Archive for April 2005
Hiring and Getting a Job is Obsolete
Paul Graham: Most CS undergrads hope to get a good job when they graduate. But as the age of startup founders creeps downward, I foresee an alternative path for the most ambitious: instead of going to work for Microsoft, start a startup and make Microsoft buy it to get you. This change will do more [...]
Entrepreneurship: Thinking And Doing
David Bayless: “To recall a quote I posted a week or so ago, ‘A thought which does not result in an action is nothing much, and an action which does not proceed from a thought is nothing at all.’ Flawless execution of a vacuous idea yields little; pathetic execution of a dramatically different idea yields [...]
Franchising: Buying Your Way Into Business
Ron Ameln: Johnson purchased a Breadsmith franchise in 1998. Breadsmith is an upscale bakery chain specializing in crusty, European-style artisan breads baked fresh each day using all-natural ingredients. The business, located in Warson Woods, services retail and commercial clients with a variety of baked goods, including soft-crusted and specialty breads, cookies, muffins and sweets. “Buying [...]
7 Biggest Mistakes Of Business Startups
Excellent article on the Microsoft Small Business Center about some all to easy to make mistakes that can kill a new entrepreneur’s startup: Mistake 1: Driving a fire engine without a route. You always hear how entrepreneurs need “passion” to succeed — the so-called fire in the belly. Well, enthusiasm can be overrated. To fan [...]
Extending the Front Lines of Franchising
Business Week: “When most people think of a franchise business, fast food comes to mind. Franchising, however, long ago grew beyond the burger and fried-chicken shops dotting America’s landscape. Today franchise concepts span 75 different product and service sectors, including such disparate businesses as auto-repair shops, children’s art centers, and fitness clubs. The franchising business [...]
Ron Ameln wrote: Dane, I’m a small-business, entrepreneurial journalist in St. Louis, and I just wrote an article on blogging for small companies. I enjoyed your site very much. In fact, it was one of the first blogs I viewed when working on the article. I was able to interview some of the pioneers in [...]
HomeBizWear.com: “Home Biz Wear is the place to find fun stuff to wear and decorate your surroundings when you work at home! Forget the old adage about working at home in your pajamas – now you can wear your home office lifestyle with pride. And of course, who doesn’t want to rub it in a [...]
Why Societies — and Startups — Collapse
Business Week: In his terrific new book, Collapse, science writer Jared Diamond examines some of the most famous failed civilizations of prehistory and history, from Easter Islanders and the Anasazi of New Mexico to the Viking settlers of Greenland. I bought the book because I found the subtitle intriguing: How Societies Choose to Fail. I [...]
According to my Holiday Blog, the week of April 24 through the 30th is Small Business Week. Congratulations and thanks to all the small business men and women who get up each day and make the world go.
What You Should Know Before Forming a Partnership
NFIB: As John D. Rockefeller once said, “It’s better to have a friendship based on a business partnership than a business partnership based on a friendship.” What he meant is that forming a partnership is a serious endeavor, and that a partnership must follow strict business principles to become successful. After all, statistics show that [...]
USA Today: Most of us think of business cards as just a reference document: a means of conveying basic information people need in order to contact us. We rarely design our business card with the idea that it will be a marketing tool. Looking at your business cards as a marketing piece opens up a [...]
Seeing Both Sides: VCs look to make 5-10x their money in any investment in 4-6 years. If they can’t see a reasonable path to this, they won’t find the investment appealing. VCs also typically like to invest a minimum of $5-10M per company (some less, some more, but let’s focus on the bulk of the [...]
It’s About You, Not Others’ Opinions
USA Today: During the past few weeks I have received e-mails from several readers asking how to maintain the entrepreneurial spirit when so many people around them are throwing negative comments their way. One reader, recovering from his unsuccessful second try at a business, heard plenty of “I told you sos.” Another asked for suggestions [...]
Almost All US Businesses Employ Less Than 5
The MicroEnterprise Journal: “According to an analysis of Census Department data performed last year by the Center for Women’s Business Research, ninety percent of all U.S. businesses employ fewer than five workers, making them microbusinesses. In addition, 63% of all U.S. businesses earn less than $50,000 in annual revenues. New York State, along with California [...]
Springboard Announces Midwest Venture Forum
Entrepreneur Daily: Springboard Enterprises, a nonprofit organization that helps women-led businesses obtain financing, is calling for women entrepreneurs who are seeking funding to apply for Springboard 2005: Midwest Venture Forum. Co-hosted by Northwestern University’s Center for Women Entrepreneurs in Technology, the six-month coaching program helps women access networks that will assist them in raising capital. [...]
Entrepreneur: “You may think it’s nearly impossible to start a business without a lot of money, but think again–some of the biggest success stories have had extremely humble beginnings. Don’t believe us? You will after you read the startup stories of the following four businesses. These entrepreneurs built successful ventures with less than $1,000 and [...]
This week’s Carnival of the Capitalists is up at Peaktalk.
Innovative.Franchising.Blog: “I just found a good article on the legal aspects of franchising at HowStuffWorks.com. Its a bit simple, but a good start.”
Nuts and bolts of Entrepreneurship
CNET: “While a bold idea, unflagging determination and patient financial backers are all crucial to successful start-ups, entrepreneurs must also focus on less dramatic aspects of running a company, according to seasoned entrepreneurs who spoke at the 8th Annual Wharton Entrepreneurship Conference.” via Anthony Cerminaro.
Inc.: “New research suggests that not only is it possible to make friends with your competitors — it’s advisable. No matter how competitive their industry, rival CEOs who form friendships are at a distinct advantage over those who who go it alone, says James D. Westphal, professor of management at the University of Texas at [...]
How a Hot-Dog Wagon Can Earn You Cold Cash
In a letter to Startup Journal a budding entrepreneur asked: “I am 23 and plan to start a chain of hot-dog wagons by next summer. People laugh when they first hear of it, but in doing the research I found that it can be a lucrative business. Is this a good step for a first-time [...]
How To Turn Your Hobby Into A Successful Business
Bankrate.com: From hobby to business sounds like a dream come true: Do what you love and get paid for it. The recreational skier becomes an instructor. The quilt maker quits her day job to sell hand-stitched coverlets. The gourmet turns food caterer. But that dream can become a nightmare if you’re not careful. Before you [...]
Auction Bytes: FoundValue is a new eBay consignment service with 10 full-time employees and 80 sellers (“specialists”) in 24 states. But unlike other eBay consignment chains, FoundValue has one characteristic that makes them stand out from the crowd: they do housecalls, so brick & mortar stores are not required. Stella Kleiman founded the San Francisco-based [...]
Jeremy Wright: “Evan Carmichael has revealed how his firm decides if they want to fund a company.”
Entrepreneurship Around the Globe
The Entrepreneurial Mind: “This week’s National Dialogue on Entrepreneurship looks into entrepreneurship in Mexico, the Middle East, and Ireland.”
This week’s Carnival of the Capitalists is up at Gongol.com.
60-Second Guide to Retaining the Records Your Business Needs
Which papers can you keep, and which can you throw away? AllBusiness to the rescue: Paper, paper, paper. It’s everywhere in a small business, from customer invoices and expense receipts to your licenses and annual tax returns. Without proper management, these records can gradually proliferate into a monumental mess, making it difficult to find what [...]
I recently discovered two great new franchise blogs: Franchise Pundit by Ryan Knoll and Innovative.Franchising.Blog by Josh Dorkin. Ryan critiques franchises with his own brand of humor, classifying each potential opportunity as either “I wouldn’t buy it” or “I’d buy it”. Josh’s site is more franchise news related, with some longer original and reprinted articles. [...]
The 7 Irrefutable Rules of Small Business Growth
Amazon: “Written from an insiders perspective, this book presents the straight truth on small business success. It’s not a get-rich-quick scheme and it doesn’t offer cure-alls for every small business. Instead, it outlines real, effective principles for sustained small business growth and success. Written by business growth expert Steven Little, The 7 Irrefutable Rules of [...]
Fortune: “In the U.S., state and local programs make so-called microloans available, typically to small-business owners who are unable to get traditional loans from banks either because they have poor credit ratings or no credit history at all. About 500 community-based microlenders and a handful of state microlending programs make loans available—most for several thousand [...]
VCs Getting Back in the Start-up Game
The Entrepreneurial Mind: Over the past weeks I have made a post on growing interest of angel investors in finding deals to invest in and on the overhang of funding in VC funds. So what does all of this cash looking for deals mean to entrepreneurs? Remember Economics 101: too many dollars going after the [...]
The Chronicles Of A Start-up In Audio
€irePreneur: “I’m enjoying listening to the Daily Source Code more than ever these days as Adam Curry is no longer merely acting as a podcasting cheerleader but is now chronicling the adventures of a start-up company – Boku Communications – whose new website – Podshow (the singular) is due to launch any day now.”
If You Like to Follow The Rules, Buy A Franchise!
Smart Money: Franchisors prefer working with people who can follow the rules, rather than true entrepreneurs, says Jeff Elgin, CEO of FranChoice, an Eden Prairie, Minn., consulting firm that coaches people in choosing a franchise. If you’ve got strong feelings about everything from the kinds of products you’ll be selling to the color of the [...]
Jeff Cornwall: StartupJournal reports that angle investors are “dusting off their calculators and starting to get serious” about doing deals. They are coming together in increasing numbers in both formal networks and informal investment clubs to find good deals to invest in. They also seem to be branching out in the types of deals they [...]
When You Need a Small Business Attorney
Invest Nebraska: “Growing businesses operate lean by necessity and intelligent business owners never spend money they don’t have to spend. This frugality can be both a blessing and a curse. A spendthrift company quickly burns through its cash and disappears from the competitive landscape while the frugal company persists. The frugal business goes too far [...]
Lessons From Network Marketers
About.com: Network marketing, or multi-level marketing, is one of the fastest-growing business models of the past few decades. Between 1993 and 2003, total direct selling revenues grew by 7.1% annually, dramatically above the rate of growth of the economy — and of total retail sales (according to the Direct Selling Association). … We recently interviewed [...]
This week’s Carnival of the Capitalists is up at TJ’s Weblog.
→ hmteam.com The opportunities to succeed with The HomeTeam Inspection Service franchise are better today then ever before. When buying a home, it has become standard practice to have the home inspected before the sale closes. Of the millions of homes sold last year, over 85% were inspected, and a higher percentage is expected every [...]
Hustle, Passion and Resiliency
Rob Hyndman: “Jason Calacanis’s latest post, while perhaps taking a little too much pleasure out of poking a VC’s associate with a pointy stick, is a funny and quick read about the meaning of, well, business.”
Entreworld: “Launching your first product? Get by with a little help from your friends at an inventors’ group. An inexperienced inventor can gain valuable knowledge and insights by joining such a group. Here are the steps, told in case-study style, you can take to find the right group and make the most of your membership.”
→ garagetek.com GarageTek is a garage organization and storage system that creates a neat, clean and useful space out of the garage—an often overlooked and underutilized room in the home. GarageTek was incorporated in January 2000 and franchise sales began in March 2001. The estimated initial investment made by each franchisee is typically around $250,000 [...]
Eye Contact – A Clue to Ownership
Des Walsh: “On Saturday I went to the mall to buy a printer cartridge at the electronics store. The young guy was keen to serve me, alert, attentive, processed the credit card, gave me the bag with the item in it, said ‘Thanks’ in an offhand way and looked somewhere off to the left. Maybe [...]
Monster Blog: “According to a recent study, 81 percent of people had their best ideas outside of the office. Top places for idea generation? The car, in bed and socializing. Six percent of us have our best ideas in the bathroom.”
Is Bankruptcy Law Bad for Entrepreneurship?
The Entrepreneurial Mind: An article at Knowledge@Emory raises an interesting possibility. They question whether the newly passed Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 may dampen our entrepreneurial economy. Why? Because so many entrepreneurs use personal credit cards and second mortgages on their homes to finance start-ups. For these entrepreneurs, easy bankruptcy provides [...]
Fresh Inc.: So you want to be in business for yourself, but you don’t have a novel business idea. You want to be your own boss, but the boss of what? You say you’re interested in being out on your own, but aren’t thrilled with the idea of going it alone. Ever considered a franchise? [...]
Slate: The real genius of Applebee’s is Hamra and Gustin’s steadfast faith that America’s franchisees can, in fact, train low-wage workers to adequately sauce a platter of Bleu Cheese Sirloin. Call them the grand optimists of American small business, if you like. But if you’re not a fan, here’s a spot of grim news: The [...]
→ 1800waterdamage.com 1-800- WATER DAMAGE is a pioneer in the $5 billion dollar water restoration industry. They take a one-of-a-kind approach to water damage restoration, working directly with home and business owners to ensure the restoration process is done quickly and to the customer’s satisfaction. Prior experience in the cleaning or restoration industry is not [...]
Harry Joiner in a forum post on Business Success Resources: I thought you folks might find this post beneficial. As an avid online researcher, every once in a while I’ll stumble across [a PDF] that’s just stunning in its usefulness. Such was the case this morning: “How to Write a Business Plan” by McKinsey and [...]
On-Again Off-Again Entrepreneur
Anita Campbell in Small Business Trends: A trend I am seeing increasingly is what I dub the “on-again off-again entrepreneur.” The on-again off-again entrepreneur is someone who moves back and forth between being employed and owning his or her own business — multiple times. It’s not an either/or question: either being an entrepreneur your whole [...]
