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I remember, when we first hired people in the original days, John and I would take turns hand-delivering a dozen roses to the spouse if it was woman, a bottle of cognac if the spouse was a man, and then champagne to the employee We did that for the first 18 months and then it got to be too much and we started giving it to them at work I suspect we don t do that anymore Doing things like that to make people feel like they were part of a community helped build a rapport inside the company so that our turnover rate has been among the lowest in the Valley ever since we ve been in business Particularly with people who are the top performers, our turnover rate has been not only single digit, but typically 1 or 2 percent.

Well, not all of the stuff in PMS-II, there were a few contributors along the way, but I did the primary work on it, yep Smolin: How much did it cost you in dollars, to get that, either one of those, ready Vanderpool: Well, PMS-II was a, I think, early-on product in the microcomputer revolution if you will I put $30,000 into the company to start with, and I think I spent $7,000 of it before we had positive revenue, and we had positive revenue from then on out So the real cost of it was quite incidental to the overall value of it The second product, BidFax, I would say I probably invested, not counting my time, but just actual out of house investment, probably another $20,000 into that product for the packaging, and you know, all of the legal protection, etc, to put it together.

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And that s because we ve made it an interesting and rewarding place to work So I get frustrated sometimes by people who have never run a business who are legislating things like stock option accounting and so on They don t have a clue of what it takes to run a business Livingston: Is there any other advice you would give to someone who was.

Work smart and not long, because you need to preserve all of your life, not just your work life. One of the things that I felt really good about is that we from the very first employees, including John and me enabled telecommuting from day one. So everybody had a phone line and a modem and a terminal in their house, the day they joined the company. (Now, of course, they have their own personal computers and everything). It s devious, because I suspect we got a lot more hours of work out of them. It s the same reason we give them a great lunch at a discount price.

Tip You can use the Tag property of the Model to store any object. In this example, you ll use it to store

In 1976, Ann Winblad started Open Systems, an accounting software company, with the help of $500 she borrowed from her brother. The advent of the microprocessor and the first affordable PCs created a new opportunity for programmers. Winblad was one of the first generation of entrepreneurs who figured out by trial and error what a software startup was. Six years later, she and her cofounders sold the company for over $15 million. In 1989, she cofounded Hummer Winblad Venture Partners, the first venture firm to focus exclusively on software. In the years since, 45 of its portfolio companies have been acquired or gone public. Now Winblad is probably the most powerful woman in venture capital.

But again, doesn t count my time, I m cheap [laughter] Smolin: Were either of those products copy protected Or how did you enforce deterrence against illegal copies Vanderpool: Interestingly enough, BidFax was attacked by that very thing There was a rip-off copy of it that was created It was called some twoword acronym Smolin: Was it a knock-off, or was it actually your code that they stole and made copies of Vanderpool: The core of it was my code, and then they put a different face on it and just the display part of it was changed just to make it look different And they advertised it they even copied our advertising, etc We had a lot of hassle with them They [used] negative marketing, which is something no one should ever do; their marketing message was, Don t buy that; buy this because that s bad.

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