Lessons I Learned Today 6/26/09 – Entrepreneurship; Chicks with Credit Cards

This is a digest and recap of highlights, quotes, and comments from articles and discussions posted on this date on the Applied Entrepreneurship, LinkedIn group site.

 

*Family Business & Diversity: How 6th Generation Owners Continue the Legacy by Mark Obermeyer

“Simon Huber came to Starlight, Indiana in 1843 and settled the tract of land where Huber’s Orchard, Winery, & Vineyards stands today. Carl Huber was the 4th generation and brought up the 5th generation of seven children in the hard labor of harvesting all of the fruits and vegetables raised on the farm. Carl Huber passed away in 1966, causing the 5th generation to continue managing the business along with their mother Marcella. As in many family businesses, the next generation had “other ideas” to make money. This was the start of the “pick your own” product.”

“Ted and Greg Huber of the 6th generation, who worked in the business their entire lives, began working full-time in the mid to late ‘80s and worked with the 5th generation for 10 years, side by side. Ted and Greg were then appointed co-owners of the business in 1991.”

“Ted and Greg understood that diversifying makes sense if the plan matches your business model. The thought of becoming a distillery also seemed to fit well in the business model. They did a tremendous amount of research and traveled around the country. They found that one of the advantages they have is that they control the manner in which fruit is grown and harvested. They found that they were the first ones to pursue a distillery and winery license in Indiana.”

Dana Huber said “A hurdle is to always keep our eye on quality and never let our business plan stray us from our goal of ‘outstanding customer service and high quality products.’ Sometimes diversity can also be our challenge or hurdle, many things to do and manage. A hurdle would be to diversify our business in ways that only match our business plan.”

  

*What You Need to Grow Your Business: An Interview with Jazzercise Founder Judi Sheppard Missett by Merrin Muxlow

“What do you need to start a successful business?”

“It’s a question almost all entrepreneurs have pondered. Do you need a business plan before you start, funding to fall back on, or a detailed strategy for how your company will grow? Nearly half of all small businesses fail within the first year of operation- what’s the difference between those that fail and those that succeed?”

Judi Sheppard Missett built Jazzercise from a one-woman operation into an international corporation with over 7500 franchises worldwide. “I didn’t even get a business loan,” she told me- something virtually unheard of in many entrepreneurial circles.

“Too many business owners come up with an idea and try to find a market. Missett proves that the other way around is usually more successful- listen to what customers want, and figure out a way to give it to them. Do research on customer patterns, find a way to track behavior by hiring an online marketing company or tracking marketing campaigns and sales strategically.”

“Be willing to adapt and change to customer needs.”

“Planning and development aren’t just for startups. If your customer base is growing or changing, you need to grow and change, too.”

“Don’t wait to be in the right place at the right time- evaluate the resources you already have, and try to create opportunities for yourself.” As Judi Sheppard Missett says, “We are all in the right place at the right time, we just need to be aware of it.”

 

*Simple Strategies to Viral Marketing Online by Michelle Ulrich

Nice outline of strategies and some links.

 

*Young Guns: A Video Startup That Helps Others Prosper by Chrisitna Scotti

“Peter Chatmon, a 32-year-old filmmaker and founder of Double7 Film, thinks you do. Almost by chance, he stumbled on a niche business: creating short commercials for small companies–a trendy new take on the generic corporate video that his clients can then spread virally on the web.”

Q         “What one life lesson did you learn that helped you build your business?”

A         “Do unto others. It’s the simplest of principles that serves as the strongest foundation for any good relationship. We’re helping to build companies, but companies are made up of people, and people deserve respect. Respect feeds creativity as well as output and performance.”

Q         What do you wish you had more of: time or money?

A         Time. Money comes and goes but you can always get it back if you have good ideas, persistence, and offer something of value to someone other than yourself. You can’t get back time, and there is more value and reward by spending your time wisely than you could ever receive by spending your money wisely. Sleeping four hours a night is a clear sign that I need more time to do this thing I love so much!

Q         What is the one word your employees would use to describe you?

A         “Determined. In my opinion, no problem is too complex to be solved if I apply a continuous stream of creativity toward its resolution.”

 

*Store brands gaining in popularity

“The recession has been a boon to stores selling their own brands. A new survey found 91 percent of shoppers who switched to store-brand products from name brands will keep buying the store brand, even after the recession ends.”

“Quality is a big factor, and a poll found nine out of 10 shoppers said the store-brand products are just as good, or better, than name-brand products.”

 

*SBA alters loan refinance terms by David Bertola

“Small businesses looking to expand are now able to refinance existing loans to buy real estate and other fixed assets as a result of permanent changes to the U.S. Small Business Administration’s 504 Certified Development Company loan program.”

“The legislation allows 504 program projects to include a limited amount of debt refinancing if there is a business expansion and the debt refinanced does not exceed 50 percent of the projected expansion cost. The following are some conditions under which borrowers will be eligible for refinancing:”

• The debt being refinanced was incurred to acquire land, to construct a building or to purchase equipment. The assets acquired must be eligible for financing under the 504 program.

• The existing debt is collateralized by fixed assets.

• The existing debt was incurred for the benefit of the small business.

• The new financing provides a substantial benefit to the borrower when prepayment penalties, financing fees, and other financing costs are taken into account.

• The borrower has been current on all payments of existing debt for one year prior to the date of refinancing.

“The permanent changes allow small businesses to restructure eligible debt to help improve their cash flow which, in turn, will enhance their viability and support growth and job creation. The 504 loan program can be used to purchase business real estate or fixed assets, such as heavy equipment or machinery, and expand current development projects.”

“Additionally, on June 15, SBA’s American Recovery Capital loans became available for small businesses facing immediate financial hardship.”

 

*BlogHer blogging network has big plans for $7M venture infusion by Mary Duan

“Lisa Stone, Elisa Camahort Page and Jory Des Jardins were three self-described “chicks with credit cards” who set out to answer the question posed by a Washington Monthly writer: Where are all the women bloggers?”

“Stone, the first Internet journalist awarded a Neiman fellowship by Harvard University; Page, a marketing executive and business blogger; and Des Jardins, a writer and media strategist, knew the women were out there. So the “chicks” used their credit cards to rent out some space at the TechMart in Santa Clara and formed BlogHer LLC with the idea of holding a conference for women bloggers.”

“What started as a single conference with 300 attendees has become a series that routinely sells out, a network of 2,500 bloggers.”

The company now has 30 employees and has raised $15.5 million, including a Series C round of $7 million.

“We bootstrapped and then we had two painful years. We had major sponsors who said we love you, but we need you to be bigger,” Stone said. “We needed to become a nice little conference or we needed to grow.”

“They’ve been able to grow through the fundamental understanding of a few basic facts: women control 83 percent of household dollars, and thanks to the economy, they’re now thinking more about how and where to spend that money, the company says.”

“BlogHer reaches 15 million women a month, Stone said. For its network, the company takes 10 percent off the top from an advertiser, and splits the remaining 90 percent with bloggers who feature a company’s ads.”

“What we have always tried to do is put the user first. We designed BlogHer around what she wanted to do and gave her a way to take it to market,” Stone said. “We have an understanding of what the female consumer wants and developed a way for marketers to work with her.”

BlogHer fills a hole in the ecosystem and is “laser focused” on its customers.

 

What I Think

I think it is pretty cool that three self-described “chicks with credit cards” have been able to find a “hole in the ecosystem,” use their credit cards to start a business which reaches over 15 million women, and have now raised over 15 million dollars, all in under five years. These entrepreneurs were certainly not rookies, but their story is impressive. Their fundamental understanding of the market they went after, and their “laser focus” on their customers, is apparently about to pay huge dividends.

Jazzercise founder, Judi Sheppard Missett, was also able to start her franchise on a shoestring and without need for a business loan. Like “the three chicks,” she had that “lightbulb” moment and adjusted her business to give her customers what they wanted. Rather than coming up with an idea and then trying to sell it to customers, she and the three chicks found out what their respective customers wanted and figured out a way to give it to them.

It can obviously cut down on development time and the need for start-up cash if you simply target the population you want to serve, listen to the customers within that segment to see what they want or need, and then develop the simplest and most effective way to give it to them. In both cases, the entrepreneurs could be considered to have been at the right place at the right time. As Missett says, however, “We are all in the right place at the right time, we just need to be aware of it.”

Creating a customer-driven business also reduces the time between startup and realization of return on investment. As Peter Chatmon says in Chrisitna Scotti’s Young Guns article, “Money comes and goes but you can always get it back if you have good ideas, persistence, and offer something of value to someone other than yourself. You can’t get back time, and there is more value and reward by spending your time wisely than you could ever receive by spending your money wisely.”

 

If you enjoyed my impression of these articles, why don’t you read them for yourself and see what you and I missed or hit? Join the Applied Entrepreneurship group on LinkedIn. Membership is free and I try to post about ten articles a day there. We have some great discussions going and if you are an entrepreneur, we hope you will join us.

Lessons I Learned Today 5/25/09 – If Pavlov was an executive coach…

This is a digest and recap of highlights, quotes, and comments from articles and discussions posted on this date on the Applied Entrepreneurship, LinkedIn group site.

 

*The Key To Keeping A Family Business Alive by Steven Berglas

“Scads of studies indicate that family-owned companies (which account, by some estimates, for 50% to 70% of global GDP) have a competitive edge over the rest. But those bonds can unravel at a frightening pace too–and plenty of families don’t see it coming.”

The article recounts the efforts of Dr. Steven Berglas, coaching a business run by two brothers and a “Machiavellian” operations manager. The brothers worked well together when facing a common threat to their business, but childhood “ghosts” and friction returned when they opened another location.

Dr. Berglas spent 25 years on the faculty of Harvard Medical School’s Department of Psychiatry and now coaches entrepreneurs, executives and other high-achievers. He got the brothers to end each work week with a “decompression meeting,” where they hash out any raw feelings. The rule of thumb for these sessions is that no issue is too trivial, and no one leaves the meeting harboring a grudge.

 

*If You Want To Raise Cash, Get Brash by Brett Nelson

Raising money is difficult and distracting, and most small businesses fail because they run out of cash. Raising additional funds in smaller chunks at higher “implied” valuations might let you keep more equity along the way; then again, if you cut it too close, you could end up begging for money at far less favorable terms.

Brash chose to cut out financing risk and focus instead on execution. Its niche: videogames based on other media properties such as movies, television shows and music. Brash Entertainment, the 4-month-old brainchild of Mitch Davis and Nicholas Longano–co-founders of gaming company Massive, which was later bought by Microsoft, scared up a whopping $400 million from a group of private equity firms led by ABRY Partners, which invests in media and communications companies.

“Having an interesting business model isn’t enough when looking for money. You also need to show some proof that it will work. In Brash’s case, the company first had to land a few licensing deals. It had to prove it could strike deals with talented programmers, and it had to assemble a capable team.”

There was still another step in the financing process. Before investors write checks, they like to know how their money will be spent. “We had a detailed plan of attack,” says Longano.

Bottom line: Money in hand today is better than a dream dashed tomorrow. So when it comes to raising early-stage financing, get brash.

 

*How To Get Uncle Sam To Fund Your Start-Up by Maureen Farrell

“In 2006, Matt Silver, an engineering student in the Ph.D. program at the Massachusetts Institute of Technology, dreamed up a new method for converting organic waste into power. All he needed was some capital to prove the concept.”

“Our strategy is to maximize the extent [to which] we can get public funding before going to private investment,” says Silver, 29. “The more that we can prove our technology before going to venture capitalists, [the better position we'll be in, with respect to] how much of the company we’ll be giving up for the funding.”

The article outlines the process of obtaining SBIR and SBTT grants.

A final warning about the great grant chase: “This money can be very seductive,” says Fleming. “You get to work with really smart people and they pay your bills, but that sometimes distracts you from [building] a stand-alone company.”

 

*How We Started a Liquor Brand edited by Stacy Perman

Six years ago, Courtney, 29, and his brother, Carter, 28, then both Goldman Sachs (GS) investment bankers, took a surfing trip to Brazil. While there, the Chicago natives drank smoothies made with the açaí berry, known locally as “purple gold” because of its health properties. Four years later, Reum, who was working in Goldman’s consumer-products division, decided it was time to stop observing businesses from the outside and start his own liquor company.

Reum launched VeeV, an açaí-infused wheat based grain alcohol liquor, positioning it as an alternative to vodka. It was initially sold in high-end bars and clubs in Los Angeles.

While at Goldman Sachs, “I met people who didn’t seem that much older than I was who had good ideas and had just decided to take the leap. I decided if they can do it—I don’t know if I can—but I’m sure going to give it a try. “

“Having worked on one large alcohol merger in the spring of 2005 between Allied Domecq (ALYZF.PK) and Pernod Ricard, I was really struck by the lack of innovation in the alcohol space. When you really get down to it, there aren’t many industries that have evolved less in the last 100 years than alcohol.”

We began the business the way every business book tells you not to: by using a tagline, essentially ‘back-solving’ our way into creating a product. We came up with the line: “A Better Way to Drink” because that was the goal, both in terms of the product and the company as a whole. We wanted to produce a beverage that had an interesting taste and was better quality than existing alternatives.

“I put up the initial $250,000 in seed capital to get the first bottle on the shelf. I was confident I had a good idea and plenty of business experience. But I soon found that my time at Goldman was little help when it came to starting a brand from scratch.”

There were plenty more ups and downs. We learned that it’s tough to be first to market with something unique.

“My biggest takeaway from all this: Don’t try to do everything at once. It’s admirable but often not feasible. After initially being overwhelmed by everything we wanted to be as a brand, we took a step back and realized that you don’t have to be everything from Day One. Consumers tend to give you credit for “progress” as long as your efforts are genuine. So will investors—we’ve now raised a total of more than $5 million from angels.”

 

*Turning a Failing Restaurant Around

After a 10-year run operating the Michelin-starred, critically acclaimed New York City restaurant Etats-Unis with his father, Jonathan Rapp, 41, moved to the small village of Chester (Conn.) seven years ago to strike out on his own.

River Tavern is a 55-seat restaurant serving a menu that changes daily, sourced with local ingredients. From the outset, Rapp hoped to create a neighborhood spot that was good enough to draw customers from across the whole state.

Two years later, with business shrinking the restaurant was essentially bankrupt, kept alive for the moment with loans from friends and family. “It was time to take a hard, unforgiving look at my assumptions, my approach, and our execution.”

“I realized that I had had the equation backwards. I was making decisions based on what I wanted. I hadn’t been willing to make the compromises (as I saw it) sometimes necessary to create a broad coalition of customers—something absolutely crucial in a town with fewer people than the number that walked by Etats-Unis in a day.” The fact was, we weren’t connecting with our customers.

“While our fundamentals remained unchanged, I redirected much of the focus, work, and imagination that I had given to cooking to the task of growing a truly successful, sustainable business—one based on a real concern and strategy for making our customers happy.”

Once various changes were implemented, “we started thinking about how to extend our reach and capture new customers for the future. We began publishing a seasonal calendar of special events: monthly wine lunches, town-wide holiday events, and art openings with local artists. Our collaborations with local artists, restaurants, and businesses draws on and reinforces our image as a member of an unique, thriving village. Our customers love the sense that we are working creatively together to make Chester vibrant.”

“While you can’t be all things to all people, you can be a lot of things to many.”

 

 *Custom-Building a Life

Jeff Weinstein’s burger joint has taken off, but he has struggled to balance life and the job. Then he hit on a work-in-progress solution. Weinstein, 32, opened an inexpensive build-your-own hamburger eatery in 2003. The company earned $3.5 million in 2007 and estimates it will bring in $9 million in 2008.

“When I first started The Counter, I was going to own a small neighborhood restaurant that served burgers. It was going to be a place where I could have dinner with my wife, earn a nice income, and please people with great food at a fair price. That was my plan.”

I now have seven of those little restaurants open, five more under construction, and over 125 committed to open in the coming years.

“At the restaurant, we custom-build burgers. I realized that if we can do that successfully, I should be able to custom-build my life. There should be no boundaries or restrictions on when or how I get things done. I figured out that my work life doesn’t just happen from 9 am to 5 pm, and my personal life doesn’t happen in the remaining time. The reality is that they both happen 24 hours a day. Traditional work-life balance doesn’t work for me. The trick is being fluid.”

 

*Dogfish Head: Brewing Up Relationships

In 1995, Sam Calagione, 38, opened Delaware’s first brew pub, Dogfish Head Brewings & Eats, in Rehoboth Beach. The plan was to introduce a public house with original beer, food, and music to the town. Dogfish Head Craft Brewery fashioned itself as the flavorful indie alternative to the beer conglomerates and expanded its offerings beyond beer to include spirits (rum, vodka, gin, and tequila), T-shirts, music, and licensed alehouses in Gaithersburg, Md., and Falls Church, Va.

In 2006, Dogfish earned $14.4 million, and the company estimates it will bring in $18.5 million in 2007. “When I opened Dogfish Head Craft Brewery in 1995, we were the smallest commercial brewery in the country out of over 1,200 breweries. Today we are among the fastest-growing breweries in America.” Since day one, our motto has been “off-centered ales for off-centered people.”

“Our strategy was to focus on expanding our brewery using highly skilled, similarly ‘off-centered’ people to become co-workers and fellow beer evangelists. Now they travel to events throughout the country convincing people to try our beer.”

“We take full advantage of the opportunity to talk with the folks who care enough to join us on our commercial and artistic journey. Big companies have to talk to everyone with one booming voice. Small companies have the advantage of customizing our marketing to talk with the people who want to trade up to the small.”

 

*Sammy Hagar’s Tequila Supergroup

In 1992, Sammy Hagar opened his Cabo Wabo Cantina in Cabo San Lucas, Mexico, and four years later launched his own brand of premium tequila, also called Cabo Wabo. Hagar, 59, is a Rock ‘n’ Roll Hall of Fame inductee and former front man of rock bands Van Halen and Montrose.

Cabo Wabo Enterprises, based in Novato, Calif., earned about $60 million in sales in 2007. In May, 2007, Hagar announced a deal to sell an 80% stake in Cabo Wabo Enterprises to Campari/Skyy for $80 million.

“My original vision for this company started out with the Cabo Wabo Cantina in Cabo San Lucas, Mexico. I wanted to build a little tequila bar, where I could go and play acoustically with my friends, hang out, and, of course, drink tequila. And to have a great tequila bar, I needed a great tequila.”

“My first intention was just to have this little tequila brand for my friends at the cantina and then bring it to America. I thought it’d be awesome if we did 10,000 cases a year. Our first year, we sold 37,000 cases. Then it exploded and it really started getting away from me, because I’m not a good day-to-day business guy. You know, my feet are in the sand day to day. Cell phones on the beach—I don’t like it. I feel like an idiot. People look at me funny. I get one white ear out of it, you know what I mean?”

“Long story short: I realized how important it was for it to be a global brand and not just a little thing in my backyard or just in America. If it’s the best tequila in the world, then why isn’t it worldwide? The fact of the matter is that the brand outgrew my ability to take it to the next level. So, when Campari/Skyy Spirits approached me late last year with an offer to go global, I agreed.”

“I have turned down many big groups of investors that have offered me a lot of money. So if you say, well it’s about the money, bull crap. The money part of it is just a fringe benefit—it was about finding the right partner and that’s what I’m excited about.”

 

*Making the Most of a Second Act

Doug Ducey, 44, made his name in ice cream. As the CEO of Cold Stone Creamery (KAHL), he helped its founder, Don Sutherland, expand the brand from a single shop in Arizona to more than 1,400 stores worldwide, with annual sales of nearly $500 million. In May, 2007, Ducey and Sutherland merged the outfit with Kahala, a privately held franchising powerhouse, in a multimillion-dollar deal. Not long after the deal, however, Ducey left the newly combined company.

Ducey’s next act was to join iMemories, a Scottsdale (Ariz.) company started in 2006 that converts home movies, photos, and slides into digitally remastered DVDs. In 2008, Ducey helped launch iMemories Online, the company’s Internet-based technology that allows customers to store, customize, and share their home movies online.

“When one door closes, another opens. Given my experience, many people thought my next step would be in the food or franchise category. Yet I sought something that would make me jump of bed in the morning. I believe strongly that you must always have an open mind to see the possibilities. For me, I was searching for another brand I could help take from relative obscurity to household name. As an entrepreneur, you’re constantly navigating your way through a proverbial hallway of new opportunities. Identifying and capitalizing on the right open door defines your success.”

 

*Fun Money by Nichole L. Torres

Spending your free time gardening, restoring classic cars or collecting antique jewelry can be a joy, right? It’s the thing that renews your passion, the thing that makes you feel that all is right with the world. Wouldn’t it be great to find a way to make money doing what you love? Turning your treasured hobby into a business will take hard work and a truckload of creativity, but the rewards are endless. You’ll be doing what you love–and getting paid for it.

The benefits of starting a business based on your hobby are many, according to Rachna D. Jain, founder of business coaching firm Excel With Ease Coaching in Columbia, Maryland. “Many times you’ll have a lot of knowledge about [your hobby] already,” she says. “And the most successful entrepreneurs are the ones who have a passion for the work they do.”

Experts and entrepreneurs stress the importance of researching any business idea before jumping in. Denise O’Berry, president of business consulting firm Small Business Edge Corp. in Tampa, Florida, notes that research is one of the most important first steps: “You need a full plan of how you’re going to address your objectives. It’s all that stuff everybody hates to do.”

Think like a business owner by conducting a market analysis and a competitive analysis to see if existing businesses are similar to your idea. Is there a similar business in your area or nationally?

Find out if selling your hobby wares will sustain you. Jain echoes that sentiment: “Once you have a market identified, canvas Internet neighborhoods and invite people to meet with you [for focus groups].” You may even consider contacting a mentor who can point you in the right direction while you’re researching your business plan.

Before you make the leap, you should think long and hard about whether doing your hobby as a business will ultimately drain your enthusiasm for it.

“A passion for a hobby can help you start a business. But ultimately, hard work and a willingness to handle the not-so-fun aspects of running a business are what spell success. Done right, your hobby business can provide you with a great living–and an even greater source of joy.”

The article also has links to books and organizations “to get the heads up on your hobby business.”

 

*Not Just for Kids by April Y. Pennington

Bigbadtoystore Inc.

Description: Online toy retailer specializing in collectible action figures

Founder: Joel Boblit, 29

Location: Somerset, Wisconsin

Projected 2005 Sales: Over $4 million

Serious collectors prize mint-condition toy packaging, so Boblit guarantees his toys by using a grading system to distinguish “standard grade” (mint or near-mint condition) from “substandard grade” packages. He also offers a premium packing service that ensures an item is in tiptop condition and handled with extra care when it’s shipped. Another big draw is the “Pile of Loot” function, which allows customers to stockpile items they’ve already paid for in a virtual storage bin. Upon the customer’s choosing, the company will ship out all the items at once, reducing shipping costs. Future plans include distribution to approved retailers, who can view volume pricing online. Boblit says, “We’ve got the competitive edge for convenience.”

 

*Spelunking Brought Them a Goldmine by Geoff Williams

For a decade, Steve, an avid spelunker, had been trying to persuade a mountain man to sell him some land with some millennia-old caves on it. In 1999, the man finally relented, and Steve and Jeanne quit their jobs.

They immediately started a small cave-touring business, driving people up the mountain in a van and guiding them through the caverns. But it wasn’t until April 2003 that Steve and Jeanne transformed their independent operation into something quite different: an evolving, growing theme park that revolves around their cave tours.

 

*Karate Kids by Sara Wilson

Former ballerina and stunt woman, Dawn Barnes, 40s, has turned her love of martial arts into an empire. She is the founder of Dawn Barnes Karate Kids Inc., in Santa Monica, California, a children’s karate school that focuses on inspiring self-esteem in every child.

Startup Costs: $15,000 in 1995

Projected 2005 sales: $2.5 million for four studios

“In 1984, Dawn Barnes enrolled herself and her two young sons in a karate class with no idea of the adventures that awaited. By signing up, this former ballerina and stuntwoman started down the path to becoming a third-degree black belt, successful entrepreneur and well-known leader in the martial arts industry. Fascinated by the physical/spiritual balance of martial arts, Barnes trained diligently and, about 10 years later, opened the doors to her own school.”

“She has written instructors manuals and produced DVDs used by teachers worldwide, she spreads her teachings by speaking at national conventions, and she has written a new children’s book series–soon to be turned into a feature film–titled The Black Belt Club.”

 

*Amy Bielawski – Founder, Hare-Brained Productions by Susie Lacey

“In a slow economy, enjoying the arts is a luxury that is often the first thing people cut from their budgets. But performers provide joy and fulfillment so if the spotlight is your passion, don’t give up. If you’re persistent enough, people will find you.”

“I hired independent entertainers to round out my act and realized that I was basically running a business, so I started one.”

“I have no trouble living below my means so I never considered getting financing. I just scraped by. But boy was that first year tough. Luckily I’m not fazed by the things that normally scare people about business. Cold calling? No problem. I’m an actress! I get a big charge out of making a sale. I will say though, and no pun intended, that I took a real risk launching an entertainment business without a safety net. Luckily I’m part of a tight theatrical community. We’re all close. We help each other out.”

 

*How To: Find and Work With a Mentor by Amy Swift

Many people who think they need a partner or vendor would actually be better served by a mentor.

A mentor is generally someone who has a personal investment or interest in you. You can find a mentor through SCORE or StepUp Women’s Network, but the best kind of mentor is going to be someone who already knows you (or loves you!) and wants you to come out on top.

Don’t rely on them too heavily for day-to-day advice. A mentor is meant to be a bigger-picture thinker and strategist for you. They help you keep your head above water, and give you perspective and a sense of longevity with your business.

Set the agenda. Make a list of what you want to discuss and what problems you hope to solve in each session with your mentor.

Choose a mentor who has a history in your specific business.

 

What I Think

I think if Pavlov was an executive coach, many entrepreneurs would not be doing what they are today. You remember Pavlov from your high school biology classes, don’t you? He was the Russian scientist given credit for establishing the theory of “conditional reflexes.”  He noticed that dogs tend to salivate before food actually arrives, when conditioned to expect it, based upon set stimulus, and they prepare for it by salivating.

This led to further study by Pavlov and others of “transmarginal inhibition” (TMI), the body’s natural response of shutting down when exposed to overwhelming stress or pain. Pavlov proved that organisms have different levels of tolerance and all temperament types respond to the stimuli (such as conditioned responses to both pleasure and pain) in the same way, but different temperaments move through the responses at different times.

If Pavlov was an executive coach, I suspect the article by Steven Berglas, The Key To Keeping A Family Business Alive, might have been written up in a psychology journal. The brothers’ story is all too familiar to those of us who counsel family businesses on a regular basis. Childhood “ghosts” and prejudices have a way of lingering on and invading reason in many such situations. Instead of ringing a bell to make a dog salivate, I’ve had clients whose blood pressure I could raise by putting them in a board room with their siblings, parents, or children.

Just how long an entrepreneur will stay in a painful business relationship might likewise make a good research project for a modern day Pavlov. Some would quickly react to the pain and move to relieve it. Some would hesitate, while others might overreact, or even react negatively to positive stimulus. Surely, some entrepreneurs, “trapped” in a family business, might feel akin to Pavlov’s subjects, leading a “dog’s life.”

In case you hadn’t noticed, however, last weekend’s Memorial Day special was largely a selection of articles about entrepreneurs having fun. As Nichole L. Torres points out in the article, Fun Money:

Wouldn’t it be great to find a way to make money doing what you love? Turning your treasured hobby into a business will take hard work and a truckload of creativity, but the rewards are endless. You’ll be doing what you love–and getting paid for it.

Passion can give you a great head start on running a business, since loving the business is often a condition precedent to success in that business. This series of articles, aside from being a holiday weekend diversion, points out the common thread that hard work and perseverance are required, in addition to passion.

Many of these case studies point out that you can have a really great time, make a lot of money, love what you do every day, and have a balanced life, all by picking the right business opportunity. Sammy Hagar learned that there can come a time when your business exceeds your ability to manage it to the greatest potential. Finding the right partner, or mentor, can then make all the difference.

What is stopping you from custom-building your own life?

 

If you enjoyed my impression of these articles, why don’t you read them for yourself and see what you and I missed or hit? Join the Applied Entrepreneurship group on LinkedIn. Membership is free and I try to post about ten articles a day there. We have some great discussions going and if you are an entrepreneur, we hope you will join us.

Lessons I Learned Today 5/19/09 – Free to wander off the path

This is a digest and recap of highlights, quotes, and comments from articles and discussions posted on this date on the Applied Entrepreneurship, LinkedIn group site.

 

*Disowned; Is it time for the family and the business to go their separate ways? by Patricia Schiff Estess

What happens when a likely buyer offering big money approaches a family business? Business motivations aren’t the only reasons to think twice about selling the company.

Look at the business’s future and examine the foreseeable external and internal conditions that might affect it. Consider whether this is the optimal time to sell the business given its stage of development and the market. And then determine whether the succeeding generation is in place, competent and interested in taking over.

There are a number of commonly believed fictions surrounding a possible sale:

• Fiction 1: We have to make a decision to either hold or sell as opposed to recapitalizing, considering a leveraged buyout, developing an ESOP (employee stock option plan), going public, bringing in outside management to run the business and selling some of the stock to an unrelated investor.
• Fiction 2: We’re great negotiators, so we can easily negotiate a sale. It’s naive to think you have more expertise in this field than the professionals.
• Fiction 3: We have a profitable business, so it should go for top. If the family is divided, it translates into a discount in the value of the business that a buyer can realize.
• Fiction 4: Even if we don’t go through with the sale, there’s no harm in seeing what the business is worth, just in case one day we decide to sell. You risk key people leaving and setting up a competing business next door.”
• Fiction 5: We’ll make certain our employees get a good deal. You might be able to negotiate a good deal for yourself and your employees, but you can’t expect it to hold for any length of time. Even if you and your relatives stay in the employ of the original buyer, things change once the contract has been signed.
• Fiction 6: It won’t change our relationships with each other or the community. If you and a relative dislike each other or don’t have similar business goals, then a sale, which limits regular contact and takes you out of a partnership role, might enhance that relationship. If you enjoy and get sustenance from each other on a daily basis, you might feel a tremendous emotional loss when you no longer have that.

 

*When You Gotta Go  by Jacquelyn Lynn  

You don’t want to leave your business, but will you be ready if you have to?

You’re not ready to retire, nor are you considering selling your company-in fact, you see yourself running your venture for years to come.

So why bother with an exit strategy? For the same reason your mother always nagged you about wearing clean underwear: You just never know what might happen.

 

*Recruit a Virtual Sales Force With Your Blog by Mark Stevens

Put the internet to work for you and drive sales by connecting with your customers online.

“Hundreds of thousands of people read my blog, and then serve as virtual salespeople for me–suggesting that their friends and colleagues come into my universe and read the blog, too. I don’t control this growth; I don’t want to and, in the viral world, letting the growth flow unfettered is where the real power lies.”

To be effective, a blog must be:

• Educational as opposed to commercial. You don’t want to sell. You want to inform (which, it just so happens, is always the best way to sell).
• Compelling. People already have an overabundance of content to read. They will make room in their lives for you only if you are diligent in writing truly impactful blogs.
• Frequent and timely. I think once a week is ideal; but whatever your schedule, keep to it. A blog is a periodical of sorts. It must be available on the expected pub date.

 

*How to Start a Clothing Store by Laura Tiffany

Are you fashion forward? Do you love working with the public? Then it might just be time for you to marry your fashion sense and your business sense with a retail clothing business.

“Opening an apparel store is serious business. For some of you, it may mean giving up the safety of your corporate job with its steady income, paid holidays, vacations and the opportunity for advancement. All this, and guaranteed 12- to 14-hour days.”

“Running an apparel store is more than a full-time job,” stresses Nancy Stanforth, professor of merchandising at Oklahoma State University. “Running an apparel store is something you do all day every day.”

Here is a handy set of questions that will help you determine whether fashion is indeed your forte.

• Is this a business in which you have experience?
• Can you live with the inherent risk in the apparel business?
• Do you believe strongly in the apparel industry?
• Is your niche overcrowded or dominated by a few?
• Can you become a specialist?
• Do you have a competitive advantage?

Do all the following before you choose a location for your apparel store:

• Look at several locations before choosing your store site.
• Check into any local ordinances and zoning regulations that apply.
• Determine your store’s parking needs.
• Decide whether the site is worth the rent.
• Define the selling point of your store’s location.
• Determine whether the location is an area of potential growth.
• Define your store’s space needs.

 

*What Are Your Customers Thinking? by Jennifer Wang

There are existing technologies that businesses use to get a read on what customers are thinking.

Store design can influence what people buy. With next-generation advertising technology, you may not be able to read your customers’ minds, but you can get pretty close.

 

What I Think

I think we had a pretty good mix of articles on this day. Some dealt with good old nuts and bolts checklists of proven strategies, and some dealt with visions of the future. I love checklists for clients. Whether they follow them or not, they at least provide a frame of reference for what my clients actually do on their journey to start or run their business. They are kind of like a road map of a journey. Clients are free to wander off the path, to find better and worse ways to do things, to make mistakes and discover innovative new paths. If they get lost, however, they have a way to find their way back and figure out where they made a wrong turn.

Likewise, I like to throw at least a little future thinking at them too. No matter how solid the history of “traditional” or “standard” operating procedures, emerging technologies, “disruptive” strategies, radical shifts in the economy, an aging population, and many other factors tell me that my clients must be much more agile than were their predecessors just a few years ago.

I think that today it is more important than ever for entrepreneurs to know and understand how things have worked in the past. They must also truly have an eye for what is coming over the horizon. If they can get an early mastery of those two concepts, they have a chance of not only surviving, but of prevailing over the competition.

If you enjoyed my impression of these articles, why don’t you read them for yourself and see what you and I missed or hit? Join the Applied Entrepreneurship group on LinkedIn. Membership is free and I try to post about ten articles a day there. We have some great discussions going and if you are an entrepreneur, we hope you will join us.

Lessons I Learned Today 5/18/09 – Family business week

This is a digest and recap of highlights, quotes, and comments from articles and discussions posted on this date on the Applied Entrepreneurship, LinkedIn group site.

 

*Doing Your Detective Work by Paul and Sarah Edwards

Depending on your industry, there may be a trade association or a Web site that collects and publishes pricing data.

Sometimes businesses post their prices on their Web sites. If not, talk with people in your community who are using the products or services and ask what they’re accustomed to paying.

Industry reports are national or state averages and may not be applicable to your clientele. But at least they will give you a ballpark idea.

Regardless of how you gather pricing information or the response you get, the best route to finding out what people will actually pay you is to experiment by setting up a pricing schedule and monitoring reactions from prospective customers.

 

*Fifteen Tips To Keep Your Company Growing by Maureen Farrell and Mary Crane

Each stage of growth comes with its own challenges.

For tiny companies with a bead on that $5 million-in-sales mark, the first thing to do is chart a financial course. But before you fall in love with the projections in those pretty Microsoft Excel spreadsheets, mind your cash. Unless you socked away a pile from a previous life, one wrong move and you won’t be able to cover next month’s inventory or interest payments.

Next step: Focus your energies.

Back-office systems are critical, too

If you haven’t thought about hiring professional management, now’s the time. This includes a chief executive, a chief financial officer and perhaps even a human relations manager and full-time legal counsel.

 

*Family Business Challenges Need Novel Solutions by Jane Applegate

It is impossible to find a one-size-fits-all solution when every family is different.

“I have voting control and I can overrule them, but I don’t,” said Gerald, the only sibling to have worked outside the family business before joining it. He spent three years as an attorney before taking over the business founded by his father and an uncle.

One of the biggest problems arises when the family members, in their roles as shareholders, reprimand or criticize employees who don’t report to them. Tension created when family members interacted with employees who didn’t work for them led the elder Cigliano to institute a strict policy that calls for verbal and written warnings and a week’s suspension without pay for violations.

“It’s a challenge because we’re both employees and owners,” said Marisa Neal, the youngest of seven siblings, who handles marketing and training for the company’s three retail seafood stores. “The problem is, employees look at you as an owner—not necessarily as an employee.”

It’s tough working for a family business because “things take so long to change and it’s very hard for my siblings to take direction from outsiders.”

We’re afraid to take risks because it will affect so many people’s lives,” making any changes is tough for him because he feels responsible for his family and his employees.

Some of his younger brothers work as salespeople, others handle operations, and one brother is responsible for the company’s computer systems. He said the three youngest siblings tend to stick together and have a different view of the world since they were born after the family business began to flourish and the family had more money.

“There was a different experience for the three oldest children,” said Gerald. “There was more money when the younger kids came along.”

 

*Business Mentoring for Your Kids by Patricia Schiff Estess

If a family business decides to use nonfamily managers as mentors, they have to develop a well-defined, well-structured mentoring plan.

Selecting an interim leader to act as the mentor is another option. Parents ready to retire might opt to hire an interim president when they take leave of daily responsibilities, if their successors are not quite ready to take the helm. Part of the new president’s job is to mentor the heir apparent so he or she is ready to take over in a given number of years.

Before a nonfamily manager assumes a mentoring role, he or she should be clear about the latitude of his or her decision-making responsibilities, advises Harvey Meier, a family-business consultant in Spokane, Washington. Among the issues to be addressed: Can the manager discipline the successor or decide the successor’s compensation and job duties?

Once the parameters of the mentor’s authority are established, Meier says the family has to assure that they will support the manager and that the job will be worthwhile, either through written guaranties of job security or additional financial compensation.

The core of a mentoring plan is an assessment of the successor’s capabilities: intellectual, educational, communication, and leadership strengths and weaknesses, as well as his or her skills and interests.

The mentor or mentors can develop a plan to improve weaknesses and capitalize on strengths.

There has to be sufficient teaching, training and monitoring of its assignments and goals. “Specific goals–what successors must do, what must be accomplished before they move to the next step–are necessary if the younger generation is to move through the plan.”

The plan should be of limited duration, anywhere from five to 10 years, Hoover contends. At the end of the successor’s mentoring, barring any unforeseen problems, leadership is transferred from the existing leader to the new one.

 

*Are Your Kids Wrecking Your Business? by Patricia Schiff Estess

So what can you do to rectify a rocky start when a young adult enters the family business? First, bring the issue into perspective, Herz Brown suggests. Either the parent or the child can ask themselves, “If this weren’t my child (or parent), how would I define this problem?” Is it a question of personality? Of being in the wrong position? Of not having enough experience? Of not communicating adequately? Of not having a method for resolving conflicts?

Once the problem has been identified, you can look for solutions. Maybe the child should work for another company in an allied field to gain experience, or maybe he or she should report to someone other than the parent. Maybe the parent and child can plan to meet once a week for an hour off the premises to discuss issues surrounding the business.

He also suggested creating a board of directors that meets quarterly. We did, and it has allowed the boys to air their ideas and goals with a group of people we all respect, and to get feedback from someone other than me. In fact, it’s proved so successful, it’s allowed us to go back to having dinners together and being a family again.

Often, the upheaval has to do with unmet expectations on the part of both generations, says Sam Lane, founder of LBF & Associates, a family business consulting firm in Fort Worth, Texas. These expectations can include everything from how much vacation the young adult can expect to have in a year to far more complicated issues, such as what kind of mastery the person will need to exhibit before moving up the ladder to a higher position.

“Both generations may think they’ve talked about what’s expected because they’ve touched on the subject in snippets of conversation,” Lane says. “But that’s not the same thing as sitting down, having lengthy and thoughtful discussions, coming to an agreement on expectations, and getting those expectations on paper.”

 

*Stock of Ages by Patricia Schiff Estess

Every relative seems to want a piece of the family business pie. Don’t let your business be a casualty of these shareholding squabbles.

It’s obvious if you do the math: The longer a family business has been in existence, the greater the number of people who may own its stock. Too many family businesses collapse on top of themselves because the stock was fragmented and owned by shareholders who had no interest in the business.

The ideal situation is for a family business to work all this out before the stock certificates leave the founder’s hands.

Shareholder wars are often more a matter of stock owners simply having different agendas than anything else. Those shareholders not directly involved in the business, the outsiders, often received their stock as an inheritance. And yet it doesn’t turn out to be a great windfall: They can’t sell it easily, and the money they earn from it usually pales beside the high fliers in today’s markets. Outsiders often look for ways to shed this so-so investment and reinvest the money in a venture that’s more lucrative and more liquid.

The insiders-those family members active in the business-have another vision. Perhaps they want to keep dividends low, so more money can be plowed into the business for growth and compensation. Or maybe they want a way out of being forced to confer with outside relatives when making decisions concerning the company’s future.

It’s imperative that family businesses put their own buy-back programs in place so shares to companies’ stock can be redeemed by those who decide they want out.

Any plan considered should restrict people from selling to anyone outside the family and define when, who, what and how the company will redeem the shares.

Any of the four Ds-death, divorce, disability or disillusionment-can trigger the desire for a stock redemption

It is important to form a plan that delineates how and when the payment of redemptions will be made.

• Will there be a window of opportunity for redemptions, sometimes from 30 to 90 days annually?
• Will the payment be immediate and in cash, or will it be spread out over a longer period of time?
• Will there be a minimum and maximum amount that can be redeemed annually?
• If shareholders want to redeem more than the company has in its own sinking fund, will all the requests be handled on a pro rata basis, or first-come, first-served?

Stock agreements are also subject to complicated tax laws, and the family should seek the counsel of appropriate accountants and lawyers when designing a stock-redemption plan to see whether the redemption will be treated as ordinary income (and taxed at the individual’s normal rate) or as capital gains (and therefore taxed at a lower rate).

Stock-redemption agreements can be tricky. Because each family is different, the final agreements must be customized. The plan should aid long-term family ownership, respect the important contributions and the varying needs of both insiders and outsiders, and be as savvy as possible about the tax considerations of redemption.

 

*Stock It to ‘Em by Patricia Schiff Estess

The younger generation is eager to get stock in the family business, but the older generation is reluctant to give it up. How does this impasse get resolved?

Estate-planning experts suggest gifting stock from one generation to another in family businesses be done often and early. Give stock away to your successors when its value is low-assuming you have a growing company and expect the stock to increase in value.  “That’s because gift tax consequences are based on the fair market value of the stock at the time it’s given.”

In family businesses where multiple considerations come into play, estate tax is just one factor.

There’s the issue of timing – the head of the company, it often feels like he or she is giving control to children who, however loved, may not be qualified to handle it.

• Do you want to retain financial control of the business?
• Are you uncomfortable with the level of your children’s commitment, maturity and leadership abilities?
• Do you give stock equally to all your children regardless of whether the kids are in the business?
• Do you have ongoing financial resources to support yourself in retirement?

If the answer to any of these concerns gives you cause for worry, you might very well be reluctant to gift stock.

Every generation will manage differently and put its own stamp on the company. Not only is that its right, but also its responsibility.

Other issues:

• equalization of wealth/stock between kids working in the business and those not;
• retirement equity for founders/parents, etc.

 

**8 Tips for Working With Web Designers by Johnathon Williams

Unfortunately, commissioning a website isn’t as simple as ordering office supplies. Web professionals and businesspeople don’t always speak the same language, and the learning curve for an already beleaguered entrepreneur can be steep. Here, several web designers explain how to select and collaborate with a designer to create an attractive and effective site–on time and on budget.

The first step in finding a designer you like is finding designs you like.

Consider the scope of your project as well.

Know the basics. It does help to understand a few fundamentals.

Realize how much direction you will need to provide in order to give your designer a successful starting point. The process is a collaboration from start to finish. In the beginning, designers typically ask for detailed descriptions of what prospective clients needs from their websites, as well as for links to other sites that the clients admire. If a designer provides an online questionnaire, potential clients should answer it as thoroughly as possible

Understand how important a good match is to a project’s success. Contact a designer’s previous clients to ask about their experiences.

Know what you’re paying for

Once the match is made, a contract is the next step. And here clients can’t be too careful, Reeder says. Everything that’s meant to be included in the project, from the payment schedule to the number of revisions that a client is allowed to request, should be spelled out. While some designers are flexible about small changes, clients shouldn’t count on it.

“Read it thoroughly, because anything that is not in that document is going to cost you extra.”

Clients should also be prepared to put down a deposit before any work begins.

Clients should be honest if they want to see a different design, but they were equally adamant that wholesale revisions are usually better than a lot of small changes.

“If you feel like the design is way off the mark and it doesn’t feel right for your business, speak up.”

The client is usually responsible for providing the site’s content–most commonly the text.

The most common cause of delays or extra costs after the contract is signed are sudden changes or additions.

 

*Not Just Any Partner by Laura Tiffany

You like marketing; he likes accounting. You enjoy designing new products; she’s a sales guru. Finding a business partner with complementary skills can be the best thing you do for your business–and yourself.

 

*Laying Down the Law by Nichole L. Torres

You just started your business – Now is the time to decide those issues–not after a problem develops,”

Don’t ever go it alone. Instead, Kopit suggests entrepreneurs enlist the services and counsel of a good lawyer, an accountant and an insurance agent at the very beginning of their start-up ventures. “Younger [entrepreneurs] particularly need people to bounce their ideas off of,” he says.

Hiring issues are a major legal consideration for start-ups. Consider whether you need a written noncompete contract with employees, whether you’ll use independent contractors and so on.

Should you classify your business as a sole proprietorship, an LLC, an LLP or a corporation? “There are tax implications that go along with [each choice],” cautions Kopit. Be sure to weigh each option with the help of your advisors to determine which form will best serve your business plan.

 

*Managing Your Brand’s Reputation Online by Karen E. Klein

Small businesses without national brands are perhaps most vulnerable to rumors, complaints, and bad blood spread about them through blogs, online review sites, and Webzines. But some entrepreneurs are unaware of what their customers—and critics—are saying about them on the Internet. They should get better at monitoring their online reputations

Technology, and particularly social media, has evolved so quickly that many small business owners are struggling to keep up with the task of managing their company’s presence in the conversational marketplace.

If you don’t control the message, somebody else does.

For a small company with $1 million in sales, when a rumor flies about their product or service, it could sink their entire business.

There are so many free tools and assets that you can use to monitor what people are saying about you, using Google Alerts, Google News, Yahoo Alerts, Technorati.com, BlogPulse.com. You just plug in your name. BoardTracker.com measures what’s going on in the world of online forums. Keotag.com monitors what’s going on in the social arena. And then there are paid services like BuzzLogic.

If you go to the source and explain truthfully where you’re coming from, you buy good will from people who were flaming you. There’s nothing better than to turn an adversary into an advocate, but of course you’re not going to have a 100% success rate.

If you go to the source and explain truthfully where you’re coming from, you buy good will from people who were flaming you. There’s nothing better than to turn an adversary into an advocate, but of course you’re not going to have a 100% success rate.

“We have to deal with this stuff in real time, so everyone gets the feeds and when stuff happens, we’re all alerted.”

“It’s almost like a badge of honor in the company to find out something and deal with it first.”

 

What I Think

This was obviously part of Family Business Week for the Applied Entrepreneurship group. Several articles today, last week, and continuing this week, deal with family business issues.

When you really think about it. If most family businesses could apply entrepreneurship principles we have been reading about in the 600+ articles posted since this group began in late February of this year, many “family” problems would either not manifest themselves in adversarial fashion, or would disappear altogether. I’m certainly not saying that this would solve all the problems the family layer of complexity imposes on the issues non-family businesses must deal with, but I am saying they would provide substantial help.

Many of these problems would go away with better communication. This is true for family and non-family businesses. Let’s take a few examples.

First, at the start-up stage, any business with more than two “stakeholders” or owners (not necessarily the same thing) should have a written agreement setting out basics:

• Who is an owner?
• What “consideration” is being paid for equity and how much equity does each owner actually own.
• Are there any restrictions on transfer of equity (i.e. a buy-sell agreement)
• Are there binding agreements for initial owners to put up more capital or consideration later, and if so, under what conditions? What happens if they don’t put up as required?
• Who is an employee or non-owner and what is their role in the company, including options to acquire equity?
• Who owns intellectual property rights or other assets used by the company?
• Is there a non-compete or non-disclosure agreement?
• What is the chain of command within the company?
• How are profits divided or allocated between owners and non-owners?
• What is the legal form the business will take?

At the other end of the life cycle, we have succession planning. Way too many good family businesses go away simply because the founders have not created a realistic succession plan, including the communications portion and the talent development module. Family businesses often fall apart in the third generation. If the founder’s passion and skill are sufficient to build a business, the second generation is often brought up in apprentice fashion, likewise living in the business.

When the third generation comes along, that generation often has enjoyed the privileges of the wealth resulting from the hard work of the first two generations, but may not have worked in the business at all. Consequently, the innate understanding and appreciation for the hard work and strategies involved in keeping the business successful, may simply have faded away or never been instilled in this third generation. Once the passion and skill are gone, there may be little love or understanding involved in management of the business, and the death spiral begins.

If the feeling is that new leadership must be brought in, it is often simply a decision on which child will run the family business. Consideration of “outside” personnel is often lacking as an option and family issues, such as first born = first to lead, becomes the deciding factor. In a best practices model, the kids should be trained at an early age to appreciate the role the business plays in the future welfare of the entire family, should become skilled in some lower end aspects of the operations, and should then be given an education in the outside world to gain perspective. Only then should they be allowed to come back in on a management track.

Once the kids come back from their “worldly” educational experience, they can bring in fresh skill sets and perspective of the larger market. When they come back, if they are in the management track, the process of advancement in the company, as well as “graduation” requirements at each level should be explained in detail and enforced, as they attempt to climb the family business ladder. All of this should be communicated carefully throughout the enterprise, so there are no surprises about the role and anticipated future role of anyone involved, including the point at which the founder will step out.

The article by Karen E. Klein, Managing Your Brand’s Reputation Online, is an excellent one. I’m almost always dealing with several clients now who are very concerned with this issue.

This article has some very good tips on how to monitor your company reputation and what to do when the alarm bell goes off, indicating that you are being trashed or your mark/brand is being infringed upon.

A recent article I posted here also deals with other new media branding issues, such as Twitter sites using the same trade name as that for which a registered trademark or service mark has been obtained by someone else.

The proliferation of new media streams in which you or your brand are being trashed or diluted makes it increasingly important to stay on top of this issue.

I’ll be hunting for other dashboard type articles to post here. Thanks, Jason, for posting that one. It seems to have struck a chord with many of our members.

If you enjoyed my impression of these articles, why don’t you read them for yourself and see what you and I missed or hit? Join the Applied Entrepreneurship group on LinkedIn. Membership is free and I try to post about ten articles a day there. We have some great discussions going and if you are an entrepreneur, we hope you will join us.