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The Kepler satellite provides a unique opportunity to study the detailed optical photometric variability of late-type stars with unprecedentedly long (several year) continuous monitoring and sensitivity to very small-scale variations. We are studying a sample of over two hundred cool (mid-A - late-K spectral type) stars using Kepler long-cadence (30 minute sampling) observations. These stars show a remarkable range of photometric variability, but in this paper we concentrate on rotational modulation due to starspots and flaring. Modulation at the 0.1% level is readily discernable. We highlight the rapid timescales of starspot evolution seen on solar-like stars with rotational periods between 2 and 7 days.