"Although human subtlety makes a variety of inventions by different means to the same end, it will never devise an invention more beautiful, more simple or more direct than does nature, because in her inventions nothing is lacking, and nothing is superfluous." - Leonardo DaVinci
"Education is not the filling of a pail, but the lighting of a fire." - W. B. Yeats
"It's not enough to have a good mind. The main thing is to use it well." - Rene Descartes
Innovate (v) - To begin or introduce (something new) for the first time.
Invent (v) - To produce or contrive (something previously unknown) by the use of ingenuity, creativity, or imagination.
Entrepreneur (n) - A person who organizes, operates, and assumes the burden for a (typically new) business venture, usually with considerable initiative and risk. The pursuit of opportunity without consideration to the resources at hand.
A business plan is a process of chronicling the market evaluation, people mobilization, and product and service development. A proposed start-up business should be perceived by potential professional investors as market driven rather than a product driven.
There are four important characteristics investors look for in a start-up company:
1. Evidence of Customer Acceptance - Investors need reassurance there are indicators that the customers are receptive to a new companies product. Financiers like to talk to customers and learn their reaction to a product to determine whether a venture will have hone hundred percent annual sales growth or just average growth.
2. Appreciation of Investors Needs - How will the entrepreneurs allow the Venture Capitalist's to cash out their stock in three to seven years (liquidate holdings). Is return on risked capital appreciating at a 35%-60% annual rate (without inflation).
3. Evidence of Focus - Founders know companies strengths and will concentrate on maximizing its efforts on these. Fast growth won't occur if company tries to do to many things.
4. Proprietary Position - (Easier for products than for services) Investors will consider the companies use of patents, copyrights, trademarks, and trade secrets. Practical effect of legal protection is to limit competition. A company in a proprietary position is a more attractive acquisition candidate in 3-7 years.
There are four characteristics investors avoid:
1. Product Orientation - Infatuation with the companies product or service rather than the market and marketplace needs scares many investors away. Investors like market driven companies more than product driven ones. It is best to focus on potential customer needs, with the business plan focusing on who will buy the product or service, why they will buy it, and how it will be sold (rather than overemphasizing the product description).
2. Projection Which Deviate Excessively from the Industry Norms - Overly optimistic or miserly descriptions of profit margins, sales costs, product prices, etc. can drive investors away. One can determine realistic projections for different industries via annual reports and 10K reports of publicly traded companies.
3. Unrealistic Growth Projections - All projections must be convincingly explained and realistic. Company growth is often predicted by the size, nature, and growth stage/rate of the market market (i.e. new vrs mature market).
4. Custom or Specialized Application Engineering - Investors associate high costs and low profits with specialized products that require alterations or special design for each customer. Economy of scales suggests that significant and rapid growth is most achievable by companies offering only a few variations in a product sold in high, sustainable volumes.
Business Plan Rules:
1. Title Page - CEO's or founder(s) name(s) in upper or lower corner. Plan ID/Copy # should be in upper or lower corner, and should be low - a high number drives investors away because they think the plan has been overexposed or repeatedly rejected. The cover page should also include the company name, address, phone #, and date printed.
2. Executive Summary - Should be two pages and is THE most important part of the entire plan and should include the following:
3. Table of Contents - Should use section numbering.
4. Other Useful Rules
Do not exceed forty pages without good reason.
Do not use overlays or glossys - they are overly fancy reflecting a lack of frugality wary investors avoid.
The business plan must not deviate significantly from accepted industry procedures or practices. Investors are not interested in exceptions to rules.
Include the founders objectives and long term goals.
Founders are generally seen as one of the following character types:
(MORE CHAPTER SUMMARY INFO AVAILABLE SOON)
A [novel] idea should be simply a vehicle for helping a company grow and be successful (and function as a rational growth strategy) (p.106)
Uncertainty, ambiguity, and doubt are all friends of the creative process. (p.116)
People try to commercialize novel ideas because of pride - they have a basic human need to change the world a little as a result of having been here. (p.130)
A new idea is like a baby - it cannot feed or defend itself. To achieve maturity it requires someone's love, time, patience, and a intense commitment. - A champion - a.k.a. the "kamikaze pilot" who's resilience vision, courage, and dedication are the necessary components of success, regardless of the idea. (p.130-1)
Patents are only as strong as the resources one has available to, and is willing to commit, to protect them. (p.193)
Companies willingly violate patents as a method to force a license of the patent holder because the settlement amount is close to the licensing fee. (p.193)
Lead time is seen as almost equivalent to proprietary position for some strong, market oriented companies able to establish a market dominance. (p.194)
A key question for the invention champion is what knowledge and resources will it take to fully implement and develop an idea successfully. (p.198)
(Available Soon)
STRATAGEMS WHEN COMMANDING SUPERIORITY
Stratagem 1: Cross the sea by fooling the sky
Stratagem 2: Besiege the kingdom of Wei to save the kingdom of Zhao
Stratagem 3: Kill with a borrowed knife
Stratagem 4: Relax while the enemy exhausts himself
Stratagem 5: Loot a burning house
Stratagem 6: Make a feint to the east while attacking in the west
STRATAGEMS FOR CONFRONTATION
Stratagem 7: Create something out of nothing
Stratagem 8: Pretend to take one path while sneaking down another
Stratagem 9: Watch the fires burning across the river
Stratagem 10: Conceal a dagger in a smile
Stratagem 11: Sacrifice the plum tree for the peach tree
Stratagem 12: Take the opportunity to pilfer a goat
STRATAGEMS FOR ATTACK
Stratagem 13: Beat the grass to startle the snake
Stratagem 14: Raise a corpse from the dead
Stratagem 15: Lure the tiger out of the mountains
Stratagem 16: Snag the enemy by letting him off the hook
Stratagem 17: Cast a brick to attract jade
Stratagem 18: Catch the ringleader to nab the bandits
STRATAGEMS FOR CONFUSED SITUATIONS
Stratagem 19: Steal the firewood from under the cauldron
Stratagem 20: Fish in troubled waters
Stratagem 21: Slough off the cicada's shell
Stratagem 22: Shut the door to catch the thief
Stratagem 23: Befriend a distant state while attacking a neighbor
Stratagem 24: Obtain safe passage to conquer the kingdom of Guo
STRATAGEMS FOR GAINING GROUND
Stratagem 25: Replace the beams and pillars with rotten timber
Stratagem 26: Point at the mulberry and curse the locust
Stratagem 27: Play dumb while remaining smart
Stratagem 28: Pull down the ladder after the ascent
Stratagem 29: Deck the tree with bogus blossoms
Stratagem 30: Make the host and the guest exchange places
STRATAGEMS FOR DESPERATE STRAITS
Stratagem 31: Use a woman to ensnare a man
Stratagem 32: Fling open the gates to empty city
Stratagem 33: Let the enemy's own spy sow discord in the enemy camp
Stratagem 34: Inflict injury on oneself to win the enemy's trust
Stratagem 35: Chain together the enemy's warships
Stratagem 36: Run away
THIS STRATAGEM plays on the yin-yang relationship between existence and nonexistence, truth and falsehood, substance and appearance, fullness and emptiness. If you can create something out of nothing, what looks like the bleakest of circumstances can yield success.
That is what happened when Zhang Xun, a valiant county magistrate of the Tang dynasty (A.D. 618-907), took on seemingly impossible odds to defend his city from troops rebelling against the imperial government.
Heading the rebellion was An Lushan, whose ambition was as great as his sexual prowess: he first usurped the Tang emperor's favorite concubine and then usurped the throne. One of An Lushan's supporters, a former Tang official name Linghu Chao, let 40,000 troops to besiege the city of Yongqui, where Zhang Xun had a small armed force at his command. After forty days some of the city's residents were trading their children for food. But Zhang Xun refused to give in and had officers under him who wanted to surrender beheaded.
When the Yongqui defenders ran out of arrows, Zhang Xun ordered people to make a thousand life-size straw figures clothen in black, which his soldier let down over the city walls on ropes after dark. Linghu Chao's troops loosed tens of thousands of arrows at what they thought were escaping enemies. The arrows stuck in the straw men, and Zhang Xun's soldiers puled them back over the wall. Only then did Linghu Chao realize that the figures in the night were dummies and cease the assault. By then it was too late-and Zhang Xun had gone from a total lack of ammunition to plenitude.
Later that night Zhang Xun send 500 of his bravest fighters down the ropes. Linghu Chao's side thought they were straw men again and paid no attention. Zhang Xun's men stormed the rebel camp, chopping off heads of slumbering enemy soldiers and though they were melons. The rebels were thrown into disorder and Linghu Chao had to order a retreat.
Thus Zhang Xun transformed a passive position into an active and potent one. His defense of Yongqui was a major factor in turning the military situation in favor of the imperial army.
(p.55-56)
In speaking about paths, there is the path of Buddha [Religion], by which people are saved. There is the path of Confucianism, [the learning of scholars], the path of healing various illnesses of physicians, the path to teach Waka [classical Japanese poetry] for the poets, the path of the men of refinement [tea ceremony, music, etc.], the path of the archers, and other arts and skills. People practice in theor own path, to their personal satisfaction. But there are fuew who are inclined to devote themselves to the path of Heiho [the way of the warrior class]
It is the warrior's way to follow the paths of both the sword and the brush [pen]. Even if they have no natural ability in these paths, a warrior is expected to do his share to the best of his ability.....In order for a warrior to follow the path of Heiho, it is necessary to keep in mind that the essence of Heiho is to build an indomitable spirit and an iron will; to believe that you cannot fail in doing anything. The Earth Book (p.11)
You must walk down the path of a thousand miles step by step, keeping at heart the spirit which one gains from repeated practice with whomever one can get to practice with, and knowledge attained from whatever experience you can come by, without impatience...... Practicing a thousand days is said to be discipline, and practicing ten thousand days is said to be refining. Epilogue of the "Water Book" (p.52)
In order to pass through life, there is the need to have a spirit, to be decisive about exerting all of one's energies to overcome difficulties. The Fire Book; To Cross the Expanse (p.65)
....in the path of Heiho one cannot be so rigid as to insist that "this is the way it has been since ancient time," or " this is the modern way to do it." The path to victory lies in manipulating the circusmstances so that they are to the disadvantage of the opponent.The Wind Book: Making Use of Other School Stances (p.90)
For a Bushi, [Warrior] knowing the path of Heiho with certainty, acquiring skill in the other martial arts, understanding clearly the road to be following by the bushi, having no illusions in your heart, honing your wisdom and willpower, shaprening your intuitive sense and your powers of observation day and night: when the clouds of illusion have cleared away, this is to be understood and the true ku [the emptiness describing something which is "devoid" of a independant physical reality, such as a flowing process or dynamic event] The Book of Emptiness (ku) (p.90)
Summary:
1. Do not harbor sinister designs.
2. Diligently pursue the Path of Two-Words-as-One.
3. Cultivate a wide range of interests in the arts.
4. Be knowledgeable in a variety of occupations.
5. Be discrete regarding one's commercial dealings.
6. Nurture the ability to percieve the truth in all matters.
7. Perceive that which cannot be seen with the eye.
8. Do not be negligent, even in trifling matters.
9. Do not engage in useless activity.
10. Remain flexible, adaptable, and unpredictable.
11. Think, plan, study, and practice ceaselessly.
No effort in this world is lost or wasted; a fragment of sacred duty saves you from great fear. (p.35)Perform actions, firm in discipline, relinquishing attachment; be impartial to failure and success- this equanimity is called discipline. (p.36)
Ascetics who keep strict vows sacrifice with material objects, through penance, discipline, study of sacred lore, and knowledge. (p.53)
Sacrifice in knowledge is better than sacrifice with material objects; the totality of all action culminates in knowledge, Arjuna. (p.53)
The person of discipline has joy, delight, and light within; becoming the infinite spirit, he finds the pure calm of infinity. (p.60)
Disciplined through practice, his reason never straying, meditating, one reaches the supreme divine spirit of humankind. (p.78)
One should remember humankind's spirit as the guide, the primordial poet, smaller than an atom, granter of all things, in form inconceivable, the color of the sun beyond darkness. (p.78)
Knowing the fruit of virtue assigned to knowledge of sacred lore, to sacrifices, to penances, an to acts of charity, the person of discipline transcends all this and ascends to the place of pure beginning. (p.81)
Simply put, making art is chancy - it doesn't mix well with predictability. Uncertainty is the essential, inevitable and all-pervasive companion to your desire to make art. And tolerance for uncertainty is the prerequisite to succeeding. (p.21)
Only those who commit to following their own artistic path can look back and see this issue in clear perspective: the real question about acceptance is not whether your work will be viewed as art, but whether it will be viewed as your art.
The difference between acceptance and approval is subtle but distinct. Acceptance means having your work counted as the real thing; approval means having people like it. (p.45)
The unfolding of a great idea is like the growth of a fractal crystal, allowing details and refinements to multiply endlessly - but only in ever decreasing scale. (p. 44)
(The book is a translation of two ancient Chinese Taoist guides to spiritual philosophy, human psychology, and successful leadership strategy. The first is called The Master of Demon Valley, and the second, The Master of Hidden Storehouse. These text's wisdom are said to have helped the great Emperor Chin end five hundred years of civil war and unite China in 221 B.C.E.)
Always hold that net and motivate people. If there is nothing in your words to which they can relate, then you change for this reason. Use imagery to move them, in a manner responsive to their mentalities; seeing their feelings and states of mind, you can govern them accordingly. If you yourself turn around and go to them, they will turn around and come to you. When speech contains images and analogies, by their means you can establish a foundation. Repeat them over and over, reflect on them over and over, and the appropriate rhetoric and expressions for all affairs will not be lost. Master of Demon Valley; Response; (#5 - p.10)
Thus when it comes to knowledge, what is important is not to forget; when it comes to listening, what is important is to be clear; when it comes to wisdom, what is important is to understand; and when it comes to rhetoric, what is important is to be exceptional. The Master of Demon Valley; Assessment; (#16 - p.43)
Now then, humane people think lightly of wealth, so they cannot be seduced by profit, but they can be induced to make expenditures. Brave people think lightly of difficulty, so they can not be intimidated by trouble, but they can be gotten to manage perilous situations. Wise people are perfectly logical and reasonable, so they cannot be fooled by untruth, but they can be edified by truth and induced to perform worthy deeds. These are three types of ability. The Master of Demon Valley; Strategic Thinking; (#7 - p.45)
Be peaceful, easygoing, upright, and calm; then the measures you impose will be accommodating. If you are good at managing but are not calm, then empty your heart and even your mind, and wait for unease to fall away. This helps master rank. The Master of Demon Valley; Talismanic Sayings; (#1 - p.52)
Eyes and ears should be clear; the mind should be wise. Those who see through everyone's eyes see everything; those who hear through everyone's ears hear everything; those who think through everyone's minds know everything. When all of these are combined and advanced together, then understanding cannot be blocked. This helps master understanding. The Master of Demon Valley; Talismanic Sayings; (#2 - p.52)
The art of virtue is this: do not be stiff and forbidding. When you are forgiving, then you are protected; when you are forbidding, then you are shut off. Even a high mountain can be seen all the way to the top, and even a deep body of water can be measured; but the upright calm of the art of virtue practiced by the spiritually enlightened is unfathomable. This helps master virtue. The Master of Demon Valley; Talismanic Sayings; (#3 - p.52)
People who apply the Way [The Way = Tao, or the natural law inherent in all things] do not reveal their function, but their blessings enrich all beings; they make nothing of their achievements, but secretly help others with unobtrusive efforts; and the common people think it happens to them naturally. Spiritually effective, work flourishing, ethereal joy endures forever. The Master of Hidden Storehouse; Applying the Way; (p.107)
People who appear to be base and vulgar yet can be sagacious are so rare as to be hardly one in ten thousand. People who are proper and elegant in appearance yet are really petty people are so common as to be fully nine out of ten.
Those who understand writings without working on the wording, who assess measures without fussing about individual manners, who know the good regardless of whether people praise them, and who stop the bad regardless of criticism, these can be called the perceptive.
The Master of Hidden Storehouse; The Way of the Wise; (p.141)
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