Perhaps the single most important factor in creating believable characters is to make them consistent. You want your readers to believe in your story – no matter how outlandish it might be – and to do so it can’t contradict itself. Neither can your characters. You could create a character that is at first unimaginable, but if that character behaves in a manner that is consistent with the traits you have given them and the background you have provided, then the reader will find them believable. If the character seems to deviate from this and changes arbitrarily, your reader will quickly begin to view that character as no longer believable.

Of course, this doesn’t rule out a character being able to surprise the reader. For example, let’s say you have a character in your story that is old and weak. What if you want to surprise your reader by having this character do something physically spectacular at the end of the story? In this case, you have to make sure that there is something consistent throughout the story leading up to this event. So, for example, this character might do some smaller feats (for example, despite their infirmity, they are able to adeptly catch something that is falling). While this may seem a bit odd to the reader, they will likely suspend their disbelief until the end of your novel. But before your novel is over, you need to explain how this ties together. For example, it could be revealed at the very end that this character was once a world-class juggler in the circus – something the character was embarrassed to admit earlier in the story.

Beyond that there are other elements of characters that are important. Where are your characters from and how is that reflected in their traits such as what they know, the words they use, and their perspectives on life? Setting is important as well. Where do your characters live? Not just what city or town, but where do they reside and with whom? How did they end up living there? How do they feel about it? How does all of this affect their behavior? When the central female character of Terminal Value, Heather, is first introduced, the reader learns that while this is a well-educated, brilliant woman, a reference to her childhood also intimates that she is self confident and not afraid to to fight for what she believes and stand her ground:

“Heather finished her degree with a concentration in digital media at RISD, the Rhode Island School of Design—or “Riz-dee” as it’s universally known. Her artistic skills notwithstanding, she was always intrigued by the intersection of design and technology. Heather’s astute intuition quickly recognized that mobile phones were replacing comput- ers in many still uncounted ways, and she focused on landing a job that would allow her to work on cutting-edge displays and visual apps. Her comments in board meetings were often insightful, raising issues that others had overlooked.

There are many other elements that come in to play as well. For example, age, appearance, and childhood. A character of a certain age is going to do some things, and probably not others. If an old man is playing Words With Friends on his iPhone, you probably have a believability issue. If a short, unattractive and insecure woman is described admiring herself by catching a glimpse of her reflection over a very high bar, you have a problem. On the other hand, if a man had a bad childhood marked by constant fighting between his parents and an ugly divorce and he has trouble committing to his girlfriend, then that is believable. In this excerpt from the beginning of Terminal Value, the reader understands not only the physical description of Dylan, the novel’s protagonist, but also a hint as to his upbringing and its influence on him:

Other examples might include jobs, personalities, and even names. A man who works on the assembly line in an automobile plant is going to look at the world and talk very differently than a lawyer. How they feel about virtually everything will be dependent in part on their career choices. Similarly a character’s personality has to be in line with everything else we know about them. Since most novels involve conflicts and confrontations, a character has to react consistently and accordingly. So if one of your characters is insulted, do you have them just take it, fight back, or leave and talk about it with someone else? Even names can be important. A character named Henry Lodge Wadsworth III instantly brings an image to your reader’s mind. Bubba Jones suggests a very different kind of person.

The bottom-line? Creating characters that are believable means knowing them as well as if they were a real person, and ensuring that their actions result from the intersection of all of the elements I’ve described (and more). If you describe them well and they act in a consistent fashion, then they are going to be believable. If they do anything inconsistent, then you’d better have hinted at this along the way so when you do spring it upon your reader, it makes sense.

The setting of a novel is critical, particularly for a mystery or thriller. After all, in addition to providing details that enrich the story, the setting can actually assist, or impede, an investigation. Choosing a familiar setting is usually a good idea for a mystery or a thriller because it should directly influence the characters and the plot.

When I started writing Terminal Value, I deliberately chose Boston and New York City because I have lived in both locations and I know the cities well. Sure, you can do research, look at maps, and even read guidebooks, but there is no substitution for experience. If you have lived in a city, you know its character, the local customs, and the weather. For example, in my novel, I describe a “classic Nor’easter” and not only how these storms form, but also how they feel, and what the aftermath looks and smells like. I have also spent time with people in Boston and New York, and they talk, act, and think differently. If I were to have set my novel in Little Rock, Arkansas, it almost surely would have irritated people who live there and they would have quickly discerned that I really didn’t understand them or where they live.

At a more detailed level there are sub-settings – streets, parks, offices, police stations, restaurants – that have their own vibes and traditions beyond the place where they are situated. In the case of Terminal Value, I visited all of these sub-settings (except, of course, the offices of the fictional companies, but even those were based on other companies I was familiar with). In the opening of the novel, Dylan, the protagonist, leaves his condominium in the Back Bay section of Boston, drives by the Public Garden, down a street, across a bridge, to the office of his start-up, and takes an old elevator and enters the office. I drove this route myself, and describe various sights and sounds along the way that are both authentic and “educate” the reader about the environment.

Here’s an excerpt to illustrate my point:

“Rush-hour traffic seemed unusually heavy for a cold January morning. Dylan glanced out through the frosty window at the Public Garden Lagoon. In the summer, swan boats and tourists filled the park. Now it was empty of water and people—a sure sign of a prolonged winter. He and his friend Tony had discussed the mobile computing revolution during many strolls through the garden.”

The importance of setting doesn’t end there. A good writer will develop their characters by deliberately describing elements that build both an image and understanding of the characters in the reader’s mind. Why does one character drive a certain kind of car while another drives a different car? Why does one person have a messy office and another a pristinely organized office? What is it that upsets or stresses a character – heavy traffic, noisy office mates, certain smells – and what does it tell the reader about that character?

Setting is more than just place. It is also time. In Terminal Value, there is a certain rhythm in the novel that reflects the changing seasons in Boston.  Settings in my novel include a raging winter snowstorm and an abnormally warm, foggy spring night. These are important because they can lead to a sense of gloom, tension, joy, and so forth that is important to the storyline itself. Consider this excerpt:

“At nine-thirty, Dylan stepped out onto the damp cobbles of Beacon Hill. The unusually warm spring temperatures foretold a hot summer ahead, and after a brief shower, the resulting mist wrapped eerily around the lampposts. Dylan admired the old neighborhood, with its Federalist and Greek Revival brick row houses, most of which were built between 1800 and 1850. After the turn of the century, many of the wealthy residents moved to the suburbs, and the old houses were subdivided into small apartments and, later, condominiums. Tony had moved into one of the roomier apartments shortly after their initial MobiCelus success. True to his character, his eclectic furnishings barely filled the space.”

A great novel is one that takes place in a richly detailed world that gives the story authenticity. As Stephen King famously wrote in his classic, On Writing: A Memoir of the Craft: “Description begins in the writer’s imagination, but should finish in the reader’s.”

After I sold my own firm to an Internet company, we tried (and failed) to go public—twice. That was the dot-com era, a time when so many technology firms were going public that cynical observers believed that “IPO” meant “it’s probably over-priced”—and for good reason. Remember Webvan and Pets.com? Yet there is no denying that plenty of dot-com millionaires are now relaxing on their yachts.

Fast-forward to when—pardon the pun—the market was all atwitter over Facebook’s IPO. Yet after setting its price at $38 a share, all the hype in the world quickly dissolved as Facebook closed its first day of trading at $38.23 a share—essentially the same as its offering price. That’s not to say that Facebook’s offering wasn’t impressive. After all, it still is the largest technology IPO in history, raising some $16 billion. And it may do well in the long run, though many are questioning its ability to grow at the phenomenal rates that are already factored into its current valuation.

Other technology companies planning to go public would be wise to be careful. This isn’t the “dot-con” era of the late 1990s where even the silliest idea could garner huge amounts of money. Today’s more mature companies have real financials and metrics that can be evaluated, rather than just a lot of hype about how many “eyeballs” a website is getting. Add to that the fact that the global economic collapse of 2008 destroyed much of the wealth among retail investors, while the global economy continues to be on the rocks. . . . Well, let’s just say investors are likely to heed the rock band The Who’s memorable anthem, “We won’t get fooled again!”

Indeed, technology IPOs in 2011 were largely a bust. Sure, LinkedIn (the business-related social networking site) ended the year up 42 percent since its IPO, and Groupon ended up 14 percent. But Yandex (the “Google” of Russia) ended down 20 percent; Nexon (the Japanese maker of video games for Facebook) ended down 11 percent; Renren (the “Facebook” of China) ended down 76 percent; and Tudou (the “YouTube” of China) was down 62 percent. Even Zynga (the social network game company and creator of FarmVille) went public on December 16, 2011, and promptly lost 5 percent. It’s pretty much been treading water ever since.

So, if you’re planning on taking your technology company public, how should you proceed? Obviously it starts with having a sound business with a solid and consistent financial track record. But other things are just as critical. One is your road show. To be successful, you need to have a cogent investor value proposition—namely, one that clearly answers the question: Why should an investor buy and hold your stock? This entails stating whom you have chosen as your strategic investor base, what unmatched opportunity you offer to them, and how you will deliver significant returns.

Beyond that, you need to set your company apart and gain the confidence of the investor community. Here are six specific ideas to consider:

First, build credibility through your lead customers by promoting your relationships with them. If an Intel or Cisco or Apple views what you offer as very appealing, make that crystal clear.

Second, turn any possible “negatives” into “positives.” Many people don’t realize that, when Starbucks went public, there was a nationwide recession, and Americans were actually drinking less coffee. Starbucks successfully argued that, while this was true, data showed that people were actually drinking better coffee, and the company was uniquely positioned to capture this growing segment.

Third, demonstrate that you have a breakthrough business model. Investors want to see a business model that drives superior customer value and is fundamentally different from everyone else. eBay is a perfect example. In essence, it offered the first online “garage sale” and tapped into an enormous—and largely unseen—market.

Fourth, clearly show the upside market potential. Investors are looking for major returns, and you need to be explicit about why they should expect this. DoubleClick, the global provider of online advertising, successfully tied its own success to the growth of the Internet. Not only did it survive the burst of the dot-com bubble, but Google acquired it in 2008 for a whopping $3.1 billion!

Fifth, promote the fact that you have a balanced leadership team. Since a strategy is only as good as its execution, a management team that has both vision and operational leadership inspires confidence in potential investors. That’s why you’ll see that many technology companies combine youthful, visionary innovators with seasoned executives who have solid operational experience.

And sixth, demonstrate your ability to grow and achieve scale. One way a smaller company can do this is by creating strategic partnerships with large, reputable corporations and leveraging the strength of their established brands. For example, Jive Software has strategic arrangements with such well-known corporations as Infosys, CSC, and Akamai.

The bottom-line? Good start-ups combined with good positioning and marketing can overcome the toughest market conditions.

“Write what you know” is perhaps the most quoted saying about writing. Though it is likely apocryphal, it is most often attributed to Mark Twain. P.J. O’Rourke, on the other hand, has said that any creative writing teacher who utters these words should be “confined to a labor camp.”

No matter. When I started forming the plot for Terminal Value, I confess that I did start by writing what I knew—specifically, what it was like to be an entrepreneur who decided to take a gamble and start a company. Make no mistake: MobiCelus bears no resemblance to my firm, and Dylan is not me! However, the experience of taking the plunge of starting an enterprise, and then making the difficult decision of whether or not to sell it, is definitely familiar territory.

I’m often asked for advice from would-be entrepreneurs who seem to think that I know what the magic sauce is that will ensure success. I don’t. No one does. Indeed, data from the U.S. Small Business Administration show that, regardless of the year when they are founded, the majority of start-ups go out of business within five years, and two-thirds are no longer operating after 10 years.

What are the keys to launching a successful start-up? While there are many experts out there who have published thousands of books and articles on this subject, most seem to have differing views (though pretty much everyone will tell you it all begins with a great business plan). By all means, read up. But, based own my own experience, here are seven things to consider:

First, have a very clear vision of exactly what your business will be. One way to do this is to create a unique customer value proposition—basically, a statement that defines your business from the customer perspective. It clearly and concisely identifies your most desirable customers, defining what unique and attractive value you can deliver and how it is that only you are able to deliver it.

Second, make sure you are well financed. How much you need depends on what kind of business you are going to launch. Some require a lot of money, and you may need to seek financing or be backed by venture capitalists. (Warning: taking money from venture capitalists means you are ceding some degree of control of your enterprise to others, which may come back to haunt you!) Others require far less capital. I funded my business myself by not taking any income for the first year. Of course, not everyone can do that.

Third, be dogged about lining up your customers—preferably before you even get into business. Talk to prospects, tell them what you plan to do, gauge their interest, and if possible see if you can get a commitment. This is critical—I’ve met too many entrepreneurs who spend endless hours fiddling with what their logo should look like when they should be taking potential customers to dinner!

Fourth, assemble the very best people you can possibly find. There is an old adage that “A” players attract “A” players, and “B” players attract “C” players. Don’t just hire people for the skills you need; hire people who are so good they scare you. If you think that they could someday take your job, you’re definitely on the right track.

Fifth, run your business very lean. No need for fancy offices, furnishings, or employee perks when you are getting started. What money you do have you’ll want to focus on two simple things: marketing and selling as efficiently as possible, and delivering value that far exceeds your customers’ expectations. Quickly building a strong reputation is everything.

Sixth, stay adaptable. Markets change, innovation is a constant, and your business can easily be demolished by a disruptive technology that makes what you offer no longer relevant. Pay attention to what is going on that could blindside you, not only in your part of the business world but in others.

What is the seventh key to success? Guts. I can’t tell you how many incredibly brilliant people I have met in my life who talk endlessly about starting a business—but never do. Yet there are plenty of successful entrepreneurs who didn’t get a fancy MBA from Harvard. They just did it. What’s the worst thing that can happen? Simple. After a year or two, if it doesn’t work out, you just go get a regular job like everybody else.

When I was younger—long before Tyco, Enron and WorldCom—one of the first corporate scandals I remember reading about was Cendant, a $3.2 billion accounting fraud that hit the headlines in 1998. In the early 1990s Henry Silverman, a business executive and private equity investor, created Hospitality Franchise Systems (HFS) as a vehicle to acquire a number of hotel franchises. Among his purchases were such brands as Ramada, Howard Johnson, and Days Inn. Silverman quickly took Hospitality Franchise Systems public in 1992 at a price of $4 per share. The stock was trading at $77 per share in 1998 when Silverman orchestrated a $14 billion merger with CUC International, a direct-marketing company that operated Shoppers Advantage and Travelers Advantage. The combined companies were rebranded as Cendant. Silverman became chairman, and the day-to-day operations of Cendant were run by CUC’s founder and CEO, Walter Forbes.

Bad move. It turned out that CUC had been committing massive fraud for years. Investigators found that over $500 million in nonexistent company income had been reported during 1996 and 1997. Membership sales revenue had been over-reported and membership-cancellation information held back, allowing for the company’s earnings to be manipulated at will. With too much debt and too little real income, however, the real resources of the company were dwindling, despite the considerably increased value of their stock. As the imaginary books and the real company finances diverged, things grew desperate. Even the cooked books were insufficient to cover all the company’s losses, so they turned to mergers and acquisitions to conceal the truth. Purchased companies’ assets were similarly manipulated to either boost operating income or write off losses.

At the center of the scandal was CUC’s Vice Chairman, E. Kirk Shelton, who had inflated the company’s revenue by $500 million over a period of three years. When the fraud became public, the market value of the company tumbled by approximately $14 billion. At the time, this fiasco was the largest case of accounting fraud in the country’s history. Shelton was convicted in January 2005 of 12 counts of fraud and related charges and sentenced to 10 years in prison. As for Walter Forbes, three times was definitely not the charm for him. While the jury couldn’t reach a verdict after the first trial, and a hung jury deadlocked the second, at the third trial he was finally convicted and sentenced to 12 years.

Cendant/CUC was ordered to pay more than $2.85 billion in class action settlements to shareholders, and, in addition to their prison terms, both Shelton and Forbes were on the hook to pay Cendant $3.275 billion in restitution. Sadly, Cendant will never receive the full amount. The payment schedule ordered by the judge was a mere $2,000 per month—meaning it would take more than 134,000 years to pay it off!

One day, while I was trying to think up a really cool technology breakthrough for the character of Tony Caruso in my novel, I happened to see a wireless charging mat for the iPhone. That gave me the idea: What if someone invented completely wireless electricity? At the time I figured it was a unique idea. I was wrong.

Nikola Tesla was an eccentric Serbian-American inventor best known for developing the modern alternating current (AC) electrical supply system. More than a century ago, he built magnetic coils that transmitted power without cables. But there was a problem: Tesla’s coils also tended to expel bursts of superhot plasma—not a good thing! While his life inspired numerous characters in books, films, and comics, in real life poor Nikola was ostracized as a “mad scientist” by many. He died alone and nearly broke in Room 3327 of the New Yorker Hotel.

But the idea of wireless electricity isn’t science fiction. In June 2009, researchers at the Massachusetts Institute of Technology announced that they had developed their own coil-based breakthrough in wireless electricity that was plasma-free. Dubbed WiTricity, it capitalizes on a phenomenon known as magnetically coupled resonance, which allows two devices resonating at the same frequency to exchange energy efficiently. In fact, they were able to wirelessly power a sixty-watt lightbulb over a distance of seven feet, transmitting at 10 MHz (most cell phones, by the way, operate at 2 GHz). Because it transmits at a very low frequency, WiTricity’s magnetic field passes right through objects and doesn’t appear to pose a threat to people or other living creatures.

Today WiTricity Corporation (witricity.com) is a company that designs, develops, manufactures, and markets technology for wireless energy transfer, utilizing magnetism to transfer energy in a way that is safe and efficient, and that works over distance. WiTricity has entered into partnerships with companies like Mitsubishi Motors, to develop wireless charging systems for electric vehicles, and Media Tek, to enable mobile devices to be totally wireless with no need for charging cords. While still in its infancy, wireless electricity is likely to become a reality in the not-too-distant future.