All posts tagged mistakes

The end of Bionic Hippo

by Wells Riley on January 13, 2012 in Design, Entrepreneurship with 15 Comments
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So I guess this was pretty unexpected. It’s not exactly how I planned to start 2012, anyways. Here’s the story.

In January 2011, it became necessary for us to grow quickly. We started out as a two person design & dev shop and, despite an impressive portfolio, we just weren’t making money. We made some hires (two designers and a new developer) and pivoted our business model. What was once a website design firm for bands became a UI/UX, Branding, and Software Development firm building web and mobile apps for startups. Quite a big leap.

I had built a very talented team around myself, and I knew we were up to the challenge. As a solo designer (the so-called “creative director”) I did fantastically well. I knew what needed to get done and what every deadline was. If I had a question, it was easy to contact the client with no middleman. Introducing a staff changed everything. Designers needed guidance and leadership. Every question, every revision, every deadline flowed through me. I had all of the accountability and quadruple the responsibility.

Anyone in a management position is probably rolling their eyes right now. Kudos to you folks… I had no idea how hard your job is, and the consequences when things go catastrophically wrong. Now I know.

Managing developers on exponentially more complex projects was even worse. Early in 2011 all of our developers were contractors – we didn’t have the financial stability to hire just yet. I trusted the most pivotal part of my company’s growth to outside workers, and it ended up destroying my company. I posted my blog post about Tony Hsieh at Zappos a few months after I learned this lesson, and I’ll say it again here:

Don’t outsource your core competency!

The developers were unreliable. They didn’t care about my company, my client, or their deadlines. They cut corners, made excuses, and lied. A week before a huge deadline, I was informed that no significant work had actually been done despite weeks of updates.

I sat down in a coffee shop with said client, and I remember the moment clear as crystal. I felt horrible. I was shaking. I had royally fucked up, and it was all my fault. Months of waiting, thousands of dollars, marketing dollars spent. No product. All we had to show for hours spent doing UI and UX and thousands spent on office space was a few photoshop mockups of what the product should look like. I told them this with their mouths agape. Was this really happening?

I promised to fix the problem, and told them it would be complete in under one month. All things considered, it was a seemingly impossible feat. I made a promise based on a gamble that the speedy developers I had in mind were actually available for work right now.

They were.

Unfortunately, I spent the whole project budget on their services. That’s money that was supposed to fund my work, the other designer’s work, branding design, front-end development, office space, our lawyer, and our accountant. All of that money now came directly out of my pocket to pay everyone who had worked so hard. It was devastating, but we weren’t ruined. We still had one other huge project that was certain to be our saving grace.

That other project was massive, and there was enough money in it to squeeze through. Not only would I be able to pay myself back, but still manage to pay everyone else. It was perfect. But then the unthinkable happened.

The same goddamned thing.

Different developer, different project, different platform, but same exact problem. Lies, delays, miscommunications, and no product on the due date. Different coffee shop, different client, same conversation. My mind was spinning out of control. What the hell am I going to do? How can I recover from this? It was at this point I started chronically losing sleep. Paranoia, stress, and frustration became baseline for me. It stayed like this for a month.

Fortunately, I was able to find another developer relatively quickly. He promised quick, professional delivery AND could start right away. He also had a portfolio of previous work. The client and I agreed he was the right choice.

Yeah, we had problems with him too. The deadline was pushed by months. Tons of money lost. All my fault.

It’s at this stage I felt completely defeated as an entrepreneur and leader. I failed horribly. This would be my second failed startup in less than two years. This time was different, though. I had disappointed my clients, my staff, and myself. Lots of real money was on the line, and everything that could have possibly gone wrong went wrong. I had to do something drastic before the townsfolk came after me with pitchforks and torches.

A New Page?

I chose to ditch the software development side of Bionic Hippo entirely. I’m a designer, and I do damn good work. My colleagues do damn good work too. In the waning months of 2011, we became a design-only consultancy. We had no clients because everything had screeched to a halt from before. We were still cleaning up our mess, but we had a plan. Out of nowhere, A Boston Startup Accelerator invited us to do a residency during the January – May session, and two HUGE new potential clients came forward. They wanted only UI and UX design. it couldn’t have been more perfect! Office space, publicity, money, and unlimited access to our target market. All of which came at little to no monetary cost – something that had become a critical issue. We had only about a thousand dollars in the bank, which can hardly buy anything for a 5-person team of consultants.

Talks with the Accelerator were laborious, but we ended up with a great deal. In exchange for mentorship, events, presentations, and some work, we were offered free office space and access to their extensive network. We were going to push “Design as a Core Competency” and the growing trend of “Creative Co-Founders”. I talked to designers from Facebook, Zaarly, Square, Zerply, FictiveKin, 500startups, and The Designer Fund (among many others). I flew across the country to San Francisco to gain a wider perspective on the matter. It was going to be incredible.

I asked my lawyer to draft documents granting equity to my founding partners. We were going to be a real company, and everyone was going to take part in our success. That set us back almost half of our remaining savings, but it was ok, right? Gotta spend money to make money.

By the time I got back from SF, we had been waiting about two months to get the final green light from the Accelerator. They promised an answer on the date that coincided with my return from the west coast.

Nothing.

More prodding… nothing. “We’ll talk in January” they said. I couldn’t wait until January. I knew it just wasn’t gonna happen. We’d run out of money before then. They didn’t know that because I was too proud to tell them.

Fortunately, I heard back from one of our huge prospective clients. All was not lost!

They they said they chose someone else. All was lost.

I made an executive decision. We had no money, no work, no office space, and a tarnished reputation. We were all exhausted. I was responsible for not only providing for myself, but providing for four other people. It was going to be impossible, and I couldn’t ask my team to make that kind of sacrifice, especially right out of college. Instead of running face first into the ground, I decided to wave the white flag. We were beaten, and it was time to gracefully move on to bigger and better things. I’m incredibly thankful that we ended when we did… we have just enough money to pay everyone with some scraps left over. I don’t know what I would’ve done if we had gone bankrupt. I hope that’s a lesson I’ll never have to learn.

I’m also fortunate that everything ended on a relatively good note. As a team we went through hell together, and the abrupt end didn’t come as too much of a shock to anyone. We’re all still BFFLs and helping each other out whenever possible. That makes me really happy.

Moving On

I’m now seeking employment at some exciting startup that understands why design is so important for startups, their products, and their users (and, most importantly, hiring designers). I learned so much about design and now I want to apply that knowledge. I’ve learned a lot about management and teamwork, too. I’m hoping to move to San Francisco — It’s going to be a huge change for me, but I think it’ll be worth it. I still have a lot to learn, and I need experience working with smarter, more talented designers. It can only make me better, and it’ll give me the opportunity to make different mistakes.

I’m not done being an entrepreneur… I never will be. It’s in my DNA. I can’t see myself not working in or around startups right now, and I’m definitely going to be a founder again someday.

We’ll see where this road takes me.

Customer Service – The Missing Link

by Wells Riley on September 21, 2011 in Entrepreneurship with 2 Comments
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My brain is going to explode.

I’ve been reading Delivering Happiness by Tony Hsieh, CEO of Zappos. Having spent a VERY small amount of time in ‘product’ companies, some of his anecdotes and wild apartment rave stories are somewhat hard for me to relate with. Thankfully, 99% of his book is general “how to make your business totally kickass” advice rather than product advice, and it has profoundly changed the way I think about my business, my employees, and the companies we choose to do business with.

For one of the largest online retailers, Tony spent very little time talking about retail. The primary message was about company culture and customer service. I thought I had a fairly decent understanding going into this book, but no. I absolutely did not. Then I remembered my most recent interaction with Zappos (a pair of Blue Onisuka Tigers) and I understood the genius behind their customer service. I ordered free 7-day shipping, but was upgraded to next-day for free. What.

Zappos has 10 Core Values. #1 is “Deliver ‘WOW‘ through service”

Wow, indeed. Upgraded shipping is a small gesture, but it has such HUGE meaning. I mentally prepared myself to wear new shoes a week after buying them. Finding them on my doorstep the next afternoon was just unfathomable. I felt really special. I felt like Tony Hsieh himself was looking out for me and my blue shoes. Not only was I sold on the footwear, I was sold on Zappos. How could I ever shop elsewhere when such a magnificent company has my back?

And why the hell am I gushing about a shoe store? I’m a man. And a quite manly one, at that. There’s clearly some sort of witchcraft going on here.

So I started thinking. If a shoe store can make me weak in the knees, why not any other company?

And I kept thinking. Well? Why the hell NOT anyone else? Seriously! What is Zappos doing that even my favorite brands aren’t doing? How are they converting people from prospective customers to loyal customers in a flash? Is customer service really that blindingly powerful? How did Zappos get it so right?

I think I’ve narrowed down three things every company should understand to get some of that customer lovin’.

1: Be simple, fast, and easy to talk to

Another great example here is Amazon. When you call their Customer Support line, there are no phone trees. The interaction goes something like this:

Amazon: Thank you for calling Amazon Customer Service. A representative will take your call momentarily.
Amazon Rep: Thank you for calling Amazon. Are you calling about the order for bright blue socks you placed two hours ago?
Wells: Why yes. Yes I am. Can you change the shipping address to the other one I have on file?
Amazon Rep: One moment. Yep, all set. Is there anything else I can help you with?
Wells: Nope, thank you!
Amazon Rep: Thanks for calling Amazon! Have a great day!

iPhone: Call ended. Total call time : 58 seconds.

Anywhere else, I’d have to traverse a complex phone tree with “recently changed options”, clumsily punch in my order number, press #, wait on hold, then tell the CSR my order number, name, address, and credit card number. Again.

Why is this so difficult? Amazon isn’t special – almost every retailer I interact with has my phone number on file. Why can’t they use Caller ID to determine who I am and automatically look up my record? The chances someone stole my phone to hack my order for blue socks is pretty slim. Amazon gives me the benefit of the doubt and I save 20 minutes. I also write a fairly long blog post evangelizing them because of it.

The takeaway: Don’t waste anyone’s time. Technology makes mundane tasks blisteringly simple if you can use it right, so use it. Customers will be unbelievably delighted that you took the time to not waste theirs.

2: The ROI on Kindness is always higher than the investment

While shopping on HP’s webstore, you might be greeted with a popup asking you to take a brief survey. Personally, I hate surveys. Why can’t HP do their own research without blatantly annoying prospective customers with market research?

One time I decided to take the damn survey.

It took me 10 minutes, and after the last question I was offered a big “Thanks!”…. bye. What? No coupon? No raffle? Nothing? I find it hard to believe an interaction like this would fly in person. If you stopped a customer in your store to fill out paperwork, would a “thank you” suffice?

This person is GOLD to your company. They care enough to hand you research with no prior incentive. You need to pamper this customer because they’re at the tipping point of mind-blowing love for your company. Chances are that, if you gave this person a 20% coupon for their time they’d not only make a purchase, but they’ll probably tell their friends how great you are. You invested maybe $50-100, but that small investment could turn into thousands of dollars worth of sales.

I treat Bionic Hippo customers to free coffee, lunch, or drinks – often. It’s really expensive. I worked up an $80 tab with a client a few weeks ago and paid straight out of my own pocket. Have we received more than $80 worth of referral work with new customers gushing about how much their friend loves Bionic Hippo? You bet. I always wince at a high bar tab, but I know the personal touch is worth it. They’re my customers, and I love working with them. As a thank-you for a great relationship and spreading the good word, it’s the absolute least I can do.

3: Great customer service is more important than the product

Blasphemy! How could that possibly even be true? Wells, you are wrong and a liar.

Hear me out… it’s really obvious. Products and services are relatively straightforward, and there’s probably a handful of companies doing the exact same thing as you. Assuming you can’t create a technologically superior product than the competitor with $20m in funding and a three-year head start, how can you differentiate yourself? How can you beat a giant at their own game?

Let’s talk about Groupon.

Groupon is the undeniable leader in daily local deals. They OWN the market. But there’s a problem. Small businesses HATE Groupon because they’re slimy bastards. Groupon is completely self-serving and has no interest in the welfare of the small businesses they market themselves as trying to protect. They’ve created an unrealistic expectation for consumers – is 80% off even possible for a fledgeling business? No, absolutely not. That’s obvious, but what do you expect consumers to do? Ignore cupcakes at 80% off? It’s a vicious cycle, and Groupon takes it straight to the bank.

Google, Facebook, LivingSocial, Yelp, LevelUp, etc, etc, etc, have tried to replicate this exact model and all have failed. LivingSocial and LevelUp have pivoted to niche markets or different business models completely. Groupon completely owns the small-business-killing daily deals space. But Groupon has an expiration date. It won’t be long before small businesses ditch Groupon entirely in lieu of something more stable, lucrative, and honest.

The winner of the daily deals space isn’t going to have the highest discounts. It’s going to be the company who can offer excellent customer service to their bread-and-butter customers – the small businesses. To make a nod back to #2 above, kindness goes a long way. Rally behind local businesses, and they’ll rally behind you. Make them gush over how great it is to work with you, and everyone on Main Street will jump ship from Groupon. The expectation of ridiculous deals will die with their horrible service, sharky tactics, and bogus marketing. Once every local business is on your new deals service, consumers will have no choice but to buy deals through you. You’ll hit critical mass before Groupon can even pull it’s head out of it’s own ass.

The product doesn’t matter. It doesn’t matter if you’re selling shoes, hedge clippers, or 20% off falafel at the shwarma place down the street. Customer service seems to be a lost art in this age of digital impersonality. Just because a customer is on the other end of a phone line or webpage doesn’t mean you don’t have the opportunity to delight and surprise them – WOW them, maybe? – with excellent service. The fact that companies with ‘excellent’ customer service is so rare really speaks to what businesses have become lately – but it also presents a fantastic opportunity to rise above the scruff and delight your customers.

I know it’s working here, anyways.

Four Common Mistakes Designers Make

by Wells Riley on July 11, 2011 in Design, Freelancing with 1 Comment
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Graphic designers have a very interesting task.

Their work is largely subjective and based on experience, insight, and inspiration. While developers (and bankers, construction workers, and mailmen for that matter) also rely on these traits, there’s a certain sense of ‘right and wrong’ in these professions. If a HTML form doesn’t work or a mobile app crashes at launch, it’s much more obviously “wrong code” than something would be a “wrong design.” Does such a phrase even exist? Not really.

Designers also have incredibly diverse starting points. Some are classically educated, others aren’t. Some start in large firms while some freelance exclusively. Whether you’re an experienced freelancer or a newbie designer, here are a few mistakes I’ve made and seen other designers make.

1. Undervaluing the Work

I once read a story about a wedding photographer who charged $1000 per shoot. It wasn’t a livable income, but she was only a freelancer and held a full-time job elsewhere. After a little while, she couldn’t justify the time expense for what she was charging and decided to double her rate. $2000 for the same shoot, same equipment, same photographer. She hadn’t gotten “better” (in the arbitrary nature of that word) but she knew her time and expertise was worth more.

She became better known due to the higher “non-amateur” rate and more couples began requesting her services. To make a long story short, a year later she was being flown around the world to exotic vistas and tropical islands to shoot weddings at $50,000 a pop.

So what happened here? Did she scam her customers by charging more? Is she a huge jerk? If you’re an aspiring photographer you might be thinking to yourself “Wow that’s ridiculous. I could shoot an awesome wedding for like… $500!”

Well yes, you could. If that’s what the work is worth to you. So many photographers (and designers) follow this mentality. They know the work – and maybe it comes naturally or they enjoy it – so they have a difficult time charging what seems like “exorbitantly high” rates for their services. It’s a psychological barrier preventing many freelancers from succeeding at all.

Give yourself an hourly rate (even if it’s just for yourself) and double it. If clients turn away, re-evaluate the project. Is it WORTH your ‘original’ rate? Do you want the project that badly? Do you need the work to pay rent? Will you enjoy spending time on it? If not, then maybe you should let it go. It may be hard to believe, but better work will come your way. I can’t explain how… it just ‘happens’.

If you’re feeling guilty, think about it this way. People need you because you have a highly desirable skill. You’re knowledgeable and have what it takes to execute on something they could only dream of. You also provide invaluable insight that they couldn’t possibly have from a non-designer position. How much would you pay a lawyer or developer per hour to do something you can’t do yourself? I doubt they’d work for $12/hr… ever.

2. Not Taking Charge of a Project

So we’re on the same page and you’re at least thinking about what you’re really worth, right? Let’s add some value to that price increase of yours. As a hired professional, customers look to you for insight and advice, whether they make that apparent or not (and if they’re not, then they’re not the kind of client you should be working with). If you’re dealing with something like this on a daily basis, then you’re not asserting yourself and not taking charge of your project.

Don’t be afraid to be frank and truthful with clients, even if it goes directly against a request, suggestion, or idea they’ve given you. If your dentist suggests you brush your teeth with toothpaste instead of table salt, who are you to argue? He’s the one with the education and experience. If you can command your project and demonstrate your authority over the subject, clients will listen. I was an abused peon for years before I wised up and acted like a professional.

3. Not Practicing

This one seems obvious but I see it happen a lot, especially with students. Once work (or classwork) is done,  you don’t touch Photoshop or a pencil until you have to again. Oh no.

Graphic design is a constantly evolving skill. You can’t get anywhere if you don’t practice, test your boundaries, and create constantly. The worst thing is to get into a creative slump or get stuck working all the time. I design out of passion and I’m constantly creating different things for myself. Most don’t even see the light of day, but it’s good to flex the creative muscle outside of ‘required work’ once in a while.

4. You Don’t Know How to Say No

This one is my favorite. Everyone says it – it’s like the Golden Rule of freelancing. “Know when to say ‘NO!’ to clients.” I used to be naïve less naïve and thought this didn’t apply to me. I wasn’t getting an overwhelming amount of work and could technically handle all of it. How could I possibly turn any project down?

I think this is one lesson that can only be learned from experience, because I think every freelancer or newbie designer disregards it. With experience comes knowledge and expectations. Bionic Hippo has carved out a nice niché in entrepreneurship and startup companies, and we’re surprisingly particular about which projects we take on. Clients need to have a certain attitude, a vision, and clear direction. We value our time (see #1 above) and prefer spending time on awesome boundary-pushing projects than those with no vision, no business, and no passion. It’s that specificity regarding clients that keeps us on task and constantly working towards the goals we want to achieve.

Great clients respect (and may even demand) this kind of attitude. They don’t want to be lumped in with the ‘least common denominator’ clients – you know, the people who pay you squat, disrespect the craft, and use your skills as a talking, emailing mouse cursor.