I spent the weekend down in Austin with some girlfriends catching up, running a half marathon, and eating our body weight in a combination of mexican food, ice cream, and pizza. All in all a good weekend!
As usually happens though, especially since we all met in business school, talk turned to how everyone is doing in their current work positions. While my friends have some pretty impressive work projects with some pretty impressive companies, at one point they did go off on the mind-numbing beaurocracy of their respective business environments that simply drives them nuts. For example, the fact that for any single project or question, an email is sent out to a complete email list and every single person on it feels the need to add something but no one can step up and make a hard and fast decision. This inevitably leads to long long long email chains that simply reiterate points with no one actually taking a stand. That's just one example of many.
And it's stuff like that which I certainly don't miss. Of course it helps that the dogs can't type which in turn curtails their emailing ability severely! But all that other beauocratic craziness that simply has everyone running to meetings and no one actually making a decision. It's what drove me absolutely nuts in my last corporate position and it's definitely something I don't miss now.
Of course an interesting question to ponder is, assuming the company grows, how does one create a culture that doesn't let itself be mired in such a deep level of ineffeciancy. I don't yet have an answer to that but it is something I think about as I inch ever closer to that first hire.
Tuesday, January 29, 2008
Wednesday, January 23, 2008
Today's Pondering
I was just sitting here thinking about how often here in the States the entrepreneurial dream is partly driven by the success stories we hear. You know, the 22yr old kid who started up FaceBook, the woman who started up the bodyshaping, seamless undies that are a huge hit with Oprah and others, the "friend of a friend" who got the sole distribution rights to Swingline staplers (ok, I made that last one up).
So in many cases, even after doing all our due diligence and research, we entrepreneurs (and those who dream of being one some day) are dreamers and we typically like to dream big. To be completely truthful, my dream was to build this business and then sell it for $15M. That figure's been rounded down slightly in my mind to about a $5M sell price and I have a ways to go to even having a shot of making that a reality.
But I was sitting here wondering about all those people who start off small businesses that essentially stay small. Would I be happy doing this for the next 10-15-20 years if it continued to stay small? Would you?
Now know that I wouldn't be able to continue on this vein if the company didn't break even, but let's say that your company is turning in a profit that is either enough for you to comfortably live on or in combination with your spouse's income you and your family can live comfortably but not outlandishly on. Would you still be able to run the business knowing that? Would you question where you would be in your corporate career had you not gone the entrepreneurial route?
As I sit here right now I can say that if the business were to stay exactly the way it is today I couldn't keep doing this for the rest of time. However, if I had a handful of good employees so I didn't necessarily feel like all of this was on my shouldars every minute of every day, then yes, I do think I could even if I didn't have my $5M selling option. I think I could keep doing it because it provides me with a tremendous amount of stimulation, opportunity to learn, and freedom of creativity that is a tough combination for me to get in a corporate job. At the same time, with a few employees, I would have substantially more flexibility. Not to say that I wouldn't work just as hard, but as I think about one day having kids, that flexibility is priceless in being able to balance kids' need for parental time and attention (and my desire to spend time with them as well) and my own need for outside adult stimulation. And in that way my business, while not providing me with that dream $5-$15M, would provide me with the life that I want regardless and isn't that worth working towards?
So in many cases, even after doing all our due diligence and research, we entrepreneurs (and those who dream of being one some day) are dreamers and we typically like to dream big. To be completely truthful, my dream was to build this business and then sell it for $15M. That figure's been rounded down slightly in my mind to about a $5M sell price and I have a ways to go to even having a shot of making that a reality.
But I was sitting here wondering about all those people who start off small businesses that essentially stay small. Would I be happy doing this for the next 10-15-20 years if it continued to stay small? Would you?
Now know that I wouldn't be able to continue on this vein if the company didn't break even, but let's say that your company is turning in a profit that is either enough for you to comfortably live on or in combination with your spouse's income you and your family can live comfortably but not outlandishly on. Would you still be able to run the business knowing that? Would you question where you would be in your corporate career had you not gone the entrepreneurial route?
As I sit here right now I can say that if the business were to stay exactly the way it is today I couldn't keep doing this for the rest of time. However, if I had a handful of good employees so I didn't necessarily feel like all of this was on my shouldars every minute of every day, then yes, I do think I could even if I didn't have my $5M selling option. I think I could keep doing it because it provides me with a tremendous amount of stimulation, opportunity to learn, and freedom of creativity that is a tough combination for me to get in a corporate job. At the same time, with a few employees, I would have substantially more flexibility. Not to say that I wouldn't work just as hard, but as I think about one day having kids, that flexibility is priceless in being able to balance kids' need for parental time and attention (and my desire to spend time with them as well) and my own need for outside adult stimulation. And in that way my business, while not providing me with that dream $5-$15M, would provide me with the life that I want regardless and isn't that worth working towards?
Tuesday, January 22, 2008
PayPal Revisited
In an earlier post I mentioned that I had been looking at the PayPal Merchant Services as a potential new merchant account. I've finally had a chance to integrate the PayPal Shopping Cart into my new "temporary" website (to put up while we're getting the new super-snazzy one up and running) and so far I've been really impressed with the service.
I haven't yet tried their virtual terminal but the Shopping Cart is a free service and they simply take 1.9-2.9% + .30/per transaction off of each order that's placed through my website which is essentially inline with most other merchant rates. I received my first "test" order the other day and the feedback I got was that the cart was easy to use on my tester's end and I also liked the backend functionality on my end (aka - easy for a technophobe to use) which enables me to send emails to the buyer alerting them to when the product has shipped and the tracking information.
The virtual terminal, which I plan on buying, costs $20/month regardless of how many transactions you run through it and then you pay the % and transaction fees on top of that as you do with other merchant accounts. However, it looks like I'll save myself about $40/month using the PayPal terminal as opposed to my current virtual merchant account. Since I'm always in the mood to save money, not to mention the fact that I'm unsure what this economy will do to my industry this year, I figure I'll give the new PayPal virtual terminal a try.
I'm just waiting to make sure that the tester money is accurately deposited into my bank acocunt and then will go forward with testing the virtual terminal.
I haven't yet tried their virtual terminal but the Shopping Cart is a free service and they simply take 1.9-2.9% + .30/per transaction off of each order that's placed through my website which is essentially inline with most other merchant rates. I received my first "test" order the other day and the feedback I got was that the cart was easy to use on my tester's end and I also liked the backend functionality on my end (aka - easy for a technophobe to use) which enables me to send emails to the buyer alerting them to when the product has shipped and the tracking information.
The virtual terminal, which I plan on buying, costs $20/month regardless of how many transactions you run through it and then you pay the % and transaction fees on top of that as you do with other merchant accounts. However, it looks like I'll save myself about $40/month using the PayPal terminal as opposed to my current virtual merchant account. Since I'm always in the mood to save money, not to mention the fact that I'm unsure what this economy will do to my industry this year, I figure I'll give the new PayPal virtual terminal a try.
I'm just waiting to make sure that the tester money is accurately deposited into my bank acocunt and then will go forward with testing the virtual terminal.
Friday, January 18, 2008
Relationships
Relationships are always a tricky business, aren't they? But sometimes they can just seem to blossom into more then you ever expected.
In my work space there is another small business owner and she and I have become good friends over the past year - celebrating each other's successes and commisserating with one another when needed. She is in a *completely* different field from me so I've never thought much of it other than our friendship and the ability to bounce entrepreneurship thoughts and ideas off of one another.
Turns out her mind has been working alot faster than mine and she's interested in private-labeling a product that I would make for her. Keep in mind that she approached me with the new product idea but because of the licensing and potential liability involved (all of which I have/am covered for) it makes more sense for her to potentially outsource to me.
So I went into our work space today and developed the new product that, I must admit, turned out far better then even I imagined and my friend was completely blown away.
Now here comes the potentially big news. I thought that this would just be something she'd sell at the local farmer's markets in our area which would bring in a little extra cash but nothing substantial. Turns out that she may be getting space in Pike's Place Market (if you're not familiar with the name look it up - a huge deal here in Seattle for both locals and tourists alike) and she would be interested in carrying the product there in addition to her other products. That would be a HUGE deal (it gets over 8billion visitors a year) and could end up being that elusive continuous wholesale contract I've been praying for over the past two years - one that potentially could cover my monthly fixed costs which would leave any other income coming in going towards my variable costs (which are low) and, god-willing, an actual profit!
Obviously there are still a number of things that have to be worked out but the first step today was very positive so I'm going to try and keep my fingers crossed without getting my hopes up too much.
In my work space there is another small business owner and she and I have become good friends over the past year - celebrating each other's successes and commisserating with one another when needed. She is in a *completely* different field from me so I've never thought much of it other than our friendship and the ability to bounce entrepreneurship thoughts and ideas off of one another.
Turns out her mind has been working alot faster than mine and she's interested in private-labeling a product that I would make for her. Keep in mind that she approached me with the new product idea but because of the licensing and potential liability involved (all of which I have/am covered for) it makes more sense for her to potentially outsource to me.
So I went into our work space today and developed the new product that, I must admit, turned out far better then even I imagined and my friend was completely blown away.
Now here comes the potentially big news. I thought that this would just be something she'd sell at the local farmer's markets in our area which would bring in a little extra cash but nothing substantial. Turns out that she may be getting space in Pike's Place Market (if you're not familiar with the name look it up - a huge deal here in Seattle for both locals and tourists alike) and she would be interested in carrying the product there in addition to her other products. That would be a HUGE deal (it gets over 8billion visitors a year) and could end up being that elusive continuous wholesale contract I've been praying for over the past two years - one that potentially could cover my monthly fixed costs which would leave any other income coming in going towards my variable costs (which are low) and, god-willing, an actual profit!
Obviously there are still a number of things that have to be worked out but the first step today was very positive so I'm going to try and keep my fingers crossed without getting my hopes up too much.
Thursday, January 17, 2008
Worth Their Weight In Gold
As much as I complain about getting my books up to date (proud to say - I finished up about 8 hours before my meeting with the accountant!), I must admit that a good bookkeeping/accountant is absolutely worth their weight in gold.
I originally got my accountant because I wanted someone else to do my business taxes to 1. make sure they were done correctly and 2. have the liability of any mistakes rest with them as opposed to 100% on me.
However, my accountant has turned out to be so much more than simply a tax-filer and I imagine that's probably the case with the majority. What I love about my accountant is that she focuses on small businesses so is able to give me cost-effective recommendations for things like payroll services (another thing I want to outsource and not worry about the liability issue). But she also sees that my business is growing, however slowly, and spent three hours with me yesterday to rework my QuickBooks so that it can now better keep track of the necessary business expenses and tax liabilities as the business grows.
I know I'm going to cringe when the bill finally comes in - but honestly it was probably some of the best money I've spent in a long time. For example, I had no idea I had to send a 1099 to service providers (my PR folks) and file copies of the 1099 and 1096 with the IRS. I simply had no idea that had to be done and it could, ultimately, have gotten me into a lot of trouble.
So my recommendation to entrepreneurs is to go out and find yourself a good accountant who will take the time to walk you through where you are now and help your business grow in the future.
I originally got my accountant because I wanted someone else to do my business taxes to 1. make sure they were done correctly and 2. have the liability of any mistakes rest with them as opposed to 100% on me.
However, my accountant has turned out to be so much more than simply a tax-filer and I imagine that's probably the case with the majority. What I love about my accountant is that she focuses on small businesses so is able to give me cost-effective recommendations for things like payroll services (another thing I want to outsource and not worry about the liability issue). But she also sees that my business is growing, however slowly, and spent three hours with me yesterday to rework my QuickBooks so that it can now better keep track of the necessary business expenses and tax liabilities as the business grows.
I know I'm going to cringe when the bill finally comes in - but honestly it was probably some of the best money I've spent in a long time. For example, I had no idea I had to send a 1099 to service providers (my PR folks) and file copies of the 1099 and 1096 with the IRS. I simply had no idea that had to be done and it could, ultimately, have gotten me into a lot of trouble.
So my recommendation to entrepreneurs is to go out and find yourself a good accountant who will take the time to walk you through where you are now and help your business grow in the future.
Tuesday, January 15, 2008
Email Marketing
This is my new find and I'm simply loving it - MailChimp! Email marketing is a great way to reach out to customers (assuming you don't bombard them with 1001 emails in a week) in a cost-effective - and "green" - way. I've used a variety of email marketing tools in my past corporate life but many of them were technically challenging for a non-IT person and very cost prohibitive for small businesses.
Then I found MailChimp and my whole email marketing world changed. What's so great about MailChimp? Well, it lets you create completely customizable email marketing campaigns in a way that even a technophobe like myself can manage. It keeps track of a bunch of vital stats such as how many people have opened up your email messages, how many messages have bounced, and how many people have unsubscribed (so you can remove them from future marketing lists). But best of all for a small business - they have a "Pay-As-You-Go" feature for companies who aren't sending out email campaigns on a frequent basis. And it's cost effective!
For example, I sent out my first email campaign this morning to promote some Valentine's Day items. For $15 I was able to buy 500 credits which enables me to send out email messages to 500 different email addresses. Since at this point my list of qualified "opted-in" contacts isn't 500 names long, I only use the credits I need and hold onto the remainder until my next campaign. This campaign cost me $.03 per email to send out (not including the time I took to design it - but that's the fun part) versus the $.23 it would cost simply to put postage on a company postcard and that doesn't even include the cost of getting the postcard printed.
If it's not obvious, I'm pretty amped about MailChimp. And once again, I'm not being paid or reimbursed for this plug in any way. I just believe that there are so few services out there that enable small business to take advantage of the same avenues - and look professional doing it - as the big guys that this is definitely worth shouting from the rooftops. Don't believe me? Check them out at http://www.mailchimp.com/.
Monday, January 14, 2008
Where is everything?
I'm getting back to work today and under the deadline of a meeting with my accountant on Wednesday so I'm trying to get the finishing touches put on my QuickBooks. The problem is that I have no idea where I put anything and right now am trying to track down bills from November. The sad thing is I know I put them someplace "safe" - but sadly, they're so safe I have no idea where they are.
On a totally different note, I just figured out how to run NPR live on my computer. I'm very excited about this as another one of my New Year's resolutions is to keep the TV off. I've found that when working by myself in the house I had a tendancy to turn the TV on in the morning to have as background noise. Not being a huge fan of TV to begin with, there was more than one day when I would realize, with horror, that I'd had the TV literally on all day. My new plan is to try and stay tuned into NPR and have that as my background noise. Unfotuantely I have no idea how to work our radio in the house (it's tied into a variety of electronic systems that I have no idea how to work) so I'm rather pleased that I've figured out how to run the NPR podcast.
On a totally different note, I just figured out how to run NPR live on my computer. I'm very excited about this as another one of my New Year's resolutions is to keep the TV off. I've found that when working by myself in the house I had a tendancy to turn the TV on in the morning to have as background noise. Not being a huge fan of TV to begin with, there was more than one day when I would realize, with horror, that I'd had the TV literally on all day. My new plan is to try and stay tuned into NPR and have that as my background noise. Unfotuantely I have no idea how to work our radio in the house (it's tied into a variety of electronic systems that I have no idea how to work) so I'm rather pleased that I've figured out how to run the NPR podcast.
Wednesday, January 9, 2008
New Year's Resolutions
It's the new year so now's the time for New Year's Resolutions, right? I'm not sure that these actually count for resolutions so much as just things I want to focus on with the business:
1. Trust my gut - I sorta let myself get talked into the idea of hiring a PR firm and it obviously, as I consistently gripe about, didn't pan out.
2. Then again, I went with the firm I did because I had a good gut feeling about them so remember that my gut feeling isn't always the best avenue and bounce ideas off as many smart people as I can.
3. Retool our marketing - we're an "upscale" brand (or at least that's what I'm shooting for) so since we aren't spending too much money on tradeshows this year (only going to two - possibly a third but I'll decide that down the road), I want to put some time, energy, and money into making sure that all our marketing from brochures to website to tradeshow booths reflect that upmarket image. I hope to start with having all new professional pictures taken. On the other hand, I hate to throw away marketing material that's still good so I'll probably continue to use up our existing marketing brochures through this year and most likely won't totally redesign those until next year. But I do have some good ideas of how to make our tradeshow booth look 1000% better...and it starts with the professional photos.
1. Trust my gut - I sorta let myself get talked into the idea of hiring a PR firm and it obviously, as I consistently gripe about, didn't pan out.
2. Then again, I went with the firm I did because I had a good gut feeling about them so remember that my gut feeling isn't always the best avenue and bounce ideas off as many smart people as I can.
3. Retool our marketing - we're an "upscale" brand (or at least that's what I'm shooting for) so since we aren't spending too much money on tradeshows this year (only going to two - possibly a third but I'll decide that down the road), I want to put some time, energy, and money into making sure that all our marketing from brochures to website to tradeshow booths reflect that upmarket image. I hope to start with having all new professional pictures taken. On the other hand, I hate to throw away marketing material that's still good so I'll probably continue to use up our existing marketing brochures through this year and most likely won't totally redesign those until next year. But I do have some good ideas of how to make our tradeshow booth look 1000% better...and it starts with the professional photos.
Monday, January 7, 2008
Blogging - The New Marketing Tool?
A recent article in the NYTimes Small Business Section (which I've been catching up on in between jet-lag naps) talked about how small business blogs could do wonders to help build that company's brand name. Essentially a low cost potentially high return marketing tool (http://www.nytimes.com/2007/12/27/business/smallbusiness/27sbiz.html?ref=smallbusiness)
So I've decided to give it a try with Business #1 and have created a blog for it (which I'm still actually getting linked into our company website). My thinking is that hopefully this new blog will help both consumers and retailers (since 90% of that business is wholesale) better identify with my company over other similar ones and, as such, that will help build brand trust, brand identity, and - hopefully - brand loyalty.
My fear is how to balance writing about that business in a way that is interesting and engaging for readers while not being too commercially oriented or give away too much to competitors. I'm thinking that between writing about the company in addition to writing about what's going on in the industry, cool "finds" that I've come upon, etc will help make it interesting.
As always, I'm not going to post the link to either Business #1's website or blog since I wouldn't want anyone to think I'm trying to turn this site into a commercial enterprise. But if you do want the link to either drop me an email (lewisjennif at hotmail dot com) and I'll send them along to you.
So I've decided to give it a try with Business #1 and have created a blog for it (which I'm still actually getting linked into our company website). My thinking is that hopefully this new blog will help both consumers and retailers (since 90% of that business is wholesale) better identify with my company over other similar ones and, as such, that will help build brand trust, brand identity, and - hopefully - brand loyalty.
My fear is how to balance writing about that business in a way that is interesting and engaging for readers while not being too commercially oriented or give away too much to competitors. I'm thinking that between writing about the company in addition to writing about what's going on in the industry, cool "finds" that I've come upon, etc will help make it interesting.
As always, I'm not going to post the link to either Business #1's website or blog since I wouldn't want anyone to think I'm trying to turn this site into a commercial enterprise. But if you do want the link to either drop me an email (lewisjennif at hotmail dot com) and I'll send them along to you.
Sunday, January 6, 2008
I'm back
I just got back from my honeymoon to New Zealand and Fiji and wanted to let you know that I haven't completely dropped off the face of the earth. While I was away there were a few business items that my parents took care of but nothing overwhelming which was great. I need another day or so to get my head back in this time zone but then I'll be back.
A funny story though - while on the trip I found a great product which I would love to bring back to the US and distribute here. I need to do a lot of research - first of which is to see if someone else has beaten me to the North America distribution agreement - but it's a really cool idea that I could see taking off here in the US.
So who knows, it's looking like 2008 will be the year I become a serial entrepreneur.
A funny story though - while on the trip I found a great product which I would love to bring back to the US and distribute here. I need to do a lot of research - first of which is to see if someone else has beaten me to the North America distribution agreement - but it's a really cool idea that I could see taking off here in the US.
So who knows, it's looking like 2008 will be the year I become a serial entrepreneur.
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