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trunk

Recently, blogger Penelope Trunk announced that she is separating her blog from her brand (Brazen Careerist). My first thought was, “is that even possible?”

Her blog bills itself as “advice at the intersection of work and life,” and given her peculiar life and work, it actually works. Every post attempts to offer some useful career advice, while unavoidably incorporating some of Penelope’s own eccentricities (she even has a navigation section titled “My life disguised as career advice”).

It got me thinking, though. What happens when the personality IS the brand? Is it possible (or even desirable) to separate them? Are we talking about breaking up the Beatles, or more like breaking Sting free of The Police?

The Barefoot Contessa


There’s the case of Ina Garten, the Barefoot Contessa. When Garten bought an upscale food store in the late 1970s, she kept its brand, Barefoot Contessa, and fit her approach into it: simple and fun, earthy and elegant. Over the next 20 years, she built it into THE place to go for high-end take-out comfort food in the East Hamptons, with smoked salmon for $32 a pound, or, for the budget-minded, roasted potatoes for $11 per pound.

When Garten tired of the day-to-day running of the business, she sold it to the general manager and chef and moved upstairs (she retained ownership of the building) to figure out her next move.

That move turned out to be leveraging the Barefoot Contessa brand into cookbooks (and, eventually, a TV show).

It might seem counterintuitive (or even actionable) to sell a business with an existing brand, let it continue to operate under that brand, and yet continue to use that brand yourself for a separate business. But after all that time, Garten and the brand were synonymous. Quite aside from Ava Gardner, to many of her customers, she WAS The Barefoot Contessa. The store itself closed the year after the sale (possibly at Garten’s influence – she reportedly offered a different lease agreement unacceptable to the new owners). Whatever the behind-the-scenes maneuvers, The Barefoot Contessa has long outlived its original location, purpose, business, and owner, and is still going strong – as is Ina Garten.

Men With Pens

On another end of the spectrum is James Chartrand, freelance copywriter and founder of Men with Pens. For many customers, Men with Pens IS James Chartrand – his monthly advice on Copyblogger is as popular among writers as Dooce is with housewives.

The only problem is, James Chartrand is not a man.

One of the great benefits of virtual interactions, where copy is always digital and a “meeting” means an online chat, is that you can present yourself in any way you choose. As Chartrand explained in “Why James Chartrand Wears Women’s Underpants,” the ‘James Chartrand’ brand (the male pen name) simply did better than her own.

The male brand brought in more money, more respect, less hassle, and more jobs, for exactly the same work.

Despite this revelation, Men With Pens continues, with Chartrand at the helm. The brand has simply been reframed. Only time will tell whether letting her mask slip affects the power of the brand.

Experts and Owners

In our industry (business and marketing planning), we have a lot of experts who are essentially their own brand, from our own Tim Berry to Guy Kawasaki to John Jantsch. Offering advice as an expert, it’s almost unavoidable. Any independent accountant, any martial arts instructor, any small-business owner who has lots of personal contact with customers becomes the company brand. Or it becomes them, as with Garten. This is fine while the business is small, but what happens when you open another location? When you want to retire? When you want to change roles in the company?

Make sure you’re not letting your association with your brand get in the way of change or growth – either your growth, or that of your business.

-by Sara Prentice Manela
Editor
Palo Alto Software, Inc.

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Here’s a question I received in an e-mail (edited to hide the sender’s identity):

“The major question I have is how you found the courage to pull through when the times were tough? I know that is a very generic question. but it’s what I am going through right now . . . [omitting the author's personal information, a description of a tough business situation]. I guess I want to know, when you were at your lowest point and everything seemed to go against you, how did you find the will to keep going? What caused you to keep pushing yourself past your limits?”

The holeCourage is a flattering word. Saying we had no choice is more accurate. And not something I recommend for anybody.

I mistrust the “rah-rah” stories about entrepreneurship that make it about courage and pushing past limits. You should plan, reduce uncertainty, and go ahead with caution and awareness, not courage. And never bet what you can’t afford to lose.

Yes, there was a point in the history of Palo Alto Software at which my wife and I had three mortgages and $65,000 in credit card debt. Suffice to say that one thing worse than not getting your products into the retail channels is getting them into the channels, with all the associated costs, and then having them not sell.

Point No. 1: It wasn’t just me; it was my wife and me together.

Point No. 2: We did have a plan. I wouldn’t recommend doing what we did, because we bet more than we could have afforded to lose, which is dumb. We were painted into a corner, which is also dumb. But we did have a plan instead of just wild guessing. Dull and boring packaging had been identified as the problem, but instead of just repackaging the products we had, we decided to improve the product at the core. We did spend money we didn’t have on new packaging. More important, we contracted programmers for monthly minimums plus a percent of future revenue, to create a much better product. We didn’t just hope. We had reason to believe we could get through it by introducing a new product and getting that into the channels, with better packaging as well.

Ironically, the worst financial problems came after the product had taken off in channels. This is typical in small business–growth can cause cash-flow problems. We were really broke, but we had money owed to us that would eventually be paid.

Point No. 3: We had no choice. That’s not something we’re proud of. We had moved from Palo Alto, Calif., to Eugene, Ore. We’d been in our own business for more than 10 years. Entrepreneurs with 10 years’ or 15 years’ staying power aren’t considered great hires by many companies, and Eugene didn’t have a lot of jobs.

If our business plan hadn’t worked, we would have had to sell our house to pay the debts. We would have had to pull three children out of private colleges. We put that off, increasing the risk with borrowed money and, happily, the result was Business Plan Pro. It became No. 1 in its category within seven months of initial release.

This story is dangerous because it seems to imply that business is about persistence in the face of very high risk. In fact, in front of groups, when this comes up, I say, “Do as I say (better planning, to avoid ever having no better alternative), not as we did.” Take a good hard look at your business and your other alternatives and keep your options open. We survived, but don’t think courage and the will to keep going will ever substitute for a realistic business plan, sales, customers and capital. Used wrong, you can end up digging yourself deeper into a hole.

(Image: Mare Salerno/Shutterstock)

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Is your company in Oregon? Is it a startup or early-stage company looking for angel investment? Does it have the kind of team and growth prospects that can make money for investors?

If you answered yes to those three questions, please go to the Willamette Angel Conference (WAC) website and submit your company for WAC 2010, to be held in Eugene, Ore., in May.

Yes, it will cost your company $199 to submit a plan. (For the record, that money goes to affray the costs of the event; not a penny of it goes to the investors.) But how can it not be worth that to get your company in front of legitimate investors?

At the end of the May 13 event, the angel investor group will have chosen a company for an investment of more than $100,000.

Even if you don’t win, what’s it worth to get feedback from people who are ready to invest real money in real companies? These people will be reading your summaries, watching your online videos and, if you get to the semifinals (12 to 15 companies will), they’ll be reading your business plan, listening to you deliver your pitch, asking questions, making comments and giving your feedback.

Willamette Angel Conference

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What kind of commitment?

by sara on December 2, 2009

Presumably you, as a business owner, are devoting hours of work, lots of energy, and possibly a delayed or reduced salary to get your dream off the ground. This kind of commitment is assumed. The real test of your business mission (or better, your mantra) is the commitment of your customers and your employees.

What kind of business would you have if your employees cared so much about what you do that they were willing to do this?


Employees at Providence St. Vincent Medical Center in Portland, Oregon, dance in a video to promote breast cancer awareness.

What kind of business would you have if your customers cared so much about what you’re offering that they were willing to do this?



Apple customers start lining up outside the store one week before the release of Apple’s 3G.

Or this?

Star Wars fan dad creates an AT-AT stroller for his son.

Your business is only as successful as your employees and customers make it. Give them something to get inspired by and excited about.

by Sara Prentice Manela
Editor
Palo Alto Software, Inc.

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youngguns

“The Big Idea is what makes you get up and reinitiate the process of building your dream whenever you hit an obstacle.”—Robert Tuchman

Technology, these days it is something we cannot live, breathe, or function without. Right now is the best time to be an entrepreneur and tackle your next big idea and dive in head first, to take advantage of starting your own business. Fifty-years ago your contacts remained in your regional and even local area. Today the vast number of people you can reach, communicate with, and do business with is global.

So what is “The Big Idea?” When we hear this we think, well it is something that doesn’t exist anymore, all the big ideas have already been created, and we are programmed to think that we have to work for the “Big Man,” instead of harnessing that idea ourselves. The problem is there actually is an absence of big ideas in an entrepreneur’s world. Even if you have all the access to all of the tools you could possibly need to launch, build, and grow your business, that business will not succeed if you see impossible-to-solve problems everywhere you look. Let’s take for example, Kevin Greaney, the CEO of Children’s Progress, a company that helps teachers and school administrators evaluate how kids are doing in the classroom. He harnessed his idea and believed in the opportunities of his company:

“We were already very interested in student assessment and student achievement. I had managed several small businesses in the educational field. My partner Eugene Galanter and I each had some strong opinions about the players who were already out there, these big for-profit publishers who controlled most of the market. They were doing their version of assessment: these big standardized, bring-a-number-two-pencil, fill-in-the-bubble tests.  We knew that those kinds of tests had been developed in 1906, and they really hadn’t changed since then. We felt very strongly that those tests were just boring, that they didn’t really tap into the mind of a child being tested, and that they didn’t really tell the instructor much. We felt we could build a better tool because we were using principles that weren’t, you know, a century old. So we were pretty excited about student achievement, even before we formally started the business.”

Kevin Greaney’s Big Idea had to do with harnessing technology and using it to improve student achievement. My Big Idea mixed top businesses with top-tier sports and helping those companies enjoy the sporting events that I enjoy so much as well. The most important thing to remember about your Big Idea is to love it, in a way you want to be married to it. If you wake up every morning and the first thing you think about is music, check out the latest on new business ideas that connect with music. Research it, harness it, and make it your own. Always remember to add your niche to any idea that you have, stand out and be different. Love something and it will not fail, do not look at a closed door but rather finding a way to always keep it open, and the world is your oyster.

_________________________________

younggunsWhen Robert Tuchman started his first business, Tuchman Sports Enterprises (TSE), he did so with no money and no investors and ended up on the Inc. 500 list of America’s fastest growing privately held companies.

Now President of Premiere Global Sports, Robert continues to guide his company as well as writing the series “The Show Must Go On” for ESPN.com,  a monthly column for Entrepreneur.com called “Young, Fearless, and Fed Up” as well as a column called “On-Site” for Incentive Magazine, an industry trade publication for incentive and meeting planners. He is the author of The 100 Sporting Events You Must See Live, a sports travel book as well as Young Guns, The Fearless Entrepreneurs Guide To Chasing Your Dreams and Breaking Out on Your Own.

www.youngbusinessexecutives.com

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You may have noticed from other posts on this blog that I’m a fan of Pamela Slim, author of Escape From Cubicle Nation.  That’s a great book for people looking to migrate from a corporate job to their own business, and Pam is touring recently, giving a great workshop on the same subject. I was a guest speaker at her event in Portland a couple of months ago.

Escape from Cubicle Nation
by Pamela Slim Read more about this book…

So I may be biased, but I enjoyed her post You Aren’t Crazy, You’re Just an Entrepreneur on the American Express OPEN Forum. Borrowing from her mentor Martha Beck, Pam summarizes four stages of entrepreneurship:

  1. Death and Rebirth: when you leave your day job and get started. “I don’t know what’s going on, and that’s okay.”
  2. Dreaming and Scheming: you get comfortable, begin to brainstorm. “There are no rules, and that’s okay.”
  3. The Hero’s Saga:  whittling ideas down to the one that’s viable. “This is much worse than I expected, and that’s okay.”
  4. The Promised Land: you get through the growing pains and stabilize. “Everything is changing, and that’s okay.

Pam finishes that with this link to “an in-depth, multimedia overview of the change cycle that entrepreneurs go through.”

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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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Do what you love and the money will follow? That’s been true for me in my life. And within reason, at least, it might be for you, too. Watch the video. Let Guy Kawasaki explain. (And if you don’t see that here, then click here to go to the source.)

This three-minute reminder from Kawasaki is what we baby boomers would call “an oldie but goodie.”  I found it over the weekend on Stanford’s eCorner entrepreneurship video site–which is an excellent resource. It’s a collection of talks, broken conveniently into segments like this one. It’s from 1993 and, despite recession and a lot of changes, it’s holding up just fine to the ravages of time. It’s as valid today as it was then.

I do have that one reservation, however. I hope it’s obvious. If you take this idea too literally, and do what you love without any regard for what other people will pay for, then it doesn’t work. You need empathy and common sense. Love skiing? Teach it, make gear, do a store, build a website, do something related that people will pay for. Does that make sense?

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Very interesting piece on BusinessWeek.com today, “Is Entrepreneurship Declining.” John Tozzi gets two contrary points of view from two people I’m proud to know and admire: Scott Shane and Steve King. John picks up the right links:

Scott says yes and

Steve says no.

Both pieces are well-written and well-researched. William Blake said, in The Marriage of Heaven and Hell, “anything possible to be believed is an image of truth.” I’ve always liked that quote.

Tozzie concludes:

I can’t argue with the entrepreneurship numbers. But as one of Scott’s commenters points out, you get different trend lines depending on where you start counting. I think there could be an inflection point around the beginning of this decade that reflects growth of new types of ventures. Curious to hear more thoughts on this in comments or on Twitter.

What do you think?

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A friend asked me last week if I know an investor interested in the T-shirt business. I don’t know him well, I don’t know his business, but I’d like to help. So it occurs to me that there’s a predictable series of questions to ask to point a plan in the right direction.

1. Is your business plan investor-friendly?

To interest arms-length investors (meaning not friends and family but people who don’t know you and don’t believe in you already), a business plan has to have an experienced management team, a product and market focus that offers real growth potential (like at least 10X, but preferably 50X or 100X growth in three to five years), and a believable exit strategy. These days the only credible exit strategies are about being acquired by a larger company.

2. If no, you have two realistic choices.

If your business plan doesn’t have all of these qualities, stop here. None of the rest of this applies to you, so don’t waste your time. You have two options:

  • Focus on people who know you and believe in you to get friends and family investment
  • Scale down so you can bootstrap.

3. If yes, do your homework; find friendly investors

Never, ever use the shotgun approach–mass mailing, e-mails or postings–to find investors. That’s about as bad as taking out “spouse wanted” ads. Instead, use the internet. Look for the right kind of investors, preferably local, preferably interested in and knowledgeable about your type of business.

Never think of investors as money; they are partners. It’s a relationship like a marriage. An incompatible investor, like an incompatible spouse, is a shortcut to hell. One of the biggest fallacies in startups is the myth that getting the money is the goal–not if you have bad partners.

Refinement: Does your plan have VC potential?

Do you have a strong team, strong product, strong market, clear exit, defensible business and a good use for several million dollars? Do you have a good shot at generating a huge return on several million dollars in three to five years? Like 20 or 30 times the initial investment?

  • If and only if you can answer “yes” to every one of these questions are you looking for professional venture capital.
  • If not, then you’re looking for angel investment.

And either way, whether VC or angels, turn to the web to find investors who are either local, know and like your industry or, better yet, both.

The professional VC firms are relatively easy to find. Do an internet search. You can refine it to add geography (for example, search for “VC Atlanta” or “VC Texas“). You can also find free venture capital directories with searchable entries for geography, industry, deal size or stage preference, starting with the National Venture Capital Association at nvca.org, which has a good directory of other resources.

Another great site for a VC search is thefunded.com, a database of entrepreneur reviews of dealings with venture capitalists and angel investors. Membership is free for entrepreneurs.

(Hint: you probably don’t want to buy lists of venture capitalists, because most of this information is available free. Sometimes a hundred or so bucks can save you time, which might make it worth the expense; but unfortunately there are a lot of sharks in the listings-for-sale market. Be careful.)

Angel investors are harder to find but still findable. Do a web search for local angel groups, talk to your chamber of commerce, ask the nearest Small Business Development Center, ask at local business schools at nearby colleges and universities.

It’s still easier to get an investor’s attention if you first get an introduction from somebody he or she knows, no doubt; but even without that, if you do the research first and find investors with local or industry interest, the odds of getting a hearing increase dramatically.

And for angel investors, there’s also the Harold Lacy strategy of asking everybody you can think of who they know who might be interested. It takes the edge off asking directly for an investment and, if you know enough people, it can actually work.

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