09.07.07
Posted in Reselling at 7:21 am by jim
Q: I recently launched a website for my sporting goods business. Do I need to do anything special to attract customers to my website? I know nothing about search engines and marketing as such. Please tell me where to begin.
A: That is a question that has been asked by every business person who has ever launched a website. If I build it, will they come? Of course they will — if you’ve built a website that appeals to dead baseball players.
For those of you who didn’t get the “Field of Dreams” reference, let me put it this way: No, Sean, if you build it they will not come, at least not without some effort on your part.
Assuming that a website will automatically attract customers is the single biggest mistake that many business owners make. It is this mistake that eventually leads them to dismiss their website as a failure and abandon their online sales efforts.
I can’t tell you how many times I’ve heard a client say, “Well, I threw up a website, but nobody ever came to it and I didn’t sell a single thing from it! Dang thing was a waste of time, if you ask me …”
Forgive me, but “threw up” is the operative term there. These short-sighted entrepreneurs (God love them) mistakenly think that all they have to do is throw up a website and that their business will automatically double overnight. And when nothing happens they blame it on the infallibility of the Internet, on El Nino, on the Bosa Nova, on their customers… everything but their own lack of marketing efforts.
If you build it, will they come? That, Sean, depends totally on you.
When it comes to attracting customers, opening an online business (or an online branch of an existing business) is no different from opening a traditional brick and mortar shop. Without a little fanfare and a well-devised marketing plan, chances are your website will become just another spot of roadkill on the Information Superhighway.
The first step in devising your marketing plan is to ask yourself this question: Who is my customer? Who is it that I want to attract to my website? Believe it or not, this is a question many entrepreneurs fail to ask. The identity of your customer is incredibly important because if you don’t know who your customer is, how can you expect to market to them?
The next question concerns the locality of your customer. Do you want to attract a local or global clientele to your website? If the answer is local, then you will gear your marketing efforts toward customers in your own backyard, which means incorporating your website launch with your offline marketing efforts.
If the website is the online branch of a brick and mortar business, include the website URL in all your print materials and advertising campaigns. Consider running ads in the local paper, on radio or TV announcing the launch of your site. Use direct mail or in-store posters to announce the site launch to your existing customer base.
In short, keep doing what you’re doing to attract customers to your physical store, just add your website address to the mix.
Just remember, it’s important to consider your website a branch of your brick and mortar business because that’s exactly what it is. A good business website will help you sell more products, widen your range of clientele, and increase your revenue without adding overhead. Don’t sell your website short. Make it work for you.
If you are seeking a global audience, your marketing efforts will be quite different. Attracting customers from around the world is a more difficult task than attracting customers from around the block. Fortunately, the task is not impossible. The Internet has leveled the playing field in many ways. Now every business, no matter how large or small, has the ability to do business internationally.
In the most basic sense, an online marketing campaign to attract global customers should include the following efforts.
Register With Search Engines
There’s not enough room in this newspaper for a thorough discussion of search engines and their effectiveness (or lack thereof) in driving traffic to a website. Suffice it to say that 95% of search engine traffic comes from Google and Yahoo, so start there. It’s also important to realize that just registering with search engines does not guarantee you traffic, but it certainly can’t hurt.
Unfortunately, the free search engine lunch ran out a couple of years ago when search engines figured out that people would actually pay for listings and higher placement. Since that time the only way to guarantee a high (or at least higher than others) ranking is to pay for it. The two most popular pay-for-placement programs are Yahoo’s “Yahoo Express” and Google’s “Adwords.” Visit their respective websites for details on these programs. Be prepared to spend several hundred dollars at a minimum to get your site listed.
Exchange Links With Similar Sites
One free - and potentially effective - way to drive customers to your website is through link exchanges with sites of similar interest. Locate sites that make a good match to your own and contact the owner to ask if they will link to your site in exchange for you linking to theirs. If you sell golf balls on your website, set up a link exchange with another website that sells golf clubs. You post a link to them and they post a link to you. It’s called digital back scratching, and if done properly, can work well to drive traffic your way.
Go To Where The Customers Are
If the mountain won’t come to Mohammed, then Mohammed must go to the mountain. One little known way to attract customers to your website is to market your products on a mega-site like eBay. There are thousands and thousands of people on eBay at any given time and each one is potentially your customer, so it’s a great place to drum up business.
Your goal is not to make a living selling on eBay, but to use eBay as a marketing tool to drive traffic back to your website. Go to where the customers are, then bring them back home with you.
Let’s use our golf ball example. Post a few auctions on eBay selling your golf balls at a ridiculously low price so your auction attracts plenty of attention. When customers make a purchase, add them to your client list and send them an email inviting them to visit your website for more great products. eBay also lets you create your own “About Me” page that you can use to advertise your business.
We have just scratched the surface, but hopefully this is enough to get you started. I wish I could tell you that attracting customers to your website is easy, but the truth is, it’s anything but. It takes hard work, creativity and above all, perseverance.
Here’s to your success!
Permalink
09.04.07
Posted in Reselling at 6:54 am by jim
Q: I really want to start my own business, but I have no idea what business would be best suited for me. I’m also eager to get started, but I don’t want to pick the wrong business just because I’m impatient. How should I go about deciding what business would be best for me?
– Samuel J.
A: Before I answer your question, Samuel, I want you to reach around and pat yourself on the back for not letting your eagerness push you into making a wrong decision. All too often we entrepreneurs tend to let our impatience drive us to make decisions that we later regret. In business such haste can be very costly, indeed.
I always compare starting a business to jumping into a pool of freezing water. There are typically two types of entrepreneurs who take the plunge.
The first are the “Toe Testers.” These are those cautious folks who just stick their big toe in the pool to gauge the temperature of the water. It is for these careful entrepreneurs that the phrase “testing the waters” was coined. Toe Testers enter the business pool slowly, a little bit at a time. The lesson to be learned from Toe Testers is to start slowly and don’t feel like you have to wade in too fast. Ease into the business pool gradually to make sure it’s right for you. Remember, many entrepreneurs realize that the business world is not right for them only after they are in it up to their necks. And that’s when the term “sink or swim” takes on a whole new meaning.
The next type of entrepreneur is the “High Diver.” These are those fearless souls who climb the ladder and dive into the business pool head first without worrying about the depth of the water or the dangers that lurk beneath the surface. It is for these entrepreneurs that the phrase “damn the torpedoes, full speed ahead” was coined. Quite often these entrepreneurial daredevils find themselves drowning in unknown waters or end up with their heads buried in the bottom of the pool.
Both types of entrepreneurs may find success, depending on how well equipped they are to handle the water they are diving into. Here are a few ideas to help better prepare you for the plunge.
** Let your experience be your guide. Start with what you know. If you have spent twenty years working as an accountant or you love to build wooden toy trains as a hobby, consider how you can take that experience and turn it into a successful business. You might also find a great business idea right under your nose. Look around your workplace. Do you see needs that are going unmet or can you think of a better way of doing something? If so, you might have the seed for a profitable business.
** Do what you love and enjoy what you do. I can’t emphasize this enough. Many people start a business for the wrong reason: to get rich. While it is true that many millionaires in this country made their fortunes from their own business ventures, that should not be your sole motivation for starting a business. If you don’t enjoy what you do, you will not be successful, at least not from a mental point of view. Sure, the monetary rewards can be tremendous, but the mental anguish of working in a business you don’t enjoy is a high price to pay. I talk to entrepreneurs all the time who are running successful businesses, but are so unhappy as a result that they literally make themselves sick. If you don’t enjoy what you do the business will become a chore, not a joy.
** Don’t reinvent the wheel, just make it better. Many first time entrepreneurs assume that they have to come up with a new business idea to be successful. That simply is not true. Most successful businesses are born not of innovation, but of necessity. Instead of trying to come up with an idea that changes the world, take a look at the world around you and see where there might be a void that needs filling or a business concept that needs improvement.
Many successful businesses have been built by taking a traditional business and making it better. Domino’s Pizza was certainly not the first to offer home delivery of pizza, but they were the first to guarantee it would be delivered piping hot to your door in 30 minutes or less. Amazon.com was not the first company to sell books, but they were one of the first that would let you buy books from the comfort of your own home while sitting in your underwear.
** Focus on a niche. Many businesses have gone broke trying to be all things to all people. The ability to offer a gazillion products under one roof is all well and good for Wal-Mart, but not for most new small businesses. Try to identify a niche that you would enjoy working in and think about starting a business therein. If you love to work outdoors, consider starting a landscaping business. If you enjoy working with numbers, think about becoming an accountant or CPA. When’s the last time you had your gardener do your taxes? You get the idea. Focus on a niche and become an expert in your field.
** A franchise might be an option. Many new entrepreneurs consider buying a franchise operation instead of starting a business from scratch. Franchises are a good way to jumpstart the process because they have already done much of the hard work for you. They have proven the business model, established guidelines for running the business, spent millions of dollars on establishing the brand, etc. Buying a franchise is typically a very expensive and involved process that is beyond the scope of this article. The best thumbnail of advice I can give you is to thoroughly investigate the franchisor and the opportunity, use your own attorney to do the deal, and read the fine print in the franchise agreement.
** It’s hard to swim in a crowded pool. If the business pool is already filled with other companies doing the same thing you want do, chances are you will fail in the face of established competition. To succeed in such a crowded pool you will have to do something to stand out from the crowd (and I don’t mean greeting customers while wearing a bright red Speedo). If you can’t quickly and easily differentiate yourself from a large group of competitors, you’re better off choosing another business.
** Above all, take your time. Whatever business you choose to start, I encourage you to take the time required to make an informed, intelligent decision. Think about starting part time while you still have your current job (and income) to fall back on. Talk to friends and associates who use the product or service you will provide to see if they would consider become paying customers.
Remember, in business you can end up swimming in success or sinking in failure. The key to your success might just lie in the sensitivity of your big toe.
Here’s to your success.
Permalink
08.31.07
Posted in Reselling at 7:51 am by jim
Q: I hear so much about people who started selling on eBay and eventually turned it into their full time business. Is it really possible to build a profitable business just selling junk on eBay?
– Alex K.
A: If Fred Sanford were alive today, Alex, I’m sure he’d be earning his ripple money by selling quality junk on eBay. While it’s also true that one man’s junk is another man’s treasure (I have a garage full of treasure to prove this point), your chances of building a profitable business selling “junk” on eBay (or anywhere else, for that matter) are slim to none.
While there is a lot of junk/treasure for sale on eBay, it is typically sold by individuals who have “I break for yardsales!” bumper stickers on their cars and not serious business people.
For serious entrepreneurs, however, selling on eBay can be a good way to start a new business if you are willing to put in the time and energy required to make the business a success. eBay is also a good option for existing businesses to expand their reach by selling online.
Everyone from small used car dealers to giant companies like Dell Computers have discovered that eBay is an excellent place to hawk their wares simply due to the huge number of folks who visit the eBay site on a daily basis. Nowhere else on earth will you find such a large pool of potential customers.
Consider these numbers: · There are nearly 69 million eBay users who spend $59 million every day. · Most eBay sellers are home-based businesses that sell every- thing from porcelain dolls to locks of Elvis’ hair to $100,000 Mercedes convertibles to $5 million dollar vacation homes.
· Every minute of every day more than 150 new items are listed for sale, more than 500 bids are placed, and seven new people register to shop on eBay.
· At any given moment, eBay is conducting some 12 million auctions, divided into about 18,000 different categories.
· About two million new items are offered for sale every day, and 62 million registered users scour the site to find them. · One company is grossing more than $5 million dollars a year selling brand new pool tables on eBay. Their eBay store is so profitable that they have closed their retail location and now sell solely online.
That’s right, $5 million dollars from the sale of pool tables: proof that you can sell just about anything on eBay if you know how to do it.
Be aware, however, that eBay is no magic bullet. As any eBay Power Seller (a seller who sells a minimum of $1,000 in goods per month) will tell you, building a profitable eBay business takes hard work and requires long hours, and often the financial rewards do not make it worth the effort spent.
When it comes down to the mechanics of it all, running an eBay business is no different than running a brick and mortar business. You still have the same considerations regarding product selection, inventory purchasing, product pricing, inventory management, order processing, fulfillment, customer service, etc.
You must also consider the legal and accounting aspects of the business. Just because you’re selling online does not mean that Uncle Sam won’t expect his piece of the pie. Revenue generated by an eBay business is just as reportable and taxable as revenue generated from a brick and mortar store. And if you sell to customers within your state you may also be responsible for collecting city, county or state sales tax.
One of the biggest obstacles to building a successful eBay business may be the stiffness of the competition. Many sellers sell identical items and the price wars often get ugly, but that’s to be expected in a free market place, which is exactly what eBay is.
You may be the only store in town that’s selling that one of a kind, custom made just for you, broke the mold after they made it, Dale Earnhart Memorial Bobble Head Action Figure (Earnhart fans would string me up if I called it a Doll), but do a quick search on eBay and you’ll probably find a hundred others just like it.
So, can you build a profitable business selling on eBay?
Certainly, thousands of people have done it and so can you.
Here are a few tips to help get you started.
Sell Quality Products Don’t sell junk! Leave the knick-knacks and fake leather jackets to the less informed. You should offer only quality products at a fair price.
Research The Competition Once you have your product in mind, don’t invest a dime on inventory until you have spent some time on eBay to see what the competition is doing. If you want to sell motorcycle helmets, for example, you should look at current auctions to see how many others are selling similar helmets and what prices they are charging. This step is vital since you may discover that you can’t compete with current sellers on price or there is simply no market for what you have to offer.
Start Slowly Many people believe that the more items they have for sale on eBay the better. They will invest thousands in inventory and spent hundreds on listing fees (yes, eBay charges you to list items for sale and collects a final fee if the item sells). Those are the folks that usually end up with ten thousand Ginsu knives forever in their garage.
Test, Test, Test A fair portion of eBay auctions result in no sales, so it’s best to test the waters before jumping in with both feet.
List a few items and see how they sell. If an item doesn’t sell, list it at least twice more. Some items might not sell the first time, but may the second or third, then sell steadily from then on.
If an item gets no bids the first time, consider adjusting your price or your terms. If an item sells well, keep it in stock and then experiment with another item.
Do Your Homework eBay is too broad a subject to be covered fully here, but there are a multitude of books available that can help you start an eBay business. In fact, I bet you’ll find most of them for sale at this very moment at eBay.
What’s my bid…
Here’s to your success.
Permalink
08.28.07
Posted in Reselling at 7:28 am by jim
Q: My business is very small, just me and two employees, and our product really can’t be sold online. Do I really need a website?
– Robin C.
A: Congratulations, Robin, you are the one millionth person to ask me that question. Smile for the cameras, brush the streamers and confetti from your hair and listen closely, because I’m about to answer for the millionth time what has become one of the most important and often-asked questions of the digital business age.
Before I answer, however, let’s flash back to the very first time I was asked this question. It was circa 1998, during the toddler years of the Internet, just after Al Gore laid claim to having given birth to the concept a few short years before.
I was giving a speech on the impact of the Internet on small business at an association luncheon in Montgomery, Alabama. My motto then was: Feed me and I will speak. I have the same motto today, but I now expect dessert to be included in exchange for the sharing of my vast wisdom.
In 1998, which was decades ago in Internet years, the future of electronic commerce or “ecommerce” as it’s come to be known, was anybody’s guess, but even the most negative futurists agreed that all the signs indicated that a large portion of future business revenues would be derived from online transactions, or from offline transactions that were the result of online marketing efforts.
So, Robin, should your business have a website, even if your business is small and sells products or services that you don’t think can be sold online? My answer in 1998 is the same as my answer today: Yes, if you have a business, you should have a website. Period. No question. Without a doubt. Thank you, drive through.
Now serving customer number one million and one…
Also, don’t be so quick to dismiss your product as one that can’t be sold online. Nowadays there is very little that can not be sold over the Internet. More than 20 million shoppers are now online, purchasing everything from books to computers to cars to real estate to jet airplanes to natural gas to you name it. If you can imagine it, someone will figure out how to sell it online.
Internet marketing research firms predict that online revenues will range between $180 and $200 billion dollars in 2003. They also predict that the number of online consumers will grow at a rate of 30-50% over the next few years. These numbers alone should be enough to convince you that your business should have a website.
Let me clarify one point: I am not saying that you should put all your efforts into selling your wares over the Internet, though if your product lends itself to easy online sales, you certainly should be considering it.
The point to be made here is that you should at the very least have a presence on the World Wide Web so that customers, potential employees, business partners, and perhaps even investors can quickly and easily find out more about your business and the products or services you have to offer.
That said, it’s not enough that you just have a website. You must have a professional looking website if you want to be taken seriously. Since many consumers now search for information online prior to making a purchase at a brick and mortar store, your website may be the first chance you have at making a good impression on a potential buyer. If your website looks like it was designed by a barrel of colorblind monkeys, your chance at making a good first impression will be lost.
One of the great things about the Internet is that it has leveled the playing field when it comes to competing with the big boys. As mentioned, you have one shot at making a good first impression and with a well-designed website, your little operation can project the image and professionalism of a much larger company. The inverse is also true. I’ve seen many big company websites that were so badly designed and hard to navigate that they completely lacked professionalism and credibility. Good for you, too bad for them.
You also mention that yours is a small operation, but when it comes to benefiting from a website, size does not matter. I don’t care if you are a one-man show or a ten thousand employee corporate giant; if you do not have a website you are losing business to other companies that do. Here’s the exception to my rule: It’s actually better to have no website at all than to have one that makes your business look bad.
Your website speaks volumes about your business. It either says, “Hey, look, we take our business so seriously that we have created this wonderful website for our customers!” or it says, “Hey, look, I let my ten-year old nephew design my site! Good luck finding anything!”
What does your website say about your business?
Here’s to your success.
Permalink
08.21.07
Posted in Reselling at 5:50 am by jim
I’m often asked: what is the best way to finance a new business venture. This question is usually followed by “So, do you ever invest in new business ventures?”
The answers, respectively, are: 1. there is no “best” way to fund a new business; and 2. I do invest in new business ventures, but darn it I can’t today because I left my checkbook in my other suit.
The truth is there are a variety of ways to finance a new business and which way is best for you depends totally on your product, your market, your financial requirements, your burn rate, and most importantly, your personal and financial situation.
So with that in mind, here are a few of the most common ways to finance a new business without hitting old Tim up for a loan. Keep in mind that all methods have pros and cons and some (or most) may not work for your specific situation. No matter what financing method you choose thoroughly investigate the ups and downs and don’t jump in with both feet until you’re sure you’ll land on solid ground.
Savings and Investments
The first source you should consider tapping is your own savings and investments. I’m a huge fan of self-financing when it comes to business because it doesn’t make you responsible to others should the business fail. The bad thing is that it if things do go under, it will be your money that goes down with the ship. If you’re not willing to risk your own capital you certainly shouldn’t be willing to risk anyone else’s.
Friends and Family
After tapping their own savings and investments, many entrepreneurs turn to friends and family for help. This works well for some, but here’s the creed I live by: NEVER borrow money from anyone you have to eat Thanksgiving dinner with. Nothing causes tension in a family like lending money that is never paid back. And notice I say “lending money” rather than investing money. Venture capitalists invest money. Your relatives lend you money. They will expect it back someday even if they say they won’t. Remember, when a loved one invests in your business they are emotionally investing in you. It would be tough to tell mom and dad that their favorite son lost their life savings because his business went down the drain.
Credit Cards
I financed my first business on credit cards, which was an incredibly stupid thing to do given the fact that my business could have failed and left me with thousands of dollars in credit card debt that would have taken until the year 2099 to pay off. It worked out in the end for me, but if you decide to finance your business on plastic keep in mind that you will be paying extremely high interest rates on the money you’ve borrowed and unless you hit it big you will be paying for that money for many years to come.
Mortgage The Farm
Bank loans are next to impossible to get if you don’t have collateral and a track record of business success, which is why many entrepreneurs use the equity in their homes to finance their business after being turned down for a bank loan. While this makes more sense than building a business on a deck of credit cards, the financial risks are no less abundant. You must pay this money back whether your business succeeds or not, but it is a good source of low interest money to get you started and the interest may be tax deductible (check with your accountant to make sure).
Angel Investors
An angel investor is typically a wealthy individual who invests in start up ventures for a share of the ownership. Angel investors are usually the first formal investors in a business and provide the seed money to get the business up and running. Some angel investors will write you a check and leave you alone to run your business while others consider their investment a license to “help you” manage and make decisions. If you do accept angel money make sure the terms are clearly defined on both sides. Angel money always comes with strings. Make sure you know whether those strings come in the form of a bow or a noose before you accept an angel’s check.
Venture Capitalists
Venture capitalists are to angel investors as pit bulls are to Chihuahuas. That’s not to say all VC are big, bad dogs, but they do have powerful jaws that can chew up your business and spit it out if things don’t go their way. VC money doesn’t come with strings, it comes with chains and locks and lots of legal documents. VC always have the upper hand in any deal they invest in. That’s just how it works and that’s the price you pay to get access to VC money.
If your business gets to the level that VC money becomes a viable option, don’t jump at the first bone a VC dangles before your eyes. If one VC likes your idea, others will, too. Present to multiple VC and carefully consider each offer before you accept the check.
Just remember, no matter how you finance your business, use the money wisely. Don’t buy $1,500 plasma monitors and $1,000 Hermann Miller chairs.
Have a very clear plan of how the money will be used and how it will be paid back.
And remember this, the more you can shoestring the business, but more of the business you will own in the end.
Permalink
08.17.07
Posted in Reselling at 7:25 am by jim
One of the cool things about being an entrepreneur and business author and speaker is that I get to use all kinds of big words and phrases that make me sound much smarter than I am.
For example, just saying the word “entrepreneur” makes me sound quite educated and continental, despite the fact that the only subject in school I failed miserably was French.
After an entire school year the only thing I learned to say was, “Mon professeur est un porc de verrue,” which loosely translated means, “My teacher is a wart hog.”
You can see why I got “la F.”
One of the hot catchphrases being bounced around a lot in business these days is “competitive advantage.”
All the experts tell you that you must get the competitive advantage over your competition before they get the competitive advantage over you. He who gets the competitive advantage wins the game!
While that may be true, trying to come up with ways to gain the competitive advantage can drive you positively écrous (look it up, Pierre).
Can we beat them on price? Can we beat them on selection? How about the quality of our goods or the strength of our warranties?
Can we one-up them on response time or the number of pepperoni we put on our pizzas or the slices of cheese we slather on our burgers?
Here’s the thing most entrepreneurs don’t seem to realize when it comes to gaining the competitive advantage: you can only gain the competitive advantage in those areas in which you are clearly superior to your opponent.
Read that sentence again and let it soak in for a minute, I’ll wait.
You can’t gain the competitive advantage in an area in which you are clearly inferior to your competition, so why waste time trying? Oh sure, you can come up with handy-dandy slogans like “We’re the low price leader” and “Our meats are the freshest in the land.”
You can throw money at marketing your witty catchphrase until everyone on the planet has it permanently engrained in their brains (can you hear me now?). But the moment the consumer has to pay more for your goods and your meats taste like day old French bread, all the marketing in the world won’t prove a lie to be the truth.
Word of mouth and reality have killed many a great marketing campaign.
So you should only compete in those areas where you have a good chance of actually winning, i.e. gaining the competitive advantage.
It’s all about bragging rights; and if you have very little to brag about your customers will come to see you as just another bag of wind in a breezy marketplace.
Many companies compete on price, especially those in the grocery and retail industries. With profit margins as slim as Britney Spears chance of winning mother of the year, trying to go head to head with the big boys on price is a losing game.
You can’t compete on price with the Wal-Marts and Coscos of the world, so stop trying.
Again, concentrate your efforts only in those areas where you have a better than even chance of gaining the competitive advantage.
How about quality? Is your product superior in quality to all others on the market? If so, concentrate on proving it and branding yourself as the quality leader.
How about customer satisfaction? If your product has documented proof that 98% of customers are happy with their purchase while the industry norm is 75%, make customer satisfaction your competitive advantage mantra.
How about customer service? If your customers love you and keep coming back for more, then concentrate on making that your competitive advantage.
There are other ways to get a leg up on the competition: being first to market with a new product, pioneering a new technology, hiring a key executive to run the show, and yes, coming up with a catchy slogan that everybody knows and you can back up.
Bottomline: if you can’t compete in a specific area, stop trying.
You’re fighting an uphill battle you can’t win. It makes no sense to compete in a contest where you know in your heart you can’t win.
Concentrate on kicking the competition’s derriere in those areas where you have the superiority to do so. Viva la différence!
Permalink
08.14.07
Posted in Reselling at 8:16 am by jim
Q: How important is the name of a business? Should the name of a business reflect what the business does or is it better to come up with something catchy and easy to remember?
– Randy P.
A: What’s in a name? When it comes to your business, Randy, a lot more than you might think. In fact, deciding on a business name is one of the most important decisions you will ever make. The right business name can help you rise above the crowd while the wrong business name can leave you trampled in the rush.
With the economy in a slump and competition on the rise, now more than ever it is important that you put considerable thought into coming up with the perfect name for your business.
Unfortunately, this is a task that is easier said than done. It seems like all the good business names are either married or… no wait, that’s a different subject, but the analogy holds true.
We live in an age when a business called “The Body Shop” might repair wrecked cars or sell skintight jeans to teenagers, so before you send your letterhead to the printer, consider the following points to help you select the business name that’s right for you.
The first thing you should do is conduct a little research to determine if the name is already in use by someone else. You would be surprised at how many entrepreneurs forget to research this point and open a business with a name that is already in use. Check with the county clerk and the secretary of state to make sure the name isn’t already licensed for use or incorporated with the state. Also check with the U.S. Patent and Trademark office to see if the name is already trademarked, i.e., owned, by someone else. Using another company’s trademarked name exposes you to legal action by the trademark owner. Even if your name is just similar to the trademarked name, you may find yourself in court defending your right to use the name. And odds are it’s a battle you will lose.
If the name you choose is not in use, you should immediately reserve the name with the secretary of state (if you plan on incorporating) and apply for a trademark to ensure your legal ownership. If you do not trademark the name someone can come along later and attempt to steal the name out from under you. Imagine spending years building up your business only to have some upstart trademark the name and engage you in a legal battle over rightful ownership. This is one fight you don’t need, especially when the hassle could have been easily avoided with a few bucks and a few forms.
Another important thing to consider is the domain name for your business. The domain name is the website address a customer will use to find you on the Web. Is the domain name for your business name available? If not, is there a domain similar to the business name you’re considering?
You will undoubtedly discover that securing a suitable domain name is actually harder than choosing a business name. Most logical domain names are already reserved, but you might get lucky. Keep in mind that domain names should be short and descriptive, and preferably have the .com or .net extension. You can use other extensions (I’ve even used the “.to” extension on occasion) if necessary, just keep in mind that you will need to put forth a little extra marketing effort to promote the website address as people typically assume a .com extension as the norm. Whatever you do, don’t use a domain name that is a confusing amalgam of letters and numbers that is hard to remember and even harder for your customer to type in.
One good way to approach the task of naming a business is to do so from your customer’s point of view. Your business name should clearly define your offering and communicate your message to customers. Put yourself in your customer’s shoes for a moment. If you were looking for a business that provides your product or service, what would you expect that business to be called? If you were in the market for computer parts, for example, wouldn’t you look for a business that has “computer parts” reflected in the business name? Jim’s Computer Parts may not sound as snazzy as Jim’s Electronics Emporium, but snazzy doesn’t pay the bills. Happy customers who quickly identify you as the source of their purchase do.
The name of your business can also spark subconscious reactions in a customer that may drive them to you or drive them away. Words like quality, complete, executive, best, low-cost, and on time often spark positive reactions in the mind of the consumer. Words like cheap, discount, and used tend to create negative emotions. You’ll notice that no one claims to sell used cars anymore, but the dealer lots are loaded with vehicles that are “previously owned.”
Finally, let’s talk about things to avoid. Experts agree that you should avoid using generic terms like enterprise, corporation, partners, and unlimited as part of your everyday business name. These terms are fine for the legal business entity name, but are often too unclear for everyday use. Can you tell me what any of these companies do: ABC Corporation, Big Dog Enterprises, M&B Partners, and Discounts Unlimited sell? I didn’t think so.
Also avoid abstract names like Yahoo, Google, Monster and Flip Dog (I am not going to list the names of the numerous local high tech firms that have bucked this rule 
). Abstract names will require a subtitle to explain what the business does or an expensive marketing campaign that brands the name into the minds of consumers. Unless you have deep pockets, I suggest you go with a name that describes your business at first glance and leave abstraction to the likes of Cher.
Finally, you should avoid hokey names, unless of course, you are starting a hokey business. Crazy Dave’s Stereo Shop is a great name if the business is really run by Crazy Dave and his personality is exploited in the marketing of the business.
However, if you want to be taken serious, then give your business a serious name.
Would you go to Crazy Dave’s House of Dentistry?
Neither would I.
Here’s to your success.
Permalink
08.07.07
Posted in Reselling at 8:06 am by jim
Q: I have a great idea for an amazing new product. There is nothing like it on the market and no competition that I can find. I think it will be a huge success and so does everyone I tell the idea to. I’m willing to bet the farm on this one. What do you think my chances of success are?
A: I’m a lousy poker player, mainly because I can’t help grinning like the village idiot when blessed with a winning hand or frowning like a sad clown when dealt a dud.
I also never make odds on the success of “amazing new products” because more often than not the only thing that’s amazing is the way the product is totally ignored by the buying public. In my software business there have been times when we came up with what we thought was an amazing idea for an amazing piece of software - a piece of software so amazing, in fact, that we knew that all mankind would sit up and take notice, then line up to write us checks.
After hundreds of hours and thousands of dollars spent developing the product we were amazed to find that the only people who thought the software was truly amazing was us.
We made mankind yawn. Quite an amazing accomplishment, if I do say so myself.
It worries me that you say there is nothing like your idea on the market. While you may think that is a good thing, it might actually mean that there is no market for your product. The same holds true for a lack of competition. A total lack of competition might mean that there is no demand for such a product.
Rarely does a product come along that revolutionizes an industry. Rarer still does a product create a new industry on its own. So, how can you tell if your amazing new product really is worth gambling on? The truth is, you can never be 100% certain that your idea will sell. No matter how enamored you are of it or how much your friends rave about it, the success of a new idea depends on a number of factors, many of which are beyond your control.
Such factors include:
- The viability of the idea: is this really a product that you could build a company around? Does the idea have the potential to generate revenue or customer loyalty?
- The people implementing the idea: the right team can make even a mediocre product a huge success (ever heard of Windows). Inversely, a bad team couldn’t sell ice water in Hades. Pick your team carefully. The right people really do make all the difference.
- The demand for such a product in the marketplace: will this product fill a need or satisfy an itch?
- The competition: is the market already crowded with competitors? If so, what will it take to move your product ahead of the pack?
- The depth of your pockets: even an amazing product requires a ton of cash to go from drawing board to store shelf.
- The availability of other resources required to take the product from the drawing board to the consumer: do you have the time, the drive, the perseverance, the knowledge, the contacts, the support, and a hundred other things required to bring your amazing idea to fruition?
- The list wouldn’t be complete without sheer luck and timing.
- And a thousand other things.
Before you invest too much time and money into your idea, do a little research to determine if it’s an idea that’s really worth gambling on:
- Research the market for similar products. Again, if there are no similar products on the market that might mean there is no market for that product. If there truly is nothing exactly like your product, research similar products that fill a similar void in the consumer’s life. Learn all you can about such products: pricing, market share, track record, etc.
- Research the competition. As mentioned earlier, if there is no competition there may not be a market for a product like yours. If there is competition, research the competition fully (little guys and big guys) to help determine if you can realistically compete for market share.
- Identify your target customer and ask them for an honest evaluation of the idea and its marketability. Avoid friends and family as they usually just tell you what you want to hear. If your target customer is a 35 year old female, pitch your idea to every 35 year old female you meet and gauge their response. Just don’t break any stalking laws in the name of market research…
The best advice I can give you when it comes to amazing new product ideas it’s best to follow your head and not your heart. It’s a lesson that took me years to learn. If I had a nickel for every amazing new product I’ve invested in I’d go play a few hands of poker.
Permalink
08.03.07
Posted in Reselling at 11:02 am by jim
Q: My business is very small, just me and two employees, and our product really can’t be sold online. Do I really need a website?
– Robin C.
A: Congratulations, Robin, you are the one millionth person to ask me that question. Smile for the cameras, brush the streamers and confetti from your hair and listen closely, because I’m about to answer for the millionth time what has become one of the most important and often-asked questions of the digital business age.
Before I answer, however, let’s flash back to the very first time I was asked this question. It was circa 1998, during the toddler years of the Internet, just after Al Gore laid claim to having given birth to the concept a few short years before.
I was giving a speech on the impact of the Internet on small business at an association luncheon in Montgomery, Alabama. My motto then was: Feed me and I will speak. I have the same motto today, but I now expect dessert to be included in exchange for the sharing of my vast wisdom.
In 1998, which was decades ago in Internet years, the future of electronic commerce or “ecommerce” as it’s come to be known, was anybody’s guess, but even the most negative futurists agreed that all the signs indicated that a large portion of future business revenues would be derived from online transactions, or from offline transactions that were the result of online marketing efforts.
So, Robin, should your business have a website, even if your business is small and sells products or services that you don’t think can be sold online? My answer in 1998 is the same as my answer today: Yes, if you have a business, you should have a website. Period. No question. Without a doubt. Thank you, drive through.
Now serving customer number one million and one…
Also, don’t be so quick to dismiss your product as one that can’t be sold online. Nowadays there is very little that can not be sold over the Internet. More than 20 million shoppers are now online, purchasing everything from books to computers to cars to real estate to jet airplanes to natural gas to you name it. If you can imagine it, someone will figure out how to sell it online.
Internet marketing research firms predict that online revenues will range between $180 and $200 billion dollars in 2003. They also predict that the number of online consumers will grow at a rate of 30-50% over the next few years. These numbers alone should be enough to convince you that your business should have a website.
Let me clarify one point: I am not saying that you should put all your efforts into selling your wares over the Internet, though if your product lends itself to easy online sales, you certainly should be considering it.
The point to be made here is that you should at the very least have a presence on the World Wide Web so that customers, potential employees, business partners, and perhaps even investors can quickly and easily find out more about your business and the products or services you have to offer.
That said, it’s not enough that you just have a website. You must have a professional looking website if you want to be taken seriously. Since many consumers now search for information online prior to making a purchase at a brick and mortar store, your website may be the first chance you have at making a good impression on a potential buyer. If your website looks like it was designed by a barrel of colorblind monkeys, your chance at making a good first impression will be lost.
One of the great things about the Internet is that it has leveled the playing field when it comes to competing with the big boys. As mentioned, you have one shot at making a good first impression and with a well-designed website, your little operation can project the image and professionalism of a much larger company. The inverse is also true. I’ve seen many big company websites that were so badly designed and hard to navigate that they completely lacked professionalism and credibility. Good for you, too bad for them.
You also mention that yours is a small operation, but when it comes to benefiting from a website, size does not matter. I don’t care if you are a one-man show or a ten thousand employee corporate giant; if you do not have a website you are losing business to other companies that do. Here’s the exception to my rule: It’s actually better to have no website at all than to have one that makes your business look bad.
Your website speaks volumes about your business. It either says, “Hey, look, we take our business so seriously that we have created this wonderful website for our customers!” or it says, “Hey, look, I let my ten-year old nephew design my site! Good luck finding anything!”
What does your website say about your business?
Here’s to your success.
Permalink
07.31.07
Posted in Reselling at 6:18 am by jim
Whether doing my weekly radio show, teaching entrepreneurial classes, or doing personal coaching, I talk to a lot of would-be entrepreneurs these days and I’m discovering that many of them are suffering from what I call, “I Don’t Syndrome” or IDS.
IDS is a sad malady that affects many people who claim they want to start their own business, but never seem to get beyond just talking about it.
The symptoms of IDS are a lack of belief in themselves, a fear of failure and ridicule, a misguided belief that lots of money is required to start a business, and lousy time management skills. IDS can even cause an otherwise intelligent person to question their own sanity.
It’s a sad disease that prevents thousands of people every year from achieving their American Dream.
But there is hope. IDS can be cured simply by facing it head on and accepting the fact that not everyone is cut out to be an entrepreneur. Don’t beat yourself up if you’re more comfortable working for someone else. Just accept the fact that business is not for you and strive to be the absolute best employee you can be and you’ll achieve success in that arena.
If you’re dead-set on starting your own business and IDS is keeping you up at night, consider the following symptoms and suggested cures.
“I don’t have time to start a business.”
I hear this one all the time from people who spend five hours a night parked in front of the TV. Sorry, couch potato, you get zero sympathy from me. You must make time for what’s important to you, so if starting your own business is important to you, find the time to make it happen.
I started my business from the corner of my tiny bedroom working between the hours of ten at night till whenever I passed out in the wee hours of the morning. Then I’d get up and be at my day job at 8AM. I’d work on the business during my lunch hour and on weekends.
There are only so many hours in the day so you have to make the best use of what God gave you. When a spare minute pops up use it to work on your business; otherwise grab the remote and keep your day job.
“I don’t have the money to start a business.”
Many people are under the misconception that starting a business requires piles of cash. Nothing could be further from the truth.
I’d wager that many of the Forbes 100 were started for less than $10,000; many for less than $1,000. When you start a business you should do so for as little money as possible. Put what money you have toward the things that are vital and backburner everything else.
Become an expert at stretching every dollar until it screams. Instead of tying up your money in inventory try to negotiate 90 day terms with suppliers.
Instead of buying fancy desk chairs park your can on a milk crate until money starts rolling in. Instead of signing a lease for office space that will tie up your first born for five years work from your kitchen table.
“I don’t have the confidence to start a business.”
When I hear this one I know immediately that I’m talking to someone who will probably never even start a business.
Let’s be honest, everyone would start their own business if they had a 100% guarantee of success, but very few people would bet the farm on starting their own business knowing that most small businesses fail within the first five years.
I knew that statistic going in and so did every other entrepreneur who threw caution to the wind and dove in with both feet.
Fear of failure is the number one killer of success. But understand this: if you never fail, you will never succeed.
“I don’t think I’m smart enough to start a business.”
If starting a business was rocket science all businesses would be owned by rocket scientists. You don’t need an MBA to start a business. Many entrepreneurs, including me, never even went to college. I drove by a college once. It looked really hard so I kept going.
Business success depends more on common sense and careful planning than book smarts. Don’t cut yourself short just because you don’t have a degree on your wall or an acronym after your name.
“I don’t have the self-discipline to start a business.”
This is the most deadly symptom of IDS because it reveals the truth about the person making the statement. Succeeding in business is all about taking action without being told to do so.
You’re the guy or gal that makes things happen. You must have the self-discipline to jump out of bed every morning ready to take on the world, which may mean calling on customers, managing employees, making important decisions, and working 18 hours straight if that’s what the day requires. If you have to be told what to do and when to do it, business is not for you.
You can overcome IDS. All it takes is a little honesty and self-realization.
And sometimes a good swift kick in the pants.
Consider yourself kicked.
Permalink
07.27.07
Posted in Reselling at 6:08 am by jim
As we begin the last quarter of the year I always like to take a fresh look at everything I’m doing.
Are writing, speaking, being on radio, creating new products, coaching, connecting people and spending time with family and friends all activities that embrace my “calling,” my purpose for being here on earth?
Or have I allowed some things to creep in that are nothing more than income generators, or just worthless habits that I need to stop doing.
My goal is to determine by November 15th what 15% of my current activities that I’m going to stop. I’ve been doing this for years and have found it to be a extremely helpful process. By eliminating 15% I then open the door to bring in a new 15%.
And it’s in that new window that I was able to begin writing, starting the 48 Day Coaching Connection, enjoying unique excursions with Joanne, attending enlightening seminars and spending time at a monastery.
What about you? Are all of your activities connected to your divine purpose? Are your work and your lifestyle a reflection of your values – or have you been so busy making a living that you’ve forgotten to have a life? Are you cut off from your calling and your heart in a futile attempt to be “practical” and “responsible?”
Several years ago I spoke with a young man who was running ads in Sunday papers, “offering” jobs with the government.
He promotes highly paid positions and says jobs are waiting. Then when calls come in, the callers are high pressured into buying a course to help them prepare for the civil service exam. No jobs, no openings – just an emotional hook to get desperate people on the phone – and then manipulate them into spending money to prepare for an exam they could probably take today.
This guy feels pretty bad about what he’s doing – and only plans to do it for a couple more years. He’s making $4,000 – $6,000 a week and figures he’ll be able to do some worthwhile things with all the money he’s making.
I know another gentleman who publicly announced in church that he was going to do a reverse tithe. He was going to live on 10% of his income and give 90% to the church.
He promoted miracle medical cures, a credit repair system, and a product that addressed a loophole in the law – ran national TV ads and brought in money by the truckload.
His promotions promised things that really weren’t quite true – but he proudly gave enormous sums of money to his church for worthwhile ministries. Then to the horror of his family and friends he spent a couple of years in prison for mail fraud.
Not exactly the kind of legacy most of us want to leave.
What do you need to stop doing – to once again find what Thomas Merton described as that “hidden wholeness?”
What should you be planning for in 2008 that will finally release your true brilliance?
Are there adjustments needed in your work, your relationships, and your thinking?
It takes courage to break free from habits, traditions and unhealthy expectations. It takes courage to live out our calling, to unleash our creativity and unique genius. It takes courage to turn away from the pack and launch out in a new, inspired direction.
But then your heart can sing, you can look people directly in the eyes and be confident of the value of your work.
If someone has to lose for you to win, you’re in the wrong business.
Permalink
07.24.07
Posted in Reselling at 6:18 am by jim
The last time we met I told you about the U.S. Department of Labor’s prediction that within the next ten to fifteen years fifty percent of the American workforce will consist of home workers, independent contractors, consultants, telecommuters, freelancers, and of course, entrepreneurs.
Think about that for a moment, especially if you are a diehard nine-to-fiver who can’t imagine yourself leaving the comfort of a regular job to try something different.
The workplace of the future is either going to be an exciting or dreadful place, and it’s up to you which side of the coin you fall on.
You see, what the Labor Department doesn’t say, but I believe to be true, is that those who find themselves earning a living in non-traditional careers will do so for one of two reasons: they either freely chose to throw off the shackles of the traditional nine-to-five or they were forced to do so because they were casualties of the future’s changing work models.
Layoffs, downsizing, outsourcing, work force reduction, and position elimination: all very nice politically-correct terms that mean one thing: you had better be open to changing the way you think about work because, my brothers and sisters, the times they are a’ changing.
The point of our discussion last time focused on those of you who may one day choose the entrepreneurial path.
There is a process for going from worker bee to entrepreneur wannabe and it begins with a healthy dose of self-assessment (look inward to determine if you have what it takes to be an entrepreneur) followed by the determination of what kind of business best suits your situation and personality, how you will fund the business, and the writing of a solid business plan.
Now let’s talk about the nuts and bolts of the process: finding a location, lining up vendors, hiring and managing employees, dealing with customers, creating a marketing strategy … hmm, this could turn into a very long column. Let me see if I can abbreviate the process in four paragraphs or less.
If your business will be a brick and mortar, nothing is as important as location.
What might be a great location for a shoe store might be a horrible location for a donut shop.
What may appear to be a busy location in the morning might be a ghost town in the afternoon. You should rely on experts for this important piece of the process.
Work with a commercial realtor or business broker to find a location that meets your specific needs.
Next, if yours will be a product-driven business, your success could hinge on the quality, price, and availability of the products you sell.
You must establish strong relationships with reliable vendors who can provide an ample supply of the products your customers demand.
Always be cultivating relationships with new vendors. Never rely on a single source for products because sources have a tendency to dry up over time.
Next comes the hiring and managing of employees. Like your location and product, employees can make or break your business.
Knowledgeable employees who know the value of - and deliver - exceptional customer service are like nuggets of gold. Unfortunately, they are also as hard to find.
Don’t hire your wife’s brother or your best friend’s son. It’s easier to find a new best friend than a new customer.
Hire based on experience and expertise and train every employee well. Set expectations high and most important of all, lead by example, not by the book.
Finally, the big question: if you build it will they come? Afraid not, my new entrepreneur friend. You must have a killer marketing plan that will bring the world – or at least your piece of the world - to your door.
You can have the best product in the world, but if you don’t tell anyone about it, you won’t sell a thing.
Creating a killer marketing plan really isn’t that hard. Just ask yourself questions like: who is my target customer and what is the best way to reach them? What can I do to stand out from the crowd? What can I do differently? How can I get noticed? And how can I do that without spending an arm and leg on advertising?
Permalink
07.20.07
Posted in Reselling at 6:37 am by jim
Ladies and gentleman, meet Mo, Larry, and Curly Entrepreneur. These fine fellows are here today to help answer the age old question: Why do some entrepreneurs achieve stellar success while others achieve only moderate success while still others fail in business miserably?
To level the playing field let’s pretend that each of our wily entrepreneurs all started their businesses on the exact same day, selling the exact same product at the exact same price. Let’s also pretend that they started their businesses from identical locations, with the exact same resources and funding, and with the exact same opportunities and odds for success.
Even when starting from the same place at the same point in time with the same resources and same opportunities, the results vary widely; some entrepreneurs succeed in an amazing way and others do not.
Why then does one entrepreneur, in this case Curly because he is my favorite Stooge, reach the stars while most Stooges never make it off the ground? Why does Curly get to give the crowd a “Woop, woop, woop!” while accepting the Chamber’s Small Business of the Year Award while Mo and Larry have to work as waiters at the event to help pay their bills?
Great questions, but before we explore the answers let’s take it a step further. Let’s vary the equation since no two business startups are ever really the same. Could the difference in the level of success achieved be a result of the amount of financial backing each Stooge had? Could it be that one entrepreneur was simply smarter than the others (probably not in Curly’s case)? Or perhaps it was just good old dumb luck that made the difference. Or maybe God was just tired of Mo and Larry pushing Curly around and punished them with failing businesses akin to Lot’s House of Salt.
Stooges aside, there is a very simple reason some entrepreneurs do amazingly well in business while others do not. It has nothing to do with product or location or backing or education or street smarts or dumb luck.
It’s because those who succeed in an amazing way are willing to do whatever it takes – for as long as it takes - to make their dreams come true. Those who are unwilling to do whatever it takes will ultimately fail. That’s it, end of story, thank you, drive through.
I hear it all the time from students in the entrepreneurial classes I teach and from folks who call into the radio show and from consulting clients who call my office wanting to know why their businesses are tanking.
“Tim, I’m doing everything I possibly can and the business is about to go under!”
I listen and say, “Mm hmm,” in all the appropriate places, but inevitably when I ask, “Well, are you doing this, this, this, and this,” the answer usually comes back, “No, no, no, and no.”
The bottomline is this: Curly shoots for the moon and hits it while Mo and Larry talk the talk, but fail to walk the walk. Very few people are willing to do whatever it takes for as long as it takes to succeed in business. That’s why so many businesses fail; they are started by Stooges (bless their hearts) who have no business being in business. Period.
Before you even think about starting a business ask yourself this question: are you willing to do whatever it takes for as long as it takes to succeed in business? Would you be willing to work for a year without a regular paycheck? Would you be willing to perform every task imaginable? Would you clean the toilets, mop the floors, take out the trash, wash the windows, clean out a grease trap, flip burgers, pour drinks, and deal with customers for hours on end?
Would you stay up all night writing a proposal that you have a slim chance of winning and spend the entire next day cold calling clients who won’t give you the time of day?
Would you sell your car and mortgage your house and live on rice and beans for a year to fund the business? And if that money ran out would you think up creative ways to keep the doors open or would you just shut the doors and crawl home with your tail tucked between your legs?
And would you put your last ounce of blood, sweat and tears into a dream that might or might not come true?
If the answer to any of these questions is maybe, I don’t know, or just no, I want you to hold up your hand and stick out two fingers, then poke yourself in the eyes with them.
Then repeat after me, “Why I oughta… keep my day job.”
Permalink
07.17.07
Posted in Reselling at 7:06 am by jim
How many times have you said, “If I only knew then what I know now?”
We’ve all wished that we could go back in time with our heads full of knowledge and our belts busting with experience and do it all over again.
The proverbial “second chance” is something we’ve all wished for - some of us more than others. Imagine how different our lives would be if we came equipped with unlimited “do overs.”
You could avoid the mistakes you previously made and build on the successes you previously enjoyed.
You could nurture the positive relationships and avoid the bad.
You could tap into your wealth of experience during times of indecision and always know where and when your time and money would be best spent.
Now apply that question to your business. What would you do if you had the opportunity to build your business all over again, but do so with the wisdom gained from building the business all these past years?
If you could take the knowledge and experience gained from years of running your business, as well as your credibility, good name, and customer list, and start anew from square one what would you do?
Oh, and did I mention that you had a nice check to fund it all this time so you won’t have to scrimp and save and bootstrap your way back to the top?
Here’s why I’m posing this question: a few weeks ago a young business here in Huntsville was destroyed by fire. It was a devastating loss for the owners who could do nothing but stand by and watch as years of hard work went up in flames.
The fire destroyed the building, some equipment and inventory. The business was insured and the owners have already vowed to rebuild, which means the fire did not destroy the business itself, only the physical aspects of it.
Brick and mortar and inventory do not a business make. Brick and mortar house the business. Inventory brings the business revenue, but the heart of the business – the spirit and soul and purpose – lives inside the entrepreneur building that business.
If the entrepreneur survives and rebuilds, so survives the business.
Starting over can be tough even with an insurance check to fund it all, but I hope these entrepreneurs understand that this is an opportunity to take the lessons learned over the last few years and put them to work for the future.
This is a chance to do all the things they always talked about that they should have done differently in the beginning.
So back to the original question: if you could go back and rebuild your business knowing what you know now, with an insurance check to fund it, what would you do differently and what would you do the same?
Let me put it into perspective for you. Imagine building your dream home and living in it for a few years until one day the house is destroyed by fire. A devastating loss, no doubt, but no one is injured and everything is insured.
You now have to make a decision; will you build the exact same house or build a different house that takes into account all the things you wanted to change about the old house.
Maybe after living there for a few years you discovered that you should have put in a downstairs bathroom or added more closet space in the master bedroom.
Maybe the kitchen was too small or the laundry room too large. Now you have the chance to rebuild your dream home with all the lessons learned from years of living in the house.
So to these entrepreneurs who are living this experience, I encourage you to keep the faith and keep looking toward the future.
I understand that you felt completely helpless watching that fire engulf the building. I know that you are now mourning the business as if you’d lost a close friend. But please, keep in mind that disaster gives rise to opportunity.
Rise from the ashes, become the Phoenix. Rebuild your business into something truly amazing.
We’ll all be with you as you do.
Permalink
07.10.07
Posted in Reselling at 6:56 am by jim
Q: I was contacted by the city tax collector to say that my business is scheduled to be audited to see if I owe sales tax on items purchased on the Internet. Can they really make me pay sales tax on internet purchase? I thought you could buy things online tax free? — Charlie B.
A: Sorry, but your local municipality is well within its rights to audit your business to identify items purchased online. The city can also demand payment of sales tax on those items if sales tax was not previously paid. Don’t be surprised if the auditor asks for access to your books and to see purchase receipts and invoices for at least the past year.
One of my companies recently underwent such an audit and it really was not as painful as you might think. Being a software company, the majority of our online purchases were for computer equipment, technical manuals, and software development tools. Since we purchase computers from a large supplier who collects sales tax at the point of sale (ditto for the development tools), the only sales tax we ended up owing was for an inordinate number of technical manuals and books purchased at Amazon.com.
If your small business is like most, the majority of your large purchases are made locally from companies that already collect sales tax. Furniture and computer equipment are typically the largest ticket items a small business buys, so unless you bought your desks and computers off of Ebay (which is highly possible these days) you should be OK.
Internet sales taxation has been a topic of contention even before Amazon sold its first book and Priceline booked its first flight. One of the more controversial points is that no one, including our own government, seems to have a clue how to implement a fair and logical Internet taxation process. With over 7,500 different local, county and state taxation systems in the United States, you can understand the controversy.
In 1998, Congress did what it usually does when faced with a potentially explosive issue like Internet tax collection — it decided to put off making a decision. Congress enacted a three-year moratorium on the collection of taxes to give an appointed advisory board time to come up with an acceptable solution. That moratorium ended in 2002 and opened the door for municipalities to begin collecting sales tax on their own.
Here in Alabama the state sales tax collection department has aired radio spots asking Alabamians to step up to - and toss dollars into - the proverbial collection plate. The commercial kindly suggests that if I have purchased anything from an online retailer, I am honor-bound to proclaim such purchases and submit the appropriate sales tax to the collection department right away. They thank me in advance for my cooperation.
So, Charlie, when the auditor shows up at your door the best thing you can do is smile politely and be totally forthcoming. The sales tax that you pay is a small price for the convenience of shopping online.
Or at least that’s what you should tell yourself as you write the auditor a check.
Permalink
07.03.07
Posted in Reselling at 6:20 am by jim
We get a lot of questions regarding inventions: Where do I start? How can I sell my idea? Is it legal? How can I know that I am not infringing on someone else’s patent? Do I need a patent?
While we cannot address all these questions here, let me get you started.
If an invention is going to make money, it must be more than just a good idea. Store shelves are already filled to capacity, so a new product must be outstanding to attract customer’s attention.
Watchdog agencies like the U. S. Food and Drug Administration, OSHA, and the Underwriter’s Laboratory are watching to make sure any new product conforms to local, state, and federal laws. Does your product have safety concerns?
Know your potential customers.
Is the market for your product growing or shrinking? A few years ago a lady started mixing flour and clear finger nail polish. Four years later she sold that company to the Gillette company for $42 Million dollars. Today the market for Liquid Paper or White Out is shrinking, not growing.
Do you need a Patent?
Many people waste time and money pursuing a patent, convinced that if they can get a patent, they will be rich. No, you can get a patent on anything that has not be patented before. Thus, you could get a patent on square wooden wheels, but I doubt that anyone would want to BUY them.
A patent here does not protect you from someone in Taiwan duplicating what you have done and selling it here. Many times it is wiser to spend your time developing your MARKETING plan rather than protecting your idea.
To check out trademarks, patents and copyrights, you can go to: www.uspto.gov This is the official government site and you can do your research right here.
Another helpful site is www.firstuse.com. Here you can register your idea or product and have some record that you did in fact have this idea as of this date.
Check this site for the Inventors Workshop International. Information and counseling is provided to individual inventors: www.vitalview.com/ideahelp
Be careful of Independent Product Developers (IDPs) Many will lead you down the rosy red path telling you your idea is the greatest thing since peanut butter when all they are doing is extracting your dollars.
Permalink
06.26.07
Posted in Reselling at 6:40 am by jim
What is the attraction to start-up entrepreneurial businesses?
More and more Americans are looking for greater control of their destinies and for the chance to apply personal skills to earn income. Most people are not as interested in material wealth as they are in time freedom.
According to the Small Business Administration (SBA), 60 percent of all families will have some type of home business by the year 2002. Over 800,000 Americans are starting their own businesses each year and that number is growing.
What are the key ingredients for success?
The ability to Plan, Organize and Communicate. And remember, 85% of your success will originate from your people skills — attitude, enthusiasm, self-discipline, and 15% will be due to your technical skills.
Don’t most new businesses fail?
Once upon a time, someone churned out the statistic that 4 out of 5 small businesses fail in their first five years of operation.
No one can trace the source of this mysterious figure, and not only is it illogical, it is totally untrue.
According to a Dun & Bradstreet census of 250,000 businesses, almost 70% of all firms that started were still around ten years later. The study pinpointed the true failure rate at less than 1% of all businesses per year.
Currently, we are gathering new information that helps us understand the information about businesses staying in business. Knowing the characteristics of entrepreneurs, they often simply choose to close a business and go on to a new one.
That does not mean that the old business was not successful or even unprofitable, they just choose to go on to a new venture.
What are the primary factors contributing to the failure of those that do fail?
Managerial incompetence: A: Sales & Marketing — 48%… B: Poor cost controls — 46%
Will we really see more and more small businesses?
Many of you have already experienced the downsizing of large corporations. IBM, General Motors and other American standards have cut their work forces dramatically. A recent article in Time announced an average of 1,963 job losses each day in America.
The good news is, since 1982 alone, the number of small businesses has grown by 50%, to approximately 24.5 million. In the last ten years small business has accounted for 71% of the nation’s new job growth, now adding over 2 million new jobs each year.
Small businesses employ 54% of the American work force. What we are seeing is a healthy return to the kind of business that started our country.
Are there any new ideas left to start?
Experts estimate that over 80% of the products and services that we use today will be obsolete in 5 years. The airplane, tape recorder, heart valve, soft contact lens, and personal computer were all new ideas in past years.
With the changes we are experiencing in today’s market, there are thousands of opportunities for new ideas.
Keep in mind that today there are over 2 Million people working in Internet related jobs. Ten years ago no one would have been able to foresee those opportunities.
What if I’m not creative?*
You don’t have to be original to be successful in business. If you can do something 10% better than it is currently being done or provide added value, you can be wildly successful.
When Dominos got in the pizza business, they did not make better or cheaper pizza, they simply added delivery to a very common product.
Meeting the desire for speed and convenience, Dominos created millionaires all across the country. Also, know that creativity is not a function of intelligence, it is a function of imagination.
If I share my idea, will someone steal it?
Ideas are a dime a dozen — It’s not even the quality of the idea but rather the quality of the action plan brought to that idea that determines success. Share your idea with others, get their input.
Try your idea on friends and family. Make one prototype and see if people will buy it. Then gear up for a business supporting that idea.
Should I buy a franchise, distributorship or business opportunity?
The attraction of these is that they are a tried system for a business concept.
Normally, that means a proven track to run on, marketing support and name recognition. But, buyer beware. Make sure you research carefully, so you don’t overpay for something you could do yourself.
Should I buy an existing business?
If we take an average business cost of $120K — will require $40-50K down for net of 35-45K, plus “deep pockets” for operating capital.
This is generally not a very attractive proposal. Yes, there are good deals on existing business, but look closely at why the business is being sold, and are you buying “blue sky” or “goodwill” or actual tangible assets.
Is there one characteristic that is central to business success?
The ability to sell — where there is no ability to sell, the finest product or service will fail.
It may be a passive method of marketing, but someone must be selling in one form or another.
Permalink
06.22.07
Posted in Reselling at 6:31 am by jim
If your business doesn’t stand out in today’s hyper-competitive market place there’s a good chance that you won’t be in business very long. There are countless others vying for the same slice of the pie that you are. There are dozens of competitors just up the road doing all they can to get the attention of your customers and take money out of your pockets.
It’s called “marketing,” and some are probably doing a better job of it than you are and some probably worse. What can you do to position your business as the one customers notice? The secret to effective marketing is: think creatively.
Case in point: like every other struggling writer on the planet, I’ve written a book that I would like to see on the shelves at Barnes & Nobles. Now I know that the only way I can get my book in front of a big time publisher is to have it submitted by an equally big time agent. And the chances of convincing a big time agent to represent me are about one in a bazillion. Most writers have a better chance of getting eaten by a shark in the Sahara than signing with an agent who gets them a big publishing deal. Being one to never let made up statistics stop me, I forged a creative marketing plan to make sure my book (my business) was noticed.
First thought: what’s the best way to get face time with a big time agent? I knew that the normal rules of marketing would do me no good. I couldn’t run a few radio spots or buy ads in the newspaper. I had to go where the agents were; in this case a book publishing convention in Orlando, Florida. I bought my ticket, booked my plane and hotel, and waited for the time to go to Orlando and pitch my book to every agent I could find. I was prepared to pitch them standing outside a bathroom stall door if necessary (no pride here).
Then it hit me: I’d probably have less than a minute to give these agents my elevator pitch. They would be swamped with every hack writer within a ten mile radius. I had to do something different. I had to market creatively.
I knew that every other Tom, Dick and John Grisham would be shoving business cards and tattered manuscripts at these guys, so I opted to do something different. I created a business card CD that had my picture on the outside and my manuscript on the inside. It looked like a business card, but when they popped it in their computer it brought up a nice presentation starring the work of yours truly.
Did my creative marketing work?
Every agent that I gave one of my handy dandy business card CDs to said the same thing, “That’s the coolest thing I’ve ever seen! Tell me more!”
Instead of having 30 seconds to pitch them, I suddenly had their attention for five, ten, fifteen minutes. They wanted to hear more about my amazing little CD and what it contained.
By marketing creatively I not only stood out from the crowd, I caught their attention; I piqued their interest, I engaged them in actual conversation instead of the fluff conversation they were saving for less creative marketers.
What was the result of my creative marketing? I signed with an agent who popped the CD in his computer on the flight home and liked what he saw. Will my book ever grace the shelves of bookstores?
I’m happy to say that “Everything I Know About Business I Learned From My Mama” is being published by John Wiley & Sons NY and will be on bookstore shelves this June.
The best book on creative marketing I’ve ever read is by one of my favorite authors, Joe Vitale. The book is called “There’s a Customer Born Every Minute: P.T. Barnum’s Secrets to Business Success” and is available at Joe’s website at MrFire.com.
The book details the groudbreaking marketing techniques of P.T. Barnum, the father of creative marketing.
Many people mistakenly think that Barnum’s claim to fame was the circus that bears his name. Actually, Barnum got into the circus business late in life, years after he had established himself as one of the most creative marketers on the planet.
Barnum’s pride and joy was his American Museum in New York City. And his passion was finding creative ways to market it.
He took a young midget, dubbed him Tom Thumb and made him a national sensation. He brought a pair of Siamese twins to speak at the museum who grew famous and rich from Barnum’s efforts. He had an elephant plow the field on his property because there was a railroad nearby and he knew that every passenger on the train would tell everyone they knew about seeing the elephant plowing his field.
Barnum received nationwide coverage of the event and some agricultural societies even wrote to ask his advice on training elephants to farm. Barnum knew that the only way to keep his museum in business was to market creatively.
How can you use creative marketing in your business?
What can you do to stand out from your competition? What can you do to grab the attention of potential customers and mesmerize them with your message?
Elephant farming may be a stretch, but I bet if you put your brain to it, you can think of something.
Permalink
06.19.07
Posted in Reselling at 5:59 am by jim
Working from home gives you two immediate bonuses: You don’t pay office rent and you don’t pay wear and tear on your car to commute.
No wonder that about 2 million people a year are deciding to work at home either part or full time.
Unfortunately, many are hesitant to promote what they are doing. Recognize you are running a business - not just working from home.
Here are some no-cost marketing tips you can do:
Offer Free Seminars
If you can speak with ease, you may be surprised at the value of free seminars on your topic or expertise. Up to 75% will become paying customers if it is done right.
Create A Brochure
Put a simple brochure together to give your customers a selection of your offerings. You can do this on your computer - you may want to use some customized border paper for a professional look: www.paperdirect.com
Creat A Professional Phone Message
Have a professional sounding message on your telephone when you are not able to answer. Don’t have your cute kids create the message. You will give the impression you are not a legitimate business. Have a message about your business if someone is put on hold. Here’s help: www.ohms.com
Write a column for a local newspaper.
Give Something Away
Procter & Gamble and Chick-Fil-A have become very successful doing this. If you sell gas grills, give one to the Big Brothers program - that’s a newsworthy event. An apartment complex stayed at 100% occupancy in a neighborhood where 71% was the average. They simply offered a free car wash once a week.
Thank Your Customers
Send a thank you note to your customers. You’ll create more “top of mind” positioning.
Expand Your Product and Services
Try to develop options. Give people at least three choices. Alternate choice has always been a powerful selling tool.
Permalink
06.15.07
