I do not think technological progress is its own purpose. Or rather, technology is only as effective as the use to which it is put. Which actually makes some new technologies look rather silly.

Whenever new technologies are released; they usually turn up either in military equipment or in video game products; ironically. But its a much more profound question to look at an emerging technology and ask- how will this actually affect my life 10 years from now?

From this perspective; having a cell phone is actually a more disruptive / effective technology than being able to surf the internet. Surfing the internet allows me to send and receive emails (instead of making phone calls, faxes, or mail) and retrieve information faster- but cell phones allow me to organize, plan, advise, execute, and remain up to date from anywhere. I am a walking business.

Why is Starbucks my new office? More owing to the cell phone than my wireless internet card.

The internet will dramatically affect education, healthcare, legal and business processes- but as of yet most of the internet is little more than a somewhat-organized library.

Remember- people spend 1 hour a day looking at ‘assorted’ photos online, and less than 5 minutes a day learning a skill online. Most people do not use the internet effectively. Perhaps investment bankers and medical researchers are ahead of the curve.

But that’s just one example. Look at new technologies emerging web interaction- Adobe Flex, OpenSocial Apps, Social Browsers- which of these innovations will my kids find indespensible and which are mere toys for the techno-junky?

My friends make fun of me for continually mentioning the social gps apps for the iphone; such as ‘Loopt’, but I sincerely believe mobile geographic networking will have a permanent affect on how I live.

My philosophy of innovation revolves around the affect a technology will have on my life; and moreso on my health, job, education, knowledge, skills, and social interaction than on my ability to play high resolution computer games. Which is ironic; since the cutting edge of technology is usually the hardware and software built for gaming. I suppose the innovators build what they know.

Who makes the best entrepreneur? It’s definitely not the basement tech guy; and it’s definitely not the academic genius. We have ideas of stanford graduate students sitting in their dorms building billion-dollar companies; secluded from the world. And obviously, sometimes the basement programmer strikes it rich. Most of the time- the entrepreneur is the extroverted salesman.

Entrepreneurship is about starting companies; and starting a company means selling a product or service. Sometimes starting a company means selling the idea to investors or employees; and sometimes it means selling the idea to customers and resellers. But the golden rule of entrepreneurship is- know how to sell. You can’t invent an idea and expect someone else to sell it for you; and there is no college degree in how to sell. In fact; some of the most effective entrepreneurs I know never went to college. They sell.

Obviously only knowing how to sell is not enough for entrepreneurship. Technical skills, project management skills, financial skills, marketing, logistics, design, branding, networking, legal advice, researching- these are all greatly beneficial. But they are also all purchasable. You can go out and buy everything- except your ability to sell.

An entrepreneur is more than a salesman; he needs an idea. The most effective entrepreneurs are idea salesmen- people who can sell vacuum cleaners door to door; but perhaps with only the idea of a vacuum cleaner. In fact, networking- financing- marketing- are just different types of sales.

Usually, selling your product helps you design your product- or at least it has helped me.

A good idea and a good team can get investment from Angel Investors, Venure Capitalists, and Banks. However- I would recommend to 99% of web entrepreneurs out there that you personally fund the first phase of your website. That means bootstrapping: or relying on your own bank account (or that of friends and family) to pay for the initial phase of your web company. Below are my reasons.

1. Most Phase 1 or Prototype sites an be built for $1k - $5k.

If that’s outside of your price range; ask people around you. Get friends and family excited; get them involved. If you can’t sell your family and friends on the idea; perhaps the idea needs rethinking.

2. Bootstrapping shows commitment

If this is your first web company; bootstrapping the first iteration of your site shows all future investors that you are competent enough in developing a product and bringing it to market. The first version does not need to be perfect; but it shows that you are committed.

3. You can start it now

I know a lot of people who waste 10 years of their lives chasing investors; and without a product to show for it. Smart bootstrapping will give you a product in less than 6 months; and you might even see revenue in the same year. Start something while you and your team are excited about it.

4. Bootstrapping builds leverage

No investor is going to give you $100k for 5% of your company if you have no product and no revenue. They might put in $10k and expect 50% of your company- since you have nothing (no product) and they have everything (the money). When you have a product, if you have revenue- you get more investment for less equity. That’s leverage.

5. Rapid Prototyping

Getting an early iteration of your product to market might just change your perspective on what you are building, and what you are selling. Get something out there. Rapid Prototyping dictates that you rapidly try new versions of your web idea- getting feedback, seeing what works. And after several months of rapid prototyping; your investors will notice the higher quality of your product.

6. Reality Check

In some situations, the only person who is going to invest in your idea is you. Whether that makes you an eccentric visionary or a hero who must prove himself by action: actually making a website will get you the proof of concept- and perhaps revenues- that you need. Ask yourelf- how long have I been thinking about this idea? How many people have offered to invest? They will be more inclined once you put your funds in first.

7. Pressure’s on

Having your own personal funds on the line puts pressure on you to generate revenue fast- and that can be a good thing. I know several entrepreneurs who received funding for their venture and then relaxed; since their necks were no longer on the line. But often it is healthy for an entrepreneur think to himself- I need to sell this, or the rent doesn’t get paid.

8. Would you invest in your own start-up?

If you had $100k, would you invest it in your idea? Sometimes the answer is no; maybe your idea is too risky or the revenues are too delayed for the entrepreneur himself. Now a risk-averse entrepreneur can build a high-risk venture with an ambitious investor- but that’s often unlikely. If you had $100k- where would you invest it?