Welcome To Startup Students

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In light of the disastrous fire situation in California, I thought it would be good to once again bring up the crucial importance of document storage.If you’re like me, especially since the stolen laptop debacle, you keep all your important papers in a sturdy filing cabinet and obsess over backing up your hard drive. No? Well, then I suggest reading this.

However, planning for a potential disaster goes well beyond storage. You need an action plan. What happens to your business in case of injury or death? Does anyone else have the keys to your filing cabinet or safe? Again, you might know the method to your storage madness, but would someone else?

Here are some tips:

• Store and file your information in multiple locations. For your harddrive, utilize DVD’s, external drives, online storage centers, or a combination of all three. Photocopy important documents and compile a list of stored contents; then place in separate locations.
• If you have yet to do so, start collecting relevant documents that would be crucial during an emergency such as banking, insurance, incorporation, and medical papers.
• Organize - then create a list of the contents of your filing cabinet, safe, and harddrive so that you can easily pull the needed information when time is of the essence.
• Create multiple copies of personal documents such as birth certificates, etc. that may be required by government entities in times of disaster. Keep in mind that copy machines may not be available when disaster strikes.
• Inform one or two individuals about the contents and whereabouts of your critical documents in case you are unavailable.
• Once your system is in place, its paramount that you maintain it. Dont wait til the end of the year to do it all again - instead remain aware of what documents should be added.

Generally, we don’t think about these things until it is too late. Take the initiative now to get your things in order. Class dismissed.

 When Virgin Records founder Richard Branson dropped our of school, his headmaster offered these parting words, “Congratulations, Branson.  I predict you will either go to prison or become a millionaire.” So what does that have to do with?  Nothing really, but I thought it was fairly interesting.

At any rate, as an entrepreneur, you will soon find that you simply cannot do it all yourself.  You’ve got to surround youself with the right people - but still maintain to stick to your guns.  Here are some sure-fire keys to success:

• Hire highly motivated individuals.  But be sure they’re motivated for the right reasons.  Those who are self motivated make the best candidates.
• As you surround yourself with great people, be sure to help them become even greater.  A little karma goes a long way.
• Create, maintain, and update as needed your vision and mission.  This creates a sense of clarity outlining your future direction.
• Create, maintain, and update your company values.  A strong corporate culture from the get-go (and then sticking with it) is often overlooked.
• Now that you have the right people on the bus, don’t let them get off!  Be sure to offer appropriate merit based rewards.
• As you grow and expand your business (and your personal knowledge), it would be a great idea to share the wealth.  Offer unique opportunities that allow your employees to garner more experience, but remember to keep your culture strong.  Now that you have highly experienced employees, you surely will want to hang onto them.
• Offering financial rewards is key, but did you know that offering praise is actually a much better motivator?  Make a point to always celebrate success, even if it’s relatively minor.

Class dismissed.

1. Reducing expenses is the quickest way to increase cash flow.
2. Effective networking requires planning and targeting the right contacts.
3. Good recordkeeping will save you time and money at tax time!
4. Use your business contacts and business counselors for perspective and advice.
5. Always be prospecting for new clients!
6. Qualify a client before you do a sales presentation.
7. Can you clearly convey why a client would WANT to do business with you.
8. Objections are an opportunity to educate your client on your product or service.
9. People are led, things are managed.
10. Business education needs to be an ongoing process! Attend a seminar this week!
11. Ask for referrals from everyone! Even those who don’t buy…yet.
12. Tradeshow expenses are wasted if you do not follow up on the leads.
13. Take the time to do it right the first time!
14. Customer service is not an expense, it is a competitive advantage.
15. Build your team of advisors and use them!
16. It is cheaper to keep a good customer than to find a new one!
17. Don’t make a rule that you do not intend to enforce!
18. Think globally and creatively…at least once a week.
19. A goal without a time frame is a wish.
20. Hold yourself and your employees accountable.
21. You must take time for yourself.
22. You can only burn a candle at both ends, half as long!
23. Share your knowledge with your employees!
24. It will build a stronger team.
25. Reward great performance.
26. Sometimes you need to count to 50 before you respond to people.
27. Share your vision.
28. Developing a system allows you to repeat your success.
29. Writing a business plan proves it wasn’t an accident!
30. Investment in education is investment in your future.
31. Be an expert at what you do, and then hire the rest.
32. Write down answers to the top 5 objections you receive… and then practice the answers.
33. If starting a business was easy, everyone would be an owner.
34. Lack of start-up capital is the leading cause of new businesses failure.
35. Ask yourself once and hour, “Is what I’m doing right now making me money?”

As mentioned, I’m interning at the Disney Entrepreneur Center in Orlando, FL. The E-Center is a public/private partnership dedicated to the development, growth, and success of small businesses. At the center, we have a big flat screen in our entryway that shows news, videos, etc. of things going on in the center. At any rate, one of the things displayed on the screen are the quick one liner business tips written by our Director Jerry Ross. - some of which you just read.  Class dismissed.

It’s been a while. Here is why:

• Internship (30 hours per week)
• Brett Adams Design LLC - my company (50 hours last week)
• Two classes
• College football season tickets
• Pro football season tickets
• My ice hockey league
• 192,837,490,823,749 other things

It’s been really tough juggling everything, but I will have you know I’m working on a killer post for late this week. It’ll be so big it might not even be navigable.

Today, however, I’m going to take a few minutes and talk to you about the first branch young entrepreneurs generally shake on the money tree. That is, friends and family along with any other fools willing to get on board. An example of a “fool” would be someone not in tune with the market or industry such as your dentist, mechanic, or mailman.

Don’t get me wrong, these individuals are a great way to go and often times make much more sense than aplying for commercial lending or an SBA guranteed loan. However, obtaining money in this manner often leads to strained relationships and in some cases can rip families apart. Personally, I’d like to avoid that and I’m sure you would too. Below are some tips to consider when approaching these individuals for startup cash:

• Put it in writing. Every last detail about repayment and usage of funds should be included.
• You are running a business, so make it a business loa - not a personal loan.
• Things happen - natural disasters, emergencies, etc. Be sure to add provisions that cover these types of things.
• Have a business plan? Make it required reading for your lenders. If you don’t have a plan then either:
  • Go write one
  • Or B, thouroughly discuss your company’s goals, ambitions, and forecasts.
• Create a continuous dialog and discuss potential problems, fears, and issues that are taking place on both sides of the field.

Again, sorry for not being around. Don’t hold it against me. Remember, just like you I’m a student entrepreneur, with the keyword there being student. Class dismissed.

I haven’t talked too much about financials, and I don’t really plan on doing so today.  I would, however, like to wet your taste buds with some tips on forecasting.  Remember, forecasting is in all reality BS.  Projections can only take you so far but they do help you when setting goals for your small business.

• You are better off selling yourself short than throwing out unrealistic numbers.  Be factual and conservative with your estimates.
• You arent going to go from making $10,000 to $10 million.  It just isnt going to happen unless something truly astonishing happens in your business or your market.
• Quantify your projections and dont just pull them out of a hat.  Make clear and concise assumptions.
• Back those assumptions up with a written list of your reasoning.  Pro forma financials will take your far.
• Utilize industry specific data and not just general data such as census publications.  Contact your local or university library for assistance in tracking down this type of information.  For those of you in school or who are stupid rich - try IbisWorld.
• This goes back to the above statements, but it’s important.  Your projections are going to be suspect if your sales or profit margins are higher (or lower) than the industry average.
• As you progress, compare your forecasts to actual results and determine what went wrong (or right!).

Yes, this was a bit “schoolish” but you are Startup Students!  Class dismissed.

Note: Welcome to Startup Students. If you enjoy this post, don’t forget to Stumble, comment, and subscribe to the RSS feed!

Today I have a list for you of some great ways to save money as a small business. This is especially useful for those of us trying to bootstrap the next great startup. Without further adieu:

1. Consider having your customers pay up front or require a deposit. This works especially well for larger ticket items or service providers.
2. Pay for your purchases on credit and don’t pay them off immediately. Of course you don’t want to get into serious debt right off the bat, but cash is very important to have on hand in the beginning.
3. Consider leasing your equipment. Laptops, furniture, transportation all come to mind.
4. Be frugal. Easier said than done but by keeping an eye on your spending you are more likely to survive.
5. Don’t splurge on an office right away, there is nothing wrong with working at home. I do it, so should you.
6. One man’s trash is another mans treasure. This goes both ways - sell off your old dilapidated equipment and buy others’ gently used byproducts.
7. Shop around. This goes hand in hand with being frugal I suppose, but next time you need something dont just hop in the car and buy it. Instead, do a little research on the internet to locate the best price first.
8. Make sure your liquid cash is not sitting idle. Put it to work for you and earn some interest.
9. Consider trading your goods or services with other small businesses to save money and benefit both of you.
10. I could write a whole post on this one and I just might some day. Get ready, it’s good. Never Buy what you can Lease, never Lease what you can Borrow, and never Borrow what you can Steal.

Class dismissed.

When pricing your product or service, you should put some thought into the strategy you utilize. Are you going to undercut your competitors? Would you rather target the upper echelon? Maybe you just want to price with the market. It really depends on what you are offering, but here are some different strategies you could employ.

• Penetration Pricing
  • This is when you want to quickly get some traction in your market by offering a lower (and sometime insanely lower) price. Benefits would obviously be the quick market penetration. But be careful, you dont want to undercut yourself out of business!
• Skimming Strategy
  • This is somewhat opposite of penetration pricing. Do you have a relatively new technology that nobody else is offering? Why not “skim” off the customers who are willing to pay more in the beginning. Once demand from the early adopters falls, you can then lower your prices.
• Follow The Leader
  • Sometimes it makes since to just follow the crowd and price your product competitively. Obvious products here would include commodities.
• Variable Pricing
  • Do you sell cars or real estate? Do you own an eBay business? If so, you are already using this strategy. Variable pricing involves negotiation and bargaining between your sales staff and the customer
• Flexible Pricing
  • This works well for service based companies. Do you have government clientel? Then add a couple zeros to the price tag. Have a scaled down solution for commercial use? Drop the price and gaing some market traction.
• Price Lining
  • If you’ve ever been to the Dollar General you are familiar with this strategy. All the products are offered at the same price. Obviously, this method is easy to manage, but you might get stuck due to its lack of flexibility. Times might get tough in times of inflation or an unstable market.

Hopefully this will help you grasp the basic ideas and maybe even assist you in finding the right strategy for your small business. Class dismissed.

Let me start by saying I didn’t write this, I saw it on one of the blogs I subscribe to and thought it would be a great addition for my readers.  In it’s entirety, here is the article:

The next couple of weeks will bring many students back to school. This time is bittersweet for many. There is the foreboding of classes and homework balanced with the enthusiasm of a fresh start. What if you could keep that “fresh start” feeling all semester long?

Here are the top 10 ways to keep your enthusiasm high after returning to school:

1. Get your books early - One of the most hectic times of each college school year is that crazy few days in the college bookstore before the semester starts. Who needs it. Get your books early. If your professors haven’t posted them online, call the bookstore and see if they have a list. If still no luck, give your professor a polite e-mail stating you’d like to get your books early so you can prepare for the class. Ask which books you need to buy.
2. Skim and review before class starts - Review is one of your best weapons against challenging exams. Since you have your books early, spend a few hours skimming and reviewing each one. Familiarize yourself with the table of contents, summaries, bolded text and sidebars. Get the edge.
3. Do not change your diet - eating more or less can change your concentration, energy level and ability to stay alert. Presuming you are satisfied with your current mental chemistry, avoid changing your diet. P.S. Studies show 75% of college freshmen put on 7lbs their first semester – keep lean and mean.
4. Decide your main goal - Do you want straight A’s, B’s ? Before you can get anywhere you have to know where you are going beforehand. Choose before the semester starts what grades you want and write it down. By putting it in writing, you are setting an agreement with yourself - after that, all you need to do is not break that agreement.
5. Decide why you want to make A’s in your classes - why do you want to be a good student? Write up a list of reasons and then hang them in a prominent location in your living quarters. When the going gets tough and you don’t feel like studying or going to class, review this list. Add to it if you can. Reasons are what keep enthusiasm high.
6. Keep your exercise program going – Hopefully, since you are reading this blog, you have adopted an exercise program. Going to class is no excuse to stop. Stick with it for increased self-esteem, concentration and enthusiasm for learning.
7. Sit in the front row - Studies have shown sitting in the front row is an easy way to improve your grades. Why? You hear better, you have more interaction with the professors and there is no possible way to doze if you are in the front row. So choose the front row and win.
8. Reward yourself after small accomplishments - When you get an assignment or test deadline, right then and there, decide on a reward for completing it successfully. I am not saying you have to get an A. Instead a small reward for simply getting through. Some ideas: A new video game, a toy, tee shirt, DVD. Pick something just for you and do not buy it until you finish your assignment. The fun reward will carry you through to the finish line.
9. Make a habit of studying at the same time every day - Humans function better at different times. When do you study the best? Early morning, afternoon or evening? Work on finding that out and then make a pact that you’ll study at that time every day. This works because 1 you’ll be in your zone naturally and you will be developing a habit of high quality study at that time of day.
10. Get enough sleep - Staying up late at night watching TV, goofing off or drinking might be fun at the time, but leads to excessive tiredness during classes. It’s tough to be enthusiastic if you are dead tired. So pick a time your fun and serious side can agree on, then stick to it. Set a reminder on your cellphone or computer if you need to. Just get some sleep you look tired.

Brad Isaac is a lead software programmer and blogger. You can read his motivational strategies every day on his goal setting blog, Achieve-IT!

Again, just to be clear - I didn’t write this one and I encourage you to check out the contributing author’s blog.  Class dismissed.

I live in Orlando, FL and am a native Floridian.  Suffice it to say I’ve been through my fair share of hurricanes.  We lucked out with Dean thus far, but it serves as fair warning of what could happen to any of us.  For that reason, it’s a good idea to have a disaster preparedness plan for not only yourself but for your business as well.  Below are a few pointers for making sure you and your business survive whatever comes your way:

1. Backup your files.  I’ve made this point a dozen times.  For more information, check out this article.
2. Print out hardcopies of important documents - invoices, articles of incorporation, financials, contact information, etc.  Take it a step further and put these and other important documents such as insurance and personal information in a fire/water proof safe.
3. Pick up a battery powered surge protector, this will give you a few extra minutes to save and shutdown when the power goes out.
4. This tip is more or less for your safety.  Be sure to keep extra batteries, water, canned goods, blankets, clothing, and a weather radio in a safe place.
5. Keep abreast of the latest happenings before its too late.  Watch a few minutes of evening news or the weather channel each night.
6. Consider geting disaster recovery insurance.  This holds true especially for those of you with offices and warehouses outside of your home.  But remember, your home owners insurance might not cover the business happenings occuring inside your place of residence.
7. Make sure others outside of the “danger zone” know where you will be and have the appropriate contact information if you are displaced during a disaster.
8. Hang on to old reciepts and take photos of important equipment and other valuables inside your home, home office, or place of work.
9. 9.  Stay sober and aware during the storm or natural disaster.  We like to have hurricane parties for the smaller storms (tropical storms and category 1 hurricanes), but anything bigger than that and you need to be in a proper state of mind to handle any situations that may arise.
10. 10.  Inform your clients and customers ahead of time (if possible) of the impending situation and make plans to assure their orders are delivered accordingly.

Overall, just use your common sense and stay alert.  It’s not a question of if, but rather of when this will happen to your small business so it’s best to be prepared early rather than late.  If you have any other tips, let me know!  Class dismissed.

I’ve made the assumption that most of my readers are internet entrepreneurs - that is they conduct the majority of their business on the web as opposed to in “real life”.  That’s fine and great, in fact I’m in the same boat (obviously).  But that doesn’t mean you and I should stick to internet based advertising.  I agree 100% that if you work online you need to participate in SEO, PPC, Insert Abbreviation Here, but I feel you are really missing out on a large market segment by ignoring what I would call the more traditional advertising channels.

Below I have put together a list of the traditional media outlets along with some advantages- I hope it helps!

•  Newspapers
  • These are pretty old school.  You will benefit, however, from the ability to target specific geographic regions.  It’s also nice because you have very short-term commitments and can easily gauge the responses you receive.  And, unlike other print media, you can submit your ad on Monday and have it appear in the paper by Tuesday and Wednesday.
• Magazines
  • You’ll benefit from full color, professional looking advertisements - but remember that it comes with a hefty price.  What’s really great about magazines is the long shelf life and high chance that it will fall into the hands of many (think doctors office).  My recommendation is to target trade magazines as opposed to general interest publications, that way you minimize the so-called shotgun effect.
• Radio
  • Radio is accompanied generally by a low cost, immediate result.  It also adds a touch of professionalism in my opinion.  Problem here is your market is not well targeted, but the cool thing is you might start attracting customers you never thought would be interested!
• Television
  • Diverse audiences like radio, except at a hgher cost.  You’ll benefit from the ability to get creative and leave a lasting impression however.  I found this site called Spot Runner a while back that has prebuilt, entertaining comercials for your use.
• Outdoor Media
  Again, you’re going to run into some costs here.   I had a buddy who used this method to some success and that’s why it’s on the list.  You’ll benefit from repetive views without any additional costs and you can also place it where you want.

That’s all for today, if you have and questions or comments, please feel free to post.  Class dismissed.