We know that not everyone can get to the Business of Software conference but we do want to be able to share some of the incredible stories that the speakers share. Most of the talks are posted online, with the permission of the speakers. Not everyone gets to sit down for an hour to listen to a talk though.

The Business of Software conference will be held in Boston, October 24-26th October 2011. We are planning to post talks online with a transcript of the talks so you can watch, or if you prefer, read what was said.

This is the first one. Derek Sivers, founder of CD Baby who recently published a book that ANYONE who is an entrepreneur, or is considering being one, should read – Anything You Want. It is short. It talks about values, not term sheets. Unless I am missing something, values should always come before term sheets.

We are massively pleased that Derek has just offered to talk at Business of Software 2011. He inspires, teaches and makes you think – the essence of what Business of Software is about.

You can see my notes taken on the day, with some pictures and slides here.

Transcript of Derek Sivers’ Business of Software talk:

Joel Spolsky: I want to introduce you to a musician who had trouble figuring out how to make CDs for his friends and realized it. Others of his friends might have the same problem and created CD baby, which is a huge hit. He sold that could figure out what to do with the money, are you going to tell them about that, or should I? Okay, he’ll tell you about that. And he’s currently working on something called Muck Work , which is not yet launched, I believe. Unless I’m not totally up-to-date. So stealth mode, no? He’ll tell you about that too. Derek Sivers.

Derek Sivers: Thanks. All right. Is it up there? Okay. So, you know, when you do a talk at a conference like this, you have to try and get the people what they want to hear. And you know, we learn from being here. It’s unwise to guess.

So I figured I might as well do some AB testing and let you guys choose what topic you want. So take a minute to look at the screen. Originally I came here on the program, I was going to talk A and because I can thought that this is more just a straight up give facts Conference. As I’ve been here for the last few days, we’ve heard some amazing stories from people that were in it and learn from what our mistakes, and learn from successes. So did everyone see the table of contents? Talk A? Talk B? Okay. Talk B if you want the full version of it has the sub title of how I screwed up so badly I had to sell. But the short version. So I figured if I had to just choose between talk a and talk b, then certain people would be just disappointed. ” So, could you just give me talk B later?” So I made sure I can do this last night. While the time thing is counting up. Okay, good. So if you want I can fit both talk a and talk B into 15 min. each. So, show of hands, even if you ordinarily don’t raise your hands. Option number one for me to do just talk a on profitability. Oh, wildly popular. Option to just talk B how I sold the company, including all the dirty details. Surprising. Okay talk three. I mean, option three. Combining a and B. Both. It’s kind of a tossup between. [Audience input] Or passionate users, for option two!

All right. Well then, just in case I was prepared to give a 1 min. version of the article probability. So let’s see. Doubling your prices can sometimes increase sales. A friend of mine, a puppeteer – raised his because he wanted more time to spend with the kids. Some doctors in China charge you when you’re healthy, not when you’re sick. So it’s in their best interest to get you healthy again so that you continue to pay them. You don’t pay them when you’re sick, because they’re not doing their job. Free conference calls, makes the conference calls free because of something they call traffic pumping. So that the rural long-distance carriers actually pay them for every long-distance minute that you call them. A Better Place Shai Agassi, gives away the car so that you use their electric system. It’s good to have more than one profit models, sometimes we have one profit model, but it’s collective pedestal. If you get a crack in the pedestal you only have one profit model, it could all crash. See you think, okay, I’ll have two profit models, I’ll be like Tarzan or you hold onto one line and in the next fine is coming up soon and you’re like, okay, got my next profit model ready. But you’re still at risk if someone snaps your vine. Do you see where I am in the slide? So, I always say it’s good to be kind of a table with many legs. Many profit models. So that anyone can crack and it’s not devastating. So I was can it talks about some things. But I guess I will go over the obvious. This short, TLDR; version of this is there’s a book called the Art of Profitability that I highly recommend. Most of those couldn’t talk about his better side in that. So it’s could be kindly just a sales pitch for the book. So write down that book, if you want to see what my first talk would’ve been. How’s that for a 1 min. version? [audience clapping]

We thought we would run a quick analysis of some of the fastest growing companies in the UK and see who the most common investors were. I was inspired to do so by Sherry Coutu who noticed that only 14% of the fastest growing 500 companies in the US were venture backed according to Carl Schramm.

Carl Schramm talking about US innovation and venture capital. The figure quoted above is 21 minutes in.

What we found was a huge surprise. Rapidly growing UK companies with venture backing represent about the same amount of the total.

We have run the Deloitte Fast 50 competition for the past few years and it has given us a really interesting view of the cream of the UK’s technology companies. The Deloitte Fast 50 is an objective ranking of the UK technology companies with the fastest growing revenue over a five year period.

In last year’s rankings, just 8 of the 50 fastest growing companies in the UK, are venture backed. Amateur mathematician’s will spot almost immediately that this is just 16% of the total.

Here is the list along with the sources of funding identified. (If anyone spots an error, please let me know and accept my apologies in advance), I did this over a glass of very fine red down in Biarritz where I find myself on vacation by mistake so it is not the fault of our research team. 🙂 It is also hard to make a proper distinction between ‘Angel funde’ an ‘Self funded’ in this situation.

• 2010 Rank, Company, Sector, % growth, Funding

• 1, Mobile Interactive Group (MIG), Software, 26885%, Angel Funding
• 2, DisplayLink (UK) Ltd, Semiconductors, components and electronics, 9041%, VC – Atlas, Balderton, DAG, DFJ
• 3, Mimecast Ltd, Software, 7579%, VC – Index, Dawn Capital
• 4, Translatemedia (Translations Online Ltd), Media and entertainment, 5409%, Self funded
• 5, Periscopix, Internet, 5147%, Self funded
• 6, Bglobal plc, GreenTech, 4447%, PLC
• 7, Forward Internet Group, Internet, 4443%, Self funded
• 8, Global Personals Ltd, Internet, 4391%, Self funded
• 9, UK Grid, Telecommunications / networking, 3348%, Self funded
• 10, Innovise plc, Software, 2124%, PLC
• 11, Helveta Ltd, Software, 2049%, VC – Albion Ventures, BeCapital, Oxford Capital Partners, Succes Europe
• 12, Moneybookers Ltd, Internet, 1831%, Self funded then PE
• 13, Grove Information Systems Ltd, Internet, 1817%, Self funded
• 14, Ubisense Trading Ltd, Semiconductors, components and electronics, 1730%, Angel funding. Now PLC
• 15, Latens Systems Ltd, Software, 1723%, Self funded
• 16, Focus 4 U Ltd, Telecommunications / networking, 1700%, Self funded
• 17, Gyron Internet Ltd, Internet, 1476%, Self funded
• 18, Lovefilm UK Ltd, Software, 1472%, VC – Index, DFJ, others. Purchased by Amazon.
• 19, Bloxx, Software, 1262%, Angel
• 20, Geo Networks, Telecommunications / networking, 1255%, Self funded then PE – Alchemy
• 21, Fluidata, Telecommunications / networking, 1253%, Self funded
• 22, Node4 Ltd, Internet, 1142%, Self funded
• 23, Biome Technologies Ltd, GreenTech, 1132%, PLC
• 24, Intamac Systems Ltd, Internet, 1112%, VC – Seraphim Capital, Octopus Ventures, Catapult Ventures, London Seed and Pace Microtech
• 25, BlueGnome Ltd, Biotechnology / medical equipment, 1096%, Angel/Challenge fund
• 26, Heart Internet, Internet, 1030%, Self funded
• 27, Greenlight Marketing Ltd, Internet, 1029%, Self funded
• 28, Fjordnet Ltd, Telecommunications / networking, 1002%, Self funded
• 29, Content and Code Ltd, Internet, 1001%, Self funded
• 30, Skyscanner Ltd, Internet, 997%, VC – Oxford Capital, SEP
• 31, Concentra, Software, 969%, Self funded
• 32, O-bit Telecom Ltd, Telecommunications / networking, 956%, Self Funded
• 33, TTG (Southern) Ltd, Semiconductors, components and electronics, 927%, Excell Group
• 34, Markit Group Holdings Ltd, Software, 872%, Private Equity – UBS, Citigroup, HSBC, Goldman Sachs etc
• 35, Yudu Ltd, Software, 868%, Self Funded
• 36, Cambridge Broadband Networks Ltd, Telecommunications / networking, 864%, VC – Amadeus, Accel, TVM, Adara,
• 37, Leaf Consultancy, Telecommunications / networking, 848%, Self funded
• 38, Net Media Planet Ltd, Internet, 840%, Self funded
• 39, C4L, Internet, 823%, Self funded
• 40, Saffron Media Group Ltd, Media and entertainment, 801%, VC – Beringea
• 41, HostelBookers, Internet, 799%, Self funded
• 42, Autonomy Corporation plc, Software, 796%, PLC
• 43, Beaming Ltd, Telecommunications / networking, 782%, Self funded
• 44, Rehabstudio, Hi-tech, 747%, Self funded
• 45, M247 Ltd, Internet, 745%, Self funded
• 46, ClinTec International, Biotechnology / medical equipment, 738%, Self funded then private equity after 12 years growth
• 47, Export Technologies, Hi-tech, 703%, Self funded
• 48, Retail Eyes (UK) Ltd, Internet, 701%, Self funded
• 49, Jagex Ltd, Software, 689%, Self funded then private equity after 5 years profitable growth
• 50, Gradwell Dot Com Ltd, Telecommunications / networking, 652%, Self funded

We were pretty staggered that so few venture capital investments were represented in the list. There are a few possible reasons, The Deloitte Fast 50 requires five years worth of accounts. Perhaps VC investments are in companies that get sold within 5 years? Perhaps they are in early stage companies that don’t yet have revenue (though the trend here seems to be that VCs are investing in later stage deals on the whole.

Maybe VCs should be letting their portfolio companies know about the Deloitte Fast 50 and should try to ensure their portfolio companies enter by 14th September so they are more properly represented?

The BLN ‘Growing Beyond £5m’ dinner will bring together some of the entrants from this years UK Deloitte Technology Fast 50 programme – along with a select group of CEO’s from software businesses growing beyond £5m turnover – to meet, share stories, seek advice and develop valuable business contacts (under Chatham House Rule) in a relaxed, informal and fun atmosphere.

Participants in previous events in this series have included founders/CEOs/senior executives from companies including: Iris Software, SalesForce, Mimecast, innovise, Netsuite, Entrust, Grove Group, Sysec, OmPrompt, 2e2, Workday, Black Hawk Capital, Xbridge, Corebridge, AVEVA Group, Cloudsoft and Huddle to name a few.

We are delighted to have the support of Deloitte, Erevena, Trinamo and Dorsey for this dinner.

There are many opportunities to attend networking events but we like to think that The BLN events are both high quality and a little different. You can see feedback from previous attendees here.

Please note that by applying we CANNOT guarantee a place, although we do our best to accommodate relevant individuals. Our priority is always to ensure that our guests are relevant to the specific discussion/sector focus.

Stop wasting your time sending apologetic emails about being late to submit your Lightning Talk and Workshop ideas for Business of Software. We are a pretty easy going bunch so we have given you a little more time to get your ideas in. Please submit to info@businessofsoftware.org by midnight PST on 14th August.

• If you are coming to Business of Software and want to lead a workshop about a subject you are passionate or expert about, here is how you get your idea in: http://blog.businessofsoftware.org/2011/07/run-a-workshop-or-unconference-session-at-business-of-software-2011.html

• If you are insane enough to want to subject yourself to the pain that is giving a Lightning Talk (not really selling it there huh?), here is what you need to do: http://blog.businessofsoftware.org/2011/06/lightning-talks-early-birds-and-the-business-of-software.html

To get your creative juices flowing, watch, and for the first time ever, read along to, last year’s winning talk from Patrick McKenzie, @patio11

Here is the full transcript of Patrick’s talk if you want to indulge in a bit of Lighting Talkeoke:

[Music] Good afternoon everybody, my name is Patrick McKenzie and I’m a software engineer from central Japan. Yes, I’m exactly as geeky as you probably think I am. [Laughter]

I’m going to be talking to you today about software for underserved markets. There’s many underserved markets in the world, there’s people with disabilities, non-technical customers, people outside the United States of America. [Laughter] There’s . . . [Laughter] It’s true. There’s one market in particular, it’s gigantic and I think most of us are missing it so I want to address that market and I want to address them directly.

A conversation with Simon Bridges (MD, Canaccord Genuity) & Andrew Hopper (Chairman, Ubisense Group Plc)

In this CFO Breakfast we will hear from two key players in the decision process that led to Ubisense’s recent IPO. They will share lessons learnt along the way, explain why Ubisense chose to IPO, and share advice with other CFO’s looking to raise capital.

The BLN Breakfast Brainstorm is a high-level peer-to-peer discussion forum for CFO’s to learn from each other, share best practice and advance the role of the CFO in high growth companies in a relaxed, entertaining and facilitated environment. The event is run under Chatham House Rule.

Attendees: The BLN CFO Breakfasts have already included some of the most experienced public and private company CFOs and FDs in the region including CFO/FD’s from Red Gate Software, NXT plc, nCipher, CSR, Alertme, Xaar, Domino, DisplayLink, Ubisense, Broadcom, Cambridge Broadband, Aveva, Ridgeons, Light Blue Optics, Nujira, Owlstone, Zeus, Sphere Medical, Atlantic Healthcare and 1spatial amongst others.

Supporters: This initiative is supported by BDO and breakfast is provided courtesy of Red Gate Software.

Places are limited and in high demand so a prompt reply is advantageous to secure a place. If you would like to attend, please get in touch.

Please note that by applying we CANNOT guarantee a place, although we do our best to accommodate relevant individuals. Our priority is always to ensure that our guests are relevant to the specific discussion.

– –

Business of Software, Boston, MA, October 24-26^th–http://businessofsoftware.org– For people growing sustainable, profitable, software businesses.

A guest blog from Josh Linkner, founder & Chairman of ePrize, the largest interactive promotions agency in the world and Adjunct Professor of Applied Creativity at the University of Michigan who will be speaking at this year’s Business of Software conference in October.

Most software, business (and life) decisions come down to a multiple choice question. Should we launch Product A or Product B? Should we develop in house or outsource? Should we choose design schema 1, 2, or 3? This is where 99% of the software world stops, selects an option, and goes on to spend countless hours justifying their decision.

And then there’s the top 1%. The best-of-the-best who play at a higher level. The ones who refuse to accept that there are only a few, obvious choices. These are the software development leaders who look at a multiple choice question and write in a new option to the list. They discover the Unconventional Alternative, and it ends up making all the difference in the world.

In 1912, Teddy Roosevelt was campaigning for his third term. Three million campaign posters were printed with his photo and about to be distributed, until it was discovered that the campaign didn’t have the rights from the photographer to use the photo. The copyright laws of the day allowed for the photographer to claim as much as $1 per poster, which adds up to over $60 million in today’s dollars. The campaign couldn’t afford to pay the photographer, but also couldn’t afford the time and money to reprint the posters. The multiple choice options seemed bleak.

Until a brilliant campaign manager sent a telegram to the photographer that said, “We are considering using your photo in the campaign. How much do you offer to pay for the publicity?” The photographer ended up paying $300 for the exposure instead of bankrupting the Roosevelt campaign and perhaps costing him the presidency.

This visionary leader discovered an Unconventional Alternative.

At my software company, ePrize, we were running the software behind a $1 million sweepstakes for a major airline in which entries could come from one of eight countries including Brazil and Australia. After we accepted the job, we learned that the drawing had to be done on Brazilian soil by law. That was fine, until we learned that according to Australian law the drawing had to be conducted within the geographic borders of Australia. We were overwhelmed with despair and fear, realizing that this blunder may cost our company an extra $1 million (a sum that we absolutely could not afford at the time).

At the last minute, a member of our technology legal team discovered an unconventional alternative. Do the drawing at the Brazilian embassy (technically Brazilian soil) in Australia! This creative solution saved our client and our company, and it surfaced by challenging conventional wisdom and exploring options that weren’t obvious or even in the consideration set.

The next time you are faced with a decision that looks like a choice between A, B, or C…. pause for a moment and let your imagination wonder. Is there an option D, E, or F? Before locking in an obvious choice and perhaps accepting a mediocre result, challenge yourself and your team to explore the unlisted options. In today’s ultra-competitive world, the time you spend exploring the possibilities can represent the difference between winning and losing.  So, unleash your creative mind, explore the unorthodox choices, push yourself to discover the unconventional alternative, and I’ll see you at Business of Software 2011!

This is a guest blog for the Business of Software from Josh Linkner, founder & Chairman of ePrize, the largest interactive promotions agency in the world and Adjunct Professor of Applied Creativity at the University of Michigan. Josh is on a mission to make the world of business more creative and will be talking at the Business of Software about harnessing creativity to build a better software business.

Business of Software, Boston, MA, October 24-26^th –http://businessofsoftware.org– For people growing sustainable, profitable, software businesses.

One of my holiday reading books is Professor Clayton Christensen’s new book, Innovator’s DNA: Mastering the Five Skills of Disruptive Innovators Like many great thinkers, Professor Christensen has an amazing knack of making the complex understandable and ‘The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail‘ has always been inspiring, as well as being recently being voted one of the top 6 business books of all time according to the Economist.

I would have read it anyway but as he is also speaking at Business of Software this year so what was a book for interest and pleasure is also now a professional duty. 🙂 I wish all work was that simple.

Both books, and the concepts behind them, are inspirational for entrepreneurs like you. They describe why and how, when it comes to transforming or creating new markets, new entrants almost always win. (He also explains why incumbents almost always win when it comes to influencing or shaping existing markets).

“Because companies tend to innovate faster than their customers’ lives change, most organizations eventually end up producing products or services that are too good, too expensive, and too inconvenient for many customers.  By only pursuing “sustaining innovations” that perpetuate what has historically helped them succeed, companies unwittingly open the door to “disruptive innovations”.”

If you get a spare 15 minutes and want a powerful summary of the ideas, have a look at this 10 minute video from the Harvard Business Review (the Harvard Business Review doesn’t like embedded video), and this 2 minute video from Professor Christensen’s own web site.

The Business of Software conference will be held in Boston, October 24-26th October 2011.

Ilja Laurs, is the founder of GetJar, the world’s largest independent app store that has just announced it has delivered over 2,000,000,000 (2 billion) app downloads.

This gives Get Jar an almost unique insight into who downloads what, where and when. More importantly, that data can offer some pretty useful insights into the types of business models that are most successful. He spoke at the recent BLN Money in Mobile event where he talks about what he has learnt about what makes a successful app business model and how you should think about developing a business model that works for the app you develop.

Did you know for example why most advertising supported apps won’t work? Simply, more than 80% of ad supported apps are downloaded and used once. Once. That means one ad served.

If you are thinking about building a business making apps, or how to optimise your mobile strategy, this is 15 minutes well spent.

Business of Software, Boston, MA, October 24-26^th – http://businessofsoftware.org– For people growing sustainable, profitable, software businesses.