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Posted: 2/21/2012
Key Skills Good Entrepreneurs Must Have
In business, you will always hear this question, “do you have what it takes to succeed?” Every person who wishes to engage himself in business must first ask himself this question before taking the first step. Why? Because, being in the business world is like being in a jungle with full of wild animals and no one is around except you. If you aren’t prepared and armoured you will be easily caught up and die instantly.
For you to stay long and be successful in business, you need to assess yourself first if you have these special traits that make up a good entrepreneur: Objectivity. Think back to a time when you wanted to do something beyond your skill. Perhaps you wanted some large posters for your new product launching, will you choose your good friend which is an amateur graphic artist to do the job? The work might be passable but certainly not up to that of the skilled graphic artist— who might charge a fairly sizeable fee for the work but whose quality of work would be certain of. A successful entrepreneur prefers the expert than the amateur when in need of help. Because in business, a simple committed mistake is a loss of not just money, but time and effort. Need for feedback. Have you ever wanted to know how you were doing on the job? Have you tackled the boss to find out? Do you keep track of the mileage you’re getting from your car and see to it that the tires are properly inflated and the engine tuned when the mileage shows signs of falling off? Is it your custom to check on matters of this kind and to make improvement when the signs show the need? A “yes” answer bodes well for your new venture. Enterprises look to feedback signals from what they do and from what thing to do for or to them. They want to know how they’re doing. They’ll do more of the right thing and change course to overcome the effects of having done the wrong thing. If you answer “no”, it suggests that you need to learn how to get use feedback to improve your performance. Optimism in novel situations. Have you ever tackled a job that you didn’t know too much about but decided to take on because it looked exciting and you thought you could do it? For example, have you tried to convert your attic to a playroom, or put together a loom from a do-it- kit? Although the job proved to be difficult, did you plow ahead, gaining skills as you went and complete the project? If you answered yes, you have a special characteristic of a true entrepreneur. Remember that true entrepreneurs sometimes take on projects that interest them even when they are not thoroughly familiar with the details. The novelty may attract them, and they believe they can bring their own special skills to accomplish the job. Proactive management. Are you accustomed to think ahead? Do you set goal for yourself, such as a new house or a new car? Then do you plan and work consistently to achieve the goal, thinking through your special requirements and setting funds for the purchase? If you answer “yes”, then you have a proactive management skill. To become a successful businessperson, it is important that you learn to plan ahead, yet keep your present circumstances under control. This is the essence of proactive management.
To sum up, good entrepreneurs are not destined to be one. They become successful because they want to and because they continue to practice to acquire the good traits of an entrepreneur. So, if you want to be like them, assess yourself if you have all those characteristics mentioned above. If you think you don’t have it, all it takes is practice! Author's Bio:
Marion, an internet savvy as most people would describe me, works as a freelancer in LA. My experiences include writing and internet marketing related jobs.
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Posted: 1/16/2012
OnStartupsCurrent Articles |  RSS Feed A new phrase entered the startup vocabulary a little while ago: “Ramen Profitable”. The phrase is used to reference startups that are making enough money for the founders to live on the startup staple of Ramen noodles. [For our friends in India, Ramen noodles are similar to what you would know locally as “Maggie”, which is what I grew up on. I like the Masala flavored one]. So, here's my issue with the term “Ramen Profitable” — in most cases where it's being applied, the company's not really profitable. Reason? Because the entrepreneurs/founders are paying themselves negligible (if any) salary. This distorts the actual value being created. Some of you might argue that founder's are simply making an investment of their time/energy, in lieu of salary. That's a wonderful thing, but from an accounting perspective, just because you're not properly calculating expenses, doesn't mean it's profit. To be fair and more accurate, founders should look at their fair market value to determine actual profitability. For example: Lets say you happened to inherit some prime real-estate in downtown San Francisco. You got it for free. Now, you open a really swank gelato bar for Python developers. If you weren't charging yourself any rent for that space, nor paying yourself anything, and the business made $100/day, would you really consider that profitable? You could have rented the space out at fair market value for much more money than that. I'd argue you're losing money -- and I'd be right. My point: It's awesome for startups to get to a point that they're not reliant on external funding sources to survive. Paul Graham describes this well in "Ramen Profitable". Great article and I agree with his points -- particularly around the morale boost. But, I'd call this stage of a startup “Ramen Sustainable”. This stage gets a startup “infinite runway”. This can be a very good thing, because the entrepreneur can than tweak, iterate, pivot to her heart's content. But, that's also the problem with Ramen Sustainable startups. The entrepreneur may keep going longer than would have been warranted, instead of moving on to their next big idea. Oh, and on a closing note (which came up in discussion as a result of an article by Scott Kirsner (of the Boston Globe), titled “Is Boston spawning too many startups, and starving growth companies for talent?” My thoughts on this: You can never have too many startups, but you can have too few shutdowns. Do you think I'm right about the Ramen Sustainable vs. Ramen Profitable characterization? Any thoughts on the pros and cons of reaching this stage in a startup? How do you know when your Ramen Sustainble startup is better off being shutdown so you can move on to bigger things? Love startups? Join the OnStartups community on Facebook. Posted by Dharmesh Shah on Fri, Oct 21, 2011
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Posted: 1/5/2012
9 Essential Tips for Creating a Business NameName your Business for Success Creating a business name is a very significant step of starting a new business. You need to work with some basic essential ideas to create the best potential name for your business.
It can be a very time intensive process. However, having an attractive and catchy name can make it easier for your company to become more successful in the long run. Sometimes a bad name can ruin an awesome business idea.
Name your business for success - here are some essential tips you need to use for creating a business name. Choose a Memorable Name When finding a business name think of something that is going to be very memorable, a name that can be easy for your buyers to think about and connect to your business. It can help if you make the name short or alliterative among other things. It can even rhyme if one feels like it. For example, a vacuum cleaner business could have a name like Super Suction Services. This name is memorable and easier for a person to think about later. You can also have an alliterative for this as SSS, and above all the words rhyme nicely. Use a Name that is Easy To Spell and Say When creating a business name, you should not assume that a long name would be appropriate for your business. The name should be something that is easy to spell and easy to say. For example, something like Computer Doctor or Computer Repair Services can be a good name for a computer repair shop because it is easy to recall and spell. A name like Computer Diagnostics and Electronics might not work out well though. A business name that can easily be spelled by anyone is something you should consider over long and complex names. Create a Positive Business Name While choosing a business name, you should see that it is easy to think about from a visual perspective. A good business name is something that will create a decent visual idea. While creating a business name always remember to create a good visual image that will allow a person to think about your business and to associate it with something that is positive and pleasing in nature. For instance, a carpet cleaning business can work with a name like Spotless Carpet Services. This is positive because it suggests what a good carpet should look like. Another good example is Extra Mile Car Services for a car services business or Tender Day Carefor baby-sitting or day-care kind of business. Use a Name that Expresses A good company name can also involve a descriptive term that relates to what you are dealing with. Use a noun or an adjective to expresses something that your business is associated with. For example, if you sell computer parts - a name like Hard Drive Computer Parts can tell people that you are dealing with different types of computer parts including hard drives. Another example of a descriptive business name is Red Roses Flowers & Gifts. Use Pleasant Connotation When creating a business name, another great idea is to use a connotation in your business name that can work to create pleasant thoughts and ideas. You should watch for this if you want to create great business names. This can ensure that people think your business is going to do the right things for their needs. Try to think about something that works with a positive type of connotation. An example for this is Clear Sky Roof Services or Sunny Sky Moon Roofs for a business that works with installing moon roofs or glass ceilings on houses. Or, Amazing Unwinds Holiday Services is something you can use for a holiday arrangement business. Always Watch the Tone It is important to watch for the tone the business name has. The tone needs to be appropriate to whatever you are dealing with. In particular, you need to watch the adjectives that you would use in your business name. For example, a barbershop can have a name like Perfect Shave Barber or Clean Cut Barber. Avoid names that sound painful and are unrefined like Rough Edge Barber or Over-the-Edge Barber. While creating a business name use a good adjective that relates to how effective or good your work or products is. When you name your business with a good tone, it will definitely help you promote your business better. Creative Business Names are Flexible Another important thing to remember is to keep scope and spread of your business flexible. Arbitrary names that contain common words like Fox, Orange, Sonic, Shadow and Target. In addition, new or created words like Invench, Hubis, Panadesk, Pheubo and RooX do not identify particular products, or describe a major ingredient, quality or feature of the goods or services offered by the business. Such business names are scalable, versatile and can often change their focus without having to change their name. For example, Amazon has no direct connection with books, so it was able to expand into music, electronics and many other kinds of products under the same business name. Likewise, the name Google is totally flexibility as a brand because it does not describe or suggest it is an internet search engine. Always remember the flexibility approach while creating a business name. This lens is part of a set of lenses related to concepts and ideas for creating good business names. Go to How to Create Good Business Names lens to find more useful information and links to all the related lenses. Great Business Names Have a Story If you can have a story while choosing a business name it can create a lasting impression on the buyers. Pangea3 - An outsourcing company uses the following story - Pangea was the single super continent that existed prior to the continental drift that divided the 7 continents. The next Pangea took place when mass means of transportation linked people from different continents. We are currently in the third Pangea where the internet and telecommunications systems have electronically reconnected the continents again, creating a boundary-less single super continent. A name with a good story can help set your business apart from rest of its competition. In addition, it is also a nice way to get people to remember your company name. And Finally... Do the SWOT While in the process of creating a business name remember to keep a note of all the creative business names. Once you have pinned down a short-list of such names, do a SWOT analysis. A SWOT analysis is where you write down the Strengths, Weaknesses, Opportunities and Threatsfor each name. You give a positive score for strengths and opportunities and a negative score for weaknesses or threats. Your can also consider giving a score in the range of say -3 to +3 for every viewpoint in analysis. The scoring method can be as flexible as you want. Just remember to do it uniformly across all potential names. The SWOT is essentially the last step while creating a business name. Overall, this analysis should help you see through the cloud and assist you in finalizing a cool business name. These are all essential tips you can use while naming a business. By capturing all these ideas into the name to begin with, you will save a lot of time, money and heartache down the road. http://www.squidoo.com/creating-a-business-name
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Posted: 12/6/2011
 The Extraordinary Entrepreneurs Series is supported by Diet Coke®. Now, the drink that helps you stay extraordinary brings you extraordinary people. Find Diet Coke® on Facebookfor access to a whole lot of extraordinary.
 After more than five years at the helm of Ning, Gina Bianchini stepped down in March 2010 from her position as CEO of the custom social network creator that she co-founded.
At the time, the startup had an impressive 2.3 million user-created networks and more than 45 million registered users. But not everything was coming up roses at Ning. Shortly after Bianchini’s departure, the company laid off 40% of its employees. Glam Media purchased Ning earlier this month for an estimated $150 million — a fraction of its reported valuation. Meanwhile, Bianchini transitioned back to her early-stage startup days by becoming an entrepreneur in residence at Andreesen Horowitz. Eight months later, she emerged with a new startup, Mightybell. Mightybell helps users break a big idea — anything from a recipe to a cross-country trip — into small, doable steps that they can share with their social networks. Mashable asked Bianchini about the inspiration for her new company and the challenges of being at the head of a new startup again. Name: Gina Bianchini Companies: Ning, then Mightybell Founded: 2005 and 2010, respectively
Q&A with Gina Bianchini
What inspires you? I’m inspired by building social software that seeks to grow the things that make people uniquely, well, people. My first product, Ning, unlocked the creation of 2.3 million different social networks for every conceivable interest and passion. Now with Mightybell, we’re taking online conversations and translating them into better, more interesting real-life experience. We do it by offering a way for one person to lay out a series of small steps towards a goal or steps around a topic for other people to come in and do. Then, how people do it is up to them. What about your startup idea was game-changing? Social technology took off because it gives people the feeling that they are connected. But after hours of checking in on their friends, uploading photos, and updating their status messages, people want more. They are looking for their hard work online to translate into a better life in the real world. Mightybell was built around the idea that success comes from thinking big, but acting incrementally — baby steps matter. By creating a platform that offers a simple, lightweight structure for organizing action, Mightybell allows anyone to create a series of clear and achievable steps towards a goal, and allows anyone to follow those steps. What was the pivotal point in your early startup days? There wasn’t one “aha” moment in the early days of Mightybell. The idea and all of the web and iOS apps’ features unfolded step by step — just like the company’s premise — based on the fundamental concept that “you are what you do.” What was the biggest challenge you faced with your startup? “Success comes from thinking big, but acting incrementally — baby steps matter.” It is always a challenge to create something real out of an idea in your head. The decision to persevere is one that is decided in a series of small moments, when you have the choice to do one more thing to see something through to its fullest or, well, watch TV. Next to this, making a screaming fast, beautifully designed product with a lean team seems downright easy. What is your vision of success? I believe that the definition of success is knowing that you’ve operated to the best of your potential — you’ve given it your all, and you focus on the things within your control. [When] one is taking nothing and making it something, that’s really the only way you can define success. How did your social network of peers influence your business? I think we’re in a technology or social software scene that is not so dissimilar to London of the swinging ’60s or Seattle in the early ’90s. What’s inspiring to me is how my peer group of entrepreneurs spent the last five years figuring out how to get one billion people connected around the world via social software and are now turning their attention to how to take these newly connected people and find ways to make everyday life more engaging, active and interesting. I am honored to be a part of it. What advice do you have for other entrepreneurs? Focus on making a great product that people need — not just want — in their daily lives. Beyond that, learn something new every day. As Jeff Bezos says, “Every day is day one.”
Series Supported by Diet Coke®
 The Extraordinary Entrepreneurs Series is supported by Diet Coke®. Now, the drink that helps you stay extraordinary brings you extraordinary people. Find Diet Coke® on Facebook for access to a whole lot of extraordinary.
http://mashable.com/2011/10/13/gina-bianchini-ning-interview/
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Posted: 12/4/2011
How Entrepreneurs Can Increase Productivity by 500% Editor’s note: James Altucher is an investor, programmer, author, and entrepreneur. He is Managing Director of Formula Capital and has written 6 books on investing. His latest book is I Was Blind But Now I See. You can follow him@jaltucher. When I got separated from my ex-wife in November, 2008 I put an ad on Craigslist pretending to be a psychic and spent the day answering all the emails I got in return. I had various tricks to prove I was a psychic. For instance, if a woman wrote me and asked: prove you’re a psychic I would write back: when you were younger you had beautiful long hair. Then it was cut and you were horribly sad, all that beautiful hair lost. They would all respond, HOW DID YOU KNOW? Then I had Thanksgiving dinner in the Red Flame diner on 44th Street by myself and had a Turkey sandwich. It was the financial crisis, I was all alone, I spent the nights in cheap hotels, and the world was falling apart. I shut down a business I had been starting. It was a year and a half after I sold stockpickr.com and I felt I was ready to begin the next one. I started a business crowdsourcing ads. My partners were the guys who did Freakonomics. It was going well. Why did I shut the new business down? No reason at all. It’s probably still a good idea. I was just mired in my own negativity. Meanwhile Andrew Mason spent that month, the worst month in financial history since the Great Depression, starting Groupon and became a billionaire. Through the years I missed investing in Google. I missed investing in Foursquare. I missed, I lost, I suffered, I cried. I could’ve started other businesses instead of the ones I did. I could’ve accepted job offers instead of lying in my hammock crying about failures. We all have stuff to complain about. What a waste! It’s hard not to spend most of the day angry or scared or anxious. Particularly when running a startup. I want to be productive, healthy, and happy. Better to avoid having 80% of my thoughts (or more on some days!) be “not useful”. In my worst days I easily could’ve spent a good chunk of my day wasting it by thinking thoughts that aren’t useful. That’s just as much a waste of time as playing dumb games or watching the Kardashians on reality TV. Pretend your brain is a giant Gmail inbox. You can use filters to immediately label thoughts to get them out of your priority inbox and not have them bog down your productivity (or happiness). As soon as you see one of the below types of thoughts pop up, label it, filter it, and file it (thoughts have a way of racing past us). Many times, this has been the only way I’ve been able to pick myself up and getmoving again. Here are nine filters you can use to get rid of such negative thoughts: 1) Pessimistic thoughts: For instance, judging myself too harshly. Or assuming I’m no good at something so I shouldn’t even try. Or assuming I’m destined to be an unhealthy old man. These are all negative thoughts. If you can’t try something, then you won’t try something. You think Larry Page wanders around his bedroom late at night thinking, “man, I can’t do this!” How do I know I can label them as “negative thoughts”? As opposed to negative reality? Because they have no basis in fact. I don’t know how I will be as an old man. And if I judge someone too harshly before I even know them—what’s the point? It’s one thing if they reach into my pocket and try to take my wallet. Then I can judge them: “This person steals things.” But until then, why judge? And yet I do. What a waste! Or, before I give a talk, thinking that I’m going to do horribly despite the fact that I’ve prepared well and it’s a friendly crowd. All the evidence suggests that my negative thought is not based in reality and yet I’ll still think it. Not useful. 
2) Vice – My vice thoughts start when I wake up. Who made me angry the day before? Do I look good in the mirror? Or when I look at the above picture of Larry Page (referred to as “human being #1” in my house) I get envious. Or am I constantly thinking of the waffles I’m going to eat at breakfast in the city later? That might be a fun thought (just like constantly thinking about sex) but it’s not necessarily one that will bring me closer to happiness or success. I can enjoy the waffle when I eat it. I don’t have to think of it every second of the day.
3) Perfectionism/Shame– I want to make more money. I want my kids to love me. I want a big house. I want, I want, I want. We spend our first few years of life being programmed by commercialism into thinking that some things are important: getting a college degree, owning a home, having as many people as possible love you (fame), getting attached to certain things (like the Dr. McCoy doll I have sitting right next to my computer that nobody better mess with), getting a private plane, having sex with as many people as possible. These thoughts of what a perfect life would be like are harmful. What if you don’t get the college degree, or own the home, or get the yacht in the Mediterranean? Perfectionism is a form of bondage. We want things to be “just right” or else we are unhappy. We become ashamed. Why, when I had $10mm, did I want $100mm? I had enough to live forever. And yet, some feeling inside of me thought I was imperfect, unloved, not good enough, unless I had that $100mm. And then, of course, I lost it all. And I really did feel shame. For years! Perfectionist thoughts are not only not useful, they are damaging. 4) Jealousy. – there’s that Sting song, “if you love someone, set them free.” A lot of people love others but don’t want the other to be free. They say, “I love you” but the love is tainted with need, with desire, with jealousy. How do you catch yourself when you feel this less pure form of love. Jealousy is like this also. Why did this friend sell his business for $80 million and I’m still working 29 hours a day. Or why did this other friend cash out when he was just a low-level employee of Facebook? It’s hard. But it’s still a type of thought that will bring you down, force you to live a lesser life than the person you were meant to be. When you think you have the purest motives, take a second to check yourself – what are your ulterior motives. What would happen if you don’t get what you want? You might think that jealousy can be a motivating thought: If he can do it, why can’t I? But it’s not. It takes away from the thoughts of creativity, ingenuitiy, innovation, invention.  5) Painful – We just had the Thanksgiving holidays. This gives rise to a lot of pleasurable thoughts. But also painful ones. Often we’re put together with family and friends that bring back memories. Historical is often hysterical.
We remember the past, we remember the things that were done to us. Everyone shouts hysterically, confusing it with historically. I went to a Thanksgiving once where one sister threw coffee on another sister. What started out as pleasurable thoughts (“MMm, Thanksgiving!”) quickly turned painful. This Thanksgiving I spent the entire day on a plane. It was my best Thanksgiving ever! It’s too much to say: I’m not going to think these painful thoughts. We’re not Jesus. But for me, just being aware that I’m about to go into a situation where painful thoughts might occur, helps me to label them and filter them when they come up. Or even stay away from the situation altogether (hence the plane ride on Thanksgiving). 6) Fear. Everything changes. I’m going to get older. I’m going to fail at some of the things I start.Heck, I have proof of that. Maybe some day my wife Claudia will hate me (I hope not.) Maybe some day my kids will. (One of them yesterday said to me, “I hate you”, and it made me afraid for a second that her words weren’t the senseless provoking of a nine year old but I suddenly pictured her as a twenty-nine year old saying it.) But these fears of the future are just as useless as the painful thoughts of the past. They have nothing to do with how we can be happy and productive right now. Today. So they deserve to be labeled and put in the mental spam box. Some people live life as if today is your last day. Better to do the opposite, live each day as if it’s the first. A fresh start. Time for newness and confidence.
7) Obsessive. Perhaps the biggest time and life waster. One time I was so obsessed with another woman that I’d go to sleep with my phone right next to me wishing she’d call. I’d wake up disappointed she didn’t call and wondering what she was doing all night. I’d wait until I thought she was awake and then I would call and ask her to breakfast. If she couldn’t, I’d go to her area and wait around until she was available. I’d keep circling the block to see the light was on in her window. My entire day revolved around her. Of course she got sick of me. In which case I became more obsessive. What does this have to do with being an entrepreneur? It has everything to do with it. That valuable energy I was wasting could’ve been spent developing Groupon or heck, even Lycos. Or sometimes when someone is angry with me, I can’t just give it up. I have to prove myself right. I have to make sure he or she knows how wrong he is. I play the argument over and over again. I can’t understand how they can think I’m wrong. Or what I did to deserve such harsh treatment. I’m RIGHT! So get with the program.  Sadness. I don’t want to suggest that it’s “bad” to feel sad. If someone close to you dies, you’ll feel sad. But often people stretch out the sadness until it becomes an addiction, an excuse to be pessimistic.” I’m “never going to be happy” because…X, Y, and Z.”
Our mind likes to be sad. It likes the barriers to happiness. Happiness is too wide open and scary. Sadness keeps us confined inside our boundaries. Those boundaries become the walls that pessimism lives inside of. It’s easy to be pessimistic because then we fool ourselves into thinking we don’t need to do too much. What if in 2004, some kid at Harvard didn’t say, “I’m going to make a little website that everyone on the planet is going to put all of their personal details on.” What if he said, instead, “Ahh, I don’t feel like it. Some girl who looks like the girl with the dragon tattoo just broke up with me and can I really compete against myspace.com anyway? Don’t be an idiot, Mark.” And he just went under his covers and cried. No good!  9) Unimprovement. We know exactly when we are thinking of things that are not good for us. Am I going to eat chocolate until 1 in the morning while watching the Real Housewives of Atlanta? Most likely this is not good for me (although “Real Houswives of Beverly Hills” is a completely different issue).
The mind is like a giant Gmail box. Emails are constantly coming in. Most of them are junk emails and are instantly filtered into the spam box. But many other emails come in that we don’t know what to do with. In Gmail you can create filters. For instance, when someone sends me a receipt for my latest book “I Was Blind But Now I See” I am able to label the email “Bad Behavior” because when my next self-published book comes out (working title, “Bad Behavior”) I can easily filter every email with that label and send it to them. It’s the same in our mind. If we use the above nine labels above, and then filter anything (or most things) with those labels into the “not useful” box as per this post, then here’s what happens: A) Our brain gets quicker at noticing when we are thinking not-useful thoughts. B) Your negativity is like a rock constantly being doused with water. Eventually the rock withers to nothing, although it takes time. It’s persistent practice. C) We have more time for the useful thoughts – the thoughts that lead to productivity, minimalism, happiness, freedom. D) We can identify which labels are occurring the most and develop problem-solving techniques to directly deal with them. Not every “not useful” thought should be treated the same. Don’t believe me. Don’t pay any attention to this advice. Like everybody else, I’ve got 6,000 things to do today. And I know if any of the nine things above drag me down, I won’t get things done. I’m already feeling anxious about it. And I’m not helped by the 12 cups of coffee I’ve already consumed. In fact, I could be slipping into an obsessive panic. Not useful. – Read “The Power of Negative Thinking” And Follow ME on Twitter Top image via Shutterstock/Villers Steyn
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Posted: 10/11/2011
The New Way of Spending College Tuition
I over heard on the radio that in some modernized western countries high school graduates are getting into the trend of using their money allotted for their college tuition for travel purposes instead. They use the money to go to Europe, Asia, Africa or wherever they prefer to go and find themselves. Through their travels these students of life are able to learn about different activities, foods, drinks and different cultures in general.
By the end of their tour of the world they come home with their passion in life and make this passion their business.
Do you YunnOhs think that this could work in the Philippines?
What are the implications of this type of learning?
What are the implications on society if this trended in our home country?
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Posted: 10/11/2011
One very economical way of getting the word out on your business is via the media. Here's an article that might help you out with this.
The New Rules of Getting Press for Your Start-upThink Facebook and Twitter are all you need to get the word out about your new business? Here are eight more ways to get some media attention. 
 Getty Related ToolsNow that you’ve made the bold move of opening up your own business, you’re likely faced with the challenge of spreading the word about your goods or services to potential customers. One of the most cost-effective ways to build buzz around your start-up is to get it covered by the media, either local or national. But how does one go about doing that, especially if you don’t have the budget to hire a PR firm? While getting actively involved in your company’s Facebook page and Twitter feed is essential these days, and using those same tools to follow the media outlets that cover your industry, it might be enough to attract the attention you want. What follows, then, are additional tips from fellow business owners about how to get press for your new business using both tried-and-true methods as well as the benefits you can reap from tapping the latest in social media technology to get your business some media attention. Capitalize on Other Low-Cost Social Media ToolsWhile you might equate social media with Facebook and Twitter, there are plenty of other options to attract the attention of the media, says Mike Samson, co-founder ofcrowdSPRING, the online marketplace for logo and web design, who suggests posting press releases on sites like:PRWeb.com, Free Press Release, and PRLog.com. Samson also suggests answering media inquiries from reporters on sites like HARO, Reporters Connection, Pitch Rate, and NewsBasis. “When a writer needs sources for an upcoming story, they post on these sites seeking people who can help,” says Samson. Another option is to check sites like MediaBistro.com, since many publications post their editorial calendars—which preview the kinds of stories they will be running—on the site. “The fee for joining is very minimal and you can learn a lot about how to pitch certain media publications,” says Phyllis Cheung of LuxeFinds.com, a luxury lifestyle search engine for women. Read more on social media.
Get PersonalWhile every business should be doing whatever it can to take advantage of online tools to promote itself, that doesn’t mean you should neglect tried-and-true methods of interpersonal interactions, as well. “Pick up the phone,” says Ryan Carlin, a PR expert who works with start-up sites like Roaming Hunger, a site that tracks, profiles, and provides menus for food trucks around the country. “In an age where 'silent' business like e-mail is possible and often preferred, it undoubtedly makes an impact by picking up the phone. Not only does it establish trust, but it also creates a more solid relationship for future media outreach.” Along those same lines, Cheung of Luxefinds.com says that she attends networking events in her local area if she knows that journalists and editors will be in attendance. “I introduce myself and we chat about anything from current news in my industry to what I’m doing that is relevant to potential stories they have in the pipeline,” she says, noting that she landed a story with Entrepreneur after meeting the editor-in-chief of the magazine at such an event. “Most of these events are two hours long and can be either free or low cost.” Get more tips on networking.
Form PartnershipsFor start-ups, there are many advantages to partnering with more established companies—especially if you can reap some press opportunities out of them, saysTamara Clarke, who owns Eco-Exquisite, which makes and sells a line of hair accessories. “By leveraging the media relationships of seasoned companies, start-ups can also spare themselves some time on the bench while trying to get in the game,” says Clarke, who teamed up with one of her clients, Glambar Salon in Atlanta, in publicizing their Second Anniversary Girl’s Club event. The result was that Clarke’s product, the EcoSOQ Natural Sleep Cap, was featured in several blogs and publications, like Essence and Rolling Out magazines.
Make Yourself an ExpertOne surefire way to attract the attention of journalists is to promote yourself as an expert in your field, says Samson of crowdSPRING. “Create content designed to position yourself as an indispensable authority on your industry, your city, your profession, or any appropriate topic,” he says. Ways you can accomplish this include writing case studies and white papers that you then distribute to the media, your customers, and other professionals in your industry. You can also set up an online press center on your company or personal website where you compile all of the stories, mentions, and press releases you have generated, and make them easily accessible, says Samson. “Also include a downloadable press kit with information on your company, your team, and your service or product, as well as photos, bios, and any other material that will be helpful for those who want to write about you,” he says. Tap Influential BloggersMost products are built for a specific population of users or specific use cases, and whatever your product or service, there are bloggers who write about it and are influencers, says Jeff Kear, co-founder ofMyWeddingWorkbook.com, which provides online wedding planning software for couples and event planners. “These people are almost always interested in new products and services, so prior to launching your product or service, develop a list of these people with their e-mail and contact info and reach out to them to try out your product or service before it is released to the public. We did this when we launched a free version of our product and we went from 20 registrations a day for our web-based wedding planning software to more than 100 registrations a day for a five-day period soon after our launch.” Bloggers and journalists are also interested in new trends and data—something that you can provide for them, says Kear. “One of our products is online software for wedding consultants, and these people are very interested in what brides are thinking,” he says. “So we reached out to brides with a survey that asked questions that wedding consultants would be interested in. This provided us with info for 10-15 very focused articles that had proprietary industry data, which we then published on our blog and promoted to bloggers and writers who cover our industry. This kind of activity generated dozens of links to our site from influential industry sites like Wedlock.com, which has played a large role in increasing our site traffic by 168 percent this year.” Read more on how to measure your site's online influence.
Take on Speaking EngagementsJasbina Ahluwalia, an attorney turned entrepreneur who founded Intersections Match, a personalized matchmaking service for South Asian singles, says that speaking at events like conferences often leads to interesting PR opportunities. For example: “I recently spoke at a national conference for South Asian physicians and was approached by a person who was filmng a documentary,” says Ahluwalia, whose company has also been profiled in other outlets like Entrepreneur and the Chicago Tribune. Learn how to improve your presentation skills.
Apply to Awards ProgramsWhile applying to annual industry awards or even more broad-based ones like the Inc. 5000 can be time consuming, they can also attract the attention of the media and new customers, says Judy Sultan, who is the PR manager for Xtreme Lashes, a company specializing in semi-permanent eyelash extensions “Recognition for your innovative idea or good business practices will give you an easy way to publicize your company,” she says. “And winning one award gives you leverage to win another.” Be CharitableRyan Carlin of Roaming Hunger says that good press also results from good deeds. “Attaching yourself to a benefit or charity is one of the easiest and most beneficial practices in PR,” he says. “Consumers love hearing about charitable organizations and their events, and journalists know this.” Get tips on corporate social responsibility.
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Posted: 10/3/2011
FRIDAY, MARCH 4, 2011
Posted by Farida HarianawalaIt’s easy to get media attention if you’re a celebrity or a big organization with a sexy product or service that people love and that directly touches the lives of millions of people. But what if you’re a small business that is not making or providing anything that is traditionally considered interesting or is simply ...boring? A Florida-based printing services company is called Boring Business Systems (no kidding!) An interesting choice of name? As a PR and communications professional, the most common question I hear from small businesses is how can they attract media coverage given the lack the resources available to bigger organizations. The challenge for small businesses is not so much about getting their news out. Even if you have a small budget, there are many tools and channels – free press release distribution sites, blogs, social media – that can help you share your story. The bigger challenge, these days, is to make yourself interesting, especially in the age of information overload where everyone is competing for attention – from the media and various target audiences. But then if Blendtec can sexify a blender, there is hope. Based on my experiences, here are a few tips on how small businesses can attract media attention:1) Tell a storyJournalists are much more than storytellers but they are primarily storytellers (ever wonder why newspaper articles are called stories?) As storytellers, their job is to present information in the most interesting way possible (remember, they are vying for attention too!) And if your business or PR person can achieve this for them, you have a better shot at successfully pitching a story. Unearth the stories behind your work and weave a narrative. Follow the 'show don't tell' principle and focus on the solutions you provide and how they are helping people, rather than just talking about your business and products. Bottomline: Think like a journalist 2) Piggyback on the hottest news/trendsWhen I worked for the Sunday edition of a popular weekly newspaper in Mumbai, a news story that caught fire during one particular week was of a news channel that had conducted a sting operation on the casting couch phenomenon that existed in the Bollywood movie industry. Very soon, this story captured the interest of all print and news media channels and was all most people were talking about.  Flickr Creative Commons - The Red Couch Project by DaveAustria.com Being a Sunday paper, my editor came up with a fresh approach – a story on the most stylish couches in the city that would be featured in our lifestyle section. We generated interest in our story by carrying teaser announcements of our own exclusive 'sting' on casting couches, creating a great amount of curiosity on what we were about to reveal in our weekend issue. This was a perfect opportunity for anyone who owned a furniture store to pitch a story on the hottest or most stylish couches while the casting couch story was in the news but no one actually did. Bottomline: If you’re not big or interesting enough to generate news on your own, look out for what’s already in the news or an emerging trend and how you can tie your own product or service to it. Word of caution: Be sensitive when dealing with events or tragedies in the news that have affected human lives. Trying to get press coverage at an inopportune moment can come across as being callous, even predatory. 3) Offer your expertiseServices such as Help a Reporter Out (HARO) are quite useful because they help connect reporters who are looking for sources for a particular story with organizations or individuals who can provide expert opinion on the same. It can be a perfect opportunity for a small business to get quoted and receive coverage without having to send press releases to dozens of news organizations, hoping that at least someone will be interested in their story. News organizations such as NPR also have Facebook pages where they ask questions and invite sources and monitoring these pages for a suitable opportunity may also help you attract coverage. Apart from newspapers, trade publications offer the best opportunity to reach a targeted audience through media coverage. Bottomline: Be proactive in looking out for opportunities and responding to them. 4) Organize community programs and eventsWhat does a pizzeria have to do with scholarships for kids? Absolutely nothing. But that’s how a restaurant in Chicago is driving its public relations efforts. Instead of spending on advertising, the restaurant invests in social responsibility programs that actually help the community and this brings in new customers and generates a lot of buzz. (Read the case study here.) If you’re a local business, it makes even more sense to focus on direct community outreach through such programs and generate local press coverage in the process. Bottomline: Do good, keep it genuine and the rest will follow.
http://www.socialmediaprism.com/2011/03/how-to-attract-media-coverage-for-your.html
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Posted: 9/27/2011
Preparing to launch your start-up means more than simply making sure you have a viable product and potential customers. Here are five tips on how to prepare yourself to be a founder.
 Whiskeygonebad via Flickr Founders have to be ready to deal with whatever challenge may arise, Bradberry says, because, no matter how well prepared the founder is, his or her company will almost certainly take an unexpected turn. Related ToolsJohn Bradberry was fascinated by the idea of how someone may prepare to start a company. Bradberry, himself an entrepreneur and venture capitalist, has worked for two decades as a consultant to small business owners, and he found himself attracted to the story of one of his clients, Decision One Mortgage founder JC Faulkner. “I wanted to understand why it worked so well, how did he bring the pieces of the puzzle together, and how does that apply to start-ups of other types,” Bradberry says. For answers, he went first to academic research on the subject, and then thought back on his own experience as an entrepreneur. “One of the concepts that crystallized for me was readiness,” Bradberry says. In his book 6 Secrets of Startup Success,Bradberry puts forward five steps that he says will help a person prepare to start a company. While laying the foundation for a successful company means making sure that one has a marketable product or service that will reach paying customers, founders who have already achieved some measure of success say that a dose of personal preparation may help a founder weather the early stages. Here are Bradberry’s five steps, along with words of advice from entrepreneurs who have learned the value of personal preparation. Step 1: Clarify your reasons and your goals. Property management company Renter’s Warehouse has been the most successful of Brenton Hayden’s start-ups, but his failed companies have come with their lessons, too. Hayden, who calls himself “a great salesman,” was working at Kellogg’s until he was laid off eight years ago. After someone tipped him off to the money to be made in real estate, Hayden found a job working for someone else in the industry. He lasted about six months. “I realized I could do most of this on my own,” Hayden says. He launched Renter’s Warehouse in 2006. Since then, he has launched a number of other companies, none of which has met the same degree of success. After his tax accountant suggested that starting another company may help him qualify for deductions, Hayden started a limousine company in 2008. “In short order I became the number one most booked limousine company in Minnesota,” Hayden says. And though Hayden says his limousines were the nicest in the Minnesota area, his company stalled. Hayden wasn’t losing money, but he wasn’t supporting the company, either; his attention was elsewhere. He broke even every year, running his limousine services at below-market rates. Other limo companies in the area tried to keep up, but since they were in business to make money, they couldn’t beat his rates. “I am pretty much sure that I am responsible for the total collapse of the limousine business in Minnesota,” he says. Hayden sold the company on New Year’s Eve of 2010. “Really do your research,” Hayden advises any entrepreneur, whether they are starting their first company or their fifth. Don’t rely on a great idea, he says. “I call great ideas the death of your company and your personal finances. Often if you’re starting up they’re both going down the drain.” Dig Deeper: How to Set Business Goals
Step 2: Understand your entrepreneurial personality. Southwestern Missouri isn’t the first place most people would think to start a company selling spices. Yet that is exactly what Jeff Brinkhoff chose to do, building the company out of his father’s milk barn with $25,000 in cash. “It was a one man operation until I found somebody to help me package the first few orders,” Brinkhoff says. Nine years later and with $6.3 million in revenue, his company—Red Monkey Foods—is No. 465 on Inc.’s list of the fastest growing privately-held companies. As for how he managed to build his company from its beginnings in a town of 800, Brinkhoff says that it was “a matter of tenacity.” The most important quality any entrepreneur can have, Brinkhoff says, is the determination not to fail. “The first thing when you look at the bottom line when you go into this is you have to think one thing and one thing only, and that’s ‘I will not fail,’” Brinkhoff says. “And you have to be careful that it is not ‘I will not fail’ while you’re going down the wrong path.” Dig Deeper: 7 Common Mistakes to Avoid When Starting Up
Step 3: Map your skills and experience.
Bryan Janeczko worked at Morgan Stanley before founding NuKitchen, a start-up he sold to Nutrisystem two years ago. Now Janeczko has a new venture, an online start-up incubator called Wicked Start. Understanding one’s own experience is critical in the early stages of starting up, he says. “Many entrepreneurs I speak with have great ideas and even a great plan, but 99 percent of them have no practical industry-related experience,” he says. Like many entrepreneurs, figuring out what he did not know almost cost him his business. Janeczko said he was health conscious before founding NuKitchen, an online diet service, but he didn’t have any experience in food service. “That nearly put us out of business after losing $500,000 over the course of one year,” he says. “The solution is to either moonlight part-time, volunteer, or—better yet—take a paid role in as senior a position as possible in a business that most resembles your business model. At minimum, bring on a co-founder with the experience to help you.” Dig Deeper: The Young Entrepreneur's Survival Kit
Step 4: Leverage your relationships and resources. When Bradberry advises entrepreneurs to leverage their relationships and resources, he means that they should contact all sorts of qualified people in business who can help them make connections and network and make all sorts of other judicious business moves that will nudge them toward profitability. And then there's A.W. Pickel III, who chose to leverage the relationships of his young children and the resources provided by a professional skeptic who was expert at downing a six-pack. Pickel was 36 years old, an employee at a savings and loan bank, and married with four children when, after working a late night preparing files that he says probably netted the bank about $15,000, his boss chastised him for leaving the light on in the executive washroom. Pickel decided he had endured enough. When starting a company, “get counsel from different sources,” Pickel says. For Pickel, that meant sitting his four children around the kitchen table and asking them for suggestions for his new company’s name. “Their name was Pickel’s Mortgage,” Pickel says. “That didn’t fly.” And if wisdom can come from the mouth of babies, why shouldn’t everyone have an ounce of truth to dispense? Pickel felt he needed to get some advice from someone who would tell him the truth, who would not be uncomfortable telling him his idea was a disaster. “I don’t wear my religion on my sleeve, but I do go to Church,” Pickel says. “One of the guys I had gotten to know was a guy named Joe Gray. He’s one of the least religious guys I know.” Because of that, Pickel says, he felt that he could trust Gray to be skeptical. “I knew he would shoot straight,” Pickel says. Dig Deeper: How to Build Better Business Relationships
Step 5: Position yourself for high performance. Founders have to be ready to deal with whatever challenge may arise, Bradberry says, because—no matter how well-prepared the founder is—his or her company will almost certainly take an unexpected turn. “I find that often the biggest and most healthy businesses look very different from what the founders first envisioned,” Bradberry says. “They responded to what the market was telling them and it was something they could execute on.” To be ready for whatever challenge or opportunity may arise, founders should try to keep their personal lives in order. If one is like Pickel, that may mean finding time to retreat from the world. “My wife says I am wildly entrepreneurial on the outside, but that I’ve cautiously thought through all the options on the inside,” Pickel says. He sets aside time in the early mornings to contemplate the day ahead. “What I do is in my mind I go out a year or two years, and then I examine those consequences. You can’t think when everybody else is yelling at you. You have to do it when no one else is around.”
http://www.inc.com/guides/201108/how-to-prepare-to-launch-your-start-up.html
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Posted: 9/24/2011
How to Use Social Media to Build a Following -- And a BusinessBY DIANA RANSOM
For the uninitiated, the benefits of using social media to launch a business can seem elusive or even scarce. Don't tell that to Lindsay Davis.Last June when she opened Fait Ici, a general store in Montreal, a line of eager shoppers had wrapped around the store, and teams of media professionals were in tow. She logged about five or six good placements out of the event. Not bad for a teeny tiny store that sells locally-produced sundries. At Fait Ici, which translates to "Made Here" in French, one can typically find foodie favorites like leafy greens and fresh produce along with products like soap and body lotion. To comply with Davis' mission, the store's inventory must be produced in a sustainable way, use natural ingredients and made in Quebec. But new shops open all the time and customers -- much less media outlets -- barely raise an eyebrow. So how did she do it? Two little words: social media. About six months before Davis opened her doors, she started blogging about sustainability, green living and local places and faces. She also used Twitter to connect with influential journalists and food writers. She linked to them, and they, in turn, noticed her. So, when the time came to launch the actual store, Davis had built a community of both interested and influential readers. It may seem like Davis got things backwards. After all, whetting people's appetites while the meal isn't anywhere near ready can be tricky. Some would-be customers can grow impatient or even angry if you make them wait too long. But Jason Falls, a social media maven, blogger and author of No Bullshit Social Media (Pearson Education, 2011), says Davis didn't just do everything right, she made it look effortless. "She orchestrated one of the best small business launches ever," he says. Davis did that by providing content and insights about the issues that she and her prospective customers are interested in, says Falls. Then, when the store opened, Fait Ici became a resource for those same people. That's the key, says falls: "You need to be consumer centric, but also business aware."
http://www.entrepreneur.com/blog/220409
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Posted: 9/20/2011
 Peter Shankman is the founder of HARO and is generally regarded as one of the top social media consultants and marketing speakers working today. His clients include Saudi Aramco, NASA, The U.S. Government, Haworth, Disney, Foley Hoag LLP, American Express, and countless others. He blogs at shankman.com.
Earlier this week, Bob Parsons, the CEO of GoDaddy, decided it would be a good idea to shoot an elephant and post graphic video of it on his blog. The move drew ire from animal rights groups and the general public, who lashed out at Parsons and his brand, severely damaging its public image. It begs the question, what do you do when your CEO (or another high-level executive) completely screws up, and puts your brand image in jeopardy? How do you protect the company? More importantly, how do you stop customers from leaving in droves? Here are a few crisis management techniques to keep in mind if that day ever comes.
1. Don’t Spin It, Don’t Fight It
Someone screwed up. Own it and move on. Trying to defend an indefensible act will only make it worse, and spinning it just makes you look that much more guilty. If you own what you’re doing, you might lose some customers, but at least you won’t lose your principles. In the same vein, fighting with your detractors in an online forum (such as your own blog or a social media platform) never has a successful outcome. If you want to contact your detractors directly, do it, but it’s not recommended. Know that anything you email or post is public the second it leaves your computer.
2. Divert Attention Away From Your CEO
If your CEO continues to make gaffes on a regular basis, or his lifestyle simply doesn’t align with your company’s image, trying to change him is pointless. Rather, try and focus on the things your company doeswell — hopefully there are a few. Do you have good customer service? Make it even more awesome and shout about it from the rooftops. Make it your focus in everything you talk about online. Divert attention away from the CEO and focus on your best assets.
3. Be Selective in the Media Outlets You Talk To
Notice that Apple is very selective about which media outlets it will grant interviews to. Be just as selective. If you can control the message just a bit more, it helps. This won’t solve all your problems, but don’t be afraid to turn down the occasional interview from time to time.
4. Route All Media, Social and Otherwise, Through You
Your CEO is known for speaking from the hip, and usually not in a good way. Of course the media is going to try and go straight to him. That’s not ideal in a tense PR management situation, so your job is to ensure all outward communication is routed through you. Don’t let your CEO speak to the media at all, if possible. If you can’t control his blog, at least you can prevent your company from being harpooned on late night TV.
5. Is It Even Worth It?
I once had a client who I honestly believe paid me to give him advice just so he could ignore it. After almost two years of tearing my hair out on a monthly basis, I just decided it wasn’t worth it. If he wanted to bring his company down, he certainly didn’t need my help to do it. Fast forward several years. The company is gone, the man has gone bankrupt and even seen the inside of a jail cell. I made the right call. It was hard to walk away, but sometimes things really do have to end badly or they’ll never truly end. No one likes to deal with an unruly executive, but CEOs can sometimes lose sight of how their actions affect their company. Help them through this as much as you can, but also know when it’s time to cut and run.
http://mashable.com/2011/04/04/fix-ceo-pr-crisis/
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Posted: 9/8/2011
http://answers.onstartups.com/questions/6949/forming-a-new-software-startup-how-do-i-allocate-ownership-fairly/23326#23326
I have come up with an idea for a new social networking application. It's not something I expect to be hugely successful, but I think it does have some potential. I've approached a few close friends and collegues, all of whom really liked the idea. A couple have offered to come on as partners to help develop the idea into a working application. I cannot afford to pay them out-of-pocket for their time (nor do they expect that), and we're all approaching this as a project we'll do on our nights and weekends. Since I think the idea does have the potential to turn into a successful venture, I want to go ahead and solve the ownership/payment issue now before it becomes an issue. I'm leaning towards splitting ownership of the idea among the three of us, and letting that determine how any profits are split later on. Is this the right choice, and if so, what's a fair split? I came up with the idea and have already invested quite a bit of time planning it out (plus I'm sure I'll pay any incidental development expenses out of my pocket), so I feel like I should definitely have a larger share of the ownership. Is that reasonable? I'm also trying to think of some way to reward partners based on effort. I'm not worried about someone signing on then doing nothing, but I do think it's quite possible that one (or more) of us might obsess about the project and put in significantly more effort. If that happens, I think that person should get a proportionately larger share. Any suggestions on how to structure that? asked Jan 21 '10 at 21:07 feedback protected by Joel Spolsky♦ Apr 14 at 20:51This question is protected to prevent "thanks!", "me too!", or spam answers by new users. To answer it, you must have earned more than 10 reputation on this site. This is such a common question here and elsewhere that I will attempt to write the world's most canonical answer to this question. Hopefully in the future when someone on answers.onstartups asks how to split up the ownership of their new company, you can simply point to this answer. The most important principle: Fairness, and the perception of fairness, is much more valuable than owning a large stake. Almost everything that can go wrong in a startup will go wrong, and one of the biggest things that can go wrong is huge, angry, shouting matches between the founders as to who worked harder, who owns more, whose idea was it anyway, etc. That is why I would always rather split a new company 50-50 with a friend than insist on owning 60% because "it was my idea," or because "I was more experienced" or anything else. Why? Because if I split the company 60-40, the company is going to fail when we argue ourselves to death. And if you just say, "to heck with it, we can NEVER figure out what the correct split is, so let's just be pals and go 50-50," you'll stay friends and the company will survive. Thus, I present you with Joel's Totally Fair Method to Divide Up The Ownership of Any Startup. For simplicity sake, I'm going to start by assuming that you are not going to raise venture capital and you are not going to have outside investors. Later, I'll explain how to deal with venture capital, but for now assume no investors. Also for simplicity sake, let's temporarily assume that the founders all quit their jobs and start working on the new company full time at the same time. Later, I'll explain how to deal with founders who do not start at the same time. Here's the principle. As your company grows, you tend to add people in "layers". -
The top layer is the first founder or founders. There may be 1, 2, 3, or more of you, but you all start working about the same time, and you all take the same risk... quitting your jobs to go work for a new and unproven company. -
The second layer is the first real employees. By the time you hire this layer, you've got cash coming in from somewhere (investors or customers--doesn't matter). These people didn't take as much risk because they got a salary from day one, and honestly, they didn't start the company, they joined it as a job. -
The third layer are later employees. By the time they joined the company, it was going pretty well. For many companies, each "layer" will be approximately one year long. By the time your company is big enough to sell to Google or go public or whatever, you probably have about 6 layers: the founders and roughly five layers of employees. Each successive layer is larger. There might be two founders, five early employees in layer 2, 25 employees in layer 3, and 200 employees in layer 4. The later layers took less risk. OK, now here's how you use that information: The founders should end up with about 50% of the company, total. Each of the next five layers should end up with about 10% of the company, split equally among everyone in the layer. Example: -
Two founders start the company. They each take 2500 shares. There are 5000 shares outstanding, so each founder owns half. -
They hire four employees in year one. These four employees each take 250 shares. There are 6000 shares outstanding. -
They hire another 20 employees in year two. Each one takes 50 shares. They get fewer shares because they took less risk, and they get 50 shares because we're giving each layer 1000 shares to divide up. -
By the time the company has six layers, you have given out 10,000 shares. Each founder ends up owning 25%. Each employee layer owns 10% collectively. The earliest employees who took the most risk own the most shares. Make sense? You don't have to follow this exact formula but the basic idea is that you set up "stripes" of seniority, where the top stripe took the most risk and the bottom stripe took the least, and each "stripe" shares an equal number of shares, which magically gives employees more shares for joining early. A slightly different way to use the stripes is for seniority. Your top stripe is the founders, below that you reserve a whole stripe for the fancy CEO that you recruited who insisted on owning 10%, the stripe below that is for the early employees and also the top managers, etc. However you organize the stripes, it should be simple and clear and easy to understand and not prone to arguments. Now that we have a fair system set out, there is one important principle. You must have vesting.Preferably 4 or 5 years. Nobody earns their shares until they've stayed with the company for a year. A good vesting schedule is 25% in the first year, 2% each additional month. Otherwise your co-founder is going to quit after three weeks and show up, 7 years later, claiming he owns 25% of the company. It nevermakes sense to give anyone equity without vesting. This is an extremely common mistake and it's terrible when it happens. You have these companies where 3 cofounders have been working day and night for five years, and then you discover there's some jerk that quit after two weeks and he still thinks he owns 25% of the company for his two weeks of work. Now, let me clear up some little things that often complicate the picture. What happens if you raise an investment? The investment can come from anywhere... an angel, a VC, or someone's dad. Basically, the answer is simple: the investment just dilutes everyone. Using the example from above... we're two founders, we gave ourselves 2500 shares each, so we each own 50%, and now we go to a VC and he offers to give us a million dollars in exchange for 1/3rd of the company. 1/3rd of the company is 2500 shares. So you make another 2500 shares and give them to the VC. He owns 1/3rd and you each own 1/3rd. That's all there is to it. What happens if not all the early employees need to take a salary? A lot of times you have one founder who has a little bit of money saved up, so she decides to go without a salary for a while, while the other founder, who needs the money, takes a salary. It is tempting just to give the founder who went without pay more shares to make up for it. The trouble is that you can never figure out the right amount of shares to give. This is just going to cause conflicts. Don't resolve these problems with shares. Instead, just keep a ledger of how much you paid each of the founders, and if someone goes without salary, give them an IOU. Later, when you have money, you'll pay them back in cash. In a few years when the money comes rolling in, or even after the first VC investment, you can pay back each founder so that each founder has taken exactly the same amount of salary from the company. Shouldn't I get more equity because it was my idea? No. Ideas are pretty much worthless. It is not worth the arguments it would cause to pay someone in equity for an idea. If one of you had the idea but you both quit your jobs and started working at the same time, you should both get the same amount of equity. Working on the company is what causes value, not thinking up some crazy invention in the shower. What if one of the founders doesn't work full time on the company? Then they're not a founder. In my book nobody who is not working full time counts as a founder. Anyone who holds on to their day job gets a salary or IOUs, but not equity. If they hang onto that day job until the VC puts in funding and then comes to work for the company full time, they didn't take nearly as much risk and they deserve to receive equity along with the first layer of employees. What if someone contributes equipment or other valuable goods (patents, domain names, etc) to the company? Great. Pay for that in cash or IOUs, not shares. Figure out the right price for that computer they brought with them, or their clever word-processing patent, and give them an IOU to be paid off when you're doing well. Trying to buy things with equity at this early stage just creates inequality, arguments, and unfairness. How much should the investors own vs. the founders and employees? That depends on market conditions. Realistically, if the investors end up owning more than 50%, the founders are going to feel like sharecroppers and lose motivation, so good investors don't get greedy that way. If the company can bootstrap without investors, the founders and employees might end up owning 100% of the company. Interestingly enough, the pressure is pretty strong to keep things balanced between investors and founders/employees; an old rule of thumb was that at IPO time (when you had hired all the employees and raised as much money as you were going to raise) the investors would have 50% and the founders/employees would have 50%, but with hot Internet companies in 2011, investors may end up owning a lot less than 50%. Conclusion There is no one-size-fits-all solution to this problem, but anything you can do to make it simple, transparent, straightforward, and, above-all, fair, will make your company much more likely to be successful.
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Posted: 8/8/2011
Jennifer WatersWant to be a millionaire? Don’t overspend and use debt wisely. We all may not be millionaires but there are plenty of financial and life-planning secrets we can learn from the well-heeled. Most people know that wealth in the U.S. is in the hands of a small percentage of the total population. And, today, most of those folks with a net worth of $1 million or more have earned it themselves. They’re mostly entrepreneurs who create everything from high-speed networks to garbage haulers. They dig ditches and build houses and grow corn and make jewelry. They deal stamps or coins or artwork and control pests and cut lawns. They also cure people and give them new teeth. Others will defend their neighbors or even feed them. And they’re not big spenders. In fact, most of those with big bucks live well under their means — think about Warren Buffett still living in that modest Omaha home — and they put their money instead toward investments that help them stockpile more wealth. “Wealth is what you accumulate, not what you spend,” according to Thomas Stanley and William Danko, the authors of the seminal tome on America’s wealthy “The Millionaire Next Door,” first published in 1996. “It is seldom luck or inheritance or advanced degrees or even intelligence that enables people to amass fortunes,” the authors wrote. “Wealth is more often the result of a lifestyle of hard work, perseverance, planning, and, most of all, self discipline.” Wealth is defined in many ways, though it’s generally determined as the value of everything you own minus debts. But there’s a difference between marketable assets — things you own that could be liquidated rather quickly, like stocks, bonds, real estate — and possessions like cars, clothing and household items that you use regularly and aren’t likely to sell. Income alone does not make one rich. It helps, of course, to build wealth, but the financially independent look to their salaries as a means to an end, which is that pile of cash. “The wealthy don’t spend their wealth on discretionary purchases,” said Pam Danziger, founder of Unity Marketing, a consumer market-research firm specializing in luxury goods and experiences. “They get rich by maximizing the value of their investments.” That doesn’t mean they don’t pay big bucks for pretty shoes or outfits, but that most choose those items carefully and shop for value and quality. “They truly evaluate the purchase as an investment, not an expense,” Danziger said. What they do though is diversify those investments, which gives them more flexibility to ride out difficult times. “The wealthiest clients have very, very diversified portfolios that go way beyond just stocks and bonds into hedge funds, currencies, commodities and emerging markets,” said Leslie Lassiter, managing director of the JPMorgan Private Wealth Management. “There are many, many mutual funds out there that will allow you to get exposure to those types of asset classes,” Lassiter said. Among the biggest differences between those flush with cash and those wishing they were is in how they pay for things. Millionaires tend to use cash for most of their purchases, including cars, homes and boats. For the average wage earner, of course, that’s not always an option but it still holds this lesson: Don’t look to debt to fund your lifestyle. Most wealthy people use debt for investment purposes and are careful not to over-leverage themselves. “A prudent use of debt is an appropriate thing for anyone,” Lassiter said. They also plan very well and spend a lot of time at it. Many are compulsive savers and investors who often say the journey to riches was far more fun than the reaching the goal. And they’re patient, willing to invest in the long term and wait it out. “They stick with their investments and are more likely to have a financial plan,” said Sanjiv Mirchandani, president of National Financial, a subsidiary of Fidelity Investments. Many take the long-term approach to investing because they’re working at being financial independent. When they retire, for example, many will know exactly how much they need to live on, to give away and to leave as a legacy. “The best ones really understand how much liquidity they need to cover their expenses and make sure they have that much cash on hand,” Lassiter said. “That’s something the average person should do as well.” At the same time, she said most are very careful about leveraging debt. “The wealthy tend to balance between the two,” she said. Recommendations for accumulating wealth: Live below your means: People with high incomes who spend all that money are not rich; they’re just stupid. Plan: That means plan for today, tomorrow and 30 years after retirement. Take time doing it too and spend time monitoring it every day. Use budgets and stick to them. Diversify: As Lassiter said, look for mutual funds that allow you exposure to asset classes that aren’t related to each other. Reduce use of credit and turn to cash: It’s easier, of course, for a prosperous person to pay for a house in cash than it might be for most folks, but credit-card debt for luxury purchases or extravagant vacations will never pave a road to riches. Have access to cash: While the rich keep much of their wealth invested, they can get cash when they need it. “Have some kind of line of credit available, like a HELOC (home-equity line of credit) that you never use,” Lassiter said. “It’s a safety valve.” She suggests a year’s worth of cash to cover expenses; Danziger thinks three years worth is a better bet. Spread cash around: When the wealthy pulled money out of the equities markets two and three years ago, they opened a bevy of bank accounts, all guaranteed up to $250,000 of deposits by the Federal Deposit Insurance Corp. Bring your children into the mix, and remember the importance of estate planning: The affluent can go to great lengths to teach their children about money and how to manage it — something every family should do. Though talking about money with children consistently ranks as one of the most dreaded conversations, it’s important that your heirs know where all the bank accounts and safe-deposit boxes are — even that their names are on them, too — who the attorney is, where the will and trusts are filed.
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Posted: 8/8/2011
Starting a business can be quite daunting. One of the biggest reasons we tell ourselves not to start is the capital we need to start a business. However, we must realize that time's have changed and we're at a stage in the game where capital does not have to be that intimidating of a figure. One reason why capital has gone down is the advent of "co-wo's". Co-wo is a business that allows for businesses to share rent expenditure. These businesses pay a nominal rent expense (relative to paying rent on their own) in exchange for a virtual office, a receptionist, office space, and other perks that vary from different co-wo businesses. Yunnoh actually has a couple of co-wo businesses. Feel free to add them up and watch your expenses whittle down. And rent as we know makes up a huge part of the capital.
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Posted: 1/6/2011
7 Common Mistakes Young Entrepreneurs can Avoid BY KING SIDHARTH  SEP. 20, 2010  40 COMMENTS
Entrepreneurs hate being preached to, but they love sharing. They share the lessons they learn, the success they achieve and the fun they have. While mentoring so many young entrepreneurs, I saw some common mistakes that many of them made. Included is a of things to look out for so that you don’t make the same mistakes that they did. 
Look for Funding before you Work on IdeaIf you are a young entrepreneur you probably aren’t working an idea that needs millions of dollars to start. If so, you are on wrong track. Don’t ask anyone to invest time/money untll you’ve done that yourself. Often entrepreneurs sit on chairs waiting for money to come in so they can start. If you ask them, they won’t put their money into their own project. If you wont put your money in, why would anyone else? If you can’t trust yourself, no one can. And if you do, you won’t need to ask anyone – people will give. Delay Important DecisionsYoung entrepreneurs delay decisions because ‘they are important.’ Irony! Because it is important – you should make the decision now and not delay it. Startups are very dynamic and fast in nature. Today you make a decisions and it’s executed within hours, unlike corporates where it can take years. Make it and make it now and if you feeling doubtful, remember: There is no wrong or right decision – just make a decision and prove it right. Sail in Too Many BoatsTalented people tend to get into too many projects because every idea excites them. It’s good when you are experienced and know how to handle your time and yourself. Too many boats bite you back when you do a start-up. It’s really hard to pull back from all the stuff you were doing so you can focus on your start-up. Its better you keep the number of projects manageable. If you think you can collaborate on a few more projects – that’s where you know that you have enough. Don’t wait till you feel that you can’t take it anymore. If you into too many projects – you might be building plan B’s. All that does is sure up plan B. Note: Not all entrepreneurs working on multiple projects are sailing in too many boats. There are other dynamics too, but you get the idea. Restrain from Sharing & Talking About the IdeaYou have a brilliant idea, and you want to keep it secret, keep it safe. Guess what? The world is not safe for ideas and it will be executed soon – if not by you then by someone else. I will get a bit philosophical here to make my point clear… ideas are not clump of thoughts that you generated. Ideas are a flow of thoughts that flow to and through many different people. Trust me, you will not be the only one with this idea. Depend on Formal EducationI hear so many of say, “I want to earn my MBA or this and that course so I can learn more before I start out.” First of all that is not education – just literacy. When you start you will notice education comes though experience. There is no edge that those degrees can give you over experience of a start-up. I am not suggesting that you discontinue your education, but don’t be dependent on it. Ignore Inner CallingThey call it gut feeling, inner calling, passion and all sorts of things. The more I progress, the more I learn to trust that more than anything else. No matter what anyone (including me) tells you – do what you feel like. Even if you fail, you will know that you made that choice. Give up Too Soon – Success is 10 inches AwayIn the book Think and Grow Rich, by Napolean Hill, there was a man who spent all is money trying to find gold in an area because he was sure he will find it. Just when he was 10 inches away from it – he gave up! Success is guaranteed, all you need to do is survive untill it hits you. Keep going, and remember ‘Life is supposed to be fun’ and if it isn’t you, and only can change it. My intent with this post is not preaching, just sharing my thoughts so maybe someone can benefit from it.
http://epiclaunch.com/7-common-mistakes-young-entrepreneurs-can-avoid/
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Posted: 12/22/2010
6 Predictions for Digital Advertising in 2011
Do you like this story?Jesse Thomas is the CEO and Founder of JESS3, a Creative Interactive Agency. JESS3 designs products and experiences for brands like Google, Nike, Facebook, MySpace, C-SPAN, Microsoft and NASA. “Likes,” views and followers were all the rage in 2010. Despite the social media community emphasizing engagement instead of reach, media agencies quickly learned that engagement doesn’t scale easily, making it difficult to sell. Enter Facebook , YouTube and Twitter. As consumer use of social media spiked, the leading social networks retooled their advertising products to satisfy the newfound demand from brands. Instead of fizzling out like the popular online communities of yesteryear, they are driving toward profitability after several years of trying to figure out what they wanted to be when they grew up. On the flip side, as consumers incorporate social media more into their daily lives, alternatives to the “big three” in the form of niche and location-based social networks have increased in appeal. Advertisers willing to experiment with media campaigns on these networks will have a distinct advantage moving forward as consumers become desensitized to text, display and even rich media ads. Whether they choose to go big or small, the social web equips advertisers with significantly more consumer data points than ever before to improve the targeting and relevance of online advertising. Below are six predictions for digital advertising in 2011.  .
1. Local Advertising Becomes Relevant Again With Location
Location-based advertising will continue to grow in 2011 as Facebook expands the technology with its location platform, Places. In addition to Facebook, many other players in the checkin space, including Foursquare ,Yelp, Shopkick, and last but not least, Google, will condition shoppers to expect a deal or coupon for alerting friends of their whereabouts. Relevance will distinguish these services from each other as the two biggest players, Facebook and Google, have the most powerful social graph data to customize deals for consumers. Don’t count Groupon out, though. It more than makes up for its comparative lack of technology with brand equity and scale, as its massive sales force will remain dominant in 2011 by further monetizing local commerce beyond the recently launched self-service platform.
2. Silicon Valley Will Be the Next Madison Avenue
The coolest job in advertising used to be working for an agency in New York City or Chicago, but these days the dreams jobs are at Facebook and Twitter. Not unlike Mail.ru Group (formerly Digital Sky Technologies) attracting top bankers from Goldman Sachs, as Facebook and Twitter start generating more revenue, advertising and marketing talent will start heading West to cash in.
3. Influencers Will Be the Celebrities of the Social Web
Consumers are constantly scouring the social web to decide where to eat, shop and stay; so it comes as no surprise that brands are desperately analyzing Twitter, blog posts and reviews to understand not only who has the largest audience, but how much influence individuals have. YouTube’s Partner Program is being joined by new services such as Klout to create an official layer of social credibility. Klout scores are being used by The Palms Hotel in Vegas to gauge discounts for hotel guests, including through the “Klout Klub,” which “will allow high-ranking influencers to experience Palms’ impressive set of amenities in hopes that these influencers will want to communicate their positive experience to their followers.” Creating thoughtful ways to leverage your influencers is the thing to focus on. People have always said it’s cheaper to keep and please the customers you have, than acquire new ones.
4. Small Will Be the New Big for Social Networks
 Despite Mark Zuckerberg’s unwavering belief that an open and connected social web is best for society, early adopters are starting to experiment with new platforms designed to communicate and share media with smaller audiences. Path has shown us the potential of limiting our social networks to 50 people. Fast Society is a new iPhone communication service that allows the user to create small groups to text with on the fly, and the groups last for three days. Facebook also realizes some of us may prefer communicating with smaller networks. Facebook’s new Groups feature allows us to segment our friends into personal, professional and interest-based communities, and openly engage in conversations not meant for our mother or colleagues to hear. Watch for more of these smaller, closed networks to launch in 2011 as people seek deeper connections online.
5. Brands Will Become More Like Media Companies
Social media has empowered brands to break their own news instead of relying on advertising or PR to disseminate their message. As brands become increasingly comfortable with social media on the whole, more budget and attention will be focused on high quality content created specifically for the social web. We will see more Facebook Pages like Skittles that appear to employ comedy writers to keep the content fresh. It would seem that “a brand’s best bet in social media is randomness.”
6. Facebook “Likes” Will Be Important for Your Brand
While it’s still unclear exactly how much a Facebook “Like” is worth to a brand, the following video sums up why Facebook is so important. http://mashable.com/2010/12/21/advertising-industry/
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