These Aren’t The Cameras You’re Looking For: How Apple Just Killed Smartphones With A Single New Feature

 

“There are 5 catastrophic failures in 3D production”

I was advising the renowned director Ang Lee from across a small conference table in a Beverly Hills office of the 3D technology startup RealD around 2010/2011 as he was going into production on Life of Pi 3D. It was an honor to be there with he and his team.

We discussed technical elements of 3D production throughout the day, specifically focusing on framing and depth.

Life of Pi 3D went on to win multiple Academy Awards. Mr. Lee won the Oscar for Best Director.

I was at RealD for 6 years, first raising capital ($36 of $90M total), then building RealD PRO – the professional division of RealD that serviced customers from Disney to Lockheed Martin, BMW and the NSA with a suite of visual technology.

Most people know RealD for their 3D technology and -like it or not – 3D movies.

RealD grew from $0 in 2007 to $280M and an IPO on the NYSE in 2010 by taking industrial technology developed at two little companies – Stereographics (San Mateo, CA / Lenny Lipton), and ColorLink (Boulder, CO / Gary Sharp) – and applying the technology to entertainment applications.

What most people don’t know is RealD is not a 3D company.

RealD is a light technology company. Their scientists and technologies manage, manipulate and filter light in a variety of ways. The company’s products are used in everything from F/A-18 Fighter Jet HUDs to virtual reality CAVEs. Customers include Ford, Boeing, Pfizer, the US Navy, Lockheed Martin, BMW, Exxon, BP, and many others. The technology has been deployed into many classified applications (if you think drones are cool, you wouldn’t believe what is actually in use by some of these companies/organizations), and used extensively in highly elaborate software from companies like BAE Systems.

I was involved in all of these industries at RealD, working on confidential projects involving photogrammetry, virtual reality, augmented reality, and other visual imaging solutions. During this time I became intimately familiar with the operations of multi-aperture cameras.

I deployed RealD technology for stereoscopic neurosurgery imaging where doctors use VR/AR and 3D in real time performing laparoscopic neurosurgery. I’ve walked through US Navy aircraft carrier cabins – virtually building the most advanced aircraft carrier in VR prior to welding a single sheet of steel. I’ve seen Ford redesigning vehicle interiors using haptic technology, Pfizer building molecular models of the next great pharmaceutical in stereo 3D, theme parks around the world deploying RealD technology for virtual/interactive rides, among others (some confidential, related to classified operations).

Across swaths of industries, 3D/VR/AR has been in use for over 30 years and I was in the center of it, working with many of these companies directly, advising, selling and deploying some of the most advanced imaging technology the world has ever seen (and has never seen publicly).

This is why I am shocked that the new iPhone 7+, with the most groundbreaking visual technology feature I’ve ever seen – dual camera lenses, has not erupted in the press.

iphone-7-plus-design.jpg

(the iPhone 7+ dual camera lens feature is hugely significant)

Deploying dual camera lenses in a consumer product is significant because the cameras can act as a visual sensor beyond what a single imaging chip can do.

With two camera sensors, an iPhone will be able to:

-measure distance
-map objects
-capture 3D images
-create parallax
-depth of field
-stream VR

This puts millions of dollars of technology in the hands of developers and consumers everywhere, for practically pennies.

This technology enables almost infinite possibilities.

How?

With dual imaging chips (lenses), each chip can capture a separate view of the same data set – more pixels, but different pixels (different angles). Using this data, developers can begin comparing the data to output information stated above.

For example, knowing the distance between the lenses (interaxial), a developer could write a comparative program where pixel distance in each frame is compared, and the distance from the object could then be determined very accurately (in Boy Scouts we learned this on maps using compasses – calling it triangulation).

Now, imagine that you can activate both camera lenses simultaneously, program imaging software to account for the various catastrophic issues problematic with stereo capture, and boom – you have a VR streaming device.

As Apple has touted, the additional lens also enhance images by creating user-chosen variable depth (depth of field). Well, if you can create a depth field, you can also use that depth for judgment – your phone becomes a third eye sensor with capabilities similar to LIDAR. In other words, Apple just MVP’d imaging to leap frog LIDAR and make mapping with sensors a standard feature in a phone. Think about that for a second. The iPhone could literally be used to calculate and advise you on movement-oriented decisions using these dual imaging chips.

Clip an iPhone to some wheels and it becomes a robot with depth vision. Clip the iPhone to a household vacuum cleaner and it could clean your home. It could cut your lawn as it drives an automated lawn mower. It could look at and more accurately diagnose a medical condition, identify objects, build virtual models of objects that could be 3D printed accurately…the sky is the limit.

This is not a simple feature addition, this is the most revolutionary imaging technology ever to be added to an an Apple product. Perhaps the most advanced imaging technology to be added to any consumer product ever.

Deploying technology, like Oculus is doing with VR, into the hands of millions of people reduces costs drastically, enabling access to otherwise cost-prohibitive technologies for infinite applications. Apple has just done this with their dual-camera feature.

The possibilities are endless when consumer products can mimic capabilities of expensive industrial systems.

Industries currently using VR, AR & 3D include:

– Education
– Medicine
– Geosciences
– Government & Defense
– Entertainment
– Design/Development

Right now, people are coming to work every day, donning VR headsets and 3D goggles and stepping into CAVES where they use heavy technology to execute industrial applications.

This has been the case since the early 1980s when Lenny Lipton, who cowrote “Puff The Magic Dragon” used his royalties to invent the first digital 3D technology using a CRT monitor frame-sync’d to LCD shutter glasses via an infrared emitter. The gov’t and military quickly picked up the technology from his company Stereographics, and a totally new business was born. This is the next generation of that first flame.

As people realize the potential for VR/AR and 3D we will see unexpected applications change the way we live, which is why the September 7th, 2016 announcement of the Apple iPhone7+ is so significant.

The next 2 years we’re going to see an explosion of these sensing capabilities brought about by the addition of the second imaging chip. I believe this is as important, if not more important, than the launch of the first iPhone. After all, if a picture is worth one thousand words, a 3D virtual augmented sensor image must be worth at least 10X more.

 

How Harrison Fast Saved My Life

 

My friend Harrison Fast died while speed flying off of Jungfrau peak near Lauterbrunnen in March, 2016. This is my story of how and why we became friends.

How Harrison Fast Saved My Life. A Tribute To Harrison Fast

Boulder, Colorado – I ran down the mountain trying to launch into flight. A huge paragliding wing attached to my harness. The air grabbed my wing and pulled me off the ground straight out. It swung me like a pendulum before slamming me backwards. I hit the ground with a thud. It was my second crash in a row.

More about that in a moment.

I was an employee of RealD for 6 years. From 2007-2013 where I started in Finance helping raise equity to fund the company, then moved into business development where I traveled around the world doing business deals to help grow into new areas.

In 2012 I accepted a new role in RealD’s Boulder office to help bring new technology into the world. There was one concept I was passionate about and pitched my boss who said “you’re approved to move ahead but you can’t have any internal resources for the project.”

I wasn’t very good at listening to my bosses.

I immediately set up lunches with many of the engineers in the Boulder office asking them if they were interested in helping where they could. Everyone was busy working on immensely challenging projects with little time to spare, including Harrison.

But Harrison wasn’t someone to let their work load get in the way of passion, and he was passionate about my project so he said “I’m in. This is a great idea and I want to see it happen.”

Harrison’s commitment caused a few other engineers to commit, too, but they asked not to mention it to anyone since their hours were watched closely. We launched the project incognito and were on our way.

By 2012 Harrison had already been an engineer at RealD for a little while. We became friends at work through our mutual passion for outdoor sports. I was a former sponsored climber, ultra-runner, mountain bike racer, and Western Montana Mountain Rescue Team member -one of few teams specializing in high-angle rescue. Many of the things Harrison loved, too.

We could talk about business yet we related to each other in life. He understood the job wasn’t the end game, it was a tool that could be used for freedom. Where some of our friends were living in vans climbing, flying, and dirt-bagging their way around the West, he chose a high-demand career that paid well and gave him what he needed to do anything he wanted in the off hours. We would be talking about our project, but the conversations always turned to new ideas, how technical gear could be designed better, or cool trips we had in mind.

When I moved to Boulder from Santa Monica, California for the new role at RealD I lived in an apartment on North Broadway that looked out at the beginning of the Front Range. When weather was good I watched paragliders take off and fly miles into the sky. I was mesmerized by the beauty, color and skill in flying. I loved the idea of bagging a peak and flying down – something Harrison said was his speed flying goal.

Until then my love of outdoor sports immersed me in water, rock and soil, but I hadn’t yet engaged with the air. So I signed up for paragliding lessons and started flying on weekends.

Harrison found out and I’d never seen him so excited. He was just starting to speed fly and every Monday would show me a video from the weekend.

And then he saved my life.

“How are your lessons going?” he asked. “It felt easy the first few times I flew and then Saturday I took off and pendulumed backwards into the mountain. Twice. I was so upset I quit the rest of the day’s lesson. It seemed like my instructor was totally not helpful at the time so I agreed to meet him again tomorrow and see if we can fly again.”

“Who is your instructor?” he asked.

[Tells name of instructor]

“What?!!! That’ guy’s an ASSHAT! Dude, you need to quit going to that guy immediately. I’ve heard so many horror stories about that guy. Forget that guy. I’ll hook you up with the best guy I know.”

My lessons were prepaid. Hundreds of dollars, but I didn’t care. I quit going. The instructor called and called but I ignored him and set up lessons through Harrison’s friend.

Shortly afterwards I left RealD. Harrison and I stayed friends and hung out a few times in the Summer of 2013. I put paragliding lessons on hold to work on starting a company and Harrison was super supportive. We’d talk about ideas and he started projects of his own (better slack lining gear was one of his killer inventions. Talk about an activity that could use some dedicated gear!).

I moved to Seattle to build my business and though we didn’t see each other in person again, we stayed friends through social media. I watched him go bigger, higher and faster, thinking at times how I was the same way when I was 10 years younger but how Harrison was 10X. One of the most passionate, smart, fun people I knew – I wish I was more like him, even today.

But the story doesn’t end there.

5 months after leaving RealD my new company was an infant – just an idea really – and I knew all my time would be consumed by it. So I took a 9-day solo trail running trip to Maui with the goal of running as many trails on the island as I could while living in a van (to simultaneously write a camping/trail running guide for Maui). A last hurrah, before I thought I’d be working too much.

It was one of the best trips of my life, and one day on the way to running trails in the Kula Preserve up Waipoli road, I came across a paragliding launch site. I pulled over and watched as several really good pilots took off. Striking up a conversation with a former Boulderite and entrepreneur from Switzerland – we got to talking about the early days of flying. I mentioned Harrison to him (didn’t seem to know each other) and then told him my bad experience a few months earlier with Instructor ASSHAT.

“No Way! That guy almost killed me! He was my first instructor. My second flight I got stuck in a thermal and couldn’t get down. That guy was screaming at me on my radio and eventually had to fly up to me and show me how to get out of the thermal. I promised myself if I made it down I would never fly again. I quit paragliding for 5 years until I met some guys on Maui who taught me properly. Good thing your friend warned you off that guy!”

Harrison got a kick out of that story. I believe Harrison saved my life.

I’m sorry I can’t make your memorial, Harrison. I’m still working on building my dream and I know you understand that more than most. I watched your trip to Chamonix and Lauterbrunnen with envy. I watched your flying improve through your videos, and cheered as you launched your ideas. Thank you for saying yes to the project, even when it meant working extra hours. I am lucky to have worked with you, but more importantly lucky it made us friends. Thank you for being my friend. Thank you for inspiring me and many others to live better lives. Thank you for always having fun. Thank you for saving my life.

Solo: How To Find What You’re Looking For

photo_peak

(Photographer’s Peak, Custer State Park, South Dakota – Route Visible in the split of the tallest section)

I was 18 and 180 feet up wedged in a narrow crevasse of rock with nothing below me.

I reached one hand back to the camera hanging off of my harness, smiled and took a selfie, my eyes closed.

“If I fall they will find this and know I was happy” I thought.

At 220 feet I climbed over the edge of the route, rappelled down the backside using the extra coil of rope I had on my back, and walked around to the front.

My climbing partner, Tom, stared.

“Dude, I thought you were dead”

I climbed as high as the lead rope could go, untied and let the rope drop, then kept going up.

He was left on the ground to watch until I couldn’t be seen.

It sounds insane. I guess it could be, but when your life is focused around a single activity so much that you are trained to precision, the insanity becomes manageable, even fun.

That’s when the limits go up and life gets weird.

free_solo

(this is me 250ft above ground, free-soloing in Boulder, CO)

From 60 vertical feet in Devil’s Lake, Wisconsin to 1000 in Boulder, Colorado the climbs were different but the quest was the same.

I didn’t particularly like to solo, I needed to.

Because out there, I thought, would lie the answers to what I was looking for.

They would appear, I thought, just beyond the bounds of what I was capable of.

Yet when I got there, the line moved back. When I got “there”, “there” wasn’t a big deal anymore and a new “there” appeared on the horizon.

It is a sick cycle I obsessed over across everything I did: climbing, cycling, swimming, running, working.

Because the missing piece had to be there where I wasn’t yet, I just had to try harder.

And isn’t it true.

I could climb 1,000 feet without ropes. I could ride more than 100 miles in a few hours. I could run more than 50 miles across mountains in a workday.

But what I wanted was missing.

leonarunning

(a picture of a picture of me in my first ultra, in the mountainsof CA, , hanging on Mom’s wall. thanks Mom)

Because, I learned, out there is out of my control. We’re like a butterfly trying to control the weather with its wings. Possible, but improbable.

The only thing we have is not outside, but inside.

So after thousands of vertical feet, thousands of miles, hundreds of running shoes, I found the answer somewhere in between.

The one seat with eyes closed and focus inward.

Behind the voice, the ideas, the judgment is something else and it’s what was missing all along.

It was here until I found it.

I was just looking in the wrong place.

When The Founder Of Your Company Dies

(your path is beautiful and difficult)

“I have some bad news. Paul died last night” he said.

Paul was the founder of an early stage entertainment technology company. The call just started. I was supposed to share the final business plan: 5-year financial forecasts, profitability, cash flows, organizational structure and technical strategy I’d been working on.

The business was growing organically. We wanted to put on the afterburners. Investors were interested and this call was to approve the plan so we could build a deck* for them and raise $XMillion.**

But now the founder was dead.

We had been working closely for 3 months. It was Tuesday morning, September 24th 2013 and time stood still.

“What happened?”

I was in Baltimore, Maryland wearing a blue v-neck cotton t-shirt. I was sitting outside in the sun and remember sweat trickling down my back. I noticed the tree leaves holding onto their late summer green, lingering before changing into fall colors. I heard birds chirping and felt a slight warm breeze.

He began telling me what happened.

You know how it feels when the world stops?

 

“Between stimulus and response there is a space. In that space is our power to choose our response. In our response lies our growth and our freedom. -Victor Frankl”



We see the fleeting nature of things. Life in Technicolor. Heightened for a second as we ponder the meaning and grasp the transient nature of life.

Like the last day of your vacation – soaking it in before departing to home.

Like the end of Christmas day when you’re a kid – the presents are open, everyone is sitting around feeling the chemical buildup dissipate as you realize it’s over.

I snapped back to his words on the other end of the line.

“…and then the housekeeper found him.”

Memories of Paul flashed through my head. His wide eyes excited about the possibilities and his passion for his mission in life. A friend gone at 66.

You knew Paul Darbee. At least, you knew his work:

Paul invented the Universal Remote Control in the 1980s, among other things. He cashed out of his company early. UEIC went through tough times and is today a $500M annual business traded as a public company.

His new company, DarbeeVision was his biggest dream. A company dedicated to making the picture on your tv or projector better using image processing via an HDMI-input device sitting between your incoming signal and your tv. It works really well. I thought I could help them put together strategy and get big fast.

But now he was gone leaving his business partner and I alone on the telephone talking about what to do next.

“Can you get to Denver by tomorrow?”

I flew to Denver. CEDIA is the show where all the home AV professionals demo their gadgets and distributors do deals for the next year. All the new hot stuff for your home.

I pressed flesh with the contacts I’d gained over 6 years at RealD and presented the plan to the majority shareholders and their advisors. Everyone was on board with the strategy and I think they were looking for a sense of hope. And a sense of security that the legacy would not die.

It felt like a memorial service: Paul’s last name in graphic design across the banners in the booth.  His widow and son bravely repeating the story of the company, the technology and Paul’s last days. Industry veterans stopping by to express condolences.

DarbeeVision is alive today and will likely keep going.

It can be sad to say goodbye.

It was a little over a year ago (1 year 5 days) that I said goodbye to RealD, went to Beirut for a celebration, moved out of my apartment in Boulder, proposed to someone I loved and had it fail, dated someone but it didn’t work out, drove 700 miles across the midwest to a magical weekend celebration, sold my first home in Portland, Oregon, put my stuff in storage, mourned Paul’s death, took a 9 day trail running trip to Maui, celebrated another birthday, and another Thanksgiving and another Christmas, welcomed a new niece into the world, got UL approval on a product, sold all my old stock options, and last week closed the first big deal of my new company then got hit with new hurdles. Among many other things.

Thankfully every day dies. Some days die quickly. Other days die a slow painful death, impossibly hard to let go of.

But then a new day is born.

People say let go of the past, but the truth is you must let go of the future, because the past happened and is gone. The only thing left of the past is evidence we interpret and emotions we carry. This impacts our thoughts, beliefs and shapes our future by influencing our reality.

When I let go of the future my life becomes magic and time stands still.

Things I never thought would happen become reality.

I was always scared to let go, because what then would I have left? And I only have one conclusion: faith. Faith that if I am healthy and I let go something new will show up to replace the space that’s made from what is gone. And it always happens.

Otherwise we keep missing the moment when all possibilities are endless. And when we miss that moment, we miss all possibilities.

Paul was someone who chose to make his own possibilities and inspired others.

But are you dead or are you alive? Are you missing each moment holding onto the past or are you healthy in your body, heart, mind and soul, with room for your dreams to become real?

I don’t know what works for you, but this is what works for me.  I’m grateful for the lessons I’ve learned from friends both living and passed who continue to be proof that we are what we believe.

And faith that something is on its way is the only way I know of.

I hope you have faith, too.


*a deck is the presentation you give to potential investors
**I’m still under nondisclosure

How I Helped Create Hollywood Blockbusters While Making $Millions Selling a $300 iPhone App

($300 for this?!)

($300 for this?!)

Warren Buffett says “price is what you pay, value is what you get”

But would you pay $300 for an iPhone app?

Jessica Livingston and Paul Graham are famous in the tech world. They were the first people  to start a tech “incubator” where investors put money into a lot of different startups at once and advise them through the early years. Today their incubator is worth an estimated $500MM and has produced companies like Reddit, Airbnb, Survey Monkey, Heroku and Dropbox.

Paul also writes about startups and has a famous drawing he loves to shares with founders:

(small group of very urgent users)

(small group of very urgent users)

Finding small groups of users who urgently want or need a product to solve their problem is more important than making something that seems useful to a lot of people, but isn’t.

Microsoft started with a small group of customers urgently demanding their product (an Altair BASIC interpreter), Facebook started the same way, &c. Because once you have traction with those users, you may be able to scale, as Google did. His drawing points out that although it is tempting to think a site like a social network for pets sounds like a good idea, it is better to solve problems for a small group that throw “things” at large groups of people that won’t use them (Pet social networking).

(this sign is in 3D in the hills above LA)

(a 3D sign in the hills above LA)

2010 was the age of 3D, remember? No one could get enough. It was everywhere and our company went public that summer, at the height of the fervor.

I flew to New York for some business meetings and to attend an outdoor screening of “Monsters vs Aliens 3D” in the new Brooklyn Bridge Park. I did a deal so our technology would be used in the first outdoor 3D movie screening of its type. 1,000 people were expected, 5,000 showed up including the mayor who gave a little “I like 3D, this is awesome” speech.

(unfortunately he wasn't there)

(unfortunately he wasn’t there)

Then I went to Tribeca Film Center and did a deal with Robert De Niro’s team. Everyone at TFC became my friends, as did 1/2 the studio and post production world in New York. And the New York Technical Institute, Brooklyn Academy of Music and all the screening rooms, even the private ones of famous directors and producers.  And I got to know everyone at SoHo House and did a deal for their screening room, too, so I’d be at SoHo every time I went to NY seeing all the famous people do the things they do.

I was hustling deals with every studio or production company I could find, and got the same feedback: 3D is hard to make. We need it to be easier. Our screening rooms need to show good content.

But did you ever stop to ask why 3D came back so strongly? It’s a very hard medium to work in, to film in, and to produce/post produce.

Shooting live 3D (like “Gravity” or “Avatar” or “Hugo”) is more expensive and time consuming. Using two cameras simultaneously is aggravating.

(it was powerful and saved $$$)

(powerful, interactive & solved a huge problem)

Companies were raising huge amounts of money to provide a 3D production service where they’d send vans full of engineers to sets and “assist” shooting. But they’d wing it. Most of the work still happened in post production and these vanloads of engineers would charge $hundredKs.

The public didn’t know and didn’t care about the difficulties. All everyone knew was 3D is huge and “the future.” We checked our stock price in the cab to the airport – $18 – $20 – $21 – it went up and we counted our money (even though we were locked up for 6 months).

The windows were down and the sticky New York air hugged us.

It was summer.

It all felt right. If I closed my eyes I heard “Empire State of Mind” in the background, distracting me from the smokey piss smell in the cab. There were challenges but we were riding the high tide and I kept my eyes open for more opportunities.

And in the middle of it I got a call from a friend who said “hey so I’m building this app and I wanted to see what you thought of it.” Of course I said “I’d love to see it.” It was early but he modeled the complex calculations and instructions of filming movies in 3D on an iOS platform – as an app. It was amazing.

(simplified complex calculations

(simplified complexity)

It wasn’t super pretty and clean yet but it was beta and its potential was clear:

An iPhone app that makes filming in 3D easier by giving Directors of Photography and Cinematographers the calculations they needed to properly shoot. It reduced setup time and improved shot quality, saving huge $.

I’ve been on tv and movie sets since I was a teenager. My oldest brother has made films and tv shows in Hollywood for almost 30 years and I’ve hung out with him at 3 of his 10+ shows, getting to know the organizational structure and watching filming take place. I found out what each person did.

Cinematographers and Directors of Photography make the important technical decisions for directors and producers.

(interactive virtual set)

(interactive virtual set)

So when my friend Ken Shafer of Innoventive Software showed me his idea we immediately partnered and a few months later launched “The RealD PRO Stereo 3D Calculator for iPhone”…then the iPad version.

We had what Jessica and Paul would call a “small, urgent group of users.” Because we were solving enormous problems for them. This app literally helped make some of the modern 3D blockbusters, which is partially why 3D took off so heavily, and made Cinematographers’ jobs easier. They could shoot and adjust real time.

We priced the app at $300. One of the top 10 most expensive iPhone apps ever. At that price, we didn’t need 10 million downloads to make som money. But the price was significantly below the value it brought to the users.

We sold thousands of them within months.

All the filmmakers and cinematographers bought it. 3D enthusiasts bought it. Braggarts bought it to show off.

Most of the 3D movies you saw in 2010-2012 used the app on-set. It saved them tens-of-thousands of dollars, sometimes that much daily, so $300 was a bargain. We probably could have charged more.

After a year or so we dropped the price to $69. Today you can get it in the app store for $54.99. We launched a lower featured consumer version for $29 which now sells for $9.99.

The app made over $1MM in revenue within the first 18 months, and is still selling.

We created a tool that virtually eliminated vanloads of engineers and ushered in the production of 3D content everywhere.

We could have leveraged the app and created other similar filmmaking or entertainment products to grow our user base but didn’t. That’s another story I probably won’t ever write about (and since I did this on behalf of a company I was not receiving the windfall from the sales of the app).

It proves you can throw out what anyone tells you about how to do something and focus on the value, not the price.

Find a product-market fit with a solution to a problem, serve those customers well, then scale.

Even starting with a $300 3D app for your iPhone.

Download it in the iTunes store here.

How A Garbage Man Became Your Broker

(this was not in the truck)

(Cosmo was not in the truck that day)

Raunchy porn magazines littered the dashboard. It smelled like rotting fruit, stale beer and dirty diapers.

“The other driver loves to keep the dirty stuff. He picks it out of people’s trash” he said. “I wouldn’t touch those without gloves on.”

We were 19 sitting in the sweltering cab of a recycling truck in suburban Chicago, in August. The grass was tall in the ditches next to the roads and the humidity held our sweat to our skin beneath our shirts. Something for the stench to cling.

He invited me “On The Route” so I went, now regretful, nose burning.

recycling_truck.jpg

(what goes around comes around)

My friend confessed “it’s a good job but I don’t want to be doing this my whole life. I just can’t go to school. It’s a waste of time. Who are these teachers? They just throw stuff at you. This is real education.”

(all the gold, guns and girls. is it ever gonna be enough?)

(all the gold, guns and girls. is it ever gonna be enough?)

My friend was the epitome of the James Dean type. Every girl ogled him but he was faithful to his girlfriend, contrarian, reckless but smart (once crashing his Dad’s new Mustang while driving underage, ditching it to avoid the police), questioning authority philosophically, appearing always like he stepped off the pages of a JCrew catalog (the most influential mail order of the time). I was not much like him, but we became best friends. I wanted to start a jazz club in Chicago called “Birdland.” We were obsessed with jazz. We had big plans. Always circling around how we’d leave our mark on the world, not sure how to start. Uncertain when our break would come, chasing.

We’d both dropped out of high school the same year. I tested into college and he went to work driving a recycling truck.

(we wanted to go back in time)

(we wanted to go back in time)

He drove the route every day while I tore through classes, tripling credit hours to graduate early.

But I didn’t have a job plan. I felt like I should. Anxiety was growing.

Sitting in the parlor of the house I shared with 4 girls and another guy, watching ticker symbols stream on CNBC two weeks before graduation, I had a flash: “can someone trade for a living?”

I graduated in December with two interviews at brokerage firms.

“Hey man I’m going downtown Monday to interview. You should come.”

“What are you talking about. I’m not going with you to your job interview.”

“Dude, it’s just an interview. You can introduce yourself and see if they have anything else. Seriously, no big deal. Come with.”

He agreed.

We took an early train from Barrington and met a guy in the office of Eurospread Associates, where some of my cousins un-coincidentally worked. “I didn’t expect two?” he said. We acted dumb and shrugged. He ushered us onto the trading floor. “People are gonna say shit. Just ignore them. Don’t take it personally.”

It was nothing we’d seen before: mass chaos, colored jackets, hands in the air, faces screaming, spitting and sweating. The floor was littered with paper.

Traders & clerks laughed and pointed at us chanting “fresh meat,” flipping trading cards our way like flat paper bullets.

We were overwhelmed by stimulus, captivated. You could feel the money.

“I didn’t know we were hiring two” one broker said.

My friend and I looked at each other “I guess you are” I said.

“Okay, fill out these forms. You can start January 3rd. I’ll put one of you in Yen and the other in the LIBOR pit. You’ll start as runners.” He got Yen, I got LIBOR.

We rolled out of the building laughing, high-fiving. “What just happened?!”

Two weeks later we walked onto the CME floor and started our future.

A year later I was hired at Michael Stoltzner’s Futrex Trading, training with Jeff Goldman (one of the largest EuroOptions traders) on weekends and went on to develop trading systems at Specialists DPM and Edge LLC until I left to pursue my dream on the West Coast.

People will tell you the better path is the path in pursuit of something they can see. The path that looks good on paper and reflects well when you tell your new girlfriend’s parents. They don’t like recycling trucks they like money and power and sophistication and houses in suburbs.

But when you climb the unfamiliar trail in front of you to the top of the first mountain, only then can you find the next mountain beyond.

16 years and witness to suicides, rehabs, parties, stories, more money than God, investigations, lawsuits, lies and fistfights, he’s a successful options broker at the Chicago Board Options Exchange. He didn’t need a college degree to get educated but he had to have the guts to hang on.

(this place smells like the cab of a recycling truck on a hot day)

(this place smells like the cab of a recycling truck on a hot day)

And I’ll tell you the secret they don’t want you to know: it’s not the cab of a recycling truck but it’s still filled with raunchy porn, smells like stale beer, rotting fruit and dirty diapers. There’s just more money and more pixels, and looks better on TV.

Me? I just like to watch.

Sell the Sizzle: How to Turn $500 into $Millions With Your Minimum Viable Product

(what $8000 looks like on the web)

(what $8,000 looks like)

I spent $8,000 developing a web based visual media platform in 2011. It’s cool, and it works, and it’s out there on the web behind a password protected portal but it’s wrong. It should be prettier, easier to use and mobile. I lost money and time. I overbuilt the product before I had traction. I didn’t apply the idea of The Minimum Viable Product properly.

(lean and mean)

(lean and mean)

The Minimum Viable Product is a concept written about in Eric Ries’ book The Lean Startup. It’s now the de facto standard for startups. Before you waste money and time overbuilding an idea, you create something minimal first. The biggest problem with the concept of “The Minimum Viable Product” is what “Minimum” and “Viable” actually mean.

I’m working on a new product-based company and it has major traction. Starting this company cost $317. I had an idea for something I needed. I made 4 prototypes, each a different color. I posted some photos of it on social media and my friends said “Cool! I want one!”

But I didn’t believe them. You can’t trust your friends.*

So I took the prototypes to 5 stores. If 3 of 5 stores wanted it, I’d move forward with figuring out the details and getting them produced.

Four of the 5 stores wanted it NOW. Everyone said “Yes.” The product worked but wasn’t finished.

We figured out the details, took a few orders launched into 3 stores and sold out in 4 days. We refreshed the inventory and sold out again. Every new store we’ve opened sees a similar trend. We’re validated and now we’re going big.

We even developed a no-lose negotiation strategy that converts stores who say “no” to “yes” instantly and even makes them long-term customers.

We have revenue, demand and our idea is validated. Now we are confidently allocating more capital with a high expected return.

We’ve filed patents and invested in infrastructure. We’re refining our logo and branding. We’re getting better product photography and making promo clips. We’re begging media not to publish anything about us because we’re just a few steps away from being able to fill massive demand. We’re going to blow the doors off of a category that has been stale for 30 years or more.

We had revenue before we had a real product. That’s what matters. Now we can hunt without starving first.

(sell the sizzle)

(sell the sizzle)

The key to the MVP is one goal and one goal only: accelerate the sales cycle. The MVP should get you from concept to traction. If no traction move on immediately.

Don’t waste your time on infrastructure or paperwork or permission or overly ornate packaging or a business entity or lawyers or following “the rules” you think are required. Time is your greatest asset. You don’t even need a business plan. Whatever it takes to get to your customer saying “yes”, or better yet “holy crap I want that” is the point of the MVP. Any business can use the MVP philosophy.

Everything starts small.

Validate first, scale and grow later. Talk, date, marry, have kids.

Sell before you spend, promote before you develop, get users and customers before you dig a hole, don’t overdevelop your MVP. Don’t commit too much too early.

Sell the sizzle.

(lizanne falsetto started ThinkThin products in her kitchen. p.s. they're really good)

(lizanne falsetto started ThinkThin products in her kitchen. p.s. they’re really good)

Want to sell cookies? Bake a batch in your kitchen and sell them. Have a product idea? Prototype it cheaply and get orders with the prototype. Got a great beer recipe? Brew it and get restaurant or bar owners to try it. Mobile app? Design it in MS Word or Photoshop. Think of all the corners you can cut. It’s like speed dating for business. You talk, flirt and if there’s a fit you go on a date. You know very quickly whether or not you’re attracted in the first 6 seconds (aka “Blink” by Malcolm Gladwell).

That’s the point of an MVP. If you can’t sell the sizzle, put it to bed and move on. Don’t lose your hard earned cash or your time.

Want more? Read my friend James’ guide to selling anything and the story of how he started stockpickr.com for $500 and sold it for $10mil.

This is how to make $millions with a minimum viable product.

So what’s your idea?

*Unless they are honest or have a solid history of being accurate in their opinions