Up and Running Blog

August 2009

I had a slightly disturbing talk with an entrepreneur at a smartups.org meeting last Thursday night. Smart-ups is a local group getting entrepreneurs together in the Eugene-Corvallis area in Oregon.

Image by Chika on Flickr

This man will probably make it. There was nothing dumb or naive about him, and he was old enough to know better. But the underlying assumption he seemed to be making is worth posting about.

He asked me how he would get money to start a new venture related to worms and compost. He seemed surprised, and maybe even discouraged, by my realistic answer.

I said relatively few startups get investment; that most startups make it on their own, from grit, work and getting something they can sell to customers early on.

I told him investment is really only for companies that can grow quickly and sell out soon enough (three to five years) to make it worth the investors’ money. For the investors.

And I told him that investment is particularly hard to find these days. And that he should look at how to get his company up and running on a smaller scale, and start selling.

I was surprised and disappointed that he seemed surprised and disappointed.

And yes, we call that bootstrapping.

(Photo credit: by Chika on Flickr)

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Consider yourself one of the first to know about the new Bplans.com pitch site at pitch.bplans.com. That means you can be one of the first to pitch and one of the first to get posted.

No, it’s not about putting your business in front of investors, although maybe it could be partly related to that. Instead, it’s about the art of the pitch. Free publicity perhaps, too, and tips or comments. What it is about is the art of the pitch. Doing it right, doing it well and getting yourself and your business up and showing up. (And let’s pause here to note that The Art of the Pitch is a chapter in Guy Kawasaki’s The Art of the Start book. Click here for his reading of that chapter.)

Take your browser to pitch.bplans.com and you’ll see the “Add pitch” button you can use to upload your pitch. What follows is a page of basic information (name, address, logo, etc.) and then a second page where you can add a YouTube video URL if you want, or short texts to deal with 10 key topics.

This is all free to the users. What do you get out of it? A dedicated URL you can use to refer people to your business summary, plus the possibility of comments; this is free publicity, and publicity is assumed to be good. What do we get out of it? Bplans.com is about starting, growing and planning a business, so we get more interesting stuff on our site.

And me? I like business pitches. That goes from the 60-second so-called elevator pitch to the 10- to 20-minute business pitch with slides. To me, business pitches, when well done, are fascinating. I see a lot of them. I see them in my role as a member of the Willamette Angel Conference, and I get to see them as a judge at venture competitions, including Forbes’ and several business school contests. And I’ll be watching them on this site, too.

Like they say in the commercials: Do it today. Do it now. Click here.

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Patty Shutt, of McHenry, Illinois, had worked in chiropractic offices for over 17 years when her boss decided he wanted to start a traveling clinic. So they set up a home office for Patty, creating a virtual connection between the chiropractor, his assistant, and his patients.

When business slowed down due to the economy, Patty found herself with a tough choice. “I considered going back out and finding another billing job. However, I really enjoyed being around the house for my daughter.” So instead of looking for a job working for somebody else, she embarked on a different path. “I decided to take a medical billing course online and take the plunge by opening my own billing business.”

She started Alternative Billing Solutions in early 2009, offering chiropractic physicians a virtual billing service. She positions herself as an additional team member, working in conjunction with the chiropractic office’s staff to enhance the clinic’s billing. “My main focus is to ultimately perform the entire suite of billing duties; however I will also customize a package to fill in the gaps for a clinic’s billing department as well.” She sees the service she offers not as a way for clinics to outsource jobs, but as a way to make them more efficient. “By allowing me to handle the billing, which is really time-consuming, the clinic’s staff can use the extra time to focus on the growth of the practice, which is then a win-win for everyone!”

Patty says she really enjoyed the process of planning her business. “It certainly was a challenge! I had a lot of really good ideas; however, I needed these ideas organized,” she says. So when a friend recommended Business Plan Pro, she checked it out. After working through her plan in the software, she decided to take advantage of another service Palo Alto Software offers, and signed up for Business Plan Pro Coaching. Her expert coach helped guide her in the right direction and keep her on task. “I was able to gather specific ideas and put them together so I could focus on where I wanted my business to go, focusing on which services I really wanted to offer and which services to keep away from.”

Regularly revisiting her plan is a scheduled event for Patty. She says she tries to review it monthly, though as her business takes off that isn’t always easy. Getting back into the plan and making adjustments as situations change helps her maintain the hard-won focus she found during the planning process.

“I have a new level of confidence because my business success depends on my dedication and hard work. It is definitely worth it,” says Patty, who adds that you have to believe in yourself in order to achieve your goals. It’s what she did, and she adds, “It is really the most fulfilling experience I have ever had.”

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Why Cash Flow is Like a River — Tim Berry uses a river analogy, and video to go with it, to explain cash flow.

Behind the Scenes, a Lot of Activity — Email Center Pro developers have made some improvements which speed up the service and allow them to sleep through the night.

Troubadour takes bad customer service to task. Song #2. — United Airlines broke the wrong guy’s guitar, and the customer service lesson they’re learning is one we should all take heed of.

3 MBA Tricks to Shorten Boring Meetings — Tim Berry shares some secrets he learned in business school to help you deal with long meetings.

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Remember the (stupid) “out of the box” cliché?  Yeah, I hate it, too . . . but a lot of entrepreneurial opportunities involve fixing broken things. Disruptions under way, and disruptions needed. I’m just thinkin’.

  1. Disruption there, waiting for you: YouTube is free, powerful and extremely easy to embed in a website, and almost universal. Can Google support it forever? Can it support itself? Are you working with it yet? Will your competitors work with it?
  2. Disruption needed: Textbooks are too expensive. When setting up my start-your-business course, just as an example, my students can get Guy Kawasaki’s The Art of the Start for $18. Most textbooks on entrepreneurship sell for about $120.
  3. Disruption disorganized, struggling to be born: something to bring entrepreneurs and investors together that isn’t illegal, isn’t haphazard and works. I’ve posted on this before. Angelsoft.net and thefunded.com are on the way. But seriously, investment falls, recession . . . isn’t it time for something new?
  4. Disruption and now what? Doing the hard work in journalism, like investigative reporting, digging and getting paid for it. How’s that going to work in the future? Related note: the Huffington Post has full-time journalists on staff now; is that the news media of the future? (and disclosure: I’m biased; I post (proudly) on Huffpo).
  5. Disruption needed: all those good blogs nobody notices. Finding needles in a mountain of needles. The scarce resource is not finding, but sorting through.

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You don’t have to do a formal business plan to get the benefit of business planning. Why not start the planning process today; or, if you’ve done a plan in the past, reinvigorate the planning process. Real planning is modular, and iterative, not step by step. Here are some things you could do today.

  • Set a review schedule now. When are you going to double back and look at results? Put a date on it.
  • Develop assumptions. List them. 
  • Review or develop your strategy, the heart of any plan. How are you different, what are you better at? Who are you selling to, and who isn’t your market? What are you not doing, and why is that important?
  • Review or develop milestones: dates, deadlines, activities, budgets, and who’s responsible.
  • Develop your basic numbers, and write them down: sales forecast, expense budgets.

And don’t feel compelled to do all of these today if you can’t. Do just one. Pick a card. Start anywhere, and get going. One step at a time; and you choose which step.

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Ask Tim Berry

by Chelle Parmele on August 25, 2009

Fresh off of reading dozens of business plans for venture competitions, business planning expert (and competition judge) Tim Berry shares his insight on what entrepreneurs get right and wrong in their business plans.

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Questions That Sell

by Guest Author on August 25, 2009

We are working on a new campaign for a client and spent a few hours today looking at competitive web sites, ads and brochures.

After about three hours we looked at each other and said, “Can you remember anything any of these companies said that stands out?” Ken said, “I bet if I took all these brochures, and removed the company name and logo, even our client couldn’t tell them apart!”

Every single firm started their pitch with a description of their products and services, and lots of detail on how great they are. Then they added thrilling descriptions of their plants (usually with a picture of the parking lot) and a price list.

No one acknowledged any of the pain, concerns, questions or worries prospects or customers might have. It was all me! me! me!

It’s too easy these days to build your marketing around what you want to offer. The real trick is to package products customers want to buy.

People make buying decisions in ways that we may find hard to imagine. The mental, logical process and the emotional, feel good process come together at some point in every sale. The problem is that this process is invisible to the marketer.

The questions prospects ask are clues to what matters to them. So, forget about the shiny new features of your gizmo and address what’s really on their mind. Do it now, because some of your prospects won’t think to actually ask, they’ll just move on.

Every time a prospect or client asks a question, write it down. Collect these questions on an ongoing basis, and make every sales person note the questions they receive. In a very short time you will see patterns developing. If you are getting some of the same questions over and over again you can bet that your marketing materials need to address the answers.

FAQ (Frequently Asked Questions) pages are popular on web sites. Create one for your sales team as well. Make a game out of getting good questions. Ask everyone in your organization to bring a client or prospect question to a weekly sales meeting. This can and should include everyone who has any contact with clients.

Develop the art of asking questions too. Every sales trainee has been schooled at some point to ask probing questions to find a prospect’s pain, but really successful sales folks go beyond that fully understand what a prospect is thinking.

Don’t take a prospect’s question at face value—your job is to help them understand what they really need to know. Sometimes all you need to do is ask them to “tell you more”.
For example, a stock question is “What is your customer service policy?” The temptation is to launch into how great your service is (just like everyone else), but a more valuable step is to find out what good service is to them or what bad experiences they may have had, so you can customize your answer.

If you really want to make massive improvements in your sales, service and communications technique, buy a mini digital recorder and record several sales calls. Some clients and prospects will be a little nervous about this practice so you will need to choose wisely and respect boundaries, but do this once or twice and you may make some pretty interesting discoveries.

Another great thing about gathering your list of questions is that it arms you with the questions and answers that your prospects may not ask but are thinking.

Our mentor John Jantsch suggests that every organization should create a marketing page and web page that is titled something like “Questions you should ask.” In some cases your prospect may not really know how to analyze a purchase from you. If you educate them on the best way to think about your product or service, give them the questions to pose to competitors, you get to frame the buying decision in a way that plays to your strengths.

Online surveys have become a powerful tool for the small business. By asking your clients everything from “How much should I charge?” to “What’s the best color for our logo?” you can test your assumptions before you push something out to the market.

Creating simple satisfaction survey and serving them up to each individual customer allows you to find holes in your customer service and collect comments, good and bad, from the street.

Planning what your readers would like to hear more about in your next five newsletter issues is as simple as proposing topics in a survey.

Journalists love survey results and will often take great interest in the results of research conducted by an industry expert—that means you! Conducting some basic research about trends and habits in your industry is a great way to add some expert status to your brand and could land your results in a publication or two about your industry.

Sharing your survey results with prospects is a great way to help educate them on important information that may impact their buying decisions.

ducttapemarketingbadgeKen Burgin and Elizabeth Walker are the Marketing Masters (www.MarketingMasters.ca), a full-service marketing and advertising partnership that helps build busy businesses. Send your ideas on How to Thrive in Times Like These to liz@marketingmasters.ca or ken@marketingmasters.ca, or call 1-866-908-5720.

web: http://www.marketing,masters.ca
blog: http://thebuzzwithkenandliz.blogspot.com/

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So, I do follow my own advice. Yesterday I posted here about how putting video on your site is relatively easy. So today I’m posting this video here. I did it last weekend. I confess; I was motivated in part by wanting to do something with my new FlipHD video camera.

The river seems to drown more people in the slow deep inviting part than in the crashing and splashing white water part. Similarly, unexpected Cash flow problems are more likely to catch the growing company that’s enjoying sudden growth than the declining company that knows it’s in trouble.

Here’s my video explanation of that, as posted on YouTube on Sunday. By the way, you can click here to go to the YouTube original, which includes an HD option.

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Denise O’Berry knows cash flow. Her book Small Business Cash Flow is short and to the point, easy to read, and full of good advice. I’m not big on Facebook, by any means, but I have become a Facebook fan of that book.

And speaking of cash flow, Denise has a contest going this month that can give you $50 worth of gift-certificate cash flow, if you have the best photo or best video about the book. That’s at her site cashflowtruth.com.

And Denise does an excellent blog called Just for Small Business. It’s a good resource.

And no, by the way, we’re not related; her last name is O’Berry, mine is Berry. There may be some connection back in the Middle Ages in Ireland, but not that we know of. I’ve never met Denise, but I have talked with her several times, and I follow her as @DeniseOberry on Twitter. I like her work.

Tim Berry
President and Founder
Palo Alto Software

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