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o90t+ oeDecember 2009/January 2010 | CONTENTS
Everybody’s
Tweeting
‘And thet includes srhart
76 86 92 businesses. It turns out that
5 Twitter, the wildly popular
Entrepreneur ‘Savini How | Did It esteetter ante
of the Year Broadway Ralph Braun used totum a profit, Here are.
Kevin Surace Books He started by building five ways to boost your bottom
IsonaRoll Astoryof blogs, books, _his own electric wheelchair, linen 140 characters or fever
Tha wandetot serious, burritos—and a son then invented the wheel- BY MAX CHAFKIN
oo hetvaisterctear who wouldn' et his Solaire
: i anes ‘mother's business die ‘and buses, then bui
cee eee anes 2200 miionompany
po Tues make bili that gives mobility to
{trom alobal warming tie slsabled
i [AS TOLD TO KASEY WEHRUM 56 Case Stud)
§Hejust might pulit oft i a
BY LEION BUCHANAN Going to the Dogs?
i 102 Maren Giannini, funder af
: 7 i 09s ome serious
i The Headache-Filled, Soul-Sapping, fae eretoeeie
i Money-Draining Five-Year Start-up new market—and his investors
i YoU Iike'to think a great dea wil ava ind its market. wanted to kaw what he
i ‘Well, Philip Walker can tell you some stories. planned to do about it.
i Jon orossuann vw
i
= sae | Kevin Surace, CEO of Serious Materials,
bison stack of hs companys
Ecofock crywal He was ahotographed
% | by austin Stephens.
DECEMBER 2009)JANUARY 2010 | INC. 320
10Editors Letter 23 How Hard -. STRATEGY
12 Inc. 50015000 Update
» Gouldit Be? neat
te Behindthe Scenes ae eey a wanton Cut costs—and help the planeta litle—with green IT
Anticoresive pan waterivel__juesene a elucan! (or 1 Sno
penis relegate to Shoes for women with aching feet: How would
Giveithe business olmainizi- 37 Balancing Acts GPRIRBRETERET brand nakeoce sea
ing a Delaware River bridge Paani icy ee
Ten rules for marital happiness
17 Launch f for entrepreneurs 122 ELEVATOR PITCH
+ iPhone apps you can't find i This company's technology tracks freighters in
oniTunes. Aretheyillegs!? Guidebook, No. 19 blazing buleings. Can it raise $750,000?
+ Recycling cell phones How to protect your business's
+ The Ticker intellectual property. Find the HAG nell
+ Jack LaLanne’s secrets GnBeeesileneana nave a Welcome tothe unconference
+A Skimmers Guide to
128 ASKING. e
Pi Sai ay 46 Innovation ‘Structuring funding from family. Plus, converting zg
‘About What Motivates Us Aratinal implant that uses FF ott 5
+ Business for Sale; An video to let the blind see Cee UUtirey tonceus ten naireresc: i
executive coaching fm Cae i
++ Blogger Loge: Erefiewon 49 The Goods :
Wheenrearisfstrtape + Topmaiebisiess ps 132 The Way | Work i
iS pee enone Former supermodel Kathy Irelend founded a little e
24 Passions “+ Online file-storage services Cartas Ee ckcprodure tor eee
Outside the kitchen, Holhwood + Fre trip planning websites TORE Romene asi eee
caterer Tonya Kay loves playing + Club flors for executives ere
with knives fre, and whips. +The best new Wi-Fi radios
29 Street Smarts 152 Legacy
By Norm Brodsky Frank Batten Sr, 1927-2009
The days of easy credit, andthe A media mogul whose
high valuations that were based breakthrough idea was the H
onit, are history. Time to face Weather Channel i
facts and move on,
4. INC. | DECEMBER 20091/ANUs> News, Ideas & Trends in Brief U N( H
Trading
old phones
for dollars
cent years, Wed businesses
with names such as Ven Juve
‘and Bazelle have sprung up,
offering consumers hard cash
for their unwanted but stil
working iPhones, BlackBerrys,
‘and digital cameras. Now
there's a new way to recycle cell
phores from San Diego-based
fecoATM. Rather than mailing in
see gear to an address found
Here Come the Rogue Apps on the Web sells lace te
Are they ready for iTunes? Mean ATMLThe machine
scars the gadget, determines
Inalong-running series of TV commer-__City California, company that makes an ee
cials for Apple's popular iPhone, a genial app (also called Qik) that lets people irre prone vores few
voice proclaims, “There's an app for just broadcast live video on the Internet using, bucks, the ATM will cough up
about anything” their cell phones. Qik’s software works on the meney—about $50 or $55
‘Well, not anything “TheiPhone would dozens of phones, including the H1 for aused iPhone or Black-
Berry—and keep the phone.
bea great marke for us says Bhaskar Touch and the BlackBerry Curve, and Dagar vetray
Roy, “but Apple won't let us do live video Qiks users include the actress Demi accept sii eal’ phoe
yet" Roy is co-founder of Qik, a Redwood Mose aul the political website Talking thanks to built-in security fea
Points Memo. But so far, Qik has been tures. These include a webcam
tunable to get the software approved for and2 fingerprint scanner to
34 million Phones ‘Sle atiTuness App Sore law anil eo ere
‘and counting Rep Sire ere ho trades a phone for cas
any counting ite That hasnt kept Qik off the iPhone, For Ts Goede plata Sal
Tipe rea ‘he past year, the company has offered its autis kiosks in shopping
a 82hilfon market for software on a rogue iPhone app store called centers around the country
"i Cydia. Like iTunes, Cydia allows people to in early 2010. ecoATM figures
: é there are one billion phones
wate buy and sell Phone apps, Unlike iTunes, worteine 312 ellen al
(Cydia is not sanctioned by Apple, which ting n people's drawers. “Just
considers the use of unauthorized down- like they bring range to
Joads, known as jailbreaking, illegal. Coinstar at the grocery store,
Even so, four million Phone owners, Se
Neto ‘mostly early adopters looking for pro weer aca
grams that arent yet available at the App Eases want Arete)
: CONTE OW THE Wet PAGE + 490 shopping.” ~Darren Dah!
TRATION BY BRYAN CHRISTIE ‘DECEMBER 209/.ANUARY 2010 | INC.) 17| LAUNCH
Rogue Apps continued
Store, have flouted Apple's
rules and jailbroken their
phones. “From a strategy
standpoint, we have to get
our product to our users,”
says Roy. “Ifwe have to do
that through the jailbroken
community, then so be it”
Apple, through a spokesper:
son, says that jailbreaking vio-
lates the iPhone's warranty
and can cause the phone “to
become unstable” It also con-
stitutes copyright infringement,
a company lawyer wrote earlier
this year ina brief filed at the
US. Copyright Office. But the
legality of jailbreaking won't be
clear unless and until Apple
decides to goto court. “The
legal questions arent settled
says Wendy Seltzer, fellow at
Harvard's Berkman Center and
an expert in Internet law and
intellectual property. “But it’
hard to sce Apple suing over
jailbreaking unless its business
model is threatened.”
The jailbreakers sce the legal
ambiguity as an opening.“‘The
jailbreak community is like an
incubator for cool ideas) says
Cydia's founder, Jay Freeman,
until recently a computer sci
cence Ph.D. student at the Uni-
versity of California, Santa
Barbara.“We're not doing any-
thing illegal” Of course, he
could be proved wrong about,
that, but for now Cydia is pull-
ing in about $6,000 a day by
selling dozens of programs you
can’tfind on ifunes. These
include PdaNet, which turns
your phone into a laptop
‘modem, and iProtect, an anti-
theft application that helps you
find a stolen phone
Most of these programs
were rejected by Apple because
they failed to meet the set of
technical requirements that are
18 ne.
CEMBER 2009/JANUAR
designed to protect Phones
from excessive crashing, (Cydia
recommends you back up your
data before installing its soft-
vware.) Apple also rejects apps
for other reasons, including
objectionable content and
trademark infringement. By
contrast, anyone can distribute
an app on Cydia
Despite the risks, selling on
Cydia can be an effective way
to market, After concluding
that its $8 app was unlikely
to get approved because of
Apple’ rules prohibiting cam-
era applications, Snapture, a
company that makes a camera-
enhancing app that goes by the
same name, opted to sell on
Cydia instead. “We had to
‘make a decision: Either put out
a mediocre product following
Apple's guidelines or do some-
thing really cool in the jaillreak
space and focus on building
cour brand,” says Samir Shah,
«co-founder of the company
Snapture quickly became a
Cydia top seller, attracting
some 500,000 users.
Little wonder that Apple
soon tweaked its developer
requirements to allow Snap.
ture and other camera apps
on its App Store, Within days
after Apple began selling
Snapture in September, it
rocketed to No, 6 on the
bestseller list. In Snapture’s
first two weeks with Apple it
sold some 85,000 copies. Not
bad for a tiny software start-
up.“Ithink Apple realizes
that the jailbreak developers
are pushing the platform to
its limits” says Shab. “They
can squash it and cause a PR
headache, or they can let the
best innovations bubble up
to the App Store.”
—Max Chafkin
2010
Former MTV and AOL mogul!
Bob Pittman has teanied
with former Jose Cuervo
executive Bertha Gonzalez
uila that s $27;
eran bottle. A tequila maker is a
parture for Pittman, an
investor Web start-ups as Thrillist and
DailyCandy, “I'm probably spending 50 percent
cof my time on it because of
fun of what we're doing and
early success w ing,” he
CIT Group, one of the
ion’s largest lenders to small
for bankruptcy
rotection shortly after
Jeffrey Peek announ
0 year’s end. In his five years as
panded CIT's subprime lending
‘a move that helpe: CIT's fall. Th
sands of ret rely on selling
unpaid customer bills to CIT are banking on
the company’s word that it will emerge fr
nkruptcy in one piece....f you werea Sil
founder in the 1990s,
ith Craig Johnson, founder o
Group. Johnson, who
boom darlings su
died at 62. He a
.gger and entrepreneur Guy
co-founded
Johnson, "Craig elp inal
is—far beyond most
lawyers.”...Rob Halford, lead
singer ‘or Judas Priest, has
parlayed his heavj-
metal success
into Metal God
Apparel
clothing com-
pany he has
launched with a
T-shirt in
Don't expect too
many pa
"Almost my