Recipe

Each day, Inc.’s reporters scour the Web for the most important and interesting news to entrepreneurs. Here’s what we found today. Your start-up, Julia Child-style. With a flip of her whisk and a cheery exclamation, Julia Child taught the world to cook. More profoundly though, she inspired the world to follow their passions. It is fitting, then, for the entrepreneurial world take a note from her (recipe) book when concocting a delectable start-up. Serial entrepreneur Tod Whipple contributed the perfect start-up recipe to VentureBeat this morning, describing how one cup of well-blended startup team, one raw prototype, and a dash of pivot are mixing bowl basics. But, it’s still up to you to find some secret ingredients. How these Davids took on Goliaths. PepsiCo’s Quaker is the biggest name in oatmeal. How did scrappy Better Oats—by family-owned cereal-maker Malt-O-Meal—grab a market share? By using natural ingredients, packaging them in smaller boxes to please retailers and in pouches useful for measuring water to please consumers. Now, you can find Better Oats in 21,000 retail stores, Fortune reports . It also chronicles the rise of a competitor to Ticketaster , as well as a start-up accounting firm that managed to crack into the Big Four . Screw banking. Let’s start a company. A decade ago, it was great to be an investment banking analyst. Now, three years after the financial crisis, it seems the idea of going into the world of finance has left a sour taste for many business school graduates. Many of them, reports DealBook, are turning to entrepreneurship. “It’s a trend that is accelerating in the wake of the financial crisis as Wall Street loses its luster and Silicon Valley shines with a new crop of multibillion-dollar start-ups,” the article notes. Startup Tribe at Harvard, for example, is a student-run community that fosters entrepreneurship among its members. “We’re a scrappy, adaptive community” one of the group’s members told The Times. Game systems need time to recoup. If you’re eagerly awaiting your next Xbox or Playstation upgrade, you could be waiting longer than you might have thought— eight or nine years, even . Microsoft and Sony are in no rush to release anything new to customers, according to The New York Times. The reason? Cost. “It’s less of a surprise that Nintendo is sticking to the traditional upgrade cycle than the fact that Microsoft and Sony are not,” says Evan Wilson, a video game financial industry analyst with Pacific Crest Securities. “It speaks to the fact that Microsoft and Sony both lost so much money.” Another frickin’ deals site. This month New York magazine will launch New York Deals, a weekly e-mail chock full of New York City deals for eating, shopping, events and activities. Curated by New York staffers, the magazine is also teaming up with Gilt City, Zozi, BuyWithMe and Lifebooker. More here. The secret to Google’s HR process. We’ve all heard stories about the luxurious lifestyle at the “Googleplex”—the gourmet cafeterias, the pools, and being allowed to bring your puppy to work—but getting the job is no easy task. Google only takes the brightest, most exceptional workers in the world and former Google CEO Eric Schmidt provides a little more insight. If you want to join Google’s 24,400-plus employee family, get ready for a lot of interviews. Schmidt said Google has brought in candidates as many as 16 times before ultimately letting them in. Amazon launches haute shopping site, MyHabit. Following in the footsteps of Gilt and Google’s Boutiques.com, retail giant Amazon announced it’s launching its own members-only fashion sales site today, MyHabit. The site will feature discounts up to 60 percent off of women’s, men’s, and children’s fashion from designers such as Halston, Vera Wang, and Doo.ri. Headed up by Amazon’s former accessories VP, Maria Renz, the site also boasts four-day free shipping, zoom-friendly photos, and high resolution videos of the clothes on real models (no wonky mannequins). More from Inc. magazine: Get this delivered to your inbox. Follow us on Twitter. Follow us on Tumblr . Like us on Facebook. Continue reading

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New Boom in Silicon Valley

Each day, Inc.’s reporters scour the Web for the most important and interesting news to entrepreneurs. Here’s what we found today. Office-space shortage in the South Bay. If you’re planning on setting up shop in Palo Alto with all of the other tech companies, you better get a move on. O ffice spaces are filling up , fast. The Wall Street Journal reports that what just months ago looked like a lukewarm housing and office-rental market in the Valley is once again hot. According to Jones Lang LaSalle, there’s been a 25 percent jump in office-space rent in the area from last year, the biggest one-year jump since 1999. Giants such as Google, Facebook, and others are responsible for taking most of the space that was once available. By the end of the year Google plans to increase its staff by 25 percent and we’re all familiar with Facebook’s big expansion plans in the Valley. Office space that was once available for the overflow, in Mountain View, is almost completely taken, leaving companies such as Polycom, LinkedIn, and the Nook e-reader division for Barnes & Noble (to name a few) still searching for places to call home. Push to balance start-up gender ratios. In a continued effort to increase the number of female entrepreneurs, Pipeline Fund Fellowship is launching a program to to train women how to be angel investors, Mashable reports. A new organization itself, Pipeline Fund Fellowship has selected 10 participants for it first session in New York City and has plans to expand to San Francisco and Los Angeles next year. All 10 participants have agreed to invest $5,000 into the company the group selects at the conclusion of five workshops based in New York. Now, the organization is accepting applications for “women-led, for-profit social venture” companies to attend the program’s pitch summit in June. Sound practices. Just days after we at Inc.com explored the topic of sonic branding —all those bells and chimes and familiar tunes you hear in ads, for example—Aflac’s gone and gotten a new voice for its signature duck. Why do you care? Because that hapless little duck mascot helps bring in more than $13 billion a year in premiums. And since firing comedian Gilbert Gottfried from the role and hiring 37-year-old radio ad salesman Daniel McKeague, investors have applauded, sending Aflac shares up 1.3 percent—or $324 million in shareholder value, the New York Post reports . Friendster’s facelift. Before Facebook and Twitter, there was Friendster. At its peak, the site had over 100 million users, but in recent years the site has seen a steady decline in new registrants, especially as a flurry of younger and more nimble social start-ups entered the market. But the “ghost town,” over at Friendster’s offices, as the New York Times puts it, is poised for change. The Times reports that Friendster’s management plans to strip older material from the site’s archives, including photos, early messages and posts, in an effort to freshen up the interface. Deleting a user’s history, especially when that content contains personal—and emotional—material, can be a sore subject for some. “The mass deletion of so much evidence of embarrassing wardrobe choices and unrequited crushes might come as a relief to some, especially in an era when it seems that everything uploaded to Facebook can haunt people forever,” the article notes. “But some say Friendster has unexpectedly turned into a time capsule with snapshots of who they once were.” Aww. Hello, my name is… What’s in a name? Apparently a lot when it comes to executive status. TechCrunch reports that LinkedIn recently analyzed its vast network of professionals and identified names over-represented by CEOs . Surprisingly, Tom, Dick, and Harry did not make the cut, but other common monikers like Bob and Sally ranked at the top. LinkedIn also broke down the most popular names by country with unsurprising results. Charles was king for the U.K., Wolfgang was Germany’s wunderkind, and Guido was big cheese in Italy. Succeeding in business without really trying just got easier in the United States as well. Just change your name to Howard. Party like it’s 1999. Back before it was a multibillion-dollar company with thousands of employees, Google was a start-up website with just enough people to fill a San Francisco cable car. If you need a mental health break, hop in the way-back machine and check out TechCrunch’s video of a meeting from the end of 1999 that ends in silly string and cake. Charlie Sheen’s guide to better entrepreneurship. Despite losing his job and exposing his insanity to the world over countless interviews, performances, and stunts, Charlie Sheen somehow manages to continue winning. Many will dismiss Sheen’s antics, but if you listen closely, there are little golden nuggets of wisdom buried within his drug-induced raves. VentureBeat compiled Charlie’s six most memorable quotes and examined them under an entrepreneurial lens. The result? Advice that’s as hilarious as it is helpful. Now that’s bi-winning. More from Inc. magazine: Get this delivered to your inbox. Follow us on Twitter. Follow us on Tumblr. Like us on Facebook. Continue reading

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Complete Rules of Entrepreneurship

Each day, Inc.’s reporters scour the Web for the most important and interesting news to entrepreneurs. Here’s what we found today. Entrepreneurs, defined. Merriam-Webster defines an entrepreneur as “one who organizes, manages, and assumes the risks of a business or enterprise;” however, Business Insider columnist James Altucher believes this definition is inadequate. Altucher, who has started, invested in, and advised dozens of businesses, has created his own definitive 100 rules for being an entrepreneur. Most of the rules on this comprehensive list address the initial challenges of launching a new business—but some rules also apply to those larger, more stable, companies as well. Which rules do you follow? What’s missing from the list? Let us know below. Is the start-up bubble just “blubble?” That’s the word Michael Arrington is using, at least. In a TechCrunch piece published this weekend, Arrington asserts that the state of the start-up world is a far-cry from the 1999 to 2000 years of cash and burn. “This isn’t a bubble,” he writes. “It’s more like a Blubble. A blubble? Yes, a blubble. Because there is a lot of whining going on.” Arrington asserts that start-ups 11 years ago were encouraged to raise hundreds of millions in venture capital and spend it on anything remotely useful, while today’s start-ups are much leaner. High valuations on Facebook and Twitter have stoked the “bubble” buzz, he says, but start-ups are hardly raising enough funds to start using the B-word officially. Well, most start-ups at least. “Absolutely no one is telling start-ups to raise and spend money as fast as they can. With the possible exception of Color. I have no idea what those guys are up to over there in crazy picture-sharing land.” Happy employees work here. In the mist of a gradual economic recovery, how do you retain employees? Fortune highlights the best practices from three companies that made this year’s 100 Best Companies to Work For list: Zappos, DreamWorks Animation, and Teach for America. Some of the perks include a live-and-work-from-anywhere policy, free dry-cleaning, meals and medical care on campus, and the ability of veto hiring decisions if a job candidate doesn’t fit the company culture. One recruiting manager, Christa Foley, says: “We’re looking for people who don’t take themselves too seriously.” The company she works for interviews job candidates in rooms with weird names, such as an Oprah-style talk show set where candidates sit on a couch next to their HR host. The stalemate is over. Twitter is staying in San Francisco, the company announced on its blog Friday, the New York Times reports . The news puts to rest a months-long stand-off over during which Twitter threatened to leave its home by the bay, and officials debated whether Twitter should be allowed to benefit from a special tax exemption to San Francisco’s only-in-the-state payroll tax. In order to take the break, Twitter is moving into a district of the Central Market neighborhood newly zoned as payroll-tax-exempt. When? “We don’t yet have a timeline for our relocation, but we expect we will move into our new space in mid-2012. We can’t wait,” Sean Garrett posted for Twitter. What’s yet to be seen is how the city reacts to similar relocation threats from other local, growing tech companies such as Zynga. Redmond rethinks employee comp. In an effort to keep from employees from departing for start-ups, Microsoft’s Steve Ballmer has unveiled new rules governing employee pay, according to an internal company memo published by GeekWire. The retooled compensation scheme would raise base salaries while reducing deferred compensation awarded in the form of stock. In addition, Microsoft’s performance-rating system will be retooled, and special consideration will be paid to “early and mid-level R&D, mid-level company-wide and certain geographies,” the memo says. In a post titled “What Microsoft CEO Ballmer Gets Wrong About Employee Compensation,” Mogulite’s Amy Tennery observes a.) the shout-out for oft-maligned middle managers is surprising; and b.) “For the less-stock-more-cash strategy to be a boon to employees, Microsoft shares would need to decline significantly over time.” Big gains for tablets predicted. When the iPad was introduced a year ago, critics complained it was simply a bigger version of the iPhone—without the actual ability to make a phone call. The iPad and its competitors have since proven themselves highly useful both for consumer and for commercial use. Goldman Sachs forecasts tablets will account for 17 percent of all wireless data demand by 2020, as reported by All Things Digital this morning. Smartphones remain far more prevalent than their larger counterparts (they can make phone calls after all), but this data proves tablets are fast becoming less a luxury and more a necessity for consumer and commercial use. Marketing begins at home. Sure, customers research large purchases, such as electronics or automobiles, before heading to the store or showroom. Research shows that “coming out of the recession, consumers are more scrupulous about researching their everyday products such as diapers and detergent, too,” the Wall Street Journal reports . More than one-fifth of consumers research food and beverage purchases online, one-third research pet products, and nearly 40 percent research baby products, data from consulting firm WSL Strategic Retail shows. Is this an early knell for the end of flashy in-store shelf displays and aisle-end promotions? Not necessarily, but it does mean retail stores and brands are boosting their investments in reaching consumers online first, including on social media. Eighty-three percent of consumer-product companies say they plan to increase their investments in shopper marketing over the next three years, according to a Booz & Co. survey. Are you a winner? Eager to learn more about the ins-and-outs of social media and how to apply them to your business? An American Express-sponsored Facebook contest could land you (and four other small companies) a trip to Facebook’s offices in Palo Alto, California, as well as $2,500 in Facebook ad credits and a $20,000 check, ReadWriteWeb reports. How can you enroll? Why the AmEx OPEN Facebook page, of course. More from Inc. magazine: Get this delivered to your inbox. Follow us on Twitter. Follow us on Tumblr. Like us on Facebook. Continue reading

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