By Steve Strauss
Recently, I was chatting with my friend Rieva Lesonsky about what a challenge it is to own and run a small business in this economy. The topic was especially salient because , as we are both small business owners as well as writers and speakers on the subject, the Great Recession is effecting us in numerous ways.
You may have heard of Rieva. She is one of the top small business experts out there, but even if you have not, you have no doubt seen her work – for many years she was the editorial director of Entrepreneur Magazine and she wrote the bestselling book Start Your Own Business. When I look at her resume – being on The Today Show, Oprah, etc. – I get jealous. These days she is the CEO of GrowBiz Media, a content and consulting company specializing in covering small businesses and entrepreneurship.
So Rieva is someone who really knows her stuff and that is why I was happy to hear that she is conducting an online chat at Bank of America’s online small business community on the subject Navigating Your Small Business Through the Great Recession. The chat will be on Friday, July 16th at 2:00 p.m. est.
Sensing an opportunity to share her insights with my readers, I asked Rieva what she is telling people these days with regard to staying afloat and even getting ahead. She mentioned four things that she thinks can really make a difference right now:
1. Work smart: “Do not waste your time doing things you don’t have to do. Use your time wisely and concentrate your efforts on getting the biggest return on your investment of time,” Rieva counsels. “So, to the extent you can avoid it, avoid getting caught up in minutiae, especially minutiae that does nothing to help you grow your business.”
Rieva echoed the point made by Michael Gerber in his great book, The E- Myth. “Don’t spend your time working in your business,” she said, “work on your business.” As such, she thinks one of the smartest things you can do is to “use your time on things that make you money, and to the extent possible outsource or automate the other stuff.”
For example, she noted that something like doing payroll is probably not the best use of your time in times like these. (more)
Monday, July 13, 2009
FT: Self-made man who rescued Saatchi & Saatchi
By Simon Kuper
He conducted business meetings unshaven, tieless, smoking a cigar, with his stockinged feet on the table. Robert Louis-Dreyfus, who exuded charisma, died of leukaemia on July 4, aged 63, and could have gone through life as an heir of the family conglomerate.
Instead, the Franco-Swiss entrepreneur made his own fortune, and then another by rescuing Saatchi & Saatchi and Adidas. When he finally returned to the family business, it was as a self-made billionaire. His one failure in business was his football club, Olympique Marseille.
Louis-Dreyfus was born in Paris in 1946 into great wealth. The family business, founded in 1851 by his great-grandfather Leopold, had become a thriving conglomerate dealing largely in cereals, ships and weapons.
But Louis-Dreyfus did not want to be a mere heir. He was always his own man, and for many years a black sheep. He never passed his final school exams, something he liked to recall after graduating from Harvard Business School. He spent time on an Israeli kibbutz, and worked for family businesses in Brazil and the US.
In the early 1980s he joined IMS Health, a small American company that did market research in pharmaceuticals. When Dun & Bradstreet bought it for $1.7bn in 1988, he had made his own fortune. Louis-Dreyfus relaxed on Swiss ski slopes, but got bored. (more)
He conducted business meetings unshaven, tieless, smoking a cigar, with his stockinged feet on the table. Robert Louis-Dreyfus, who exuded charisma, died of leukaemia on July 4, aged 63, and could have gone through life as an heir of the family conglomerate.
Instead, the Franco-Swiss entrepreneur made his own fortune, and then another by rescuing Saatchi & Saatchi and Adidas. When he finally returned to the family business, it was as a self-made billionaire. His one failure in business was his football club, Olympique Marseille.
Louis-Dreyfus was born in Paris in 1946 into great wealth. The family business, founded in 1851 by his great-grandfather Leopold, had become a thriving conglomerate dealing largely in cereals, ships and weapons.
But Louis-Dreyfus did not want to be a mere heir. He was always his own man, and for many years a black sheep. He never passed his final school exams, something he liked to recall after graduating from Harvard Business School. He spent time on an Israeli kibbutz, and worked for family businesses in Brazil and the US.
In the early 1980s he joined IMS Health, a small American company that did market research in pharmaceuticals. When Dun & Bradstreet bought it for $1.7bn in 1988, he had made his own fortune. Louis-Dreyfus relaxed on Swiss ski slopes, but got bored. (more)
Sunday, July 12, 2009
Construction Week Online: US $1 Billion Water Project Brings Hope to Jordan
A new US $1 billion (JOD709.4 million) project is being set up in Jordan to help alleviate a sewer water shortage in the country’s capital city, Amman.
The Disi Water Conveyance Project includes the construction of a 325km pipeline that will drive water from the Disi aquifer in Mudawarra to the capital.
The project will be constructed thanks to funds that came from Gama Energy, a joint venture between Gama Holding and GE Energy Financial Services.The investment will create jobs and promote private sector participation in Jordan’s development. (link)
The Disi Water Conveyance Project includes the construction of a 325km pipeline that will drive water from the Disi aquifer in Mudawarra to the capital.
The project will be constructed thanks to funds that came from Gama Energy, a joint venture between Gama Holding and GE Energy Financial Services.The investment will create jobs and promote private sector participation in Jordan’s development. (link)
Small Business Trends: YouTube: Where Customers Get The Last Word
By Anita Campbell
Professional musician Dave Carroll spent nine months trying to get compensation from United Airlines to fix his $3,500 Taylor guitar after it was damaged by baggage handlers at O’Hare Airport. After getting the final “no” from United, he composed a 4-minute video called “United Breaks Guitars.”
He posted the video on YouTube. As of this writing it has had over 2.2 million views — and climbing. That’s in just 4 days’ time.
On his website Carroll describes what happened with his guitar in detail. Here’s the short summary in his own words:
“In the spring of 2008, Sons of Maxwell were traveling to Nebraska for a one-week tour and my Taylor guitar was witnessed being thrown by United Airlines baggage handlers in Chicago. I discovered later that the $3500 guitar was severely damaged. They didn’t deny the experience occurred but for nine months the various people I communicated with put the responsibility for dealing with the damage on everyone other than themselves and finally said they would do nothing to compensate me for my loss. So I promised the last person to finally say “no” to compensation (Ms. Irlweg) that I would write and produce three songs about my experience with United Airlines and make videos for each to be viewed online by anyone in the world. United: Song 1 is the first of those songs. United: Song 2 has been written and video production is underway. United: Song 3 is coming. I promise.”
Even consumers who don’t fly much or have a guitar identify with his plight. The lyrics of the country song capture the level of frustration that many customers feel when their complaint lands on deaf ears: (more)
Professional musician Dave Carroll spent nine months trying to get compensation from United Airlines to fix his $3,500 Taylor guitar after it was damaged by baggage handlers at O’Hare Airport. After getting the final “no” from United, he composed a 4-minute video called “United Breaks Guitars.”
He posted the video on YouTube. As of this writing it has had over 2.2 million views — and climbing. That’s in just 4 days’ time.
On his website Carroll describes what happened with his guitar in detail. Here’s the short summary in his own words:
“In the spring of 2008, Sons of Maxwell were traveling to Nebraska for a one-week tour and my Taylor guitar was witnessed being thrown by United Airlines baggage handlers in Chicago. I discovered later that the $3500 guitar was severely damaged. They didn’t deny the experience occurred but for nine months the various people I communicated with put the responsibility for dealing with the damage on everyone other than themselves and finally said they would do nothing to compensate me for my loss. So I promised the last person to finally say “no” to compensation (Ms. Irlweg) that I would write and produce three songs about my experience with United Airlines and make videos for each to be viewed online by anyone in the world. United: Song 1 is the first of those songs. United: Song 2 has been written and video production is underway. United: Song 3 is coming. I promise.”
Even consumers who don’t fly much or have a guitar identify with his plight. The lyrics of the country song capture the level of frustration that many customers feel when their complaint lands on deaf ears: (more)
BusinessWeek: The Pros and Cons of Co-Branding
By Steve McKee
The moment Roger Penske announced his planned acquisition of the Saturn brand from GM, Saturn dealerships around the country initiated a spontaneous and organic co-branding campaign, erecting banners and billboards to celebrate the alliance.
Saturn of Wichita's advertising proudly proclaimed: "Finally, a car guy owns a car company." Scott Davies, owner of the dealership, explained the resulting traffic increase by saying: "People want to buy from someone they like. A lot of customers won't buy a car from GM, but they will buy a car from Roger Penske." That's why Davies—and many other dealers like him—were so
eager to associate Saturn with Penske.
It was an odd and unintentional (at least from GM's perspective) co-branding effort, but it paid off. Saturn's marketing director, Kim McGill, said the Penske announcement led to a 35% sales jump in June over the prior year. (more)
The moment Roger Penske announced his planned acquisition of the Saturn brand from GM, Saturn dealerships around the country initiated a spontaneous and organic co-branding campaign, erecting banners and billboards to celebrate the alliance.
Saturn of Wichita's advertising proudly proclaimed: "Finally, a car guy owns a car company." Scott Davies, owner of the dealership, explained the resulting traffic increase by saying: "People want to buy from someone they like. A lot of customers won't buy a car from GM, but they will buy a car from Roger Penske." That's why Davies—and many other dealers like him—were so
eager to associate Saturn with Penske.
It was an odd and unintentional (at least from GM's perspective) co-branding effort, but it paid off. Saturn's marketing director, Kim McGill, said the Penske announcement led to a 35% sales jump in June over the prior year. (more)
BusinessWeek: The Anatomy of an Entrepreneur
By Nick Leiber
When Ken Rapp was 16 years old, his mom died of malignant melanoma. Her death made him wonder why, with all the advances in science, there was no cure for the disease. So 10 years ago, at the age of 37, Rapp used his 14 years working as an engineer and sales manager for laboratory automation and robotics maker Zymark (CALP), to start his own company to facilitate pharmaceutical breakthroughs. Today his Hopkinton, Mass.-based company, VelQuest, sells software and other products designed to streamline the recording process and increase the speed by which medicines go to market. Clients include Pfizer (PFE) and Eli Lilly (LLY). Rapp says the company’s 2008 revenue was up 50% from 2007.
But it was not just his heartfelt idea that played a role in his decision to pursue entrepreneurship, a new study released by the Kauffman Foundation on July 8 suggests: his family background also improved the odds. Indeed, the study, similar to another Kauffman report released in June, found that the makeup of entrepreneurs running high-growth companies goes against the stereotype of a young college dropout (think Bill Gates and Steve Jobs).
The study, titled “The Anatomy of an Entrepreneur,” led by co-authors Vivek Wadhwa, Raj Aggarwal, Krisztina “Z” Holly, and former BusinessWeek tech editor Alex Salkever is an attempt to get a feel for the background and motivation of American entrepreneurs, including their level of education, socioeconomic status, and work experience. The team set out to uncover what makes entrepreneurs across high-growth industries tick, surveying 549 successful business founders between August 2008 and March 2009. The study found they were 40 years old on average when they started their first companies. About 90% were well-educated and came from middle-class or upper-lower-class backgrounds. (more)
When Ken Rapp was 16 years old, his mom died of malignant melanoma. Her death made him wonder why, with all the advances in science, there was no cure for the disease. So 10 years ago, at the age of 37, Rapp used his 14 years working as an engineer and sales manager for laboratory automation and robotics maker Zymark (CALP), to start his own company to facilitate pharmaceutical breakthroughs. Today his Hopkinton, Mass.-based company, VelQuest, sells software and other products designed to streamline the recording process and increase the speed by which medicines go to market. Clients include Pfizer (PFE) and Eli Lilly (LLY). Rapp says the company’s 2008 revenue was up 50% from 2007.
But it was not just his heartfelt idea that played a role in his decision to pursue entrepreneurship, a new study released by the Kauffman Foundation on July 8 suggests: his family background also improved the odds. Indeed, the study, similar to another Kauffman report released in June, found that the makeup of entrepreneurs running high-growth companies goes against the stereotype of a young college dropout (think Bill Gates and Steve Jobs).
The study, titled “The Anatomy of an Entrepreneur,” led by co-authors Vivek Wadhwa, Raj Aggarwal, Krisztina “Z” Holly, and former BusinessWeek tech editor Alex Salkever is an attempt to get a feel for the background and motivation of American entrepreneurs, including their level of education, socioeconomic status, and work experience. The team set out to uncover what makes entrepreneurs across high-growth industries tick, surveying 549 successful business founders between August 2008 and March 2009. The study found they were 40 years old on average when they started their first companies. About 90% were well-educated and came from middle-class or upper-lower-class backgrounds. (more)
The Entrepreneurial Mind: Young Entrepreneurs Award Nominations Open
By Jeff Cornwall
Business Week is taking nominations for their annual America's Best Young Entrepreneurs roundup through Aug. 16. If you know of companies run by entrepreneurs age 25 or younger, you can nominate them at http://bit.ly/BWYoung.
They are looking for ventures that are fully operational - not just idea stage - and all of the founders must be 25 or under at the time of nomination. Feel free to nominate more than one company, and there's no need to submit the same firm more than once.
Business Week is taking nominations for their annual America's Best Young Entrepreneurs roundup through Aug. 16. If you know of companies run by entrepreneurs age 25 or younger, you can nominate them at http://bit.ly/BWYoung.
They are looking for ventures that are fully operational - not just idea stage - and all of the founders must be 25 or under at the time of nomination. Feel free to nominate more than one company, and there's no need to submit the same firm more than once.
London South East: Jordan central bank says is running Capital Bank
By Suleiman al-Khalidi
AMMAN, July 10 (Reuters) - Jordan's central bank has taken over the management of Capital Bank after disputes within its board that would have threatened the bank's solid financial position, the central bank governor said on Friday.
Umayya Toukan said in a statement the monetary authorities decided to dissolve the current board of the bank and set up a temporary management committee under his supervision to run its operations for six months.
'The bank's financial position is good. The matter relates to administrative violations. Dissolving the board is a precautionary move as fears had grown of the negative impact of continued divisions within the bank's board that would affect the bank's performance,' Toukan said.
Jordan's monetary authorities would not hesitate to act decisively and adopt any measures to preserve the financial soundness of the banking sector, Toukan said. 'This is especially so at this phase of the global financial crisis. This move will help the economy to continue to effectively handle the repercussions of the global crisis,' Toukan said.
The bank's shares will be suspended from trading as of next Sunday, when weekly trading at the Amman bourse begins. An Iraqi investor, Hassan Kubah, a scion of an old merchant family which owns Basra International Bank for Investment, along with a group of Arab investors last January took 49 percent of the bank after buying out leading Jordanian investors. (more)
AMMAN, July 10 (Reuters) - Jordan's central bank has taken over the management of Capital Bank after disputes within its board that would have threatened the bank's solid financial position, the central bank governor said on Friday.
Umayya Toukan said in a statement the monetary authorities decided to dissolve the current board of the bank and set up a temporary management committee under his supervision to run its operations for six months.
'The bank's financial position is good. The matter relates to administrative violations. Dissolving the board is a precautionary move as fears had grown of the negative impact of continued divisions within the bank's board that would affect the bank's performance,' Toukan said.
Jordan's monetary authorities would not hesitate to act decisively and adopt any measures to preserve the financial soundness of the banking sector, Toukan said. 'This is especially so at this phase of the global financial crisis. This move will help the economy to continue to effectively handle the repercussions of the global crisis,' Toukan said.
The bank's shares will be suspended from trading as of next Sunday, when weekly trading at the Amman bourse begins. An Iraqi investor, Hassan Kubah, a scion of an old merchant family which owns Basra International Bank for Investment, along with a group of Arab investors last January took 49 percent of the bank after buying out leading Jordanian investors. (more)
Inc.: Seniors Starting Most Businesses
By Keaton Gray
An increasing amount of older Americans are staring their own businesses, reveals a recent survey by the Bureau of Labor Statistics, which found that the largest group of newly self-employed individuals are those age 65 and up.
Between November of 2007 and May of 2009, the percentage of Americans age 65 or older who are self-employed rose from 16 percent to 18 percent. Following at a distant second were those age 16 to19, growing from 1 percent to 2 percent.
Although the oldest segment of the population has long been the most likely to be self-employed, some might find it surprising that it is also the fastest growing segment of entrepreneurs. (more)
An increasing amount of older Americans are staring their own businesses, reveals a recent survey by the Bureau of Labor Statistics, which found that the largest group of newly self-employed individuals are those age 65 and up.
Between November of 2007 and May of 2009, the percentage of Americans age 65 or older who are self-employed rose from 16 percent to 18 percent. Following at a distant second were those age 16 to19, growing from 1 percent to 2 percent.
Although the oldest segment of the population has long been the most likely to be self-employed, some might find it surprising that it is also the fastest growing segment of entrepreneurs. (more)
Inc.: A Father's Cause Aids Disabled Entrepreneurs
By Meredith Maines
Peter Schoemann, a practicing lawyer in Orlando, often works late nights, early mornings and weekends, but he's not just hunting down evidentiary support. Because his two sons are diagnosed as high-functioning autistic, Schoemann's been toiling away for the Advocacy Board for Persons with Disabilities. It was on this board that he formulated the idea to launch a chamber of commerce geared toward entrepreneurially-inclined people with disabilities.
"With my background, I thought I could help make a difference, certainly one that could be available to my children [when they're older]," he said.
Now two years in the making, Schoemann's Chamber of Commerce for Persons with Disabilities has provided a place where business owners and their direct caregivers can network. In March, it partnered with the Disney Entrepreneur Center, and relocated its offices to Disney's downtown-Orlando facility. But Schoemann doesn't want to settle for only a regional influence. He plans to take the Chamber to a national level, rolling out other offices by the end of the summer.
"I want the national organization to be the true umbrella for the local chambers so they can [compete] for the national sponsorships and national grants," Schoemann said. (more)
Peter Schoemann, a practicing lawyer in Orlando, often works late nights, early mornings and weekends, but he's not just hunting down evidentiary support. Because his two sons are diagnosed as high-functioning autistic, Schoemann's been toiling away for the Advocacy Board for Persons with Disabilities. It was on this board that he formulated the idea to launch a chamber of commerce geared toward entrepreneurially-inclined people with disabilities.
"With my background, I thought I could help make a difference, certainly one that could be available to my children [when they're older]," he said.
Now two years in the making, Schoemann's Chamber of Commerce for Persons with Disabilities has provided a place where business owners and their direct caregivers can network. In March, it partnered with the Disney Entrepreneur Center, and relocated its offices to Disney's downtown-Orlando facility. But Schoemann doesn't want to settle for only a regional influence. He plans to take the Chamber to a national level, rolling out other offices by the end of the summer.
"I want the national organization to be the true umbrella for the local chambers so they can [compete] for the national sponsorships and national grants," Schoemann said. (more)
Entrepreneur: Cultivate Your Online Reputation
By Jennifer Wang
If you haven't been paying attention to your online reviews, it's probably time to start. This morning, RatePoint, a firm that provides businesses with online reputation management tools, revealed the results of a survey illustrating the importance of customer feedback.
Nearly 25 percent of respondents said online reviews benefited their businesses, and only four percent indicated a negative impact. And not only are reviews six times more likely to help a business, but the numbers also imply a correlation between good testimonials and business growth: 71 percent of small-business owners who said they didn't know the impact of an online review reported a decline in business; but 55 percent who stated reviews had a positive effect perceived either no change or positive growth.
So in plain-speak, what's the significance of a business's online reputation? I asked RatePoint CEO Neal Creighton to explain.
Why are customer reviews so important?
It's the No. 1 customer retention and acquisition tool you can use on the internet today. The statistic is that more than 70 percent of consumers look for reviews, and the number should probably be higher than that. (more)
If you haven't been paying attention to your online reviews, it's probably time to start. This morning, RatePoint, a firm that provides businesses with online reputation management tools, revealed the results of a survey illustrating the importance of customer feedback.
Nearly 25 percent of respondents said online reviews benefited their businesses, and only four percent indicated a negative impact. And not only are reviews six times more likely to help a business, but the numbers also imply a correlation between good testimonials and business growth: 71 percent of small-business owners who said they didn't know the impact of an online review reported a decline in business; but 55 percent who stated reviews had a positive effect perceived either no change or positive growth.
So in plain-speak, what's the significance of a business's online reputation? I asked RatePoint CEO Neal Creighton to explain.
Why are customer reviews so important?
It's the No. 1 customer retention and acquisition tool you can use on the internet today. The statistic is that more than 70 percent of consumers look for reviews, and the number should probably be higher than that. (more)
Mixergy: Don’t Be Bullied By Your Board And Other Lessons From A Funded Startup. – With Brandon Watson
By Andrew Warner
Have you noticed how some entrepreneurs look at getting funding as the ultimate sign of success? Not only is funding not the finish line, but the mistakes you make when you get investors can cost you when you finally do get to the finish line and are ready to sell your company.
Brandon Watson came to Mixergy to talk about how he raised money for his startup, how he grew it, and why he had to sell it. The two most powerful points of this program for me was when he told us how his investors made money from his internet business, but he didn’t, and how having investors led him to decisions he wouldn’t have made otherwise.
Edited excerpts from the IMSafer story
The vision was to keep kids safe
IMSafer is a product to keep kids safe online. It’s designed for parents, by parents and it was meant to tackle the problem of kids building relationships online. Parents didn’t really have any tools to understand what their kids were doing on MySpace or chat rooms. Most of the product controls on the market were targeted at keeping kids away from pornography and they really weren’t focused on helping parents understand what their kids were doing online in chat rooms.
They were told the business won’t work
Parents like to talk about security products but they don’t want to pay for them. So we were told over and over again “No one’s making money here. No one can make money here. It’s a segment that’s languished forever, forget about it, walk away.”
Sure enough, after doing some research, we saw that no one had made any money. And so as a truly analytical business guy, I had to look at this and say, “Wow, no one’s making money. The market’s really hard to size. Kids are much more savvy about the products than their parents.
So they can install the things and the kids can turn it off. It’s kind of a useless product.” That creates challenges.
But they thought there was an opportunity
My VP of Engineering, Tommy, he looked at me and said “Well I’m not really sure I buy that thesis. I would argue that if there’s no money to be made there, then the IQ isn’t there, and if it’s been ten years that this market’s been around, call it ten years since NetNanny got bought, no new IQ has come into this space in a very long time, so I think we can run this place over.”
And so it was kind of that old statement, that bravado, that said, you know, I think we can make some real progress here. Let’s go see what problem we want to solve and see if we can do something new here.
They decided they needed investors
From the start we knew we needed to pay salaries. We looked at our wives dead in the eyes and said, “Yeah, we’re making money somehow.” We need to raise some money. And before Tommy and Jason and David would join they kind of required that I be able to pay salaries. So we knew I’d go out and do some capital raising. (more)
Have you noticed how some entrepreneurs look at getting funding as the ultimate sign of success? Not only is funding not the finish line, but the mistakes you make when you get investors can cost you when you finally do get to the finish line and are ready to sell your company.
Brandon Watson came to Mixergy to talk about how he raised money for his startup, how he grew it, and why he had to sell it. The two most powerful points of this program for me was when he told us how his investors made money from his internet business, but he didn’t, and how having investors led him to decisions he wouldn’t have made otherwise.
Edited excerpts from the IMSafer story
The vision was to keep kids safe
IMSafer is a product to keep kids safe online. It’s designed for parents, by parents and it was meant to tackle the problem of kids building relationships online. Parents didn’t really have any tools to understand what their kids were doing on MySpace or chat rooms. Most of the product controls on the market were targeted at keeping kids away from pornography and they really weren’t focused on helping parents understand what their kids were doing online in chat rooms.
They were told the business won’t work
Parents like to talk about security products but they don’t want to pay for them. So we were told over and over again “No one’s making money here. No one can make money here. It’s a segment that’s languished forever, forget about it, walk away.”
Sure enough, after doing some research, we saw that no one had made any money. And so as a truly analytical business guy, I had to look at this and say, “Wow, no one’s making money. The market’s really hard to size. Kids are much more savvy about the products than their parents.
So they can install the things and the kids can turn it off. It’s kind of a useless product.” That creates challenges.
But they thought there was an opportunity
My VP of Engineering, Tommy, he looked at me and said “Well I’m not really sure I buy that thesis. I would argue that if there’s no money to be made there, then the IQ isn’t there, and if it’s been ten years that this market’s been around, call it ten years since NetNanny got bought, no new IQ has come into this space in a very long time, so I think we can run this place over.”
And so it was kind of that old statement, that bravado, that said, you know, I think we can make some real progress here. Let’s go see what problem we want to solve and see if we can do something new here.
They decided they needed investors
From the start we knew we needed to pay salaries. We looked at our wives dead in the eyes and said, “Yeah, we’re making money somehow.” We need to raise some money. And before Tommy and Jason and David would join they kind of required that I be able to pay salaries. So we knew I’d go out and do some capital raising. (more)
Small Biz Bee: 5 Reasons Why Your Email Marketing Is Not Working
As Smallbizbee.com has grown over the past 10 months, so has the number of emails in my inbox.
A good number of those emails are forms of marketing, and almost all of them miss the mark with me.
Email marketing can be an extremely powerful and effective way to reach your customers - if done correctly.
Reasons Your Email Marketing Isn't Working
Now, while I'm not claiming to be an email marketing expert, I can tell you why those who have marketed to me have nothing to show for their efforts. Here are the top five mistakes I see them making
1. No Relationship Built
Email marketing works best when the person recieving the email feels like they know you, trust you, and you have a relationship built with them to some degree
We read email from people we know, and skim or delete email from people we don't. Simple as that.
Business is built around relationships, with relationships come trust, and with trust comes sales. For some reason email marketers, and business using email to communicate with their target market forget this.
2. No "Pull"
There has to be a reason to keep reading, a pull for the reader to continue.
Unless you are sending me an email at the exact moment I am looking to buy what you're selling, just saying "Hey you - buy my stuff", isn't going to work. There's no pull.
The worst offenders will not only be lacking a pull, but will go on for 1000 words without one, essentially repeating over and over again why I should buy their stuff.
Give me a reason to keep reading, tell me a story, give me value, show me how you'll solve my problems, keep me interested in what you have to say. (more)
A good number of those emails are forms of marketing, and almost all of them miss the mark with me.
Email marketing can be an extremely powerful and effective way to reach your customers - if done correctly.
Reasons Your Email Marketing Isn't Working
Now, while I'm not claiming to be an email marketing expert, I can tell you why those who have marketed to me have nothing to show for their efforts. Here are the top five mistakes I see them making
1. No Relationship Built
Email marketing works best when the person recieving the email feels like they know you, trust you, and you have a relationship built with them to some degree
We read email from people we know, and skim or delete email from people we don't. Simple as that.
Business is built around relationships, with relationships come trust, and with trust comes sales. For some reason email marketers, and business using email to communicate with their target market forget this.
2. No "Pull"
There has to be a reason to keep reading, a pull for the reader to continue.
Unless you are sending me an email at the exact moment I am looking to buy what you're selling, just saying "Hey you - buy my stuff", isn't going to work. There's no pull.
The worst offenders will not only be lacking a pull, but will go on for 1000 words without one, essentially repeating over and over again why I should buy their stuff.
Give me a reason to keep reading, tell me a story, give me value, show me how you'll solve my problems, keep me interested in what you have to say. (more)
Entrepreneur: Seven common errors when writing a business plan
By Adam Toren
Compiling a formal business plan can be a daunting task for an entrepreneur.
The reality, of course, is that these documents are a necessity for any company. And, to be honest, they’re not as hard to put together as you might think. (There are plenty of good books on the subject and some really great software packages, such as Business Plan Pro.)
Still, there are some common errors entrepreneurs face when writing a business plan.
Procrastination. It’s easy to find distractions (such as your busy schedule) to prevent you from creating a plan. Resist them. And realize that without a document detailing plans for the future, your company is likely to become a rudderless ship at some point.
Financial focus. Think in terms of cash rather than profits. Initially, your profit and loss statement should be secondary to your cash flow statement. You’ll need to initially ensure you have enough cash on hand on a day-by-day basis to survive.
Cover your bases. Don’t focus too much on your grand idea, but make sure that you have all the fundamentals covered. Bold ideas are hard to sell. Rather, stress that you have the available time, common sense and business smarts to succeed. If you are looking for investors, they will be more interested in you and your people than the idea. (more)
Compiling a formal business plan can be a daunting task for an entrepreneur.
The reality, of course, is that these documents are a necessity for any company. And, to be honest, they’re not as hard to put together as you might think. (There are plenty of good books on the subject and some really great software packages, such as Business Plan Pro.)
Still, there are some common errors entrepreneurs face when writing a business plan.
Procrastination. It’s easy to find distractions (such as your busy schedule) to prevent you from creating a plan. Resist them. And realize that without a document detailing plans for the future, your company is likely to become a rudderless ship at some point.
Financial focus. Think in terms of cash rather than profits. Initially, your profit and loss statement should be secondary to your cash flow statement. You’ll need to initially ensure you have enough cash on hand on a day-by-day basis to survive.
Cover your bases. Don’t focus too much on your grand idea, but make sure that you have all the fundamentals covered. Bold ideas are hard to sell. Rather, stress that you have the available time, common sense and business smarts to succeed. If you are looking for investors, they will be more interested in you and your people than the idea. (more)
MArketing Profs Daily Fix: Guest Post: A Brand's Largest Social Media Obstacle
By Samir Balwani
Would you believe me if I told you that most of the time the reason a social media campaign fails is because of a single obstacle? What if I told you the brand itself was the reason?
Interestingly enough, a brand's point of view, and culture can be sabotaging their online marketing.
Why It Happens?I've made a pretty bold statement, saying that brands shoot themselves in the foot, but why?
The first is the stereotypical follower brand. These brands enter the social space because their competitors are. Without a real reason for connecting with consumers, the brand has no drive to foster their relationships. Most of these campaigns are lackluster and fall apart after a few months.
Many brands know they should be in the social space but their culture prohibits them from taking risks. An aura of fear permeates every decision, and the tried and true wins out over innovation.
These brands introduce a host of problems. Most importantly they don't invest in innovation. Since it's difficult to directly assign or forecast ROI in social media, money is never spent on it. (more)
Would you believe me if I told you that most of the time the reason a social media campaign fails is because of a single obstacle? What if I told you the brand itself was the reason?
Interestingly enough, a brand's point of view, and culture can be sabotaging their online marketing.
Why It Happens?I've made a pretty bold statement, saying that brands shoot themselves in the foot, but why?
The first is the stereotypical follower brand. These brands enter the social space because their competitors are. Without a real reason for connecting with consumers, the brand has no drive to foster their relationships. Most of these campaigns are lackluster and fall apart after a few months.
Many brands know they should be in the social space but their culture prohibits them from taking risks. An aura of fear permeates every decision, and the tried and true wins out over innovation.
These brands introduce a host of problems. Most importantly they don't invest in innovation. Since it's difficult to directly assign or forecast ROI in social media, money is never spent on it. (more)
CNN.Money: An Internet for rural India
By Malika Zouhali-Worrall
One intrepid entrepreneur battles brigands and bureaucrats to bring e-governance to India's 700 million rural poor.
BANGALORE (Fortune Small Business) -- It's a sweltering day in May, the hottest time of year in the South Indian town of Sathanur. In the shade of a whitewashed storefront, a rugged, mustached man named Nagabhushana Achalu is filing his first application for a certificate that will help his children go to school. Within minutes the kiosk operator behind the counter has logged on to the state government's intranet and sent Nagabhushana's application to a server in the state capital, 40 miles away.
That may not sound remarkable, but in rural India it's a revolutionary act.
As a member of the Adi Karnataka, one of India's "scheduled castes," formerly called untouchables, Nagabhushana has limited employment options. He earns a meager 5,000 rupees ($100) a year from rice and millet farming. But there is one ray of hope in his life: Private schools in his state, Karnataka, have abolished fees for members of scheduled castes. His two children can go to a good school for free -- so long as their father has the official "caste and income" certificate to prove his poverty.
The process of getting one -- and the bribery involved -- was too costly until the man with the kiosk came along. (more)
One intrepid entrepreneur battles brigands and bureaucrats to bring e-governance to India's 700 million rural poor.
BANGALORE (Fortune Small Business) -- It's a sweltering day in May, the hottest time of year in the South Indian town of Sathanur. In the shade of a whitewashed storefront, a rugged, mustached man named Nagabhushana Achalu is filing his first application for a certificate that will help his children go to school. Within minutes the kiosk operator behind the counter has logged on to the state government's intranet and sent Nagabhushana's application to a server in the state capital, 40 miles away.
That may not sound remarkable, but in rural India it's a revolutionary act.
As a member of the Adi Karnataka, one of India's "scheduled castes," formerly called untouchables, Nagabhushana has limited employment options. He earns a meager 5,000 rupees ($100) a year from rice and millet farming. But there is one ray of hope in his life: Private schools in his state, Karnataka, have abolished fees for members of scheduled castes. His two children can go to a good school for free -- so long as their father has the official "caste and income" certificate to prove his poverty.
The process of getting one -- and the bribery involved -- was too costly until the man with the kiosk came along. (more)
Thursday, July 9, 2009
Social Earth: INJAZ al-Arab receives $750,000 Skoll Foundation Award for Social Entrepreneurship
INJAZ al-Arab receives $750,000 Skoll Foundation Award for Social Entrepreneurship
Posted by Justine on Jul 8th, 2009 and filed under Entrepreneurship, Featured, Videos. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry
Technorati
INJAZ al-Arab is a member of Junior Achievement Worldwide (JA) and they are both thrilled with the three year $750,000 dollar grant award. The Skoll Foundation rewarded INJAZ for Social Entrepreneurship and the positive impact that INJAZ/JA Worldwide has had on Middle Eastern youth. INJAZ works in 12 countries across the Middle East and North African (MENA) Regions, mentoring and inspiring the youth in these areas to strive to reach their full potential.
INJAZ also provides education and business skills training to qualify them to not only enter the workforce but to succeed in the global economy. The programs funded by INJAZ al-Arab have assisted more than 500,000 students and have engaged approximately 10,000 volunteers. INJAZ highlights entrepreneurship and business innovation as a means to empower Arab youth.
Junior Achievement shares INJAZ’s initiatives and focuses on three key content areas: work readiness, entrepreneurship and financial literacy. With its dedicated workforce and faithful volunteers, JA is able to serve 9 million students worldwide. (more)
Posted by Justine on Jul 8th, 2009 and filed under Entrepreneurship, Featured, Videos. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry
Technorati
INJAZ al-Arab is a member of Junior Achievement Worldwide (JA) and they are both thrilled with the three year $750,000 dollar grant award. The Skoll Foundation rewarded INJAZ for Social Entrepreneurship and the positive impact that INJAZ/JA Worldwide has had on Middle Eastern youth. INJAZ works in 12 countries across the Middle East and North African (MENA) Regions, mentoring and inspiring the youth in these areas to strive to reach their full potential.
INJAZ also provides education and business skills training to qualify them to not only enter the workforce but to succeed in the global economy. The programs funded by INJAZ al-Arab have assisted more than 500,000 students and have engaged approximately 10,000 volunteers. INJAZ highlights entrepreneurship and business innovation as a means to empower Arab youth.
Junior Achievement shares INJAZ’s initiatives and focuses on three key content areas: work readiness, entrepreneurship and financial literacy. With its dedicated workforce and faithful volunteers, JA is able to serve 9 million students worldwide. (more)
NYT: The Dark Side of Entrepreneurship
By Jay Goltz
For the last 25 years, entrepreneurship has been widely heralded as the path to fame, fortune, and following your own vision while avoiding working for “The Man.” It’s nice when it works. More times than not, it doesn’t.
Some 70 percent of businesses fail within seven years, according to the Small Business Administration. In the worst cases, the result is not only business failure but also complete financial failure. What I have learned is that the damage doesn’t stop there. I share this with you as an attempt to bring some reality to the conversation about entrepreneurship. It is not just about passion and innovation and bringing your dog to work. It is also about risk, tenacity and fear. It is also about the repercussions of bad luck, bad decisions and bad economies. I know of four business owners in Chicago who have taken their own lives since the economy turned.
The following story is not that bad, thankfully, but it does offer a counterpoint to the hype. It started many years ago with a friend of mine, John Baumeister, getting an electrical engineering degree and developing his passion and expertise for audio and video systems. He created a company called Baumeister Electronic Architects, and 20 years later, it was a leader in installing high-end audio and video systems in Chicagoland. His staff grew to 40, and it looked like nothing could stop him — until a combination of the housing and the economic crisis resulted in the delay or cancellation of many of his orders. I have known him for several years, and he called me for advice. (more)
For the last 25 years, entrepreneurship has been widely heralded as the path to fame, fortune, and following your own vision while avoiding working for “The Man.” It’s nice when it works. More times than not, it doesn’t.
Some 70 percent of businesses fail within seven years, according to the Small Business Administration. In the worst cases, the result is not only business failure but also complete financial failure. What I have learned is that the damage doesn’t stop there. I share this with you as an attempt to bring some reality to the conversation about entrepreneurship. It is not just about passion and innovation and bringing your dog to work. It is also about risk, tenacity and fear. It is also about the repercussions of bad luck, bad decisions and bad economies. I know of four business owners in Chicago who have taken their own lives since the economy turned.
The following story is not that bad, thankfully, but it does offer a counterpoint to the hype. It started many years ago with a friend of mine, John Baumeister, getting an electrical engineering degree and developing his passion and expertise for audio and video systems. He created a company called Baumeister Electronic Architects, and 20 years later, it was a leader in installing high-end audio and video systems in Chicagoland. His staff grew to 40, and it looked like nothing could stop him — until a combination of the housing and the economic crisis resulted in the delay or cancellation of many of his orders. I have known him for several years, and he called me for advice. (more)
Arabian Business: IMF slashes ME growth in latest forecast
By Martin Morris
The International Monetary Fund on Wednesday slashed its Middle East growth forecast for this year by half a percentage point to 2 percent from the 2.5 percent forecast back in April.
Principal reason for the downgrade is due to the region being more affected by the drop in global trade than previously expected as governments have increasingly used their financial reserves to prop up domestic demand.
On the upside, however, forecast growth for 2010 was raised to 3.7 percent from 3.5 percent. (more)
The International Monetary Fund on Wednesday slashed its Middle East growth forecast for this year by half a percentage point to 2 percent from the 2.5 percent forecast back in April.
Principal reason for the downgrade is due to the region being more affected by the drop in global trade than previously expected as governments have increasingly used their financial reserves to prop up domestic demand.
On the upside, however, forecast growth for 2010 was raised to 3.7 percent from 3.5 percent. (more)
NYT: Who Is the Small Business Majority?
By Robb Mandelbaum
The Small Business Majority released a series of state polls today and yesterday that make an astonishing claim: small-business owners, by wide majorities, support a mandate that would require that businesses either provide health insurance for their employees or pay a tax to fund government-supported insurance for them. In Iowa, 65 percent support the pay-or-play proposal; in Nebraska, 59 percent favor it. Across 16 states, support for the employer mandate ranges from 59 percent to 72 percent
As far as the Agenda knows, the Small Business Majority research is the only research that has found that small businesses buy in to pay-or-play. All of the other small-business advocates claim the opposite, and by greater margins — even the National Small Business Association, whose moderate leanings seem practically radical, at least compared to those of its larger rivals, the U.S. Chamber of Commerce and the National Federation of Independent Business. (more)
The Small Business Majority released a series of state polls today and yesterday that make an astonishing claim: small-business owners, by wide majorities, support a mandate that would require that businesses either provide health insurance for their employees or pay a tax to fund government-supported insurance for them. In Iowa, 65 percent support the pay-or-play proposal; in Nebraska, 59 percent favor it. Across 16 states, support for the employer mandate ranges from 59 percent to 72 percent
As far as the Agenda knows, the Small Business Majority research is the only research that has found that small businesses buy in to pay-or-play. All of the other small-business advocates claim the opposite, and by greater margins — even the National Small Business Association, whose moderate leanings seem practically radical, at least compared to those of its larger rivals, the U.S. Chamber of Commerce and the National Federation of Independent Business. (more)
Small Biz Bee: The Anatomy of an Entrepreneur
The word Entrepreneur holds a certain level of mystique in our society.
On a daily basis we are reminded of the entrepreneurs who have started with nothing only to rise to celebrity status. Or maybe we see our next door neighbor who, while not a celebrity, has done very well for themselves starting and running small businesses.
The mystique comes from believing these individuals have something different in their genes, or a predisposition to business that has made them a success. Perhaps they were just lucky. Who knows?
The Anatomy of an Entrepreneur
Today, thanks to The Ewing Marion Kauffman Foundation, we are one step closer to understanding the make up of an entrepreneur.
In their July 2009 report, The Anatomy of an Entrepreneur, The Ewing Marion Kauffman Foundation attempt to gain a little more clarity into what makes an entrepreneur tick. (more)
On a daily basis we are reminded of the entrepreneurs who have started with nothing only to rise to celebrity status. Or maybe we see our next door neighbor who, while not a celebrity, has done very well for themselves starting and running small businesses.
The mystique comes from believing these individuals have something different in their genes, or a predisposition to business that has made them a success. Perhaps they were just lucky. Who knows?
The Anatomy of an Entrepreneur
Today, thanks to The Ewing Marion Kauffman Foundation, we are one step closer to understanding the make up of an entrepreneur.
In their July 2009 report, The Anatomy of an Entrepreneur, The Ewing Marion Kauffman Foundation attempt to gain a little more clarity into what makes an entrepreneur tick. (more)
CNN.Money: Your best business advisor: You
By Daniel Akst
Masters of the obvious
The Management Myth: Management Consulting Past, Present, and Largely BogusBy Matthew Stewart Norton, 304 pages, $27.95
In their guts most entrepreneurs know that management is an art, not a science, and that success has little to do with what you learned in school -- especially business school.
For business owners with lingering doubts, this book is a worthy antidote. The author, a philosopher-turned-consultant-turned-critic, argues that "management science" is mostly a lucrative religion, with consultants its know-nothing high priests. These consultants, in his view, are woefully short on knowledge and experience; at one firm where he worked, "even the older partners had managed little that was more complex than a Thanksgiving dinner." (more)
Masters of the obvious
The Management Myth: Management Consulting Past, Present, and Largely BogusBy Matthew Stewart Norton, 304 pages, $27.95
In their guts most entrepreneurs know that management is an art, not a science, and that success has little to do with what you learned in school -- especially business school.
For business owners with lingering doubts, this book is a worthy antidote. The author, a philosopher-turned-consultant-turned-critic, argues that "management science" is mostly a lucrative religion, with consultants its know-nothing high priests. These consultants, in his view, are woefully short on knowledge and experience; at one firm where he worked, "even the older partners had managed little that was more complex than a Thanksgiving dinner." (more)
Wednesday, July 8, 2009
BusinessWeek: To Beat the Recession, Open Your Books
By John Tozzi
Revealing company finances to employees may seem scary, but CEOs who practice open book management swear by its ability to lower costs and boost profits.
Commercial aircraft supplier Tracer was in trouble last November. The 27-employee Milwaukee company, founded in 1993, saw sales fall 20% below already lowered projections. With inventory stuck in the warehouse, Tracer's entire staff knew exactly how much they needed to drive sales to hit their monthly target. Founder and CEO Bill Morales, 52, was on the road, but in his absence his team negotiated a deal that would move some 747 parts out of inventory at a deep discount. Morales approved the price, and his staff did the rest. It was the kind of ground-up effort that has helped Tracer avoid any layoffs, even though 2009 sales are still down 30% from last year.
Most entrepreneurs keep the inner workings of company finances hidden from employees, especially when their businesses are struggling. But executives like Morales have embraced open book management, an approach based on transparency and accountability. They train their employees to understand key financial measurements and show workers how their actions affect profits. More than 10,000 companies practice some form of this philosophy, estimates Jack Stack, CEO of Springfield ReManufacturing, who pioneered the technique in the 1980s. Many executives fear that competitors will learn sensitive information if they open their books to employees, and some think their workers have little to offer. But proponents say open book management makes healthy companies more efficient—and can save a company in distress. (more)
Revealing company finances to employees may seem scary, but CEOs who practice open book management swear by its ability to lower costs and boost profits.
Commercial aircraft supplier Tracer was in trouble last November. The 27-employee Milwaukee company, founded in 1993, saw sales fall 20% below already lowered projections. With inventory stuck in the warehouse, Tracer's entire staff knew exactly how much they needed to drive sales to hit their monthly target. Founder and CEO Bill Morales, 52, was on the road, but in his absence his team negotiated a deal that would move some 747 parts out of inventory at a deep discount. Morales approved the price, and his staff did the rest. It was the kind of ground-up effort that has helped Tracer avoid any layoffs, even though 2009 sales are still down 30% from last year.
Most entrepreneurs keep the inner workings of company finances hidden from employees, especially when their businesses are struggling. But executives like Morales have embraced open book management, an approach based on transparency and accountability. They train their employees to understand key financial measurements and show workers how their actions affect profits. More than 10,000 companies practice some form of this philosophy, estimates Jack Stack, CEO of Springfield ReManufacturing, who pioneered the technique in the 1980s. Many executives fear that competitors will learn sensitive information if they open their books to employees, and some think their workers have little to offer. But proponents say open book management makes healthy companies more efficient—and can save a company in distress. (more)
BusinessWeek: Before You Refinance a Business Loan
By Karen E. Klein
Bad calendar coordination can result in double interest for a day. Your banker can help, but sometimes you'll just be stuck.
When loans are refinanced, it seems standard practice is to fund the new loan and then pay off the existing loan the next business day. So for one day (longer if God forbid you fund the new loan on a Friday), one is charged interest on the existing loan and the new loan. Is there any way around this day of double interest? Also, why does it take a month to generate refund checks on loan payoffs?
—S.R.R., Pacific Palisades, Calif.
Refinancing a loan is a complicated banking process that can involve dozens of people and multiple departments within a bank. If one loan is being refinanced to pay off another loan, perhaps at a different bank, the transaction becomes even more complex, says Hugh E. Conners, senior vice-president in community business banking at Comerica Bank's Western market unit.
"There can be multiple lenders, title companies, attorneys, and others that the loan officer or underwriter needs to coordinate" in a refinance, Conners says. "Given the number of moving parts involved, there might be a one-day lag in having the refinance funds move from the new loan to paying off the old loan. Some lenders will account for this day of interest lag and some will not." (more)
Bad calendar coordination can result in double interest for a day. Your banker can help, but sometimes you'll just be stuck.
When loans are refinanced, it seems standard practice is to fund the new loan and then pay off the existing loan the next business day. So for one day (longer if God forbid you fund the new loan on a Friday), one is charged interest on the existing loan and the new loan. Is there any way around this day of double interest? Also, why does it take a month to generate refund checks on loan payoffs?
—S.R.R., Pacific Palisades, Calif.
Refinancing a loan is a complicated banking process that can involve dozens of people and multiple departments within a bank. If one loan is being refinanced to pay off another loan, perhaps at a different bank, the transaction becomes even more complex, says Hugh E. Conners, senior vice-president in community business banking at Comerica Bank's Western market unit.
"There can be multiple lenders, title companies, attorneys, and others that the loan officer or underwriter needs to coordinate" in a refinance, Conners says. "Given the number of moving parts involved, there might be a one-day lag in having the refinance funds move from the new loan to paying off the old loan. Some lenders will account for this day of interest lag and some will not." (more)
Mixergy: Wikipedia’s Founder On How The Site Was Built & Promoted. – With Jimmy Wales
By Andrew Warner
How did Jimmy Wales get the world to help him write an encyclopedia? And what could YOU learn from his experiences to help you build a business that leaves a legacy?
I invited Jimmy to Mixergy and I asked him to talk about the business side of his non-profit, Wikipedia. He told us how the idea for Wikipedia evolved, how he got people to contribute to it, why people promoted the site, and more. My goal was to help you learn how to build a startup that leaves a legacy, from the man whose work changed the world.
Jimmy Wales is the founder of Wikipedia, the free, non-profit encyclopedia that anyone can edit. He is also the co-founder of Wikia, a community destination supporting the creation and development of wiki communities on any topic people are passionate about. You can connect with him on Twitter, Facebook, LinkedIn and his blog.
Edited Excerpts From The Wikipedia Story
He was inspired by the open source movement
I was looking at the growth of the free software movement and I was seeing how communities of programmers were coming together online to create software. So it wasn’t so much about wanting the end result (the encyclopedia) to be different, although the end result is quite different, but more about realizing that were was a new model for collaboration going on online and that there would be a lot of cool stuff that should go along with that.
There wasn’t a business plan
The best businesses are not cooked up by MBA’s with reams of data and business plans. That’s never been true. The best businesses are meeting the needs of the customer in an innovative way. It really was more about seeing an opportunity and an idea and knowing it needs to be done, and that’s what I think really makes something work.
There’s nothing wrong with thinking about the market need and so forth. I’m just saying that shouldn’t be the primary. Because if it is the primary you end up with a very tedious, uninspiring business that tends to not to go anywhere. (more)
How did Jimmy Wales get the world to help him write an encyclopedia? And what could YOU learn from his experiences to help you build a business that leaves a legacy?
I invited Jimmy to Mixergy and I asked him to talk about the business side of his non-profit, Wikipedia. He told us how the idea for Wikipedia evolved, how he got people to contribute to it, why people promoted the site, and more. My goal was to help you learn how to build a startup that leaves a legacy, from the man whose work changed the world.
Jimmy Wales is the founder of Wikipedia, the free, non-profit encyclopedia that anyone can edit. He is also the co-founder of Wikia, a community destination supporting the creation and development of wiki communities on any topic people are passionate about. You can connect with him on Twitter, Facebook, LinkedIn and his blog.
Edited Excerpts From The Wikipedia Story
He was inspired by the open source movement
I was looking at the growth of the free software movement and I was seeing how communities of programmers were coming together online to create software. So it wasn’t so much about wanting the end result (the encyclopedia) to be different, although the end result is quite different, but more about realizing that were was a new model for collaboration going on online and that there would be a lot of cool stuff that should go along with that.
There wasn’t a business plan
The best businesses are not cooked up by MBA’s with reams of data and business plans. That’s never been true. The best businesses are meeting the needs of the customer in an innovative way. It really was more about seeing an opportunity and an idea and knowing it needs to be done, and that’s what I think really makes something work.
There’s nothing wrong with thinking about the market need and so forth. I’m just saying that shouldn’t be the primary. Because if it is the primary you end up with a very tedious, uninspiring business that tends to not to go anywhere. (more)
Small Business Trends: Why SMB owners should care about SEO
By Lisa Barone
Your customers are looking for you. Can they find you?
When potential customers have a problem and need somewhere to go, they search for it. They head to their favorite search engine, type what they want and are presented with a list of results Google promises can help them. If you don’t appear in those results, you don’t exist. You miss out on the sale, the branding opportunity and the ability to convert that targeted searcher into a lifelong customer. And that’s the value that search engine optimization (SEO) brings to small businesses. It puts you in your customers’ line of sight and establishes you as an expert.
A lot of small businesses don’t fully understand SEO. They think it’s dirty, that SEOs are snake oil salesmen, that it’s out of their budget, or that it’s something they don’t need to worry about because they’re not a major brand. The truth is, the Internet has changed the face of business and leveled the playing field for everyone. By investing in SEO, you allow your company to show up for those targeted local searches, while also putting yourself in the position to compete with the big dogs.
Here’s what a lot of small businesses don’t realize about SEO.
It’s affordable: Whether you’re doing it yourself or paying someone to help you, SEO doesn’t have to break your budget. Most of your attention will go towards ensuring that your site is set up correctly, that you’re listed in all the appropriate local indexes (which is free and something you can do on your own), and helping to target your site for very specific, locally-based terms. For most businesses, you’re going to find that this process probably isn’t anywhere near as expensive or difficult as you’d imagine. It’s also one of the most cost-effective marketing strategies out there as you’ll continue to benefit from good optimization for years to come. Quite simply, a site that is properly constructed will rank better than a site that is not. And you don’t have to drain your budget in order to pay attention to fundamental SEO. (more)
Your customers are looking for you. Can they find you?
When potential customers have a problem and need somewhere to go, they search for it. They head to their favorite search engine, type what they want and are presented with a list of results Google promises can help them. If you don’t appear in those results, you don’t exist. You miss out on the sale, the branding opportunity and the ability to convert that targeted searcher into a lifelong customer. And that’s the value that search engine optimization (SEO) brings to small businesses. It puts you in your customers’ line of sight and establishes you as an expert.
A lot of small businesses don’t fully understand SEO. They think it’s dirty, that SEOs are snake oil salesmen, that it’s out of their budget, or that it’s something they don’t need to worry about because they’re not a major brand. The truth is, the Internet has changed the face of business and leveled the playing field for everyone. By investing in SEO, you allow your company to show up for those targeted local searches, while also putting yourself in the position to compete with the big dogs.
Here’s what a lot of small businesses don’t realize about SEO.
It’s affordable: Whether you’re doing it yourself or paying someone to help you, SEO doesn’t have to break your budget. Most of your attention will go towards ensuring that your site is set up correctly, that you’re listed in all the appropriate local indexes (which is free and something you can do on your own), and helping to target your site for very specific, locally-based terms. For most businesses, you’re going to find that this process probably isn’t anywhere near as expensive or difficult as you’d imagine. It’s also one of the most cost-effective marketing strategies out there as you’ll continue to benefit from good optimization for years to come. Quite simply, a site that is properly constructed will rank better than a site that is not. And you don’t have to drain your budget in order to pay attention to fundamental SEO. (more)
NYT: Three Things to Watch as We Play Out ‘09
By Jay Goltz
The year is half over. The question is, Is the recession half over? More than half over? Less? I sense that most “experts” believe next year will be better. Let’s go with that.
As a small-business owner, I think it is a good time to pause, reflect and take inventory. First of all, if you are still in business, take a deep breath. We have probably survived the worst of the economic collapse. (If you’re not still in business, that’s a very different story. I’ll have more to say about the pain of failure in another post.)
Most companies have made some staff and salary reductions, cut expenses and reduced inventories. These actions will reduce or eliminate losses. Breaking even is the new profitable!
Here are three things I’m focusing on as I navigate the second half of the year and look forward to next year (I am sooo done with ’09):
1) Cash flow. In many cases, cash flow is more important than profits. Many people do not understand that companies go broke because they run out of cash, not because they are unprofitable.
I have a lot of inventory. While my managers are always working on getting rid of items that have been around too long, I have made it a top priority. It helps to have a chief financial officer who loves to remind everyone that we are always talking about reducing inventory but not always doing it. If this were your nagging mother, it would be unbearable. When it comes from a C.F.O., however, it is called doing your job. (more)
The year is half over. The question is, Is the recession half over? More than half over? Less? I sense that most “experts” believe next year will be better. Let’s go with that.
As a small-business owner, I think it is a good time to pause, reflect and take inventory. First of all, if you are still in business, take a deep breath. We have probably survived the worst of the economic collapse. (If you’re not still in business, that’s a very different story. I’ll have more to say about the pain of failure in another post.)
Most companies have made some staff and salary reductions, cut expenses and reduced inventories. These actions will reduce or eliminate losses. Breaking even is the new profitable!
Here are three things I’m focusing on as I navigate the second half of the year and look forward to next year (I am sooo done with ’09):
1) Cash flow. In many cases, cash flow is more important than profits. Many people do not understand that companies go broke because they run out of cash, not because they are unprofitable.
I have a lot of inventory. While my managers are always working on getting rid of items that have been around too long, I have made it a top priority. It helps to have a chief financial officer who loves to remind everyone that we are always talking about reducing inventory but not always doing it. If this were your nagging mother, it would be unbearable. When it comes from a C.F.O., however, it is called doing your job. (more)
Tuesday, July 7, 2009
MENA FM.com: Jordanian economy grows 3.2% in Q1
(MENAFN) The Central Bank of Jordan said in its latest report that the kingdom's real gross domestic product (GDP) grew by 3.2 percent during the first quarter of this year, compared with 8.6 percent a year earlier, The Jordan Times reported.The report also indicated that the inflation rate during the first five months of this year fell sharply to 1 percent compared with 11.6 percent during the same period last year.According to the report, investments benefiting from the Jordan Investment Promotion Law also rose during the first quarter of 2009 by 10.3 percent to $352 million compared to the same period last year.The CBJ foreign reserves jumped by 16.1 percent at the end of 2008 reaching a record of $8.99 billion, the report showed. (link)
Young Entrepreneur: Jack Ma
By Adam Toren
The lumbering, sleeping giant awakes. What will soon become the world’s largest economy is very much on the radar screen as it emerges from centuries of sleep. China’s potential for growth and its likely impact upon the economies of the Western world cannot be underestimated. Several homegrown entrepreneurs are riding that wave and one of their most notable nationals is Jack Ma, who founded the business-to-business website alibaba.com. After a meteoric rise, Ma’s company went public and now has a valuation of more than $30 billion.
Ma is certainly a child of China’s Cultural Revolution. He learned English when he was 12 and was able to interact with a number of foreign tourists. In his own words his eyes were opened. “China was opening up and a lot of foreign tourists went there. I showed them around as a free guide and practiced my English. Those eight years deeply changed me. I started to become more globalized than most Chinese. What I learned from my teachers and books was different from what the foreign visitors told us.” A visit to Australia in the early ‘eighties reinforced his vision. (more)
The lumbering, sleeping giant awakes. What will soon become the world’s largest economy is very much on the radar screen as it emerges from centuries of sleep. China’s potential for growth and its likely impact upon the economies of the Western world cannot be underestimated. Several homegrown entrepreneurs are riding that wave and one of their most notable nationals is Jack Ma, who founded the business-to-business website alibaba.com. After a meteoric rise, Ma’s company went public and now has a valuation of more than $30 billion.
Ma is certainly a child of China’s Cultural Revolution. He learned English when he was 12 and was able to interact with a number of foreign tourists. In his own words his eyes were opened. “China was opening up and a lot of foreign tourists went there. I showed them around as a free guide and practiced my English. Those eight years deeply changed me. I started to become more globalized than most Chinese. What I learned from my teachers and books was different from what the foreign visitors told us.” A visit to Australia in the early ‘eighties reinforced his vision. (more)
Harvard Business: Why You Need to Fail
By Peter Bregman
"Peter, I'd like you to stay for a minute after class." Calvin teaches my favorite body conditioning class at the gym.
"What'd I do?" I asked him.
"It's what you didn't do."
"What didn't I do?"
"Fail."
"You kept me after class for not failing?"
"This," he began to mimic my casual weight lifting style, using weights that were obviously too light, "is not going to get you anywhere. A muscle only grows if you work it till it fails. You need to use more challenging weights. You need to fail."Calvin's onto something. (more)
"Peter, I'd like you to stay for a minute after class." Calvin teaches my favorite body conditioning class at the gym.
"What'd I do?" I asked him.
"It's what you didn't do."
"What didn't I do?"
"Fail."
"You kept me after class for not failing?"
"This," he began to mimic my casual weight lifting style, using weights that were obviously too light, "is not going to get you anywhere. A muscle only grows if you work it till it fails. You need to use more challenging weights. You need to fail."Calvin's onto something. (more)
Harvard Business: How To Stay Creative under Pressure
By John Baldoni
Sergio Marchionne has lit a fire under Chrysler that is providing a spark of hope to the ailing automaker. From media reports, it seems that the Fiat team under Marchionne's leadership is shaking up the place the way another Italian (albeit American) did a generation ago, Lee Iacocca.
As a hands-on manager, Marchionne expects his direct reports to meet with him regularly, which they can do face to face at Chrysler or via video conference. He also has ditched the executive suite for the engineering trenches so he can be closer to the action. Marchionne is to be commended for keeping the loop tight enough that executives can keep each other informed. But there is there is a price to pay. Marchionne, according to the Wall Street Journal, he expects his executives to be in the office as he is six or seven days a week "for the foreseeable future."
Creating urgency to save a sinking ship is imperative. Working long hours to do so is also critical, but working day after day for months on end without a break is a bad idea. When a team is crashing on a deadline, pulling together can be energizing. But when there is no deadline in sight, the long hours exact vengeance in the form of loss of energy as well as diminished commitment.
Managers do not become more creative by working harder; they burnout more quickly. You
need give people a break from the day to day flow of work. Here are some suggestions for sustaining productivity under fire.
Set standards. The team leader must make it clear that during the crisis people are expected to assume a greater work load. The leader sets the example by taking more than his fair share of the work. Part of that work means being there for his team. At the same time, the leader does not need to decide how individuals must work. Often employees can decide how best to do their jobs. For example, mandatory meetings are fine, but every meeting need not be mandatory.
Get a buddy. One way to work smarter is to do what I have seen efficient organizations do.
Team up with a co-worker to cover for you, not simply on vacations but also during times you will be out of the office. If your buddy is junior to you, then it can be a development opportunity. The leader can also buddy with a colleague or boss to stand in for him, too. Many organizations preach team as in collaboration but too few take advantage of treating teammates as partners. You can do more when individuals work together. (more)
Sergio Marchionne has lit a fire under Chrysler that is providing a spark of hope to the ailing automaker. From media reports, it seems that the Fiat team under Marchionne's leadership is shaking up the place the way another Italian (albeit American) did a generation ago, Lee Iacocca.
As a hands-on manager, Marchionne expects his direct reports to meet with him regularly, which they can do face to face at Chrysler or via video conference. He also has ditched the executive suite for the engineering trenches so he can be closer to the action. Marchionne is to be commended for keeping the loop tight enough that executives can keep each other informed. But there is there is a price to pay. Marchionne, according to the Wall Street Journal, he expects his executives to be in the office as he is six or seven days a week "for the foreseeable future."
Creating urgency to save a sinking ship is imperative. Working long hours to do so is also critical, but working day after day for months on end without a break is a bad idea. When a team is crashing on a deadline, pulling together can be energizing. But when there is no deadline in sight, the long hours exact vengeance in the form of loss of energy as well as diminished commitment.
Managers do not become more creative by working harder; they burnout more quickly. You
need give people a break from the day to day flow of work. Here are some suggestions for sustaining productivity under fire.
Set standards. The team leader must make it clear that during the crisis people are expected to assume a greater work load. The leader sets the example by taking more than his fair share of the work. Part of that work means being there for his team. At the same time, the leader does not need to decide how individuals must work. Often employees can decide how best to do their jobs. For example, mandatory meetings are fine, but every meeting need not be mandatory.
Get a buddy. One way to work smarter is to do what I have seen efficient organizations do.
Team up with a co-worker to cover for you, not simply on vacations but also during times you will be out of the office. If your buddy is junior to you, then it can be a development opportunity. The leader can also buddy with a colleague or boss to stand in for him, too. Many organizations preach team as in collaboration but too few take advantage of treating teammates as partners. You can do more when individuals work together. (more)
Trump Blog: OPEC
By Donald J. Trump
Last week I spoke with Greta Van Susteren on Fox News, and we covered topics that included the economy, President Obama, the banks, health care, and OPEC. OPEC deserves our attention because it’s a situation that is too often overlooked, and it has had serious impact on our country and our economy.
OPEC openly laughs at the stupidity of our country as they raise oil prices. They are draining and sucking the life blood out of this country. They like to blame it on speculators. The speculators are peanuts compared to the power of OPEC. OPEC hires lobbyists in Washington and they have a strangle hold over the oil industry, which affects all of us in more ways than we might know. OPEC is destroying many countries.
The fact is, there’s oil all over the world in tankers--there’s so much oil that they’ll end up dumping it. Oil is at $70 a barrel and it should be $20. It doesn’t take a genius to do the math on that one. OPEC continues to set the price of oil as they continue to laugh at the stupidity of our leaders. They have been allowed to do whatever they want to do. I think we should be paying more attention to what’s going on with OPEC. (link)
Last week I spoke with Greta Van Susteren on Fox News, and we covered topics that included the economy, President Obama, the banks, health care, and OPEC. OPEC deserves our attention because it’s a situation that is too often overlooked, and it has had serious impact on our country and our economy.
OPEC openly laughs at the stupidity of our country as they raise oil prices. They are draining and sucking the life blood out of this country. They like to blame it on speculators. The speculators are peanuts compared to the power of OPEC. OPEC hires lobbyists in Washington and they have a strangle hold over the oil industry, which affects all of us in more ways than we might know. OPEC is destroying many countries.
The fact is, there’s oil all over the world in tankers--there’s so much oil that they’ll end up dumping it. Oil is at $70 a barrel and it should be $20. It doesn’t take a genius to do the math on that one. OPEC continues to set the price of oil as they continue to laugh at the stupidity of our leaders. They have been allowed to do whatever they want to do. I think we should be paying more attention to what’s going on with OPEC. (link)
NYT: The Costs of Entrepreneurial Job Creation
By Scott Shane
Based on the interest in my post about estimates of entrepreneurial job creation, I would like to explain how I calculate these numbers. My analysis is debatable, but I will outline the assumptions behind my figures so you can decide for yourself.
There are four key assumptions to calculate the job creation numbers: (1) the amount of money it takes to motivate someone to begin the entrepreneurial process, (2) the percentage of people that begin the entrepreneurial process who create a business, (3) the percentage of newly created businesses that employ anyone (employer firms), and (4) the number of employees in the average new employer firm.
Assumption No. 1Surveys of entrepreneurs consistently reveal that the biggest deterrent to starting a company is lack of capital; and natural experiments in which people receive random financial windfalls from lottery winnings show that an unexpected capital infusion encourages people to start businesses. So, to get people to start the entrepreneurial process, we need to overcome their lack of capital.
A representative survey of new business start-up efforts in the United States indicates that the typical (median) entrepreneur needs $15,000 to pursue a new business idea and can provide $6,000. Therefore, we need to give the typical person $9,000 to overcome this capital gap so he or she can start a business. (more)
Based on the interest in my post about estimates of entrepreneurial job creation, I would like to explain how I calculate these numbers. My analysis is debatable, but I will outline the assumptions behind my figures so you can decide for yourself.
There are four key assumptions to calculate the job creation numbers: (1) the amount of money it takes to motivate someone to begin the entrepreneurial process, (2) the percentage of people that begin the entrepreneurial process who create a business, (3) the percentage of newly created businesses that employ anyone (employer firms), and (4) the number of employees in the average new employer firm.
Assumption No. 1Surveys of entrepreneurs consistently reveal that the biggest deterrent to starting a company is lack of capital; and natural experiments in which people receive random financial windfalls from lottery winnings show that an unexpected capital infusion encourages people to start businesses. So, to get people to start the entrepreneurial process, we need to overcome their lack of capital.
A representative survey of new business start-up efforts in the United States indicates that the typical (median) entrepreneur needs $15,000 to pursue a new business idea and can provide $6,000. Therefore, we need to give the typical person $9,000 to overcome this capital gap so he or she can start a business. (more)
Arabian Business: Dubai Islamic Bank to begin Jordan operation
By Elsa Baxter
NEW LICENCE: DIB will begin to operate an Islamic financial institution in Jordan.
Dubai Islamic Bank (DIB) has received a preliminary banking licence by the Central Bank of Jordan to operate as an Islamic financial institution.The new entity, Jordan Dubai Islamic Bank (JDIB), will have a share capital of $100m, the company said in a statement on Monday.“Mesc Investments now owns a 52 percent stake in the new entity, acquired through the private placement in February this year,” the bank said.
Mesc is owned 40 per cent by DIB and 60 percent by Jordan Dubai Capital.“Sharia-complaint investment products are proving to be more attractive more than ever, especially in such times of economic challenges,” said Khaled Al Kamda, group managing director of DIB and vice chairman JDIB. (more)
NEW LICENCE: DIB will begin to operate an Islamic financial institution in Jordan.
Dubai Islamic Bank (DIB) has received a preliminary banking licence by the Central Bank of Jordan to operate as an Islamic financial institution.The new entity, Jordan Dubai Islamic Bank (JDIB), will have a share capital of $100m, the company said in a statement on Monday.“Mesc Investments now owns a 52 percent stake in the new entity, acquired through the private placement in February this year,” the bank said.
Mesc is owned 40 per cent by DIB and 60 percent by Jordan Dubai Capital.“Sharia-complaint investment products are proving to be more attractive more than ever, especially in such times of economic challenges,” said Khaled Al Kamda, group managing director of DIB and vice chairman JDIB. (more)
Sunday, July 5, 2009
NYT: That Long, Long Road From Idea to Success
By Vindu Goel
SAVE paper, save ink, save money, save the planet. Marketing doesn’t get any better than that.
When Hayden Hamilton and James Kellerman started batting around the idea for their printing software in May 2005, it seemed that simple and brilliant.
Roughly one out of five pages that people print are wasted — the stray lines at the end of a Web document, the boilerplate at the bottom of an airline e-ticket, the endless PowerPoint slides before the page with the important conclusions.
Mr. Hamilton and Mr. Kellerman wanted to create software that would make it easy to eliminate the junk: When users hit “print,” a preview of the document would pop up and allow them to quickly choose which pages they really wanted.
Four years later, the two men and the company they founded, GreenPrint Technologies, are still struggling. About 168,000 people have tried the company’s free consumer version, but only about 25,000 are using it on any given workday, by the company’s estimate. Corporations, the gold mine for software like this, have been reluctant to buy it until GreenPrint worked out a host of technical issues. (more)
SAVE paper, save ink, save money, save the planet. Marketing doesn’t get any better than that.
When Hayden Hamilton and James Kellerman started batting around the idea for their printing software in May 2005, it seemed that simple and brilliant.
Roughly one out of five pages that people print are wasted — the stray lines at the end of a Web document, the boilerplate at the bottom of an airline e-ticket, the endless PowerPoint slides before the page with the important conclusions.
Mr. Hamilton and Mr. Kellerman wanted to create software that would make it easy to eliminate the junk: When users hit “print,” a preview of the document would pop up and allow them to quickly choose which pages they really wanted.
Four years later, the two men and the company they founded, GreenPrint Technologies, are still struggling. About 168,000 people have tried the company’s free consumer version, but only about 25,000 are using it on any given workday, by the company’s estimate. Corporations, the gold mine for software like this, have been reluctant to buy it until GreenPrint worked out a host of technical issues. (more)
Venture Beat: Entrepreneurs: Cash in on non-English search engines and more
By Chris Morris
In case you’ve missed any of our recent advice for startups over at VentureBeat’s Entrepreneur Corner, here’s a wrap up:
Market research vs. gut instinct — Jeff Hawkins, founder of Palm Computing and inventor of the Palm Pilot, discusses how to balance market research with your intuition.
Cashing in on non-English search engines — Global consumers are more than five times more likely to buy from a website with content in their native language. Here’s how to outwit your competition and quickly become an international success.
DEMO announces $1M media prize — Trying to decide whether to launch your product at the fall DEMO conference? Here’s an incentive. Two winners will be awarded a significant amount of media publicity, totaling $1 million in ads. (more)
In case you’ve missed any of our recent advice for startups over at VentureBeat’s Entrepreneur Corner, here’s a wrap up:
Market research vs. gut instinct — Jeff Hawkins, founder of Palm Computing and inventor of the Palm Pilot, discusses how to balance market research with your intuition.
Cashing in on non-English search engines — Global consumers are more than five times more likely to buy from a website with content in their native language. Here’s how to outwit your competition and quickly become an international success.
DEMO announces $1M media prize — Trying to decide whether to launch your product at the fall DEMO conference? Here’s an incentive. Two winners will be awarded a significant amount of media publicity, totaling $1 million in ads. (more)
Duct Tapr Marketing: What Really Generates Referrals
So much of the literature on the subject of referrals focuses on the proper ways to network, ask for referrals, and create incentive programs for referral sources. While some of these more tactical things do indeed produce referrals for the organizations and salespeople that employ them, they are often little more than window dressing when it comes to the big picture.
Building a foundation that automatically generates referral momentum is not done through external actions – like some many things in life, you do it from the inside out. Plain and simple the most widely referred business are purely more referable.
I’ve studied a lot of businesses that easily generate referrals and they share some common internal tendencies as part of their brand and culture.
Make people look good
Looking at all business relationships with an eye on making prospects, customers, vendors, mentors, and staff look and feel good is a tremendously attractive internal quality. I read this quote recently and I think it works well here - “To a large degree, our success and happiness in life depends on how much people like themselves when they’re with us.” Joe Caruso (more)
Building a foundation that automatically generates referral momentum is not done through external actions – like some many things in life, you do it from the inside out. Plain and simple the most widely referred business are purely more referable.
I’ve studied a lot of businesses that easily generate referrals and they share some common internal tendencies as part of their brand and culture.
Make people look good
Looking at all business relationships with an eye on making prospects, customers, vendors, mentors, and staff look and feel good is a tremendously attractive internal quality. I read this quote recently and I think it works well here - “To a large degree, our success and happiness in life depends on how much people like themselves when they’re with us.” Joe Caruso (more)
Entrepreneur: Market research vs. gut instinct
By Chris Morris
Jeff Hawkins, founder of Palm Computing and the inventor of the Palm Pilot, knows a thing or two about innovation. In this segment, from Stanford University’s Entrepreneur Thought Leader Lectures, Hawkins discusses how to balance market research with your intuition.
Focus groups can only take you so far. Listening to customer wishes and demands helps more. But sometimes, you simply need to ignore what the data is telling you and follow your gut. (more)
Jeff Hawkins, founder of Palm Computing and the inventor of the Palm Pilot, knows a thing or two about innovation. In this segment, from Stanford University’s Entrepreneur Thought Leader Lectures, Hawkins discusses how to balance market research with your intuition.
Focus groups can only take you so far. Listening to customer wishes and demands helps more. But sometimes, you simply need to ignore what the data is telling you and follow your gut. (more)
Thursday, July 2, 2009
YoungEntrepreneur: How To Create A Marketing Campaign That Everyone Will Be Talking About
By Matthew Toren
People are being bombarded with marketing messages, from the time they get up in the morning and switch on the radio or TV, to the time that they venture out into the real world, to the time that they eat their TV dinner before crashing for the night. As an entrepreneur, you had better make sure that you have a message that people want to hear, with the ability to crash through all the other “noise”.
You might have a great product or service, one that you fully believe in, with all your heart. Your challenge is to create a marketing campaign around that product or service which causes everyone to sit up and take notice. You need to try and create social acceptance and viral buzz.
One of the first things that you have to bear in mind is that creativity does not have to be expensive. Some canny marketers make sure that they send out their direct mail message in an envelope containing an unusually-shaped gizmo. It doesn’t really matter what the object is, but the very shape of the package will cause the recipient to pay attention and open it. (more)
People are being bombarded with marketing messages, from the time they get up in the morning and switch on the radio or TV, to the time that they venture out into the real world, to the time that they eat their TV dinner before crashing for the night. As an entrepreneur, you had better make sure that you have a message that people want to hear, with the ability to crash through all the other “noise”.
You might have a great product or service, one that you fully believe in, with all your heart. Your challenge is to create a marketing campaign around that product or service which causes everyone to sit up and take notice. You need to try and create social acceptance and viral buzz.
One of the first things that you have to bear in mind is that creativity does not have to be expensive. Some canny marketers make sure that they send out their direct mail message in an envelope containing an unusually-shaped gizmo. It doesn’t really matter what the object is, but the very shape of the package will cause the recipient to pay attention and open it. (more)
Inc.: Lenders Stingy with Small Business Loans
By Alexandra Cheney
Before the floor fell out beneath the banking industry last September, the lending industry was already seeing a decrease in small business loans, according to the U.S. Small Business Administration Office of Advocacy. Their annual study, entitled the Small Business and Micro Business Lending, which was released last month, found that the number of small business loans (loans of $100,000 to $1 million) decreased from 2.9 million to 2.2 million, a 23 percent drop, between January 2007 and June 2008. For loans under $100,000, the number of loans increase by 16 percent.
Although a rise may appear to be positive, Charles Ou, a senior economist for the Office of Advocacy, says that the decrease in the larger loans could be related to commercial mortgage lenders and the business developers reducing their commitments to business owners. "When the economy slows down and uncertainty increases, both the lenders and the borrowers will hold back," says Ou. While the larger loans dropped off last year, banks continued to issue new credit cards to new small businesses, offering an explanation for the rise in microloans.
Ou expects that the period following June 2008, however, will also show a decline in microloans because bankers began recalling credit cards this past year. "Banks are currently not renewing small business credit cards and not actively promoting cards as they did last year," explains Ou. (more)
Before the floor fell out beneath the banking industry last September, the lending industry was already seeing a decrease in small business loans, according to the U.S. Small Business Administration Office of Advocacy. Their annual study, entitled the Small Business and Micro Business Lending, which was released last month, found that the number of small business loans (loans of $100,000 to $1 million) decreased from 2.9 million to 2.2 million, a 23 percent drop, between January 2007 and June 2008. For loans under $100,000, the number of loans increase by 16 percent.
Although a rise may appear to be positive, Charles Ou, a senior economist for the Office of Advocacy, says that the decrease in the larger loans could be related to commercial mortgage lenders and the business developers reducing their commitments to business owners. "When the economy slows down and uncertainty increases, both the lenders and the borrowers will hold back," says Ou. While the larger loans dropped off last year, banks continued to issue new credit cards to new small businesses, offering an explanation for the rise in microloans.
Ou expects that the period following June 2008, however, will also show a decline in microloans because bankers began recalling credit cards this past year. "Banks are currently not renewing small business credit cards and not actively promoting cards as they did last year," explains Ou. (more)
Harvard Business: 6 Lessons Learned in the Downturn
By Anthony Tjan
Last week we held our Annual Meeting for my firm, Cue Ball, and as part of it we gathered our investor members for a stimulating dinner discussion with HBR editors Eric Hellweg and Katherine Bell, and group publisher Josh Macht. One of the unique aspects of our firm is our Cue Ball Collective -- an invited set of 25 luminary executives and thought leaders who form not just the core of our capital base, but a critical brain trust of human capital for our firm.
Cue Ball Collective members present at dinner included: Alan Hassenfeld, Hasbro's Chairman of the Executive Board; Mike Overlock, former co-head of Goldman Sachs Investment Banking; Bill Achtmeyer, Chairman of Parthenon; Henry McCance, Chairman of Greylock; serial entrepreneur Mukesh Chatter; and about a dozen others from across the private equity, venture capital, and Fortune 500 firms.
Over some good Italian cuisine and syrah in Boston's North End, we enjoyed a stimulating evening as Eric Hellweg, Managing Editor of HarvardBusiness.org, moderated a discussion centered on the question of key lessons learned in the economic downturn.
Alan Hassenfeld from Hasbro was "cold called" to open the remarks, and he explained that as long as the entertainment business remains creative, innovative and reasonably priced, "we get hurt, but not as badly as other industries." That said, he emphasized a key learning: even the smartest people don't know (and can't predict) what will happen. He believes that there will likely be some tough times ahead.
The sentiment of "tough times ahead" was largely shared across the group. We need to reset expectations. Feelings as to the magnitude of how tough these economic times will continue to be were a little all over the map, but folks nodded as Hassenfeld and Overlock commented that "down 20 to 25% is the new up." And as to the debate over whether we are in a recession or a depression, Overlock continued with, "It's a recession if you're still working. It's a depression for your neighbor who lost his job."
If the biggest take away was the need to re-calibrate expectations, here are six other key lessons learned by the Cue Ball's Collective over the last year:
1. Cash is king. In my one of my prior posts in February on my outlook for opportunities in 2009, I commented that in these times cash gets promoted from king to God. Those who have it, and are willing to invest it during these times, will have some unique opportunities. At the same time that cash may be God right now, debt has become the devil. To say that the last year reminds us again of the perils of over-leverage is an understatement -- to say the least.
Related to "cash is king," is a comment made by Cue Ball's Chairman who was most recently CEO at Thomson Reuters -- in good times and bad, we have learned that it all comes back to focusing on the basics (such as operating metrics) that drive fundamental value creation. This means businesses and business models that can generate superior cash flow relative to their peers will be the ones that have the best long-term staying power. (more)
Last week we held our Annual Meeting for my firm, Cue Ball, and as part of it we gathered our investor members for a stimulating dinner discussion with HBR editors Eric Hellweg and Katherine Bell, and group publisher Josh Macht. One of the unique aspects of our firm is our Cue Ball Collective -- an invited set of 25 luminary executives and thought leaders who form not just the core of our capital base, but a critical brain trust of human capital for our firm.
Cue Ball Collective members present at dinner included: Alan Hassenfeld, Hasbro's Chairman of the Executive Board; Mike Overlock, former co-head of Goldman Sachs Investment Banking; Bill Achtmeyer, Chairman of Parthenon; Henry McCance, Chairman of Greylock; serial entrepreneur Mukesh Chatter; and about a dozen others from across the private equity, venture capital, and Fortune 500 firms.
Over some good Italian cuisine and syrah in Boston's North End, we enjoyed a stimulating evening as Eric Hellweg, Managing Editor of HarvardBusiness.org, moderated a discussion centered on the question of key lessons learned in the economic downturn.
Alan Hassenfeld from Hasbro was "cold called" to open the remarks, and he explained that as long as the entertainment business remains creative, innovative and reasonably priced, "we get hurt, but not as badly as other industries." That said, he emphasized a key learning: even the smartest people don't know (and can't predict) what will happen. He believes that there will likely be some tough times ahead.
The sentiment of "tough times ahead" was largely shared across the group. We need to reset expectations. Feelings as to the magnitude of how tough these economic times will continue to be were a little all over the map, but folks nodded as Hassenfeld and Overlock commented that "down 20 to 25% is the new up." And as to the debate over whether we are in a recession or a depression, Overlock continued with, "It's a recession if you're still working. It's a depression for your neighbor who lost his job."
If the biggest take away was the need to re-calibrate expectations, here are six other key lessons learned by the Cue Ball's Collective over the last year:
1. Cash is king. In my one of my prior posts in February on my outlook for opportunities in 2009, I commented that in these times cash gets promoted from king to God. Those who have it, and are willing to invest it during these times, will have some unique opportunities. At the same time that cash may be God right now, debt has become the devil. To say that the last year reminds us again of the perils of over-leverage is an understatement -- to say the least.
Related to "cash is king," is a comment made by Cue Ball's Chairman who was most recently CEO at Thomson Reuters -- in good times and bad, we have learned that it all comes back to focusing on the basics (such as operating metrics) that drive fundamental value creation. This means businesses and business models that can generate superior cash flow relative to their peers will be the ones that have the best long-term staying power. (more)
Arabian Business: Dow Jones launches Islamic Index
By Martin Morris
Dow Jones Indexes announced on Wednesday it has licensed the Dow Jones Islamic Market International Titans 100 Index to Javelin Investment Management, an investment adviser registered with the SEC.
The blue-chip index will underlie the first Shari'ah compliant exchange-traded fund listed in the US - the JETS Dow Jones Islamic Market International Index Fund (JVS).
The index measures the stock performance of 100 leading non-US companies that have passed rules-based screens for Shari'ah compliance. (more)
Dow Jones Indexes announced on Wednesday it has licensed the Dow Jones Islamic Market International Titans 100 Index to Javelin Investment Management, an investment adviser registered with the SEC.
The blue-chip index will underlie the first Shari'ah compliant exchange-traded fund listed in the US - the JETS Dow Jones Islamic Market International Index Fund (JVS).
The index measures the stock performance of 100 leading non-US companies that have passed rules-based screens for Shari'ah compliance. (more)
CNN.Money: Business owners cut to the bone
By Emily Maltby
Recent surveys indicate that business owners are still sacrificing staff, benefits, and personal savings to keep their doors open.
NEW YORK (CNNMoney.com) -- To stay open. That's the goal of business owners across the country as they continue to lay off employees, cut benefits and pull back on retirement contributions. These cost-cutting strategies are likely to stay in place for months to come, according to several recent reports.
On the employment front, the numbers remain grim: In the past month, small businesses with fewer than 50 workers shed 177,000 employees, according to a report released Wednesday by payroll processor ADP (ADP, Fortune 500). That's an improvement, but not much to celebrate. By contrast, mid-sized businesses cut 205,000 jobs and large businesses, those with more than 500 employees, lost 91,000 positions. (more)
Recent surveys indicate that business owners are still sacrificing staff, benefits, and personal savings to keep their doors open.
NEW YORK (CNNMoney.com) -- To stay open. That's the goal of business owners across the country as they continue to lay off employees, cut benefits and pull back on retirement contributions. These cost-cutting strategies are likely to stay in place for months to come, according to several recent reports.
On the employment front, the numbers remain grim: In the past month, small businesses with fewer than 50 workers shed 177,000 employees, according to a report released Wednesday by payroll processor ADP (ADP, Fortune 500). That's an improvement, but not much to celebrate. By contrast, mid-sized businesses cut 205,000 jobs and large businesses, those with more than 500 employees, lost 91,000 positions. (more)
NYT: A Guiding Hand From Big Business to Small
By Elizabeth Olsen
For a small business, especially in the current weak economy, a contract to supply goods or services to a large corporation can be a welcome lifeline. Some big companies, meanwhile, are seeking to expand their network of small suppliers.
To serve both their interests, some major corporations, including I.B.M., Wal-Mart, Procter & Gamble and Home Depot, offer programs to mentor small companies, particularly businesses owned by women, blacks, Hispanics and other groups.
Some corporations, including I.B.M., work with small suppliers who have good if modest track records by assigning an executive to give hands-on advice and guidance for periods of up to 18 months. (more)
For a small business, especially in the current weak economy, a contract to supply goods or services to a large corporation can be a welcome lifeline. Some big companies, meanwhile, are seeking to expand their network of small suppliers.
To serve both their interests, some major corporations, including I.B.M., Wal-Mart, Procter & Gamble and Home Depot, offer programs to mentor small companies, particularly businesses owned by women, blacks, Hispanics and other groups.
Some corporations, including I.B.M., work with small suppliers who have good if modest track records by assigning an executive to give hands-on advice and guidance for periods of up to 18 months. (more)
Small Biz Bee: Getting small biz contracts to small businesses
That's right, 63% of adults may not be buying from you for one simple reason.
In an economic downturn consumers are looking for one thing, and it impacts how and what they buy in a big way.
Consumers Looking for Deals
According to a Harris Interactive survey conducted last year:
In an economic recession consumers tend to cut budgets but, if provided discounts, they will buy - 54% of adults say they would reduce discretionary spending, and 63% say they would not make a purchase if a deal isn’t available.
In a similar survey conducted by ICOM Information & Communications (ICOM), 67% of US shoppers said they are more likely to use coupons during a recession. (more)
In an economic downturn consumers are looking for one thing, and it impacts how and what they buy in a big way.
Consumers Looking for Deals
According to a Harris Interactive survey conducted last year:
In an economic recession consumers tend to cut budgets but, if provided discounts, they will buy - 54% of adults say they would reduce discretionary spending, and 63% say they would not make a purchase if a deal isn’t available.
In a similar survey conducted by ICOM Information & Communications (ICOM), 67% of US shoppers said they are more likely to use coupons during a recession. (more)
Wednesday, July 1, 2009
Blog Maverick: Free vs Freely Distributed
By Mark Cuban
With the publication of Chris Anderson’s new book Free, the discussion about the role of free, today and in the future has expanded. Articles from Malcom Gladwell in New Yorker, and Seth Godin discuss the various merits and challenges of Free. Is Free inevitable ? Is Free the beginning of the end ? Let me answer the question.
First of all, what we are experiencing right now is “Better Than Free”. The videos on Youtube, magazine articles, newspapers reports, anything that used to be analog that now is digital have a perceived value that is based on their legacy delivery. We value all those TV shows on Hulu highly because we assign a value to what we pay for cable or satellite. We assign a high perceived value to newspaper and magazine reports based on the years we spent paying for them. Anything that we paid for as recently as last year, that we now get free, of course we assign a value of more than free. That makes it worth the effort to find it for free. Because the effort is worth your time. You are getting something for nothing, who doesnt want that ?
Of course that is a challenge for those industries. Not only do they face the challenge of their former customers wanting their content for nothing, but they have the problem that their costs are based upon their ability to sell their content.
There in lies the problem for the free movement. The subsidies of pro content producers from the newspaper and magazine industries will disappear as those businesses contract significantly. What happens then ? (more)
With the publication of Chris Anderson’s new book Free, the discussion about the role of free, today and in the future has expanded. Articles from Malcom Gladwell in New Yorker, and Seth Godin discuss the various merits and challenges of Free. Is Free inevitable ? Is Free the beginning of the end ? Let me answer the question.
First of all, what we are experiencing right now is “Better Than Free”. The videos on Youtube, magazine articles, newspapers reports, anything that used to be analog that now is digital have a perceived value that is based on their legacy delivery. We value all those TV shows on Hulu highly because we assign a value to what we pay for cable or satellite. We assign a high perceived value to newspaper and magazine reports based on the years we spent paying for them. Anything that we paid for as recently as last year, that we now get free, of course we assign a value of more than free. That makes it worth the effort to find it for free. Because the effort is worth your time. You are getting something for nothing, who doesnt want that ?
Of course that is a challenge for those industries. Not only do they face the challenge of their former customers wanting their content for nothing, but they have the problem that their costs are based upon their ability to sell their content.
There in lies the problem for the free movement. The subsidies of pro content producers from the newspaper and magazine industries will disappear as those businesses contract significantly. What happens then ? (more)
NYT: Going Public in the Throes of a Recession
By Lora Kolodny
Since Tom Adams joined Rosetta Stone as chief executive in 2003, the company, which makes self-study language software, has grown from a small, family-owned business with $10 million in annual revenue and 90 full-time employees into a 1,200-employee operation with first-quarter revenue this year of $50.3 million.
Nonetheless, with the economy mired in the worst downturn in recent memory, it took many by surprise when Mr. Adams, 37, chose to take Rosetta Stone public in April. It was only the fourth company to try an initial public offering on an American exchange in 2009, and it was a rousing success, selling out shares priced above the estimated range of $15 to $17 and raising $129 million. Rosetta Stone’s shares have recently traded above $27.
The successful offering was encouraging news for many privately owned companies and small businesses, suggesting, as it did, that strong valuations are still possible, even in such a difficult economy. The Arlington, Va.-based company is living proof, says Bill Tai, a partner at the investment firm, Charles River Ventures in Menlo Park, Calif., that “a company with solid foundations and the ability to ride interesting trends can attract funding, even multiple bidders for their financing, in a time of great uncertainty.” (more)
Since Tom Adams joined Rosetta Stone as chief executive in 2003, the company, which makes self-study language software, has grown from a small, family-owned business with $10 million in annual revenue and 90 full-time employees into a 1,200-employee operation with first-quarter revenue this year of $50.3 million.
Nonetheless, with the economy mired in the worst downturn in recent memory, it took many by surprise when Mr. Adams, 37, chose to take Rosetta Stone public in April. It was only the fourth company to try an initial public offering on an American exchange in 2009, and it was a rousing success, selling out shares priced above the estimated range of $15 to $17 and raising $129 million. Rosetta Stone’s shares have recently traded above $27.
The successful offering was encouraging news for many privately owned companies and small businesses, suggesting, as it did, that strong valuations are still possible, even in such a difficult economy. The Arlington, Va.-based company is living proof, says Bill Tai, a partner at the investment firm, Charles River Ventures in Menlo Park, Calif., that “a company with solid foundations and the ability to ride interesting trends can attract funding, even multiple bidders for their financing, in a time of great uncertainty.” (more)
Harvard Business: Are You an Inventor or an Entrepreneur?
ByJeff Stibel
Being an entrepreneur has more to do with a state of mind than a state of employment. And when you think of being an entrepreneur, it doesn't just mean starting a company — I've started over half a dozen successful companies but have also brought my experience to established companies. Right now, I am the President of a public company I did not start — so I may in fact be an "entrepreneur gone bad."
One of the most consistent things I hear entrepreneurs say is, "I have this great idea." And the advice they often get is to write a business plan and make it their bible. Most entrepreneurs firmly believe there is nothing better than a solid plan couples with a great idea. But don't confuse being an entrepreneur with being an inventor. Great ideas are a dime a dozen. Action is what differentiates an entrepreneur from an inventor. If you want to focus on ideas, become an inventor — not an entrepreneur.
And as for plans, entrepreneurs probably spend more time on our business plans than just about anything else we do. But business plans are often useless, even counterproductive; the old adage that "planning is everything; plans are nothing" (credited to Eisenhower) couldn't be more true in entrepreneurship.
The important thing is the process of planning — but you also have to be willing to throw out that plan. The single biggest advantage you have as a start-up versus an established business is your ability to be nimble, to act, to change. If you're beholden to your ideas or to your business plan, you will fail.
Thomas Edison is a great example of someone who most people think of as an inventor because of the thousands of ideas he came up with. But when someone asked Edison about his ideas he replied that he didn't care about his ideas. The only ideas that were interesting to him were the ones that he could commercialize. "I am quite correctly described as more of a sponge than an inventor," he said. Yet most people in fact don't realize that the light bulb was not Edison's idea; he just commercialized it. Edison thought of himself as an entrepreneur. (more)
Being an entrepreneur has more to do with a state of mind than a state of employment. And when you think of being an entrepreneur, it doesn't just mean starting a company — I've started over half a dozen successful companies but have also brought my experience to established companies. Right now, I am the President of a public company I did not start — so I may in fact be an "entrepreneur gone bad."
One of the most consistent things I hear entrepreneurs say is, "I have this great idea." And the advice they often get is to write a business plan and make it their bible. Most entrepreneurs firmly believe there is nothing better than a solid plan couples with a great idea. But don't confuse being an entrepreneur with being an inventor. Great ideas are a dime a dozen. Action is what differentiates an entrepreneur from an inventor. If you want to focus on ideas, become an inventor — not an entrepreneur.
And as for plans, entrepreneurs probably spend more time on our business plans than just about anything else we do. But business plans are often useless, even counterproductive; the old adage that "planning is everything; plans are nothing" (credited to Eisenhower) couldn't be more true in entrepreneurship.
The important thing is the process of planning — but you also have to be willing to throw out that plan. The single biggest advantage you have as a start-up versus an established business is your ability to be nimble, to act, to change. If you're beholden to your ideas or to your business plan, you will fail.
Thomas Edison is a great example of someone who most people think of as an inventor because of the thousands of ideas he came up with. But when someone asked Edison about his ideas he replied that he didn't care about his ideas. The only ideas that were interesting to him were the ones that he could commercialize. "I am quite correctly described as more of a sponge than an inventor," he said. Yet most people in fact don't realize that the light bulb was not Edison's idea; he just commercialized it. Edison thought of himself as an entrepreneur. (more)
NYT: Are We Becoming Less Entrepreneurial?
By Scott A. Shane
In the past I have written about the declining rate of entrepreneurship in the United States and have shown some charts demonstrating it. In today’s post, I want to return to my discussion of this problem and provide evidence of the trend from three different sources.
First, I have produced a modified version of a chart on the number of new employer firms — firms that have at least one employee — formed annually per thousand people (thick blue line) in the United States from 1990-2007. (I originally posted a version of this chart on the U.S. News and World Report Web site when I blogged there.) I have added the linear trend line (thin black line) to show that this rate, though highly variable, is trending downward. On a per capita basis, we are creating fewer employer firms per capita than we did back in 1990. (more)
In the past I have written about the declining rate of entrepreneurship in the United States and have shown some charts demonstrating it. In today’s post, I want to return to my discussion of this problem and provide evidence of the trend from three different sources.
First, I have produced a modified version of a chart on the number of new employer firms — firms that have at least one employee — formed annually per thousand people (thick blue line) in the United States from 1990-2007. (I originally posted a version of this chart on the U.S. News and World Report Web site when I blogged there.) I have added the linear trend line (thin black line) to show that this rate, though highly variable, is trending downward. On a per capita basis, we are creating fewer employer firms per capita than we did back in 1990. (more)
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