James Tuckerman, Editor-In-Chief, Anthill Magazine

Have you ever heard of a ‘flash protest’? It’s similar to a ‘flash mob,’ where a group engages in seemingly spontaneous but actually synchronised behaviour.

The concept has been attributed to Bill Wasik, an editor at Harper’s Magazine, initially as a kind of street performance. Popular examples of the ‘flash mob’ concept involve getting dozens of people to perch on a ledge stone in Central Park (all making bird noises), a ‘zombie walk’ in San Francisco and an incident where over 100 people ‘froze’ perfectly still in New York’s Grand Central Station for one minute.

But it can also be used for political purposes. Let me give you an example…

Not so long ago, a small group of Belorussian citizens decided to stage a protest against the autocratic President of Belarus, Alexander Lukashenko. The country had cut loose from the USSR after the collapse of European Communism. While many former Soviet states embraced the democratic process, Belarus retained a state-run economy and a President reluctant to give up his own brand of unchecked power.

So, what would you do if you were part of a small group eager to bring about political change in a state-run country like Belarus?

Option A: Stage an angry protest, with placards and organised chanting, where you would most probably be arrested during the planning phase, before even the first slogan could be shouted.

Option B: Stage a ‘flash mob’ by inviting participants through email and SMS to ’spontaneously’ show up at a public location and join other disenfranchised citizens in the act of eating… wait for it… ice-cream!

The second option is exactly what happened in Belarus in May 2007, soon followed by a mass ‘reading’ protest, and later a mass ’smiling’ protest. The two main benefits are obvious: 1) The plan cannot be ‘thwarted’ by the establishment due to the viral and instantaneous nature of new communication technologies; and, 2) It’s hard to arrest someone for eating ice-cream, reading or smiling without attracting international condemnation.

Of course, there’s also nothing more liberating (and nothing more politically destabilising to an autocratic state) than the public’s realisation that other’s are equally dissatisfied with the status quo.

Back to Commercial Ready…

According to the AFR, on 19 May 2008, at least 220 aspiring technology entrepreneurs were caught in the surprise axing of the four-year $700 million Commercial Ready program in the federal budget.

For a full grants overview (the good, the bad and the ugly), click here.

These people had spent hundreds of thousands of dollars collectively on their applications, and were offered little more than a letter explaining what other funding programs they might be eligible for.

However, according to many industry pundits, the closure of this program also has significant longer-term implications for innovation in Australia.

As reported by Slattery’s Watch, Ian Birks, CEO of AIIA, recently stated: “SME innovation and growth is a critical component of Australia’s aspirations in the information economy… and we cannot afford to fall behind in these areas.” While TVP General Partner Mike Zimmerman commented that he believes the death of Commercial Ready “will be an enormous blow to SMEs in the ICT sector… Many of the industry’s successful start-ups (and their investors) had seen the CR grant as THE critical government program supporting innovation.”

And from Perth-based venture capital investor Matt Callahan, published in the AFR: “Wow - that is probably the biggest damaging stake into the start-up companies’ heart I have ever heard of. I am stunned.”

Anthill also received an alarmingly large number of anonymous and public comments. Hence, this blog post.

So, what’s the plan?

Step #1: Add your comments below. Is there a genuine complaint to be made? If so, where should this complaint be directed? Your feelings, thoughts, opinions and suggestions will shape our actions.

Step #2: Join us in the first stage of a ‘flash protest’. You won’t be required to go anywhere or do anything complicated - just make a phone call when prompted by SMS.

To leave your mobile number and join the ‘flash protest’, click here. (Of course, we won’t pass on your private details to anyone else. This is all about activism! The power’s in your hands.)

Step #3: Forward this blog post to everyone you know who will be detrimentally affected by the scrapping of Commercial Ready (and anyone you know who is likely to feel strongly about the impact it’s closure will have on Australian innovation).

Step #4: Wait. Over the next five days, we’ll form a plan based on your comments and suggestions and the volume of responses we receive, and then alert you via SMS (see Step #2).

Here’s our ‘out’ clause…

If this ‘call-to-action’ fails to generate a significant response, we’ll drop the cause and move on. If the Federal Government introduces changes that will circumvent the complaints, we’ll again move on. And lastly, if this begins to get beyond us (we’re a small team at Anthill), we might need to review our position (and get back to work, so the next issue comes out).

Whatever the outcome, we’ll keep you posted, as we’re sure that whatever path we take, the outcome will present an interesting story on the rise of social networking technologies and ‘digital activism’.

What next? Get active, Anthillians.

To join the ‘flash’ protest, click here.

Leave any comments or remarks you might have below.

James Tuckerman, Editor-In-Chief, Anthill Magazine

A couple of days ago, I caught up with an old school friend. When the topic of Anthill came up, he said with obvious but ill-directed admiration, “You must be a millionaire!”

‘If only that were true,’ was all I could think, before delivering a suitably ambiguous Cheshire grin and dropping a generous tip (the service was exceptionally good).

So, why am I not a millionaire? Anthill must be doing OK? (You might think.)

Well, to be frank, a business is only worth how much someone else is willing pay for it. And, until that time, it is worth the amount of profit it delivers to its owner or shareholders.

It’s also worth the pleasure it brings to the entrepreneur, of course (which is why I described my friend’s admiration as ‘ill-directed’, as it reflected his measure of success, not necessarily mine).

However, to get to the point, this harmless and well-meaning comment by my old acquaintance got me thinking. It initiated a ripple of thoughts, culminating in one final question…

How much is Anthill actually worth?

Understanding the value of any given business or opportunity is, of course, vital to its long-term success.

Firstly, because financial valuations are useful as a sanity check. (Am I treading forward or backward?)

Secondly, because knowing the value of a business allows you to reward staff with equity. (How can you allocate options without knowing the company’s fair value?)

And thirdly, because the value of your company is the first thing a potential investor or buyer will ask in the event of a capital raise or trade sale.

Yet, even the most sophisticated investors still describe private company evaluation as a ‘black art’.

So… over the next new few weeks, I plan to review five different aspects of valuing a private company. And, of course, I’ll be seeking your comments and observations along the way (call it learning by teaching).

Therefore, if you are interested in the value of your business, or if you are interested in the potential value of your business opportunity, read on. If you are an expert in this area, please join the conversation and help inform our readers (including yours truly).

To get the ball rolling, I propose that this blog series consider the following five topics:

Terminology (Liquidity Event, Hurdle Rate, Pre-Money Value, Post-Money Value)
Comparable Method of Valuation
Discounted Cashflow Method of Valuation
Profit Multiple Method of Valuation
Strategic Buyer Method of Valuation

If you have any further suggestions, please don’t be shy, as together we attempt to explore the ‘black art’ of business valuation.

James Tuckerman, Editor-In-Chief, Anthill Magazine

The high number of phone calls and text messages sent my way in the early hours of this morning had me quite panicked.

What had possibly gone wrong in the world that had people texting me before breakfast?

Well, it seems that Anthill lovers (or maybe just ant lovers) Australia wide felt that I should be made aware of BRW’s foray into ant-related visual metaphors.

Despite the aggrieved tone of some of the emails sent my way, I don’t think anyone can blame BRW for using a compelling image (and, we must admit, common metaphor).

In answer to the most common question…

I don’t think it suggests that BRW is looking for ways to emulate Anthill, even if the image does ever-so-slightly echo the Anthill brand. (It’s a very faint echo in a very long tunnel.)

Nevertheless, thanks to all those people who felt passionate enough to touch base.

We love you ’cause you care.

James Tuckerman, Editor-In-Chief, Anthill Magazine

Not so long ago, I was visiting a fairly mainstream website (owned by one of Australia’s larger media companies) when a banner ad popped up with an unexpected proposition… “Would I like a Hummer?”

Despite my moderate take on most things, I was surprised.

We’ve all been made lurid offers at one time or another while trawling the never-ending abyss of expressive freedom that is the World Wide Web. But I never expected this from one of the mainstream players.

Until I realised that the puerile part of my brain (that bit that makes me giggle when I hear the word ‘Titmouse’ and has me work in ever creative ways to get my friends from New Zealand to say the word ‘Six’) had led me astray.

Of course, this is exactly what the advertisement had intended.

Because, despite the sexual double-entrendre, the advertisement was, in fact, for something less exciting. It was for a service as dull and completely asexual as financial lending.

Yup, a Hummer is a very large American Four-Wheel-Drive and the business behind the advertisement is called, I kid you not, Debbie Does Carloans, fronted by a website reminiscent of that staple of yesteryear, the old auto-shop calendar (women draped over cars, holding various odd mechanical apparatus, with expressions suggesting that life could never be better).

I’ve included the link above because I’m sure that you’re mature enough to decide whether you want to click through or not.

Plus…

I’m conflicted.

Despite my initial surprise (and obvious curiosity) and even though I was honestly amazed that this sort of blatantly sex-centric advertising still exists (I thought John Singleton had retired?), I can also see the merits of the marketing angle.

The brains behind Debbie Does Carloans clearly knew what they were doing.

In short, they identified a demographic (young, male rev-heads), then created a product specifically designed to appeal to that demographic. Further, the entire concept is based on a history of sexual marketing that brings another dimension to the campaign.

It reeks of parody, with a touch of retro (two powerful tools strong enough to soften even the hardest of cynics).

And, of course, that makes me want to write about it (despite the possible inference that I am cheapening the Anthill brand by leading this blog and our weekly email newsletter with the risqué headline above).

More than one Anthill author has already made the observation that the sex industry is one of the most powerful litmus tests of where technology and business is heading.

We’ve all heard that Gutenberg’s printing press was quickly pressed into service by pornographers, after he failed to make a commercial go of it, assisting massive widespread adoption of the device.

It’s also been suggested that the battle between Betamax and VHS was won as a result of the porn industry’s wide adoption of the cheaper format, VHS.

And finally, the decision by Toshiba to cease production of HD-DVD earlier this year was apparently partly influenced by the fact that Sony’s Blu-Ray alternative has greater disc capacity and, therefore, allows more camera angles, which is of greater appeal to a certain high-volume category of viewing customer.

Yet, the question remains…

Was my initial reaction prudish or justified? While this sort of advertising is blatantly sexual, is it gratuitous? Or more to the point, is this the sort of information Anthill should be writing about?

James Tuckerman, Editor-In-Chief, Anthill Magazine

It’s often said that entrepreneurs see the world differently.

It has been observed that entrepreneurs have a higher tolerance for risk. They are also able to see opportunity where others might only see peril. Or, at least, that’s the common wisdom.

They are said to be creative, right-brain thinkers, big-picture people.

This is an assumption I’d like to test.

When we interview a new prospective employee at Anthill we ask the following question…

Q1: If a turtle loses his shell, is he naked or homeless?

Of course, there is no correct answer. But the thought process behind the answer can tell you a lot about a person. Ask a friend what they think the answer is and how they reached their conclusion.

You’ll see what I mean.

We also have a simple way to test honesty. (Entrepreneurs are often said to be inherently flexible on matters of honesty, a vastly erroneous claim in our experience.)

Here’s a factual scenario: My sister lost her purse eight times between the ages of 12 and 18 (true story).

Q2: How many times do you think the purse was returned?

Q3: Of the times the purse was returned, how many times do you think it still contained her money?

The answer will depend on your level of trust and distrust, which is usually a reflection of your own capacity for honesty (the degree to which you might have been tempted to do the wrong thing if you had found the purse).

For example, ask a child under 10 this question and then ask a gentleman of eighty. You’ll get a vastly different answer. Ask a priest, then a criminal and you’ll find a similar disparity.

So, how did you rate? How many times did my big sis’ get her purse back?

Eight out of eight.

How many times did the purse still contain her money?

Eight of eight (again).

So, here’s my final test. And I’m seeking your participation (through an online poll).

Below you’ll see an image of a girl turning.

But is she turning clockwise or anti-clockwise?

If clockwise is your answer, then you use more of the right side of your brain (the creative side). If she is turning anti-clockwise, then you use more of the left side of your brain (the analytical side). Most people see the dancer turning anti-clockwise.

But what is the natural reaction of the Australian innovator and entrepreneur?

Help us find out by taking part in our online poll. Are entrepreneurs left brain or right brain thinkers? Is the girl turning clockwise or anti-clockwise? To join us in our not-so-scientific experiment, click here.