Up and Running Blog

August 2009

10 Steps To Unleash Your Lead PR Machine

by Guest Author on August 13, 2009

Take a systematic approach to small business public relations.

PR (public/media relations) is a powerful small business-marketing tool. By PR, we mean getting positive press mentions about your firm in local, trade and national publications.

These mentions are so powerful because they are seen to come from unbiased third parties, so they are more believable. People may think ad messages are just sales hype, but when they read about how great you are in the local business journal…well, it must be true!

A lot of people think that gaining positive PR is luck. No! It’s the result of a systematic commitment to generating media coverage.

The hardest part is getting the PR machine rolling. Once you get coverage, it just keeps on coming. The more coverage you get, the more the press will keep coming back to you.
Here’s our step-by-step system for generating positive press coverage.

Step 1 – Build relationships before you ask for the order! Target your media sources, including a growing list of internet-based media and news resources. Start networking with these media targets today by requesting editorial calendars, sending industry information, commenting on stories they write, passing on surveys and data, inviting them to workshops.

Tip: Network with the advertising sales folks at the publications too, they will give you lots of good information about who does what and where in the course of trying to sell you an ad.

Step 2 – Create three or four central media themes for the year that support your core-marketing message.

Step 3 – Create a list of ten to twelve minor, but interesting, marketing related themes for ongoing PR. You need to fill in with volume while you are working on the front page feature.

Step 4 – Create a PR calendar (download one here) and assign a PR theme and goal for each month. Focus on one publication or one writer and you will be amazed at how much you can accomplish. Remember to target editorial calendars (Publications will often assign monthly themes, so match your pitch to the theme.)

Step 5 – Write a fully developed pitch, for each of your major themes—a pitch is a story idea that you can “pitch” to a member of the media. This is not a press release, but more of a sales job. Wrap your story idea around a news angle or trend and package the pitch to interest the readers of a specific publication you are pitching. You can change and repackage your pitches as needed. These are reserved for your central media themes.

Step 6 – Formulate one-page press releases (Send for the free Press Release Creator we talk about at the end of the article) with catchy headlines for each of your minor themes.

Step 7 – Once a month, target your core media list and distribute a press release or pitch for a major theme. Post all press releases on a national wire service, such as PRWeb, and send copies of your press releases to clients and prospects. Don’t forget op-eds and letters to the editor.

Step 8 – Follow-up with your core media list by telephone and offer some new piece of news or trend angle that you did not include in your pitch or press release.

Step 9 – Track media coverage in local and trade press, set-up Google Alerts for a number of key related terms and reprint for marketing purposes any media coverage received.

Step 10 – Send handwritten thank you notes to members of the media to thank them for an interview or mention.

Are you starting to get a glimpse of how combining advertising, PR and referrals can build momentum and create marketing energy? Try it and see the results.

You can get a free online press release creator that allows you to instantly create powerful, attention grabbing, perfectly formatted press releases in an instant at: www.ducttapemarketing.com/Instant-Press-Release.htm

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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Customer Spotlight: Peters Path plans for philanthropy. And success

by Jay Snider on August 13, 2009

Most new businesses start out narrowly focused on the bottom line. With so much financial uncertainty in the market today, building philanthropy into a business plan can be a scary proposition. But that didn’t deter Christine Crowley Peters, President and CEO of Peters Path. Her philosophy is, “Don’t let fear hold you back.”

Christine Peters,

Christine Peters, President and CEO of Peters Path

Writing a business plan is like getting an MBA

Peters put that personal credo into action in 2008 when she left a career in cosmetology and started Peters Path Corporation, located in Atlanta, Georgia. The Peters Path website launched in March 2009, selling fashionable and hip clothing and providing customers with an opportunity to experience socially responsible shopping.

Peters Path is Christine’s first venture into entrepreneurship, and she says she found just planning the business to be quite a learning experience. When she started using Business Plan Pro to write her business plan, it broadened her ideas about her company. “Our business plan was developed as the primary tool for planning and managing our business. The process forced a rigor into both the breadth and depth of our thinking about the business. In many ways it led us into areas we might have preferred to defer, as they were difficult, time-consuming, and stressful. The education we got as a result feels like it would be an MBA.”

All that time spent was worth it. She says she and her partner, Vice President/CFO Ronda Balfe, work diligently to maintain the ‘for-profit/philanthropy’ business model they’ve adopted and have built into their business plan. “It was my focus and I made it fit. We do regular pro formas based on the data built in to our business plan. Further, the plan is a dynamic document which we flex with new information as it evolves.” In fact, says Peters, she has gone back to the software to update her plan so many times that the CD with her saved plan file “has scratch marks through all parts of it!”

Charities benefit from every sale

Peters Path donates a portion of the proceeds of every sale to non-profit organizations that promote equality and empowerment, fight poverty, aid those less fortunate, and foster community service. Customers choose from a select list of charities when they purchase online, letting the shopper select where they want their money to go. “Peters Path was started as a way for me to combine my love of fashion with philanthropic endeavors, which have played an important role in my personal life, and my children’s lives,” Peters says. The company’s products include comfortable, stylish clothing and unique, hip jewelry, from brands including Alternative Apparel, Johnny Was, Angel Court, Young Fabulous and Broke, DL1961 denim, and Acholi Beads, which are made from recycled materials in Uganda by women who fled the civil war. They also carry bamboo clothing, and Peters Path’s own label of organic T-shirts.

In addition to the money donated from each purchase, the company also holds online fundraisers, where 100 percent of the profits from the sales of their t-shirts are donated to a specific cause. A recent sale raised funds for Helping Children Worldwide and the Child Rescue Centre. In additional to aiding these charities financially, the company seeks to help raise awareness of their causes. “I know that everyone has the power to make a difference. Whether it is by purchasing a product, becoming active in your own community, volunteering your time… there are so many ways to help. We want to help others ignite their own flame and let their passion make the world a brighter place.”

Teamwork is a key to success

To be able to donate as much money as they do, Peters Path has to keep a watchful eye on spending. “We are operating on one corporate debit card, and only one credit card account with a $2,500 limit that has to be paid in full monthly. It is very difficult to operate with limited funds like that. I could never do that part of our business,” Peters say, praising Balfe for the skills she brings to the table. Peters is emphatic about the value of a good partnership that involves people with different skill sets working together. “She [Balfe] complements me perfectly, as we are very different, and she brings a perspective to the table that is vital and crucial to our existence — that of managing our finances and understanding our budget. She is the left brain and I am the right brain.”

Peters advocates doing “stress tests” on your business plan — she acknowledges that the term may have a negative association these days, but adds, “the concept is very important to every business. The factors to use to stress-test different business plans will obviously differ, but should be developed.” She suggests creating worst-case scenarios that are actually far worse than you would expect, reducing your best-case scenario numbers by 20%, even dropping income forecasts a significant amount to see just how much your business will handle. When you do this, you provide yourself with an idea of what your business would look like in a whole range of situations. And by planning for that range, you’ll be in a better situation should any one of those scenarios come to pass.

Learning from mistakes

Being an entrepreneur is a new experience for Peters and, as she says, “I’m loving it.” She says she actually enjoys the roller coaster ride that running a business can be — knowing that for every good day, there’s bound to be a bad one. “While hopefully there are many more victories than defeats, both are sure to transpire. The challenge, of course, is to be resilient after the knockdowns and keep increasing the ratio of victories.”

Peters has found great value in learning from her experiences, and from the people she brings in to help run her business. “When you fail in an area, which you will — I do regularly — learn from it and really consider how you will do it differently next time. It’s from my mistakes in my life that I have learned the most.”

Peters is a big believer in figuring out what you want to do and making it happen. She says there are all kinds of resources out there for people starting up businesses. “I have attended many classes given by SCORE, and their advice and informational resources are incredible. I would recommend starting there to anyone considering starting a business. If you spend some time researching small businesses, you will be amazed at what is out there and available to you.”

A final bit of advice from Peters is that it really doesn’t matter what you’ve done before or what you think you don’t know. “What matters is today and your desire to learn new things. You just have to learn how to combine [your fears] with perseverance, determination, and passion, and then let those emotions overpower fear and be your driving force.”

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The Blog Week in Review — 8/6/09

by Jay Snider on August 13, 2009

Shark Tank – Perfect your pitch — A new television show illustrates the power of presenting a good pitch to potential investors.

Critics that matter — Seth Godin’s excellent post on paying attention to the right critics and ignoring the ones who don’t really matter.

About Entrepreneurs Who Say They Don’t Plan – Tim Berry takes on a blogger who says writing a business plan is dumb.

The 3/50 Project to save local businesses — Palo Alto Software gets behind a nationwide movement to encourage consumers to ‘buy local.’

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10 Tips for Dealing with Startup Stock Options

by Tim Berry on August 13, 2009

Stock options can be wondrous things. They can also be smoke and mirrors, or a pea under a whole bunch of walnut shells. So here are some points to keep in mind, whether you’re the founder offering options to your startup employees, or the employee being offered the options.

  1. The classic stock option is an option to buy a share of stock at a specified price. Say you get to buy some number of shares for a penny each. If those shares are worth (meaning they can be sold legally for) more than that penny, you make money. In theory.
  2. Understand the basic numbers on shares in a company: charters specify how many shares there are, and if you know that number then you can guess what a share is really worth by dividing what the company might be worth by the number of shares outstanding. So if that option to buy a thousand shares for a penny each is for a company that has 10,000 shares outstanding, it means you can buy 10 percent of the company for $10. Pretty cool, if the company is worth more than $100. But if there are 10 million shares outstanding, then even if the company is worth $10 million, your options are still only worth about $990. That’s hardly a great bonus. Notice how important the number of shares outstanding is: knowing that it’s 1,000 shares does you no good until you know how many shares exist (which means they’ve been issued, or promised). Quick quiz: Which is better–options on 1,000 shares in a company worth $50 million with 10,000 shares outstanding, at $1 each, or options on 10 million shares at one penny each, in a company worth $200,000 that has 200 million shares outstanding? (The first case is worth $4,999,000, and the second is negative, because each share is worth only one tenth of a penny, and you have to buy it for a penny.)
  3. None of this matters until a company is actually traded. Call that a liquidity event, and investors call that the exit. That’s when those shares suddenly mean money. It used to be that successful startups would “go public,” meaning they’d register their stock on one of the major markets, following carefully regulated procedures, and then it became legal for normal people to buy and sell the shares. That’s also called the IPO, or initial public offering. Until then, only “accredited investors” could buy them. Meaning that it was pretty hard to sell them; usually impossible.
  4. Shares can also be worth money when a big company buys a startup. If the buyer pays cash, then people with options get to cash in as long as their option price is lower than the per share price of the acquisition. These days IPOs are extremely rare, so exits are usually by acquisition.
  5. There are a lot of legal restrictions. Stock options have been abused for years. For example, they’ve been used by companies to pay people in a way that ends up getting taxed as capital gains, instead of regular income–a much lower rate. So the government watches them very carefully. Issuing stock options takes some legal work.
  6. People get fooled by stock options. I know someone who left one company to go work for another because the second one gave lots of stock options. It felt like a lot of ownership, but there was no chance the second company was ever going to succeed and achieve an exit. So options can end up being like shiny things to lure people, with very little value.
  7. When you get offered stock options in a startup, you have some tax choices to make. If you buy the options quickly, then you’ll hold them longer and pay long-term capital gains taxes (which are lower) when you cash in. On the other hand, if you don’t buy them, and the company never gets to an exit, then you’ve saved yourself money.
  8. Your share percentage can change. You might have options for 100,000 shares in a company that has 10 million shares outstanding. That’s a 1 percent ownership. But sometimes that same company can issue new shares and bring in new investors in a way that dilutes your option shares. So they decide to get investors in by giving them 10 million shares and they just issue those shares. Your 1 percent just became half a percent. Depending on terms of the options, rights, and legal maneuvers, that may or may not be legal (caveat: I’m not an attorney; I’m sharing my experience in the field, not legal advice.)
  9. Companies that give away options too easily can hurt their capital structure. If a lot of consultants and advisers and accountants and lawyers are getting compensated for their professional work with stock options, then investors are less likely to value the stock. A lot of startup business plans try to define how much stock ends up in the hands of founders, employees and investors. Things change, of course, but it’s a good idea to have some sense of proportion.
  10. The best use of stock options in a startup mode is as a message. The people who get the options should realize that these are very long odds, but there is a message, from founders to employees: “Work with us, stick with us, and if we make it big you’ll make money, too. ” That’s a nice message to send.

Here’s an interesting tidbit in business history: when Apple Computer went public in 1980, it generated more millionaires (about 300) than any other company in history. That included some people who were very low on the pay scale but had been given options early.

—-

And a late addition, a week later: Oh no, I forgot to discuss vesting. Stock options are normally vested over a period of time, rather than given all at once. Options are not really yours until they are vested.

For example, options might be vested over two years. Depending on the fine print, that could mean either that you get them all at the end of two years if you manage to stay with the company; or that they are vested according to some schedule, like half after the first year and the rest after the second, or 1/24 of them every month for 24 months. Vesting makes a big difference.

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Soliciting unsolicited praise

by Jason Gallic on August 12, 2009

Lots of things can happen when a job is done well. Here are a few:

1. Personal satisfaction
2. Sales for your company (or yourself)
3. Preservation of the natural “buying-selling” ecosystem
4. Unsolicited praise from your client base

This particular post is about number four. Every once in a while, a user of your product or service might find themselves so overwhelmed by the quality you provide that they decide to take matters into their own hands.

It happened to Email Center Pro the other day. One of the service’s users ( Jennifer Haubein of Websites 2 Grow) decided that telling us how impressed she was no longer sufficed. She wanted to tell others in her circle of influence.

Here’s what she said:

And here’s why she said it (in other words, here are some simple rules for soliciting unsolicited praise. Please note that simple doesn’t mean easy.):

1. Customer Service: If this sounds cliche to you, then you’re not managing it correctly. It’s not a cliche, it’s the bottom line. Customer service can look very different depending on the situation at hand. At all times, however, keep the customer in mind. Zappos did; they just sold for nearly $1 billion. I’m just saying.

2. Customer Support: The customer is using your product/service, you’re meeting their service needs and then something goes wrong. Do you hide and distribute the blame? Or do you step up and meet their need at every turn? (Please note that this can blur quite appropriately with customer service.)

3. A High-Quality Service/Product: This speaks for itself — somewhat. You certainly can’t get away with a sub-par product or an inconsistent service, but just know that even good (rather than amazing) products/services can enjoy success if attention is paid to the other numbers in this list.

4. Did I Mention Customer Service?: This can’t be understated. Be remarkable. It works. The most uplifting emails and calls received at Palo Alto Software are by those who were even more impressed with our service and support than with our product.

Happy soliciting!

Jason Gallic
Product Manager for Email Center Pro

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Shark Tank – Perfect your pitch

by Chelle Parmele on August 12, 2009

A new television show debuted this past weekend, a show based on a popular UK show, Dragons’ Den.

The US show is called “Shark Tank“.  The “tank” is a panel of highly successful business people with investment money to spend. Each week 4 to 5 entrepreneurs pitch their idea to the panel. There is a monetary amount each entrepreneur needs in exchange for a percentage of the business. They pitch the deal and the panelists are either in or out.

I didn’t watch the show on Sunday when it aired, but I did watch it on Hulu.com this morning in preparation of this post. Generally I am uncomfortable with watching these types of shows, but this one held my attention. Mainly because of the quality of the pitches.  All of the presenters, while obviously nervous, showed a lot of passion about their idea or business. The pitches ranged from uncomfortably personal to a little ridiculously arrogant, and they were all compelling to watch.

I couldn’t help but wonder how many hours of practice went into those pitches.

Working at Palo Alto Software for seven years – I’ve read my share of business plans and have watched more than a few pitches, and let me tell you, I have great respect for the people who get up in front of a bunch of skeptical, would-be investors to describe their business dream and how, through the power of their hard work and good planning, they will make money.   I’ve listened to some really amazing pitches for bad business plans, and some horrible pitches with fantastic business plans.

Watching the show I couldn’t help but come to the conclusion that how you pitch your business idea, and just as importantly, how you pitch yourself, is key to your success in obtaining investment money.

If you missed the show, like I did, the pilot show is embedded below, or you can search for the “Shark Tank” on hulu.com. The next episode is scheduled for 9:00 PM, Sunday, August 16, on ABC.

‘Chelle Parmele
Social Media Marketing Manager

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Franchise Myth Busting Mything Its Mark

by Tim Berry on August 12, 2009

This piece called 8 Franchise Ownership Myths got my attention the other day. I like myth busters. This one, however, surprised me; some of those myths seem like they are really true. For example:

Myth 2: I can only be successful in a business I love.

Makes sense to me, so I guess I buy the myth. But Terry Powell says:

Believe it or not, businesses based on an owner’s background have the highest failure rate. Your franchise business is a vehicle to the lifestyle you’re seeking. If you limit your choices to what you’re familiar with or good at, you’re placing yourself at a major disadvantage by ignoring a huge number of possibilities that are outside your realm of past business experience.

Then there’s this one:

Myth 4: I can’t be in a business I know nothing about.

Which also seems to me like it would be true, but Powell says this one is a myth because. . .

Of course you can. It’s natural to want to stay in your comfort zone and stick to areas you have experience in. But as a franchise owner, your job is running and growing your business, no matter what it is. Remember, you have transferable skills.

Maybe. Do most people getting into franchises come out of management somewhere? Do they have business experience? I don’t know, but I do wonder. Aside from studying McDonald’s for a couple of years while consulting for Apple Computer, teaching at McDonald’s Hamburger University once or twice and doing a custom business plan software job for McDonald’s, I haven’t had a lot of experience with franchises. And even that was more than 12 years ago, all of it.

So I asked my friend Joel Libava. He’s on Twitter as @franchiseking and his blog The Franchise King is on lots of lists of better business blogs. He’s also a fellow contributor to Small Business Trends and some other blogs. It turns out that Joel had trouble with some of those myths, too.

On his Myth 6, “Franchises stifle creativity,” Powell says, “The only limitations you have are those that have already been proved to generate income.” Joel says:

That is untrue. Folks, you still must do things their way–not your way. Just because a couple of McDonald’s popular sandwiches were suggested by some franchisees, please don’t go into a franchise thinking you are going to be able to do that. You won’t have time to think of wonderful new ideas. You will be running your business. From their blueprint.

On Myth 7, “I can’t afford a franchise,” Powell says: “Sure you can, if you look at it for what it is: an investment in your future.” But Joel points out that Powell sells a franchise:

Interestingly enough, Terry’s own franchise offering comes in at–you guessed it, under $100,000. Most franchises that have a total investment of under $100,000 will involve heavy sales and marketing. Most folks are not that sales-oriented. If you don’t have a dynamic sales personality and superb sales skills, be careful of the lower investment opportunities. If they don’t require a physical location, that means that the customers won’t be coming in to see you. You’ll be going out and finding them.

On Myth 8, “I’ll have to quit my job to become a franchisee,” Powell says: “Many franchise concepts are specifically designed for people who are working other jobs.” Joel doubts it:

“What? Only a handful of franchise opportunities are designed for people that are keeping their jobs. They require deep pockets and are usually multi-unit franchises that take a lot of time to grow and make money at. But they can be great opportunities for some.”

So there. Different points of view, always interesting. Whom do you believe?

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Jim Blasingame's Award

by Tim Berry on August 11, 2009

I’m proud to pass on the news that Jim Blasingame won a big award at the American Chambers of Commerce meeting last week. Here‘s the press release.

I’m pleased to join Jim on his Small Business Advocate radio show every once in a while. The first time I did that, back in 1997, I thought he was a natural interviewer and a good guy. I decided soon after to become a sponsor as Palo Alto Software.

His show and his fame have grown a lot since then. He’s won a number of major awards on his way up. Take a look at his website, sample his audio archives, and you’ll see why. He’s compiled more than 10 years of good practical interviews on important subjects in small business.

Tim Berry
President, Palo Alto Software

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An Offkey Note

by sara on August 11, 2009

Both Business Plan Pro and Marketing Plan Pro powered by Duct Tape Marketing stress the importance of understanding your target market. Who needs your products or services, and values them? What can you do for them that nobody else can? What factors drive their purchasing decisions, and how do you build and retain their loyalty? And just as important; who do you NOT want as a customer?

Assuming you’ve done your homework, or are already in business and know your customers very, very well, you then have the tricky job of re-working your product or service or brand or customer service approach (or all of the above) to most appeal to the people you really want to get and keep as customers.

You want these people to see themselves and their needs, or maybe their ideal selves, in every interaction they have with you, your company, your products, etc.

If you are selling high-tech gadgets to new entrepreneurs, you do not package it in plain brown wrapping paper tied with string, sent book-rate.

I was struck recently by the weird design choices that can result from a process (or perhaps a decision-maker) who was not clear on their target market. Back in July, Chris Ryan of The Apple Blog reviewed the history of some key apple icons.

He noted in passing that some applications “have also seen different icons with new versions.” He’s not kidding. The visual example he offers is for Apple Keynote, a presentation application.

Let’s take a closer look at what the icon history is showing about how Apple understood and tried to engage their target market.

apple-keynote-2003

The icon for Keynote 2003 shows a polished wood lectern with classic ionic columns, symbolic of neoclassical architecture and, more broadly, established, secure institutions. It also boasts a built-in electronic microphone. The podium evokes a crowded lecture hall at an elite college, where learning bridges tradition and innovation.

apple-keynote-2005

In 2005, Keynote 2 has a radically different iconography. Our translucent glass lectern now sits atop a polished metal base, the electronic component is more pronounced, and the contents of the presentation, rather than the structural features of the podium, are the focus. This is an icon aimed at the high-tech business person, presenting financial or marketing data in a corporate environment.

What happened between 2003 and 2005 to cause this change?

Well, Apple’s iPod had created a major buzz, even among PC users, a factor Apple took advantage of with the release of the Mac mini, aimed at getting PC owners to switch to Mac at little cost.

The ongoing Microsoft/Apple feud saw Apple winning out in design during this same year. As John Markoff of the New York Times noted in May, 2003, “Apple executives took obvious glee last week in noting that the software centerpiece of the Microsoft conference, new graphics software that is scheduled to appear in “Longhorn,” Microsoft’s 2005 version of its Windows operating system, apes features that have been in Apple’s OS X operating system since 2001.” (Longhorn was the working codename for Windows Vista, finally released in 2008.)

Since 2001, the general wisdom has been that PCs running Windows Office are the overwhelming default in corporate America, where IT departments want to standardize the proprietary software on their entire structure’s collection of computers. Apple, on the other hand, was for “cool,” leading-edge, personal use. The rogue employee with the Powerbook was invariably on the cutting edge of technology, compared to his desktop tower, PC cubicle-farm colleagues.

Apple’s Keynote 2 icon brings that leading edge, high-tech vision of the Mac user to the corporate boardroom. It presents a direct challenge to the notion that Microsoft Windows, and specifically PowerPoint, are the hallmark of a successful business presenter.

So far, so good.

apple-keynote-2007

So what happened?

Keynote 4, released in 2007, is an unnatural muddle of the two target markets that were so beautifully, and so clearly, addressed by the earlier icons. They have retained the metal base, but it’s now topped by a plain wood platform. The microphone has shrunk again, and the presentation, now centered and squared, is in plain black and white.

Their new target market appears to be an aesthetically challenged accountant, sent at the last minute to present the quarterly report to a tech-savvy audience with whom he is not entirely comfortable. I can almost see him, nervously brushing his comb-over across his sweating pate in the glare of the stage lights…

So, was there new market research that told them this was, in fact, the high-growth market niche they wanted? Or did some desperate marketing executive tell the product development team they were losing their appeal to the academic market, and try to bridge both worlds without enough thought?

Lesson for your business – if you have two (or more) distinct market segments you are trying to serve, don’t confuse them. Don’t try to talk to one with the language or iconography of the other. Either come up with a single, coherent design and approach that speaks to both, or split your offerings and marketing materials so that your desired customers know for sure that you’re addressing them, and their needs.

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Looking at Angel Investors

by Tim Berry on August 11, 2009

I got an e-mail about this one overnight:

Return of the Angels: How Angel Investment is Changing

It’s a $40 evening affair in San Francisco, with a panel of three good speakers and a very interesting agenda. If I were in the San Francisco Bay area working on any kind of a startup, or even thinking about it, I’d probably attend.

Here’s the summary:

Angel investors are the new black. In a down market, with venture activity slowing, many entrepreneurs are looking to angels for salvation.
But they may be in for a rude awakening–angels are not exempt from economic pressures, and their outlook, strategies and requirements are changing.

If you’re not in the Bay area, it’s still a good reminder that things have changed. Angel investment is more organized than it was, and with the changing financial landscape . . . well, if nothing else, start doing Web searches for angel investors and see what comes up.

If you do that Web search, be careful with the paid or sponsored results. Here are a couple of tips:

  • Buying lists of investors is a bad idea. You need to target your investors carefully, not send out mass missives. Investors you can’t find by a combination of asking locally and searching the Web are not good targets. Here’s some background on that.
  • Buying ready-made business plans is another bad idea. You make your own plan; you don’t buy one from a consultant. If you have the budget to work with a consultant, check references first, and make sure that consultant helps you do your plan, rather than doing a plan for you. Here’s some background on that one.

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