Traditional credit card processors are able to settle accounts daily. It remains to be seen if Square will offer a similar service. Many established merchants (especially restaurants) desire what is called "real-time billing" or getting cash in the bank once the card is swiped rather than waiting for payment to be deposited or settled.
The other problem is that Square accepts anyone. The reason its difficult to get a merchant account through other payment processors is because chargebacks ARE EXPENSIVE.
(payment processors will not accept a merchant that is above a 2% chargeback rate). This means that Square will be susceptible to a larger amount of chargebacks (which means that most of their angel funding will likely be in an escrow account to protect against chargebacks).
Great idea but we'll see how these issues are handled.
The recent Buzz around Google Buzz is quiet intriguing. Many tech enthusiasts seem to have a love/hate relationship.
I have turned-off Buzz in my gmail (simply because I like Gmail for mail. period. I already have enough distractions) but I think the product is not to be written off as some hack attempt by Google to compete with Twitter/FB/Tumblr.
Here is why I think Google Buzz could be a big social media player:
1. Opportunities for Mobile (Android and Nexus One)
- Buzz API allows you to see friends buzzes on Google Maps on Android. As Android begins to take the smartphone market share, Buzz will likely be deeply integrated into each phone, taking away the need to download third-party applications to run Twitter etc.
2. Google Buzz auto generates your network= a great feature that makes sense. This also creates the critical mass necessary for a social network. If you use gmail, and are not too active on Twitter or Facebook, Google Buzz is a great and easy way for "normals" to get involved in social networking and posting/sharing/"buzzing"
3. Buzz is Fast
-Over the past 2 years, I have simply spent less time on Facebook. Why? Information overload. Facebook is just getting a bit sluggish.
I just recently graduated from a top undergraduate b-school program. As an entrepreneur, I don't see anything that enticing about going back to get an MBA. Even if I was accepted into a top tier program. Why you ask?
Well, I am going to provide a very subjective opinion here, but would love to get some responses...
Most top ranked MBA programs cater to those who want to do one of 4 things after they graduate:
1. Become an Associate/VP in Private Equity
2. Become an Associate/VP in a Hedge Fund/Trading
3. Become an Associate in Management Consulting
4. Become a corporate executive
Now an MBA has some real benefit for those entering these fields and there is nothing wrong there. If you're an entrepreneur, I don't really see the added benefit of getting an MBA. Most of the knowledge obtained in the coursework can be learned through experience or just by picking up some literature (see "The 10-day MBA" by Steven Silbiger). From many seasoned entrepreneurs I've spoken with, an MBA limits the time you could be spending starting your business (unless you can start while in your program like Jerry Yang or Sergey/Larry)
There is an advantage through networking with other like-minded entrepreneurs in your program and using the school's resources, but it pretty much stops there.
The one exception I would make for an MBA program really benefiting the entrepreneur is hands down...Stanford.
Stanford has the proximity to the Valley and also the roster of success stories (yahoo, google, HP, Cisco, Sun) but it's real value is that it serves as an ad-hoc incubator for start-up innovation. Just take a minute and subscribe to the free podcasts from the STVP (Stanford Technology Ventures Program) on itunes and you'll get an idea of why Stanford seems to be the only program that values entrepreneurship.
If anyone can think of other MBA programs that help entrepreneurs, I would like to hear about them.
I Would have to agree with Ryan on the "fixed pie" thinking. This isn't an allocation issue, its based on productivity.
In the book "The 7 Habits of Highly Effective People," Stephen Covey explains a great theory called the P/PC ratio (production to production capacity). In other words, take care of your physical and mental self, and you will produce far better results in your work related endeavors.
People don't realize that not exercising and not eating healthy will severely limit your ability to work productive 40-100 hour work weeks.
I experienced the same effectiveness (95%-99%) of getting the "guy/gal reading the newspaper" to volunteer for the study first hand. Although, this was more focused in cafe environments.
Our team was trying to get beta users signed up for a location-based iphone app in the Boston/Cambridge area and most people reading newspapers in coffee shops or cafes are frequently willing participants. I even noticed that 7/10 times these people will engage with you in conversation regarding feedback/UX improvements etc.
In parallel with Rodyancy's experience, some of the user feedback was arbitrary (one guy started comparing our application to time/space continuum theories...etc) but nonetheless, I would advocate approaching the newspaper guy/gal as they are already on the knowledge quest and usually are more open-minded.
Oh, and avoid the book/textbook readers. These people are either really engaged in novel (imagine tapping on someone's shoulder during a movie) or are stressed-out students.
The other problem is that Square accepts anyone. The reason its difficult to get a merchant account through other payment processors is because chargebacks ARE EXPENSIVE. (payment processors will not accept a merchant that is above a 2% chargeback rate). This means that Square will be susceptible to a larger amount of chargebacks (which means that most of their angel funding will likely be in an escrow account to protect against chargebacks).
Great idea but we'll see how these issues are handled.