Archive for February, 2009

Startups in a Downturn

Posted by ArcherTC on February 25, 2009  |   No Comments »

Entrepreneurs who helped build their startups into tech stalwarts—companies like Cisco, Oracle, and Google—share lessons on how to thrive during tough times

December 1987 was no time to be raising money for a startup. Computer engineer Len Bosack was trying to attract funding for a young enterprise called Cisco Systems (CSCO). But the stock market had just crashed and the Dow Jones industrial average had plummeted 40% since October. Gun-shy venture capitalists either didn’t get the newfangled technology or deemed it too risky.

Making matters worse, Bosack was running low on the savings he had used to bootstrap the business, and competition was gaining steam. It wasn’t until this 75th meeting that he found a receptive audience. The willing financier was Donald Valentine of Sequoia Capital, a venture capital firm in Silicon Valley. On Dec. 14, two months after Black Monday, Sequoia invested $2.5 million in Cisco. “Valentine’s reasoning was pretty simple,” recalls Bosack, now CEO of telecom gear-maker XKL. “It doesn’t matter what they are. They are selling stuff in a bad market. With a little bit of capital and more experienced help they should be able to do better.”

Better is just what Cisco did. By the time of its initial share sale three years later, in February 1990—during a recession—the maker of telecom networking equipment was worth $224 million. Within a decade, Cisco Systems had become one of the world’s most valuable companies. …more at Startups in a Dowturn | Business Week (http://www NULL.businessweek NULL.com/technology/content/feb2009/tc20090221_571602 NULL.htm), published 23 February 2009.

Flickr photo credit: Powru (http://www NULL.flickr NULL.com/photos/powru/1999174371/)

What I learned in the trenches

Posted by ArcherTC on February 23, 2009  |   No Comments »

Veterans-turned-entrepreneurs offer advice

After 13 years in the Marine Corps, Brian Iglesias was ready to embark on a dream career in filmmaking. Prepared to pay his dues, he worked the phones, sent e-mails, and paid visits. But all he ran into were dead ends. “Not too long ago I was leading over 225 Marines in landslide relief operations in the Philippines,” he says. But “I had to beg people to let me intern. Only my friends were willing to give me work.”

Frustrated, Iglesias decided to start his own company and turned to one of a growing number of programs that help soldiers become entrepreneurs. He enrolled in the intensive 14-month Entrepreneurship Bootcamp for Veterans with Disabilities (Iglesias has a metal plate fused in his neck), offered for free to service-disabled veterans at Syracuse, Florida State, UCLA, Texas A&M, and Purdue. Started by James M. Haynie, an Air Force vet turned business school professor …more at What I Learned in the Trenches – BusinessWeek (http://www NULL.businessweek NULL.com/smallbiz/content/feb2009/sb20090210_236725 NULL.htm), published on 10 February 2009.

Flickr photo credit: stroopwafels
(http://www NULL.flickr NULL.com/photos/santioliveri/2617930440/)

Cutting startup costs

Posted by ArcherTC on February 23, 2009  |   No Comments »

When big initial costs make it hard to start your business, look further into the figures—they may not be as scary as they seem

As a startup wedding and event photographer, I made a list of all everything I need to purchase for my business, and it literally scared me. Between investing in equipment, software, Web site design, and advertising, my projected income is much less than my necessary expenses for this company. Photography has been my life’s passion, and I really want to succeed. Is there any advice you can offer me? —M.M., Chicago

Fear often stems from lack of understanding. Delving into the financial details of your venture should clear up your confusion and give you confidence to proceed—or perhaps persuade you that your business model is flawed and needs to be overhauled or scrapped.

You’ll need to consider both your startup expenditures and your operating costs, since the latter will help determine how quickly you can pay back the former. There are many ways to save on startup costs …Cutting Startup Costs – BusinessWeek (http://www NULL.businessweek NULL.com/smallbiz/content/feb2009/sb20090210_652973 NULL.htm), published 10 February 2009.

Flickr photo credit: tk yeoh (http://www NULL.flickr NULL.com/photos/tk_yeoh/146927627/in/photostream/)

It’s not who your customers are, it’s how they behave

Posted by ArcherTC on February 23, 2009  |   No Comments »

Wow. I’m humbled by the commentary from my first post. I hope I can maintain such passionate interest!

Businesses cannot exist without customers, so it’s sadly ironic that many, if not most, businesses, actually understand so little about them. As a company grows, a smaller and smaller percentage of the staff interacts with the customers. In fact, those folks on the “front line” (think call centers, service counters, retail stores) are typically among the lowest-paid and have the least authority.

Meanwhile, back at headquarters fundamental decisions are made with extremely limited information about customers. There, understanding the customer is often considered someone else’s responsibility, because, “we have a department for that.” No department has a complete view of the customer, however, and so in place of true understanding are models and frameworks that attempt to describe the customer. Many companies don’t go beyond demographics and market segmentation. While it’s helpful to know how they break down by age, sex, income, region, and other easily measurable characteristics, there’s actually very little you can actually do with that information. In order to become customer experience-driven, you need to go beyond who your customers are, and understand what they do. …more at It’s Not Who Your Customers Are, It’s How They Behave – Peter Merholz – HarvardBusiness.org (http://blogs NULL.harvardbusiness NULL.org/merholz/2009/02/its-not-who-your-customers-are NULL.html), published on 11 February 2009

Flickr photo credit: Roger B. (http://www NULL.flickr NULL.com/photos/roger/24926509/in/set-72157601754195143/)

Hidden tax tips for entrepreneurs

Posted by ArcherTC on February 23, 2009  |   No Comments »

Are you missing tax deductions you’re entitled to? Small business owners, self-employed workers, and independent contractors can write off many legitimate business expenses immediately, reducing the amount of income on which they pay taxes. But if you overlook applicable deductions or fail to keep adequate records that will back up your write-offs during an audit, you give up opportunities to cut your tax bill.

The Schedule C tax form used by sole proprietors to report business profit or loss has 21 line items for business expenses—including such catch-all categories as “office expense,” “supplies,” and “other expenses.” The tax forms for partnerships, LLCs, and S-corps are similarly broad. “It doesn’t even begin to hint at all the things that a business can legitimately deduct,” says Bernard Kamoroff, a certified public accountant and author of 422 Tax Deductions for Businesses & Self Employed Individuals. Don’t expect your accountant to find all the deductions you qualify for—your accountant doesn’t know your spending as intimately as you do.  …more at Hidden Tax Tips for Entrepreneurs – Business Week (http://www NULL.businessweek NULL.com/smallbiz/content/feb2009/sb20090212_479578 NULL.htm), published 17 February 2009.

Flickr photo credit: ANATOLI AXELROD (http://www NULL.flickr NULL.com/photos/tony_axelrod/2817768124/)

Sweating over your business card? That’s psycho, America!

Posted by ArcherTC on February 23, 2009  |   1 Comment »

LinkedIn is revolutionizing networks for American small businesses. These videos show you how.

Before TMZ released the infamous tape of a foul-mouthed Christian Bale on the set of Terminator 4, our Batman hero had played Patrick Bateman, just your everyday serial killer in the film American Psycho. Say what you will about the story’s controversial message, the scene in which Patrick Bateman proudly displays his new business card (http://www NULL.youtube NULL.com/watch?v=zijRtrPSaTI) is simply classic.

Oh my god, it even has a watermark.

I wouldn’t advise it these days. And I am not talking about the killing.

For all the old school businessmen who are still salivating over the creamy colors and raised lettering of their colleagues’ business cards, there are, thankfully, more savvy professionals today advising their colleagues and clients to run, not walk, to LinkedIn (http://www NULL.linkedin NULL.com).

I recommend it to people myself. Often.

So, boy, wasn’t I surprised the other day when a client said that she basically doesn’t understand it. And I was equally surprised, after posting a question on Twitter (http://twitter NULL.com) about it, to not be inundated with tons of instructional video links.

Surely someone has created a video on what makes LinkedIn so powerful for small business?

After scouring YouTube for material, I found 9 solid clips to help you learn about LinkedIn and harness its power.

(If you’d like to head straight to the videos, skip to the bottom of this page for the list of links. If you are already lost — LinkedIn??? Twitter??? — I recommend starting with CommonCraft’s video, Social Networking in Plain English (http://www NULL.commoncraft NULL.com/video-social-networking).)

Three Keys to Understanding LinkedIn

It’s more than a social space. If you’ve jammed on all the music you can handle at MySpace (http://www NULL.myspace NULL.com) and learned 25 things about 25 times on Facebook (http://www NULL.facebook NULL.com), you’ll see the obvious differences with LinkedIn. While it is technically a social networking space, what distinguishes it from its peers is its target market: namely, an international community of professionals that see the future of business online . LinkedIn’s focus is its asset: it is the premiere portal of its kind, dwarfing Xing (http://www NULL.xing NULL.com), its closest market competitor with 35 million users to Xing’s 7 million.  And, according to a November 2008 report by Anderson Analytics (http://www NULL.andersonanalytics NULL.com/index NULL.php?mact=News,cntnt01,detail,0&cntnt01articleid=52&cntnt01origid=16&cntnt01detailtemplate=newsdetail NULL.tpl&cntnt01dateformat=%25m NULL.%25d NULL.%25Y&cntnt01returnid=46), the majority of LinkedIn users (66%) are “decision makers or have influence in the purchase decisions at their companies.”  While LinkedIn may not have the Internet traffic ranks that Facebook (#5) and MySpace (#8) have, it is gaining considerable ground, rising 52 position points to 149 in just the last 3 months alone, according to Alexa (http://www NULL.Alexa NULL.com). Want to see aggressive growth for your own business? Ride that horse to the top.

It’s the networking on steroids. If all you have done with LinkedIn thus far is register an account, you’ve overlooked 99.9% of its effectiveness. At its core, LinkedIn is about, well, linking. As before, it’s not what you know, but who you know that creates business opportunities. While the most obvious first step is to connect with old friends and colleagues, do not neglect the next steps: of joining a LinkedIn group, of asking and answering questions in its forums, of inviting the people you meet in those spaces to connect with you. Yes, yes, some purists will deride the open networkers who boast 500+ connections on their profiles. (“What’s the point if you cannot personally recommend someone?”) But there is a middle ground between your 5 most trusted friends and 5,000 anonymous network connections. Find it.

It’s the cold call made a lot warmer. Remember those days when Gertie Gatekeeper stopped you right at “May I speak to the Director of Marketing?” Those days can be placed firmly behind you with the power of just two words: a first name and a last name. On LinkedIn, members within your extended network (i.e. the friends of your friend’s friends) are fully visible by name and title. For example, just 150 strategic connections can connect you with nearly 5 million professionals. That means that the next time you want to reach the marketing director in an Austin, Texas agency, chances are good that you can ask for her directly. Even better, because she has already voluntarily posted the most current information about her duties in the company, you can be sure that she is, indeed, the person with whom you want to speak. Power tip: using a calling list or a lead database? Cross reference it with LinkedIn.

Finding professionals in your target markets has gotten a whole lot easier because of LinkedIn. It is, as one of the video gurus puts it, “the grown-up version of your address book.” That is just the tip of the iceberg. Increasing the visibility of your small business, sharing resources with your industry peers, and leveraging your connections for new business: that’s the power of LinkedIn.

So are you going to get online? Or are you going to continue stroking your business card?

– Tammi, who reminds you that hiring ArcherTC to polish your LinkedIn profile is business smart

YouTube video links:

  • What is LinkedIn? (http://www NULL.youtube NULL.com/watch?v=IzT3JVUGUzM) by LinkedInMarketing (2:28)
  • How & Why to Use LinkedIn.com (http://www NULL.youtube NULL.com/watch?v=KQs1P547vlU) by SmallBizTrends.com (8:21)
  • Use LinkedIn to Sell at Internet Speed (http://www NULL.youtube NULL.com/watch?v=IKqsFKLOGqE) by yBC.TV (3:14)
  • See the remaining 6 videos on the ArcherTCdotcom (http://www NULL.youtube NULL.com/user/ArcherTCdotcom) YouTube channel.

Related shopping:

  • Despair.com is selling some awesome Christian Bale t-shirts. The Official Tee For Those Who Shan’t Be Working Together With Him Again (http://site NULL.despair NULL.com/blog/2009/02/04/the-christian-bale-tee/). It would make the perfect gift…send me one!
  • Amazon.com is selling the second edition of Jason Alba’s “I’m on LinkedIn — Now What???”. Skip the videos and buy the book (http://www NULL.amazon NULL.com/gp/product/1600051367?ie=UTF8&tag=archcom-20&linkCode=as2&camp=1789&creative=390957&creativeASIN=1600051367)!

- Flickr photo credit: Jerry Luk (http://www NULL.flickr NULL.com/photos/jerryluk/470535105/)

Ask an Expert: You’ve got to impress clients from the get-go

Posted by ArcherTC on February 17, 2009  |   No Comments »

Q: Help! I own a small consultancy business. A new client e-mailed me a few days ago but the message ended up in my spam folder, as did her follow-up. Now she won’t return my calls. How can I get her back? — Aaron

A: You probably can’t.

The new client concluded, fairly or unfairly (but fairly, I think) that if things are going wrong already, at the start of your working relationship, it does not bode well for work down the road.

But I suggest that a bigger issue is at play, namely, the value and power of first impressions. And especially in this economy, first impressions are more important than ever.

Back in my UCLA days, I once got a job as at a new pizza joint. My roommate at the time gave me some advice that has served me well ever since. “When you get a new job,” he told me, “work extra hard the first month. Do extra without being asked. Say yes to everything. They will see what a good, hard worker you are, and forever more will look at you through that lens.” I must say that I have since found this to be quite accurate. …more at Ask an Expert: You’ve got to impress clients from the get-go – USATODAY.com (http://www NULL.usatoday NULL.com/money/smallbusiness/columnist/strauss/2009-02-16-first-impressions_N NULL.htm), published 16 February 2009

Flickr photo credit: cursedthing (http://www NULL.flickr NULL.com/photos/cursedthing/900539967/in/photostream/)

Small firms resort to freebies and special deals

Posted by ArcherTC on February 11, 2009  |   No Comments »

While the strategy can help lure hesitant customers, high costs run the risk of leaving some companies worse off

Faced with a deepening recession and evaporating sales, an increasing number of small businesses are resorting to a high-risk strategy: costly giveaways and promotions to lure the reluctant consumer.

If the strategies work, these companies could have a powerful weapon in their struggle to weather the economic storm. But if they don’t work, the more vulnerable businesses could find themselves in a bigger financial hole.

“Offering things for free is a very dangerous area to get into” for little-known small companies, because it threatens to establish the brand’s reputation as cheap, says Barbara Apple Sullivan, managing partner at New York communications strategy firm Sullivan & Co. “Clients or prospects [may see] the product as worth what they’re paying” during a promotion, she says.

But, she adds, the promotions can give the companies a shot of finding new customers — something in short supply right now. …more at Small Firms Resort to Freebies and Special Deals – Wall Street Journal (http://online NULL.wsj NULL.com/article/SB123378641759849447 NULL.html), published 2 Feb 2009

Flickr photo credit: mitchiru (http://www NULL.flickr NULL.com/photos/mitchiru/3025454986/)

The power of press releases for small business

Posted by ArcherTC on February 11, 2009  |   No Comments »

You may be operating a one-person-business, but there are many resources and tools out there that aren’t just for the big guys anymore. Today we’re going to focus on the power behind press releases. Yes, that’s right; even small business’s can achieve phenomenal growth with the proper use of press releases.

Online marketing and PR expert, Barbara Rozgonyi, founder of CoryWestMedia.com and publisher of WiredPRworks.com is a wealth of information, brilliant ideas, and resources for small and large companies alike. I’ve asked Barbara a few questions about how a one-person-business can benefit from press releases. I’ve learned a lot and I hope you will too… more at The Power of Press Releases for Small Business – Inc. (http://blog NULL.inc NULL.com/one-person-business/2009/02/the_power_of_press_releases_fo NULL.html), published 2 February 2009

Flickr photo credit: ronnie44052 (http://www NULL.flickr NULL.com/photos/ronnie44052/539455418/)

Landlord adds social media to his toolbox

Posted by ArcherTC on February 11, 2009  |   No Comments »

One Detroit-area apartment owner is connecting online with current and prospective tenants. Interested in a place? Send a text for a floor plan

Forty-nine-year-old Eric Brown is no expert in social media. In fact, he doesn’t believe such a thing exists. For Brown, social media is a question of trying new forms of communication, from blogs to Facebook and Twitter, and seeing what works and what bombs. What he has learned, among many lessons, is that reaching out to the unhappiest customers can sometimes not only make them happy, but even turn them into evangelists for Urbane Apartments, his 500 units scattered through Royal Oak, Mich. “When I explain these things to corporate people, they look at me like I have a horn coming out of my head,” he says.

Brown, who had worked in housing for 25 years, launched his own real estate business in 2003, and started to buy up midsize apartment buildings in Royal Oak, a Detroit suburb. He was reading a lot about marketing and social media, and one day in 2005 he announced plans to open a company page on MySpace. His colleagues worried …more at Landlord Adds Social Media to His Toolbox – BusinessWeek (http://www NULL.businessweek NULL.com/innovate/content/feb2009/id2009029_965700 NULL.htm), published 9 February 2009

Flickr photo credit: 60 in 3 (http://www NULL.flickr NULL.com/photos/60in3/2281706277/)

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