Please see the folowing link to a Wall Street Journal article to find out the true secret to success for inventors: Jim Winner. The first six words and the last ten of the article say it all!
Friday, September 17, 2010
Friday, July 09, 2010
Strategic Target Acquisition
One of the most difficult concepts for a tech entrepreneur to grasp is that of targeted marketing. The need to focus on a narrow market, especially during product launch and throughout the first year, is a matter of life and death for your business.
Who specifically is your market; what exactly are they seeking and why; where do they “live,”; what makes them feel important in their personal/professional lives; how do they feel about your technology; what organizations do they belong to and why; what magazines or other media do they relate with and why; which blogs do they read and why; how would each of them like for you to market to them and why; how much will it cost for you to do that; for how long will you have to do this marketing until you reach break-even; what are the response rates for advertising through the media that they prefer; how much are they willing to pay for your product; and on and on and on…
All of these questions must be answered in order to develop an effective strategic marketing campaign. Then you must carry out that campaign. It is nearly impossible to do this for multiple or broad audiences with your limited start-up resources, and especially considering the fact that there will be an unusually high level of personnel and product-related issues to deal with in the first year. You must bite into what you can chew.
Here is an analogy:
Several cave men are about to go hunting with clubs. Their goal is to eat. In a field are rabbits, deer, moose, and wooly mammoths. Which would you suggest that they target? How would you suggest that they do so?
In a different scenario, several modern hunters are hunting with elephant-guns. In a field are the same prey. Which would you suggest that they target? How would you suggest that they do so?
The answer to the question of what prey to hunt is very different depending on the tools that you have at your disposal. You need to look at the tools that you have at your disposal and then decide whom to target in your marketing (hunt). Because you are not a corporate behemoth, the target market must be quite narrowly defined. The key here is not your product or even what you want to do, but what you are capable of properly marketing. Pick a focused market, understand it fully, and then hit it hard.
As your resources grow, your target markets can be expanded.
Who specifically is your market; what exactly are they seeking and why; where do they “live,”; what makes them feel important in their personal/professional lives; how do they feel about your technology; what organizations do they belong to and why; what magazines or other media do they relate with and why; which blogs do they read and why; how would each of them like for you to market to them and why; how much will it cost for you to do that; for how long will you have to do this marketing until you reach break-even; what are the response rates for advertising through the media that they prefer; how much are they willing to pay for your product; and on and on and on…
All of these questions must be answered in order to develop an effective strategic marketing campaign. Then you must carry out that campaign. It is nearly impossible to do this for multiple or broad audiences with your limited start-up resources, and especially considering the fact that there will be an unusually high level of personnel and product-related issues to deal with in the first year. You must bite into what you can chew.
Here is an analogy:
Several cave men are about to go hunting with clubs. Their goal is to eat. In a field are rabbits, deer, moose, and wooly mammoths. Which would you suggest that they target? How would you suggest that they do so?
In a different scenario, several modern hunters are hunting with elephant-guns. In a field are the same prey. Which would you suggest that they target? How would you suggest that they do so?
The answer to the question of what prey to hunt is very different depending on the tools that you have at your disposal. You need to look at the tools that you have at your disposal and then decide whom to target in your marketing (hunt). Because you are not a corporate behemoth, the target market must be quite narrowly defined. The key here is not your product or even what you want to do, but what you are capable of properly marketing. Pick a focused market, understand it fully, and then hit it hard.
As your resources grow, your target markets can be expanded.
Thursday, April 22, 2010
Funds to Fight Imports
If your business has been negatively impacted by cheap imports or cheap foreign labor, there is a program that may be able to assist you in learning how you can adapt to the new market conditions.
The Trade Adjustment Assistance Center provides up to $75,000 to manufacturing and service companies that have been impacted by imports. The money is matched dollar-for-dollar to what your company expends (maximum project is $150,000). The money is used to hire third-party consultants who provide marketing, IT, budgeting, analysis, and efficiency-improvement project advice. To be eligible, a company must have had a drop of 5% or more in sales or employees due to foreign competition.
This project is funded by the U.S. Dept. of Commerce. See MATAAC for more information.
The Trade Adjustment Assistance Center provides up to $75,000 to manufacturing and service companies that have been impacted by imports. The money is matched dollar-for-dollar to what your company expends (maximum project is $150,000). The money is used to hire third-party consultants who provide marketing, IT, budgeting, analysis, and efficiency-improvement project advice. To be eligible, a company must have had a drop of 5% or more in sales or employees due to foreign competition.
This project is funded by the U.S. Dept. of Commerce. See MATAAC for more information.
Wednesday, April 14, 2010
Obamacare and You!
Please see the announcement copied below regarding an opportunity to learn about how the new health care laws will impact your small business.
Main Street Alliance Phone Briefing for Small Business Owners
Health Care Reform: What it Means for Small Businesses
Wednesday, April 21 - 4pm ET // 1pm PT
Click Here to RSVP
Main Street Alliance Supporters:
We're writing to invite you to a special phone briefing on health care reform and what it means for small businesses on Wednesday, April 21 at 4pm ET // 1pm PT.
Now that health care reform has passed, many small business owners have questions about what it will mean for them and their businesses. As a small business owner, you might be wondering:
• Will reform stem the off-the-charts rate increases we've received in recent years?
• Will my business qualify for the new tax credits? If so, what will my credit be?
• How will the new health insurance exchanges help small businesses?
• What about the shared responsibility requirement?
• What if I'm self-employed, what will reform mean for me and my family?
If you're wondering about these or other questions, or just looking for information to share with other business owners about what's in health care reform for them, please join us!
Main Street Alliance Phone Briefing for Small Business Owners
Health Care Reform: What it Means for Small Businesses
Wednesday, April 21 - 4pm ET // 1pm PT
Click Here to RSVP
If you're interested in participating but can't make this time, send an email to info@mainstreetalliance.org; if there's enough interest, we'll schedule a repeat briefing in the following week.
Thanks,
Sam Blair
National Network Director
The Main Street Alliance
Main Street Alliance Phone Briefing for Small Business Owners
Health Care Reform: What it Means for Small Businesses
Wednesday, April 21 - 4pm ET // 1pm PT
Click Here to RSVP
Main Street Alliance Supporters:
We're writing to invite you to a special phone briefing on health care reform and what it means for small businesses on Wednesday, April 21 at 4pm ET // 1pm PT.
Now that health care reform has passed, many small business owners have questions about what it will mean for them and their businesses. As a small business owner, you might be wondering:
• Will reform stem the off-the-charts rate increases we've received in recent years?
• Will my business qualify for the new tax credits? If so, what will my credit be?
• How will the new health insurance exchanges help small businesses?
• What about the shared responsibility requirement?
• What if I'm self-employed, what will reform mean for me and my family?
If you're wondering about these or other questions, or just looking for information to share with other business owners about what's in health care reform for them, please join us!
Main Street Alliance Phone Briefing for Small Business Owners
Health Care Reform: What it Means for Small Businesses
Wednesday, April 21 - 4pm ET // 1pm PT
Click Here to RSVP
If you're interested in participating but can't make this time, send an email to info@mainstreetalliance.org; if there's enough interest, we'll schedule a repeat briefing in the following week.
Thanks,
Sam Blair
National Network Director
The Main Street Alliance
Tuesday, March 30, 2010
Investments Terminology
The terminology of investments and investors can be confusing to entrepreneurs new to this game, but are very important to understand. Fortunately, there are a number of Websites that have resources available to help you understand the jargon. A few of these are: InvestorWords.com, Dartmouth Tuck School of Business, and AltAssets.com.
Monday, March 01, 2010
Supercharge Your Website Conversion
Anyone who intends to transact business via a Website or via email should sign up to receive free research reports from MarketingExperiments.com. This organization conducts thousands of experiments to test which strategies boost business and then publishes its results in research reports.
The best research report I have ever seen from them (or anyone else, for that matter) is Clarity Trumps Persuasion.
This is a "Must Read" for anyone with a Website!
The best research report I have ever seen from them (or anyone else, for that matter) is Clarity Trumps Persuasion.
This is a "Must Read" for anyone with a Website!
Monday, February 15, 2010
They Just Don't Get It
Many inventors become frustrated when nobody seems to see the value in what they have developed or they get frustrated when the product just does not sell as well as the inventor knows it should.
Believe it or not, this was the case with Fred Morrison, inventor of one of the most popular childrens' and adults' toys of all time (and among dogs too). That toy of course is the... Frisbee.
Mr. Morrison, who unfortunately passed away last week at the age of 90, had gone around demonstrating his "Pluto Platter" at department stores and county fairs, with little success. Eventually he became so frustrated with lack of sales that he decided to license the idea to someone else. That someone was the little-known Wham-O company. Morrison's invention has since put Wham-O on the map and spawned the sports of Ultimate and Folf. There is even now a World Flying Disc Federation.
Quite a turnout for a product that initially would not sell.
Believe it or not, this was the case with Fred Morrison, inventor of one of the most popular childrens' and adults' toys of all time (and among dogs too). That toy of course is the... Frisbee.
Mr. Morrison, who unfortunately passed away last week at the age of 90, had gone around demonstrating his "Pluto Platter" at department stores and county fairs, with little success. Eventually he became so frustrated with lack of sales that he decided to license the idea to someone else. That someone was the little-known Wham-O company. Morrison's invention has since put Wham-O on the map and spawned the sports of Ultimate and Folf. There is even now a World Flying Disc Federation.
Quite a turnout for a product that initially would not sell.
Friday, February 12, 2010
Major Company Seeks New Technologies
Companies in the medical products and consumer packaged goods businesses have historically tended to shun product or technology ideas submitted from outside their own firms' R&D departments. Proctor and Gamble has been a notable example of this, for instance.
However, there is one such company that actively solicits new technologies and ideas. This is Reckitt Benckiser Group PLC, maker of Lysol, Clearasil, and Airwick products, among others. The company has a Website, Idealink, specifically for soliciting such ideas.
Below is a sampling of technologies the company is currently seeking:
Technology to control the release of pharmaceutical actives at various human physiological sites.
Novel, low cost delivery systems capable of conveniently distributing liquids into air and/or onto vertical or horizontal surfaces (targeted or large area).
Approaches to significantly improve the removal of grease and oil from substrates, delivered in a dilute aqueous environment.
Technologies to promote rapid dissolution of tableted materials in aqueous or human physiological environments and/or improve subsequent active absorption/action.
Technologies to enable active materials to target specific loci in dilute aqueous or human physiological conditions, facilitating direct action at that site.
Technologies to significantly reduce the carbon footprint of household cleaning, antimicrobial, personal care and OTC healthcare products :
•Formulation
•Processing
•Packaging
Technologies or approaches to modify, prevent or control microbial growth on hard, soft and biological surfaces via non-conventional (i.e. non biocidal) means.
Technologies to help protect the body from “attack” by a range of noxious/damaging species, materials and environments.
New developments in the area of surfactants and detergents.
Technologies to treat skin and/or promote healthy skin via control of pathogenic species or restoration of the skins natural defences.
Enzyme systems with increased stability and efficacy at low and high temperatures.
It is probably worth taking a look to see if there are any opportunities for you or someone you may know. The company also allows submission on unsolicited technology ideas.
However, there is one such company that actively solicits new technologies and ideas. This is Reckitt Benckiser Group PLC, maker of Lysol, Clearasil, and Airwick products, among others. The company has a Website, Idealink, specifically for soliciting such ideas.
Below is a sampling of technologies the company is currently seeking:
Technology to control the release of pharmaceutical actives at various human physiological sites.
Novel, low cost delivery systems capable of conveniently distributing liquids into air and/or onto vertical or horizontal surfaces (targeted or large area).
Approaches to significantly improve the removal of grease and oil from substrates, delivered in a dilute aqueous environment.
Technologies to promote rapid dissolution of tableted materials in aqueous or human physiological environments and/or improve subsequent active absorption/action.
Technologies to enable active materials to target specific loci in dilute aqueous or human physiological conditions, facilitating direct action at that site.
Technologies to significantly reduce the carbon footprint of household cleaning, antimicrobial, personal care and OTC healthcare products :
•Formulation
•Processing
•Packaging
Technologies or approaches to modify, prevent or control microbial growth on hard, soft and biological surfaces via non-conventional (i.e. non biocidal) means.
Technologies to help protect the body from “attack” by a range of noxious/damaging species, materials and environments.
New developments in the area of surfactants and detergents.
Technologies to treat skin and/or promote healthy skin via control of pathogenic species or restoration of the skins natural defences.
Enzyme systems with increased stability and efficacy at low and high temperatures.
It is probably worth taking a look to see if there are any opportunities for you or someone you may know. The company also allows submission on unsolicited technology ideas.
Thursday, January 28, 2010
Angel Venture Fair Opportunity
I received notice today that the next Angel Venture Fair will be held in April and the application deadline is February 2, 2010. Although this is short notice, I would encourage anyone who is seeking capital to apply. Please let me know if you require assistance. Please see more information at Angel Venture Fair
Monday, January 25, 2010
Ben Franklin Energy Idea Contest
BFTP has announced a new funding contest for energy-related businesses. Please see the announcement below. FYI, I have been informed that BFTP will not conduct its annual Big Idea business plan contest this year due to funding cuts. The Big Idea contest was open to a wider range of technologies than this present contest.
Please let me know if you are interested in applying. Please also pass this information along to anyone that you feel would be eligible and interested:
Ben Franklin Technology Partners and PennTAP Announce the $35,000 NEW Energy Idea Contest
State College, PA – The Pennsylvania Technical Assistance Program (PennTAP) and Ben Franklin Technology Partners of Central and Northern PA (BFTP/CNP) announce their sponsorship of the “NEW Energy Idea Contest.” The grand prize of $35,000 will be awarded to either an entrepreneur or one early-stage, pre-revenue company in the process of developing a new energy or alternative energy related product/process improvement.
Prize money for the contest is being provided by Ben Franklin as well as PennTAP utilizing a donation made by the United States Department of Energy (DOE) and the Pennsylvania Department of Environmental Protection (DEP).
Interested entrepreneurs can visit http://newenergyplan.benfranklin.org for rules, entry forms, and FAQs. The deadline for applications is April 15, 2010.
To qualify, contestants must have a viable, new energy/alternative energy-related product or process improvement idea and cannot have received BFTP funding in the past. Additionally, applicants must be located in any one of the 32 counties in the Central and Northern Pennsylvania region. These include: Adams, Bedford, Blair, Cambria, Cameron, Centre, Clarion, Clearfield, Clinton, Crawford, Cumberland, Dauphin, Elk, Erie, Forest, Franklin, Fulton, Huntingdon, Indiana, Jefferson, Juniata, Lancaster, Lebanon, McKean, Mercer, Mifflin, Perry, Potter, Somerset, Venango, Warren and York.
“Saving energy and alternative energy is on everyone’s mind,” remarked Stephen Brawley, President/CEO of Ben Franklin. “Improvements to existing technologies, new hardware or software products that increase efficiency, new battery or fuel cell applications, engine and turbine technologies, and agricultural based alternatives are all examples of the kinds of proposals we’re hoping to get from this competition. Ben Franklin is very proud to partner with the PennTAP program, as the technical assistance they provide their clients in energy related initiatives makes a huge contribution in the state.”
Heidi F. Sullivan
Proposal Coordinator
Ben Franklin Technology PArtners
5340 Fryling Road
Erie, PA 16510
Telephone: (814) 898-6650
Please let me know if you are interested in applying. Please also pass this information along to anyone that you feel would be eligible and interested:
Ben Franklin Technology Partners and PennTAP Announce the $35,000 NEW Energy Idea Contest
State College, PA – The Pennsylvania Technical Assistance Program (PennTAP) and Ben Franklin Technology Partners of Central and Northern PA (BFTP/CNP) announce their sponsorship of the “NEW Energy Idea Contest.” The grand prize of $35,000 will be awarded to either an entrepreneur or one early-stage, pre-revenue company in the process of developing a new energy or alternative energy related product/process improvement.
Prize money for the contest is being provided by Ben Franklin as well as PennTAP utilizing a donation made by the United States Department of Energy (DOE) and the Pennsylvania Department of Environmental Protection (DEP).
Interested entrepreneurs can visit http://newenergyplan.benfranklin.org for rules, entry forms, and FAQs. The deadline for applications is April 15, 2010.
To qualify, contestants must have a viable, new energy/alternative energy-related product or process improvement idea and cannot have received BFTP funding in the past. Additionally, applicants must be located in any one of the 32 counties in the Central and Northern Pennsylvania region. These include: Adams, Bedford, Blair, Cambria, Cameron, Centre, Clarion, Clearfield, Clinton, Crawford, Cumberland, Dauphin, Elk, Erie, Forest, Franklin, Fulton, Huntingdon, Indiana, Jefferson, Juniata, Lancaster, Lebanon, McKean, Mercer, Mifflin, Perry, Potter, Somerset, Venango, Warren and York.
“Saving energy and alternative energy is on everyone’s mind,” remarked Stephen Brawley, President/CEO of Ben Franklin. “Improvements to existing technologies, new hardware or software products that increase efficiency, new battery or fuel cell applications, engine and turbine technologies, and agricultural based alternatives are all examples of the kinds of proposals we’re hoping to get from this competition. Ben Franklin is very proud to partner with the PennTAP program, as the technical assistance they provide their clients in energy related initiatives makes a huge contribution in the state.”
Heidi F. Sullivan
Proposal Coordinator
Ben Franklin Technology PArtners
5340 Fryling Road
Erie, PA 16510
Telephone: (814) 898-6650
Wednesday, January 13, 2010
Bringing in Investors and Losing Control
Nearly every entrepreneur I have worked with is highly and irrationally concerned about losing control of their company if they bring in investors. They have heard horror rumors about entrepreneurs being left out in the cold by greedy VCs. I used the term "horror rumors" instead of "horror stories" because the latter term would imply that there is even a wisp of truth behind them, which there is not.
You heard that right: There is absolutely no truth to the rumor that effective entrepreneurs get pushed out by investors.
To prove this point, here is a challenge I throw down to all readers of my blog:
Name one instance of a tech company that reached national prominence through VC investment and in which the original entrepreneur was pushed out by the time the company "hit the big time."
To help you out, I will list a few of the cases in which the original entrepreneur(s) did remain at the helm (CEO, President, Chairman, etc.) as the company grew monstrous, went public, etc. These are the biggest names in entrepreneurial business success, some of them going back 50 years. VCs were involved in most, but not all of those listed below, although massive outside investment was involved. I have included a range of types of companies for your reading pleasure.
Microsoft (Bill Gates), Oracle (Larry Ellison), Google (Sergey Brin), Twitter (Jack Dorsey), Wal-Mart (Sam Walton), Facebook (Mark Zuckerberg), Dell (Michael Dell), YouTube (Chad Hurley), MySpace (Tom Anderson), Starbucks (Howard Schultz), Nike (Philip Knight), Digital Equipment Corporation (Ken Olsen), Best Buy (Howard Schulze), Apple (Steve Jobs), Amazon.com (Jeff Bezos), McDonalds (Ray Kroc), Cisco Systems (Len Bosack), Intel (Andy Groves), Research in Motion [Blackberry] (Mike Lazaridis), Wikipedia (Jerry Wales), Outback Steakhouse (Chris Sullivan), Turner Broadcasting System (Ted Turner), Sun Microsystems (Scott McNealy), Netscape (Marc Andreessen), Silicon Graphics (Jim Clark), FedEx (Fred Smith)Yahoo (Jerry Yang).
Note that in the last case Jerry Yang was forced out more than a decade after the company hit the big time, but the CEO position is never a lifetime guarantee at any major company.
So what are you afraid of? Go out and get the money!
You heard that right: There is absolutely no truth to the rumor that effective entrepreneurs get pushed out by investors.
To prove this point, here is a challenge I throw down to all readers of my blog:
Name one instance of a tech company that reached national prominence through VC investment and in which the original entrepreneur was pushed out by the time the company "hit the big time."
To help you out, I will list a few of the cases in which the original entrepreneur(s) did remain at the helm (CEO, President, Chairman, etc.) as the company grew monstrous, went public, etc. These are the biggest names in entrepreneurial business success, some of them going back 50 years. VCs were involved in most, but not all of those listed below, although massive outside investment was involved. I have included a range of types of companies for your reading pleasure.
Microsoft (Bill Gates), Oracle (Larry Ellison), Google (Sergey Brin), Twitter (Jack Dorsey), Wal-Mart (Sam Walton), Facebook (Mark Zuckerberg), Dell (Michael Dell), YouTube (Chad Hurley), MySpace (Tom Anderson), Starbucks (Howard Schultz), Nike (Philip Knight), Digital Equipment Corporation (Ken Olsen), Best Buy (Howard Schulze), Apple (Steve Jobs), Amazon.com (Jeff Bezos), McDonalds (Ray Kroc), Cisco Systems (Len Bosack), Intel (Andy Groves), Research in Motion [Blackberry] (Mike Lazaridis), Wikipedia (Jerry Wales), Outback Steakhouse (Chris Sullivan), Turner Broadcasting System (Ted Turner), Sun Microsystems (Scott McNealy), Netscape (Marc Andreessen), Silicon Graphics (Jim Clark), FedEx (Fred Smith)Yahoo (Jerry Yang).
Note that in the last case Jerry Yang was forced out more than a decade after the company hit the big time, but the CEO position is never a lifetime guarantee at any major company.
So what are you afraid of? Go out and get the money!
Hiring a CEO Part 2: Who to Look For?
I have consistently seen that an absolute requirement for a startup CEO to be effective is to posess and deploy high-level sales skills. If the original entrepreneur is the CEO and does not have effective sales skills, then he or she must at a minimum perform the sales function of recruiting someone who does have these skills. Usually the entrepreneur will need to convince that person to come aboard for little or no salary.
Sales skills are required long before an entrepreneur is ready to sell his or her product. Primarily, I am referring to the application of those skills in the task of raising capital. Make no mistake about it: Raising capital is a sales function. And a highly complex one at that.
The personality traits required as the bedrock for effective sales skills are:
1) self-confidence
2) an outgoing personality
3) an energetic drive to accomplish goals
In seminars I have often told groups of aspiring entrepreneurs about the above requirements. Then I tell them this: "If you do not posess this personality then go out and get it." I mean this literally. Either change your personality or hire someone with this personality. Either option is feasible with enough willpower.
There are numerous books and courses on the topic of self-confidence, people skills, etc. and they really do work of one really wants them to. One well-known example is the Dale Carnegie books and courses. If necessary, this would be time and money well-spent. The answer to the question asked in the title of this post: "Hiring a CEO, Who to Look For?" may be YOU.
Sales skills are required long before an entrepreneur is ready to sell his or her product. Primarily, I am referring to the application of those skills in the task of raising capital. Make no mistake about it: Raising capital is a sales function. And a highly complex one at that.
The personality traits required as the bedrock for effective sales skills are:
1) self-confidence
2) an outgoing personality
3) an energetic drive to accomplish goals
In seminars I have often told groups of aspiring entrepreneurs about the above requirements. Then I tell them this: "If you do not posess this personality then go out and get it." I mean this literally. Either change your personality or hire someone with this personality. Either option is feasible with enough willpower.
There are numerous books and courses on the topic of self-confidence, people skills, etc. and they really do work of one really wants them to. One well-known example is the Dale Carnegie books and courses. If necessary, this would be time and money well-spent. The answer to the question asked in the title of this post: "Hiring a CEO, Who to Look For?" may be YOU.
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