Introduction

Maps for Modern Magellans: Charts for Captains of Commerce

By Roger Anderson Ph.D.

Copyright © 2007, Modern Magellans Media

4502 Granada Drive

Yorba Linda, CA 92886

www.modernmagellans.com

All rights reserved, including the right of reproduction of any portion of this

publication or transmission in any from or means without the expressed written

permission of the author or copyright holder. Brief quotations and extracts may be

used for review or editorial purposes without written permission.

Quotations without attribution are by Roger Anderson

All brand names and Trademarks mentioned in this publication are the property of

their respective owners. All trademark names and designations were capitalized to

assist in the recognition of such. No endorsements were received for inclusion in this

work nor are any endorsements of other products or publications are to be inferred

from their inclusion in this publication.

Cover Design: Brett Anderson

Book Layout and Illustrations: Brett Anderson

Editors: Becky Clines, Liz Kylin, Lorrie Winter, & Lloyd Porter

Special corporate editions can be made available which can include a foreword

by a company executive or selected individual. Special editions for distribution to

employees or customers can also have the corporate logo on the cover.

For information regarding special corporate editions or bulk sales discounts please

contact Modern Magellans Media directly by:

E-mail: orders@modernmagellans.com

Phone: 714-779-1095

FAX: 309-418-6304

Library of Congress Cataloging-in-Publication information available upon request.

ISBN 13; 978-0-9794789-0-1 (For the full paperback book)

 Acknowledgements:
There are so many people to thank and I will undoubtedly omit
important names. Fortunately, there will be other editions and books
in this series.

I need to thank, in no particular order Alan Stanford, John Halff,

David Landsberger, Paul Seliskar, Dan Rime, and John Baldeschweiler
for mentoring through the development of my first company.
To my friends and colleagues at Anderson Unicom Group, I thank
you for your patience while an eager but inexperienced entrepreneur
learned the ropes. I am better for it and much of what I know, I know
because we all learned it together. It was not always easy but it was a
great time to ride the wave.
Over 30 people read or listened to all or parts of this book as
it developed. I thank them for their input, understanding, and
encouragement. The list of readers includes: Larry Daines, Chris
Kendig, Dane Shank, Drew Hansen, Jack Cassidy, Mark Prebe, Kevin
Weigler, Tiana Fatutalia, Ken “KC” Clement, Craig Winter, Stan Klein,
Bart Greenburg, Matt Holt, J. “Jay” Brown, Louise Dalton, Sally van
Haitsma, Ron Ralston, Steve Clark, Dan Rime, James Obermeyer,
Tersia d’Elgin, John Halff, and Alan Stanford.
A special thanks to those who read with the intent to fix the
grammar, flow, and clarity: Chris Anderson, Phyllis Helton, Ryan
Anderson, Lorrie Winter, Becky Clines, Lloyd Porter, and Liz Kylin.
An extra special thanks goes to my son Brett who took my scribbled
drawings or amateur diagrams and made them into the works of art
you see in this book and on the website.
One final thank you to my great friend Charlie Graham. He was
always there for me when I needed anything. We had many late nights
bowling and talking. He left this world much too soon for everyone
who ever met him, including me.
What Do You Need to Sail the World?

Introduction

What Do You Need to Sail the World?

1
No one told you to. You just knew you had to, to set sail, to be the
captain of your own ship. You started a business and charged out into
the open waters. Are you in shape for the demands of this voyage?
It turns out that sailing is not as easy as experienced sailors make it
look. At first, you learned what you needed to make it through the
day. Now it seems there is no time to learn, to read, or to get help
sailing the ship. There are too many demands. You have to keep on
sailing to keep making money.
The format of the Maps for Modern Magellan series will make
it easy for you to slip in a quick lesson once a day that will help
improve your business and your life. Learning each map will make
it easier to keep sailing along and improve the journey. Each of the
chapters can be read on its own. It only takes about 30 minutes to
read a chapter. Just looking at a map is enough to start improving
your journey. Every concept is a tool to ease the operation of your
ship. Every new skill improves your voyage. Every map makes it
easier to plot your course.

1
This book is a great gift for bosses, not too many words, and lots of pictures!

1
 Charts for Captains of Commerce

home and not take the risk. Magellan is better known than many
of the other explorers because he succeeded. Magellan, and others
who dared to explore the uncharted seas, changed the world forever.
Entrepreneurs do the same thing every year by providing innovative
answers to the needs of the continually changing world we live in.
People who start or run a business are like those early explorers.
Willingness to take risks is one of the reasons why a person starts
a business. Sailors know that a ship needs a good captain and that
it is unwise to sail alone. Every business needs a capable leader
and reliable employees to make the business succeed. Captains
build loyalty by teaching their crew what they need to know to
sail on their own. Likewise, successful business people improve
the skills of their staff by teaching from their experiences, failures,
and achievements.
Sailors who venture out on the open waters see the beautiful
sunsets. Mountain climbers who climb know the joy of overcoming
adversity. Business owners who work hard at improving themselves
see the biggest rewards along the journey. There is risk in every
activity and not all risk is rewarded. Having great maps and well-
crafted plans provides a better chance of positive rewards and
minimized risk.

A Sailor Must Know The Sea

Over one million new companies are started every year in the United
States. Let me repeat that: Over one million new companies are formed
in the U.S.A. every year. Every year! If one million new companies are
created each year, and the population of the United States exceeded
300 million in 2006, then one out of every 300 people in the U.S. will try
to start a new business this year. Since most of us live in communities

2
What Do You Need to Sail the World?

larger than 1,000 people, you probably know, or live near, at least three
people who will start a business very soon. One of these three people
may even be you. Unfortunately, close to 80% of these new companies
fail within the first five years of operation. Currently close to 50% of new
businesses cease in the first two years. These failures devour potential,
excitement, and enthusiasm, not to mention money. Think of all of the
invested time, resources, and emotion, which resulted in few tangible
or profitable results. Why do so many of these start-up companies
disappear? This question will be answered as you read about and learn
to recognize many of the mistakes that most people make.
According to the United States Economic Census 2002, Survey
of Business Owners (SBO)1, there are over 5.5 million business firms
with paid employees. The total number of all firms, as indicated in
the SBO data, is 22.9 million. This total includes people with part-
time businesses and people who have more than one business. Two
thirds of the business owners who responded listed their company as
their primary source of income. According to the survey, almost 25%
of business owners with employees had a high school degree or less
when they started their business. With over 5 million companies that
have paid employees in the US, and so many people running them who
have not received much formal business training, it is a safe bet that
there are many lost captains. In addition to the previous observation,
the number of businesses started every year indicates that there are
probably others trying to run a business just like yours. Therefore,
every business needs all the legitimate advantages it can have. The tools
in each of the following chapters provide some great advantages.

1
Can be viewed online or downloaded at http://www.census.gov/csd/sbo/
A more comprehensive survey than the traditional population census which only
counts “employers”

3
 Charts for Captains of Commerce

People, all too often, ignore facts they do not want to hear. This
puts business owners at risk of losing everything they have worked so
hard to create. The concepts in this book can be applied to everyone at
almost every level of a business operation. Any company will improve
if it applies these concepts. Some of the ideas may be familiar, but
everyone can still benefit from the new way they are presented.

Sailing Requires Maps and Charts

In every company there are individuals and groups that are lost.
Those wayward sailors need maps, directions, and a large amount of
help. For the purposes of this series, a map is defined as something
that shows the lay of the land and indicates various routes to take.
The maps and figures are tools and guides for business captains
that deal with the issues common to most businesses. Some of the
examples may tend towards certain market sectors, but they can
easily be extended to other business areas.
While running my first software company, I covered the walls
of the office with large flowcharts. These charts helped the team
discuss, design, and develop routines or programs. The diagrams
in the following chapters provide the same function. After gaining
a better understanding of these principles and by using the unique
maps you will be able to better explain the very important points to
others who will also benefit from them.
The maps are for those in business as well as those thinking about
starting a business. If 80% of the 1 million new companies started each
year fail in the first 5 years, then approximately 800,000 companies
are failing every year. This could well be the normal rate of attrition,
or it could be the casualties of competition. More than likely, it means
somebody is not operating as well as they should, or they never knew

4
What Do You Need to Sail the World?

how to do it right in the first place. Many basic principles have been
included in the following chapters to be certain that everyone is on the
same page and to set a foundation for any complicated material. The
observations in these chapters are supported with real-life examples
and lessons whenever possible.
The maps, diagrams, charts, and images will help you to:

• Better plot a successful, forward-looking course

• Better understand your business in a larger context

• Better recall concepts that help to grow a business

• Better manage your team and business

Using these tools, diagrams, and tables you can then navigate your way
and know what supplies you will need to succeed1. Despite what you
may have heard, and paraphrasing the father of microbiology, Louis
Pasteur, fortune favors the prepared more than the lucky. Most captains
would not think of attempting a journey without a complete set of charts,
maps, and today, a GPS (Global Positioning System) device.

A Captain Is a Teacher
The maps of each chapter are meant to be simple enough that they can
be drawn on a white board for use in meetings or training. Whether
they are drawn by hand, downloaded, or purchased2 as posters, they
give people a framework, or common reference on which to hang

1
The analogy for this book and particularly for this chapter deals more with
navigation than repair tools. Visit http://www.coastalsailing.net/Cruising/DIY/
DIYRealLife.html to take the analogy farther. Daria and Alex Blackwell have
created a wonderful site for sailors to discuss and share resources about sailing.
2
Color posters of the diagrams, and downloadable versions of the charts are available
at the website for this book – www.mapsformodernmagellans.com

5
 Charts for Captains of Commerce

concepts being presented. The symbols and pictures used in each

chapter will reinforce the key ideas.
One objective of this series is to increase business analysis and to
inspire the creation of diagrams that help owners and operators more
accurately plot their success. Most business concepts and ideas can
be diagrammed or plotted. This is particularly useful for people who
are more visual than textual in their understanding. There are many
ways to present things and the intention here is not only to convey
the concept, but to also make it memorable and useful to those who
run a business.

A Ship Needs an Anchor

An anchor in business, like that of a boat, holds it in place and keeps
it from drifting. Goals, objectives, and milestones are destinations
not anchors. A captain has to determine the condition and position
of the ship before sailing. During the inspection, and any required
repair time, a ship could drift and possibly suffer great damage
if it were not anchored in some way. Clear instructions, a simple
well-constructed mission statement, and proper training are great
examples of business anchors.
Most people reading this book do not have time to sit at
anchor pondering how they could improve their business. The
maps and techniques described in the following chapters were
crafted to be straightforward and direct. A chapter can be read
at lunch and the concept put into practice right away. Course
corrections, repairs, and training can be done immediately. Most
business owners need something they can understand and apply
now. They do not have time to read 400 page self-help books to
learn one concept. An in depth study of each map and concept is

6
What Do You Need to Sail the World?

a good idea but since there may not be time for that in the rush
of the day, set time aside for extra study or to go beyond the first
principles when you are ready.

Sailors Need Quality Ropes: candid, honest, and open discussion

Lack of honesty and integrity is like having worn and fraying
ropes; they do not hold together well under stress. It is always
very important to be honest with one’s self. Truth must be a
primary element of all discussions when applying these concepts.
In both of their coauthored books, Larry Bossidy and Ram
Charan 1 repeatedly stress honesty as one of the most important
components of building and maintaining a successful company.
Total and objective honesty is so important that the need for it
will be repeated for emphasis.
There will not be a great amount of specific situational advice
in the following chapters; rather the intent is to give a person
tools to use to better run a business, and as a bonus, life. The
concepts discussed are meant to encourage thinking of a business
as a separate entity. This entity is to be managed with intelligent
intent and deliberate design. You will also see that your life is
a business that should be managed, and not just endured. A
business is to be controlled, not controlling. Michael Gerber 2
has a great point to ponder: Most people make the mistake of
working in their business, not on their business.

1
Larry Bossidy and Ram Charan, “Execution: The Discipline of Getting Things Done”,
Crown Business, (2002) and its sequel “Confronting Reality”, Crown Business (2004)
2
Michael Gerber, “The E-Myth Revisited: Why Most Small Businesses Don’t Work
and What to Do About It”, Collins; Updated edition (1995)

7
 Charts for Captains of Commerce

Chapter Close
Giacomo Rizzolatti1 in Italy and his collaborators at UCLA in the
U.S. have demonstrated a very interesting feature of our wonderful
brains. When we see an object, see an action, hear sounds that remind
us of an action, or if we even hear that action described, nerves in our
motor cortex which Rizzolatti calls mirror neurons, fire as if they were
going through the motions of that action. When we see a baseball bat,
we swing it in our minds. One reason the maps in this book will be
so valuable is that when you see them, or their shapes, it will remind
you of the concept and the action that needs to be taken and your
mirror cortex will process it automatically!
Each chapter begins with a story that introduces the concept for
that section. Too often, business leaders are aware of important ideas
but awareness is not converted into application. The maps assist in the
application of the concepts by increasing the presence in the forefront
of the mind. Every map is an original creation. Each chapter will have
one main concept and one map. Some chapters will have additional
diagrams, charts, or images that help explain the concept. The point
of each chapter is to convey an understanding of how to use the map
in business and life. When these maps are used again it will reinforce
the point or plan that it created. Use these to determine where you
were, where you are now, and where you want to go.
All of the chapters use images, diagrams, or charts that are meant
to be clear, appealing, and understandable. Some of the diagrams or
charts may be similar to illustrations you have seen in the past. Some
maps are images or pictures intended to convey a concept of which
you should try to be continually reminded. It may take some time to
1
Jonah Lehrer, “How We Know”, Posted at seedmagazine.com July 19, 2006 12:32
AM, published in Seed magazine, September 2006

8
What Do You Need to Sail the World?

grasp the full value of some of the diagrams. With practice, you will
decide how to make them work for you. Change them, improve them,
or enlarge them. The maps have their greatest value when they work
for you personally. All of the supporting material in each chapter
is intended to help you make the best use of the maps, charts, and
diagrams to better navigate that ever-changing sea of commerce.

Am I in shape? I’m in shape. Round is a shape. -- Roy Valle

A Brief List of Requirements For Sailing:

(What they are analogous to is open for discussion on the book website)
• Map • Food

• Compass • Water

• GPS • Anchor

• Radio • Knife

• Computer • Duct Tape

• Fabric • Mirror

• Ropes • Oil

• Velcro • Wood

• Saw • Flare

• Hammer • Satellite Phone

• Screwdriver • Clothes

9
 Charts for Captains of Commerce Volume I
Chapter Map
(Table of Contents)

Introduction - What Do You Need to Sail the World? 1

Chapter 1 – Mapmaking; Not Just Cartography

11
Map 1 - The Seven Steps of Mapmaking - 14

Chapter 2 - Minding Your Own Business

27
Map 2 - The Question Dice - 29

Chapter 3 - Where Are You On the Curve? (Curves Part I)

57
Map 3 - Trajectories - 66

Chapter 4 - Which Curve To Follow? (Curves Part II)

$2,000,000

$1,500,000

83
$1,000,000

$500,000
Major Inflection Point

Map 4 - The Total Cash Curve - 104

0 6 12 18 24 30 36 42 48 54 60 66 72 78 84
$(500,000) Point of Profitability

$(1,000,000)

Revenue Cumulative Cash (Retained Earnings)

Chapter 5 - The 5-Fold Way #FTU

111
$PPM
4FSWJDF

Map 5 - The 5-Fold Way - 113

-PX
1SJDF )JHI
5FDI
4VQFSJPS

2VBMJUZ

Chapter 6 – Who Wants More?

139
Map 6 - The More Cycle - 155

Chapter 7 - Diffusion
173
Map 7 - The Lighthouse - 175

Chapter 8 - Three Steps to a Sale

195
Map 8 - The Marketing and Sales Compass - 203

Conclusion - Success 221

 Charts for Captains of Commerce Volume I

Bibliography – Selected Books cited in this publication

Anderson, Chris “The Long Tail”, Hyperion (July 2006)
Ansoff, I. Strategies for Diversification, ‘Harvard Business Review’ (September-October 1957)
Bossidy, Larry and Charan, Ram “Execution”, Crown Business, (2002)
Bossidy, Larry and Charan, Ram “Confronting Reality”, Crown Business, (2004)
Buckingham, Marcus “The One Thing You Need to Know“, Free Press, (2005)
Christensen, Clayton M. “The Innovator’s Dilemma”, HarperBusiness; May 2000
Collins, Jim and Porras, Jerry I. “Built To Last”, HarperCollins Publishers, (1994)
Collins, Jim “Good to Great”, HarperCollins Publishers, (2001)
Covey, Stephen “The 7 Habits of Highly Successful People”, Free Press, (1990)
Covey, Stephen “The 8th Habit; From Effectiveness to Greatness”, Free Press, (2005)
Covey, Merrill, & Merrill, “First Things First ”, New York: Fireside; Simon & Schuster, 1994
Diamond, Jared “Guns, Germs, and Steel”, W. W. Norton & Company (1999)
Gerber, Michael “The E-Myth Revisited”, Collins; Updated edition (1995)
Gladwell, Malcolm “The Tipping Point”, Little, Brown (2000)
Gladwell, Malcolm “Blink: The Power of Thinking Without Thinking”, Little, Brown (2005)
Glauser, Michael J. “Glorious Accidents” Deseret Book Company (1998)
Godin, Seth “Purple Cow”, Portfolio Hardcover (2003)
Grove, Andrew “Only the Paranoid Survive” Currency; (1996)
Kaplan, Robert S. & Norton, David P. “The Balanced Scorecard”, Harvard B-School Press, (1996)
Kawasaki, Guy “The Art of the Start”, Portfolio (1995)
Kotter, John P. “Leading Change”, Harvard Business School Press; (1996)
Kotter, John P. &. Cohen, Dan S “The Heart of Change”, Harvard Business School Press; (2002)
Lehrer, Jonah “How We Know”, published in Seed magazine, September 2006
Machiavelli, Nicolò “The Prince“ Written c. 1505, Translated by W. K. Marriott 1908
Maslow, A. & Lowery, R., “Toward a Psychology of Being”, New York, Wiley & Sons, 1998
Moore, G. A. “Crossing the Chasm”, Harper Business, (1991)
Moore, G. A. “Inside the Tornado”, Harper Business, (1995)
Rogers, Everett “Diffusion of Innovations“, The Free Press. New York, 1962
Siebel, Thomas M. & House, Pat “Cyber Rules” Currency; 1st edition (1999)
Stern, Jane and Michael “The Encyclopedia of Pop Culture”, Harper Perennial Press, (1992)
Schwartz, Barry “The Paradox of Choice: Why More Is Less “ Ecco (2004)
Woolf, & Johnson, PhD, “The Break-Even Point:”, Ann. Fam. Med, Nov 2005; 3: 545 - 552.
 Volume II - Chapter Map
(Table of Contents)

Introduction - Volume II

Chapter 9 – Waves, Riding the Waves - Crisis Immunity

Map 9 - The Parts of a Wave

Chapter 10 - Change
Map 10 - The Changing Forms of Water

Chapter 11 - Knowing is Half the Battle or Maybe Less

Map 11 - Knowledge Iceberg

Chapter 12 - Doing is the Other Half and Maybe More

Map 12 - The Project Curve

Chapter 13 - Why Things Don’t Happen As Expected

Map 13 - The Field of Rocks

Chapter 14 – The Bubble Diagram

Map 14 - The Bubble Diagram

Chapter 15 - Leadership Pedigree

Map 15 - Leadership Pedigree Chart

Chapter 16 - Putting the Pieces Together

Map 16 - The Business Pursuit Wheel

Conclusion - Success Part II

Watch for it in Fall 2007

 Maps for Modern Magellans

About the Author:

Roger Anderson Ph.D.

Dr. Anderson received his Ph.D. in Molecular Biology from Caltech
in 1996. After leaving Caltech, he has been on the business side of
science. He has experience in large corporations and start-ups,
twice serving as CEO. Dr. Anderson has also served as a consultant
to dozens of companies in the laboratory reagents and diagnostics
markets. Dr. Anderson concentrates on the focus of the executive
team, business transformation, industry relationship development,
fund-raising, investor management, and developing collaborations
or acquisitions.

The entrepreneurial urge hit early in his career and has never left.
During graduate school, he compared offerings from various suppliers
to find the best item at the best price for the lab he worked in. That led
to the concept of a database driven website online purchasing system
for life science products and Anderson Unicom Group (AUG). Under
his leadership, AUG grew from a concept to a full-fledged business,
competing with much larger companies.
About the Series

Maps for Modern Magellans

The Maps for Modern Magellans series is written for people who feel
frustrated after starting a business and realizing that they need help, but
believe they do not have time to read a business book to get that help. The
series is written for everyone that wants to start a business but is afraid they
may not know what to do once they get going. This series is for those people
who feel stuck in their present work situation and want to make a change.

Every chapter of this series stands on its own. Each topic is a vitally important
concept for business leaders to master. The maps, charts, and diagrams are
designed to help business owners, operators, managers, and those who want
to be leaders better grasp and communicate important business principles.

The original illustrations are memorable and easy to use. A reader can
immediately share their new insight with others and enable greater business
communication. Leadership training and management development will
be improved using this series as a key part of your process.

Maps for Modern Magellans books are written by experienced business

leaders. Each volume is a collection of diagrams and information developed
to successfully illustrate and teach business concepts. There are 25 million
businesses in the U.S.; 5.5 million with one or more employees. According
to the 2002 Survey of U.S. Business Owners, 25% had no college training
when they started.

A leader does not want to receive an Idiot’s or Dummies’ Guide. A business

owner is a ship’s captain and deserves respect. They are Modern Magellans
who need good maps and then a clear path to transform their business.

Business Transformation is the key to improving your business success.

For more information about Dr. Roger Anderson, this
book, or other products from Modern Magellans Media
please visit our website at:

www.mapsformodernmagellans.com
On the site you will find:
• Individual book chapter activity pages where you
can download tables, forms, and spreadsheets.

• Access to video and audio presentations

• Links to websites mentioned in the chapters.

• A complete bibliography and links to many of

the books mentioned in this book series.

• Areas for continued discussion and comment.

• News about future releases, book-signings, and

speaking engagements.

• How to purchase additional books, posters,

calendars, and desk ornaments.
For information about speaking engagements, books, online
learning materials or contact Modern Magellan Media at:
4502 Granada Drive
Yorba Linda, CA 92886
W: (714) 779- 1095
F: (309) 418- 6304
drrogera@modernmagellans.com