Venture Level - Entrepreneur

So...You Have An Idea?

2009-10-14T23:10:00.001-07:00

Before I start I just want to say there are two types of entrepreneurs... "REAL" and "FAKE"...

Alright, This is a much needed/overdue post. Most of you know, I've been working on a new project lately called, TVDeck. But that is besides the point. As I've been working on the project...I've came across more "fake entrepreneurs". I get a ton of emails about "new venture partnerships"...whatever that means, of which I ignore almost all, if not all of. It's not because I'm ignorant or anything, it just doesn't make sense. Why? Here's why...

1) I would never partner up with a person I have "met" through Twitter. This doesn't mean I wouldn't ever do business with a person I met throught Twitter, but not until I at least meet the person face to face. It surprises me how people constantly try to pitch to me their thoughts, starting an email with- "I found you on Twitter"...I mean...really?

2) Why would I invest in someone's idea, when they are not an engineer (coder) or designer?

3) Business people really add no value to a startup...and that is not just my opinion, it's the opinion of many. Watch this presentation if you have not already, it has a wealth of info for startup entrepreneurs.

4) Besides my own involvement in someone else's "startup" or startup idea, often times I hear entrepreneurs say they don't want to put a dime up and invest anything, especially when they are not an engineer (coder) themselves!! -- Where in the world can you find (buy) or start a business without investing a nickel? Let me know as soon as you find out! And...why would an engineer work with you when you are bringing them an idea without compensating them? Business people (again) don't bring a lot to the table. I know A LOT of engineers who can present better than business people, among other things.

5) I'm not interested in hearing talk about some half baked idea. Seriously. I get way too many of these kinds of emails as well. "Hi- I'm _____ and I have a pitch for you!" No thanks. I'm not going to let you waste my money on your "lame" idea.

I could be more negative and add a ton of more points to what this whole "I'm an MBA with an idea for an internet company" theory, but that is unnecessary.

Regardless of being a business person, an engineer, or just a regular person, if an entrepreneur is serious about starting a company, don't talk. In my opinion, they should just act. And that means being serious too.

So what do you think? I know I kind of jumped across the board on this post...but please, tell me your thoughts!

And there is a saying I have:

"EITHER BRING CAPITAL OR SKILL TO THE TABLE, DON'T COME WITHOUT ONE OR THE OTHER!"

Where To Start A Startup?

2009-10-07T22:01:00.000-07:00

I've met so many people to this date with 'ideas' to create the next big thing on the internet, but most of them lack the knowledge to take the first step and start...well a startup. I think this presentation by Aaron Patzer is a gold mine for any entrepreneur who is taking on the startup scene.

If you don't know who Aaron Patzer is, he just sold Mint.com to Intuit for about $170 Million. So check out the video below and let me know what you think!

Mint CEO Aaron Patzer on Startups from Techcrunch on Vimeo.

What I'm Working On

2009-09-12T08:44:00.000-07:00

I always get emails asking me about my latest projects and how I can give feedback to people who are starting up a new company, from my experience in the past. So this time I am being proactive, and letting everyone know that I'm working on a new start-up; which everyone can keep an eye on & look forward to!

There is a lot of work needed to be done before we launch the site, but it is going to be like nothing ever done before. :)

Make sure you sign up at TVDeck.com to stay updated with what is going on there. And I will post articles here more about it. If you guys have any questions you can always contact me through the contact tab or sending me an email.

Please also join us at our Facebook fan page; because we love giving out free stuff; and our Twitter profile!

Creativity and Uniqueness = Success?

2009-09-04T00:52:00.000-07:00

source: DNA11

A lot of crap is on the internet about creating a unique business or being creative with your business endeavors, but nobody wants to hear that, so I won't talk about it. Instead, I will talk about a company that many probably don't know about, but this company is bringing in millions ($) in revenues.

The company is DNA 11. I just recently heard about the company and thought I should share it with everyone that reads this blog. The company was highlighted by Forbes, as one of many secret million dollar businesses, but that isn't even the amazing part. The company basically started in an apartment, with the two founders working with tools at their disposal. DNA 11 takes a little cheek swab and makes it into a piece of art for its customers.

Now imagine starting a business like DNA 11, it was started for $2,000, reported by Forbes. Now a days people think it takes ten's of thousands or hundreds to start something that will give a million dollar; plus revenue stream. Which is not the case. People just need to focus on what hasn't been done, which can be done for relatively less than say starting the next social network...

I'm not one to preach about "getting off your butt and working towards your dream," but I am one to say that with a little creativity and passion, there's no reason that an average Joe can't find something to turn into a business. Take the sock guy for example. He is making millions selling socks to people.

But back to DNA 11, aside from the success of the business or how they started- think about the PROFITABILITY! Because after all- it's the bottom line that put's money in business owners pockets...or takes money away from them.

Aside from doing a little DNA work and printing costs, the little customer service involved, if any- it's all PROFIT! Look at their website- play around with prices and sizes and you will see what I am talking about. It's brilliant!

And the beauty is that there is internet involved. Maybe they didn't start on the internet, but instead in the real world, and then took their company online. Nonetheless, the internet has empowered them to take a leap and bring in the big bucks and supply personalized and unique artwork to the world!

The very bottom line is that I love what this company does and as soon as I find the right spot for my own DNA portrait, I'm probably going to get one for myself! (Of course the biggest one available) I thought about putting one in my room, so I could stare at my DNA pattern all the time.

So tell me- Do you have any crazy business ideas? Are you going to attempt to create a business out of something very different? I'm interested in hearing your thoughts on DNA 11, also. Please, share your opinions.

How is Your Ecosystem?

2009-08-28T16:52:00.000-07:00

Whether you work for someone or you run your own company, you should ask: "How is the ecosystem of my company?" The whole ecosystem consists of everything A-Z from pens and pencils that the company owns to the staff, suppliers, partners, etc. If a company is being ran across the board with a quality ecosystem, chances are that the company is more stable.

A lot of entrepreneurs put off minor problems or issues they face, which leads to big pot holes in the ecosystem, bringing down the quality of the whole network. It doesn't matter whether "Joe" is running a $10,000 company or a $100,000,000 company, he better make sure that his ecosystem is healthy or he is going to face problems from every direction.

"Things done right"

What the heck does that mean? I know numerous entrepreneurs who are running small companies and take shortcuts, but it all ends up affecting their ecosystem. Five years into the future when "Joe" is running that same company worth $10k previously, that small issue might turn into a big situation.

"The right staff"

It is tough for all entrepreneurs to find a great staff, at startup pay, but it isn't possible. A lot of entrepreneurs look to save in the short run or hire the underdogs, but that all plays out to a weaker ecosystem. If "average" employees are pumping out "average" work, that equates to an "average" company. Average doesn't cut it in this day and age.

"The right partnerships"

We all face this question regardless of any business we run. A partnership can range from which staff members work on what project or it can mean which people are on the advisory board of the company, or even companies that work with your company to get things done. If these bonds are weak, it hurts the ecosystem.

Sometimes there are ways to cut back and take route "B" instead of "A" and other times it will only make sense to take that route if an entrepreneur is willing to face a bigger pothole in the future. It doesn't always mean that there will be trouble, but in a company's infant days, if things are contributing "softly" to the ecosystem, it is hard to change course and make it a quality ecosystem in the future.

Study The Playing Field

2009-06-22T22:28:00.001-07:00

Most of you that read this blog are entrepreneurs, some aspiring; some serial. Nonetheless whenever you are starting a new project, it is just that...a new project. It could fail, it could succeed. Do you ever do "market research" or spend a year or two just sinking your feet into the world of your project? Probably not. Entrepreneurs don't really do that. We just jump right into what we want to do, with some homework.

I'm not saying it is bad to do market research or it is good not to, but I will say that it is good to at least have a glimpse of what the industry has offered- or lack thereof; to other people. Whether you are starting a shoe company, an internet start-up, or anything else; there is a high chance you are not starting a company that is going to offer something totally new; something unheard of. Meaning that most entrepreneurs don't create the internet, they just make it more useful. So what exactly is "doing your homework?"

Finding out what companies have ventured into the same space as you.
Learning what they did. (Raised funding or not; location; staff; etc.)
Did it work for them? If yes, it probably won't work for someone else trying to create a clone. If no, it probably still won't work for someone else. So "entrepreneur X" better have a different product in some way, regardless.
How fast did the "REAL WORLD" catch on to the product(s) or service(s) offered. And no, the real world doesn't include one's siblings or friends, but could include one's grandparents.
You can probably find out what every company in your industry did, but it is what they didn't do which is truly important.

That list can go on forever, but for times sake, I will keep it at that.

More often than not, each person that is creating a new company; reading this blog; is probably venturing into the internet space. I'll say this- it is easier to gather "dirt" or "information" on internet companies, than any other. Why? Consumers who use products or services that are on the internet, have tech skills, so they speak their mind in the same space. If someone has a bad experience with a company, they will blog about it, etc.

You can also find funding information and information about failed companies all over the internet. I would suggest that any entrepreneur that is looking to start an internet company, to first read the TechCrunch deadpool and learn what every company did wrong.

To sum things up, don't take "market research" for granted, but also it is smart to keep in mind if "entrepreneur X" is studying the market for 20 years, the product they are trying to develop will be obsolete by the time it comes to the real world.

Being Too Macro-Focused

2009-06-20T20:47:00.000-07:00

Think about it for a minute. Being too macro-focused. As cliche as it sounds, too many entrepreneurs do it. They just want it all. There is absolutely nothing wrong with 'wanting it all,' but when it gets in the way of getting even something small, it is a problem.

If you look at an average entrepreneur starting a company, they have serious plans and plan to dip their hands into just about everything from the start. This ends up leading the person to tap only partially into their skills and not achieving each task to their full potential. Just like with anything in life, it is usually better to have four of the same size tires for your car at regular price, than 50% off, four different size tires.

Even if you look at developed companies or companies that have been around for awhile, you may find prime examples of factors that set them back. Usually companies that are around in times like today (a recession), and are doing okay, have some product or service that they excel at, otherwise it would be very tough to survive. That said, those very companies & their owners, have to keep offering that product or service at a premium level; otherwise they will see their customer count shrink. But due to the recession, business owners or management in companies feel like they have to be "innovative" and come up with new products. This is a great thing- as long as they don't try to create a product that caters to the need of customers five needs- only partially.

If none of the above made sense, excuse me; but I will explain it right here. The problem with many entrepreneurs or just people who manage businesses in general is that they create something that isn't truly worth it. Lets take "Sam's plumbing company" for example. Sam is the owner of the company and he plans to create a product "agent Y" -which is a cleaning product to "clear all drains from backup" -to bring in more revenue to their company than just what product "X" brings. But while he is innovating this product, he also thinks about having the cleaning product be used to "germ proof" drains. This requires him to spend countless dollars in research and the end result is that it cannot be done. Because "Sam" was too Macro-Focused, he wasted time, money, and loss revenue by the delay of "agent Y" being launched.

So the bottom line is, if an entrepreneur creates something, it better be GREAT AND SIMPLE. Trying to have something fulfill 10 jobs, might not be the right thing, even if it is possible to create such a product. Being the best known for 1 thing is far better than being known as an average Joe for five things.

Money in the Affiliate Marketing Industry

2009-05-23T13:09:00.000-07:00

I am pretty sure you have heard of "affiliate marketing" before, but if you have not, it is basically where you get paid upon delivering a certain action. I won't go into that into too much detail, so I don't bore most of you, but if you really don't get it, search for the term online.

There are a lot of affiliate marketers in the space today, regardless of if they make $0.05/year or 7 figures, they are all the same. It is just how one decides to present affiliate offers.

I'm going to tell you about a specific example of how a business was created from affiliate marketing and sold for about $48 million.

I can't go into detail about the specific company because I told you the amount that it was roughly sold for, but I will tell you everything that the business was about. It was basically a website promoting affiliate links in the travel industry. If you are the least bit involved in affiliate marketing, you will know that hotels.com has affiliate offers as well as other travel sites. This affiliate site was created from hotels.com and expedia.com affiliate offers. For quite a long span of time it was the number one performing "affiliate" for expedia.com.

To be a number one affiliate for any program, it takes A LOT of sales. In order to make sales, you have to be putting the right amount of money in advertising and even have repeat customers to your site. But it is all easier said than done, quite frankly.

I won't discuss how much the company was cranking in on a daily basis, but I'm sure that you can figure out some estimates by looking at the sale price of the company.

Everyone wants to learn the affiliate business, but it is hard to learn from a lot of resources on the web, since they are mostly restating same concepts and there is a lot of risk when you want to try out a new business with your own money involved.

Jeremy Schoemaker, also known as "ShoeMoney" is giving away his knowledge in a 12 week course, which is again, completely free. The course originates from his major book deal, which has been canceled, but it is all worthy information. All you have to do is sign up and you will receive emails of how to's and detailed information on getting into the affiliate business. Jeremy is also getting vouchers from ad networks, so you can experiment with advertising, without risking your own money. If anyone in the industry know's their stuff, it is Jeremy. I wouldn't promote him if I didn't think he was giving beyond expectations.

I encourage you to sign up and really learn what he has to teach, even if you decide not to become an affiliate marketer or create a business from it, you will get a very thorough understanding of the industry, for the future.

P.S. - Please don't contact me to ask about the company I discussed in the article because I cannot say much due to a NDA.

Sign up for the ShoeMoney Internet Marketing Course here.

The Story Behind Success

2009-05-23T00:57:00.001-07:00

Particularly aspiring entrepreneurs, love to hear about how established and successful entrepreneurs did what they did. Unfortunately, things weren't always as the stories behind successful entrepreneurs tell them. A lot of the time, "rumors" are unleashed in such a way that more publicity is given- than should be received or just the fact that a business model is so good to be true, it is a viral phenomenon.

That said, I always listen about entrepreneurs trying to create a business off of another entrepreneurs story. In most cases, this will never work. Even if you sit down with Bill Gates, he might be completely transparent and tell you everything he did to start Microsoft and create it into a thriving business, but nobody can replicate the same success with the same product due to the following general factors:

Timing is different.
There is only one Bill Gates who conceived the concept behind Microsoft.
Small things happen which made the company successful, which even Bill Gates probably cannot even recall.
As time progresses, it takes more to filter through noise.
The staff cannot be replicated.

As far as timing goes, creating a software company when software is just evolving, gives the option to map the future of software. If a company like Microsoft would be created today, they would have to literally pave a road with a different future, than what is expected. So eventually, the concept would be totally new and it wouldn't be a replication of Microsoft anyways.

When looking at an any entrepreneur and trying to replicate their success, with the same products they offer, you have to keep in mind that you are not that person and you are you. Entrepreneurs can range from running a plumbing company to a law firm to even something related to health care. Talent turned into a business is what makes an entrepreneur, so not every entrepreneur can run every business. And even within a certain field, it is hard to match up to a different person's DNA- so to speak.

Everyone knows a business isn't created in one day- or night. That means that there are a lot of external factors that influence the success or failure of a business. Small things either contribute or take away from a business which can add up in a positive manner to take a company to the top or add up and bury a company. It isn't humanly possible to remember each and every move any entrepreneur makes, so there are things left out of stories behind successful entrepreneurs.

If I tried to create the next Microsoft, or even something smaller...the next Facebook, by myself (as those respective companies were created), it probably could never happen. The times when these companies were started, gave them leverage over introducing a new way of doing things. Building something and remodeling a look is different. If anyone tried to create the next Facebook, they would surely need a team of people behind the product, just to live up to consumer expectations; which is why it is more encouraged to create a new concept, instead of just reinventing the wheel. You won't be recognized for learning how to speak English, but if you created a new language, people will be amazed.

A major part of any business, new or old, is the people that run it. The staff behind a start-up company can be a great asset to the growth of a company, or be the cause of a company to fail. It is really difficult to put together a stellar team, nonetheless create a stellar team and replicate a business that already exists in the space.

To sum things up, I don't want to discourage or say that copy cat or me too businesses won't succeed; or even the fact that you can't replicate a successful entrepreneurs story, but I won't say that it is possible either. Creating a new concept is what gets people talking, if you are the 2nd person or company in a space, you will always be compared to the first.

Franchising Can Be A Win-Lose Situation

2009-05-09T20:32:00.000-07:00

I know a lot of people who own franchise businesses. Including myself, I probably at least one person who is a franchisee of every leading franchise in the world. That said, I hear a lot of stories about how some franchisors put their franchisees through a bunch of "hell" and others really work with their franchisees. I want to discuss a little bit about how actually being a franchisee of a major brand can be a win for the franchisor and a lose for the franchisee.

First off, let me say that NOT ALL FRANCHISORS are bad to work with. In fact, many are extremely helpful and easy to work with. However, there are some who think that they are the kings and should have all the power to do whatever they want. A lot of my friends are franchisees of one brand, which shall remain nameless, but all of my friends have the same opinion about the franchise; which is that the franchisee is full of "dictators."

A lot of time time franchise corporations "experiment" with new products at the franchisees expense. In fact, franchisors include in their franchisee agreement that they have the right to terminate the franchise if the company promotions are not followed by the franichsee. So basically if a franchisor is launching a new product which requires the franchisee to invest $20,000 into their business for new equipment, they are "forced" to do it, or the franchisor can "threaten" to terminate their franchisee agreement, which results in the franchisee losing their investment. Now, you may ask: "Why wouldn't the franchisee want to invest in something that will make their business better?" The answer to that question is simple; a lot of the times when franchisors come up with new products, they fail. For example, in the quick service restaurant (QSR) industry, equipment costs are extremely high. When a franchisee invests in equipment and a new product fails, they basically get pennies back on every dollar spent on equipment purchases, if that. So it is basically like investing in something that will give no ROI, with depreciating value, like a car. That is just one part of a lose for the franchisee.

The next aspect that some franchisees suffer from is in the marketing and brand building. Every franchisor wants their brand to be thriving and well known throughout their market areas. That said, I will give another example of the QSR industry. How many times in a given month, do you hear about free products being given away at your favorite restaurant? Probably quite frequently. National brands like to do this because it basically creates "buzz" around their brand and gives them a great reputation among consumers. So when a franchisor decides to "give something away," it really doesn't mean much to them, except for profits from every aspect. You may ask how; and the answer is from:

Royalties that franchisees have to pay franchisors from sales. (Even though products are being given away, some people are bound to buy more than just what is being given away.)
When each store buys product from the franchisor. In most big franchises, the franchisor has some cut with the supplier for every purchase that a franchisee makes. So all the products given away for free, will increase sales that the supplier makes, putting more in the franchisors pocket.
And the last benefit is that the brand is going to grow that much stronger. This is because they joke is on the franchisee, having to give away a product, but growing the brand as a whole. Franchisees do not own every location, therefore they are, in a way, donating and building "someone elses" brand.

Notice I didn't say that franchisees benefit from promotions and product giveaway's. Which is because they don't. They don't get a kick-back from the franchisor of the product given away, no break on royalties, and they still have their operating costs at the end of the day. Think about it this way- if you were to buy a pack of gum and give it away to someone, with no charge; you lose money, the person you give the gum to is happy, and you just helped spread and grow the brand who makes the gum.

The last thing I want to mention about franchising, is in terms of local marketing. I know people who have tried to market their franchised brand in their local area, when the franchisor stepped in and said, "You can't market the brand, only we can do that because we don't want you to mess up our brand image." In my opinion, that is totally ignorant. If a franchisee wanted to mess up a brand, they could do it in so many other ways. You literally have to get every marketing campaign approved and the last say is with the franchisor.

All of the situations above might drive people away from becoming a franchisee, which is NOT what it is meant to do. It is just stating the facts of real situations that have occurred in the past with franchisees and still occur as on-going issues. There are many more "lose" situations that franchisees face, some are extremely bizarre, which I will save for another day, but you just have to be careful before you sign the dotted line and hand over that hefty check- in rush of becoming a franchisee of that huge nationwide brand.

The Difference Between An Entrepreneur and Serial Entrepreneur

2009-05-08T22:35:00.000-07:00

Kind of like bootstrapping a start-up, a first time entrepreneur can actually be more beneficial and prone to success over a serial entrepreneur attempting to grow the same kind of business. First time entrepreneurs, undoubtedly, have a lot of hurdles to overcome, but they are usually more dedicated to their start-up business than a serial entrepreneur is. In many cases, a serial entrepreneur will be involved in existing businesses while they attempt to uplift a new one. This causes their attention to be diverted throughout all of their involvements, as to where a first time entrepreneur has just one business to focus on. For first time entrepreneurs, I would say the biggest task to achieve, is breaking the shell in their industry. Since they probably have no proof of prior experience, or no “connections,” they are forced to start from scratch and grow something out of nothing. A serial entrepreneur will probably have some cash to blow through, less time to give to a new business, and will probably hire other people to get the job “done,” rather than putting their own effort to finish something. I’m not saying that a serial entrepreneur has a tough time to grow a new business, but sometimes they are blinded by their own success, or just can’t see the reality of a new business.

Let me discuss a scenario for a web start-up. A first time entrepreneur trying to create a thriving web start-up will probably spend 23 out of 24 hours working, trying each and every way to grow their business. A serial entrepreneur will probably hire a bunch of people to do it for them, spending just a few hours looking over the results achieved, or lack thereof. While a first time entrepreneur might be inexperienced with starting a business on the web, leading to more time in the learning process, they will most probably know the ins and outs of what they are doing and where there ultimate goal for the business to be is. A serial entrepreneur might put a fixed amount of money up and see where the project goes and if it isn’t successful after a certain point; they will probably discard the whole concept. The problem is that serial entrepreneurs don’t feel forced or have as much pressure to really make a business grow. A first time entrepreneur is putting all of their efforts and time into making the business grow, so they really only have the option of it going in on direction- which is up.

Now let’s look at the downside of being a first time entrepreneur versus a serial entrepreneur. First time entrepreneurs face the difficult challenges of knowing almost nobody, requiring them to create a lot of “buzz” or “viral traffic” to their business. If a well known serial entrepreneur is behind a new venture, “buzz” is automatically created and eyeballs are attracted like a magnet. But at the end of the day, it doesn’t matter whether or not you have “buzz,” if your product is junk. It is as simple as that.

So what is the whole conclusion behind this? Easy- it doesn’t matter whether you are a serial entrepreneur, a first time entrepreneur, or don’t even consider yourself to be an entrepreneur. You need to:

Know your business
Know where you want to take it
Have a plan to take it there
And execute on the plan, with a lot of personal involvement

Creating a thriving business can usually only be done if one puts time into every action and sees it through. If doesn’t matter what someone has created in the past, because most of the time a new business will not depend on the success of one's old businesses.

Your Business Card

2009-05-04T16:30:00.000-07:00

I'm sure you have probably heard it over and over; that you need an AWESOME business card, one that will stand out from others, so I won't repeat that story. Instead, I will tell you that you should view the video below and acknowledge how creativity can bring out the best in business cards. I don't recommend you spend years developing a card or even design a costly card, but just to keep the thoughts below in mind when you are coming up with one. Also, some may argue that putting money into fancy business cards is nonsense, but I think that is an invalid point. My business cards cost a few dollars and I don't mind handing them out because I only hand them out to people who are worthy of having it. It's not like people just hand their card to unknown people who they have only known for 5 seconds, so it is well worth the investment, if you really want to develop the person you are handing your card to, into one of your well known contacts. I also consider my business card, a product that represents me and my brand, which is premium, so the card shouldn't be cheap, but that is just me.

[Click here for Video]

Should Entertainment Be Your Business Model?

2009-05-02T21:34:00.001-07:00

Every business owner wants to attract the big spending consumers to their business to drop some serious cash, but most lack to think of how big spenders come. There are a range of opportunities, even in this economy, to make tons of money, you just have to cater to the right audience. A lot of businesses might not have the capital to roll around in luxury, but it is up to a business owner to justify spending a dollar, five dollars, or ten and it is up to them how they want to claim the ROI on that.

I'm going to give a scenario here about how my business partners and I use "entertainment" as our business model for one of our businesses. I have a stake in a high end hotel, where we attract a wide range of clientele. But sometimes "high end" clientele is hard to satisfy- or meet their needs. So we do something that very few hotels do, which is over-delivering to EVERY consumer. When a guest stays at our hotel, we make sure that everything they want; they get. By doing so- we have to have a lot of connections to a broad range of restaurants, connections to get last minute show tickets, among other things. One may ask the question: "How do you maintain profitability, if you are meeting every guests needs, and beyond?" The answer to that question is quite simple, we charge. Nobody said anything should be free. Think about it- all the free things companies offer its consumers, is just a start. The money is in what the consumer is attracted into buying after the free offering.

Back to the main point, offering more than what the consumer wants. We have guests that have stayed with us many times and they have proved to be LOYAL to our business. So we don't just thank them. We show them how thankful we are. What I mean by this is, we have a handful of guests that we shower with gifts. Gifts range from dinner on us to their favorite restaurant and we even rent exotic cars for them to drive while they are staying with us.

It is true that when we shower loyal guests with gifts, their stay is usually not profitable, but in the long run- it is more than profitable. Renting an exotic car costs anywhere from just under a grand to $2,000/night- sometimes more. So the beauty of the situation is, that we also don't pay for the rental; or at least the whole cost. Instead, we have worked out discounts and partnerships with area exotic car rental businesses. For example, if we are offering a complementary car to a guest for a night, lets say a Ferrari F430, we cover the cost of a couple hundred dollars for the guest to take to the restaurant and such. Since we don't use it for the whole day, the renter is not losing money on it. On the other hand, the incentive for the renter to give us the F430 at such a deep discount is that they get a referral the next time a hotel guest wants to rent an exotic car, and trust me, they make a pretty penny. If we are offering a "cheaper" car to the hotel guest, like a Bentley Continental Flying Spur, we usually don't pay a dime for the rental.

The bottom line is that the guest will remember the luxury we offer them and will continue to stay loyal to our hotel. In the end it is a win-win-win situation for all those involved. The company who rents the car, our hotel, and the guest.

The main lesson of this article is that you can offer luxury or entertainment to customers; and you don't always have to pay out of your company's pocket to offer those luxuries. Keeping loyal customers happy is one thing, but really pleasing their mind is going to ensure a life-long relationship. In our case, the "high-maintenance" guest, will also tell their high-maintenance friends, which will result in more business to our hotel.

Negative Media Exposure

2009-04-27T16:07:00.001-07:00

Like the saying goes: "Nobody is perfect," it also goes to say that no company can be perfect...in the public eye. No matter if you are running a huge empire or a small business, people are watching and they are waiting for you to do something wrong, so the media can expose your "wrongdoings." Even if you think that negative publicity is a nightmare, it isn't always "horrible." I'm going to tell you a few things I do to take care of negative press coverage- if it were to ever happen to me or my companies.

#1- Know journalists. This is by far the MOST important thing you need to start doing with your PR work. I can't tell you how many powerful journalists I know and have created relationships with so if I were to ever get negative media attention I could do the following (or have issues with another company I work with):

Save my company
Expose companies I have issues with.
And you would be surprised how many journalists will put friendship over attention.

#2- Maintain the relationship with journalists. Knowing journalists won't do you any good, if they really don't know you back on a personal level. You have to be nice to them, but also entertain them with gifts, etc. etc. Keeping them happy, will keep your company's image happy.

#3- Use the journalists. Say that a TV station criticized your business. Then there is all this negative publicity in the air. You call up your journalist friends and tell them you have something better to share, the truth. Lets be honest- a lot of stories are evolved from rumors; if your company is being wrongfully publicized, then you should stick up for it and tell your part.

#4- Talk to your customers. Issuing a statement like Domino's did with their recent issue in the store with the employees playing a "hoax" will definitely give consumers something to chew on. But it is important to keep this statement in a conversational way and not sound like you are reading from a teleprompter.

#5- Turn something bad into something great. I'm not going to sit here and tell you how hard it is to get good exposure for your business in the world, because you probably already know that. But if you get negative press attention, there are a BUNCH of ways to turn that into PROFIT.

Show the customers you have changed and improved by 1000 times.
Give the customers an incentive for the situation.
Be transparent with the "issue."

While each situation varies, as long as nothing is too- out there- it usually can be saved from a meltdown. The press is usually just stating facts, which go off of people's experiences, which a company can change with a "can-do" attitude. But in the end, it all comes back to, giving all the customers with the best experience they can ever have with your company, so you don't have to worry about the customers that have the hookups with the media.

#1 also goes to show that when you have journalist connections, more companies will be willing to work with YOU because they don't want to be negatively exposed themselves.

The bottom line is...start making friends with journalists and make that connection last and evolve.

An Entrepreneur's Intangible Property

2009-04-23T21:55:00.000-07:00

Knowledge is intangible. Property is tangible. You can sell a company, but you can't sell your knowledge, skill set, or performance history- unless you are doing some kind of consulting gig, but no matter how much knowledge or skills you 'sell', at the end of the day, you still retain rights to them. I hear entrepreneurs all the time say that they want to build up their company and sell it for a multi-million dollar check, but what I don't hear very often is that they want to learn something of TRUE value along the way.

I stated above that 'performance history' stays with an entrepreneur. This means everything from public reputation, to credit history, to even cash flow of your company, if it is public and revenues are known openly. The video below shows how Noah Lehmann-Haupt, sold his first company, but never sold those skills. By learning and retaining the skills he had, he was able to create another profitable company; Gotham Dream Cars (an exotic car rental company). The bottom line is, you can create a great company the first time around by hiring the right people, but if you never extract their knowledge and learn from it, after you sell the company, chances are you won't be able to learn from those knowledgeable employees anymore, which could be a priceless asset.

[Video Here]

Is It Smart To Bootstrap?

2009-04-21T11:56:00.000-07:00

A common thing for new entrepreneurs to do with funding a new business is bootstrapping their start-up, instead of taking millions in funding from a venture capital firm and no money from angel investors. This is just how most businesses start, whether or not the entrepreneur is looking for money, it just might not get to them. Many people have created great businesses without taking a dime of funding from a venture capitalist. In fact, I believe that when an entrepreneur takes money from a venture capitalist it lessens their energy they put into the business. When an entrepreneur has to look at each penny spent, they watch each and every move their business makes, which reduces the chances for errors.

It is well known that a company who gets funding once, is bound to need it again. This is largely due to the fact that VC funded companies burn through cash by hiring a large staff, getting a nice office, and most importantly, NOT looking for freebies. When an entrepreneur is bootstrapping their business, they look for more "free" stuff that is available than things they have to pay for. For instance, lets say "Joe" is starting a new business and he needs to have some business cards made up. If Joe had taken money from a venture capitalist, he probably would have picked up the phone and called the first business card company that came to his mind, but since he is paying out of his own pocket, he knows that he needs to get some business cards, so he waits a few days and sits on the thought when he comes across a company that will give 1/2 of his order to him for free. It might be a little cost, but every penny adds up, in business. Seeking opportunities to save sets the entrepreneur ahead who bootstraps, instead of being funded.

While an entrepreneur who is bootstrapping, might not have cash, a VC funded entrepreneur will probably end up failing because of the way they have cash. If an entrepreneur who is bootstrapping is urgently in need of money, they will scrape every dime and nickel they can find and make it last. If a VC funded entrepreneur is in urgent need of cash and no venture capitalist is willing to give it to them, they will probably give up and fail. The mindset changes for a lot when they receive funding and their ability to survive with nothing will be reduced greatly.

To be fair, lets discuss the negatives of bootstrapping.

Outsourcing comes into play greatly when an entrepreneur is bootstrapping. There are some pro's and con's to outsourcing, but the overall idea of outsourcing elements of a business is that outsourcing needs time. While an entrepreneur might not be stuck doing a job they outsource, they will need to check up on progress, discuss exactly what they want and so on, for the end result to be positive. You might have heard the saying which goes like: "If it's going to take up all my time, I might as well do it myself." Which really shows that time is money!

Things also get delayed when starting up a bootstrapped business, since funds might not be available. This is probably, by far, the most important thing to realize when bootstrapping. A lot of things do get done faster when some capital can be allotted to them, but again, sometimes money doesn't do everything. Especially when dealing with free services, time can be a huge factor. When companies offer free products, the time frame to produce the results usually increases, than if it were a paid job.

Compromised quality is also a concern when bootstrapping. A lot of entrepreneurs feel like cutting corners when they are in the infant stages of their business, but don't realize that the mindset the customers develop from the start, is the mindset they will have for a lifetime when thinking about the entrepreneur's business. Entrepreneurs have to make an excellent impression with the end consumer the first time...the second time...the third time...and a lifetime.

I personally know a lot of people who started their first business off of their friends VISA, MC and AMEX. They racked up so much debt and were concerned that they would never see out of it, but eventually most of them were able to see through the tough bootstrapping phase, to success. At the same time, some failed, continued to fail for awhile, then found alternatives to their funding issues. However, I DO NOT endorse credit card borrowing, it is probably the WORST form of borrowing out there, a lot of people can't find their way out once they are trapped in the system of credit card debt.

It's also good to note that bootstrapping doesn't mean that an entrepreneur with no money is doing it. A lot of successful people fund their own projects just because of the end result: Not giving up stake in the company they are starting. Obviously the venture capitalist that is funding a company is going to look for as much stake as they can, but when a bootstrapper put in all the effort in the infant days, they are the ones who enjoy paradise in the end days- unless their company is in a loss.

Business Operations And Grocery Shopping

2009-04-21T10:04:00.000-07:00

I usually never go grocery shopping, but I had to go for some last minute things the other day, which led me to think it was a lot like being an entrepreneur and running a business. There were a few things I needed, but I ended up spending more time than I thought at the grocery store and bought more than I was originally going to get.

Here are my thoughts on the experience:

The list is just a list- When you are an entrepreneur, you write down your thoughts, but lets be honest, nothing usually plays out just like it is mapped. When you go shopping for groceries, the list is probably just 1/10 of what you end up getting in the end. Whether it is different sized products, different brands than you thought you would buy, or just additional products in general, the list isn't set in stone.

The lesson: Learn to go with the flow and think on your feet, it plays out to be the most benefit to any entrepreneur.

The staff has to be knowledgeable- As an entrepreneur, you try to find the best people to work for you, sometimes that means going through a handful of people before you find the right team. In the grocery store, I asked one stock boy if he knew where something was, but he didn't. I asked another guy if he knew where that product was, he did.

The lesson: Some staff members have more knowledge than others, but everyone should have a certain "par level" of knowledge. If they don't, should they really be representing your company?

Somethings just aren't available- Inventory is sometimes a big factor and sometimes not in a business, depending on what the business provides, but all businesses have to buy things, eventually. If an entrepreneur is running a shoe warehouse, chances are if a shoe isn't available, a customer might go elsewhere. If "Bob" is running a web-business and the server he ordered two days ago is delayed in shipment, can he do without? In the grocery store, I went to get something that wasn't available at that time, so I had to buy something else.

The lesson: Plan ahead, if you are going to need to order something that is a vital part of your business. If there's no capital to order ahead, then just take your chances, I guess...

The checkout line- How often do you go to the grocery store and find that you are the only one in the checkout line? Luckily, I was the only one in the checkout line so my time wasn't wasted, but it's usually not the case. When an entrepreneur is running a business, dealing with outside companies to get things done, sometimes things don't get done as fast as they are supposed to.

The lesson: Allot a fair amount of time to get things done, but have a backup plan if more time is needed and other work has to get done.

You never know who you'll meet- It has happened to me a few times; I am out and randomly I'll see someone I know- or know of. When I was grocery shopping I actually ended up seeing an old friend that I haven't talked to in awhile. Entrepreneurs are always looking to grow their network, but sometimes you have to compromise and grow your network in the least expected places. Now, in my case, I just saw a friend I knew, but other times, people actually make worthwhile business connections in the most ironic places.

The lesson: Always be prepared to discuss what you are doing and your latest ventures. This doesn't mean that you have to give someone a pitch, so they invest. But sometimes you might score some business partnership from a simple handshake.

Exit Strategy

2009-04-18T21:10:00.000-07:00

Anywhere you go when discussing business, people talk about growing a business or creating a successful start-up, but most don't discuss the point of creating an exit strategy or plan, prior to entering the exit stage. I've seen friends who run very successful companies, but they never think about what they will ever do with the company whether it be selling it, giving up a small portion to a bigger fish in the pond, or taking it public. All they are interested in is the present and sometimes that leads them into rushing when the time comes that they can't handle the work anymore.

You may think that I'm joking, but I'm not. Times do come, when entrepreneurs can't run a company any longer which can be caused from a number of issues such as personal health, lack of knowledge, no future vision, or just heading into retirement.

Some entrepreneurs think that they can run their own start-up forever, but it might not be the actual case when time passes. Just because someone has started a company and evolved it into a multi-million or even billion dollar business, doesn't mean they have the skill set to keep running it forever. If an entrepreneur is their own start-up's CEO, they might be good at working with the company at its infant stage, but might not have the experience to continue to run a grown company and lead it to future success. So sometimes, even if an entrepreneur started their company and were the CEO and don't wish to exit completely; it can be good to seek out a new CEO ahead of time and then hire that person, step aside and see where an experienced CEO can take the company.

Other times, entrepreneurs might want to completely exit the company instead of giving up small control of it. This is completely okay, but knowing that's what the goal is, is important. So when the time does come to sell, the entrepreneur isn't questioning themselves of what to do, or even if the company has multiple co-founders, they aren't debating over what to do.

Obviously there are outside factors that determine what the end game will be when the time comes, but having some thought after the company is up and running is truly beneficial to all those involved. A big factor is selling price. If a entrepreneur has a set dollar amount in mind and is offered more, chances are they won't hesitate. But if they are offered less, they might have second thoughts about selling and just sit on the company a little while more- or give up a certain stake. At the same time of thinking about an exit strategy, it is important not to create a company just to sell it.

Can An Entrepreneur Take On A Large Corporation?

2009-04-17T11:00:00.000-07:00

I'm always getting emails from entrepreneurs who are just starting out their first company and they always tell me their ideas, but many of them tag a question at the end similar to this- "...So that is my idea, but I think I might have a tough time competing with _______..." I always get so irritated when entrepreneurs think less of themselves just because they are starting or because they aren't a "big giant" and might not have as much capital to "toss out" with experimenting like a big company does. I usually respond like this: "If you don't think you have a great product, then who will use it? I don't think a big giant corporation will be a threat to your success in that case."

The response might be a little bit bitter, but it's true. Anytime an entrepreneur thinks they can't compete with a bigger competitor, it usually means that they truly don't believe in their product. Just to make a quick example here- Tesla Motors is definitely throwing a curve ball out there with their cars, obviously they aren't as big as GM, Ford, or any other giant automaker, but I know they are smarter. So what do big companies have: A lot of capital (or lack thereof, in the example), a big workforce, and no knowledge or desire.

A lot of large companies I work with have two major problems:

A bunch of newly hired, "show-off" to my boss-type, egoistic and not desirable employees
And second, a lot of bureaucracy.

The situation almost always plays out like this: When a major corporation wants to do something, they have to push around a bunch of paperwork, get a ton of people to sign on it, sit on the idea for a bit, then "test" the market in some random place where they can bury the whole concept if it fails, without letting word get out. And the people behind these ideas are usually playing it safe because they probably just got hired and don't want to construct a disaster, but at the same time want to show off and get ahead in the corporate food chain.

So what does this all have to do with you, as the entrepreneur and dynamic business you are trying to kick-start?

Chances are you have very few people working with you. And if you want to launch an idea, it won't take nearly as long enough as it would take a large company to do so. On the other hand, you might ask- what about burning through capital, for "test" and trial periods? To that, I ask, don't all entrepreneurs just launch their projects and wait for public feedback from their whole consumer base, instead of just some 1/2 baked launch in some test market? The correct answer: Yes.

Entrepreneurs shouldn't fear big companies because they aren't worried about screwing up publicly. If a new venture is launched and the public feedback shows something needs to be altered, it usually can be done, quickly. Instead of running away from the idea, an entrepreneur will face it and walk through to the end with the venture. A big company will bury it and never speak of it again.

Having a lot of control over what a business does, is just a small benefit of launching a project as an entrepreneur and comparing it to a large company launching the same project. A lot of entrepreneurs can take on large companies because after all, it is your hard work that is put into the business. When a company does something, how much of the staff actually cares about the success of the project, unless their bonus or paycheck is on the line?

(I'm not discarding all large corporations, but I've personally had experience with large companies who want to play it safe and in the box, instead of being innovative, adapting change and exploring new horizons. But even still- an entrepreneur has less bureaucracy to dodge through.)

My Lawyer, My Banker, My Accountant

2009-04-16T12:02:00.000-07:00

My Lawyer, My Banker, My Accountant- by far the three most important people in my business life. They are the first three people on speed dial, on my office phone, but what makes them a vital part of what any entrepreneur does? Money comes in, it goes to the bank. The accountant analyzes every single number that is connected to an entrepreneur and their business. The lawyer minimizes trouble. Or handles issues that need to be screened.

First let me discuss about why it is good to invest in a strong law firm to back you up. In business law, there are way too many things to keep track of and laws are constantly changing, so it is virtually impossible to work without a lawyer for me. I personally believe lawyers cost less when they are working with you before you have a problem and they send you a big bill. Entrepreneurs are usually trying out a bunch of new ways to grow a business and it's just good to have a lawyer review what you are doing because it can save you from a big mess. Other times people are just looking to shut you down in any way they can, so it is better to have a lawyer deal with your issues, than you having to take on a big battle.

I keep my bankers extremely close. While any investor has their banker keeping an eye on their wealth, I believe they only keep a close eye on your wealth, when you keep a close relationship with them. Getting the best interest rates for money in the bank, helping invest funds, whatever it may be, your banker has to have an excellent relationship with you. In my opinion, I don't really think it matters whether you have a billion in the bank, or a dollar, stay close to the people who hold your money.

Out of the three, I probably communicate the most with my accountant. Lets face it, my lawyer "takes" my money, my banker "makes" me money, but my accountant saves me a lot of money. If anyone doesn't manage their numbers correctly, they can probably spending more than they should. If I made $100 and I spent $100, I'd be back in the same spot. With the knowledge of an experienced and smart accountant, it usually benefits most entrepreneurs save money.

Everything I just stated might be common sense. But I haven't gotten to the point yet. The MOST important thing is; the fact that everyone communicates with each other, probably more so than I communicate with each of them. I think the accounting firm probably is more connected with my law firm and my bankers than the bankers and law firm are with each other, but nonetheless, they all have to work together. If they didn't work together and communicate, I'd be doing a lot of unnecessary "middle-man" communication, which would be a waste of time.

How good do your "important three" work together?

My Friends Have Deep Pockets

2009-04-15T20:35:00.000-07:00

Everyone always talks about networking and how it can lead to better business, etc. But do you ever take a minute to think what networking is useful and what is possibly a waste? Without being ignorant, take a minute and think about the contacts (friends) you have. Now think about the contacts you have, which you can use to benefit you or your business in any way. You might notice that they are significantly less. Some people are meant to be nothing more than acquaintances and some you can really partner with and benefit from.

If anyone looked at my group of friends, they would notice that almost everyone is older than I am and most have deeper pockets than I do. Also, if you look at each persons field of expertise, each person is different. Some are involved in the internet industry, others in retail, a few in health care, etc. A major "problem" with entrepreneurs today, is that they don't like to explore outside of their own industry. For example, when people think of good places to network, they will usually go to conferences and meet new people- in their comfort zone. Which leads to meeting people who virtually do the same thing as them. While it is perfectly okay to do so- I always recommend meeting people from different backgrounds.

Here is where it really matters:

Say that I am taking up a new venture dealing with health care and tying it into the web in some way. While I probably have enough knowledge and know how of the internet field, I might not be able to put the pieces together when it comes to health care. Having the ability to partner with friends who are physicians would give me two benefits:

Their knowledge
Their financial capacity

It comes to be a win-win situation because none of my physician friends probably have enough knowledge to launch a web business- vice versa. Pulling everyone's knowledge into one basket and then having each person involved with their individual wealth really comes out to be a strong team.

I find that it is also very beneficial to learn from people who are older than I am. Whether it is someone in my field or any other, an older person usually has a great deal of more experience than I do. A lot of my friends give me advice and I can say that it is always great to take it into consideration because it helps avoid a lot of mistakes which cost time or money or even both.

And a last note...some may argue that networking doesn't necessarily have to mean people become your friends, but I will ask you this: Why would you do business with someone you barely know? Exactly, you wouldn't. Therefore, you have to become friends with people in order for them to actually be of any value to your future ventures.

The Next Season of 'The Apprentice'

2009-04-14T23:03:00.001-07:00

Most entrepreneurs go after their passion and dominate a business and move on to the next. Then they become a serial entrepreneur, creating multiple successful businesses or just exploring new fields. So part of being a serial entrepreneur myself, I am heavily thinking about getting involved in the entertainment industry. I had a thought last night, while I was thinking about ways that I could possibly explore getting involved in the entertainment industry because we all know it is a very lucrative field. The idea was for the next season of 'The Apprentice' -yes the very famous show which is produced by Donald Trump- the billionaire himself. The concept would be to bring actual serial entrepreneurs onto the show and have them work for Trump. It would be quite different than any other season because previously, there was usually a mix of entrepreneurs and people who have never owned their own business. And currently- the show is filmed around a bunch of celebrities.

What about the ratings?

With any business, without repeat satisfied customers, there would be no profitability. Since the show is a business, Donald Trump has to consider what would work and what wouldn't. In my opinion, who wouldn't want to watch a bunch of successful serial entrepreneurs working with each other- or arguing (etc.) with each other?

The Roundup

It might be hard to round up successful people wanting to appear on the show. But- I'll be the first to volunteer. Since the show couldn't consist of people who are CEOs of companies and don't actually own the company the work for, it limits the choices. But I still think if Donald Trump could get Dennis Rodman to come on the show, what does it take to round up some regular multi-millionaires?

To Conclude:

I personally think the show would be a hit. Serial entrepreneurs are in a whole different basket than any other crowd that has appeared on the show. I know a lot of entrepreneurs who have had great success and might have trouble actually taking orders from someone else for once. There would probably a lot of battling and ruthless business going on- but isn't that what people want to watch?

If the show ever materialized and I went on...I think I could make it to be THE APPRENTICE. Do you?

Leave your comments below and let me know what you think of the concept and maybe I can get Trump to consider...perhaps even having me appear on the show. I know all the readers would love that, right?

Disclaimer: I am not affiliated with "The Apprentice" in any way...yet.

Is Outsourcing Viable?

2009-04-14T12:13:00.001-07:00

A lot of businesses do it these days and there is usually one major benefit to the company, if not more, which is cost effectiveness. Outsourcing has its ups and downs, but in my opinion, I would rarely, if ever, outsource any of my business work. Now that doesn't go to say- you shouldn't hire companies to handle "one time" work, but you should consider the following when you outsource your work.

There are too many loose ends. Any new entrepreneur that is starting out a company, probably doesn't have much start-up capital, so they look to outsource some work, instead of hiring help to work under them. This is usually okay, but sometimes when starting out a new venture, you are really worried that your project will be exposed or even worse- stolen. Yes...you can probably sue someone or a company if they steal your ideas and make them their own, but honestly- if you didn't have the capital to hire someone to work under you- what say's that you have the capital to hire a lawyer and destroy the opposing party. So the bottom line is- hiring in house, can keep loose ends limited.

Time is wasted. Just like when you purchase a custom product from a company and then you want to make changes to the order, it sometimes cannot be done or it will just take a longer time. When you outsource, every change, be it minor, will take time to implement. If you are doing something in-house, changes are followed through on much faster and easier to work with.

You don't know what's going on. What does that mean?...Exactly what it looks like. When you outsource, you rarely know who is working on your project and beyond that- you just don't have the power to know what is going on at all times. Whenever we're working on a big project at any of my businesses, I always check in on the progress and anything else that has came to be a possible road block. I'm pretty sure most successful entrepreneurs I know, always like to have that power.

Quality is unknown. Whether you are outsourcing a small project or a long term part of your business, you don't know how the daily operations are actually being handled. For example, a lot of companies outsource their customer service call in centers, outside the U.S. I'm not saying that it is a bad thing, but a lot of customers are often dissatisfied, from what I hear, by the inefficiency to communicate clearly. If you are outsourcing some of your business, how do you know that the company will uphold the quality behind your company in the same way?

Employee talents are YOUR asset. As previously stated, outsourcing can mean various people working on your project. It could be a team of all stars or a team of people who know very little about what they are doing. Whatever it is, you just have access to their talents (or lack thereof), for the time being. When an employee is working for you, in-house, you have access to their talents, until the remain your employee.

There is a lot to digest when thinking about outsourcing, in which some cases it can be a great opportunity, but sometimes turn into a disaster. Entrepreneurs who are looking to outsource should always map out two scenarios. One of the possible outcomes if they do outsource and one where they don't. After everything is mapped out, it gives a better prospective on what route should be pursued.

Crafting "AWESOMENESS"

2009-04-13T15:51:00.000-07:00

Every entrepreneur has their goals: making $10 million, $20, or $500. But I say, why would you cap your success off at a number? I just go for it all. By the time I "retire," I don't have a goal of how much money I want to have made, but I want to have made money in meaningful ways. A little while ago, I said on Twitter, "If I'm not providing an AWESOME product or experience, I'd rather not make money from it." I got a response from an entrepreneur saying, they "wouldn't care about what they provide, if they made 'bank' from it." Personally, I believe this is a bad way of doing business.

In the world, there are two types of businesspeople,

Greedy, Lazy, and "Gray Minded"
Greedy, Creative, and Worthwhile.

Some may disagree with me and say, there are entrepreneurs who are not greedy, but I beg to differ. If an entrepreneur isn't greedy, they wouldn't look out for their own interest or success. And which entrepreneur doesn't want to be successful? But any day, I would rather be working with entrepreneurs who are the second type over the first.

Most entrepreneurs who decide to ride the route of being greedy, lazy and gray minded, don't really do anything that pays off in their career. They are just for taking other people's ideas and concepts and replicating them. I'm not saying a copy cat business won't survive, but what has that entrepreneur achieved? Nothing really. Other times, rather than copying someone else's business ideas, they will just manipulate their business and just try to maximize sales without caring about anything else, then when the business runs out of juice, they will move on to the next "game." Again, what has this entrepreneur achieved? Nothing. More of these types of entrepreneurs exist on the web rather than in say- retail, because it is easy to replicate a website and try to rip off someone's ideas on the web. In retail, the upfront investment is just too great for people to try something like that.

Back to the point of crafting an "awesome" business; what truly defines "awesomeness" for me?

A business who's products or services come with value.
A business which will last for a long time to come.
A business which can be positively recognized for what it is.
There is no deceptive marketing used, just educating consumers about what is available, with honesty.
Ultimate "awesomeness" is achieved when consumers can stand by the products offered.

I always tell entrepreneurs to discover the undiscovered, which will assist them in creating a brand for themselves, but a lot choose to rediscover what is already out there, just out of fear of failing. But if you rediscover something ordinary, what happens if you still fail?

Being creative and worthwhile comes out to be a positive business and sets up something to look back at. Making a quick buck or two, is just that. Come tomorrow, nobody, even entrepreneurs who seek this, will remember any value coming out of their business.

Filter The Noise

2009-04-12T13:50:00.000-07:00

It doesn't matter what industry you are in, there is always competition. Rather than fearing competition, I encourage it in any industry that I am involved in, because it makes me become that much better at what I do. A lot of people think there is only so much they can grow their business because there is always a larger fish in the pond. But I think that any entrepreneur, better yet- every person- can dominate their industry, if they learn how to handle the following:

The BEST Consumer Experience: It doesn't matter whether you are offering a paid service or product, a free one (like a blog), or even if you are working for someone. There is a consumer for everything and you have to deliver 200% to that consumer. If you are a business owner, you have to deliver 200% of what the customer expects. If you are a blogger, deliver something that people can go "WOW" to. If you are an employee, stick out in the crowd and really take control of your career and the consumer for your skills (the employer) should really see you as an asset to their company.

Approach With A Different Touch: There are a handful of people that can do what you are doing, but are you the only one that can deliver something a certain way? We all have our favorite types of food (Italian, Mexican, Indian, etc.), but we all have one place we choose to go to, to eat those favorite types of food. Why do we have favorites for our favorites? Because they deliver like no other. If you learn how to deliver with your own style and a way that no one person or company can, you will be building a brand right there.

Explore New Horizons: Too many people want to keep exploring what has already been explored. So they can only achieve what has been achieved. If you start exploring what nobody has explored before, chances are you will be able to achieve what nobody has been able to achieve before. Essentially, maximum recognition for your skill or product.

Get People to Compare: You do what people do, but you do it 10x better or you offer a 10x better product. People then compare. If people are able to compare your greatness to someone else's "averageness" then you should be able to dominate your market, one customer at a time. People will spread the word for you, instead of you having to lead them into a box, where only your product is available.

Acknowledgment Is Confidence: Going back to the previous point, if you can acknowledge that there are other strong players in the industry and point that out to your consumers, it shows that you don't fear competition. When you are confident enough to acknowledge others for their skills (or lack thereof), and know you will be able to capture the audience regardless, people will automatically see that you are strong and confident in your abilities to provide. This may include acknowledging another company for a rock star product, but then consumers see that you have a bunch of rock star products. Or sticking out in a group of people a company is looking to promote, where everyone has excellent skills, but it is a no brainier to see that you have the most skills.