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Philip Schlein asks entrepreneurs a lot of questions without always expecting answers. What he's after is a process: if entrepreneurs can be encouraged to ask themselves certain questions, and others that arise in the process of inquiry, they may arrive at a better understanding of their customer and business opportunity. "I don't have all the answers," says Phil. "But basic questions such as 'Who is your customer? What are their expectations?' can help entrepreneurs see the opportunities and pitfalls of their current strategy." Phil has been advising entrepreneurs since he joined USVP in 1985. As President and CEO of Macy's California for 11 years, he has focused his investments in the retail sector from pure retailing plays to the consumer Internet. For example, he guided USVP's investments in PetsMart and Fresh Choice. Phil serves on the boards of Auction Drop, Catalist, Sound ID, and Specialtys . "Personalization and customization are two powerful forces driving retailing," notes Phil. Technology makes it possible and customers increasingly expect it. "The Internet makes possible an unprecedented degree of customer profiling, but knowing your customers is not new," notes Phil. "What's interesting is how that customer information is driving products, services and brand; in essence, the company's identity." Venture capital gives Phil the opportunity to join entrepreneurs in creating products and services that fill a consumer need, but it's an approach he's used throughout his career. "When I was at Macy's, I considered myself an in-house venture capitalist, with the buyers as the entrepreneurs. We had to ask ourselves, "How can we serve the customer in new ways?' Specialty stores were offering a more individualized experience, so we changed our strategy to seeing ourselves as a group of specialty stores." Phil is currently most interested in businesses that focus on supply-chain management in the retail sector. There are more strides to be made in inventory replenishment, logistics and distribution, he notes. Mobile applications and RFID, especially in warehouse and inventory management, present opportunities worth considering. Phil also follows the alternative medicine market. "The automation of retail is on the horizon. In the coming years, what we think of as vending machines will become a source of all kinds of high-value products from DVDs to iPods and digital cameras." Phil is a guest lecturer in graduate classrooms at Stanford and Santa Clara University. He has two children, four grandchildren, and a 300-year old elder he looks up to: Emily, a magnificent oak in the center of his Napa Valley property. He has a vineyard where he grows mostly Cabernets. Phil is on the boards of the California College of Art, the San Francisco Botanical Gardens and the diRosa Preserve, a project in the Napa Valley that is seeking to create a public museum to show Rene diRosa's private collection of California artists. | 