On Twitter

Stolen from a Gtalk conversation with Teresa Wu

Twitter is the ultimate extension to human communication.

The gist of most human communication is small talk, and small talk usually just consists of variations of answers to "what we have been doing". Twitter is a platform for users to continually update their account with answers to that question, in the form of answering "what we are doing". Aggregating that conversation fluff into a common location as a blog of multiple small entries essentially takes the essence of small talk on the individual basis and broadcasts it to all the user's friends. As such, users are able to communicate with all their friends at the same time because they're taking the template of normal everyday conversation and letting everyone see it in one place.

Ultimately, this allows users to communicate with a broader range of peers and engage in more interesting conversations.

Asymmetric Information Implications on Business

I came to a realization today that is perhaps obvious to many, and that is asymmetric information is the foundation for business. Asymmetric Information is simply an imbalance of information, where one party has more information than another, and thus is capable of making a better decision. Wikipedia has a good article on it [link].

In web entrepreneurship this comes in many forms; understanding a programming language (iPhone SDK) that many people are still learning, being involved in a movement that is ahead of critical mass (social media), and understanding a niche better than most other entrepreneurs (gamers making games).

As such, I've derived four ways as to how you can leverage this concept and gain more asymmetric information which should have a direct impact on your success as an entrepreneur:

1. Learn as much as you can

The more you learn the more asymmetric information you will acquire to be used against your competitors and in building a successful business. Understanding the intricate details of a niche or industry, knowing it like the back of your hand, allows you to do anything you want. Being an entrepreneur should not be a function of luck, it should be a function of will and courage.

2. Do something you are passionate about

By having a passion for something you will inherently learn and know more about how others are driven to the niche. Right now I'm starting an iPhone gaming company, and this is what I'm extremely passionate about because I love technology, business and video games. Being passionate about my business before I discovered my niche allowed me to leverage asymmetric information that straddles existing web business models and gaming to do something really new and exciting. (More information on my company when it launches).

3. Be an early adopter

It has become increasingly clear to me that early adopters are the gate keepers of asymmetric information. They try out everything and have an acute sense of what works and doesn't. This type of personality can be developed. Spend some time everyday finding new startups and go through the process of signing up and using the service. Not only will you get a better understanding of what other people see as asymmetric information, but you can learn from their mistakes and leverage that into your existing knowledge base.

4. Talk to everyone; EVERYONE has asymmetric information

Everyone has something they are passionate about, a unique and special view on how the world works. As such you should try and talk to as many people as possible to get a better understanding of what makes them tick, how their views are different from your own, specific details in things they are passionate about. Everyone has something to teach, and people are usually open to share, you should take this opportunity as often as you can.

Next time you're at a party, don't default to your normal routine of small talk, try and dig deep into the knowledge base of the person you are talking to. It is much more stimulating and who knows, you might just learn something.