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Sleepless in Cincinnati

" Fiscal Therapy," Inc. senior staff writer Emily Barker's account of Bootcamp for Startups, in Mountain View, Calif., portrayed some high-tech CEOs who sought empathy as much as cash. This reader had little of either for one entrepreneur we mentioned.

As the co-owner of an Internet start-up in Cincinnati, I felt that perhaps the most compelling observation Barker made was that entrepreneurs really seem to crave validation from their peers. I have found that entrepreneurs typically need not only a group of supportive individuals--people who act as sounding boards or impartial observers or are simply friends--but also peers with whom they can share their experiences and ambitions. The "boot camp" certainly sounded as if it provided the attendees with a forum for meeting like-minded individuals.

The only concern I had was with one of the entrepreneurs you mentioned, Alexander Romero, who was moving from Cincinnati to Silicon Valley because the venture capitalists there "aren't looking for absolute proof that the company has to be profitable in so many years." His view of VCs seems to be a bit naïve. While he is correct that profitability is not a current requirement, Wall Street is beginning to look at profitability once more. And as Wall Street goes, so too will the VCs, since their exit strategies are frequently tied to initial public offerings. Also, the key to success is not geographic location (at least not with Internet companies). The key is a well-developed business model, a vision of where your company is headed, and a game plan of how to get there from here. Romero would be better off tapping into the many resources available in Cincinnati.

Although Cincinnati is easily portrayed as the sleepy home of conservative giants like Procter & Gamble, Chiquita, and GE Aircraft Engines, a vibrant Internet industry is alive and well here. For example, four local entrepreneurs developed an on-line auction site (up4sale.com), which they sold to eBay prior to its IPO. In March their stock was valued at $85 million. That wasn't a fluke. Cincinnati might not have the reputation of Silicon Valley, but it certainly isn't lacking in brainpower and investment capital. Most important, Cincinnati has such a large pool of established corporate giants that the potential supply of managerial talent for start-ups is endless. It is unfortunate that Romero really never explored the resources available here. We wish him all the best in his new home.

David L. Wheeler
Associate
Taft, Stettinius & Hollister LLP
Cincinnati

Paco grande

Ever eager to learn about the vagaries of customer behavior, many readers savored "What Shoppers Want," an excerpt from Paco Underhill's new book, Why We Buy: The Science of Shopping. One fan and fellow author had a suggestion for Underhill's next tome; another saw synergy.

Great article on how shoppers behave! While many companies just do consumer surveys, which executives read in their offices, Underhill's work proves the power of observing behavior where it counts: right in the store where the decisions are being made. While surveys and focus groups are important, they are much more powerful when combined with viewing the actual buying process.

Now the next logical step is for Underhill to extend his research to E-commerce and the Internet. Tracking which pages buyers go to and how long they stay there is important, but I believe that turning a camera on people sitting in front of a computer would yield even greater insights.

Mark McNeilly
Author
Cary, N.C.

I run a retail-management group for jewelers. Two of its members are opening new stores, and another three are remodeling theirs. The type of information found in the Underhill excerpt is invaluable to them.

I am also a partner in a program called the Warrior in the Workplace, in which martial-arts philosophies are applied to contemporary business practices. We have done programs for the International Council of Shopping Centers.

The valuable information you have presented falls under our category of "If You Know Yourself and Know Your Competition/Customer, You Will Win 100% of the Time."

Kudos on a wonderful article.

Thomas P. Dorman
Cofounder
The Warrior in the Workplace
Arcadia, Calif.

House of corrections

In August's cover story, " How to Start a Great Company for $1,000 or Less," we incorrectly identified the cofounder of TransPerfect Translations Inc. Her name is Liz Elting. Also, it was for Cyprus Amax Minerals that TransPerfect, in 1993, translated a 600-page study into Russian (not Cypress Amex). We regret the errors.

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