Month: July 2007

Categories
Starting Up

Business Take Flight

cuttingribbon.jpg
Businessweek: Your public launch of a product or service should be designed to raise the profile of your company. Think of it as a marketing event—a kickoff party of sorts. What you need for a launch is a compelling product or service, plus a handful of early customers providing gushing testimonials.
Don’t spend money on a flashy launch party when you have no accomplishments to show off. Spend your marketing budget on making the press and blogging community aware of your product and the companies that are using it, as well as the problems your product is solving and the specific benefits that have resulted from its use.
You should prepare for your launch by answering the following four questions. Which companies are using your product/service? What specific problems are being solved? What associated “pain” is your product/service removing? What have the tangible and quantifiable benefits been to your clients?
Preparing for a Successful Launch [Businessweek]

Categories
Home-Based Business

Home Biz Myths Debunked

home-biz-myth.jpgPowerHomeBiz: Be careful of myths and misconceptions about home business management presented as gospel truth! Many of these myths are as widely held as they are wrong.
Many entrepreneurs, when they start out, are so full of confidence and positive energy that no problems can stand in the way. However, in the course of starting, running and selling small businesses, it is somehow inevitable that mistakes will be made.
Minimize your mistakes by looking at the knowing myths and misconceptions with healthy skepticism about home business management presented as gospel truth.
Myth 1: A home-based business has no overhead costs.
Myth 2: I will not need childcare if l work from home.
Myth 3: If I have a home business, I will have time to clean house, continue to volunteer at church and school, cook delectable meals, taxi the kids to all their activities, and have a meaningful, personal relationship with a “significant other.”
Myth 4: I have a great idea that I know will make me lots of money, and I hope to start it next week.
Myth 5: If I work from home, I can be much more casual in both how I dress and how I treat my customers.
The Truths about Home-Based Businesses [PowerHomeBiz]

Categories
Branding

Differentiation Strategy

starbucks.jpgBusinessWeek: Just because there is no one selling a particular product or service doesn’t mean it’s automatically a good idea to try. Conversely, a competitively crowded industry shows that demand exists, as well as a viable market. The key to business success isn’t finding an empty field, but defining your company narrowly—no matter how crowded a marketplace you’re entering.
There are many ways you can differentiate your company, says Reid Carr, president of Red Door Interactive, a small Web development firm based in San Diego. “You can choose to sell to different people, such as small businesses; you can find new distribution channels; you can stratify the industry’s price points by introducing a luxury class; or, you can redefine your selling proposition,” he says, noting how Starbucks (SBUX) revolutionized the coffee shop by selling an experience rather than just a beverage.
However you choose to be different, you must be great at the basics and exceptional at your defining factor, Carr says. “The key here is to know who you are and who you are not.” Another way to get a toehold in a mature market is to watch for change or stagnation in that industry and capitalize on it. “Even in highly competitive industries—perhaps even more so than in noncompetitive markets—there are external and internal market forces that will create change in the dynamics,” says Eric Basu, president and CEO of technology firm Sentek Consulting in Mission Hills, Calif. “Successful companies and entrepreneurs aspiring to enter a competitive market will observe the winds of change and seize opportunities arising from changes. A successful entrepreneur will often have prepared for entry into the industry by securing capital, establishing connections, possibly occupying a sentry position, and otherwise laying the groundwork for opportunity.”
Starting a Business in a Crowded Market [BusinessWeek]

Categories
Franchise

New Franchise World

new-franchise-world.jpg
StartupJournal: Bob McQuillan runs a tight ship at his Hollywood Tans franchise in Arlington, Va. He knows precisely when workers clock in and out, who each of his daily customers are and which employees are selling what products, at regular price, or discount. But there’s a twist: He’s doing all this micromanaging from home — 133 miles away in Mullica Hill, N.J.
“We monitor the business remotely via the Internet,” says Mr. McQuillan, who co-owns the store with his wife and another business partner.
While a manager handles the tanning salon’s day-to-day affairs, he pulls up data from afar by computer. A fingerprint scanner monitors workers’ arrivals and departures, while intricate software tallies sales data and pricing, almost in real time. “I’m down there once every three months,” he says.
The franchising world is letting loose. Gone are the days of one owner being chained behind the counter of a single store day in, day out. Today, there are absentee owners who oversee their operations from laptops and Treos, and owners who maintain dual careers or run multiple franchises. At Hollywood Tanning Systems Inc., more than half of the 330 franchise owners have another job. The chief executive of Sport Clips Inc. hair salons estimates that 10 hours a week is a “generous allowance” for owners to physically be in stores. And franchisees for the Decor&You Inc. interior-design business can receive decorating and product training at home whenever they like via online video seminars.
Why Running a Franchise Is Easier Than Ever [StartupJournal]

Categories
Entrepreneurship

Understanding Opportunity Cost

decisions.jpgThe Closet Entrepreneur: Identical twins Amal and Juan graduate with Bachelors degrees and receive the same job offer. Amal passes up the job offer to pursue a Masters degree while Juan takes the job offer and begins working. Two years pass and Amal graduates and begins working. By this time Juan has been promoted to a position that is comparable to Amal’s starting position, and Juan’s salary has increased to an amount that is comparable to Amal’s starting salary. So who made the better decision, Amal or Juan?
While the example of Amal and Juan is situational, opportunity costs definitely apply in the real world. Opportunity costs especially come into play when time is of the essence like starting a business, fixing and flipping an investment property, selling your home, et cetera.
In some cases, saving money by doing things yourself can be beneficial. Yet the benefit of saving money has to be weighed against the benefit of getting things done quickly and correctly by a professional. For example, anyone can learn how to build a website or remodel an investment property on their own, yet if doing so comes at a cost of several months of lost revenue or rent, then is it really worth it?
Opportunity costs even come into play in the pursuit of happiness. Which would you rather choose, lifelong happiness or a life of misery living out someone else’s dream?
Understanding Opportunity Costs = Better Decisions [The Closet Entrepreneur]