In June 2006, Bill Gates announced he was stepping down from his full-time role at Microsoft and shifting his focus to the Bill and Melinda Gates Foundation. When the world's richest entrepreneur decides to take a step in the nonprofit direction, he may be onto something.
In the last decade, a generation of social entrepreneurs has become increasingly visible by creating self-sustaining businesses. Social entrepreneurs are similar to regular entrepreneurs with one main difference--their gains aren't measured in financial profit, but by the impact they have on society.
Many entrepreneurs have started social enterprises, breaking nonprofit tradition by blending mission with money, referred to as "double bottom line" businesses. Jerr Boschee, executive director and founder of The Institute for Social Entrepreneurship, says for a while, nonprofits were hung up on the double bottom line because it seemed contradictory to merge doing well with doing good. But Boschee says self-sufficiency has become necessary for many nonprofit groups to operate. "We have today three times as many nonprofits as we had 30 years ago, and they're all at the same watering hole."
No longer limited by philanthropic donations and public subsidies, these organizations now have a way of being self-sufficient while still helping others in social need. And for some of these organizations, helping others means helping them start their own businesses.
Helping Others Get Started
Mi Kitchen es Su Kitchen is a kitchen incubator in Queens, New York, dedicated to helping struggling entrepreneurs start and develop food businesses. The kitchen offers business counseling, mentoring and support for entrepreneurs who have a line of goods, but are limited in funds and business knowledge.
"We go through the whole thing," says founder Kathrine Gregory. "How do you market? How do you write a business plan?"
The 55-year-old food industry veteran is an entrepreneur herself and offers her know-how by partnering with nonprofits that house kitchen facilities. In 1996, Gregory started her kitchen incubator concept with an organization that had an 850-square-foot kitchen in Brooklyn. The facility was being used for job training, but operation costs were quickly eating up the funding. Gregory convinced the board to let her test the kitchen incubator concept, and the resulting profits helped turn the nonprofit into a self-sustaining business.
Today, Mi Kitchen es Su Kitchen operates in conjunction with the Consortium for Worker Education and Artisan Baking Center. With a 5,000-square-foot facility, the kitchen is used for culinary arts training, general education and ESL courses during the day. At night the kitchen transforms into a bustling entrepreneurial atmosphere, complete with a dough press, chocolate melter, and a variety of mixers and ovens.
According to Gregory, most entrepreneurs at Mi Kitchen es Su Kitchen--who pay $180 to $220 per shift to use the space--turn a profit within the first six to 12 months. The revenue made from rentals has totaled about $200,000.
"People think this is an amazing concept," Gregory says. "It's really a win-win, everyplace that you look." She believes that leveling the playing field for low-income entrepreneurs is one reason her idea has hit home with the local community.
Kiva founders Matt Flannery, 30, and his wife, Jessica, also took the business partner angle with their Kiva.orgmicrolending website. The two started Kiva after traveling to Africa and learning of the enterprising atmosphere there.
"We interviewed people every day for weeks and talked about people's business plans," says Matt. "I thought it was fascinating that I was talking about business, business plans and scaling an inventory challenges in a place that I only associated with deep poverty."
The experience stayed with Matt and Jessica when the two returned to California and partnered with four others, working out of coffee shops and a tiny San Francisco apartment to develop the Kiva website and concept. Their goal remains showing people the business dynamic they experienced in Africa. "It was a different take on poverty, a different take on Africa than you typically hear when you're out here in the United States," Matt says.
On the Kiva website, lenders can donate to entrepreneurs trying to start a business in third-world countries. Loans start at $25, which goes a long way in the third world. The entrepreneurs pay back the loans 99 percent of the time--a remarkable default rate in the finance world. "[It's] connecting as an equal or a business partner, an entrepreneur, rather than as a charitable endeavor or benefactor or taking pity on someone else," Matt says.
And pity is something Matt says the media has thrived on for some time. "Often we want to hear about war and bloodshed and disease and that's only a small part of the story about what goes on in a huge continent like Africa," he adds.
Like Gregory, Matt also struggled to convince others about the viability of his idea. "One attribute of good ideas is that they challenge people's existing mindset," he says. "Now that I know that, I wouldn't have put so much weight in other people's opinions."
Why It's Working
Despite some skepticism, "Social entrepreneurship is really taking off around the world," says David Bornstein, author of How to Change the World: Social Entrepreneurs and the Power of New Ideas, which has been translated into 16 languages. In his book, Bornstein chronicles the work of Ashoka, an international organization that helps fund entrepreneurs with innovative solutions to social problems.
According to Bornstein, the relentless won't-take-no-for-an-answer quality of entrepreneurs is what gives them their edge in business. "They absorb the failure, they learn, they surround themselves with a good team and then they redirect." These same attributes, when applied in the social realm, can result in community-changing solutions.
In the end, Gregory says it's the energy of the entrepreneurs she comes into contact with that sustain her in her business. For Matt and Jessica, being part of something larger than themselves has inspired them.
"It's not about me, it's not about my organization," Matt says. "It's about people connecting to people and using technology as a conduit."
Tuesday, October 23, 2007
Wednesday, October 17, 2007
FOOTSTEPS OF THE SUCCESSFUL PEOPLES
What do Sir Richard Branson and Michael Dell have in common ?
Aside from their obvious success and wealth today, they were both recognized by Entrepreneur magazine as "Young Millionaires" in the late '80s. When we first interviewed Dell, he was 23 years old and fresh out of college. He spoke about the struggles of running a $6 million business while attending school, but said the rewards were more than worth it. And you can bet that today, as the world's second-largest PC maker, he'd say the exact same thing.
Our past Young Millionaires have plenty in common; for instance, many of their ideas were initially greeted with skepticism. That's what happened to California Pizza Kitchen founders Larry Flax and Rick Rosenfield, who told us in 1986 that people thought they were crazy for going into the restaurant business. Yet today, CPK is an industry leader with more than 210 locations in 29 states and eight countries.
When we first highlighted the businesses below, they were relatively unknown. But now, they're household names virtually synonymous with the products they sell. Find out just how far they've come.
Liz Lange, 40
Founder of Liz Lange Maternity
Featured in November 2001
Then: In 1996, prospective retailers told Lange that pregnant women wouldn't spend money on her sophisticated maternity wear. Ignoring them, Lange borrowed money from friends and family and opened a small office in New York City, where she sold made-to-order clothing to women by appointment. Thanks to word-of-mouth, Lange's business started booming, and in 2001, she reported $3 million plus in sales.
Now: Lange continues to prove those retailers wrong. Today, the Liz Lange Maternity Collection, which celebrates its 10th anniversary this month, can be found at Lange's three Liz Lange Maternity flagship boutiques, and her secondary line, Liz Lange for Target, is the exclusive maternity line at all Target stores and on Target.com. Though Lange wouldn't release sales figures, she says the company has grown in huge multiples since 2001. Lange adds that her constant activity, which includes lecturing around the country, writing her monthly column for Prevention magazine, and spending time with her family, suits her perfectly. "I'd be very bored without it. I've always dreamt big, but never thought it could be like this," she says. "Not a day goes by that I don't get stopped on the street or receive an e-mail from someone telling me I made a difference in their life."
Larry Leight, 54
Co-founder of Oliver Peoples
Featured in October 1989
Then: How many companies can say their second year of sales surpassed their first by 400 percent? Not many. But Oliver Peoples, which began selling antique eyewear in 1986, reported that statistic to Entrepreneur back in 1989. "The business has been a giant success, and we're still young!" said Leight. In 1987, Oliver Peoples created its own brand, Oliver Peoples Eyewear, and named Leight the chief designer.
Now: Oliver Peoples is now preparing to launch its 20th anniversary campaign and showcase its new collections. Since we last spoke with Leight, he's been named one of the top nine American designers by Conde Nast Publications and Ford Motor Company. Though the company has changed, it's continued to grow dramatically. In fact, Leight says the company continues exceeding sales projections each year. Perhaps the most important business lesson Leight has learned is to not give up. "Even if everyone is against you, if you are passionate about something, you have to fight for it," says Leight. As for the next 20 years, Leight hopes to continue designing expressive, stimulating eyewear that will appeal to the brand's global clientele.
Richard Allred, 44
Founder of Toes on the Nose
Featured in November 1999
Then: Sometimes you have to test out more than one path before settling on a career. That's what Allred learned after graduating from the University of Southern California and getting involved with real estate. After he realized it wasn't the right path for him, Allred decided to take a leap of faith and gather $110,000 from friends and savings to build his company, creating Hawaiian-print clothing. When interviewed in 1999, Allred's 7-year-old company was expecting to double from $5 million to $10 million in sales that year.
Now: When we last spoke with Allred, he said he hoped his casual, classic surf clothing would become timeless fashion. Now, with 33 employees and about eight years under his belt, Allred can be confident that Toes on the Nose has done just that. Though Allred prefers not to release his total sales volume anymore, he says the company has been focusing on expanding internationally and has established beneficial partnerships with International Marketing Group. "We're doing a lot. We've leveraged our brand in different marketplaces, which has allowed us to grow with the help of other peoples' expertise," says Allred. But more than anything, Allred says the last 15 years have taught him the importance of a good internal support team. Since his marriage and the birth of his daughter, Allred has been forced to learn how to delegate and trust in others' abilities.
Tony Hsieh, 33
CEO and Director of Zappos.com
Featured in November 2003
Then: It all started in 1999 when Nick Swinmurn made an unproductive trip to the mall in search of shoes. Disappointed by his lack of purchases, Swinmurn got the idea for Zappos.com, a one-stop shop for men's, women's and children's shoes. But first, Swinmurn needed financial backing. He persuaded Tony Hsieh, who had earned $270 million from selling LinkExchange to Microsoft in 1998, to jump on board. "On the surface, it seemed like the quintessential poster child for a bad dotcom idea," said Hsieh four years ago. But after recognizing the $40 billion market, Hsieh saw potential. By 2003, the company was projecting $65 million in sales.
Now: Potential was an understatement. This year, Zappos.com--which is derived from the Spanish word for shoes, zapatos--is projecting $800 million in sales, bringing the company that much closer to its original goal of achieving $1 billion in gross merchandise sales by 2010. But not everything has remained constant with the company, starting with its image. "Back in 2003, we thought of ourselves as a shoe company that offered great service. Today, we really think of the Zappos brand as about great service, and we just happen to sell shoes," says Hsieh. Zappos.com has expanded by adding apparel, handbags, sunglasses and watches to the site, and is promising more to come. Another key change: Founder Swinmurn left Zappos in 2006 to start STAGR, a website focusing on customized apparel.
Julie Aigner-Clark, 41
Founder of The Baby Einstein Company
Featured in November 2000
Then: From the beginning, Aigner-Clark's business ambitions have been focused on her family. They started with her infant daughter, Aspen, in 1995, when Aigner-Clark realized there were no age-appropriate products for sharing her passion for art and classical music. So the former teacher took matters into her own hands and created her first video, Baby Einstein, featuring captivating pictures and mothers speaking different languages. After pitching her idea for two years and not making any progress, Aigner-Clark got her big break at the American International Toy Fair in New York City, where buyers snatched up her product. By 2000, the company had reached sales of $10 million.
Now: In 2001, Baby Einstein was acquired by The Walt Disney Company, who continues nurturing the brand and has seen sales climb past the $200 million mark. As for Aigner-Clark, it's been a bittersweet transition. "It's not as if my 'baby' grew up and went to college; it's as if my baby was picked up by an alien space craft and beamed to another planet," Aigner-Clark says. Perhaps the best lesson she's learned through it all: "Don't take anything for granted. Enjoy the moment. Recognize the beauty and good fortune. And take pictures." This ambitious mother of two, who was diagnosed with breast cancer in 2004, shows no signs of slowing down. She recently started a new business, The Safe Side, a nonprofit that deals with children's safety, and she's gone back to her roots by teaching literature two days a week.
Aside from their obvious success and wealth today, they were both recognized by Entrepreneur magazine as "Young Millionaires" in the late '80s. When we first interviewed Dell, he was 23 years old and fresh out of college. He spoke about the struggles of running a $6 million business while attending school, but said the rewards were more than worth it. And you can bet that today, as the world's second-largest PC maker, he'd say the exact same thing.
Our past Young Millionaires have plenty in common; for instance, many of their ideas were initially greeted with skepticism. That's what happened to California Pizza Kitchen founders Larry Flax and Rick Rosenfield, who told us in 1986 that people thought they were crazy for going into the restaurant business. Yet today, CPK is an industry leader with more than 210 locations in 29 states and eight countries.
When we first highlighted the businesses below, they were relatively unknown. But now, they're household names virtually synonymous with the products they sell. Find out just how far they've come.
Liz Lange, 40
Founder of Liz Lange Maternity
Featured in November 2001
Then: In 1996, prospective retailers told Lange that pregnant women wouldn't spend money on her sophisticated maternity wear. Ignoring them, Lange borrowed money from friends and family and opened a small office in New York City, where she sold made-to-order clothing to women by appointment. Thanks to word-of-mouth, Lange's business started booming, and in 2001, she reported $3 million plus in sales.
Now: Lange continues to prove those retailers wrong. Today, the Liz Lange Maternity Collection, which celebrates its 10th anniversary this month, can be found at Lange's three Liz Lange Maternity flagship boutiques, and her secondary line, Liz Lange for Target, is the exclusive maternity line at all Target stores and on Target.com. Though Lange wouldn't release sales figures, she says the company has grown in huge multiples since 2001. Lange adds that her constant activity, which includes lecturing around the country, writing her monthly column for Prevention magazine, and spending time with her family, suits her perfectly. "I'd be very bored without it. I've always dreamt big, but never thought it could be like this," she says. "Not a day goes by that I don't get stopped on the street or receive an e-mail from someone telling me I made a difference in their life."
Larry Leight, 54
Co-founder of Oliver Peoples
Featured in October 1989
Then: How many companies can say their second year of sales surpassed their first by 400 percent? Not many. But Oliver Peoples, which began selling antique eyewear in 1986, reported that statistic to Entrepreneur back in 1989. "The business has been a giant success, and we're still young!" said Leight. In 1987, Oliver Peoples created its own brand, Oliver Peoples Eyewear, and named Leight the chief designer.
Now: Oliver Peoples is now preparing to launch its 20th anniversary campaign and showcase its new collections. Since we last spoke with Leight, he's been named one of the top nine American designers by Conde Nast Publications and Ford Motor Company. Though the company has changed, it's continued to grow dramatically. In fact, Leight says the company continues exceeding sales projections each year. Perhaps the most important business lesson Leight has learned is to not give up. "Even if everyone is against you, if you are passionate about something, you have to fight for it," says Leight. As for the next 20 years, Leight hopes to continue designing expressive, stimulating eyewear that will appeal to the brand's global clientele.
Richard Allred, 44
Founder of Toes on the Nose
Featured in November 1999
Then: Sometimes you have to test out more than one path before settling on a career. That's what Allred learned after graduating from the University of Southern California and getting involved with real estate. After he realized it wasn't the right path for him, Allred decided to take a leap of faith and gather $110,000 from friends and savings to build his company, creating Hawaiian-print clothing. When interviewed in 1999, Allred's 7-year-old company was expecting to double from $5 million to $10 million in sales that year.
Now: When we last spoke with Allred, he said he hoped his casual, classic surf clothing would become timeless fashion. Now, with 33 employees and about eight years under his belt, Allred can be confident that Toes on the Nose has done just that. Though Allred prefers not to release his total sales volume anymore, he says the company has been focusing on expanding internationally and has established beneficial partnerships with International Marketing Group. "We're doing a lot. We've leveraged our brand in different marketplaces, which has allowed us to grow with the help of other peoples' expertise," says Allred. But more than anything, Allred says the last 15 years have taught him the importance of a good internal support team. Since his marriage and the birth of his daughter, Allred has been forced to learn how to delegate and trust in others' abilities.
Tony Hsieh, 33
CEO and Director of Zappos.com
Featured in November 2003
Then: It all started in 1999 when Nick Swinmurn made an unproductive trip to the mall in search of shoes. Disappointed by his lack of purchases, Swinmurn got the idea for Zappos.com, a one-stop shop for men's, women's and children's shoes. But first, Swinmurn needed financial backing. He persuaded Tony Hsieh, who had earned $270 million from selling LinkExchange to Microsoft in 1998, to jump on board. "On the surface, it seemed like the quintessential poster child for a bad dotcom idea," said Hsieh four years ago. But after recognizing the $40 billion market, Hsieh saw potential. By 2003, the company was projecting $65 million in sales.
Now: Potential was an understatement. This year, Zappos.com--which is derived from the Spanish word for shoes, zapatos--is projecting $800 million in sales, bringing the company that much closer to its original goal of achieving $1 billion in gross merchandise sales by 2010. But not everything has remained constant with the company, starting with its image. "Back in 2003, we thought of ourselves as a shoe company that offered great service. Today, we really think of the Zappos brand as about great service, and we just happen to sell shoes," says Hsieh. Zappos.com has expanded by adding apparel, handbags, sunglasses and watches to the site, and is promising more to come. Another key change: Founder Swinmurn left Zappos in 2006 to start STAGR, a website focusing on customized apparel.
Julie Aigner-Clark, 41
Founder of The Baby Einstein Company
Featured in November 2000
Then: From the beginning, Aigner-Clark's business ambitions have been focused on her family. They started with her infant daughter, Aspen, in 1995, when Aigner-Clark realized there were no age-appropriate products for sharing her passion for art and classical music. So the former teacher took matters into her own hands and created her first video, Baby Einstein, featuring captivating pictures and mothers speaking different languages. After pitching her idea for two years and not making any progress, Aigner-Clark got her big break at the American International Toy Fair in New York City, where buyers snatched up her product. By 2000, the company had reached sales of $10 million.
Now: In 2001, Baby Einstein was acquired by The Walt Disney Company, who continues nurturing the brand and has seen sales climb past the $200 million mark. As for Aigner-Clark, it's been a bittersweet transition. "It's not as if my 'baby' grew up and went to college; it's as if my baby was picked up by an alien space craft and beamed to another planet," Aigner-Clark says. Perhaps the best lesson she's learned through it all: "Don't take anything for granted. Enjoy the moment. Recognize the beauty and good fortune. And take pictures." This ambitious mother of two, who was diagnosed with breast cancer in 2004, shows no signs of slowing down. She recently started a new business, The Safe Side, a nonprofit that deals with children's safety, and she's gone back to her roots by teaching literature two days a week.
Saturday, October 13, 2007
ENTREPRENEUR
Do you have what it takes to be a successful entrepreneur?
Ask yourself the following questions:
Are you a self-starter ?
Are you a leader ?
Do you take responsibility for your own actions ?
Are you organized ?
Are you a decision maker ?
Are you determined ?
Are you financially responsible ?
Do you have management skills ?
Does your family support your decision ?
Are you trustworthy ?
Are you open to opportunity ?
Are you willing to learn ?
Are you able to move outside your comfort zone ?
Do you work well with other people ?
Were you able to answer "YES" to the majority of these questions?
If so, it is time to start planning for your entrepreneurial success.
Two noted educators and authors have offered a profile for today's entrepreneur.
Rita Gunther McGrath, associate professor at Columbia University Graduate School of Business, and Ian MacMillan, the Fred Sullivan Professor of Entrepreneurship at the Wharton School of Business, University of Pennsylvania, are authors of The Entrepreneurial Mindset: Strategies for Continuously Creating Opportunity in an Age of Uncertainty. Using the term "habitual entrepreneur," they suggest five common characteristics :
Entrepreneurs are ...
passionately seek out new opportunities
pursue opportunities with enormous discipline
pursue only the very best opportunities and avoid exhausting themselves and their organizations by chasing after every option
focus on execution -- specifically, adaptive execution
engage the energies of everyone in their domain
Do you see a bit of yourself in their description?
Sometimes it's best to assess our own spirit by evaluating the energy that drove earlier entrepreneurs, those who have already traveled the path we now find ourselves on.
Sam Walton (1919-1992), founder of one of the fastest-growing and most profitable retail establishments (Wal-Mart) and wholesale organizations (Sam's Club) once said, "I probably have traveled and walked into more variety stores than anybody in America. I am just trying to get ideas, any kind of ideas that will help our company. Most of us don't invent ideas. We take the best ideas from someone else."
Ten years after Walton's death, entrepreneurs still try to emulate the man who learned from the world around him -- and turned those lessons into profit. We can learn a lot from our predecessors. They have blazed trails that we as new entrepreneurs have yet to discover. Sometimes it is best to move forward by looking backward.
What stores have you walked into to learn from others?
It is smart, however, as we walk others' paths and allow our spirits to soar to recognize our limitations. We cannot all be Bill Gates, Oprah Winfrey, or even Edward Lowe.
Edward Lowe invented cat litter in 1945, making the feline one of the most popular house pets in America. More important, in 1985 Lowe created the Edward Lowe Foundation, a resource center dedicated to helping entrepreneurs and small business owners through educational programs, information services, research tools, and other support services.
"The real roots of economic growth in the United States came about through the ingenious efforts of the entrepreneurial-spirited individuals and their small, independent companies, rather than through the giant companies," said Lowe. "We must give credit to the mountain of men of the past -- from them came the grassroots of American greatness."
Let's not forget the lessons to be learned from Andrew Carnegie, P.T. Barnum, Mary Kay Ash, Ben and Jerry, and others. When you feel as though you are stuck and are not moving forward with your business idea, stop. Look back. Allow the innovation of others who came before you to inspire you for the future.
Do you possess the same entrepreneurial spirit that made these individuals successful?
Where will you begin?
With a business plan. Enjoy this learning and growing process and watch your ideas mature and evolve with your plan.
Ask yourself the following questions:
Are you a self-starter ?
Are you a leader ?
Do you take responsibility for your own actions ?
Are you organized ?
Are you a decision maker ?
Are you determined ?
Are you financially responsible ?
Do you have management skills ?
Does your family support your decision ?
Are you trustworthy ?
Are you open to opportunity ?
Are you willing to learn ?
Are you able to move outside your comfort zone ?
Do you work well with other people ?
Were you able to answer "YES" to the majority of these questions?
If so, it is time to start planning for your entrepreneurial success.
Two noted educators and authors have offered a profile for today's entrepreneur.
Rita Gunther McGrath, associate professor at Columbia University Graduate School of Business, and Ian MacMillan, the Fred Sullivan Professor of Entrepreneurship at the Wharton School of Business, University of Pennsylvania, are authors of The Entrepreneurial Mindset: Strategies for Continuously Creating Opportunity in an Age of Uncertainty. Using the term "habitual entrepreneur," they suggest five common characteristics :
Entrepreneurs are ...
passionately seek out new opportunities
pursue opportunities with enormous discipline
pursue only the very best opportunities and avoid exhausting themselves and their organizations by chasing after every option
focus on execution -- specifically, adaptive execution
engage the energies of everyone in their domain
Do you see a bit of yourself in their description?
Sometimes it's best to assess our own spirit by evaluating the energy that drove earlier entrepreneurs, those who have already traveled the path we now find ourselves on.
Sam Walton (1919-1992), founder of one of the fastest-growing and most profitable retail establishments (Wal-Mart) and wholesale organizations (Sam's Club) once said, "I probably have traveled and walked into more variety stores than anybody in America. I am just trying to get ideas, any kind of ideas that will help our company. Most of us don't invent ideas. We take the best ideas from someone else."
Ten years after Walton's death, entrepreneurs still try to emulate the man who learned from the world around him -- and turned those lessons into profit. We can learn a lot from our predecessors. They have blazed trails that we as new entrepreneurs have yet to discover. Sometimes it is best to move forward by looking backward.
What stores have you walked into to learn from others?
It is smart, however, as we walk others' paths and allow our spirits to soar to recognize our limitations. We cannot all be Bill Gates, Oprah Winfrey, or even Edward Lowe.
Edward Lowe invented cat litter in 1945, making the feline one of the most popular house pets in America. More important, in 1985 Lowe created the Edward Lowe Foundation, a resource center dedicated to helping entrepreneurs and small business owners through educational programs, information services, research tools, and other support services.
"The real roots of economic growth in the United States came about through the ingenious efforts of the entrepreneurial-spirited individuals and their small, independent companies, rather than through the giant companies," said Lowe. "We must give credit to the mountain of men of the past -- from them came the grassroots of American greatness."
Let's not forget the lessons to be learned from Andrew Carnegie, P.T. Barnum, Mary Kay Ash, Ben and Jerry, and others. When you feel as though you are stuck and are not moving forward with your business idea, stop. Look back. Allow the innovation of others who came before you to inspire you for the future.
Do you possess the same entrepreneurial spirit that made these individuals successful?
Where will you begin?
With a business plan. Enjoy this learning and growing process and watch your ideas mature and evolve with your plan.
Sunday, September 30, 2007
MICROFINANCE
In their office in San Francisco's Mission District, Matt and Jessica Flannery and Premal Shah work with the fervor and techno savvy of an Internet startup aiming for an IPO. But they aren't chasing the cash for themselves.
Matt and Jessica Flannery and Premal Shah bring a youthful vibe to the world of microfinance. They're doing it for Esther Egbulu in Nigeria, a mother of six who wants an $800 loan to stock her shop with frozen chickens and turkey, or 31-year-old Choeun Sonin, who's requesting $1,000 to purchase a motorcycle taxi — just two of 15,000 entrepreneurs from 36 countries that their company, Kiva, has already helped.
Kiva, which means "unity" in Swahili, is a lending organization with a twist: Anyone with a bit of money and an Internet connection can step forward as a microlender to assist struggling third-world entrepreneurs get out of poverty.
After logging in, you can scroll through profiles of entrepreneurs, descriptions of their businesses, and the loan amounts they're requesting. Once you've decided who you want to lend to, you choose how much to lend, starting at as little as $25. (Individual lenders can fund an entire loan, but most of Kiva's loans are funded by multiple lenders.)
Funds are distributed to entrepreneurs through local non-profit microfinance partners in specific countries. In Nigeria, Esther Egbulu wants an $800 loan to stock her shop with frozen chickens.The key is that the company is based on loans, not donations. "You're fundamentally connecting with someone else in a way that's based on mutual dignity, not this supplicant-benefactor relationship that you often see in philanthropy," says Premal.
There are some differences from traditional lending. Kiva loans require no collateral and they are zero interest. PayPal (Premal's former employer) processes the transactions without any fees.
Premal says the average loan request is about $650 and the average lender usually funds three different entrepreneurs at $25 each.
8% of the lenders come from the U.S., 10% from Canada, and the remainder from the rest of the world. Kiva says entrepreneurs pay back their loans an incredible 99% of the time — a default rate unheard of at traditional financial institutions. (The Kiva team expects the rate to increase to 5% as more borrowers complete the loan cycle.) And according to Premal, most lenders reinvest their money in other entrepreneurs after a loan is paid back. Kiva's operational costs are covered by donations from lenders. The company does not take a commission from the loans facilitated on the site.
Matt and Jessica Flannery created Kiva after discovering different career goals in a pre-marriage counseling course. The way Kiva was founded is almost as interesting as what it's accomplishing. When Matt and Jessica attended a pre-marriage counseling session, they discovered their career goals could keep them apart. Jessica wanted to go to Africa to study microfinance; Matt was headed to Silicon Valley.
"We sort of just thought, ‘Well, we're supposed to be together. This will work itself out,'" Jessica recalls.
Things did work out, but in a way they hadn't first imagined. Shortly after they were married, Matt went to work for TiVo and Jessica went to Africa to work with a microfinance organization.
After visiting Jessica in Africa, Matt got the idea that perhaps what she was doing, microfinance, and what he was doing, high tech, could be combined — using the Internet to connect lenders and entrepreneurs.
They tested the concept on friends and family, spamming their wedding list and raising more than $3,000 for a handful of small businesses in Uganda.
Now Kiva has loans totaling $10 million. Matt, Jessica and Premal credit their corresponding strengths for Kiva's success so far: Matt's technological know-how, Premal's salesmanship and Jessica's heart.
Kiva's president Premal Shah says corruption is a reality and he hopes transparency on Kiva's site will boost lenders confidence in microfinance. Kiva faces new challenges as its base of lenders and entrepreneurs expands.
Ensuring that money actually funds business is one problem. For instance, a borrower in Cambodia used a loan to fund a family wedding. But a Kiva volunteer monitoring loans in Cambodia discovered what happened then blogged about it — on Kiva's own website. "We know that corruption exists," says Premal. "We are adamant about exposing it on our website." Transparency, he says, is the organization's goal.
In the grand scheme of things, $10 million in loans might seem like a small dent in world poverty, but Kiva's founders are thinking big. "In year five we're looking at anywhere between $150 million to $280 million," says Premal — potentially enough to move the GDP of an entire nation at some point.
For now, it's enough to change the lives of 15,000 struggling entrepreneurs — and perhaps those making the loans, as well.
Matt and Jessica Flannery and Premal Shah bring a youthful vibe to the world of microfinance. They're doing it for Esther Egbulu in Nigeria, a mother of six who wants an $800 loan to stock her shop with frozen chickens and turkey, or 31-year-old Choeun Sonin, who's requesting $1,000 to purchase a motorcycle taxi — just two of 15,000 entrepreneurs from 36 countries that their company, Kiva, has already helped.
Kiva, which means "unity" in Swahili, is a lending organization with a twist: Anyone with a bit of money and an Internet connection can step forward as a microlender to assist struggling third-world entrepreneurs get out of poverty.
After logging in, you can scroll through profiles of entrepreneurs, descriptions of their businesses, and the loan amounts they're requesting. Once you've decided who you want to lend to, you choose how much to lend, starting at as little as $25. (Individual lenders can fund an entire loan, but most of Kiva's loans are funded by multiple lenders.)
Funds are distributed to entrepreneurs through local non-profit microfinance partners in specific countries. In Nigeria, Esther Egbulu wants an $800 loan to stock her shop with frozen chickens.The key is that the company is based on loans, not donations. "You're fundamentally connecting with someone else in a way that's based on mutual dignity, not this supplicant-benefactor relationship that you often see in philanthropy," says Premal.
There are some differences from traditional lending. Kiva loans require no collateral and they are zero interest. PayPal (Premal's former employer) processes the transactions without any fees.
Premal says the average loan request is about $650 and the average lender usually funds three different entrepreneurs at $25 each.
8% of the lenders come from the U.S., 10% from Canada, and the remainder from the rest of the world. Kiva says entrepreneurs pay back their loans an incredible 99% of the time — a default rate unheard of at traditional financial institutions. (The Kiva team expects the rate to increase to 5% as more borrowers complete the loan cycle.) And according to Premal, most lenders reinvest their money in other entrepreneurs after a loan is paid back. Kiva's operational costs are covered by donations from lenders. The company does not take a commission from the loans facilitated on the site.
Matt and Jessica Flannery created Kiva after discovering different career goals in a pre-marriage counseling course. The way Kiva was founded is almost as interesting as what it's accomplishing. When Matt and Jessica attended a pre-marriage counseling session, they discovered their career goals could keep them apart. Jessica wanted to go to Africa to study microfinance; Matt was headed to Silicon Valley.
"We sort of just thought, ‘Well, we're supposed to be together. This will work itself out,'" Jessica recalls.
Things did work out, but in a way they hadn't first imagined. Shortly after they were married, Matt went to work for TiVo and Jessica went to Africa to work with a microfinance organization.
After visiting Jessica in Africa, Matt got the idea that perhaps what she was doing, microfinance, and what he was doing, high tech, could be combined — using the Internet to connect lenders and entrepreneurs.
They tested the concept on friends and family, spamming their wedding list and raising more than $3,000 for a handful of small businesses in Uganda.
Now Kiva has loans totaling $10 million. Matt, Jessica and Premal credit their corresponding strengths for Kiva's success so far: Matt's technological know-how, Premal's salesmanship and Jessica's heart.
Kiva's president Premal Shah says corruption is a reality and he hopes transparency on Kiva's site will boost lenders confidence in microfinance. Kiva faces new challenges as its base of lenders and entrepreneurs expands.
Ensuring that money actually funds business is one problem. For instance, a borrower in Cambodia used a loan to fund a family wedding. But a Kiva volunteer monitoring loans in Cambodia discovered what happened then blogged about it — on Kiva's own website. "We know that corruption exists," says Premal. "We are adamant about exposing it on our website." Transparency, he says, is the organization's goal.
In the grand scheme of things, $10 million in loans might seem like a small dent in world poverty, but Kiva's founders are thinking big. "In year five we're looking at anywhere between $150 million to $280 million," says Premal — potentially enough to move the GDP of an entire nation at some point.
For now, it's enough to change the lives of 15,000 struggling entrepreneurs — and perhaps those making the loans, as well.
Saturday, September 22, 2007
BUSINESS NICHE
Making a million is a milestone , the defining moment of success for many entrepreneurs and an attainable goal for those tapped into today's hottest trends. Entrepreneurs are keeping their fingers on the pulse of what's hot in today's marketplace. They are the trendsetters, the pioneers, the ones to watch as they lead the pack, followed closely by franchisors poised to capitalize on winning ideas and spread concepts nationwide.
Already dreaming about living the good life as a millionaire?
But keep in mind that regardless of the route you choose , whether it's going solo or buying a franchise , arriving at your first million in sales will require persistence, strategy and, in most cases, multiple locations.
And in case you doubt it's doable, here are some examples of savvy entrepreneurs who went from zero to a million.
FOUNTAIN OF YOUTH
With the first baby boomers starting to hit 60, America is fighting tooth and nail to stave off the signs of time. In 2004, Americans spent about $44.6 billion on anti-aging products and services, according to Business Communications Co. Inc., an information resource company. But that's nothing compared to the $72 billion market it's expected to mature into by 2009.
Why the sense of urgency? Vanity is part of it, and the fact that we're living longer adds to the need for enduring youth. But there's also the fact that many baby boomers won't be financially able to leave the work force as early as their parents did and will have no choice but to stay vital and active. According to a study by the National Association of Realtors, the median age at which baby boomers expect to stop working is 70, but 27 percent say they never intend to stop working. This will open up all kinds of opportunities to entrepreneurs , such as those who can create wellness centers and bring together a variety of health and nutrition specialists under one roof.
Jeni Garrett is one of those entrepreneurs providing a mind and body oasis to baby boomers desperate for rejuvenation. In 2001, after enjoying the benefits of spa visits herself, Garrett, now 28, founded The Woodhouse Day Spa, a luxury spa in Victoria, Texas. A year and a half later, she set her sights on turning the brand into a household name. She first planned to open more company-owned locations, but Garrett soon turned to franchising to spread the concept. "With our business model, you really need an owner/operator present because of the staffing issues and to do the marketing initiative," she says. "Franchising lent itself very well to that."
To move forward, Garrett knew the foundation had to be solid. She chose a top-notch franchise lawyer and streamlined operations, even ordering the fixtures for the franchisees. With her franchise system in place, she has positioned herself perfectly to accommodate the growing clientele of baby boomers. To further meet the needs of this segment, she added a menu of services that boasts 15 holistic, all-natural treatments that focus more on wellness than pampering. She is enjoying success with a multimillion-dollar business as more boomer women and men , make the spa experience part of their lifestyles. Says Garrett, "We're seeing [spas] move from a level of luxury to a level of necessity for wellness."
THE SWEET LIFE
The nation's sweet tooth is becoming more insatiable, driving everything from the franchising industry, where cookies and ice cream concepts are growing categories, to the fine-dining industry, where diners are staying more often for the grand finale.
Dessert has become such a significant portion of the food industry that it's warranted its own annual trade show since 2003. Meanwhile, according to Hudson Riehle, senior vice president of research at the National Restaurant Association, almost 1 in 3 fine-dining operators reported that consumers bought more desserts last year than in the two previous years. In an increasing number of cases, high-end desserts are stealing the spotlight, as entire independent restaurant concepts are being founded on the premise of tasty, upscale indulgence.
Paul Conforti and Kim Moore, 36 and 40, respectively, researched the restaurant industry for a year while attending Harvard Business School before they opened the doors to their first upscale, dessert-focused restaurant, Finale Desserterie & Bakery, in Boston in 1998. Offering an exquisite menu featuring Valrhona chocolate, honey caramel gelato, nougat mousse and cherry almond Florentines, they are often credited with the distinction of starting the first high-end dessert concept. Their focus is as much on high-quality ingredients as it is on the overall experience. Says Conforti, "Making sure [customers] have the best dessert of their life is important, but it's also about the atmosphere, service, background music and cleanliness of the restaurant."
They have since grown their restaurant concept into a $6 million-plus business and are about to open their fourth location this month. Planning to open three more locations in Massachusetts next year and to reach Washington, DC, by 2009, they are working toward their ultimate goal of going nationwide. With an idea as divine as upscale desserts, $1 million in sales can be achieved with only one location, and the proof is in the pudding , one of Conforti and Moore's locations makes twice that much annually.
Starbucks revolutionized the coffee industry by transforming the beverage into the most necessary of luxuries, but numerous independents and ambitious franchisors have profited from coffee's popularity and are riding on their own caffeine high. According to Rob Stephen, immediate past president of the Specialty Coffee Association of America, a coffee trade association, opportunities in the industry abound. In fact, according to the SCAA and Mintel Group, the industry grew to an estimated $12.27 billion last year. So if you thought Starbucks had the market locked down, think again , many are drinking in their own share of the profits.
Eric Schmidt, 43, is the owner of a Dunn Bros Coffee franchise in Lawrence, Kansas, and although he just opened his coffee drive-thru in March, he's already working on opening two more coffee kiosks and estimating total year-end sales to be in the low seven figures. While he believes he could have reached this point with his own coffee concept, he has no doubt that buying a franchise helped him avoid many of the initial difficulties. The wealth of information available to him and the one-on-one assistance with finding the right location enabled Schmidt to get off to an impressive start.
But in moving forward, the defining strategy for success has simply been Schmidt's own commitment and constant presence in the business and his community. From personally making sure that customers' needs are met to being involved in local civic organizations and the nearby university, Schmidt makes sure all his bases are covered. "That's probably the single biggest thing about it," he says. "You have got to be completely involved in it from the day you open [your] doors."
For those looking to establish their niche, Stephen identifies two trends taking place in the industry , product differentiation and point of view. In a market once defined by regular or decaf, coffee consumers now pay attention to the very farm where the beans are grown. Says Stephen, "You're seeing coffee labels growing to three lines."
Customers are also looking to retailers for opinions and overall expertise, so it is important for coffee entrepreneurs to be knowledgeable about the products they're selling. Stephen believes that quality products, knowledge, point of view and a good location are the defining factors of success for both independent coffee entrepreneurs and franchisees.
So what's ahead for the industry? Says Stephen, "We're seeing a renaissance in iced and frozen beverages as a way to get to a part of the market that's interested in soda or energy drinks."
SENIORS
While the industry to preserve vitality and youth among baby boomers is thriving, so are the businesses one generation ahead in the senior-care industry. Millions of Americans currently make up the "Sandwich Generation," a generation of people raising their children while taking care of their aging parents. This is already creating a demand for assistance, both medical and nonmedical, but that need will skyrocket as the baby boomers approach an age in which they, too, will need outside help. "People 65 and over will increase from 12 percent of the U.S population to 20 percent by 2030," says J. Kevin Eckert, dean of the University of Maryland, Baltimore County's Erickson School of Aging Services. "It's almost a no-brainer that the whole need for senior housing, for adaptive housing, for all kinds of services, businesses and products will be burgeoning."
Topping things off, a large number of baby boomers won't have their own families to turn to for assistance. According to a 2004 U.S. Census report, 19 percent of women aged 40 to 44 were childless , twice the percentage reported in 1976.
Having watched his father struggle to care for his own brother, his aging grandmother and himself, Adam Brown was inspired to purchase a Home Helpers franchise. Getting the word out about his nonmedical and personal-care business was the most crucial step to securing his success. He did so by advertising, visiting local businesses and hospitals, and joining networking groups to educate the community about his services. Says Brown, 28, "This is a referral-based business, particularly because you're working with people's family members, so there has to be trust."
With 170 employees, Brown has positioned his franchise as a strong competitor in the Philadelphia area. After two years, he purchased a second territory and has since secured the "right of first refusal" for two other territories, which gives him first dibs before any other buyers. After working from home for two years, Brown has moved his business into an office, has just opened a satellite office and plans to open additional satellites in the future. Although having a physical presence isn't required, it has paid off. His franchise looks more established, and the neighborhood where the office is located is bringing in even more business. By reaching out to the community and expanding his territory, he has successfully grown his franchise to 350 clients and is projecting year-end sales of approximately $3.5 million.
Eckert sees a bright future on the horizon with the development of new homegrown communities where baby boomers can "age in place," as well as new services and technological products to help individuals remain at home. Says Eckert, "We're in for an exciting array of possibilities and real opportunities for people who are creative, innovative and have entrepreneurial sense."
TECHNOLOGY
Have you got a mind for technology and a passion for business?
This could be the industry for you. If franchising is your tech dream, consider starting a tech support or consulting company--industrywide, franchise units in our most recent Franchise 500 grew 13 percent in 2006 over the year before. If you're a true maverick, though, you can jump into the exciting world of Web 2.0--where advances like social networks, blogs, podcasts, wikis, RSS feeds and the like have turned the dotcom business model on its head. Today, web innovators are coming up with better ways for end-users to share information and are creating applications and websites where shared video or user-generated content is king. Just a glimpse of the marketplace: The web gained a record 30.9 million sites in 2006 , a 41.5 percent jump from a year earlier, according to data from research firm Netcraft. And according to data from Hitwise, in early 2007, visits to the top 20 social networking sites like MySpace and Facebook grew 11.5 percent in one month alone.
Although a lot of hugely successful companies are already out there, a startup can get in with the right niche. "The web is the great equalizer," says Jeff Stibel, CEO of Web.com, a provider of websites and services that has created over 4 million websites for small businesses. "It's the only place where a small business can compete nationally." He suggests starting a company with a great Web 1.0 foundation , a solid web address with an appealing design that works well for customers and first-rate search engine optimization to point users to your site.
Most important, though--fill a need. "If you say, ‘I'm going to do what Facebook or YouTube does,' it won't work," says Stibel. "But if you solve a market need, you conquer that niche and expand from there."
Conquering a niche is precisely what Greg Demetriades did when he founded WhiteBlox, an IPTV software suite, in 2005. The company sells IP video solutions so businesses can broadcast interactive IPTV content under the banner of their own brands. It's a subsidiary of his parent company, Continental Vista Broadcasting Group Inc., an IPTV provider that delivers interactive broadband TV content globally, started in 2003. Demetriades, 46, sells his WhiteBlox technologies to media, entertainment and sports-related companies--even contracting with the Indy Racing League to broadcast all its races online through 2009, including the famous Indy 500. "We allow [customers] to mix and match and build their own broadcast networks," he says. WhiteBlox also enables interactivity with tools for polls, contests, chats, forums, blogging and even sending live messages to the announcers at an event. Located in The Woodlands, Texas, the company projects 2007 sales of $16 million. To make your mark in the tech space, be on the lookout for trends. Says Stibel, "It's a matter of keeping your eyes wide open."
If you're a pet lover, consider getting into the fast-growing pet products and services industry. Pets are a part of the family in 63 percent of U.S. households. In fact, in 2006, Americans spent $38.5 billion on pet products and services , a figure expected to rise to over $40 billion in 2007, according to the American Pet Product Manufacturers Association. Traditional pet lovers might consider a pet franchise business like pet grooming, pet products, pet walking or training. In fact, in our 2007 Franchise 500, the number of pet-related franchise units grew 23 percent from 2005 to 2006.
There are many niches in which to start your profitable pet business, according to APPMA president Bob Vetere. Natural and organic pet food is a particularly hot area, he notes. Much like in the human world, where green products are all the rage, green pet products are quickly gaining in popularity. "Any trend you see in human foods, about six months later, it pops up on the pet food side of the ledger," says Vetere. "This is what's happening with organics and naturals. It's finally dawned on marketers that the same person who's buying food for the family is buying food for the pet."
Convenience products are heating up as well--from automatic feeding devices and timed watering devices to automatic pet doors--anything that allows owners to have a busy lifestyle while still taking care of their pets is hot, notes Vetere. On the same convenience trend, consider pet services--pooper scoopers, for instance--to do the dirty work that many pet owners would rather pay someone else to do.
And just as moms buy top-notch products for their children, many pet owners are all about luxury for their precious pets. If it's high-end or a treat, pet parents will want it. That's what Janet McCulley, 39, and Georgia Goldberg, 44, found when they started Muttropolis, a chain of upscale pet boutiques based in Solana Beach, California. Janet McCulley, a proud pet parent herself to dogs Lulu, Sepia and Zoltan, knew she wasn't alone in wanting to pamper her dogs. She researched the market and opened the doors to her first store in 2002; four more locations and an online store have followed.
McCulley describes the business as "retail meets the dog park." Aside from offering upscale products such as Swarovski crystal dog collars and eco-friendly chew toys, McCulley designed special fixtures in her stores to appeal to the discerning pet lover. Photographic tiles on the ground look like grass, a fountain in the center is full of dog toys, and tree graphics on the walls complete the look.
Winning the "Hottest Retail Concept of 2006" award from the International Council of Shopping Centers was a coup, but it's at the monthly Mutt Meet-Up events, where owners bring in their pets for fun and mingling, that McCulley sees the fruits of her success. "We have created a brand that resonates emotionally with the pet parent," she says. With 2007 sales projected at more than $4.5 million and plans to open 150 more locations within the next five years, Muttropolis is sure to become a household name among the two- and four-legged alike.
MARKETING AND ADVERTISING
Companies always need new clients, so if you've got a knack for getting customers to buy, think about starting a marketing and advertising business. Aspiring marketers can go the franchise route with diverse opportunities ranging from direct mail and coupons to promotional products and outdoor media.
But if you want to be a trendsetter, check out the online ad marketplace. It's a booming market--online ad spending alone hit $16.9 billion in 2006, a 35 percent leap from 2005, according to a joint report from the Interactive Advertising Bureau and Pricewaterhouse Coopers. Trends shaping the industry include the use of audio and video technology in online marketing campaigns as well as integrating online and offline marketing for clients, notes Chip Cummings, a marketing consultant and author of Stop Selling and Start Listening! Marketing Strategies That Create Top Producers. "It's not just being on top of the technology, because the technology itself isn't going to sell anybody products or services," Cummings says. "It's the creative use of that technology."
Finding a creative use of technology is exactly what has catapulted Blue Lithium Inc., an online advertising network in San Jose, California. Founded by Gurbaksh Chahal in 2005, the company provides specifically targeted marketing for clients, using data from 145 million consumers worldwide. "That [online] advertising model is focused on display media--banner ads, [etc.]. The model I wanted to recreate was using different ways to add data and using data to create sophistication around individual users," says Chahal. "So when you're serving an ad, it's actually relevant to that user--because you know they're male or female or you know something about their lifestyle through different data sources you can aggregate over time."
Chahal's expertise in providing targeted online ads has grown his startup at least 100 percent per year, pushing 2007 sales projections to nearly $100 million. Working with clients like Anheuser-Busch, Best Buy and Verizon, Chahal, 25, is looking to grow his company into international markets such as Germany, Italy and Spain in the near future. Staying ahead of this rapidly changing market is the order of the day. "You've got to make sure you continue to evolve with it and [that] you're evolving faster than the industry is evolving," says Chahal. "Every couple of years there's a bigger company out there. Before it was Yahoo!; now it's Google. There's a trend going on, and whoever is creating the trend ends up being the winner."
Already dreaming about living the good life as a millionaire?
But keep in mind that regardless of the route you choose , whether it's going solo or buying a franchise , arriving at your first million in sales will require persistence, strategy and, in most cases, multiple locations.
And in case you doubt it's doable, here are some examples of savvy entrepreneurs who went from zero to a million.
FOUNTAIN OF YOUTH
With the first baby boomers starting to hit 60, America is fighting tooth and nail to stave off the signs of time. In 2004, Americans spent about $44.6 billion on anti-aging products and services, according to Business Communications Co. Inc., an information resource company. But that's nothing compared to the $72 billion market it's expected to mature into by 2009.
Why the sense of urgency? Vanity is part of it, and the fact that we're living longer adds to the need for enduring youth. But there's also the fact that many baby boomers won't be financially able to leave the work force as early as their parents did and will have no choice but to stay vital and active. According to a study by the National Association of Realtors, the median age at which baby boomers expect to stop working is 70, but 27 percent say they never intend to stop working. This will open up all kinds of opportunities to entrepreneurs , such as those who can create wellness centers and bring together a variety of health and nutrition specialists under one roof.
Jeni Garrett is one of those entrepreneurs providing a mind and body oasis to baby boomers desperate for rejuvenation. In 2001, after enjoying the benefits of spa visits herself, Garrett, now 28, founded The Woodhouse Day Spa, a luxury spa in Victoria, Texas. A year and a half later, she set her sights on turning the brand into a household name. She first planned to open more company-owned locations, but Garrett soon turned to franchising to spread the concept. "With our business model, you really need an owner/operator present because of the staffing issues and to do the marketing initiative," she says. "Franchising lent itself very well to that."
To move forward, Garrett knew the foundation had to be solid. She chose a top-notch franchise lawyer and streamlined operations, even ordering the fixtures for the franchisees. With her franchise system in place, she has positioned herself perfectly to accommodate the growing clientele of baby boomers. To further meet the needs of this segment, she added a menu of services that boasts 15 holistic, all-natural treatments that focus more on wellness than pampering. She is enjoying success with a multimillion-dollar business as more boomer women and men , make the spa experience part of their lifestyles. Says Garrett, "We're seeing [spas] move from a level of luxury to a level of necessity for wellness."
THE SWEET LIFE
The nation's sweet tooth is becoming more insatiable, driving everything from the franchising industry, where cookies and ice cream concepts are growing categories, to the fine-dining industry, where diners are staying more often for the grand finale.
Dessert has become such a significant portion of the food industry that it's warranted its own annual trade show since 2003. Meanwhile, according to Hudson Riehle, senior vice president of research at the National Restaurant Association, almost 1 in 3 fine-dining operators reported that consumers bought more desserts last year than in the two previous years. In an increasing number of cases, high-end desserts are stealing the spotlight, as entire independent restaurant concepts are being founded on the premise of tasty, upscale indulgence.
Paul Conforti and Kim Moore, 36 and 40, respectively, researched the restaurant industry for a year while attending Harvard Business School before they opened the doors to their first upscale, dessert-focused restaurant, Finale Desserterie & Bakery, in Boston in 1998. Offering an exquisite menu featuring Valrhona chocolate, honey caramel gelato, nougat mousse and cherry almond Florentines, they are often credited with the distinction of starting the first high-end dessert concept. Their focus is as much on high-quality ingredients as it is on the overall experience. Says Conforti, "Making sure [customers] have the best dessert of their life is important, but it's also about the atmosphere, service, background music and cleanliness of the restaurant."
They have since grown their restaurant concept into a $6 million-plus business and are about to open their fourth location this month. Planning to open three more locations in Massachusetts next year and to reach Washington, DC, by 2009, they are working toward their ultimate goal of going nationwide. With an idea as divine as upscale desserts, $1 million in sales can be achieved with only one location, and the proof is in the pudding , one of Conforti and Moore's locations makes twice that much annually.
Starbucks revolutionized the coffee industry by transforming the beverage into the most necessary of luxuries, but numerous independents and ambitious franchisors have profited from coffee's popularity and are riding on their own caffeine high. According to Rob Stephen, immediate past president of the Specialty Coffee Association of America, a coffee trade association, opportunities in the industry abound. In fact, according to the SCAA and Mintel Group, the industry grew to an estimated $12.27 billion last year. So if you thought Starbucks had the market locked down, think again , many are drinking in their own share of the profits.
Eric Schmidt, 43, is the owner of a Dunn Bros Coffee franchise in Lawrence, Kansas, and although he just opened his coffee drive-thru in March, he's already working on opening two more coffee kiosks and estimating total year-end sales to be in the low seven figures. While he believes he could have reached this point with his own coffee concept, he has no doubt that buying a franchise helped him avoid many of the initial difficulties. The wealth of information available to him and the one-on-one assistance with finding the right location enabled Schmidt to get off to an impressive start.
But in moving forward, the defining strategy for success has simply been Schmidt's own commitment and constant presence in the business and his community. From personally making sure that customers' needs are met to being involved in local civic organizations and the nearby university, Schmidt makes sure all his bases are covered. "That's probably the single biggest thing about it," he says. "You have got to be completely involved in it from the day you open [your] doors."
For those looking to establish their niche, Stephen identifies two trends taking place in the industry , product differentiation and point of view. In a market once defined by regular or decaf, coffee consumers now pay attention to the very farm where the beans are grown. Says Stephen, "You're seeing coffee labels growing to three lines."
Customers are also looking to retailers for opinions and overall expertise, so it is important for coffee entrepreneurs to be knowledgeable about the products they're selling. Stephen believes that quality products, knowledge, point of view and a good location are the defining factors of success for both independent coffee entrepreneurs and franchisees.
So what's ahead for the industry? Says Stephen, "We're seeing a renaissance in iced and frozen beverages as a way to get to a part of the market that's interested in soda or energy drinks."
SENIORS
While the industry to preserve vitality and youth among baby boomers is thriving, so are the businesses one generation ahead in the senior-care industry. Millions of Americans currently make up the "Sandwich Generation," a generation of people raising their children while taking care of their aging parents. This is already creating a demand for assistance, both medical and nonmedical, but that need will skyrocket as the baby boomers approach an age in which they, too, will need outside help. "People 65 and over will increase from 12 percent of the U.S population to 20 percent by 2030," says J. Kevin Eckert, dean of the University of Maryland, Baltimore County's Erickson School of Aging Services. "It's almost a no-brainer that the whole need for senior housing, for adaptive housing, for all kinds of services, businesses and products will be burgeoning."
Topping things off, a large number of baby boomers won't have their own families to turn to for assistance. According to a 2004 U.S. Census report, 19 percent of women aged 40 to 44 were childless , twice the percentage reported in 1976.
Having watched his father struggle to care for his own brother, his aging grandmother and himself, Adam Brown was inspired to purchase a Home Helpers franchise. Getting the word out about his nonmedical and personal-care business was the most crucial step to securing his success. He did so by advertising, visiting local businesses and hospitals, and joining networking groups to educate the community about his services. Says Brown, 28, "This is a referral-based business, particularly because you're working with people's family members, so there has to be trust."
With 170 employees, Brown has positioned his franchise as a strong competitor in the Philadelphia area. After two years, he purchased a second territory and has since secured the "right of first refusal" for two other territories, which gives him first dibs before any other buyers. After working from home for two years, Brown has moved his business into an office, has just opened a satellite office and plans to open additional satellites in the future. Although having a physical presence isn't required, it has paid off. His franchise looks more established, and the neighborhood where the office is located is bringing in even more business. By reaching out to the community and expanding his territory, he has successfully grown his franchise to 350 clients and is projecting year-end sales of approximately $3.5 million.
Eckert sees a bright future on the horizon with the development of new homegrown communities where baby boomers can "age in place," as well as new services and technological products to help individuals remain at home. Says Eckert, "We're in for an exciting array of possibilities and real opportunities for people who are creative, innovative and have entrepreneurial sense."
TECHNOLOGY
Have you got a mind for technology and a passion for business?
This could be the industry for you. If franchising is your tech dream, consider starting a tech support or consulting company--industrywide, franchise units in our most recent Franchise 500 grew 13 percent in 2006 over the year before. If you're a true maverick, though, you can jump into the exciting world of Web 2.0--where advances like social networks, blogs, podcasts, wikis, RSS feeds and the like have turned the dotcom business model on its head. Today, web innovators are coming up with better ways for end-users to share information and are creating applications and websites where shared video or user-generated content is king. Just a glimpse of the marketplace: The web gained a record 30.9 million sites in 2006 , a 41.5 percent jump from a year earlier, according to data from research firm Netcraft. And according to data from Hitwise, in early 2007, visits to the top 20 social networking sites like MySpace and Facebook grew 11.5 percent in one month alone.
Although a lot of hugely successful companies are already out there, a startup can get in with the right niche. "The web is the great equalizer," says Jeff Stibel, CEO of Web.com, a provider of websites and services that has created over 4 million websites for small businesses. "It's the only place where a small business can compete nationally." He suggests starting a company with a great Web 1.0 foundation , a solid web address with an appealing design that works well for customers and first-rate search engine optimization to point users to your site.
Most important, though--fill a need. "If you say, ‘I'm going to do what Facebook or YouTube does,' it won't work," says Stibel. "But if you solve a market need, you conquer that niche and expand from there."
Conquering a niche is precisely what Greg Demetriades did when he founded WhiteBlox, an IPTV software suite, in 2005. The company sells IP video solutions so businesses can broadcast interactive IPTV content under the banner of their own brands. It's a subsidiary of his parent company, Continental Vista Broadcasting Group Inc., an IPTV provider that delivers interactive broadband TV content globally, started in 2003. Demetriades, 46, sells his WhiteBlox technologies to media, entertainment and sports-related companies--even contracting with the Indy Racing League to broadcast all its races online through 2009, including the famous Indy 500. "We allow [customers] to mix and match and build their own broadcast networks," he says. WhiteBlox also enables interactivity with tools for polls, contests, chats, forums, blogging and even sending live messages to the announcers at an event. Located in The Woodlands, Texas, the company projects 2007 sales of $16 million. To make your mark in the tech space, be on the lookout for trends. Says Stibel, "It's a matter of keeping your eyes wide open."
If you're a pet lover, consider getting into the fast-growing pet products and services industry. Pets are a part of the family in 63 percent of U.S. households. In fact, in 2006, Americans spent $38.5 billion on pet products and services , a figure expected to rise to over $40 billion in 2007, according to the American Pet Product Manufacturers Association. Traditional pet lovers might consider a pet franchise business like pet grooming, pet products, pet walking or training. In fact, in our 2007 Franchise 500, the number of pet-related franchise units grew 23 percent from 2005 to 2006.
There are many niches in which to start your profitable pet business, according to APPMA president Bob Vetere. Natural and organic pet food is a particularly hot area, he notes. Much like in the human world, where green products are all the rage, green pet products are quickly gaining in popularity. "Any trend you see in human foods, about six months later, it pops up on the pet food side of the ledger," says Vetere. "This is what's happening with organics and naturals. It's finally dawned on marketers that the same person who's buying food for the family is buying food for the pet."
Convenience products are heating up as well--from automatic feeding devices and timed watering devices to automatic pet doors--anything that allows owners to have a busy lifestyle while still taking care of their pets is hot, notes Vetere. On the same convenience trend, consider pet services--pooper scoopers, for instance--to do the dirty work that many pet owners would rather pay someone else to do.
And just as moms buy top-notch products for their children, many pet owners are all about luxury for their precious pets. If it's high-end or a treat, pet parents will want it. That's what Janet McCulley, 39, and Georgia Goldberg, 44, found when they started Muttropolis, a chain of upscale pet boutiques based in Solana Beach, California. Janet McCulley, a proud pet parent herself to dogs Lulu, Sepia and Zoltan, knew she wasn't alone in wanting to pamper her dogs. She researched the market and opened the doors to her first store in 2002; four more locations and an online store have followed.
McCulley describes the business as "retail meets the dog park." Aside from offering upscale products such as Swarovski crystal dog collars and eco-friendly chew toys, McCulley designed special fixtures in her stores to appeal to the discerning pet lover. Photographic tiles on the ground look like grass, a fountain in the center is full of dog toys, and tree graphics on the walls complete the look.
Winning the "Hottest Retail Concept of 2006" award from the International Council of Shopping Centers was a coup, but it's at the monthly Mutt Meet-Up events, where owners bring in their pets for fun and mingling, that McCulley sees the fruits of her success. "We have created a brand that resonates emotionally with the pet parent," she says. With 2007 sales projected at more than $4.5 million and plans to open 150 more locations within the next five years, Muttropolis is sure to become a household name among the two- and four-legged alike.
MARKETING AND ADVERTISING
Companies always need new clients, so if you've got a knack for getting customers to buy, think about starting a marketing and advertising business. Aspiring marketers can go the franchise route with diverse opportunities ranging from direct mail and coupons to promotional products and outdoor media.
But if you want to be a trendsetter, check out the online ad marketplace. It's a booming market--online ad spending alone hit $16.9 billion in 2006, a 35 percent leap from 2005, according to a joint report from the Interactive Advertising Bureau and Pricewaterhouse Coopers. Trends shaping the industry include the use of audio and video technology in online marketing campaigns as well as integrating online and offline marketing for clients, notes Chip Cummings, a marketing consultant and author of Stop Selling and Start Listening! Marketing Strategies That Create Top Producers. "It's not just being on top of the technology, because the technology itself isn't going to sell anybody products or services," Cummings says. "It's the creative use of that technology."
Finding a creative use of technology is exactly what has catapulted Blue Lithium Inc., an online advertising network in San Jose, California. Founded by Gurbaksh Chahal in 2005, the company provides specifically targeted marketing for clients, using data from 145 million consumers worldwide. "That [online] advertising model is focused on display media--banner ads, [etc.]. The model I wanted to recreate was using different ways to add data and using data to create sophistication around individual users," says Chahal. "So when you're serving an ad, it's actually relevant to that user--because you know they're male or female or you know something about their lifestyle through different data sources you can aggregate over time."
Chahal's expertise in providing targeted online ads has grown his startup at least 100 percent per year, pushing 2007 sales projections to nearly $100 million. Working with clients like Anheuser-Busch, Best Buy and Verizon, Chahal, 25, is looking to grow his company into international markets such as Germany, Italy and Spain in the near future. Staying ahead of this rapidly changing market is the order of the day. "You've got to make sure you continue to evolve with it and [that] you're evolving faster than the industry is evolving," says Chahal. "Every couple of years there's a bigger company out there. Before it was Yahoo!; now it's Google. There's a trend going on, and whoever is creating the trend ends up being the winner."
Wednesday, September 19, 2007
ACHIEVING SALES TARGET
Are you hitting your numbers?
How many leads did you run this week?
How many follow-up calls did you make today?
How much high-quality volume did you book this month?
These questions are relentlessly driven into our heads, and for good reason. For many sales professionals, there is often pressure to reach quota or attain a certain level of performance. While having a monthly sales goal keeps your eye on the prize and your focus on the end result, it may actually do more harm than good.
Often salespeople say, "Results aren't showing up fast enough." At the end of each selling month, frustration and stress overwhelm as salespeople scramble to do their best to close sales and meet their numbers.
If selling is, in part, a transference of feeling, imagine the feelings that you're transferring to your prospects. The stress and anxiety of having to close more sales inadvertently puts undue pressure on your prospects and fosters an unhealthy relationship from the start.
The irony is, this constant push to reach sales numbers keeps you hooked on the goal and diverts your efforts away from refining the selling process needed to generate more business. The quandary then becomes "I'm too busy to work on my process. I have numbers to meet!"
Consider this paradox: The result is the process. In other words, what if you shifted your attention away from your quota or the end result and onto the process?
After all, what's the point of eating a bowl of chocolate ice cream: to get to the end or to savor every bite? How about the goal of a self-care or an exercise regimen? Unless you're in it to compete professionally, it's to maintain a level of health, vitality, and personal satisfaction.
The same holds true for measuring productivity, maintaining your peace of mind, and experiencing a sense of achievement at the end of each day.
After all, you don't do the result; you execute the process. The result is a natural byproduct of your efforts. That's the paradox. By honoring the process, you can enjoy the benefit of knowing that you will attain your goals, since the process will get you what you want. Imagine building a house without a blueprint!
To generate better results, you must either change what you do or change how you think. To continually exceed your sales goals and better manage your mindset, alter your thinking to become process driven rather than result driven.
Ask yourself if you have processes in place -- for sales, prospecting, follow up, time management, customer service -- that you can trust. When you look at your daily schedule, does it outline the specific and measurable tasks and activities in which you need to engage to move you towards your goal?
Chances are, salespeople who are solely focused on the end result don't have a process in which they have faith. As such, they concentrate more on trying to control the outcome; pushing for what they want rather than managing their process. After all, you can't trust and manage the process if you don't have a process in place!
Trying to achieve more without a process to guide you is like driving from New York to California without a road map while wearing a blindfold. Not only is it stressful, but you're bound to wind up somewhere other than your intended destination.
Schedule time to develop your process for attaining each goal in order to have a clear path. As a starting point for developing your process, review your successful sales. For example, if you're looking to generate a certain number of sales each month, what daily activities will help you reach that goal? What skills or tools need further development? For example, work to refine your introductory cover letter or e-mail, create a solid template for your prospecting and voice mail approach, and increase the frequency of follow-up calls. Thinking about and carrying out these tasks directs your focus to the process.
Once you have outlined a path and a success formula to follow -- X number of calls produces X number of prospects which produces X number of sales -- allow the doing, that is the process, to be the reward and the pleasure, not just the end result. This way, you can be responsible for your future goals without having to worry about them. If you continue your quest with your eyes focused on the finish line, you'll miss out on the journey. Therefore, be careful not to hook yourself onto the future and enjoy the process of reaching your goals today.
Knowing your limit provides you with the freedom to trust the process that you've put in place. After all, there's always more to do. There's always more that can be done at the office, at your home, or in your life; another call that can be made or another e-mail that can be read.
Exceeding your monthly sales quota will be the result of the cumulative efforts you make and the day-to-day activities in which you engage. When you're mindful of the process, you have the opportunity to recognize and to celebrate your accomplishments -- even the little ones -- rather than pushing for or waiting until the "end." Because when do we ever get there?
How many leads did you run this week?
How many follow-up calls did you make today?
How much high-quality volume did you book this month?
These questions are relentlessly driven into our heads, and for good reason. For many sales professionals, there is often pressure to reach quota or attain a certain level of performance. While having a monthly sales goal keeps your eye on the prize and your focus on the end result, it may actually do more harm than good.
Often salespeople say, "Results aren't showing up fast enough." At the end of each selling month, frustration and stress overwhelm as salespeople scramble to do their best to close sales and meet their numbers.
If selling is, in part, a transference of feeling, imagine the feelings that you're transferring to your prospects. The stress and anxiety of having to close more sales inadvertently puts undue pressure on your prospects and fosters an unhealthy relationship from the start.
The irony is, this constant push to reach sales numbers keeps you hooked on the goal and diverts your efforts away from refining the selling process needed to generate more business. The quandary then becomes "I'm too busy to work on my process. I have numbers to meet!"
Consider this paradox: The result is the process. In other words, what if you shifted your attention away from your quota or the end result and onto the process?
After all, what's the point of eating a bowl of chocolate ice cream: to get to the end or to savor every bite? How about the goal of a self-care or an exercise regimen? Unless you're in it to compete professionally, it's to maintain a level of health, vitality, and personal satisfaction.
The same holds true for measuring productivity, maintaining your peace of mind, and experiencing a sense of achievement at the end of each day.
After all, you don't do the result; you execute the process. The result is a natural byproduct of your efforts. That's the paradox. By honoring the process, you can enjoy the benefit of knowing that you will attain your goals, since the process will get you what you want. Imagine building a house without a blueprint!
To generate better results, you must either change what you do or change how you think. To continually exceed your sales goals and better manage your mindset, alter your thinking to become process driven rather than result driven.
Ask yourself if you have processes in place -- for sales, prospecting, follow up, time management, customer service -- that you can trust. When you look at your daily schedule, does it outline the specific and measurable tasks and activities in which you need to engage to move you towards your goal?
Chances are, salespeople who are solely focused on the end result don't have a process in which they have faith. As such, they concentrate more on trying to control the outcome; pushing for what they want rather than managing their process. After all, you can't trust and manage the process if you don't have a process in place!
Trying to achieve more without a process to guide you is like driving from New York to California without a road map while wearing a blindfold. Not only is it stressful, but you're bound to wind up somewhere other than your intended destination.
Schedule time to develop your process for attaining each goal in order to have a clear path. As a starting point for developing your process, review your successful sales. For example, if you're looking to generate a certain number of sales each month, what daily activities will help you reach that goal? What skills or tools need further development? For example, work to refine your introductory cover letter or e-mail, create a solid template for your prospecting and voice mail approach, and increase the frequency of follow-up calls. Thinking about and carrying out these tasks directs your focus to the process.
Once you have outlined a path and a success formula to follow -- X number of calls produces X number of prospects which produces X number of sales -- allow the doing, that is the process, to be the reward and the pleasure, not just the end result. This way, you can be responsible for your future goals without having to worry about them. If you continue your quest with your eyes focused on the finish line, you'll miss out on the journey. Therefore, be careful not to hook yourself onto the future and enjoy the process of reaching your goals today.
Knowing your limit provides you with the freedom to trust the process that you've put in place. After all, there's always more to do. There's always more that can be done at the office, at your home, or in your life; another call that can be made or another e-mail that can be read.
Exceeding your monthly sales quota will be the result of the cumulative efforts you make and the day-to-day activities in which you engage. When you're mindful of the process, you have the opportunity to recognize and to celebrate your accomplishments -- even the little ones -- rather than pushing for or waiting until the "end." Because when do we ever get there?
Sunday, September 16, 2007
GOAL SETTING
At every end of the year, Christina heads down to her local craft store and purchases what she calls her "vision board." It's really just a big yellow poster board, but she immediately starts filling it with goals she wants to achieve in the coming year.
She write down ideas and cut out photos from magazines that help her visualize what she want. In the past, she has pasted $100 bills on the board to remind her of her financial goals. She has included a picture of a man and woman holding hands on a beach to emphasize what she's working toward ….. a dream trip to Costa Rica with her husband. She has even jotted down words like "serenity" and "peaceful" to prevent her from getting consumed by the ceaseless demands of her sales job.
She look at the phrases and images on her vision board every day. It keeps her focused and reminds her when she get up every morning. It is essential for salespeople to begin each year by creating "a personal navigation system" similar to Christina's vision board. It's the system you use to navigate through life, which encompasses your vision, goals, and routine, providing you with a clear sense of purpose and direction.Having the end result clarified in your mind and on paper before you become consumed by your daily responsibilities will make the process of reaching bigger goals easier and more enjoyable.
As a guide, here are vital strategies for setting and achieving your sales goals.
Get Rid of Old Goals.
It's very tempting to recycle the same old goals, especially ones you haven't reached. "I seriously suggest just letting go of recycled goals you've had for several years, because they become like a ball and chain, holding you back. These goals might be unrealistic to begin with, like saying you will achieve $1 million in sales when you have never surpassed $100,000 in your life. Or they might be goals you have inherited from a boss or colleague that are not right for you personally, causing you to consciously or subconsciously resist them.
Set a Manageable Number of Goals.
A resolution, is defined as the process of reducing to simpler form. That brings us to the paradox of resolution. Instead of simplifying our lives, we wind up dumping more tasks, goals, or projects on our to-do list thinking that our lives will be more fulfilling and successful in the new year. What we are left with, though, is the sense of being overwhelmed. Just set no more than five goals each year just to keep things simple and focus your energies.
Clearly Define Your Goals.
It's great that you want to make more money and be more successful this year, but the problem is there is nothing specific behind those goals. You may start establishing a set of daily, weekly, and monthly benchmarks that help you measure and manage your ultimate goal. For instance, if you have a sales target of $1 million, don't focus on the actual dollars, but rather on the activities that will help you reach that mark. Identify and measure several key success indicators, such as the number of follow-up appointments you've made this week or the number of networking events you've attended, as a way of knowing where you are right now and where you need to go.
Establish an Effective Routine.
Let the daily actions you take toward achieving your goals be the reward, not just the end result. This will allow you to actually enjoy the journey and not just obsess about the future. Design a weekly routine that complements your goals so you can focus on the activities that support your objectives and enhance your lifestyle. A well-planned routine will keep you focused, eliminate distractions, reduce stress, and enable you to manage the daily tasks that will bring you to your goals.
Make Your Goals Public.
When you share your goals with others, you become more vested in their outcome and ultimate success. We break commitments to ourselves all the time, but once we inform friends, family, and colleagues of our goals, the stakes are instantly raised. You're less likely to back away from your goals without giving it a lot of thought and reasoning first. What's more, by trusting others with your goals, you acquire a support group that can spur you on to success.
Don't Set Goals Longer than a Year.
It's all too easy to lose momentum if your goals exceed a year. As humans, we tend to lose interest in things that are too far in the future. Life moves exceedingly fast, and we need to be equally responsive. When we set our goals, we have all the intention in the world of following through with them, but life gets in the way and things change very quickly. You can overcome this by setting concrete, focused goals each year and building a set of daily actions that allows you to achieve them.
Alter Your Goals When Necessary.
Don't hesitate to reassess your goals on a quarterly basis. That should give you enough time to gauge whether the desired results are showing up, and help you avoid frustration and constantly second-guessing yourself. Think of your goals as if they were a sail of a boat. You can alter the course while still heading in the same general direction. For example, if your goal is to set up ten face-to-face meetings each month, but you are only getting eight meetings, that might be okay if it turns out you are closing a higher number of deals than anticipated.
She write down ideas and cut out photos from magazines that help her visualize what she want. In the past, she has pasted $100 bills on the board to remind her of her financial goals. She has included a picture of a man and woman holding hands on a beach to emphasize what she's working toward ….. a dream trip to Costa Rica with her husband. She has even jotted down words like "serenity" and "peaceful" to prevent her from getting consumed by the ceaseless demands of her sales job.
She look at the phrases and images on her vision board every day. It keeps her focused and reminds her when she get up every morning. It is essential for salespeople to begin each year by creating "a personal navigation system" similar to Christina's vision board. It's the system you use to navigate through life, which encompasses your vision, goals, and routine, providing you with a clear sense of purpose and direction.Having the end result clarified in your mind and on paper before you become consumed by your daily responsibilities will make the process of reaching bigger goals easier and more enjoyable.
As a guide, here are vital strategies for setting and achieving your sales goals.
Get Rid of Old Goals.
It's very tempting to recycle the same old goals, especially ones you haven't reached. "I seriously suggest just letting go of recycled goals you've had for several years, because they become like a ball and chain, holding you back. These goals might be unrealistic to begin with, like saying you will achieve $1 million in sales when you have never surpassed $100,000 in your life. Or they might be goals you have inherited from a boss or colleague that are not right for you personally, causing you to consciously or subconsciously resist them.
Set a Manageable Number of Goals.
A resolution, is defined as the process of reducing to simpler form. That brings us to the paradox of resolution. Instead of simplifying our lives, we wind up dumping more tasks, goals, or projects on our to-do list thinking that our lives will be more fulfilling and successful in the new year. What we are left with, though, is the sense of being overwhelmed. Just set no more than five goals each year just to keep things simple and focus your energies.
Clearly Define Your Goals.
It's great that you want to make more money and be more successful this year, but the problem is there is nothing specific behind those goals. You may start establishing a set of daily, weekly, and monthly benchmarks that help you measure and manage your ultimate goal. For instance, if you have a sales target of $1 million, don't focus on the actual dollars, but rather on the activities that will help you reach that mark. Identify and measure several key success indicators, such as the number of follow-up appointments you've made this week or the number of networking events you've attended, as a way of knowing where you are right now and where you need to go.
Establish an Effective Routine.
Let the daily actions you take toward achieving your goals be the reward, not just the end result. This will allow you to actually enjoy the journey and not just obsess about the future. Design a weekly routine that complements your goals so you can focus on the activities that support your objectives and enhance your lifestyle. A well-planned routine will keep you focused, eliminate distractions, reduce stress, and enable you to manage the daily tasks that will bring you to your goals.
Make Your Goals Public.
When you share your goals with others, you become more vested in their outcome and ultimate success. We break commitments to ourselves all the time, but once we inform friends, family, and colleagues of our goals, the stakes are instantly raised. You're less likely to back away from your goals without giving it a lot of thought and reasoning first. What's more, by trusting others with your goals, you acquire a support group that can spur you on to success.
Don't Set Goals Longer than a Year.
It's all too easy to lose momentum if your goals exceed a year. As humans, we tend to lose interest in things that are too far in the future. Life moves exceedingly fast, and we need to be equally responsive. When we set our goals, we have all the intention in the world of following through with them, but life gets in the way and things change very quickly. You can overcome this by setting concrete, focused goals each year and building a set of daily actions that allows you to achieve them.
Alter Your Goals When Necessary.
Don't hesitate to reassess your goals on a quarterly basis. That should give you enough time to gauge whether the desired results are showing up, and help you avoid frustration and constantly second-guessing yourself. Think of your goals as if they were a sail of a boat. You can alter the course while still heading in the same general direction. For example, if your goal is to set up ten face-to-face meetings each month, but you are only getting eight meetings, that might be okay if it turns out you are closing a higher number of deals than anticipated.
Thursday, September 6, 2007
DEVELOPING A CUSTOMER DRIVEN MARKETING
Loyal customers are a powerful ally. They can generate new business with the accolades they share about your product or services. They can be instrumental in getting and keeping a product stocked on shelves.
Here are tips of how to develop a Customer-Driven Marketing.
Generating Customers Interaction
Create a forum section in your company’s website which enable of getting customers feedback and interaction within themselves regarding your product or services. With this forum section you can monitor any comments and ideas that will boost customer satisfaction.
With this method you may also interact indirectly with your new customers, get in touch with the former customers, building your goodwill and creating a good business reputation.
Word-of-Mouth Marketing
Inspire your friends and existing customers to talk about your company and your product by giving them an excellent after sales service. Create a strategic marketing approach that will make your customer feel satisfied with your product or services. Satisfied customers normally will help you in “Word of Mouth Marketing”.
Customer Data
Find out what customers want. In order to do this, you should know who are your customers. Their general background regarding lifestyles, spending habits and so on. By doing a research about your customers, you will find a solution of how to channel your marketing strategy as per customers needs.
Here are tips of how to develop a Customer-Driven Marketing.
Generating Customers Interaction
Create a forum section in your company’s website which enable of getting customers feedback and interaction within themselves regarding your product or services. With this forum section you can monitor any comments and ideas that will boost customer satisfaction.
With this method you may also interact indirectly with your new customers, get in touch with the former customers, building your goodwill and creating a good business reputation.
Word-of-Mouth Marketing
Inspire your friends and existing customers to talk about your company and your product by giving them an excellent after sales service. Create a strategic marketing approach that will make your customer feel satisfied with your product or services. Satisfied customers normally will help you in “Word of Mouth Marketing”.
Customer Data
Find out what customers want. In order to do this, you should know who are your customers. Their general background regarding lifestyles, spending habits and so on. By doing a research about your customers, you will find a solution of how to channel your marketing strategy as per customers needs.
Wednesday, August 22, 2007
TIPS ABOUT BRANDING
Branding, a commonly used term throughout the business world, essentially means to create an identifiable entity that makes a promise of value. It means that you have created a consciousness, an image, an awareness of your business. It is your company's personality.
Numerous businesses try, but many fail at creating a successful brand.
Why ? This is because …….
NOT THINKING ANALYTICALLY
Too many companies think of branding as marketing or as having a catch phrase or a logo. It is more than simply vying for attention. A brand warrants attention on a consistent basis, represents something that your audience wants but does not get from your competitors. For example, it could be providing the best customer service in your industry . Gaining potential customers attention is not just only through your tagline or logo but by actually providing the best customer service in your industry.
NOT MAINTAINING YOUR BRAND
Too often, in a shaky economy, businesses are quick to change or alter their identity. Too much of this confuses your steady customers. For guidance, think of big brands , Nike for instance, has used "Just Do It" as a logo for years. One rule of thumb is that when you have become tired of your logo, tagline, and branding efforts, that's when they begin to sink in with customers.
TRYING TO APPEASE EVERYONE
You will never be able to brand yourself in such a way that everyone will like you. Typically the best you can do is to focus on the niche market for your product.
NOT KNOWING WHO YOU REALLY ARE
If you are not the fastest overnight delivery service in the world, do not profess to be. Too many business owners think that they are providing something that they don't. Know your strengths and weaknesses through honest analyses of what you do best.
NOT FULLY COMMITTING TO BRANDING
Often business owners let the marketing and advertising department handle such things as "branding," while they work on sales and other important parts of the business. But sales and branding are tied together as integral aspects of your business. Many Fortune 500 companies are where they are today because smart branding made them household names.
NOT SHARING THE JOKE
If only the people in your office get a joke, it is not going to play to a large audience. The same holds true for branding. If your campaign is created for you and not "them," your brand will not succeed.
NOT HAVING A DEDICATED MARKETING PLAN
Many companies come up with ideas to market themselves and establish a brand identity but have neither the resources nor a plan as to how they will reach their audience. You must have a well-thought out marketing plan in place before your branding strategy will work. For help putting together a marketing plan, see How to Build a Sound Marketing Plan for Your Business.
USING TOO MUCH JARGON
Business-to-business-based companies are most guilty of piling on the jargon. From benchmark to strategic partnering to value added, jargon does not benefit branding. If anything, it muddles your message.
TRYING TOO HARD TO BE DIFFERENT
Being different for the sake of being different is not branding. Yes, you will be noticed, but not necessarily in a way that increases sales.
NOT KNOWING WHEN YOU HAVE GOT THEM
Companies that have succeeded in branding need to know when to stop establishing their brand and when to maintain that which they have established. Monitor the results of your branding campaign. If your small business is a local household word, you can spend more time maintaining your professional image.
Numerous businesses try, but many fail at creating a successful brand.
Why ? This is because …….
NOT THINKING ANALYTICALLY
Too many companies think of branding as marketing or as having a catch phrase or a logo. It is more than simply vying for attention. A brand warrants attention on a consistent basis, represents something that your audience wants but does not get from your competitors. For example, it could be providing the best customer service in your industry . Gaining potential customers attention is not just only through your tagline or logo but by actually providing the best customer service in your industry.
NOT MAINTAINING YOUR BRAND
Too often, in a shaky economy, businesses are quick to change or alter their identity. Too much of this confuses your steady customers. For guidance, think of big brands , Nike for instance, has used "Just Do It" as a logo for years. One rule of thumb is that when you have become tired of your logo, tagline, and branding efforts, that's when they begin to sink in with customers.
TRYING TO APPEASE EVERYONE
You will never be able to brand yourself in such a way that everyone will like you. Typically the best you can do is to focus on the niche market for your product.
NOT KNOWING WHO YOU REALLY ARE
If you are not the fastest overnight delivery service in the world, do not profess to be. Too many business owners think that they are providing something that they don't. Know your strengths and weaknesses through honest analyses of what you do best.
NOT FULLY COMMITTING TO BRANDING
Often business owners let the marketing and advertising department handle such things as "branding," while they work on sales and other important parts of the business. But sales and branding are tied together as integral aspects of your business. Many Fortune 500 companies are where they are today because smart branding made them household names.
NOT SHARING THE JOKE
If only the people in your office get a joke, it is not going to play to a large audience. The same holds true for branding. If your campaign is created for you and not "them," your brand will not succeed.
NOT HAVING A DEDICATED MARKETING PLAN
Many companies come up with ideas to market themselves and establish a brand identity but have neither the resources nor a plan as to how they will reach their audience. You must have a well-thought out marketing plan in place before your branding strategy will work. For help putting together a marketing plan, see How to Build a Sound Marketing Plan for Your Business.
USING TOO MUCH JARGON
Business-to-business-based companies are most guilty of piling on the jargon. From benchmark to strategic partnering to value added, jargon does not benefit branding. If anything, it muddles your message.
TRYING TOO HARD TO BE DIFFERENT
Being different for the sake of being different is not branding. Yes, you will be noticed, but not necessarily in a way that increases sales.
NOT KNOWING WHEN YOU HAVE GOT THEM
Companies that have succeeded in branding need to know when to stop establishing their brand and when to maintain that which they have established. Monitor the results of your branding campaign. If your small business is a local household word, you can spend more time maintaining your professional image.
Tuesday, August 14, 2007
TIPS TO SUCCESS - NEVER GIVE UP
Thomas Edison is credited with developing more than 1,000 inventions.
His friends and family called him crazy because he refused to give up on any of his ideas. His persistence and tenacity in finding practical solutions to any problems he encountered became his hallmark. The word failure wasn't in his vocabulary. He simply believed that with hard work and determination, he could achieve anything he set his mind to.
Edison's success teaches us that if we give up too easily, we can lose out on all kinds of opportunities for advancing our businesses. No matter how well you execute your plans, you will always encounter complications along the way. If you want to persevere in the face of challenges and achieve your goals, you must remain committed to succeeding. No matter the circumstances.
Adversity is a great teacher.
It keeps you focused and alert to new expansion opportunities for your business. When you encounter a roadblock, use your determination to spur you on.
BE SOLUTION ORIENTED
As entrepreneurs, we know there's a wide range of issues that arise each day. When a problem develops, your first step should be to clearly define it. Once you've put it into perspective, you can brainstorm techniques to maneuver around it, over it or through it.
BE CREATIVE
Don't discard an idea simply because you've never tried it. Your determination to find a solution will lead you down a path you could never have imagined before. List every possible option, consider the pros and cons for each, then choose one to implement.
BE WILLING TO DEVELOP NEW TALENTS
Your unique set of talents forms the basis for your entrepreneurial success. Affirm your natural strengths by continually developing your inner resources. If confronted with unfamiliar territory, reach out to others. Develop a circle of associates to help each other find new, innovative insights for resolving problems. The knowledge exchanged during these encounters will strengthen new talents and reinforce your determination to succeed.
MAKE ACHIEVEMENT A CORE PERSONAL VALUE
Your commitment to achievement is a valuable asset. Cultivate an unwavering stance on the road to accomplishment. Don't avoid what's hard. Face it, evaluate it, and find a way to conquer it. It's natural to adjust your action steps and strategies as you learn. Your steadfast pursuit of new problem-solving techniques will help you accomplish what once seemed daunting.
REMAIN PATIENT
Patience, willpower and hard work pay off in unexpected ways. When faced with a dead end, don't consider it a failure. Think of it as part of the necessary process of elimination on the road to success. Keep on task, and be willing to wait for an answer to present itself. Find joy in discovering new possibilities for growing your business, even though there may be a winding road to the final remedy.
Thomas Edison's aspiration was to do everything within his power to free people from drudgery. Take a page from Edison's book by reflecting on the inspiration behind your business. This passion is a great source of motivation that can't be easily shaken by self-doubt. Find opportunity in every circumstance, and you'll be successful in all your endeavors.
His friends and family called him crazy because he refused to give up on any of his ideas. His persistence and tenacity in finding practical solutions to any problems he encountered became his hallmark. The word failure wasn't in his vocabulary. He simply believed that with hard work and determination, he could achieve anything he set his mind to.
Edison's success teaches us that if we give up too easily, we can lose out on all kinds of opportunities for advancing our businesses. No matter how well you execute your plans, you will always encounter complications along the way. If you want to persevere in the face of challenges and achieve your goals, you must remain committed to succeeding. No matter the circumstances.
Adversity is a great teacher.
It keeps you focused and alert to new expansion opportunities for your business. When you encounter a roadblock, use your determination to spur you on.
BE SOLUTION ORIENTED
As entrepreneurs, we know there's a wide range of issues that arise each day. When a problem develops, your first step should be to clearly define it. Once you've put it into perspective, you can brainstorm techniques to maneuver around it, over it or through it.
BE CREATIVE
Don't discard an idea simply because you've never tried it. Your determination to find a solution will lead you down a path you could never have imagined before. List every possible option, consider the pros and cons for each, then choose one to implement.
BE WILLING TO DEVELOP NEW TALENTS
Your unique set of talents forms the basis for your entrepreneurial success. Affirm your natural strengths by continually developing your inner resources. If confronted with unfamiliar territory, reach out to others. Develop a circle of associates to help each other find new, innovative insights for resolving problems. The knowledge exchanged during these encounters will strengthen new talents and reinforce your determination to succeed.
MAKE ACHIEVEMENT A CORE PERSONAL VALUE
Your commitment to achievement is a valuable asset. Cultivate an unwavering stance on the road to accomplishment. Don't avoid what's hard. Face it, evaluate it, and find a way to conquer it. It's natural to adjust your action steps and strategies as you learn. Your steadfast pursuit of new problem-solving techniques will help you accomplish what once seemed daunting.
REMAIN PATIENT
Patience, willpower and hard work pay off in unexpected ways. When faced with a dead end, don't consider it a failure. Think of it as part of the necessary process of elimination on the road to success. Keep on task, and be willing to wait for an answer to present itself. Find joy in discovering new possibilities for growing your business, even though there may be a winding road to the final remedy.
Thomas Edison's aspiration was to do everything within his power to free people from drudgery. Take a page from Edison's book by reflecting on the inspiration behind your business. This passion is a great source of motivation that can't be easily shaken by self-doubt. Find opportunity in every circumstance, and you'll be successful in all your endeavors.
Sunday, August 12, 2007
BUSINESS WEBSITE - COMMON ERROR
Today, it takes more than just having a Web site to make the Internet work for your company.
Sites are highly competitive and proper site design has become an area of concern to businesses that want to use the Internet to the fullest.
Below are common Web site errors that occur.
INAPPRORIATE DOMAIN NAME
Pick a domain name that is memorable and relates to your business. Since people are likely to forget very long names, shorter domain names are typically better, but not always. A name like "Peter.com" can be too vague and says nothing about the content of the website.
POOR DESIGN AND FUNCTIONALITY
Why have a Web site with content if no one can access it? Good design is largely based on consistency. Menus should appear in the same place on every page, links should all be the same color/typeface, and a logo of some sort should be clearly visible at all times.
TOO COMPLICATED OR TOO SLOW
Although flash animation may look amazing, it may be too complex for casual Internet users. Though aesthetics certainly matter, it must be in balance with functionality and ease of use for the typical user. Also, a more complex design takes longer to load on many computers.
STAGNANT SITE
Not only is content time-sensitive, but so is format and design. There will always be new tools available to make Web sites better looking and better performing. It is not cost-effective to create a Web site and let it sit. Update content regularly and take advantage of (appropriate) new technologies to make the site look better.
BROKEN LINKS AND 404 ERROR MESSAGES
Make sure every link on your site works. You'll lose users quickly if they see a "404 file not found" error message, find broken or incorrectly labeled links. If you have a large site, consider adding a form so users can "submit a broken link," which lets users know you are on top of any problems they discover.
NO CONTACT INFO
Users need to be able to contact you with questions, complaints, and suggestions. A "contact us" page, like an Internet business card, should be available from any part of your site. Also, be sure to actually answer these messages either personally or through an auto-reply.
IGNORING STATISTICS
Detailed reports of visitor traffic are available for your Web site. This service may be offered by your hosting provider, or obtained data through a third party. By monitoring your statistics (like visitors turned customers, users on broadband, and so on) you can tailor your marketing and design toward those who visit most, or find weak spots based on who you are not attracting.
FREE OR CHEAP HOSTING
As attractive as some of these services are, realize that the reliability of your business depends on the reliability of your hosting. A good host service should have minimal downtime, offer services like shopping cart systems, and have good customer support. Be sure to read reviews and apply for free trials (if possible) before you commit to anything.
AVOIDING SPIDERS
Spiders are what search engines use to find your page. You want to make sure your page are designed so that you show up high on search engine rankings. This process is called search engine optimization (SEO). There are, however, ethics and strategies to SEO. Some practices (like hidden text, redirects, and so on) will result in your being banned from search engines.
NOT HIRING PROFESSIONAL
Search engine optimization is complex. To move up in the listings on Google and other search engines, you may want to hire a professional, especially if your business relies heavily on generating business from the Web.
Sites are highly competitive and proper site design has become an area of concern to businesses that want to use the Internet to the fullest.
Below are common Web site errors that occur.
INAPPRORIATE DOMAIN NAME
Pick a domain name that is memorable and relates to your business. Since people are likely to forget very long names, shorter domain names are typically better, but not always. A name like "Peter.com" can be too vague and says nothing about the content of the website.
POOR DESIGN AND FUNCTIONALITY
Why have a Web site with content if no one can access it? Good design is largely based on consistency. Menus should appear in the same place on every page, links should all be the same color/typeface, and a logo of some sort should be clearly visible at all times.
TOO COMPLICATED OR TOO SLOW
Although flash animation may look amazing, it may be too complex for casual Internet users. Though aesthetics certainly matter, it must be in balance with functionality and ease of use for the typical user. Also, a more complex design takes longer to load on many computers.
STAGNANT SITE
Not only is content time-sensitive, but so is format and design. There will always be new tools available to make Web sites better looking and better performing. It is not cost-effective to create a Web site and let it sit. Update content regularly and take advantage of (appropriate) new technologies to make the site look better.
BROKEN LINKS AND 404 ERROR MESSAGES
Make sure every link on your site works. You'll lose users quickly if they see a "404 file not found" error message, find broken or incorrectly labeled links. If you have a large site, consider adding a form so users can "submit a broken link," which lets users know you are on top of any problems they discover.
NO CONTACT INFO
Users need to be able to contact you with questions, complaints, and suggestions. A "contact us" page, like an Internet business card, should be available from any part of your site. Also, be sure to actually answer these messages either personally or through an auto-reply.
IGNORING STATISTICS
Detailed reports of visitor traffic are available for your Web site. This service may be offered by your hosting provider, or obtained data through a third party. By monitoring your statistics (like visitors turned customers, users on broadband, and so on) you can tailor your marketing and design toward those who visit most, or find weak spots based on who you are not attracting.
FREE OR CHEAP HOSTING
As attractive as some of these services are, realize that the reliability of your business depends on the reliability of your hosting. A good host service should have minimal downtime, offer services like shopping cart systems, and have good customer support. Be sure to read reviews and apply for free trials (if possible) before you commit to anything.
AVOIDING SPIDERS
Spiders are what search engines use to find your page. You want to make sure your page are designed so that you show up high on search engine rankings. This process is called search engine optimization (SEO). There are, however, ethics and strategies to SEO. Some practices (like hidden text, redirects, and so on) will result in your being banned from search engines.
NOT HIRING PROFESSIONAL
Search engine optimization is complex. To move up in the listings on Google and other search engines, you may want to hire a professional, especially if your business relies heavily on generating business from the Web.
Wednesday, August 8, 2007
NATURAL-BORN INSTINCTS
The decisions you make about who you're going to sell to, call and build relationships with have a major impact on your success.
Here are some tips for learning how to tap into your natural-born instincts.
When meeting prospects for the first time, look and listen
This advice is so basic, but it's amazing how people rarely look you in the eye, especially when it's something important. This conveys that they're not comfortable with the information they're sharing. Also, listen to what prospects say and how their actions match their words. Do they do what they say they are going to do? Sometimes when we take a back seat in the conversation and really listen with our eyes and ears, our instincts will reveal something.
Learn to listen to your natural instincts
For millions of years, we lived in the wilderness and trusted our instincts to survive. But today, business owners rely on technologies and other modern resources to provide answers and information. These days, we're rarely in touch with our natural instincts.
How many times have you said to yourself, "I should have done that deal," or, "I should have listened to my gut and not done that deal?" The next time your instincts push you in a direction, don't ignore them. Listen to what your gut is telling you and act on it.
Develop honesty, integrity and rapport
Our instincts work best when the customer sees us for who we really are. Your instincts will read situations much more clearly when your customer opens up and both parties are being true to themselves. I've always done well working with people who say with their actions, "This is who I am, like it or not." They are confident in their abilities and have the track record to back them up. My gut instincts are very positive about these people, and it usually works out well.
Do your research
A little fact-finding won't hurt.
It can provide support and reassurance for what your gut is telling you.
Here are some tips for learning how to tap into your natural-born instincts.
When meeting prospects for the first time, look and listen
This advice is so basic, but it's amazing how people rarely look you in the eye, especially when it's something important. This conveys that they're not comfortable with the information they're sharing. Also, listen to what prospects say and how their actions match their words. Do they do what they say they are going to do? Sometimes when we take a back seat in the conversation and really listen with our eyes and ears, our instincts will reveal something.
Learn to listen to your natural instincts
For millions of years, we lived in the wilderness and trusted our instincts to survive. But today, business owners rely on technologies and other modern resources to provide answers and information. These days, we're rarely in touch with our natural instincts.
How many times have you said to yourself, "I should have done that deal," or, "I should have listened to my gut and not done that deal?" The next time your instincts push you in a direction, don't ignore them. Listen to what your gut is telling you and act on it.
Develop honesty, integrity and rapport
Our instincts work best when the customer sees us for who we really are. Your instincts will read situations much more clearly when your customer opens up and both parties are being true to themselves. I've always done well working with people who say with their actions, "This is who I am, like it or not." They are confident in their abilities and have the track record to back them up. My gut instincts are very positive about these people, and it usually works out well.
Do your research
A little fact-finding won't hurt.
It can provide support and reassurance for what your gut is telling you.
Thursday, August 2, 2007
PUBLIC RELATION
Most marketing programs come with a healthy price tag.
That is, with one exception ….. public relations.
Several PR tactics can be mastered by do-it-yourselfers.
You can use them to reach and persuade customers at virtually no cost.
Try any of the following tactics to spread the good word about your business.
Meet the press through media relations
When you think of PR, media relations is probably the tactic that often comes to mind. The goal is to gain coverage in print, broadcast and online media through interviews and articles. To build relationships with members of the press …..
First, identify which medium your target audience looks to for information on your market. Develop a list of editors and journalists and familiarize yourself with each publication, website or broadcast program you plan to pitch. This will ensure that your message is on target.
Next, send a press release or pitch letter to your target market's preferred media outlet. Follow up the release with phone calls to the targeted journalists. Don't be surprised if you're asked to send your materials again, since the media is deluged with press releases. You may not get placements on your first calls, but as you develop relationships with members of the press, you'll establish yourself as a resource and eventually win coverage.
Get local attention with community affairs
For some types of businesses, building a positive company image and high visibility within the local community are primary PR goals. You can enhance your company's position through a community affairs campaign that supports key issues, philanthropic endeavors and community events. For example, companies targeting the Latino market often take visible roles in local Latino community life, from street fairs and festivals to charitable giving. This establishes them as caring community members, increases their visibility and name recognition, and yields positive PR.
The key to success in community affairs is to put your efforts into activities that will gain recognition from your primary target audience and garner local press coverage. When a Washington, DC landscaping company refurbished a rundown inner-city playground, it built tremendous word-of-mouth and earned coverage in local media and an entirely new level of name recognition in its principal market area. Get the idea?
Become a recognized expert with a radio press tour
Would becoming known as an expert in your field propel you and your business forward? Setting up your own radio press tour is easier than you think, and it's a great way to spread your name and message while building sales. Once you're established as an "expert" you'll get ongoing requests for interviews and comments from print and online media. A little coverage generally breeds more.
Talk radio programming nationwide covers a broad range of topics, from gardening to child safety and business finance. What types of shows do your best prospects listen to, and what can you share that will interest them? Talk show producers are looking for guests that can present unique, compelling ideas and present them in a way that won't put their listeners to sleep. Choose a story angle or topic that lets you shine, then write a media alert. This is similar to a press release but concludes with your availability for interviews and how to book you.
Fax or e-mail the alert to targeted producers along with a separate page with information they can use as a basis for your interview, such as "10 Tips for Back to School Safety," or "6 Ways to Save Money at Tax Time." Then follow up by telephone to pitch your story. Be persistent. You may need to send several alerts and tips sheets for a period of time before securing an interview. But once you give a great interview, you can bet the producers will want you back for more.
That is, with one exception ….. public relations.
Several PR tactics can be mastered by do-it-yourselfers.
You can use them to reach and persuade customers at virtually no cost.
Try any of the following tactics to spread the good word about your business.
Meet the press through media relations
When you think of PR, media relations is probably the tactic that often comes to mind. The goal is to gain coverage in print, broadcast and online media through interviews and articles. To build relationships with members of the press …..
First, identify which medium your target audience looks to for information on your market. Develop a list of editors and journalists and familiarize yourself with each publication, website or broadcast program you plan to pitch. This will ensure that your message is on target.
Next, send a press release or pitch letter to your target market's preferred media outlet. Follow up the release with phone calls to the targeted journalists. Don't be surprised if you're asked to send your materials again, since the media is deluged with press releases. You may not get placements on your first calls, but as you develop relationships with members of the press, you'll establish yourself as a resource and eventually win coverage.
Get local attention with community affairs
For some types of businesses, building a positive company image and high visibility within the local community are primary PR goals. You can enhance your company's position through a community affairs campaign that supports key issues, philanthropic endeavors and community events. For example, companies targeting the Latino market often take visible roles in local Latino community life, from street fairs and festivals to charitable giving. This establishes them as caring community members, increases their visibility and name recognition, and yields positive PR.
The key to success in community affairs is to put your efforts into activities that will gain recognition from your primary target audience and garner local press coverage. When a Washington, DC landscaping company refurbished a rundown inner-city playground, it built tremendous word-of-mouth and earned coverage in local media and an entirely new level of name recognition in its principal market area. Get the idea?
Become a recognized expert with a radio press tour
Would becoming known as an expert in your field propel you and your business forward? Setting up your own radio press tour is easier than you think, and it's a great way to spread your name and message while building sales. Once you're established as an "expert" you'll get ongoing requests for interviews and comments from print and online media. A little coverage generally breeds more.
Talk radio programming nationwide covers a broad range of topics, from gardening to child safety and business finance. What types of shows do your best prospects listen to, and what can you share that will interest them? Talk show producers are looking for guests that can present unique, compelling ideas and present them in a way that won't put their listeners to sleep. Choose a story angle or topic that lets you shine, then write a media alert. This is similar to a press release but concludes with your availability for interviews and how to book you.
Fax or e-mail the alert to targeted producers along with a separate page with information they can use as a basis for your interview, such as "10 Tips for Back to School Safety," or "6 Ways to Save Money at Tax Time." Then follow up by telephone to pitch your story. Be persistent. You may need to send several alerts and tips sheets for a period of time before securing an interview. But once you give a great interview, you can bet the producers will want you back for more.
Monday, July 30, 2007
MAKING SALES
Sales breakthroughs have a lot to do with your ability to be comfortable with being uncomfortable.
In many situations, success comes from understanding how to turn present discomfort into future gain. Many of the actions that aren't enjoyable now , such as making cold calls or working after hours when you feel like stopping but know you need to finish , are necessary to add value to each new step you take.
Here are some thoughts to keep you motivated when the going gets tough.
HARD WORK NOW WILL PAY OFF LATER
All the sales you've ever made did not happen overnight. They were likely accounts you worked on for long periods of time. Everything you have today was brought forth by all your past efforts. Think about what you've accomplished by doing the things you didn't want to do.
LEARN FROM EVERY EXPERIENCE
Understand and appreciate that the upside of difficulty is that there will always be new opportunities for learning and improving your skills.
FOCUS ON THE POSITIVES
Find something unique about each contact you encounter during the day to make something you might not enjoy enjoyable. Once I was making phone calls to new companies shortly after a snowstorm, and I found it to be a great time to make calls. You'd be surprised at how many people were in pleasant moods. On one call, I was speaking with the assistant to the vice president of sales, and she said she loved the sight of the snow outside her window. She was in a great mood and was very helpful. Following the call, I sent her a nice handwritten note about our brief talk and thanked her for her time. This won't close a sale, but it builds your chances of standing out in a positive way as you move forward with your next steps.
PICK A DIFFICULT ACTION OVER THE EASY ONE
Doing so will make you grow stronger as a person, not just as a salesperson. Call on the bigger accounts, start at the top and sell your way down and across departments, and make the calls after you're ready to go home. In the long run, this is what will separate you from the average performer.
TRY A DIFFERENT TECHNIQUE
A good friend of mine told me that he takes cold showers every day and rarely gets sick. Right after a hot shower, he turns off all the hot water and lets the shower run down his spine and all his joints. Does it feel uncomfortable at first? Yes. Does it shock your body? Yes, but then something strange happens. After a few weeks, your body becomes warm after a few seconds of the pain. Eventually, you begin to look forward to it. What was once uncomfortable is now comfortable. There's no difference between this and making uncomfortable calls to new people or making a presentation to a large group. In the beginning, it's difficult and uncomfortable, but later it becomes easier and produces rewarding results. I've been taking cold showers for more than four years now and have not gotten sick since.
In many situations, success comes from understanding how to turn present discomfort into future gain. Many of the actions that aren't enjoyable now , such as making cold calls or working after hours when you feel like stopping but know you need to finish , are necessary to add value to each new step you take.
Here are some thoughts to keep you motivated when the going gets tough.
HARD WORK NOW WILL PAY OFF LATER
All the sales you've ever made did not happen overnight. They were likely accounts you worked on for long periods of time. Everything you have today was brought forth by all your past efforts. Think about what you've accomplished by doing the things you didn't want to do.
LEARN FROM EVERY EXPERIENCE
Understand and appreciate that the upside of difficulty is that there will always be new opportunities for learning and improving your skills.
FOCUS ON THE POSITIVES
Find something unique about each contact you encounter during the day to make something you might not enjoy enjoyable. Once I was making phone calls to new companies shortly after a snowstorm, and I found it to be a great time to make calls. You'd be surprised at how many people were in pleasant moods. On one call, I was speaking with the assistant to the vice president of sales, and she said she loved the sight of the snow outside her window. She was in a great mood and was very helpful. Following the call, I sent her a nice handwritten note about our brief talk and thanked her for her time. This won't close a sale, but it builds your chances of standing out in a positive way as you move forward with your next steps.
PICK A DIFFICULT ACTION OVER THE EASY ONE
Doing so will make you grow stronger as a person, not just as a salesperson. Call on the bigger accounts, start at the top and sell your way down and across departments, and make the calls after you're ready to go home. In the long run, this is what will separate you from the average performer.
TRY A DIFFERENT TECHNIQUE
A good friend of mine told me that he takes cold showers every day and rarely gets sick. Right after a hot shower, he turns off all the hot water and lets the shower run down his spine and all his joints. Does it feel uncomfortable at first? Yes. Does it shock your body? Yes, but then something strange happens. After a few weeks, your body becomes warm after a few seconds of the pain. Eventually, you begin to look forward to it. What was once uncomfortable is now comfortable. There's no difference between this and making uncomfortable calls to new people or making a presentation to a large group. In the beginning, it's difficult and uncomfortable, but later it becomes easier and produces rewarding results. I've been taking cold showers for more than four years now and have not gotten sick since.
Friday, July 27, 2007
YOUNG ENTREPRENEURS
Ben Kaufman
Age: 20
Location: Burlington, Vt.
2006 Revenue: $1 million
Employees: 14
Year founded: 2005
What it does: Mophie makes cases, splitters, arms band, and clips for the iPod. The iPod accessory market may be crowded these days, but Kaufman's goal is to turn Mophie into a community-based product-development company that will solicit ideas for all kinds of new products -- not just iPod add-ons -- from a 50,000 member online user base. He's got $2 million in venture capital and a former top exec from Burton Snowboard on board to help him do it. Revenue is expected to hit $5 million this year.
Sean Belnick
Age: 20
Location: Kennesaw, Ga.
2006 Revenue: $24 million
Employees: 75
Year founded: 2001
What it does: At 14, Sean Belnick started a direct-shipping company for office furniture from his bedroom -- with $500. The company now stocks many of the products it sells in a new 327,000-square-foot warehouse in Canton, Ga., and has branched out into home furniture, medical equipment, and school furniture. Notable clients include the Pentagon, Microsoft, and "American Idol."
Bo Menkiti
Age: 30
Location: Washington, D.C.
2006 Revenue: $640,000
Employees: 10
Year founded: 2004
What it does: A Harvard MBA, Bo Menkiti sold his own home in the capital's Columbia Heights neighborhood to launch an urban real estate development, brokerage, and sales firm aimed at first-time buyers in the underserved middle market. In less than three years, his team has developed 33,000 square feet of residential and commercial property and brokered more than $60 million worth of real estate in the region. What's next for Menkiti? Developing a new 30-unit affordable housing building from the ground up.
Sam Altman
Age: 22
Location: Mountain View, Calif.
2006 Revenue: undisclosed
Employees: 30
Year founded: 2005
What it does: Loopt software provides location-based functions for cell phones, allowing users to see where their friends are on a map. The software also sends text alerts when friends come in close proximity to one another, and can search for nearby restaurants. It'll even tell you what spots your friends have tagged as favorites. Loopt's service is currently available on Boost Mobile, and is expected to launch on Sprint and other carriers within months. Altman says he wants to bring the Internet out of the home and into the wild. "The company's mission is to enhance, improve, and make more of real-world interaction," he says.
Katie Kerrigan
Age: 27
Location: Libertyville, Ill.
2006 Revenue: $57,000
Employees: 1 full-time, 2 part-time
Year founded: 2005
What it does: When Kerrigan, a former college athlete, entered the professional world, she was discouraged by the lack of stylish shoes for tall women. At six-feet tall with a size 11 shoe, she began looking for solutions. While getting her MBA, she drafted a business plan for a company that sold dress shoes to women with larger feet -- sizes 10 and above. In 2005, Kerrigan launched her website, KathrynKerrigan.com, where other women like herself can find everything from stylish high heels to trendy flats. Kerrigan works with a craftsman in Italy to create her original designs. Her shoes can be found in boutiques nationwide and in her new flagship store, which opened this year in Libertyville, Ill. Sales are expected to quadruple this year.
Byron Myers, Ali Perry, and Brenton Taylor
Ages: 27 (Myers), 25 (Perry), and 26 (Taylor)
Location: Goleta, Calif.
2006 Revenue: $15 million
Employees: 100
Year founded: 2001
What it does: Winning a business plan competition at the University of California Santa Barbara prompted these friends to take their idea for an oxygen concentrator and actually form a company. Perry's grandmother complained about the bulkiness and inconvenience of her old oxygen machine, so the trio designed their compact device to filter out the nitrogen from room air, eliminating the hassle of having oxygen tanks delivered. Inogen's machine can also be plugged in anywhere or used on the go with a rechargeable lithium ion battery. The company has sold more than 10,000 devices.
Raj Lahoti
Age: 25
Location: San Diego
2006 Revenue: $11.5 million
Employees: 15
Year founded: 2003
What it does: After a few years dabbling in Internet domain acquisition and traffic brokering, Raj Lahoti set out to build up one of his brother's domains in order to provide meaningful content in an area that, well, generally lacks it. DMV.ORG, the "Online Unofficial Guide to the DMV," aggregates information from the (often dreaded) Department of Motor Vehicles in each state -- all in one place. Users can access information on everything from applying for a license to ordering a driving record, without the aggravation of standing in the DMV's endless lines.
Geoff Cook, Dave Cook, Catherine Cook
Ages: 29 (Geoff), 19 (Dave), and 17 (Catherine)
Location: New Hope, Pa.
2006 Revenue: undisclosed
Employees: 25
Year founded: 2005
What it does: A social networking site for teens, myYearbook.com was hatched around the family dinner table by siblings Catherine and Dave two years ago. With older brother Geoff now on board, the site has since grown from a single high school to more than 3 million members and more than 4.5 million visitors a month, ranking it third among all social networking sites in the United States, behind MySpace and Facebook.
Age: 20
Location: Burlington, Vt.
2006 Revenue: $1 million
Employees: 14
Year founded: 2005
What it does: Mophie makes cases, splitters, arms band, and clips for the iPod. The iPod accessory market may be crowded these days, but Kaufman's goal is to turn Mophie into a community-based product-development company that will solicit ideas for all kinds of new products -- not just iPod add-ons -- from a 50,000 member online user base. He's got $2 million in venture capital and a former top exec from Burton Snowboard on board to help him do it. Revenue is expected to hit $5 million this year.
Sean Belnick
Age: 20
Location: Kennesaw, Ga.
2006 Revenue: $24 million
Employees: 75
Year founded: 2001
What it does: At 14, Sean Belnick started a direct-shipping company for office furniture from his bedroom -- with $500. The company now stocks many of the products it sells in a new 327,000-square-foot warehouse in Canton, Ga., and has branched out into home furniture, medical equipment, and school furniture. Notable clients include the Pentagon, Microsoft, and "American Idol."
Bo Menkiti
Age: 30
Location: Washington, D.C.
2006 Revenue: $640,000
Employees: 10
Year founded: 2004
What it does: A Harvard MBA, Bo Menkiti sold his own home in the capital's Columbia Heights neighborhood to launch an urban real estate development, brokerage, and sales firm aimed at first-time buyers in the underserved middle market. In less than three years, his team has developed 33,000 square feet of residential and commercial property and brokered more than $60 million worth of real estate in the region. What's next for Menkiti? Developing a new 30-unit affordable housing building from the ground up.
Sam Altman
Age: 22
Location: Mountain View, Calif.
2006 Revenue: undisclosed
Employees: 30
Year founded: 2005
What it does: Loopt software provides location-based functions for cell phones, allowing users to see where their friends are on a map. The software also sends text alerts when friends come in close proximity to one another, and can search for nearby restaurants. It'll even tell you what spots your friends have tagged as favorites. Loopt's service is currently available on Boost Mobile, and is expected to launch on Sprint and other carriers within months. Altman says he wants to bring the Internet out of the home and into the wild. "The company's mission is to enhance, improve, and make more of real-world interaction," he says.
Katie Kerrigan
Age: 27
Location: Libertyville, Ill.
2006 Revenue: $57,000
Employees: 1 full-time, 2 part-time
Year founded: 2005
What it does: When Kerrigan, a former college athlete, entered the professional world, she was discouraged by the lack of stylish shoes for tall women. At six-feet tall with a size 11 shoe, she began looking for solutions. While getting her MBA, she drafted a business plan for a company that sold dress shoes to women with larger feet -- sizes 10 and above. In 2005, Kerrigan launched her website, KathrynKerrigan.com, where other women like herself can find everything from stylish high heels to trendy flats. Kerrigan works with a craftsman in Italy to create her original designs. Her shoes can be found in boutiques nationwide and in her new flagship store, which opened this year in Libertyville, Ill. Sales are expected to quadruple this year.
Byron Myers, Ali Perry, and Brenton Taylor
Ages: 27 (Myers), 25 (Perry), and 26 (Taylor)
Location: Goleta, Calif.
2006 Revenue: $15 million
Employees: 100
Year founded: 2001
What it does: Winning a business plan competition at the University of California Santa Barbara prompted these friends to take their idea for an oxygen concentrator and actually form a company. Perry's grandmother complained about the bulkiness and inconvenience of her old oxygen machine, so the trio designed their compact device to filter out the nitrogen from room air, eliminating the hassle of having oxygen tanks delivered. Inogen's machine can also be plugged in anywhere or used on the go with a rechargeable lithium ion battery. The company has sold more than 10,000 devices.
Raj Lahoti
Age: 25
Location: San Diego
2006 Revenue: $11.5 million
Employees: 15
Year founded: 2003
What it does: After a few years dabbling in Internet domain acquisition and traffic brokering, Raj Lahoti set out to build up one of his brother's domains in order to provide meaningful content in an area that, well, generally lacks it. DMV.ORG, the "Online Unofficial Guide to the DMV," aggregates information from the (often dreaded) Department of Motor Vehicles in each state -- all in one place. Users can access information on everything from applying for a license to ordering a driving record, without the aggravation of standing in the DMV's endless lines.
Geoff Cook, Dave Cook, Catherine Cook
Ages: 29 (Geoff), 19 (Dave), and 17 (Catherine)
Location: New Hope, Pa.
2006 Revenue: undisclosed
Employees: 25
Year founded: 2005
What it does: A social networking site for teens, myYearbook.com was hatched around the family dinner table by siblings Catherine and Dave two years ago. With older brother Geoff now on board, the site has since grown from a single high school to more than 3 million members and more than 4.5 million visitors a month, ranking it third among all social networking sites in the United States, behind MySpace and Facebook.
Monday, July 23, 2007
MOTIVATION TO IMPROVE YOUR FINANCES
One of the most difficult aspects of getting your finances in order is finding the motivation to do so.
Here are some basic steps you can take to help motivate yourself to move from merely thinking about improving your finances to actually taking action to improve them.
WRITE A LIST
While this may seem obvious, it's often the hardest step to take. Thinking about all of the different tasks you need to do can paralyze you into doing nothing at all. If you can write down all of the things you need to do, then you have a list from which to begin tackling the tasks, and it will become easier to motivate yourself to work toward them.
SET FINANCIAL GOALS
Once you have made your list of the financial tasks you need to accomplish, spend some time turning these into financial goals. One of the most important points when setting goals is to make them specific and to place a time limit on them. For example, "I want to have $25,000 in my retirement account within five years" is a much better goal than "I want to fund my retirement account." The more specific you can be with your goals, the easier it will be to take the steps needed to achieve them and to monitor and record your progress.
CREATE CONCRETE & PERSONAL REASONS
One of the most powerful forces that will help you achieve your goals is to have concrete and personal reasons why those goals are important to you. The more solid and exclusive the reasons you can list for each goal, the more motivated and dedicated you will be to achieving them. "I want to fulfill my dream to travel to Europe before I'm 65" is a more concrete and personal reason to want to save for retirement than "my financial adviser says it's important."
CREATE MINI GOALS
Once you have your goals in place, take some time to break them down into smaller, mini goals. Many financial goals are long -term ones. They can often be so big and so far off in the future that when looking only at your desired final result, you'll have no idea where to even begin. By breaking down your goals into smaller ones, it will be much easier to visualize each step that you need to take.
KEEP A DAILY FINANCIAL JOURNAL
A wonderful way to help yourself stay motivated and move toward your financial goals is to begin a daily financial journal. You can write this journal the old-fashioned way, by hand, or you can create one online and join the many personal finance bloggers who keep track of their finances for the world to see. Keeping a daily journal will help you stay focused on your money goals, offer a daily reminder of where you want your finances to be in the future and allow you to see your progress as you strive for those goals. When you get frustrated or discouraged, going back and reviewing the progress you have made will be invaluable to helping you stay motivated.
DON'T KEEP IT A SECRET & INVOLVE THE ENTIRE FAMILY
While you may be tempted to keep your financial goals a secret, you will be much better off if you let others know what they are. It is much harder to back out or give up on your financial goals when you create a sort of personal accountability by announcing them to others. Letting others in on your goals also creates a support network that can help motivate and encourage you when times get hard. For those with families, involving the entire household in your financial goals works in your interest. You will have a much better chance of completing your goals as a team than if you try to accomplish them entirely by yourself. The more people you involve, the more ideas you will have on how to reach those goals. In addition, the undertaking could prove to be a financial learning experience for the entire family instead of just a one-person odyssey. If you fail to involve family members, they could inadvertently sabotage your efforts to reach your financial goals, and they may not understand why certain monetary sacrifices are being made. Taking the time to include everyone and seeking their help, advice and ideas will greatly increase your chances of success.
KEEP YOUR GOALS VISIBLE
Whatever your financial goals may be, make sure to place them prominently someplace in your house where you are sure to see them more than once a day. Many times people write down their goals and then file them away, never to be seen again. When this happens, the goals are usually forgotten in a short period of time. Placing your goals in a prominent area of your house will help ensure that they don't slip your mind. For example, you may want to place them on your refrigerator door, above your computer or on the backside of the door you use to exit your house. The more often you see them, the better chance you have of staying focused and motivated to reach your goals.
CHART YOUR PROGRESS
Make sure that you take the time at least once a month to chart your progress toward your goals. If you are writing a daily journal, it should be easy to look over your entries and come up with a summary for the entire month. Charting your progress over a longer period will show you that the daily steps you take are adding up over time.
JOIN FINANCIAL COMMUNITIES
A wide variety of Web sites cater to those who are trying to get their finances in order. Spending time in the forums, reading articles and sharing your own financial issues will help you gain valuable information on attaining your goals. These communities will also be a great help to keep you motivated when you're having trouble or when you're faced with unexpected financial setbacks.
BE PATIENT
You need to remember that everything is not going to change overnight, and that it's going to take a long time at a steady pace to reach your financial goals. Many people give up when they believe that the changes they want aren't happening quickly enough. If you realize that doing a little bit every day will ultimately help you reach your goals, you will not be discouraged and quit when things don't change rapidly.
REWARD YOURSELF
Take the time to reward yourself as you reach milestones on your way to your financial goals. Giving yourself rewards is important to help keep you motivated and can help get you through some of the harder times. Your reward can be anything that helps motivate you to reach the goal. For example, a night out for ice cream, a pizza dinner or a trip to the movies ……… anything that your family enjoys doing together to reward everyone for helping to make progress toward your goals.
BE PREPARED FOR SETBACKS
Understand that no matter how good you are and how well you have planned out everything, there will be times when unexpected setbacks occur. By understanding that these setbacks will come about, you can make sure that you have in place support mechanisms that will help you overcome these obstacles and stay on track toward your goals. It is when these unexpected setbacks occur that being part of a financial community and writing your daily diary will really pay off. By understanding that these events will arise, you will be able to recognize them when they do and have a much better chance of not succumbing to the temptation to give up. By taking each of these steps into consideration, you increase the chances that you will have the focus to stay motivated and to reach all of your financial goals.
JOIN THE "SMART PARTNERSHIP PROGRAM"
The easiest way to improve your financial status is by joining a "Smart Partnership Program" just like I'm doing. The tips is "Let Your Money Works For You". If you are interested just send email to me and I'll share it with you.
Here are some basic steps you can take to help motivate yourself to move from merely thinking about improving your finances to actually taking action to improve them.
WRITE A LIST
While this may seem obvious, it's often the hardest step to take. Thinking about all of the different tasks you need to do can paralyze you into doing nothing at all. If you can write down all of the things you need to do, then you have a list from which to begin tackling the tasks, and it will become easier to motivate yourself to work toward them.
SET FINANCIAL GOALS
Once you have made your list of the financial tasks you need to accomplish, spend some time turning these into financial goals. One of the most important points when setting goals is to make them specific and to place a time limit on them. For example, "I want to have $25,000 in my retirement account within five years" is a much better goal than "I want to fund my retirement account." The more specific you can be with your goals, the easier it will be to take the steps needed to achieve them and to monitor and record your progress.
CREATE CONCRETE & PERSONAL REASONS
One of the most powerful forces that will help you achieve your goals is to have concrete and personal reasons why those goals are important to you. The more solid and exclusive the reasons you can list for each goal, the more motivated and dedicated you will be to achieving them. "I want to fulfill my dream to travel to Europe before I'm 65" is a more concrete and personal reason to want to save for retirement than "my financial adviser says it's important."
CREATE MINI GOALS
Once you have your goals in place, take some time to break them down into smaller, mini goals. Many financial goals are long -term ones. They can often be so big and so far off in the future that when looking only at your desired final result, you'll have no idea where to even begin. By breaking down your goals into smaller ones, it will be much easier to visualize each step that you need to take.
KEEP A DAILY FINANCIAL JOURNAL
A wonderful way to help yourself stay motivated and move toward your financial goals is to begin a daily financial journal. You can write this journal the old-fashioned way, by hand, or you can create one online and join the many personal finance bloggers who keep track of their finances for the world to see. Keeping a daily journal will help you stay focused on your money goals, offer a daily reminder of where you want your finances to be in the future and allow you to see your progress as you strive for those goals. When you get frustrated or discouraged, going back and reviewing the progress you have made will be invaluable to helping you stay motivated.
DON'T KEEP IT A SECRET & INVOLVE THE ENTIRE FAMILY
While you may be tempted to keep your financial goals a secret, you will be much better off if you let others know what they are. It is much harder to back out or give up on your financial goals when you create a sort of personal accountability by announcing them to others. Letting others in on your goals also creates a support network that can help motivate and encourage you when times get hard. For those with families, involving the entire household in your financial goals works in your interest. You will have a much better chance of completing your goals as a team than if you try to accomplish them entirely by yourself. The more people you involve, the more ideas you will have on how to reach those goals. In addition, the undertaking could prove to be a financial learning experience for the entire family instead of just a one-person odyssey. If you fail to involve family members, they could inadvertently sabotage your efforts to reach your financial goals, and they may not understand why certain monetary sacrifices are being made. Taking the time to include everyone and seeking their help, advice and ideas will greatly increase your chances of success.
KEEP YOUR GOALS VISIBLE
Whatever your financial goals may be, make sure to place them prominently someplace in your house where you are sure to see them more than once a day. Many times people write down their goals and then file them away, never to be seen again. When this happens, the goals are usually forgotten in a short period of time. Placing your goals in a prominent area of your house will help ensure that they don't slip your mind. For example, you may want to place them on your refrigerator door, above your computer or on the backside of the door you use to exit your house. The more often you see them, the better chance you have of staying focused and motivated to reach your goals.
CHART YOUR PROGRESS
Make sure that you take the time at least once a month to chart your progress toward your goals. If you are writing a daily journal, it should be easy to look over your entries and come up with a summary for the entire month. Charting your progress over a longer period will show you that the daily steps you take are adding up over time.
JOIN FINANCIAL COMMUNITIES
A wide variety of Web sites cater to those who are trying to get their finances in order. Spending time in the forums, reading articles and sharing your own financial issues will help you gain valuable information on attaining your goals. These communities will also be a great help to keep you motivated when you're having trouble or when you're faced with unexpected financial setbacks.
BE PATIENT
You need to remember that everything is not going to change overnight, and that it's going to take a long time at a steady pace to reach your financial goals. Many people give up when they believe that the changes they want aren't happening quickly enough. If you realize that doing a little bit every day will ultimately help you reach your goals, you will not be discouraged and quit when things don't change rapidly.
REWARD YOURSELF
Take the time to reward yourself as you reach milestones on your way to your financial goals. Giving yourself rewards is important to help keep you motivated and can help get you through some of the harder times. Your reward can be anything that helps motivate you to reach the goal. For example, a night out for ice cream, a pizza dinner or a trip to the movies ……… anything that your family enjoys doing together to reward everyone for helping to make progress toward your goals.
BE PREPARED FOR SETBACKS
Understand that no matter how good you are and how well you have planned out everything, there will be times when unexpected setbacks occur. By understanding that these setbacks will come about, you can make sure that you have in place support mechanisms that will help you overcome these obstacles and stay on track toward your goals. It is when these unexpected setbacks occur that being part of a financial community and writing your daily diary will really pay off. By understanding that these events will arise, you will be able to recognize them when they do and have a much better chance of not succumbing to the temptation to give up. By taking each of these steps into consideration, you increase the chances that you will have the focus to stay motivated and to reach all of your financial goals.
JOIN THE "SMART PARTNERSHIP PROGRAM"
The easiest way to improve your financial status is by joining a "Smart Partnership Program" just like I'm doing. The tips is "Let Your Money Works For You". If you are interested just send email to me and I'll share it with you.
Wednesday, July 18, 2007
TIPS - MONEY MAKING FUNDAMENTALS
At the core of every successful business, from a global giant to a corner store, are the same fundamentals of money making , which are cash, margin, velocity, return, and growth.
And at the core of every successful business leader is an intuitive understanding of the relationships among them.
It's easy to think the basics of business are for beginners. Everyone knows what cash is, and that companies must make a profit.
But business acumen isn't about knowing definitions. It's about keeping the basics of money making in sharp focus and balancing them in a way that's healthy for the business.
When you have business acumen, you realize the importance of every job at every stage of your career. A mailroom clerk with business acumen knows that getting checks to the accounts receivable department more quickly will ease the company's cash flow. And a sales rep with business acumen knows that higher-margin products will increase the company's return.
Money making Basics
As the complexity of your job increases, it's easy to lose sight of the fundamentals. If your business acumen doesn't develop, you can stumble - focus too much on revenue growth and overlook cash, or focus too much on cash and overlook growth.
That's why you should never consider it beneath you to revisit the money making basics. They should be front and center in your diagnosis and decision making in every job you have.
Here are the basics :
CASH
No business survives long without it. You should know how much cash your business generates and how much cash it consumes.
What are the sources of it ? What drains it ? What's the timing of the inflows and outflows and how is it changing ? More sales often means more cash. But growing a business consumes cash. How fast can the company expand without straining its cash flow ?
MARGIN
When people talk about the bottom line, they generally mean net profit margin. The money the company earns after paying all its expenses, interest, and taxes. But gross margin is important, too. Gross margin is the difference between a product's selling price and what it costs to make the product , expressed as a percent of the selling price which can signal important shifts in a business. When PC makers saw their 32 percent gross margins decline to 20, they knew the competitive landscape had changed. You have to know how changes inside or outside the business affect gross margin. Are there new entrants in the market who are winning customers? A competitor who's found a clever way to reduce costs and prices? A change in the pricing power of suppliers?
VELOCITY
Velocity refers to speed, turnover, or movement. How much revenue do you turn over, or generate, for each dollar of inventory? If you have $1 million in inventory for the year and revenues of $10 million, your inventory velocity is 10. This tells you how fast you're moving raw materials through the factory, turning them into finished products, and moving those products off the shelf to customers. The faster, the better. Service businesses can track velocity, too. For banks, velocity of equity . How much revenue is generated per dollar of equity ….. is a useful measure. The concept applies to every business.
RETURN
Margin multiplied by velocity equals return. If your return is lower than your cost of capital, your business is likely to be in trouble. That's when shareholders get concerned. How do you boost your return? See if you can boost your margin or increase your velocity ……. or, better yet, both.
GROWTH
Every business needs to grow to stay in business. How do you grow in a way that keeps the other aspects of money making in balance? There's no formula …. people with business acumen figure it out.
Where Business Acumen Counts Most
Street vendors in villages around the world use business acumen every day. They have to. Their next meal often depends on it.
In companies, business acumen is crucial when the external world changes and there's a need to reposition the business.
Like when Hollywood studios started selling videocassettes directly to the public at the same time it sold them to video rental companies. That's when Blockbuster's rental business started to slide.
People wanted to buy movies, not just rent them, so Blockbuster started selling them. But the moneymaking was completely different.
Blockbuster was used to buying videocassettes on credit and making payments with the cash from renting them. Returns were high.
Selling videocassettes meant laying out the cash up front, holding lots of inventory, and waiting for the cash to come in when the videocassettes were sold. Cash flow, velocity, and return were all adversely affected.
Where Do You Want to Go?
You don't need business acumen to make a meaningful contribution to a business. But you'll need it to rise through the leadership ranks.
You can't acquire it at a seminar or in a quick read. You learn it by using it in real business situations.
Start now by applying it to your company. Ask for the numbers or pull them from the annual report.
And at the core of every successful business leader is an intuitive understanding of the relationships among them.
It's easy to think the basics of business are for beginners. Everyone knows what cash is, and that companies must make a profit.
But business acumen isn't about knowing definitions. It's about keeping the basics of money making in sharp focus and balancing them in a way that's healthy for the business.
When you have business acumen, you realize the importance of every job at every stage of your career. A mailroom clerk with business acumen knows that getting checks to the accounts receivable department more quickly will ease the company's cash flow. And a sales rep with business acumen knows that higher-margin products will increase the company's return.
Money making Basics
As the complexity of your job increases, it's easy to lose sight of the fundamentals. If your business acumen doesn't develop, you can stumble - focus too much on revenue growth and overlook cash, or focus too much on cash and overlook growth.
That's why you should never consider it beneath you to revisit the money making basics. They should be front and center in your diagnosis and decision making in every job you have.
Here are the basics :
CASH
No business survives long without it. You should know how much cash your business generates and how much cash it consumes.
What are the sources of it ? What drains it ? What's the timing of the inflows and outflows and how is it changing ? More sales often means more cash. But growing a business consumes cash. How fast can the company expand without straining its cash flow ?
MARGIN
When people talk about the bottom line, they generally mean net profit margin. The money the company earns after paying all its expenses, interest, and taxes. But gross margin is important, too. Gross margin is the difference between a product's selling price and what it costs to make the product , expressed as a percent of the selling price which can signal important shifts in a business. When PC makers saw their 32 percent gross margins decline to 20, they knew the competitive landscape had changed. You have to know how changes inside or outside the business affect gross margin. Are there new entrants in the market who are winning customers? A competitor who's found a clever way to reduce costs and prices? A change in the pricing power of suppliers?
VELOCITY
Velocity refers to speed, turnover, or movement. How much revenue do you turn over, or generate, for each dollar of inventory? If you have $1 million in inventory for the year and revenues of $10 million, your inventory velocity is 10. This tells you how fast you're moving raw materials through the factory, turning them into finished products, and moving those products off the shelf to customers. The faster, the better. Service businesses can track velocity, too. For banks, velocity of equity . How much revenue is generated per dollar of equity ….. is a useful measure. The concept applies to every business.
RETURN
Margin multiplied by velocity equals return. If your return is lower than your cost of capital, your business is likely to be in trouble. That's when shareholders get concerned. How do you boost your return? See if you can boost your margin or increase your velocity ……. or, better yet, both.
GROWTH
Every business needs to grow to stay in business. How do you grow in a way that keeps the other aspects of money making in balance? There's no formula …. people with business acumen figure it out.
Where Business Acumen Counts Most
Street vendors in villages around the world use business acumen every day. They have to. Their next meal often depends on it.
In companies, business acumen is crucial when the external world changes and there's a need to reposition the business.
Like when Hollywood studios started selling videocassettes directly to the public at the same time it sold them to video rental companies. That's when Blockbuster's rental business started to slide.
People wanted to buy movies, not just rent them, so Blockbuster started selling them. But the moneymaking was completely different.
Blockbuster was used to buying videocassettes on credit and making payments with the cash from renting them. Returns were high.
Selling videocassettes meant laying out the cash up front, holding lots of inventory, and waiting for the cash to come in when the videocassettes were sold. Cash flow, velocity, and return were all adversely affected.
Where Do You Want to Go?
You don't need business acumen to make a meaningful contribution to a business. But you'll need it to rise through the leadership ranks.
You can't acquire it at a seminar or in a quick read. You learn it by using it in real business situations.
Start now by applying it to your company. Ask for the numbers or pull them from the annual report.
Tuesday, July 10, 2007
TIPS - THINK BIG , SPEND SMALL
START & GROW A SUCCESSFUL COMPANY WITH LIMITED BUDGET
CASE 1
John Vechey, 28, proudly recalls the early penny-pinching days of his Seattle gaming company, PopCap Games, which he co-founded with partners Brian Fiete, 29, and Jason Kapalka, 36, in 2000. After leaving their steady jobs at gaming companies, the trio pooled $100 to purchase business cards, used their own computers and convinced a friend who owned an ISP to give them server space for free. Working first from Fiete's condo, then from Vechey's apartment, they started with a simple business model ….. to make games and license them to websites.
Then the ad market crashed, rendering their model insufficient and teaching the partners the first lesson of bootstrap entrepreneurs …… flexibility. In 2001, based on feedback on their first game, Bejeweled, they created an enhanced, downloadable version. Instead of charging sites like Yahoo to host their games, they offer the web versions for free in exchange for having the sites direct people to PopCap's site to download full versions of the games. "At first, we were making $5,000 to $10,000 per month. Then it was $30,000 to $100,000," Vechey recalls.
Vechey and his team raked in more than $10 million in 2005, and they now have 13,000 square feet of office space in downtown Seattle, a studio in San Francisco and a satellite office in Dublin, Ireland. They employ 118 people and have more than 30 different games.
CASE 2
After selling her first company in 2000, Amy James, the former teacher negotiated the right to retain a database of state learning standards that she had spent two years typing into a Microsoft Access file. In 2001, James decided to take advantage of that year's No Child Left Behind Act and put her database to work. "I made a flier saying I could align curriculum with learning standards and faxed it to publishers," she says. "Scholastic called immediately. Then LeapFrog. Then others."
For the cost of office supplies--about $100--James was in business, launching SixThings from her New York City apartment. She made $30,000 her first year, consulting with publishers, reviewing educational programs and curricula, and writing reports analyzing how these measured up to state and federal learning and testing requirements. James ramped up significantly in her second year, hiring two curriculum development employees and one computer programmer. In addition to analysis, the company now sells electronic databases of learning and testing requirements and licenses software that provides compliance reporting along state and federal guidelines.
But James was struggling to pay her rent and knew something had to give. Her mother was a retired teacher back in her hometown near Oklahoma City, and James could tap her mom's friends as workers. So she moved into the same apartment complex as her mother.
"It just made sense," says James, 40. "My mom's friends were starting to retire. My dad was a principal. They were all on state benefits and had a great work ethic." With her mother as her first Oklahoma employee and her father as a sounding board, she began to rebuild her business.
James used open source software and worked from home for the first three years of business, finally moving into a 6,000-square-foot Oklahoma City office space in 2004. She furnished that space, including the refrigerator, she says proudly, for a mere $1,900 by visiting vacated offices and offering cash for the abandoned furniture. She continues to pinch pennies, even after bringing in sales of more than $2.1 million last year. Of her 20 full-time and 43 part-time employees, the vast majority are her parents' retired friends. She has also re-established an office in New York City.
CASE 3
Ajay Goel, 29, was living with his parents in 2000 when he created the first version of JangoMail as a side project for a client who needed a web-based e-mail marketing solution. Because he had a computer and no overhead, Goel was able to fine-tune the product, then take it to market. JangoMail, with its web-based e-mail broadcasting and marketing system that allows companies to create, send and track e-mail campaigns, projects sales of $5 million for 2007. While the four-person company works virtually, Goel invested in 900 square feet of office space in Dayton, Ohio, to give the company a home base and employees a place to work when they come to town.
JangoMail has grown mostly through referrals, networking and search engine advertising, landing clients like the American Cancer Society and Nokia. Instead of expanding through additional products or line extensions, JangoMail remains the company's sole offering, available through its website. Goel is constantly tinkering and adding features. "I wanted to operate with a salesperson-less model," he says. "We are there if [customers] need us, but they can buy the product on their own."
CASE 4
A little help from friends allowed Maureen and Jeff Kendall to launch their San Jose, California, T-shirt company, Little Ruler, with about $1,000 for their first run of 100 T-shirts. Jeff, 39, was a well-known figure in the skateboarding world when the couple had their first son, Cole, in 2001. They received tiny T-shirts individually screened with skateboard industry logos as gifts. Seeing people's reactions to the shirts inspired them to launch their own line of children's clothing featuring logos licensed from hot skateboard companies. As word got out about their idea, friends offered to help design the T-shirts and their website for free, saving the couple big bucks on some basic startup needs.
CASE 1
John Vechey, 28, proudly recalls the early penny-pinching days of his Seattle gaming company, PopCap Games, which he co-founded with partners Brian Fiete, 29, and Jason Kapalka, 36, in 2000. After leaving their steady jobs at gaming companies, the trio pooled $100 to purchase business cards, used their own computers and convinced a friend who owned an ISP to give them server space for free. Working first from Fiete's condo, then from Vechey's apartment, they started with a simple business model ….. to make games and license them to websites.
Then the ad market crashed, rendering their model insufficient and teaching the partners the first lesson of bootstrap entrepreneurs …… flexibility. In 2001, based on feedback on their first game, Bejeweled, they created an enhanced, downloadable version. Instead of charging sites like Yahoo to host their games, they offer the web versions for free in exchange for having the sites direct people to PopCap's site to download full versions of the games. "At first, we were making $5,000 to $10,000 per month. Then it was $30,000 to $100,000," Vechey recalls.
Vechey and his team raked in more than $10 million in 2005, and they now have 13,000 square feet of office space in downtown Seattle, a studio in San Francisco and a satellite office in Dublin, Ireland. They employ 118 people and have more than 30 different games.
CASE 2
After selling her first company in 2000, Amy James, the former teacher negotiated the right to retain a database of state learning standards that she had spent two years typing into a Microsoft Access file. In 2001, James decided to take advantage of that year's No Child Left Behind Act and put her database to work. "I made a flier saying I could align curriculum with learning standards and faxed it to publishers," she says. "Scholastic called immediately. Then LeapFrog. Then others."
For the cost of office supplies--about $100--James was in business, launching SixThings from her New York City apartment. She made $30,000 her first year, consulting with publishers, reviewing educational programs and curricula, and writing reports analyzing how these measured up to state and federal learning and testing requirements. James ramped up significantly in her second year, hiring two curriculum development employees and one computer programmer. In addition to analysis, the company now sells electronic databases of learning and testing requirements and licenses software that provides compliance reporting along state and federal guidelines.
But James was struggling to pay her rent and knew something had to give. Her mother was a retired teacher back in her hometown near Oklahoma City, and James could tap her mom's friends as workers. So she moved into the same apartment complex as her mother.
"It just made sense," says James, 40. "My mom's friends were starting to retire. My dad was a principal. They were all on state benefits and had a great work ethic." With her mother as her first Oklahoma employee and her father as a sounding board, she began to rebuild her business.
James used open source software and worked from home for the first three years of business, finally moving into a 6,000-square-foot Oklahoma City office space in 2004. She furnished that space, including the refrigerator, she says proudly, for a mere $1,900 by visiting vacated offices and offering cash for the abandoned furniture. She continues to pinch pennies, even after bringing in sales of more than $2.1 million last year. Of her 20 full-time and 43 part-time employees, the vast majority are her parents' retired friends. She has also re-established an office in New York City.
CASE 3
Ajay Goel, 29, was living with his parents in 2000 when he created the first version of JangoMail as a side project for a client who needed a web-based e-mail marketing solution. Because he had a computer and no overhead, Goel was able to fine-tune the product, then take it to market. JangoMail, with its web-based e-mail broadcasting and marketing system that allows companies to create, send and track e-mail campaigns, projects sales of $5 million for 2007. While the four-person company works virtually, Goel invested in 900 square feet of office space in Dayton, Ohio, to give the company a home base and employees a place to work when they come to town.
JangoMail has grown mostly through referrals, networking and search engine advertising, landing clients like the American Cancer Society and Nokia. Instead of expanding through additional products or line extensions, JangoMail remains the company's sole offering, available through its website. Goel is constantly tinkering and adding features. "I wanted to operate with a salesperson-less model," he says. "We are there if [customers] need us, but they can buy the product on their own."
CASE 4
A little help from friends allowed Maureen and Jeff Kendall to launch their San Jose, California, T-shirt company, Little Ruler, with about $1,000 for their first run of 100 T-shirts. Jeff, 39, was a well-known figure in the skateboarding world when the couple had their first son, Cole, in 2001. They received tiny T-shirts individually screened with skateboard industry logos as gifts. Seeing people's reactions to the shirts inspired them to launch their own line of children's clothing featuring logos licensed from hot skateboard companies. As word got out about their idea, friends offered to help design the T-shirts and their website for free, saving the couple big bucks on some basic startup needs.
Friday, July 6, 2007
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* Do you want to end your money worries ?
* Do you want to add an extra income from now to the future?
If your answer is yes, then let me show you how you can begin LIVING YOUR DREAMS THIS YEAR. I shall get straight to the point.
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I am starting to get excited about the potential of this cash88.com business and trying to have a team of committed people who are serious about their financial future. If you are interested to know or join our cash 88.com business venture, CLICK BELOW …..
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Sunday, July 1, 2007
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