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 6/12/09 – Up and Down the Elevator Speech

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.

 

*Running Your Own Shop by Dr. Earl R. Smith II

“I want to run my own shop – be my own boss – be in command of my own destiny. I don’t want to report to anybody – be beholden to anybody – or controlled by anybody. As captain of my own ship, I can make the decisions – take the actions – and suffer the consequences without asking permission.”

“No one runs their own shop – no one is their own boss – no one is control of their own destiny. Business is a collaborative team sport – the team that works most closely and effectively together regularly buries the lone riders and dysfunctional gaggles.”

“Business is a team sport that requires all team members to have a strong inclination to collaborate, communicate, learn, teach, evolve and contribute.”

 

*Social Strategy for Exciting (and Boring) Brands by Josh Bernoff

“There are two kinds of brands in the world. There are brands people like to talk about, and brands they don’t.”

“The key with boring brands is to get people talking about their problems, since they won’t talk about your brand. In advertising, you can force messages on people watching other things. In a social context, this fails miserably.”

“Applications that talk about customers problems create “borrowed relevance,” since you generate talk they care about, then make yourself a part of it. American Express (credit cards are boring, face it) created the Members’ Project, a contest to choose deserving charities, since it realized that charity would generate more passion than credit cards. And in perhaps the most dramatic example, Procter & Gamble knew girls wouldn’t talk about tampons, but would talk about music, cliques, and school, so it created beinggirl.com as a vehicle to deliver (very quietly) the occasional feminine care products message.”

“Regardless of whether your brand is talkable or boring, as you launch these social applications, you’ll generate something very valuable – people who care about your brand, or at least the problems it solves.”

“If your brand is talkable, your social efforts will surface the brand enthusiasts who have the most influence. If it’s boring, your social applications will help you find your rare but valuable brand enthusiasts, or even generate a few. Pay attention to these people. Because as advertising clutter rises and word of mouth becomes more important, they’re about to become some of your most important corporate assets.”

 

*Social Networking Explodes and The Law Will Follow by Eric Sinrod

“Social networking is not a passing fancy; indeed, the time spent by Americans on social networking sites is increasing dramatically.  And, of course, where people go, the law will follow.”

“According to a recent report from Nielsen Online, the time that Americans spend on social networking sites is up a staggering 83% from just one year ago.”

“Unfortunately, it is a fact of life that where people congregate, some disputes ultimately emerge.  Social networking interactions therefore will not be free of friction and conflict.”

“As social networking increases, we probably will see a rise in lawsuits related to social networking communications and exchanges.”

“Inevitably, we will see lawsuits where people allege that they have been defamed by false information about them posted on social networking pages.  There also are bound to be lawsuits concerning alleged invasion of privacy having to do with the posting of revealing photos and videos without consent. “

“In addition, lawsuits alleging the improper revelation of trade secrets and intellectual property on social networking pages could come out of the woodwork.  And, we very well may see cases in which there are allegations of harassment, intimidation and hate speech on social networking pages.”

 

*Just Verb It? A Legal Perspective on Using Brands As Verbs by Steve Baird

There is a growing interest and, quite frankly, a dogged persistence among branding professionals to select brand names that have the ability and potential to be “verbed.”

“The International Trademark Association offers these guidelines on proper trademark use to trademark owners and those in the media: ‘NEVER use a trademark as a verb. Trademarks are products or services, never actions.’ INTA provides this example: ‘You are NOT rollerblading, but in-line skating with Rollerblade in-line skates.’ It also offers this test: ‘A good test for correct usage of a trademark is to remove the trademark from the sentence and see if the sentence (generic) still makes sense. If it does not then you are potentially using the mark as the descriptive term or as a verb and not as an adjective followed by a noun as you should.’ Why? To prevent brand names and trademarks from becoming generic names and part of the public domain for anyone to freely use, even competitors.”

“The challenge for trademark types and trademark owners is that many marketers are not listening to these cautious admonitions. As a consequence, trademark types will need to be increasingly more and more creative in their approach to mitigate the risk of the brand not only going to marketing heaven, but dying an sudden death immediately thereafter.”

 

*Understanding Equity Capital

“Equity capital or financing is money raised by a business in exchange for a share of ownership in the company. Ownership is represented by owning shares of stock outright or having the right to convert other financial instruments into stock of that private company. Two key sources of equity capital for new and emerging businesses are angel investors and venture capital firms.”

“Debt Capital: Debt capital is represented by funds borrowed by a business that must be repaid over a period of time, usually with interest. Debt financing can be either short-term, with full repayment due in less than one year, or long-term, with repayment due over a period greater than one year. The lender does not gain an ownership interest in the business and debt obligations are typically limited to repaying the loan with interest. Loans are often secured by some or all of the assets of the company.”

“Equity Capital: Equity capital is represented by funds that are raised by a business, in exchange for a share of ownership in the company. Equity financing allows a business to obtain funds without incurring debt, or without having to repay a specific amount of money at a particular time.”

“”Business “angels” are high net worth individual investors who seek high returns through private investments in start-up companies. They seek companies with high growth potentials, strong management teams, and solid business plans to aid the angels in assessing the company’s value. They often co-invest with trusted friends and business associates. In these situations, there is usually one influential lead investor (“archangel”) whose judgment is trusted by the rest of the group of angels.”

“Venture capital provides businesses a financial cushion. However, equity providers have the last call against the company’s assets. In view of this lower priority and the usual lack of a current pay requirement, equity providers require a higher rate of return/return on investment (ROI) than lenders receive.”

 

*Angel Investing – The ‘Elevator Speech’ Antidote by Dr. Earl R. Smith II

“Listening to the delivery of an elevator speech is the single most distracting event in an investor’s journey. It is to that point in time – the equivalent of ‘love at first sight’ – that most of the subsequent failures can be traced. An elevator speech is an advertising undertaking. It is an attempt to draw in a potential investor and get them interested in providing funding for a venture. It the starkest terms, it is a money trap.”

“Investors have lost more money because they failed to critically evaluate and aggressively test key underlying assumptions than for any other reason. This single misstep is by far the biggest ‘deal killer’ in the process.”

In this article, the author recommends a series of questions to ask an investor when reviewing a potential investment.

 

*Financial Strategies – Some Basic Rules by Dr. Earl R. Smith II

“The CEOs principal contribution to the process is to make sure that the correct financing strategies are in place and well focused. As CEO, you should make sure that the strategies deployed meet, at minimum, five basic criteria. First, are the financings that are being pursued adequate to the needs of the company? Second, are the right financial instruments being used? Third, are the right sources being approached? Fourth, how does each individual financing strategy fit into the overall capital structure of the company? And fifth, can the company afford the financing … is it really a good idea?”

“Don’t fund research by selling equity in your company. If you are spending money to sell what you ‘hope to have,’ your potential customers will generally treat you as a ‘might become.’ If part of the pressure on your financial resources is because you are spending unwisely, financing an error in judgment is a very costly undertaking.”

“Venture Capitalists are, for the most part, highly professional people who are having to search harder and harder for good investment opportunities. While you are chasing them and getting turned down, they are spending significant portions of their days looking for good investment opportunities. So, as hungry as they are to invest, what should it tell you if three or four of them have turned you down? Just exactly what part of ‘no’ are you having trouble understanding?”

“Make sure that you are turning over every stone in the pasture. Don’t let your ego or limited understanding of the options limit your company. Get in touch with experts in the field and really pick their brains. Make sure that you are looking down every alley and then pick the most efficient of the options.”

Here are five options to start with:

• Friends, Family and Fools
• SBIR, STTR & Other Grants
• Universities and Research Centers
• Your Customers
• Strategic Partners

 

*Blocking Social Networking Sites in the Workplace by Eric Sinrod

“An analysis of data submitted by thousands of Barracuda Web Filter customers demonstrates that as many as 50.2% of businesses using these filters are setting up barriers to MySpace and/or Facebook.”

“According to the Barracuda survey, the chief concern is fear of viruses or spyware (cited by 70% of respondents), with potential drain on employee productivity as the second greatest worry (cited by 52% of respondents).”

“Employers raise bandwidth issues (cited by 36% of respondents) and potential liability issues (cited by 28% of respondents) as additional reasons to put restrictions on Internet access by employees.”

“The challenge for employers going forward is to continue to protect themselves from intrusions such as viruses and spyware, and to keep employee productivity up and potential liability down, all while becoming positioned to utilize the most robust Internet communication tools possible.”

 

*The Lowdown on ARC Loans by Mark Deo

“The Small Business Administration recently released “lender guidelines” for America’s Recovery Capital (ARC) Loan Program. ARC loans will be up to $35,000 and available to established, viable, for-profit small businesses suffering “immediate financial hardship” in order to provide some temporary financial relief so they can keep their doors open and put their cash flow back on track. It is intended for businesses that need short-term help to make their principal and interest payments on existing qualifying debt (including conventional loans, credit card obligations, notes owed to suppliers and utilities).”

“The SBA defines a viable business as “a for-profit business with evidence of profitability or positive cash flow in at least one of the past two years.” Businesses must provide three years of financial statements, cash flow projections based on reasonable growth over two years and demonstrated ability to meet current and future debt obligations, including future repayment of the ARC loan. Also, the borrower must certify that they are currently no more than 60 days past due on any loan paid with an ARC loan and they must have an acceptable business credit score as determined by SBA.”

“The SBA is requiring businesses to show evidence of a “change in the financial condition” such as declining sales, frozen credit lines, difficulty meeting payroll, paying rent or difficulty making loan payments.”

“The loans are 100 percent guaranteed by the SBA and made by existing SBA 7(a) lenders. They have no SBA or lender fees associated with them (unless the lender must secure collateral as part of the loan). The disbursement period (up to six months) is followed by a 12- month deferral period with no repayment of principal. After the deferral period, the borrower pays back only the ARC loan principal over a five-year period. ARC loans are available through SBA-approved lenders as long as funding is available or through Sept. 30, 2010.”

 

What I Think

I think one of the common threads among the articles posted on this date is the force of opposites. In these difficult economic times, angels and venture capitalists are looking hard for worthy causes in which to invest. Likewise, worthy businesses, rebuffed by the banks and other traditional sources of capital, are now searching for an angel or venture capital fund, which is willing to invest in them.

The same sort of dance is going on between social media and businesses. New social media applications are being pumped out by the minute and users are lining up to try them. Businesses are searching for new ways to market themselves and strengthen their brand, but some fear abuse will be the result of employing social medial campaigns, so some many are consequently deploying blocking strategies against the very thing they may be looking for.

The government is attempting to find strategies to stimulate the economy, using programs like the ARC loan program. Troubled businesses, the target audience,  are, however, having a difficult time finding a bank, which seems to even have information on the program let alone a way to make such a loan.

Something is clearly missing. A year or two ago, there seemed to be an attraction factor linking such natural partnerships. What seems to be gone or at least weakened is the glue. Replacing it is the fear factor. Even when natural attractants get in range of each other, instead of being drawn together, they almost seem afraid to get too close.

Fear is natural, given the reports of a horrible economy. Part of the problem, is that the fear feeds upon itself and rumors of doom become a self-fulfilling prophecy. Fear stands between forces which are naturally attracted to each other, preventing them from uniting. Since there is not much sense giving an elevator speech which mimics this fear, let’s all try a little courage and see if we can let those natural attractants already in place, simply slide back toward each other.

 

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 6/11/09 – Leverage; Ben Franklin to Breast Milk

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.

 

*Why Benjamin Franklin Was a Better Entrepreneur Than You by Matt D Walker

“As Benjamin Franklin said: Those who would give up essential liberty to purchase a little temporary safety, deserve neither liberty nor safety.”

This quote could probably be interpreted in many different ways, but the one way that I see most fit for this article is going to be with entrepreneurship versus being an employee.”

“The difference between employees and entrepreneurs is staggering. Everything from money management, shopping trends, to problem resolution and beyond. What really makes the difference between an employee and an entrepreneur is simple. It simply boils down to time management, and entrepreneurs know that in order to get something better than what they have, something else must be given. For some, it’s money, for others, it’s time. This is definitely the determining factor.”

“Many entrepreneurs start a traditional business and end up creating a job for themselves.”

“Leverage is essential to any business, and with leverage, you can gain time freedom and still earn income needed to support time freedom and retirement. One of the best business models for leverage is network marketing.”

 

*It Takes a Village to Run a Successful Business – Don’t Go it Alone by Lisa Montanaro

“Imagine a group of people that are available to bounce business ideas off of, to help you make pivotal business decisions, and to serve as a sounding board. Major corporations have a Board of Directors. Non-profits have a Board of Trustees. Why can’t the solopreneur or small business owner too? You can! How? By developing a Board of Advisors for your business.”

“Be careful not to include anyone on your Board of Advisors that pushes your buttons, saps your energy, or is competitive. In addition, try not to surround yourself only with “yes” men and women who nod approvingly at everything you do, and never challenge you or hold you accountable. You want members that challenge you to stretch your entrepreneurial muscles.”

“Do not confuse your Board of Advisors with your official team of advisors. Your team of advisors is usually made up of people that you retain to assist you with certain aspects of your business operations, such as a lawyer, accountant, graphic designer, webmaster, etc. These are paid professionals that you hire to provide services to your company, as opposed to an individual that is voluntarily providing assistance to you and your business.”

“A Board of Advisors can push you when you need a nudge, lift you up when you lose focus or faith, and help to keep you on track.”

 

*Overcoming the Fundamental Obstacle to Entrepreneurship by John Vespasian

“Starting anything new entails risks and demands dedication. Irrespective of the technical difficulties of your chosen endeavour, nothing can be compared to the level of commitment required to get a new business off the ground. The sheer number of different tasks that entrepreneurs must perform, from product development to marketing, is overwhelming.”

“On the other hand, entrepreneurship possesses three characteristics that render it uniquely inviting and reassuring. No other human activity offers these advantages to its practitioners. It is regrettable that many men and women graduate from their studies without knowledge of these facts:”

1.- UNLIMITED POSSIBILITIES:

2.- UNLIMITED SCOPE

3.- UNLIMITED LEARNING

“The fear of being unable to achieve enough sales is what blocks 99% of those who entertain the idea of becoming entrepreneurs. Other obstacles pale in comparison to this one. If you succeed in getting over this initial hurdle, chances are that your business will be able to face whatever problems might come your way.”

“Start small, try different things, see what works and what doesn’t. Learn from mistakes, don’t be discouraged, and ignore malevolent criticism. Take limited risks, follow market signals, be persistent, and you will eventually get it right.”

 

*Why 99% of Entrepreneurs Fail: Because they don’t do anything by Jessica Mah

“Many of you have had the pride and joy of thinking that you know the next billion dollar idea. For scholars, a similar feeling is found when you come to a philosophical epiphany. The high is so great, that it’s difficult to get your mind onto anything else.”

“There are three types of amateur entrepreneurs out there, and in my young life, I’ve been every single one of them. By coming to terms with my failures, I’m more prepared to classify which type of amateur entrepreneur I am, and thus preventing myself from failing in the same way again.”

Type 1 Amateur Entrepreneur: All ideas, no implementation.

• Type 2 Amateur Entrepreneur: Lots of ideas and half assed implementations.
• Type 3 Amateur Entrepreneur: Lots of ideas, lots of implementations, and absolutely no focus.

“Everyone is “working” on a project, but 99% of self-proclaimed entrepreneurs fit into one of the three profiles above. If you’ve thought of the next billion dollar idea, please refrain yourself from being an amateur entrepreneur. If you find yourself as being an amateur entrepreneur, it’s not too late to change. Pick one idea that you’re passionate about, and whole-heartedley follow through with your implementation.”

 

*Fair Trade importer Alter Eco cultivates growth by Lindsay Riddell

“Alter Eco Americas is bringing Fair Trade and organic goods from across the world to U.S. grocery stores while trying to make a dent in global poverty. The startup has more than quadrupled its revenue over three years to $1.5 million in 2008 by landing distribution for products such as quinoa and jasmine rice in major grocery chains. One grocer that carries its products is Whole Foods, which has increased its Fair Trade offerings to more than 1,000 products in the last two years, including Alter Eco’s organic extra virgin olive oil from Palestine.”

“Alter Eco imports 150 products, including coffee from Peru, Ethiopia and Mexico, cocoa from Ghana and Bolivia, unrefined sugar from the Philippines, rice from Thailand and other foods under its brand. Alter Eco Americas has introduced 26 of those to the United States. Most products carry the Fair Trade label, which certifies that companies pay their workers fair wages and provide decent working conditions, among other things.”

“Alter Eco Americas also offsets the carbon emissions for the life cycle of the products. Paying fair wages, offsetting the carbon emissions and requiring products to meet organic standards squeezes margins.”

“In the U.S., we’re competing against brands that don’t have the same standards,” said Senard. “We have to be competitively priced even though we pay our farmers more.”

 

*CD buys aimed at helping businesses by Renee McGaw

“I was thinking, well, people aren’t really thinking about Arapahoe County,” said Milliken, the county’s treasurer. “Crisis is always an opportunity and I thought this is a good time to bring something home to the county.”

“So he came up with his own local stimulus program. Arapahoe County has bought $5 million in one-year certificates of deposit (CDs) from three locally owned banks — Colorado Business Bank, Citywide Banks, and Guaranty Bank and Trust Co. The banks have agreed to use the cash to make loans to Arapahoe County businesses.”

 

*Branding is just not for Coca-Cola or McDonald’s anymore by Steve Beseke

“Personal branding is your 21st century key to promoting yourself in the workplace. Today, branding isn’t just for companies, Hollywood celebrities, or highly-paid athletes. People in all walks of life are starting to use personal or self branding to get ahead in the game of life.”

“The single factor that often explains the difference between a professional who is competent and doing okay and one who earns a significant income and generates lots of business is self branding.”

“Self branding is a strong personal identity based on a clear perception about what you stand for, what sets you apart from others, and the added value you bring to a job or situation.”

“Your self brand is the sum total of other people’s feelings about your attributes and capabilities, how you perform, even their perceptions about what you are worth.”

“It is important to set personal brand goals with a specific time frame and plan of action for achieving the goals. So just like a marketer would, you write down personal marketing activities to achieve your goals. And, of course, you execute the marketing plan. You can’t get to where you want to go unless you plan it and then do it.”

 

*Winds of change for baby business by Jane Meyer Brahm

“A childbirth educator, certified labor doula, mother of five and new grandmother, Wallace started Gracewinds in 2002 when she saw that expectant couples and new parents had to look all over town for services.”

“It was crazy,” she said. “I thought, why not put them all together?”

“She started with five contract practitioners operating out of a former tavern. She and her husband, Jeff Carson, self-financed the business with a few thousand dollars. Jeff did carpentry and remodeling in exchange for a few months’ rent on the building. Christine made use of her art background by painting murals.”

“A childbirth educator, certified labor doula, mother of five and new grandmother, Wallace started Gracewinds in 2002 when she saw that expectant couples and new parents had to look all over town for services.”

“It was crazy,” she said. “I thought, why not put them all together?”

“She started with five contract practitioners operating out of a former tavern. She and her husband, Jeff Carson, self-financed the business with a few thousand dollars. Jeff did carpentry and remodeling in exchange for a few months’ rent on the building. Christine made use of her art background by painting murals.”

“Her big dreams are still evolving. She’s working on a new-fathers program that will become the first of its type certified by the national Childbirth and Postpartum Professionals Association. She started her own publishing company, Braxton-Hicks, to publish her labor guide for doulas, which now has international distribution. She set up Gracewinds Global Breast Milk Initiative, a nonprofit focused on promoting and supporting breastfeeding in third-world countries. She holds monthly meetings for women business owners, focusing on entrepreneurship.”

“What we’re providing here is age-old and timeless – a community of support under one roof.”

 

What I Think

I think some may feel the title of this post is a stretch, but if you look at the articles posted on this date, many of them deal with leverage in one form or another. Matt D Walker’s article, Why Benjamin Franklin Was a Better Entrepreneur Than You, makes the point that entrepreneurs are different from those willing to simply be someone else’s employee all their lives. Entrepreneurs understand they must make a sacrifice to accomplish a quantum leap, but also understand that the rewards are worth that sacrifice. Entrepreneurs make their own “lever,” managing their time more efficiently than others, and failing to be deterred from reaching their vision.

Ben Franklin understood that the American enterprise desperately needed partners if it was to survive a hostile takeover on the heels of the initial launch of the new brand. The American start-up lacked sufficient credit, like many new organizations, and initially was rebuffed by the more established European power brokers. Franklin realized he had to turn his enterprise’s apparent weakness into strength. His innovative approach to European politics made his “wilderness” non-conformity a novelty with which to open doors and purses.

Franklin was a master of the personal branding techniques advocated by Steve Beseke’s article. He made himself so unique he became a celebrity. The barriers to entry facing our Founding Fathers would have seemed insurmountable to another team, but they divided and delegated the various tasks involved in building the foundation of the new enterprise and the bridges necessary to allow it to open trade relations with much more mature and sophisticated competitors in the world economy.

Franklin and the others on the start-up team certainly didn’t accomplish all this by themselves. They could easily have fallen prey to any of the three cardinal sins of entrepreneurs suggested by Jessica Mah’s article, but they were passionate about getting the new enterprise launched, and whole-heartedly followed through with implementation.

 They enlisted the help of an extensive advisory group, just as Lisa Montanaro’s article suggests. They put the talents of their start-up team together and the resulting foundation they gave the new American enterprise was so skillfully crafted that it has withstood the winds of change for over two hundred years. It has certainly changed and grown during that time, but it is obviously now much more diverse and powerful than perhaps anyone other than the Founders could have imagined.

  

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 6/10/09 – Pulling the Angel’s Teeth

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.

 

*Tough Terms, Tougher Entrepreneurs by Roslind Resnick

“Even in good times, it’s never easy to get an investor to hand over a check. But, in times like these, persuading an angel investor to risk even $50,000 on a startup can be like pulling teeth.”

“Entrepreneurs are going to have to seek out new types of financing structures if they want to get their ventures off the ground.”

Trends:

• We have seen an increase in insiders loaning funds to their firms to bridge the gap to better times and also offering investment opportunities to existing investors through rights offerings.
• Sometimes your best financing partner is right in front of your nose.

 

*VC Firms Give Advice on Getting Startup Funding by Ken Sweet

“Small-business owners looking for funding should concentrate on networking and creating pitches that “wow” prospective investors, some prominent venture capitalists said.”

“VC-firm representatives said that while it remains a difficult economic environment for the general economy as well as technology-based companies, all venture capital firms said they are still looking to finance good ideas.”

“All four venture firms at a forum in New York said that networking is an important first step in presenting an idea. Very rarely will venture capitalists take cold calls or emailed proposals.”

“Referrals are extremely important. If an entrepreneur cannot find us through our own ecosystem, they probably aren’t worth talking to.”

“Once an entrepreneur has established relationships with the venture capital firms that invest in their sector or industries, the next step fund managers said is a business proposal.”

“If you cannot be clear and succinct about what value your idea brings, you need to go back to the drawing board,”

“It’s less about the idea and more about the person behind it.”

 

*Virtual Storefronts: Can You Go Home Again? by Roslind Resnick

“Lately, there’s been a lot of talk about mom-and-pop retailers pulling the plug on their physical storefronts and running their businesses from home.”

“It’s easy to see the appeal: No more rent, no more utilities, no more sales staff, no more fines from the city for putting out your trash on the wrong day.”

“The downside: No more customers.”

“When I started my consulting firm, I opened a storefront in Lower Manhattan offering walk-in consulting services for small business owners and entrepreneurs. While the storefront attracted hundreds of customers and rang up lots of sales, we were never able to break even after paying the landlord, the light bill and our eight-person staff.”

“Two years later, I shut down the storefront and took the firm virtual, hoping that optimizing our site for the search engines would bring in enough business to keep us afloat. My gamble paid off–but only because I supplemented our online marketing strategy with a heavy dose of networking, writing and public speaking.

“So take it from me: Before you close your doors and kiss your storefront goodbye, put a plan in place that will keep customers coming in the door. Place a fishbowl at your checkout counter to collect business cards, send out an e-mail newsletter once a month, do your homework on search engine marketing and ask your kids to clue you in about Facebook and Twitter.”

 

* Kiva Brings Microlending Home To U.S. Entrepreneurs In Need by Leena Rao

“Kiva.org, one of the web’s most interesting innovators in the micro-lending space, is hoping to come to the aid of U.S. entrepreneurs and small businesses by launching a pilot expansion that would allow individuals anywhere to make small loans to low-income U.S. entrepreneurs through Kiva’s platform.”

“Kiva is a peer-to-peer lending site that facilitates micropayment loans between citizen lenders and extremely low-income entrepreneurs in developing countries. Through Kiva’s platform, anyone can loan $25 or more to support an entrepreneur and the specific progress of the loan can be tracked from initial funding to repayment. Upon receiving repayment, lenders can withdraw their funds from Kiva or lend again to another entrepreneur, thereby continuing the lending cycle.”

“Since the microfinance platform’s birth in 2005, over $75 million has been loaned through Kiva.org to support more than 180,000 individuals from 44 developing countries.”

 

*Consulting Business Strategy: It Takes More Than Wishful Thinking by Beverley Hamilton

“Some Independent Business Consultants (IBC) whether they be in marketing, sales, IT or HR, assume that just by talking to people, just by having a website or just by having a glossy brochure they will automatically get clients. And it’s this assumption that will ultimately cause frustration, stress and despair as their consultancy flounders due to a lack of clients.”

Your consultancy is a business and a business requires a workable, systemised infrastructure to make it truly successful. The development and sustainability of a profitable consultancy requires thought, planning, trial, review and thought – in all areas of the business. Those businesses that are truly successful have numerous common factors, two of which are:

1. Clarity of who their ideal clients are

2. Sustainable client acquisition systems

Random, ad hoc and unspecific activity may give you clients in the short term but in the long run it will not.

 

*How to Give Your Consulting Clients What They Really Need by Beverley Hamilton

“Just because you know your clients need what you have to offer, doesn’t mean that they know they need what you have to offer. There are a number of reasons for this. The difference between need and want can be minimal but it can also be a chasm.”

You’ve made the break from the constraints of corporate life and are excited to be establishing your new business as a consultant. As an Independent Business Consultant (IBC) whether that be in marketing, HR, IT or sales, you know that what you have to offer is of high value and can create tremendous benefits for your current and potential clients.

You know that what you offer is what your clients need because you have researched your market, listened to clients and you fully understand the problems your clients have. You know that your services can provide the ideal solution.

So what’s wrong with that?

Just because you know your clients need what you have to offer, doesn’t mean that they know they need what you have to offer.

There are a number of reasons for this;

1. They are so caught up in their own world dealing with their problems, which are so immediate, that sometimes what they see as their problem is not their real problem.

2. Some clients already believe they know what the problem is and have a fixed idea of what they see as the right solution.

3. Some clients know what they want but they don’t know or won’t acknowledge what they need

The difference between need and want can be minimal but it can also be a chasm.

 

* How to Start a Consulting Business

“What separates a good consultant from a bad consultant is a passion and drive for excellence. And–oh yes–a good consultant should be knowledgeable about the subject he or she is consulting in. That does make a difference.”

“In this day and age, anyone can be a consultant. All you need to discover is what your particular gift is.”

Things to Consider Before You Become a Consultant

• What certifications and special licensing will I need?
• Am I qualified to become a consultant?
• Am I organized enough to become a consultant?
• Do I like to network?
• Have I set long-term and short-term goals?

 

This is a very nice and complete article for anyone interested in becoming a consultant.

 

*Mistakes To Avoid When Marketing Your Consulting Business by Michael McLaughlin

Many competent consultants risk their own success, and their bank balances, by driving straight into the same old marketing potholes again and again. Take action to avoid these ten common marketing traps:

• The curse of experience.
• Go it alone.
• Overestimate clients’ interest in you.
• Believe your services are top-notch just as they are.
• Sell too hard.
• Dabble in marketing.
• Focus on your “accounts,” not your clients.
• Take the one-size-fits-all approach.
• Impatience.
• Dread marketing.

 

*Survey Says: Entrepreneurs Nix Consultants by Nina Kaufman

“A recent survey conducted by BizBuySell, the largest online business-for-sale marketplace, found that nearly 75% of business owners doubted the effectiveness of hiring consultants to improve business reputation, preferring instead to do their own marketing without external assistance.  Of the survey sample, 68% of respondents said they had never engaged a consultant to help improve their business. Of those who had engaged consultants, 45% were moderately satisfied with the results. 27% felt the consultant did a great job for the business, while 24% regretted the decision to hire a consultant, stating it was a waste of time and money.”

“Sometimes, it’s worth working with more expensive consultants, because they may be more likely to have the know-how to help you.  Find out if they’re on the speaking circuit.  See if they’ll divulge how much money they are making/how many clients they have each year from their consulting practices and products.  See who recommends them and in whose circles they travel.  That’ll give you a definite sense of whether they are successful at what they do.”

 

*The Secret To Becoming A Great Entrepreneur by Laurie Hayes

“You may have an exceptional product that can improve the lives of many.”

“You may provide a service that is second to none.”

“BUT …if you don’t have exceptional sales skills, you will lose out on many an opportunity to demonstrate or provide value to anyone.”

“The most important, yet least developed business skill in many small and home-based business owners is selling. Lack of effective sales skills is a major contributor to the demise of a business.”

“Although you are an entrepreneur, you are also a sales person. You are in the business of selling a product or service to others.”

 

What I Think

I think the common thread in many of the articles posted on this date is wishful thinking. Angels and venture capitalists say they’re looking for the “wow” factor in business opportunities they review for potential investment. In nearly the same breath, they also say entrepreneurs need to find new types of financing structure.

Likewise, some bricks and mortar businesses are trying to stay afloat in rough economic waters by closing their physical location in favor of a low cost or no cost virtual presence in the market place. As one of the articles suggests, sometimes closing off your physical location will prove a roadblock to your customers finding you in sufficient numbers to keep your business alive. It is wishful thinking to believe that cutting costs to the bone can be the sole solution in an economic downturn. This may prove the reality is that you’re cutting the throat of your own business.

The wishful thinking theme also runs through the consultant’s dilemma articles. Many a consultant has tried to build a client base by posting a beautiful Web site and sending out tons of glossy brochures. This is not an alternative to hitting the streets or entering into the business with a book of business.

In consulting work, there is always a pipeline, which has to be full. If you start with no clients, cash flow can kill you before the cash matches the expenses, even if lots of business is coming in the front end of the pipe. By the time new business reaches the profit end of the pipe, quite a bit of time and expense will likely have already accumulated. If borrowing money has become a pattern for keeping the business alive while you wait for the pipeline to fill, or worse yet use/abuse of credit cards, the debt service on the loans and credit cards alone can put a profitable bottom line out of reach.

Clearly, to be a successful consultant, one should have demonstrable skill in one or more areas needed by clients who have an ability to pay for this expertise. Ability to pay, however, is not enough. Some markets are simply tougher than others. Some industries and markets are very much accustomed to working with all sorts of consultants. In other markets, however, you will find just the opposite.

The articles posted on this date indicate that being a proficient networker is an essential skill for consultants and those seeking funding from angels and venture capitalists. Both of the groups, seeking clients and financing, respectively, have been known to overestimate the interest of those they seek, and underestimate the amount of research and other groundwork necessary to bag their prize. Both consultants and entrepreneurs seeking financing must do the homework, be ready with answers for every question, be able to demonstrate the superiority of their cause above others with whom they compete, and communicate all this with clarity and brevity. Anything less will result in odds of success similar to those of one trying to pull an angel’s teeth. 

 

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 5/27/09 Refining Your Customer Message

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.

 

*Behind Kayak.com & Getting Human by Scott Belsky

“Entrepreneur Paul English was tired of navigating the endless menus of options when trying to get some customer service. Whether it was an airline, utility company, or car service center, English simply wanted to talk to a human. This was the inspiration behind his “Get Human” project. What started as a blog and growing database has now become a widely publicized campaign to transcend the depersonalization of customer service.”

“Paul English is a serial entrepreneur. He co-founded kayak.com and subsequently raised $30 million dollars to grow the travel company. He has many ideas, and he has a solid process to push them forward.”

“The Get Human project is a perfect example of Paul English’s ‘start small and test’ philosophy. The whole idea for Get Human started when English was pissed off with Verizon. He couldn’t get through to customer service and found himself lost in an automatic phone tree.”

“Accountability and small, quick doses of feedback help push good ideas forward. Describe your ideas, get them out there.”

“Every creative person should have a blog. It only takes a few minutes to put one together.”

“Paul English has a bias against broad strategic career goals in favor of incremental ideas, measured risks, and lots of testing. When working with new ideas, English suggests that you ‘demonstrate something small that people love…and then get more confidence…and scale up. Don’t aim for the all-American novel, start with small hilarious essays or mini-projects…then find small successes that you can build on…’ As he explains it, ‘incremental achievements are easier and safer than grand career goals. I go against big grand plans. The original grand plans are usually wrong. Instead, I try to find a way to test ideas every day…and I remain open to new variations of ideas every day.’”

“Also, be willing to fail. If you’re afraid of failure, you’ll never leave your house. When you do fail, just be sure to move on quickly…a lot of entrepreneurship is enjoying the process of creating. Even if you don’t get the eventual prize…you’ll still gain a better mastery of the process itself.”

 

*Creating Your Best Competitive Advantage by Carol Aubitz

“In a recession economy, where the pool of people spending money is shrinking in size, it is more important than ever to have a competitive advantage in your market.”

“Given the choice of two companies, with comparable price, quality, and product, the buyer will always choose to do business with the one that demonstrates it values its customers. That’s a competitive advantage.”

Here are some tips that can make everyone in your business better skilled in sales and service, and therefore more effective at building your competitive advantage.

• Learn how to listen.
• Smile.
• Be on time.
• Respect their time.
• Acknowledge people quickly.
• Integrate sales and service functions into your Website
• Provide little extras.
• Know how to talk to an irate customer.

The four steps to problem solving are:

• Listen without interrupting.
• Apologize and show empathy by re-stating the problem.
• Solve the problem. The first step to solving is to simply ask what the customer would like you to do.
• Thank the customer for their business.

Getting a competitive advantage through better sales and service is a quick and low-cost way to keep your business healthy during a bad economy.

 

*Get the Customer to Find You by Carol Aubitz

In the first quarter of 2009, U.S. Consumer spending actually increased 2.2%. The challenge is to get consumers who are spending to spend it with you.

 the way consumers receive and relate to advertising, and the way they shop, is changing. The consumer is in control of media and is showing a skill and willingness to delete, block, filter, and ignore your outbound marketing. That’s why an important part of your marketing strategy needs to be inbound marketing.

Get found online. Websites that compile lists of companies by category and geography usually rank high. The local online Yellow Pages will also come up on the first page. Be sure you are listed on online Yellow Pages and in compiled lists for your category.

Think of ways you can provide information about your specialty that would be a benefit to the consumer. People read about things that interest them.

Look for ways to link your information to blogs and social sites. Writing a blog or posting online social content for a specific category can generate visits from people interested in your information.

Once the prospective customer finds you, it is up to you to create the relationship and provide the reasons to stay in touch. Remember that customers buy for their reasons, not yours. Continue to reinforce their reasons and customers will continue to find you.

 

*Think Like a Customer by Carol Aubitz

Thinking like the customer is one of the most important lessons a business can learn. There are some universal ways to please a customer.

Don’t waste their time. Let them know how your product or service will make their life better. That’s what they want to know. Make information on your Web site easy to find and the site is easy to navigate.  Be sure your process from product search to checkout and payment is seamless. Keep the process streamlined.

Research from 2007, the most recent year with facts available, shows that 60% of online purchases are abandoned. That is a staggering percentage.

12% are abandoned prior to checkout and 48% are abandoned at checkout. That 48% figure represents people who chose to buy something, but found the process too cumbersome, frustrating or confusing to complete the transaction. Think about what it means to lose 48% of sales because of the process!

If you are a destination site you need to think like a visitor who has never been to your destination before. all Web sites there is one universal need that many totally overlook – contact information beyond the site. Every site should list their physical address and phone number. It adds legitimacy to the business and reinforces that a customer can deal with a real person if necessary.

If you are a retail or service business with walk-in customers, you should acknowledge them within 3 seconds. To not acknowledge them is the same as ignoring them. It is an insult and shows you don’t care.

The acquisition of a new customer is rarely an instantaneous happening. Customers need to be given time, need to be reassured, need to build trust with you. This is key to building a relationship that will create customer loyalty for you.

If customers don’t buy immediately, have a system for keeping in touch. Let them know you haven’t forgotten them and that you still care about their needs.

 

*Making Your Marketing Tick by Pamela Taylor

You can optimize your minimized dollars, eliminate stale marketing efforts, and expand your outreach to prospects by focusing on what can be achieved quickly and leveraging your existing marketing assets. Center your efforts on just a few key components.

Refine your messaging to pinpoint who you are and what you do. Don’t leave it to your customers to guess. It should be clearly defined and communicated over and over again by every level and division in your organization.

Figure out a way to relate directly to your customers.

Ask existing customers what is most important in their buying decisions. What are they looking for? Second, define your offerings and messaging to meet their interests. When you have the agility to adjust marketing messages and send out targeted, relevant communication, you will see good results. Third, refine your offer to draw your customers in. Finally, empower your customers with actionable information such as a simple paper to download, an interesting question or survey, or an offer or special that they can inquire about.

Incorporate social marketing and all that new technology has to offer, to develop quick and effective tactics that are very customer-centric.

Develop a campaign driven by one-to-one communication centered on personal, targeted outreach.  For example, develop personalized print materials such as a simple letter, and invest in personal emails and follow up phone calls. 

 

*Low-Cost Ways to Boost Cash Flow by Carol Aubitz

To fight the blight of a tight market, use stealth marketing to motivate consumers without looking like advertising as usual.

Guerrilla techniques are the unconventional, innovative and imaginative approach for reaching customers in ways and places that are unexpected – with memorable experiences and minimal resources.

Do something fun and exciting.

One of the trends in getting consumers engaged is “tryvertising.” This allows customers to get familiar with your products or services without being pressured to buy. Tryvertising can be done through sampling days, free classes and demonstrations, redemption certificates not tied to a purchase, treasure hunts, scavenger hunts, games, and contests.

Create new partnerships that are mutually rewarding. Look for other businesses that complement yours or have the same type of customer you do. Do endorsement swap marketing.

Achieve the unexpected. The reason the unexpected gets results is that it generates buzz. Little unexpected actions stir emotional reactions from customers. If you sell mattresses, how do you distinguish yourself from all the competition?

As you look at stretching your marketing dollars, think about the many ways you can break away from the usual. What elements of surprise will you use?

 

*How Reverse Thinking Can Move You Forward by Carol Aubitz

One of the best techniques to use for changing your perspective, and looking at your challenges differently, is reverse thinking.

When used for marketing, the technique of thinking in reverse shows you outcomes that can lead you into new ways of communicating to consumers by challenging assumptions that have become ingrained into the way you think.

When you engage the process of reverse thinking in your planning and team meetings, you’ll make another fascinating discovery. You’ll start to see which people in your management team are stuck in traditional “we’ve always done it this way” thinking and which people have the ability to think out of the box to take new risks with new ideas.

The process will make you stronger and more creative.

Steve Jobs, a co-founder of Apple, said “Innovation is the ability to see change as an opportunity, not a threat.” It is also the ability to think differently, to reverse the standard approach to problem solving by changing the perspective of the problem.

When you start using reverse thinking and begin to think differently, remember this warning from Larry Ellison, founder of Oracle, “When you innovate, you’ve got to be prepared for everyone telling you you’re nuts!”

 

*If I Were Launching a New Small Biz Web Site Today by Matt McGee

Make sure:

• the Web site is fully developed before launch. There’s no sense marketing an unfinished product.
• The Web site is attractive and is user-friendly, and you’ve taken care of the basics of usability.
• You have done the appropriate keyword research and your page content reflects that.
• Your web site has good content for your target audience (and for search engine spiders).
• You’ve done at least the basics of SEO across the site.
• You have metrics tracking in place.
• Create a pay-per-click (PPC) advertising account.
• Write and Distribute a Press Release(s).
• Buy Directory Links.
• You look for local and niche/vertical directories that will likely be free or very inexpensive.
• Take advantage of Local Search opportunities.
• Add a blog to your web site. Blogs make great “spider food” (i.e., search engines love blogs) and they’re a great way to have an ongoing conversation with customers.
• Be active in the blogger community. Create accounts at MyBlogLog and Technorati, and put their widgets on your blog. Run your feeds through FeedBurner for the community stat tracking. Use Bloglines or Google Reader to track other blogs in your industry and be active in commenting on them.
• Join Twitter and Facebook because each offers a good opportunity to meet and network with local people who may be good contacts and/or future customers. Spend the first month or so just meeting people and listening to the wider conversations.
•  Join your local Chamber of Commerce.
• Investigate local offline advertising options. Sponsoring high school sports teams, Little League teams, etc., is inexpensive and gives me at least a couple months of exposure, not to mention plenty of goodwill with parents and the community.
• Invite/pay bloggers to write about your business/product/service. Use ReviewMe or Sponsored Reviews to find bloggers in yout industry who are willing to write a paid review
• Use Yahoo! Answers to answer questions from people asking about your industry.
• Use Flickr. Join photo groups related to (a) your products/services, and (b) your local geographic area and upload quality photos related to your business

 

*Live Life to the Fullest – The Importance of Self Growth by Serena Carcasole

As our life evolves, so must we! Whether it is your personal life or work life, self growth and self improvement is an important route to helping you deal with the stress of change and instead accept the natural life alterations ahead.

Self growth is about being true to yourself and thinking about what your main priorities in life should be. It is about learning new skills, knowledge and ways to help you get ahead personally and professionally. When you invest in self growth and self improvement, you also invest in your future and gain the confidence and inner strength required to take you to the peak of success and happiness.

Learn from past choices to help you improve yourself for the future.

Take one goal or project at a time and learn from it. Once you complete one goal or project, go on to the next.

Sometimes self growth begins with the growth story of another. If you dream of opening a small business, seek the advice of someone who has.

Welcome Change with Open Arms

“When you change, you grow. It’s that simple. And when you know how to accept change and grow with change, you are well on your way to personal responsibility and success.”

 

What I Think

I think it is pretty easy to find a common thread in the articles posted on this date, although, once again, they were somewhat randomly selected. Lots of business owners worry about the economy and declining revenues, but, contrary to Einstein’s warning (to paraphrase – insanity is doing the same thing over and over and expecting a different result) they do not always take the basic steps necessary to change the trend for their own businesses.

Serena Carcasole’s article about self-growth is a good start. It is hard to have the energy and perseverance necessary to extricate yourself and your business from the gravitational force of our current economic “black hole,” if you don’t have confidence in yourself and have a clear vision of where you want to go. Researching what others have done, as well as finding the right mentor or informal board of advisors, can make a huge difference in the trajectory of your approach to personal satisfaction.

Carol Aubitz’s article about reverse thinking is a good second step. Challenge all the assumptions. They may be partially to blame for the bad things happening to your business. See innovation as an opportunity, rather than as a threat. Test your employees and advisors, using the same challenge of “thinking outside the box.” If all you hear is reasons why things can’t be done and why things can’t change, it may be time to get some new advisors who see opportunities, rather than barriers to change.

Most of the articles posted on this date wrap themselves around methods of providing better customer service. Some of the articles detail ways to get customers to find you, from inbound communications to how you dress up your storefront windows. Others talk about personal outreach, relating to customers on a personal basis, from letters and e-mails, to the greeting at the front door of your shop.

In a similar vein, several of the articles focus on way to make sure customers have a clear vision of what you are and why your product or service is just what they need. Rather than scrapping what you are doing, incremental steps can allow you to do this with less cost and risk, while engaging your customers in the process. This engagement can engender customer loyalty and provide you with your best “consultants.”

Demonstrate something small and then ramp it up, based upon customer feedback. Taking this in small steps allows you to “course correct” as often and at as little cost as possible. Did someone say agile marketing shift?

Thinking like a customer, as one of these articles says, is a recurring theme in many of the articles posted on this site over the last few months. Put yourself in the shoes of your customers or clients and then work backward to create or refine a message in sync with what they want and need. Define what you offer in terms of customer interests, not the other way around. Way too many businesses are spending their resources on ways to push a product or service down the throat of customers, rather than figuring out what the customers want, and then facilitating the process of providing it most efficiently to them.

There are numerous ways to demonstrate why and how your product or service is better than that of the competition. Guerilla marketing techniques can cost substantially less than typical marketing campaigns, and be substantially more effective. Making your marketing fun, exciting, and different, assures customers will talk about you and what you offer. Techniques, such as “tryvertising” swap marketing, and other co-op ventures can result in low cost leveraging of marketing impact, reaching new customer segments you might not have been able to reach otherwise.

Social networking tools, and a streamlined, “no barriers” Web site can make a substantial difference in your ability to close sales. These can also be great and inexpensive platforms to demonstrate your expertise, high quality of goods and services, and opportunity for customer feedback. The feedback allows you to monitor customer satisfaction, get ideas for new products, services, improved processes, and ways to better focus your limited resources on what makes the biggest difference to your customers, and your own bottom line.

  

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.