The Entrepreneurial Process

Location

2009-08-04T21:12:00.001-04:00

I received my Zappos.com shoe order today, 24 hours after I placed the order. Wonder how they did it? Location.

Although their corporate headquarters is in Las Vegas, their distribution center and warehouse is located in Kentucky – right smack in the middle of the United States. Zappos.com can have their products reach their customers quicker through strategically leveraging the convenience of also being located next to the UPS Worldwide hub.

Yes, even in the age of e-commerce and Internet businesses, location still matters.

Exceeding Expectations

2009-08-03T17:01:00.001-04:00

The greatest way to create a loyal customer base is to exceed expectations. I ordered some shoes through Zappos.com today, with the shoes expected to be shipped within 4-5 business days. A few hours later, I received an email that my order had been processed and would be shipped today priority at no extra charge, saying:

Please note that this is being done at no additional cost to you. It is
simply our way of saying thank you for being our customer.

As a customer, I felt valued.

Perhaps they planned on shipping it out today all along…but the way that it is portrayed makes you feel like you are receiving something additional. It can be a lesson to us all on how to ‘package’ our services to exceed our customer expectations.

On a side note, my husband used to be an auditor at the bank and Zappos.com was one of his clients. He had to go out and audit the inventory so that they could obtain the necessary financing. The company was amazing then, but has come a long way. Last month, Amazon bought Zappos for about $880 million.

Now that is an idea!

2009-07-17T14:18:00.001-04:00

An idea is only worth something if (1) you can protect it and (2) you can exploit it. If you are looking for a laugh, check out the totallyabsurd.com website. There are plenty of ideas that are being legally protected, although the feasibility of being able to exploit these ideas remains to be seen….

A Cry-no-more strap on pacifier:

A head-napkin (to help hunters remain camouflaged)":

Insect balls (to keep the insects away while you are outside):

Totally Absurd Inventions & Patents, America's Goofiest Patents

Are you feeling stuck? Exit strategies

2009-07-11T10:16:00.001-04:00

Whenever I teach an entrepreneurship class, I typically end up spending at least one day talking about exit strategies.

There is a good outline and video offered by PBS Small Business School that outlines the following options for exiting your business:

1. Walk away

2. Give it away

3. Sell to someone close to you

4. Sell to someone like you

5. Sell to the highest bidder

6. Sell to your employees

7. Sell through a direct public offering

8. Sell into the private equity capital market

I have always found the first option of “walk away” the hardest to believe, but yet it is also the most frequent option taken by entrepreneurs. My guess is that for many of these entrepreneurs, their business is their job and highly dependent upon them. So, if they leave, so does their business.

The rest of the options involve passing along the business to someone else, typically and hopefully for a fee/profit. However, the whole crux of these options is that your business needs to be able to be passed along. This is harder said than done.

I recently was assessing the real estate and property management business that my husband and I started. Even if we wanted to exit, we are not quite at a point where we are able to sell it. Why? For starters, we have been rapidly growing over the past few years. Thus, processes are continuously being revamped, including our accounting procedures. This makes it more difficult to look back at the historical financials and have it understandable. We also have a complex assortment of legal entities. We need to figure out the best and appropriate way to manage the transactions between the entities and also have some historical financials that make sense. If someone were to purchase the company, some of the job/roles are dependent upon us and not easily transferable. For example, my husband has a buying network that he has built over the years. Not anyone can simply buy the business and take his place.

We have been making progress though, with the end goal in mind of being able to sell the business someday or at least delegating the tasks with less involvement on our part. We have begun to outline and document procedures, even those my husband partakes in. This is perhaps the most important task because even if we do not sell the business, it allows us to delegate the tasks and not be at a total loss should an employee leave. We are transitioning to an industry standard software for managing our real estate, with the intent of being able to better analyze the business. We are hiring good quality people and writing up their job descriptions.

And while I feel sort of stuck right now in that we do not even have the option of exiting our business…in due time we will be there.

Entrepreneur Oasis

2009-05-11T20:54:00.001-04:00

Here is a new resource for all those wanna-be entrepreneurs, existing entrepreneurs, and educators. It will take a while for this web resource to reach its full potential, but it definitely has promise as an up and coming website.

Time to buy?

2009-04-27T11:37:00.001-04:00

Entrepreneurship involves discovering and exploiting opportunities. In many cases, this involves the start-up of a new business entity. However, entrepreneurship can also involve acquiring a business. In the current economic times, many businesses are being put to the test, and in some cases, not doing so well. This can equate to a great opportunity for someone to come in and take over an existing business with a fresh perspective, strategy and resources.

A recent question posted to BusinessWeek addresses how to buy a struggling company. The key takeaways…Many businesses are available at bargain prices, but be cautious – do your due diligence!!!

One way to identify struggling business is through a certified business broker. However, another more fruitful option is via word-of-mouth (use your networks!). One last suggestion is to be creative --- for instance, you could offer to come on board for free in exchange for a share of the ownership. Or, you could offer to purchase a failing division of the business (not the business in entirety). Don’t be afraid to approach a business owner, but do be respectful as there are many emotions that are associated with running a successful and failing business.

Link for full article: How to Buy a Struggling Company - BusinessWeek

Libraries: An invaluable tool for entrepreneurs

2009-04-15T09:32:00.001-04:00

When is the last time you have gone to the library?

As an entrepreneur, or a wanna-be entrepreneur, libraries represent an invaluable tool that I fully endorse. Here are just a few reasons why:

Quiet place to think and fully concentrate on your business plan
Free access to computers, programs and the Internet
Free access to a wealth of knowledge via the librarians (really, they are geniuses that can help you find out nearly ANY piece of information that you need)
Free access to journals and other documents (that can otherwise be quite costly) that can help provide much needed insight into your market and industry
If your library doesn’t have the documents you need, they can usually access them from another library for you
From home, you can still usually access many of the electronic tools
From home, you can also typically submit a research question/request to the librarian that they’ll work on for you

As this week is deemed National Library Week, I encourage you to reconsider what your local library can do for you today!

Recession Strategies: Cut costs or increase sales?

2009-03-25T10:44:00.001-04:00

A recent article published by Scott Latham in the Journal of Small Business Management examined how firms react to a recession. Their study of 137 software firms during the previous economic downturn in 2001-2003 suggests that start-up firms are more apt to focus on increasing sales and other revenue-generating strategies to make it through the touch times. However, larger firms tend to instead focus on cost reductions.

I find this pretty interesting as when I look around at what is happening right now – I am continuously hearing about all the layoffs at the large corporations and yet, many of the smaller businesses are frantically trying to get a bigger piece of the pie in order to make it through.

So, it seems to be an accurate depiction of what is happening in the real world. However, the real question, though, is ‘should it be happening?’ For instance, should small businesses be focusing solely on revenue-generating strategies? Should large businesses solely be cutting costs?

Thinking Entrepreneurially...in a social way

2009-03-18T21:36:00.001-04:00

I recently read that the Salvation Army had increased their Red Kettle donations by 10% in 2008, DESPITE the fact that the retailers suffered one of their worst years. How were they able to do this? By thinking and acting entrepreneurially.

The increased donations were the result of (a) increased partnership with Wal-Mart and the NHL, (2) using 'cashless kettle' that accepted credit card donations and (3) a text messaging service that allowed contributions via telephone bills. What neat ideas! These are three creative ways in which the Salvation Army thought 'outside of the box' in order to increase their revenue.

It is my hope that the many non-profits as well as for-profits are able to maneuver their way through this difficult time economically by doing the same.

Competing with the Big Box Retailers: Yes, it is possible

2009-03-02T22:52:00.001-05:00

Today on the radio, I listened to a talk-radio host make the arguments that entrepreneurs are unable to compete with the big box stores such as Wal-Mart. This is nothing new -- as I hear this argument frequently. This always intrigues me -- as I see Wal-Mart as a positive.

First, Wal-Mart (like any other big business) was started by an entrepreneur and we can learn a lot from Mr. Walton.

Second, Wal-Mart offers consumers convenience and lower prices through their economies of scale. Yes, this benefit also applies to all the people living in small town America where Wal-Mart is supposedly ousting all the existing small businesses. I know I appreciate this.

Third, Wal-Mart makes the market more efficient. Sure, many small businesses go under that are no longer able to offer any competitive advantage. But, the real entrepreneurs will simply respond to this change and find a new way to compete.

And, yes, it is easier than you think to compete with Wal-Mart. You just need to think strategically, and think either a low price OR a premium product niche! Here are some examples:

Diapers.com -- They specialize in diapers and other baby products. They match the prices for diapers with the big box retailers and even offer free shipping on orders over $49. They are able to do this by focusing on a niche and not having to spend the big bucks on a retail outlet.

Whole Foods -- Although they offer grocery items just like the Super Wal-Mart, they are able to compete and bring in customers by focusing in on more organic and specialty items.

Reading Recommendations

2009-02-24T20:57:00.001-05:00

I am very much an advocate of learning, no matter what the age and no matter where you are in your career. Of course, we all have limited time and the question then becomes -- what should we be reading?

Jack Covert and Todd Sattersten have recently put "The 100 Best" book where they highlight what they feel are the best 100 books to read whether you are a CEO or just entering the business arena. What I like about their book is the classification of books by subject area. For example, here are the books that they feel are notable under the topical area of entrepreneurship:

The Art of the Start by Guy Kawasaki
The E-Myth Revisited by Michael E. Gerber
The Republic of Tea ** by Mel Ziegler, Patricia Ziegler, and Bill Rosenzweig
The Partnership Charter by David Gage
Growing a Business by Paul Hawken
Guerrilla Marketing by Jay Conrad Levinson
The Monk and the Riddle Randy Komisar with Kent Lineback

Happy reading!

Youth Entrepreneurship - the key to economic recovery?

2009-02-17T21:19:00.001-05:00

At the World Economic Forum in Switzerland, a panel argued that are key to economic recovery relies on incorporating the teaching of entrepreneurship into the K-12 education system. Pretty interesting huh? I guess starting out young has its benefits.

http://blogs.wsj.com/independentstreet/2009/02/17/teaching-entrepreneurship-in-grade-schools/

Layoffs, Layoffs, Layoffs: The Implications?

2009-01-31T18:03:00.000-05:00

In January 2009, there were over 1,300 layoff stories reported by the Layoff Daily. Pretty scary, huh? It makes me wonder what the implications are for entrepreneurs.

There are likely going to be some entrepreneurs that find their way into this category -- meaning that they simply are not strong enough to survive in this economy and/or the ability of their customer base to purchase their product/service is dissipating.

Other entrepreneurs will survive and perhaps even thrive in this economy. There are certain sectors or niches that do well in a down economy (think about Walmart) and others that are effective at changing to meet the demand/needs.

Yet, interestingly enough, there are still others that will become entrepreneurs BECAUSE of the economy. Yes, these are those individuals that are in the stories of the Layoff Daily and will turn to entrepreneurship because they don't have any other option or because it is something they have considered for a while, but now have the push to take.

Credit Crunch?

2008-12-17T11:27:00.001-05:00

With the current condition of the economy, everyone seems to be concerned about the ability (or rather inability) to obtain credit. As entrepreneurship fuels the economy, this could potentially be a rather grave concern if entrepreneurs are unable to obtain credit to grow their companies.

However, although a recent survey by Wells Fargo indicates that optimism is low for entrepreneurs, "four out of five small business owners said they did not perceive credit as difficult to obtain."

Why is credit not that big of a concern for entrepreneurs? My guess is that entrepreneurs have learned to persevere and find a creative way to get things done no matter what. The bar can also be relatively high in order to go the traditional credit route via a bank. It typically requires an entrepreneur to think thorough the business opportunity, prepare a business plan and financial projections. These projections must be realistic and believable enough to convince a lender to take on the risk of the loan. Thus, entrepreneurs have likely found a few different options to get the financing they need, and if financing isn't available, they find another way to get through the situation.

That said, even if credit is not the main concern of entrepreneurs, how the economic conditions impacts their ability to sell their product/service obviously is. Unfortunately, there is no real quick fix here.

Going Green

2008-12-08T08:51:00.001-05:00

I read an article this morning on how some larger companies are going green (attempting to be more environmentally friendly in highly visible ways) in order to attract not only customers...but employees! With the rise of the creative class, some highly desirable employees are being a bit choosier about the kinds of companies they work for. They want to work in an environment where they know they are making a difference.

If you are a start-up company and want to be competitive, there is further motivation for going green. Not sure how? For starters, you should at a minimum...

Recycling in the office
Using eco-friendly suppliers
Go digital (reduce paper consumption)
Offer carpooling and/or working from home
Use energy-efficient light bulbs

Visit www.evo.com for some additional ideas.

More Freebies

2008-11-12T13:40:00.001-05:00

Last month I blogged about the many free online resources that are available. Well...here is another website to check out -- a directly of free online resources!!!

TheFreeSite.com even has a section dedicated just to business-related freebies. Some of these include free press releases, a free online storefront, and free template for business cards.

Some of the other, interesting freebies pertain to Internet access, web space, and webmaster tools.

Like anything that is offered for free, do make sure you read the fine print!

Creative Marketing?

2008-11-11T15:14:00.001-05:00

I am expecting our third child in early January and we are waiting to find out if the baby is a he or a she. While I was shopping the other day in a shoe store, a vibrant lady came up to me and told me that she was 100% confident that I was going to have a boy. She went on to chat about how she is always right about these things and that I should call her after I have the baby to confirm that she is right. Miss Sherrie (as she likes to be called) then went on to tell me that she is a professional psychic.

Afterwards, I got to thinking -- wasn't that a creative marketing ploy on her behalf? Miss Sherrie has a 50-50 chance on getting the gender of the baby correct (although perhaps her psychic abilities increase that chance....haha). For those that she does guess correctly, they then have her phone number and are probably more likely to call her up to find out what else she knows!

Setting Yourself Apart

2008-11-10T09:08:00.001-05:00

Some industries are more competitive than others and to the average consumer, it is hard to tell some of the business within those industries apart. Think about the dry cleaners, book store, coffee shop, gas station or even hotels. They all pretty much offer the same product/service as their competitor.

This weekend, I was traveling and had to select a hotel. I went online and in the mid-price level, the hotels all looked pretty much the same -- the rates were within $10 of each other, they all offered a complimentary breakfast, pool, high-speed Internet, etc. I ended up settling on the Country Inn & Suites, just because I hadn't been there in a while.

When I arrived, something really stood out to me that I hadn't seen before at a hotel - their Lending Library program. In the bookshelves surrounding the fireplace in the lobby, they had books available that were geared towards all ages. A simple sign explained that you were welcome to pick a book to read, and if you didn't finish it during your stay, go ahead and take it with you and just return it the next time you visit a Country Inn & Suites. What a nice idea!

This program probably doesn't cost a fortune, but it was a nice surprise that I will remember - and for me, will separate this particular hotel from the mass of other hotels in the mid-level price range.

As an entrepreneur, this is exactly how you need to think. Your mainstream product/service has to be competitive, but then try and look to see how you can offer a unique perk or something unexpected that the customer will take away from their experience.

Free Online Resources: It is just a matter of looking

2008-10-30T08:22:00.001-04:00

One of the things that I enjoyed about doing market research is that, 9 out of 10 times, the information was out there -- it was just a matter of finding it. That meant doing some exhaustive web searching or going to the library to talk with the librarians (who are in my mind extremely brilliant and knowledgeable).

I have since come to realize the same thing when looking for web applications. If there is some sort of online service that you want, more often than not, it is already being produced and out there. And, many times, those applications are free. This is great news for the bootstrapping entrepreneur that is trying to save a dime or two.

In the coming months, I will attempt to periodically profile some of the applications that I think are useful. And, I'll start with a few right now that might surprise you.

Launched in 2000, the intent of localendar.com is to provide people with access to public events. This is accomplished by giving away free web-based calendars. From an entrepreneurial standpoint, I am not that interested in publicizing my events through their website -- but I am very interested in providing an interactive calendar on my website where my customers / suppliers can see what is going on. What I like about this application (besides it being free) is that it is easy to update on their website and then I can incorporate it into my own website by either providing a link or embedding it as an actual interactive calendar.

Listserves are another great resource for any small business. It allows users to subscribe to your mailing list, and then you can correspond with news, updates or promotions. Our business has historically used this service via godaddy.com, and it has worked well for us - and I do appreciate the extra graphic options that it provides. However, I have also come across some free applications for listserves (with unlimited usage) that I am now using for another organization and recommend you consider. The free application I used is Mailman, and is definitely worth checking out.

By now, craigslist.com is starting to become a household name of sorts! But, think of it from an entrepreneur's perspective -- what a great way to advertise (FOR FREE) your products and services, or your employment needs.

A family member recently referred me to scrapblog.com. For some businesses, creating a scrapblog of sorts may be a good marketing tool or a good way to showcase some of your products. However, I found it to be helpful for other reasons. Specifically, I found it very helpful and user friendly to create a customized website header (and saves you the cost of purchasing a photo editing software and in my mind, is much easier to work with). It is also helpful from a marketing standpoint to create customized, professional looks to help with your marketing material.

On a marketing note, the new HP Creative Studio is also pretty neat. It is an online application that allows you to create business cards, logos, flyers, brochures, websites and more. They do charge for some of their higher level services, but also offer free templates for the cash strapped small business owner.

If you have come across any free online resources that you feel are particularly helpful, feel free to let us know!

Podcasts: Learning on the Go

2008-10-29T11:16:00.001-04:00

A colleague recently shared with me that she frequently downloads podcasts (for free) from iTunes in order to keep up to date on the latest business news while she is on the go. They can be played on either your iPod or your computer. After taking a look at iTunes, I was quite impressed as they literally have 1000's of free podcasts available for download.

Within the 'business' category of available podcasts, the top 10 audio podcasts include:

1. NPR: Planet Money Broadcast

2. The Dave Ramsey Show - The Truth about Life and Money

3. Wall Street Journal This Morning

4. APM - Marketplace

5. Bloomberg on the Economy

6. World Business News

7. Harvard Business Ideacast

8. Get-it-done Guy's Quick and Dirty Tips to work Less and do More

9. Wall Street Journal's What's News

10. Bloomberg Economics

There are also many podcasts available that pertain specifically to entrepreneurship. By far, the most popular downloaded podcast was Rich Dad's Podcast by Robert Kiyosaki (who I have recommended previously on this blog). Overall, there were 86 podcasts that came up in a search on the word 'entrepreneur.'

Regardless of whether or not you are an entrepreneur, one of the keys to being successful in life in constant learning.

The Economics of Pumpkins

2008-10-25T15:49:00.001-04:00

I just returned from a local pumpkin farm with my family -- and I must say first off that I was very impressed with the entire experience. It is only open on weekends in Sept/Oct, so I wasn't expecting a whole lot of infrastructure, but I was wrong. There were so many activities and it all looked brand new (although I know it has been there for a while). It exceeded my expectations to say the least.

They really have a great business concept. It is marketed to families during the day and they get a lot of youth groups and teenagers in the evenings as they are open until 10 pm. They have activities that appeal both to families (pony rides, corn sand box, bouncy barn, farm animals, etc.) and teenagers (corn maze, fire pit, hay rides, etc.). Everything was high quality and the workers (likely family and friends) held a sense of pride and happiness. Perhaps that is because it is only only 7 weekends out of the year, and there isn't necessarily a drainage of energy. It is surrounded by gardens of beautiful sunflowers. Most surprising was that there prices were reasonable. And, did I mention that it is in the middle of nowhere?

And...of course...I began to wonder about the economics of this little (or not so little) pumpkins. One of the workers mentioned that they bring in 4000-5000 visitors a weekend. So, if we average this to 4,500 over 7 weekends, this brings us to an estimated 31,500 visitors. We spent $40 for our family of 4 (including our 5 pumpkins), averaging $10 per person. This is probably a pretty conservative average spending considering that while we purchased a few snacks, we did not have lunch there and our two girls were under 5 and got in free. But still, 31,500 visitors at $10 per visitor comes to $315,000 for the season. Not bad, huh?

After doing a bit more research, I found out that the owner is an out-of-town lawyer that spends his weekends working on this ranch and donates a portion to charities every year. What a nice ending. I'm definitely happy for this entrepreneur -- for providing a great product in a great way that I hope to return to year after year.

The Executive Summary

2008-09-27T13:42:00.001-04:00

A colleague recently passed along a link to me of some 'tools for entrepreneurs' on a website for CID Capital. As CID Capital is a venture capital firm, they frequently review business plans and are very familiar with what to look for to critique whether or not a new venture is likely to be successful.

One of the tools that I believe is especially helpful is their executive summary outline that they require entrepreneurs to submit so that they can determine if it is something worth further pursuing with them. What is an executive summary? Well, it is a shortened version of the business plan, typically only a couple of pages long. It is a very useful tool for enabling investors, such as venture capitalists, bankers or friends & family, to be able to quickly get their arms about what it is you are trying to do -- and then determine if it is a good fit for them.

Although many business plan courses recommend that you write the executive summary last, after you have completed writing your business, I believe there is some value in starting with the executive summary. It helps you get your thoughts down on paper and forced you to be concise and really think through it all on a bigger level right away. You can also use this executive summary to get some feedback on the idea from people you trust before moving forward.

So, if you are a start-up or even a more mature venture, I strongly encourage you to check out the executive summary outline provided by CID Capital and/or one posted elsewhere.

Steps for Starting a Business

2008-09-17T14:02:00.001-04:00

Recently, I've been searching online for potential web resources that outline the steps for starting a business. This would be helpful for someone that wants to start their own business, but isn't sure where exactly to start or what to do. Most people, in my experience, are especially anxious about the paperwork and legality side of a business -- as they usually have the business idea down pretty well.

One of the better "steps" that I found was by startupnation.com, which included the following:

Create a Life Plan
Choosing a Business Model
Create a Business Plan
Select a Business Structure
Create Key Business Assets
Find the Funding
Organize Logistics
Find Great People
Establish the Brand
Market and Sell

I liked these steps because it starts out with creating a life plan, which I firmly believe in. You don't start a business just for the heck of it, it needs to fit into your life strategy. I think it is also pretty realistic in the sequence of starting a business. They offer much more detail after every step -- providing the wanna-be entrepreneur with the guidance he/she needs.

The Small Business Planner put out by the SBA is also pretty good as they focus on what is needed not only to start up the business, but also grow and eventually exit the business. They offer a specific set of steps within each of the four categories below.

Plan your business
Start your business
Manage your business
Getting out

Building on my previous post about looking for local websites when doing market research, a last source for identifying the steps for starting a business should be a local government website -- depending upon whatever state you live in. As a whole, these websites are not (in my opinion) that great for offering an overall sense of what it takes to get your business started, but they are especially useful in providing you with the paperwork and bureaucracy that needs to be taken care of. As an example, the State of Illinois offers a step-by-step process with links embedded to all the necessary government forms.

Information Overload

2008-09-09T11:33:00.001-04:00

The good thing about the Internet is that it makes an enormous amount of information available at your fingertips.

The bad thing about the Internet is that it makes an enormous amount of information available at your fingertips. It is like going to Wal-mart to buy toothpaste and feeling a bit overwhelmed at ALL the many different kinds and choices you have -- when all you wanted to buy was just some ordinary toothpaste!

The real question then becomes -- how can you maneuver online to find good and useful information for the purposes of starting your own business? Here are just a few suggestions...

- Trade Association websites: One of the first places to look should nearly always be a trade association website. Most industries have trade associations (i.e. National Restaurant Association) and they can be a wealth of statistics, knowledge and trends -- that can very well impact the development of your business idea. To find your trade association, simply do a google search of the words 'trade association' and whatever industry it is you are entering.

- Find websites 'close to home'. For instance, if you are looking to start a business in the state of Illinois, you might look to the Illinois guide (sponsored by the state government) that includes details specific to that state. Also, check out your local Small Business Development Center or economic development corporation. It is a good place to look for local grant and loan programs that may be of help.

- Entrepreneurship-related magazines: There are many magazines geared to entrepreneurship that have a lot of up-to-date statistics, articles and help by topic that can also be a good starting point. One of my favorites is Entrepreneur Magazine.

- Try the SBA: The U.S. Small Business Administration actually has quite a bit of good, basis information to start with. Check out their small business planner.

- Get some referrals: Pick up the phone or go talk with people to find out what websites they recommend. Word of mouth is usually a great source!

How do you sift through all the information on the web?

Web Resources: DocStoc

2008-08-31T21:06:00.001-04:00

A while back, I was referred to a website called 'DocStock.' Here are the main benefits:

(1) Find Documents

- Download legal, business, tech & educational documents

- Store your documents online for free

- Get your documents indexed by search engines

(2) Share Documents

- Upload and share your documents with the world

- Get business leads by sharing your documents

- Embed documents on your blogs and websites

I was a little skeptical at first, but then I gave it a chance and browsed around. I personally have always thought that it is easier to start with an existing template instead of starting from scratch. The types of documents available under the business category include biz planning, contracts, employment, financing, job descriptions, operations, project management, sales and marketing, and Spanish press releases. Hmmmm....ALL the kind of stuff an entrepreneur needs to do to actually get the business up and running.

If you are looking for some help with putting together a business plan, for instance, they have over 3000 documents on this topic alone - and that are further segmented by due diligence, executive summary, Internet start-ups, Market research and sample business plans! I also appreciate the fact that you can also choose to view the most viewed, downloaded, reviewed, recent and/or highest rated.

Now, keep in mind that some of this is more or less junk and useless. You also have to beware that their is nothing backing the actual quality of the documents, But, that said, there is a lot here that as an entrepreneur I believe you will find of use. Don't reinvent the wheel (or shell out a lot of big bucks) unless you have to.

Customer service: Is it overrated?

2008-08-13T15:01:00.001-04:00

Have you visited Taco Bell lately? At least in the area where I live, if you pull up to the drive-thru, you will be asked "how are you today?" As I was expecting the typical "how can I help you today" or "go ahead with your order whenever you are ready", this surprised me a bit. So I answered, "fine, thank you."

However, the experience again began to impress me in that the reason why franchises in general are successful are because they can create processes for everything! Yes, they can create processes for their food preparation, and although I personally believe that franchise food is marginal at best, people go there because they always know exactly what to expect. However, the more fascinating aspect is that processes can be created for other aspects of the business such as accounting procedures, order intake, cleanliness procedures, etc, and in the case of Taco Bell, customer service. I have not researched it at all, but I am fairly certain that the Taco Bell drive thru workers are specifically training in how to address the customers. This makes it easy for the franchise owners to ensure a certain level of customer service every time!

What can YOU learn from this? Well, even if you are not interested in owning or operating a franchise, you can learn from them by creating processes for every aspect of YOUR business. In turn, this will not only allow your customers to know exactly what to expect and improve your reliability, but it will also help your business to run more smoothly.

A great book to check out that talks more about the critical importance of processes and imitating what franchises do well is The Emyth Revisited by Michael Gerber.

Integrating entrepreneurship into your every day life

2008-07-14T14:42:00.001-04:00

I recently visited some friends that work for themselves as construction contractors. Their business is small (just the husband and wife team for the most part) and they live modestly. When I pulled into their driveway, there were flowers blooming all around their home that took my breath away - hundreds of lilies in almost any color, hostas everywhere and quite a few other flowers that I do not know their names. When they moved into the house three years ago, there was not a single flower there. You see, flowers were their passion and starting the following summer, their plan was to start selling them.

We then went inside their home where their dog had eight puppies that were just two weeks old - my daughter did not want to leave them! I then learned that this particular breed of puppies would sell for over $200 a piece, and that was their plan once the puppies were old enough.

I left thinking about how entrepreneurial they were with their passions and their every day life -- and how smart they were to be able to find a way fund their passions and bring in a little more money while doing so. I learned first hand that entrepreneurship doesn't always mean writing long business plans and integrating cutting edge technology - it can also mean simply being smart and creative - or entrepreneurial - with how you live your life.

Do non-profits need social media?

2008-07-14T13:57:00.001-04:00

If you are an entrepreneurial non-profit, or wish to be, some of the questions that you might be wondering is (a) what social media applications are appropriate? and (b) how should I integrate them?

Like for-profits, I suggest starting with a bit of market research. See what your 'competitor' non-profits are doing, or perhaps better stated, what other best practices are out there that you can learn from. If someone else is doing it, it makes much more sense to take what they have done and customize it to your specific needs/preferences. A website that was recently referred by the Church of the Customer blog is the "Association Social Media WiKi." Although the number of associations that have registered to date is not huge, you can definitely pick something that is relatively close to your industry and see what social media venues it is using and check them out. A great start.

Assumptions versus Knowledge

2008-07-10T11:49:00.001-04:00

One of my favorite quotes is that new ventures have a 'high ratio of assumption to knowledge' (McGrath & MacMillan, 1995, p. 4). Essentially, when you start a business, you are relying on a huge pile of assumptions. Take the business plan, for instance. It is an important tool that I highly recommend, but it is based almost completely upon assumptions such as what price you think you can charge, how you think the customers/competitors will react, the sales you think you can get, etc. You will likely get financing if your assumptions appear believable, but it is still not a guarantee of success.

As a business grows, however, this ratio of assumption to knowledge should change. You will get customer feedback regarding your prices and products/services. You will see how your competitors react. You will find out how much sales you can actually build. Then, if you are going to be successful, you integrate this knowledge into your working business plan to reduce your reliance on all those unknown assumptions.

As I am writing this blog, I am sitting here at my favorite coffee shop and just finished a conversation with the owner. (By the way, if you ever get to Linton, IN, you have to look up Francisco de Borja!!!) They are in their second year of business and he described their experience thus far as a roller coaster as they try to figure out what works and doesn't work for their business. One example he gave me was their pastry cases, they realized that customers are more apt to purchase pastries if they are on the counter where they can see it and help themselves rather than in the case. I've also noticed that they have modified what they sell for lunch and also what they sell retail.

What I admire about their business is that they are willing and open to taking in new knowledge and integrating it to produce a more successful business. Other businesses can get stuck on that initial business plan (based entirely on assumptions) and don't take the opportunity to adapt and grow into a mature business with the new knowledge being given.

What to read?

2008-07-09T14:18:00.001-04:00

While there are many, many books related to entrepreneurship out there, an author that I would recommend is Robert Kiyosaki. He has not only authored many top selling books, but also produced games, programs and coaching to help get his point across and that provide in my opinion a valuable educational service. His focus is primarily financial, and this has everything to do with YOU and/or how YOU view the financial aspect of your business.

I was initially turned off by the wording of his best selling book Rich Dad Poor Dad, as my goal in life is not to be rich. However, after giving it some thought, I strongly agreed that I would rather be efficient and smart with my resources than foolish and wasteful.

To give you a taste of Koyosaki's philosophy, here is a table that he uses to describe his 'poor dad versus rich dad' comparison:

Poor Dad vs. Rich Dad


	My Poor Dad Says		My Rich Dad Says

	"My house is an asset."		"My house is a liability."

	Rich dad says, "If you stop working today, an asset puts money in your pocket and a liability takes money from your pocket. Too often people call liabilities assets. It's important to know the difference between the two.

	"I can't afford it."		"How can I afford it?"

	The statement "I can't afford it" shuts down your thinking. By asking the right question, you mind opens up and looks for answers.

	"The reason I'm not rich is because I have you kids."		"The reason I must be rich is because I have you kids."

	"I'm not interested in money."		"Money is power."

	"When it comes to money, play it safe - don't take risks."		"Learn how to manage risk."

	"Pay myself last."		"Pay myself first."

	Rich Dad always took a percentage off the top of any income he earned. He put this money into an investment account that went toward purchasing his assets. Poor Dad spent all his money first and never had any remaining for investments.

	Believed that the company you worked for or the government should take care of your financial needs.		Believed in financial self-reliance and financial responsibility.

	Focused only on academic literacy.		Focused on financial literacy as well as academic literacy.

	Learned only the vocabulary of academia.		Learned the vocabulary of finance – "Your words are the most valuable tools you have."

	"I work for my money."		"My money works for me."

	Thought that making more money would solve his financial problem.		Knew that financial education was the answer to his financial problems: "It's not how much money you make that's important – it's how much money you keep and how long you keep it."

You can learn more about Robert Kiyosaki and the products/services he offers by visiting his website. If you are familiar with this series, let me know what you think.

Small Business Development Centers (SBDC)

2008-06-27T07:49:00.001-04:00

If you want to start your own business and need some help, and are located in the U.S., I encourage you to start with your local small business development center (SBDC). What is an SBDC? As described on the U.S. Small Business Administration's (SBA) website:

SBDCs offer one-stop assistance to individuals and small businesses by providing a wide variety of information and guidance in central and easily accessible branch locations. The program is a cooperative effort of the private sector, the educational community and federal, state and local governments and is an integral component of Entrepreneurial Development's network of training and counseling services.

The services do tend to vary from SBDC to SBDC, but I have found that the quality is good and it can be an affordable start to receiving some training and one-on-one counseling for your business idea. Another advantage of starting the entrepreneurial process with your local SBDC is that they have a great knowledge base of the local entrepreneurial resources that you can tap into - both within and outside their organization.

Use the SBDC Locater on the SBA's website in order to fine an SBDC close to you.

It's all how you view it

2008-06-21T20:05:00.001-04:00

In a recent article by the Greene County Daily World, there is a great example of an entrepreneur that is alert to opportunities:

Many area farmers are taking a financial hit from the recent floods.

But Sawyer Sparks, a young entrepreneur from rural Bloomfield who is a third-year agriculture economics student at Purdue University, says he's got a viable alternative to re-planting washed out corn and soybeans.

Sunflowers.

Sparks owns a local company called BioGreene -- which started in 2007.

Its major product is sunflowers.

He contends there is still plenty of time to plant and have hopes to salvage something from this year's damaged crop season.

"Some sunflowers have a growing period of 80-90 days, which would give plenty of time to mature in time for harvest," Sparks said this week.

When everyone else is talking about the flooding disasters across the Midwest, here is someone that is viewing the situation a bit differently and thinking entrepreneurially about what opportunities might exist. That is a true sign of an entrepreneur!

For the full story, go to: Greene County Daily World: Story: Bloomfield grad offers alternatives for farmers and youngsters

How entrepreneurial are you?

2008-06-18T16:26:00.001-04:00

The term entrepreneurship is thrown around quite a bit in the media today, but have you ever wondered how entrepreneurial YOU are?

To answer that question, we must first define what it means to be entrepreneurial. According to academic research in this area (see Lumkin & Dess, 1996), being entrepreneurial consists of the following attributes:

Autonomy
Innovativeness
Risk-taking
Proactiveness
Competitive Aggressiveness

Thus, to assess how entrepreneurial you are, you need to determine how autonomous, innovative, risk-taking, proactive and competitive you are.

(On a side note, when you are more entrepreneurial, research also suggests that you are likely to perform better.)

Last year, I attended a speaker event by Michael Morris of Syracuse University. One of the points he was trying to get across is that there are many ways to be entrepreneurial. In addition to starting your own business, you can be entrepreneurial in the corporate environment, as a student, in the government (yes, really!), as a parent, in your church, non-profits, etc. Let's take the example of a student. In order to be entrepreneurial as a student, this could mean being more proactive in figuring out what you want to do, being more aggressive in trying to get scholarships, being innovative in designing a major or selecting double major combinations, being autonomous in your college decision, and perhaps risk-taking in trying out something new.

So, in what areas of your life are you most entrepreneurial?

Are you prepared?

2008-06-12T08:42:00.001-04:00

Like other parts in the Midwest, southern Indiana where I live has recently experienced a tremendous amount of flooding. Several properties that we own are completely flooded. We also lost power for several days, which meant that we did not have access to the Internet and could not operate our business as normal. Multiple roads were flooded, which meant that we could not always go where we needed to go. We are still without phone service.

The question I pose today is the following: As a business owner, are you prepared for the unexpected? What happens if your physical business building or any of your other properties are flooded? What if your computer system gets zapped by lightening? Do you have a backup? What if your business burns to the ground? What if you or a key employee dies? What if the area you live in is hit by a hurricane? What if there is another terrorist attack? These are all viable circumstances out of your control that could dramatically affect your business.

Although you cannot control many of these external circumstances, you can control how are able to respond to them. For instance, you can purchase insurance. You can backup your data regularly and/or utilize web storage to have continuous access. You can document all the job duties and tasks so that it is easier to replace key employees if need be. You can have an succession plan. You can have a plan for what to do should your business need to be evacuated. You can be flexible and think creatively how to respond.

How else might you prepare for the unexpected?

You are never too young to be an entrepreneur!

2008-06-11T19:47:00.001-04:00

I grew up in family-owned business. When I was younger, I also babysat, mowed lawns for extra money, sold cards, had a lemonade stand (well, once, it didn't go over that well) and probably did a few other "business ventures" that don't come to mind right now. Yet, I don't think that I was ever actually exposed to the concept of 'entrepreneurship' until college.

Today, there are not only a growing number of college entrepreneurship programs, but many targeted to schools and youth. Here are just a few:

If you are under the age of 18 and/or interact with anyone within this age group, no matter how young, there are many advantages of helping expose the entrepreneurial side in them. First, you are enabling them to build valuable skills (money handling, sales, people skills, etc.) that could be used later on in life. You are also teaching them how to be self-sufficient. Let's face it, not everyone is made for the corporate world. Last, you can help build confidence and give them something positive to focus on.

I used to work with an organization called The Institute for Entrepreneurship, where I helped administer a grant fund for kids/teachers and helped with their annual youth entrepreneurship conference. It was a simply amazing and inspiring experience -- you might be amazed at the potential in our young people.

2008 Mother of Invention

2008-05-30T16:38:00.001-04:00

Whirlpool knows moms are identifying challenges and coming up with creative solutions every day. To recognize this motherly ingenuity, the 2008 Whirlpool® Brand Mother of Invention Grant will provide winning moms with the necessary business resources to help bring their ideas to life.

The deadline is July 31st and grants range from $5-20K. Good luck!

Foreclosures

2008-05-27T10:23:00.001-04:00

In the media today, we are hearing more about concerns with the economy and the increased number of foreclosures. Now, this can be pretty depressing. However, if you start to think entrepreneurially, you can see that there are two sides to everything. And, yes, in a down market such as ours today, many opportunities still exist. It just depends on how you look at it.

My husband and I own a real estate business, Renewing Properties, that specializes in acquiring foreclosure properties and then selling them on a lease-to-own program. And, to let you in on a little secret, the business is thriving in today's economy! Why? Well, there are many more foreclosure deals to find. And, secondly, there are many more potential home buyers that are facing difficulty in obtaining a traditional mortgage and/or prefer a lease-to-own program as it helps them build up equity.

Can you think of any other opportunities that exist because of the state of the economy? What about staffing services that can help corporations outsource or help employees for plants that are shutting down? What about entrepreneurial training and consulting services as many individuals may in turn consider starting their own business if they lose their job? What about check-to-cash businesses? Discount retail outlets (as Americans start to become more price conscious again)? Bus services and/or technological services that enables communication without having to drive somewhere (and thus saving gas)?

Just start thinking --- and I assure you that the ideas will start to flow!

Selling Options

2008-05-19T17:41:00.002-04:00

Have you ever noticed that sales people are among the most highest paid within many organizations? The reason is fairly simple: selling is crucial AND difficult to master. As a new business, one of the first decisions you need to make is your selling strategy and which route(s) make most sense to pursue.

SmallBusiness.com outlines the following different options:

Direct Sales: involving face-to-face contact

retail or consumer
door-to-door or traveling salesman
party plan

Industrial/Professional Sales: selling from one business to another

business-to-business

Indirect: human-mediated but with indirect contact

telemarketing or telesales
mail-order

Electronic

web B2B, B2C
EDI

Agency-based

consignment
multi-level marketing
sales agents (real estate, manufacturing)

When you are developing your sales strategy, it is helpful to see what avenues your competitors are taking. However, it sometimes can give you a competitive edge to go against the norm. A good example is Cabi, a custom-designed clothing line for women formed in 2001. Instead of selling the traditional way via retail stores, Cabi sells exclusively through home-based consultants (i.e. the Tupperware way) and appears to be very successful thus far!

Commercializing your new product

2008-05-14T09:47:00.001-04:00

Coming up with a new idea is an essential part of the entrepreneurial process, but that idea alone will not turn you into a successful entrepreneur. Sometimes I even think that coming up with the idea is the easy part, and that turning an idea into a business is really the hard part. VentureNet Iowa is a new organization that is dedicated to helping Iowans in the commercialization process. Their model below is a great representation of the many key questions that need to be asked throughout this process.

In my experience, I have found that individuals tend to have specialized knowledge in different aspects of this model. For instance, you might have an inventor or an engineer that is great at coming up with ideas, but they might not have that much knowledge of the marketability or how to write a business plan, or vice versa. The answer it to know where your strengths lie and then surround yourself by people that can help you. This is valid for both independent entrepreneurs as well as corporate entrepreneurs. Before pursuing my Ph.D., I worked for Brady Corporation and at the time they were spending a significant amount of time and effort to create teams across the product/market/business arenas as they knew it would enhance their ability to better commercialize products successfully.

Many thanks to my former student and respected colleague, Cris Grunewald, for passing this model along.

Six Degrees of Separation & Facebook

2008-05-13T06:50:00.001-04:00

A while back, I discussed the importance of networking and how we are all closely connected to the resources we need to start a business - it is just a matter of finding out who knows who and utilizing those connections.

I recently received an invitation from a friend to participate in the Six Degrees of Separation experiment being conducted by Steve Jackson on Facebook. The theory suggests that everyone is separated by only six other people. In order to see how many people were within reaching distance of his network, Steve Jackson originally invited his friends to this Facebook group, and then asked his friends to invite their friends, and so on. When I joined, the group had expanded to a whopping 4,693,230 members! As concluded by Steve:

Have I managed to contact every single person on Facebook? I like to think so, but unfortunately I have no way of knowing that for sure. The fact is that more than four million of you took the time to join, and that is nothing short of a miracle. As progress marches on, the world gets smaller. That’s inevitable. Whether we’re separated by six degrees or ten degrees or one degree isn’t important. What is important is the idea that we are connected.

Yes, I agree, that the idea that we are all connected is most important. And, given online social networking tools such as Facebook - just think about the possibilities of being better able to discover and exploit those networks!

Inventors

2008-05-12T13:12:00.001-04:00

Are inventors really entrepreneurs? I believe they are. The entrepreneurial process involves identifying, evaluating, exploiting and managing the opportunity. While some entrepreneurs participate in the entire process, others, like inventors, participate in just a part of it. Inventors typically are the ones that identify the opportunities, which is the essential base to any new business.

Can you guess what these inventors were famous for?

(1) Alexander Graham Bell

(2) Elisha Otis

(3) Bette Nesmith Graham

For the answers to these and to see many more inventors, check out Wikipedia's inventory page.

The Cooperative Artist - The ARTrepreneur

2008-05-01T09:29:00.001-04:00

If you are an artist and want to sell your products, what options do you have? While a storefront might be ideal, many artists cannot afford the expenses associated with it and/or lack some of the business skills necessary. An alternative that I encourage you to consider is an cooperative gallery. As explained by ARTrepreneur.com:

The idea of an artists' cooperative is really very simple - a group of artists get together to divide expenses and chores so that they can exhibit and sell their work. They rent communal space; they volunteer their time and contribute to shared expenses. Their hope is that they will find a reliable place to exhibit work and that they will mutually benefit from being in the business of selling work in addition to creating it.

How do you get started? The first step is organizing a group of artists in your community, and then, like any other business venture, get started on figuring our the details of your business plan.

What is in a name?

2008-04-25T06:33:00.003-04:00

When you start your own business, one of the first things that you do is choose a name for your business. Here are a few considerations:

Be unique! This will help you be remembered.
Even if you are starting out with a single product/service, think about what products/services you want to be selling 10-20 years from now. Make sure your name is inclusive of them.
If selling overseas is a possibility down the road, consider the translations.
Look into the legal restrictions depending upon what type of legal entity you will be.
Is a corresponding domain name available? This is a key component is today's world.
Conduct some trademark research to make sure that the name is not already taken.

My last piece of advice is simple: Don't make the business name all about you! Why? First, it makes it difficult if you ever want to sell the business. Second, it ties you to the business. It will create a loyalty to YOU rather than the business, and your customers will always want to personally interact with YOU. Thus, instead of a name like 'Joe's Pizza,' go for 'Pizazz Pizzeria!'

More than a great idea

2008-04-21T15:08:00.008-04:00

Have you ever wondered why Pizza Hut doesn't expand into the 'take-n-bake' aspect of the pizza business? Papa Murphys has found a way to not only enter a very mature and relatively saturated industry, but also a way to THRIVE in it! Instead of delivering pizzas (while trying to keep them warm from the oven), Papa Murphys prepares fresh pizzas in a Subway-line fashion and has you pick them up. So, it would seem logical to me that instead of expanding into the pasta delivery market (like they recently announced), Pizza Hut might instead exploit their delivery system to this fast-growing market. Really, how nice would it be to have a fresh ready-to-bake pizza from Pizza Hut delivered to your door?

I have asked a few people and they fully agree that it would be a great idea. So, what is holding me back? To be quite frank, it is near impossible for me to sell the idea to Pizza Hut. Why? Because you cannot simply patent ideas such as this.

Thus, the remaining option to take advantage of my idea would be to start my own business. It wouldn't be quite as good as Pizza Hut leveraging their name to enter this portion of the industry, but I have yet to see a replica of Papa Murphy's pop up that offers delivery. Here again, however, is a dead end. You see, entrepreneurship requires more than a great idea. It also requires the motivation as well as the capacity to exploit the idea. In terms of motivation, I need to be willing to take on the risks of entrepreneurship and devote the time necessary. For capacity, I need to have the money, equipment, network, industry knowledge, credit, and much more.

Unfortunately, I am a bit lacking on the motivation side as the pizza industry is not an area that I am passionate enough about in order to give up how I currently spend my time. But, perhaps the next idea I come across just might...

Types of Opportunities

2008-04-14T10:31:00.004-04:00

When brainstorming a new business idea, many people get too hung up on trying to come up with a brand new product/service that has never existed before. But, I'll let you into a little secret -- it doesn't have to be that difficult!

You see, opportunities can present themselves in many different ways. Let me explain.

1. NEW product / service - This is by far the hardest opportunity to identify, but ironically, where most people think they need to start.

2. NEW way of organizing - Is there a different way to organize or sell an existing product/service? A prime example is Amazon or Ebay -- which took EXISTING products (bookstore) and services (auction) and simply sold them online. Other examples are the many different candle, jewelry and clothing parties being sold in people's homes, similar to how Tuppaware started out. Another favorite example of mine is Papa Murphy's who is rapidly gaining in the pizza industry simply by selling their pizza uncooked and requiring customers to pick them up!

3. NEW market - Is there a different market to sell an existing product/service? First, you can think geographically. What businesses have you seen elsewhere that would fit well in your hometown? Second, you can think demographics. For instance, many existing services are now being targeted towards youth - such as yoga, fitness centers, cell phones, etc.

4. NEW method of production - Can you produce an existing product/service differently? Back in Iowa, several engineering students had come up with a new freezing process to manufacture ice cream -- which gave rise to the emergence of Blue Sky Creamery.

5. NEW raw material - Can you produce an existing product/service with a new raw material? Think about the silicone hot pads and pans that have come out.

Of course, sometimes the best ideas can be those that combine some of the above options. Can you think of any other innovative examples?

Xtreme Examples

2008-04-09T09:39:00.004-04:00

I previously blogged about finding something that you are passionate about and then making a business out of it. Here are a few more examples found on entrepreneur.com of some Xtreme entrepreneurs -- that have found ways to follow their passion and make a buck or two!

Carey Hart, Professional freestyle motocrossrider and reality TV star
Business ventures - Owner and founder of Hart & Huntington Tattoo Company, a tattoo shop and clothing line with locations in Honolulu; Las Vegas; Orlando, Florida; and Cabo San Lucas, Mexico; owner and founder of Wasted Space, a new rock-inspired nightclub set to open this spring at the Hard Rock Hotel & Casino, Las Vegas

Eric Robinson, Off-road dirt bike rider, motocross rider, mountain biker, snowboarder and triathlete
Business ventures - College Park Industries, manufacturer of prosthetic feet, and founder of the Extremity Games, a sports event for athletes with limb loss and limb difference

Marc Frank Montoya and Liko S. Smith, Snowboarders; Montoya boards professionally
Business ventures - Co-founders of THE BLOCK Hotels, a chain of hotels designed for snowboarders with locations in Lake Tahoe and Big Bear Lake, California; Montoya is also co-owner of Sound Outerwear, maker of snowboarding gear and founder of DumbFounded PerduKshinz, a DJ company; Smith is also founder of Rogue Hospitality

Izzy and Coco Tihanyi, Surfers; Izzy formerly surfedcompetitively
Business venture - Surf Diva, a surf school and surf apparel company for women

For the full article, follow this link.

So many ways to communicate, So little time

2008-04-02T14:30:00.001-04:00

With the rise of the Internet, the way business is conducted has changed. There are many web resources (and a lot of them are free) that can help you as an entrepreneur to communicate, network and ultimately, increase your chances of being successful. Of course, due to the high number of web applications, you do need to spend your time wisely or you can easily become swept up. Thus, you need to determine which applications are most important to you. That question can be answered by determining which applications are most important and/or being used by your key stakeholders. Where will your existing and future customers be looking? What about your suppliers, investors, lenders, potential employees, etc.? When choosing among the many different web applications, you may also want to consider the cost, time required (upfront and going forward), usage, reputation and functionality.

Online telephone - In addition to being able to put your entire phone system on the Internet through a company such as Vonage (and thus bypassing the local, old-fashioned system all together - while saving a few bucks), you can also talk through many of the instant messaging systems and/or the rising favorite Skype.

Email - Free services are offered through many sites, although some of the more popular include Hotmail, Google or Yahoo. Or, for a small fee, you can have a customized email created such as one that goes with your website domain. This is an essential base for communication is today's world.

Internet Fax Services - You can easily send a fax from your computer. For a small fee, you can also have your faxes emailed to you (instead of printing off on your fax machine) -- which can be very beneficial for keeping an electronic copy of your faxes as well as being able to retrieve your faxes while traveling. Many different companies exist - check out MyFax.com!

Website - This is becoming an essential way of broadly communicating to the public what you do and who you are - while showing that you are a legitimate business. There are several build-it-yourself website hosts (i.e. godaddy, msn) or this is something that you can sub out to one of the many firms that exist.

Blogging (such as Blogger) - Like the blog you are reading, blogs can be used to offer information. Other uses include product updates, press releases, or simply to keep others updated on your day to day activities.

Social Networking - More and more social networking sites are popping up. Some of the most popular include MySpace or FaceBook. However, there are also many social networking sites that are specific to a specific industry or objective. For instance, PartnerUp.com is a networking site for entrepreneurs.

File Sharing - If you have created helpful documents, or if you are looking for something in particular, you might also go to one of the many file sharing websites. One that is relevant to entrepreneurs and business owners is Docstoc.

Instant Messaging (such as Windows Live Messenger) - This is a great way to communicate in a way that I consider to be a cross between telephone and email. You can chat with others online in a real time environment. Who might these 'others' be? Well, some companies use instant messaging for usage between fellow employees while others offer 'chat' customer service.

Tweeting - Formed in 2006, Twitter.com allows users to 'stay connected through the exchange of quick, frequent answers to one simple question: What are you doing?' It can become a bit addictive...but can also be used to get to know others better (or allow others to get to know you). Depending on your industry, this could be important.

Online Meetings - Need to schedule a meeting or training session across the country or in that matter, the world? Check out some of the online meeting websites (webex, GoToMeeting, etc.) where in addition to conferencing the voice aspect, you can also conduct a group chat and give a presentation!

Online Profiles - Similar to the bulky telephone book that you may have sitting on your desk, there are many, many different 'yellow page' sites on the web that show your profile. There are many other 'yellow page' type sites that await to hear from you to add and/or customize your profile. Such profiling sites can be general (i.e. yellowpages.com), industry specific (find your trade association online and get into their directory), geographic (such as your local city/county directory) or cater to some miscellaneous purpose.

If you know of other web applications that you have come across, but that are not listed here, please leave a post!

Web Resources: Godaddy.com

2008-03-12T14:31:00.004-04:00

Having a website is a great resource for any new or existing business. It offers a bit of legitimacy to your business, and can also serve as a way to spur customer traffic. Likewise, when you are able to use an email address associated with your domain, it moves you a step up in credibility from the free email services such as hotmail or google. But, where do you start?

About a year ago, I was watching TV and saw an ad for GoDaddy.com. Although I didn't necessarily care for their name, I was impressed when I heard that they were the world's largest domain registar. (It is true - according to their website, they manage over 27.1 million domain names!) As my husband and I had been contemplating hiring out the building of a webpage for the real estate business he had started, I decided to give it a try myself and save us a few bucks. For less than $60, I was able to purchase our domain name, have email addresses related to the domain and use their program to build and host our website for the next 12 months. (what a deal, huh?) Since then, I have built two other websites for family related businesses. In addition to their affordability, another benefit of GoDaddy.com is their customer service. Their support is available 24/7 and whenever I have used it (which has been a few times), they have been great. One of the negatives is that although their web software is easy to use, there is a learning curve associated with it and you do need to work within their templates (although they have quite a variety). If anyone out there has used GoDaddy.com or a different web hosting/building site, I welcome your comments.

Small World Phenomenon

2008-03-06T10:20:00.001-05:00

Back in 1994, three college students in Pennsylvania came up with the "Six Degrees of Kevin Bacon" game. To give you a little background, there was a play out at the time called "Six Degrees of Separation" where it is presumed that you are at most only six steps (or people) away from meeting anyone in the world. So, for example, if you wanted to meet the President, it is likely that your mother works with someone who has a cousin that has a friend that works at the White House and knows the president. These particular students (after a bottle of Southern Comfort it is rumored) decided that Kevin Bacon rhymed nicely with 'separation' and decided to try this small world phenomenon out with applying it to the Hollywood scene. Thus, they examined all the Hollywood players to see if they were all connected to Kevin Bacon in 6 links or less. The game is now kept up by the University of Virginia and I encourage you if you haven't yet, to check it out: The Oracle of Bacon at Virginia. Or, if you are a baseball fan, you can check out how the small world phenomenon has been similarly applied at the Oracle of Baseball.

What relevance does this small world phenomenon have for entrepreneurs? Well, if you think about the concept that we are all connected to everyone else in the world by six people or less -- just think about the resources that are surrounding us - it just requires networking! So, if you have a great business idea, but just need some financing, start networking. If you need to find a good accountant, a business partner, an insider at the company you want to sell at, a technology expert or WHATEVER your need, start networking.

Best Practices

2008-02-25T13:38:00.003-05:00

Subway is one of the top growing franchises in the world. If you were to invest in a Subway franchise, I imagine that your first question would be: What can I expect in terms of sales? Interestingly, if you take a closer look at their franchising brochures, Subway has a policy that 'no employee or agent of ours can provide you with projections as to your potential sales, earnings and profitability.' Instead, they encourage you to talk to other Subway owners. While this is largely due to legal reasons to be sure that they do not misguide you as an investor, their recommendation to talk to other Subway owners makes a lot of sense. In fact, it is the same thing I recommend all of the students and/or entrepreneurs that I work with - find some best practices and talk to them! You can learn a lot not only about what kind of sales projections you can expect, but also learn some great tips about what to do and what not to do. When you are looking for a best practice, look for another business that has a lot of similarities with you, but that are not necessarily a competitor. For instance, if you are going to open a mini golf course in a mid-sized college town, find a different mid-sized college town and talk to them! You may be surprised, as many business owners are more than happy to share their knowledge. And, who knows, you might just find someone to serve on your board of advisers and help you out indefinitely.

Getting help with business planning...

2008-02-21T09:26:00.005-05:00

"I need to write a business plan. Can you help?" Given my prior consulting experience coupled with my degree in entrepreneurship, this is a question that I am frequently asked from friends, family, students and others that are interested in starting their own business. As I really like to write business plans (strange as that sounds), I am usually more than happy to help out. However, what I would like to discuss today are some pointers in what kind of help one should look for in putting together their business plan.

You need to be involved in the business plan process. This is NOT something that you can completely outsource. Why? Because this is YOUR business and although I greatly suggest getting advice from others, you ultimately need to decide what business strategies you will take.
Find a business plan outline, and then customize it to your specific business. If you are having difficulties finding a business plan outline, do a quick google search. There are MANY web resources. A simple place to start is the SBA. You could alternatively use one of the many books out there -- one that I frequently recommend is Business Plan in a Day by Rhonda Abrams.
Write the first business plan draft yourself. This may be difficult, but the business plan is essentially a tool for you to determine if you have thought out all the little details that go into starting a business.
Then, take your business plan to other "experts" in order to get some feedback. Think strategically here. If you are having a hard time with the financials, find a friend or acquaintance in your network that might be able to help here. Other "experts" can include consultants, friends, family members, other business owners, bankers, etc. This is a good time to start putting together your board of advisors whom you can develop a relationship with and come back for advice on a regular basis.
Revise the business plan, and get more advice. Beware, as different "experts" might have differing opinions on what you should do. This is good -- as it will help you think out the many different paths your business can take. The ultimate decision is up to you
Last, remember that your business plan is your road map for your business. You want to continuously update it and rely upon it as you plan out the direction you want to go.

Business planning is a lot of work. So is starting a business. Be prepared. Seek help. Be persistent.

"Social" Entrepreneurship

2008-02-11T15:36:00.000-05:00

The concept of social entrepreneurship is becoming more common and accepted both in the media and academic worlds. Just what is social entrepreneurship? As summarized by Wikepedia, a social entrepreneur is someone who recognizes a social problem and uses entrepreneurial principles to organize, create, and manage a venture to make social change.

There are many different examples of social entrepreneurs, but perhaps the best known social entrepreneur currently is Muhammad Yunus, the founder of the Graneen Bank who won the Nobel Peace Prize in 2006. Another one of my favorite examples of a social entrepreneur is Pura Vida Coffee. Pura Vida (which translates to Pure Life - a common phrase in Costa Rica) was started by two Harvard grads who had the "radical idea of putting the power of capitalism to work for the direct benefit of people in the developing countries where coffee is grown."

There are many different forms of social entrepreneurship. On one end, you have a nonprofit that needs to act entrepreneurial to simply survive. In the past 20 years, the number of nonprofit organizations has multiplied, making it more difficult to obtain donors and requiring more justification and quantification of the social benefits being provided. By integrating entrepreneurial principles, nonprofits can become more competitive and more efficient in providing their social benefits. Some nonprofits are even creating for-profit entities to help financially sustain them and reduce their reliance solely upon donations.

On the other end, there are for-profit firms that want to provide both financial and social returns. Perhaps Ben & Jerry's ice cream is a good example, where they have a product, economic and social mission. The extent to which financial and social returns are emphasized varies on a continuum.

What does social entrepreneurship have to do with you? Well, if you are trying to brainstorm a business idea, think about the social needs that exist. If you already have a for-profit business, you can still find creative ways to incorporate the social issues that are important to you.

Startup Weekend

2008-01-31T09:19:00.000-05:00

Are you looking for an intense weekend of which you'll walk away an entrepreneur? Formed in 2007 by Andrew Hyde, Startup Weekend offers you just that! In select cities, they bring together a group of highly motivated individuals and leave with a community focused on creating a brand new business of which all the antendees have a share in. Upcoming weekends will be taking place in Bloomington (Feb 8-10), Portland (May 23-25) and Ann Arbor (June 20-22).

For more information, just go to www.startupweekend.com!

SBA: Are you ready to start a business?

2008-01-29T12:09:00.000-05:00

The U.S. Small Business Administration is a wonderful resource. Yes, it can be fairly bureaucratic at times, depending on what you want to do. And yes, some parts (especially some of their loan programs) are better for smaller, growing businesses rather that brand new start-ups. However, if you take a look at their website, there are many resources there for the taking.

One of the tools offered is a self assessment of 'are you ready to start a business?' This is ideal for those 'wanna-be entrepreneurs.' What I like about the assessment is that based on the answers you provide, they offer suggestions for your next step in the entrepreneurial process and link you to helpful resources.

This is just a sampling of what is available on the SBA's website. In the coming months, I will periodically profile some of the other facets that I think you will find useful.

Passion

2008-01-21T18:33:00.000-05:00

I remember sitting in my entrepreneurship class while doing my undergrad back at Ripon College, and my professor (who is now a good friend) Mary Avery started talking about passion. Once you find something you are passionate about and enjoy doing, the next step was to find a way to make money doing it. A prime example was the horse ranch that Mary and her husband Tom started up - due to her love of horses and riding since she was small!

Why is being passionate about the business so important? Well, for one, if it is something you are passionate about, you likely have a depth of information about it - which can be leveraged in creating a greater competitive advantage. For instance, my friend Michelle (who actually took the entrepreneurship class with me at Ripon College) just emailed me about the business she was starting - Snappy Scrapping. Michelle is very passionate and knowledgeable about scrap booking, and this results in her ability to identify an opportunity in the industry as well as to be able to create high quality products. The second reason passion is so important is because starting a business requires a LOT of hard work and perseverance. Thus, if it is something you are passionate about, you are likely to have more motivation and work through it.

So, if you are still trying to think of a great business idea, ask yourself: What motivates you? What are your hobbies and interests? What are you passionate about? Then - find a way to make your passion your business.

Updated GEM Data

2008-01-18T17:10:00.001-05:00

In my post earlier this week, I discussed how entrepreneurial the U.S. was in comparison to other countries in the world. Yesterday, the latest figures updated for 2007 were released by GEM (thanks to Michael Chmura from Babson for the email letting me know). The U.S. decreased slightly from 10% of adult population undertaking entrepreneurial activity to 9.6%. The most entrepreneurial country in 2007 was Thailand, followed closely by Peru. The least entrepreneurial country was Austria.

Another interesting fact from the 2007 GEM report: 40% of the early stage entrepreneurs surveyed expected 25% or more of their sales to come from outside their country.

How entreprenuerial is the U.S. (in comparison to other countries)?

2008-01-14T13:34:00.000-05:00

If you are like most people, your answer would be 'very entrepreneurial.' But the answer is pretty surprising and interesting.

There is an organization called the Global Entrepreneurship Monitor (GEM) that annually conducts a cross-national assessment of entrepreneurial activity and their latest published assessment from 2006 included 42 countries. They define entrepreneurial activity as people that are in the process of starting their own business or new business owners (of approximately 3 1/2 years or less).

According to their assessment, 10% of the adult population (ages 18-64) in the U.S. in 2006 were considered to be undergoing entrepreneurial activity. The U.S. ranked 15th out of 42, which is pretty good, but definitely not at the top end. The entrepreneurial activity was the highest in Peru (40%), Columbia (22.5) and the Philippines (20.4). The lowest levels of entrepreneurial activity was found in Belgium (2.7%), Japan (2.9) and Sweden (3.5). Here are a few other key findings:

- entrepreneurial activity is generally higher in those countries with lower levels of GDP
- entrepreneurial activity is relatively low in high-income countries (especially the core countries of the EU and Japan)

Is this making any sense yet? Are you surprised that Peru is nearly four times as entrepreneurial as the U.S.? The eye opening part of this study, at least for me, is that people undertake entrepreneurship for different reasons. In the U.S., most of the people start a business because they see an opportunity and want to exploit it. They have other options, but make the choice to become an entrepreneur. However, in many other countries including Peru, entrepreneurship is not always seen as such a luxurious option. For some, other job opportunities do not exist and/or are not satisfactory so entrepreneurship becomes a necessity in order to survive.

So, is the U.S. entrepreneurial? The answer is yes, but don't forget to understand the global context.

How much do YOU know...

2008-01-08T12:23:00.000-05:00

...about entrepreneurship in the U.S.? Take this quiz. You might be surprised. I must admit that I scored an unimpressive 45%! Hope you have better luck and learn a thing or two.

Learning from Franchises

2008-01-07T08:28:00.000-05:00

Even if you are not interested in starting a franchised business, there is a lot you can learn from franchises in general.

Take, for instance, the rankings put out by Entrepreneur Magazine. If you look at the top new franchises for 2008, which include Instant Tax Service, Massage Envy and Snap Fitness, you gain insight into some of the latest trends for new businesses. When looking at the top overall franchises, including 7-Eleven, Subway and Dunkin' Donuts, you can further investigate what they are doing right to be able to expand so much (and then possibly replicate their strategies).

When you research an individual franchise that is in an industry that you are considering entering, you can also gather quite a bit of market research to help you put together your business plan. For example, what is their location strategy? Do they only locate in metropolitan areas, near major freeways or in malls? What is their marketing strategy? (it is obviously working and you can learn a thing or two here) What are the capital requirements? What can you expect in sales? Margins? What processes and systems do they have in place to run efficiently? And, yes, you can find this all out. A lot of this information may be on their website and you can also ask to have additional information sent.

PartnerUp

2007-12-30T12:30:00.000-05:00

I have recently begun exploring a social networking site for entrepreneurs called PartnerUp. It is an online community that helps you:

- Find business partners, co-founders, executives and board members
- Network with other entrepreneurs and small businesses
- Ask for and offer up advice
- Find commercial real estate
- Find service providers for your business

After registering (which is free) and taking a look around their site, I think that one of the most helpful parts is simply being in a place where you can find others to collaborate with. I know many people that either come up with any idea (but don't have the business skills and/or financing) or have the business skills (but don't have an idea). This is one solution or shall I say --- an opportunity! That said, there is also a little risk in putting yourself out there online.

Businesses are not started in solitude, but rather through a network of people. Even in small businesses where there is a sole owner/founder, that individual is relying on a network of others to give referrals, offer quality support, provide professional services, etc.

I am curious as to what others think of this site or other online networking sites for entrepreneurs, as I do feel the need to connect people together in an entrepreneurial capacity (for the human capital side of things rather than the financial capital) is an important one and much more could be done here.

Brainstorming 101

2007-12-28T15:36:00.000-05:00

Are you one of those people who really want to start their own business, but just can't figure out what business to start? Well, as we go into the new year, here are just a few brainstorming tips that you may not have thought of:

(1) Think BIG - If there were absolutely no constraints, what would you really want to have/do? I think this must be how MetroNaps was discovered - the founders thought it would be nice to be able to take a nap in a comfty place in the middle of their work day!!!

(2) Examine available space - Take a look around your community at which space/buildings are vacant and then think about what would be ideal there. Another source for available space are the many realtor site listing the specifications of different properties available for lease/sale.

(3) Forced relationship - This is for those creative, non-linear thinkers out there! Select two objects and then examine every way in which the two objects can be combined (adjectives, nouns, verb-correlates). For example, take a grape and an apple - you would come up with a 'grapey apple, grape apple, or graping apple.' Now, that might sound silly to you, but so does the grapple (an apple infused with grape flavor) offered for sale at the grocery store!

(4) Problem analysis - Focus on what really annoys you and then try to think of ways that you could solve the problem.

(5) Imitate an existing business model - There are a lot of innovative business that work. Now, instead of trying to reinvent yourself, copy their business model in your area of expertise! For instance, Netflix has an awesome business model that really works. We are now seeing the Netflix model being applied to other sectors - such as books on tape. Where else could you apply it? What about other great business models such as Dell, Amazon, or Ebay?

One last tip is to keep a running list of your ideas, whether it be in a notebook, computer file or cell phone. Then, revisit them from time to time so that you can develop them further.

Best of luck!

What is a business plan, anyhow?

2007-12-17T23:52:00.001-05:00

If you do a search at Amazon.com for books under the topic of 'business plan,' you will find a staggering 69,736 titles. Likewise, if you google 'business plan,' it comes up with 91,500,000 results!!! But, my question for you is - what really is a business plan?

According to the American Heritage Dictionary, a plan is defined as 'a scheme, program, or method worked out beforehand for the accomplishment of an objective.' So, if we apply this to a business plan, it essentially is figuring out beforehand how you are going to successfully start up your business. There are many different business plan outlines, because figuring out the how question can vary depending upon the type of business and how complex it is. That said, most business plans address the following questions:

Company: How will you be organized and bring in the personnel to exploit this opportunity?

Product/Service: What are the features and how will they benefit the customer?

Target Market: What is happening in the industry and how will your business fit into the mix?

Competition: Who are your existing and future competitors and how will you compete?

Sales and Marketing: How will you create an effective strategy to attract and sell to your customer?

Operations: How will you actually get the business up and running?

Financials: How will you make money and maintain financial feasibility?

It is important to note that technically, a business plan does not need to be written. Why? Because nothing about the definition says anything about being written. It is about planning! Of course, I suggest writing down your business plan because it is a lot of planning to keep in your head, and research does show that if you write down your goals/objectives, you are much more likely to achieve them. You will also need a written business plan to pitch your idea to important stakeholders such as investors, lenders, and key partners. Interestingly, there is a study out by Honig and Karlsson published in the Journal of Management in 2004 that found that the mere writing of a business plan is not linked to survival or higher levels of profitability in the first two years of a business. Why? My answer is that what is more important than going through the act of writing the business plan is how well you answer the how questions.

Internet Market Research: The Competition

2007-12-13T22:34:00.000-05:00

Whether you are in the process of writing your business plan or already in business, it is always helpful to assess how the competition is doing. Prior to the Internet, we were somewhat limited to physically visiting the competitors to obtain marketing information, gain insight through interviews (if possible) and observation. However, with the Internet, there is so much more!

The most obvious starting point is the competitor's website. Here, you can find out details such as their logo, sales and marketing strategy, promotions, pricing, hours of operation, etc. However, don't just stop there.

Next, do a search of newspaper and magazine articles. It is here that you might find out more important details such as estimated sales, any negative occurances, management changes and more.

Then, it starts to get fun. Do a general web search (such as google or my personal favorite dogpile.com) to see what you can find. Pay special attention to blogs. People share a lot of information in their blogs - for both personal and commercial usage. Some of the more interesting ones to read are the personal blogs where current and prior customers talk about how good/bad their experience was.

You can also look for industry related websites that offer ratings. Make sure you not only look at the ratings, but also the comments included as they can also give you some insight into how they are doing. For example, on milwaukeemoms.com, the members (mostly females with children) have rated how kid-friendly restaurants are in the area. On dine.com, you can see customer ratings on restaurants across the U.S.

Clicks to Bricks: Is the web a good test market?

2007-12-12T13:36:00.001-05:00

A student recently passed along to me an article published in Business Week (nov 26, 2007) entitled "Threadless: From Clicks to Bricks." It is an interesting article that talks about how companies that have started online, such as Threadless.com or Lucy.com, are now moving to bricks and mortar stores.

For those of you considering opening your own business, it begs the question of whether or not the web is a good 'starter' market to assess your opportunity. You can see what works and what doesn't. You can also collect some data to more accurately determine whom your target customer is and what their precise needs and preferences are. Then, if success seems to be coming your way, you can continue to capitalize on the online market while also entering the bricks and mortar retail market. Your chances of success in the more costly bricks and mortar market will hopefully be improved based on the previous business experience, growing reputation and more overall knowledge about the opportunity. It will also likely help you obtain the financing necessary as you can show more support for your business plan.

Welcome!

2007-12-12T13:19:00.000-05:00

I've decided to start this blog to share some of the many thoughts, innovative ideas, and resources that can be used throughout the entrepreneurial process. It is my hope that these will help inspire you and/or help you on your entrepreneurial journey!